Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 16, 2017 | Jun. 30, 2016 | |
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, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 33,770,632 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 2,332,871,000 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 380,907 | $ 34,396 |
Short-term investments | 41,841 | 48,975 |
Accounts receivable, net of allowance for doubtful accounts of $45 and $124 as of December 31, 2016 and December 31, 2015, respectively | 39,358 | 28,568 |
Prepaid expenses and other current assets | 15,209 | 9,874 |
Total current assets | 477,315 | 121,813 |
Property and equipment, net | 126,297 | 81,360 |
Long-term investments | 45,931 | 55,473 |
Intangible assets, net | 17,289 | 22,810 |
Deposits and other assets | 10,138 | 8,888 |
Goodwill | 74,547 | 74,547 |
Total assets | 751,517 | 364,891 |
Current liabilities: | ||
Accounts payable | 15,942 | 9,911 |
Accrued and other current liabilities | 39,809 | 37,307 |
Deferred revenue | 23,126 | 15,864 |
Total current liabilities | 78,877 | 63,082 |
Leases payable, net of current portion | 85 | 685 |
Other long-term liabilities | 17,647 | 10,273 |
Total liabilities | 96,609 | 74,040 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Common stock, $0.0001 par value per share; 140,000,000 authorized shares, 33,685,649 and 29,566,511 shares issued and outstanding as of December 31, 2016 and December 31, 2015, respectively | 3 | 3 |
Additional paid-in capital | 612,098 | 285,342 |
Accumulated other comprehensive loss | (219) | (257) |
Retained earnings | 43,026 | 5,763 |
Total stockholders’ equity | 654,908 | 290,851 |
Total liabilities and stockholders’ equity | $ 751,517 | $ 364,891 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances for doubtful accounts | $ 45 | $ 124 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares issued | 33,685,649 | 29,566,511 |
Common stock, shares outstanding | 33,685,649 | 29,566,511 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Revenues | $ 96,181,000 | $ 100,381,000 | $ 90,098,000 | $ 73,625,000 | $ 64,867,000 | $ 68,939,000 | $ 65,942,000 | $ 54,189,000 | $ 360,285,000 | $ 253,937,000 | $ 161,537,000 |
Cost of revenues | 32,843,000 | 32,218,000 | 28,453,000 | 26,631,000 | 23,555,000 | 22,441,000 | 20,862,000 | 17,350,000 | 120,145,000 | 84,208,000 | 46,283,000 |
Gross profit | 63,338,000 | 68,163,000 | 61,645,000 | 46,994,000 | 41,312,000 | 46,498,000 | 45,080,000 | 36,839,000 | 240,140,000 | 169,729,000 | 115,254,000 |
Operating expenses: | |||||||||||
Sales and marketing | 14,257,000 | 12,654,000 | 12,506,000 | 15,287,000 | 10,562,000 | 9,082,000 | 8,804,000 | 9,760,000 | 54,704,000 | 38,208,000 | 26,544,000 |
Research and development | 16,305,000 | 15,081,000 | 14,662,000 | 12,453,000 | 11,734,000 | 11,138,000 | 9,282,000 | 8,297,000 | 58,501,000 | 40,451,000 | 28,228,000 |
General and administrative | 18,434,000 | 19,360,000 | 17,793,000 | 15,731,000 | 14,103,000 | 16,658,000 | 14,149,000 | 12,302,000 | 71,318,000 | 57,212,000 | 39,361,000 |
Total operating expenses | 48,996,000 | 47,095,000 | 44,961,000 | 43,471,000 | 36,399,000 | 36,878,000 | 32,235,000 | 30,359,000 | 184,523,000 | 135,871,000 | 94,133,000 |
Income from operations | 14,342,000 | 21,068,000 | 16,684,000 | 3,523,000 | 4,913,000 | 9,620,000 | 12,845,000 | 6,480,000 | 55,617,000 | 33,858,000 | 21,121,000 |
Other income, net | 424,000 | 204,000 | 162,000 | 199,000 | 180,000 | 154,000 | 153,000 | 132,000 | 989,000 | 619,000 | 488,000 |
Income before income taxes | 14,766,000 | 21,272,000 | 16,846,000 | 3,722,000 | 5,093,000 | 9,774,000 | 12,998,000 | 6,612,000 | 56,606,000 | 34,477,000 | 21,609,000 |
Income tax provision | 3,864,000 | 7,492,000 | 6,258,000 | 1,216,000 | 271,000 | 3,552,000 | 5,368,000 | 3,028,000 | 18,830,000 | 12,219,000 | 6,786,000 |
Net income | $ 10,902,000 | $ 13,780,000 | $ 10,588,000 | $ 2,506,000 | $ 4,822,000 | $ 6,222,000 | $ 7,630,000 | $ 3,584,000 | $ 37,776,000 | $ 22,258,000 | $ 14,823,000 |
Net income per share of common stock: | |||||||||||
Basic (USD per share) | $ 0.33 | $ 0.43 | $ 0.36 | $ 0.09 | $ 0.16 | $ 0.21 | $ 0.26 | $ 0.12 | $ 1.21 | $ 0.76 | $ 0.53 |
Diluted (USD per share) | $ 0.31 | $ 0.41 | $ 0.34 | $ 0.08 | $ 0.16 | $ 0.20 | $ 0.25 | $ 0.12 | $ 1.15 | $ 0.72 | $ 0.50 |
Weighted average common shares used in computing net income per share of common stock: | |||||||||||
Basic (in shares) | 33,481,511 | 31,916,910 | 29,578,630 | 29,471,214 | 29,483,605 | 29,363,621 | 29,092,149 | 28,768,144 | 31,179,857 | 29,179,352 | 27,858,828 |
Diluted (in shares) | 35,010,867 | 33,482,533 | 31,188,599 | 31,080,314 | 30,959,344 | 31,005,651 | 30,807,418 | 30,442,163 | 32,799,785 | 30,842,584 | 29,593,873 |
Net income | $ 10,902,000 | $ 13,780,000 | $ 10,588,000 | $ 2,506,000 | $ 4,822,000 | $ 6,222,000 | $ 7,630,000 | $ 3,584,000 | $ 37,776,000 | $ 22,258,000 | $ 14,823,000 |
Unrealized gain (loss) on investments | (284,000) | (107,000) | 101,000 | 328,000 | (319,000) | 27,000 | (41,000) | 171,000 | 38,000 | (162,000) | (61,000) |
Comprehensive income | $ 10,618,000 | $ 13,673,000 | $ 10,689,000 | $ 2,834,000 | $ 4,503,000 | $ 6,249,000 | $ 7,589,000 | $ 3,755,000 | $ 37,814,000 | $ 22,096,000 | $ 14,762,000 |
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, 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 | $ 0 | 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 | |||
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 |
Issuance of common stock under stock incentive plans, shares | 934,234 | ||||
Issuance of common stock under stock incentive plans | $ 10,573,000 | 10,573,000 | |||
Stock Issued During Period, Shares, New Issues | 3,162,500 | ||||
Stock Issued During Period, Value, New Issues | $ 271,309,000 | ||||
Shares withheld for employee taxes related to vested restricted stock units, shares | (71,079) | ||||
Shares withheld for employee taxes related to vested restricted stock units | (5,976,000) | (5,976,000) | |||
Issuance of common stock under employee stock purchase plan, shares | 101,816 | ||||
Shares withheld for employee taxes related to vested restricted stock units | 6,724,000 | 6,724,000 | |||
Stock-based compensation expense | 34,302,000 | 34,302,000 | |||
Excess tax benefit from exercise of stock options | $ 9,974,000 | 9,974,000 | |||
Stock Repurchased During Period, Shares | (8,333) | (8,333) | |||
Stock Repurchased During Period, Value | $ (663,000) | (150,000) | (513,000) | ||
Unrealized gain (loss) on investments | 38,000 | 0 | 38,000 | ||
Net income | 37,776,000 | 37,776,000 | |||
Balances, shares at Dec. 31, 2016 | 33,685,649 | ||||
Balances at Dec. 31, 2016 | $ 654,908,000 | $ 3,000 | $ 612,098,000 | $ (219,000) | $ 43,026,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 37,776,000 | $ 22,258,000 | $ 14,823,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 20,460,000 | 10,842,000 | 5,605,000 |
Amortization of intangible assets | 5,521,000 | 5,180,000 | 2,779,000 |
Impairment loss on intangible assets | 0 | 562,000 | 1,968,000 |
Amortization of discount related to acquisition holdback | 0 | 0 | 36,000 |
Legal settlement | 0 | 522,000 | 0 |
Stock-based compensation expense | 31,471,000 | 24,241,000 | 14,548,000 |
Excess tax benefit from stock-based compensation | (10,246,000) | (11,387,000) | (5,852,000) |
Impairment and loss on sale of property and equipment | 5,000 | 97,000 | 693,000 |
Deferred income taxes | 7,784,000 | 2,255,000 | 395,000 |
Amortization of investment premium | 1,024,000 | 1,033,000 | 1,280,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (10,791,000) | (7,943,000) | (8,379,000) |
Prepaid expenses and other current assets | (5,334,000) | 1,381,000 | (4,867,000) |
Deposits and other assets | (3,464,000) | (1,985,000) | (1,146,000) |
Accounts payable | 3,678,000 | 290,000 | 2,675,000 |
Accrued, other current and other liabilities | 17,585,000 | 35,079,000 | 13,436,000 |
Deferred revenue | 7,184,000 | 5,849,000 | 2,604,000 |
Net cash provided by operating activities | 102,653,000 | 87,230,000 | 40,598,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of property and equipment | (25,191,000) | (24,768,000) | (6,813,000) |
Acquisition of internal-use software | (35,097,000) | (27,608,000) | (13,021,000) |
Proceeds from sale of property and equipment | 0 | 58,000 | 0 |
Purchases of investments | (62,533,000) | (60,816,000) | (64,748,000) |
Maturities of investments | 58,223,000 | 63,204,000 | 57,986,000 |
Sale of investments | 20,000,000 | 0 | 0 |
Cash paid for acquisitions, net of cash acquired | 0 | (16,419,000) | (34,641,000) |
Net cash used in investing activities | (44,598,000) | (66,349,000) | (61,237,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payment of capital lease obligations | (3,827,000) | (3,745,000) | (1,178,000) |
Proceeds from issuance of common stock under employee stock plans | 17,297,000 | 14,199,000 | 10,161,000 |
Proceeds from issuance of common stock in public offering, net of issuance costs | 271,379,000 | 0 | 0 |
Payments for repurchase of common stock | (663,000) | (31,530,000) | 0 |
Tax payments related to shares withheld for vested restricted stock units | (5,976,000) | (3,552,000) | (902,000) |
Excess tax benefit from stock-based compensation | 10,246,000 | 11,387,000 | 5,852,000 |
Net cash provided by (used in) financing activities | 288,456,000 | (13,241,000) | 13,933,000 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 346,511,000 | 7,640,000 | (6,706,000) |
CASH AND CASH EQUIVALENTS, Beginning of period | 34,396,000 | 26,756,000 | 33,462,000 |
CASH AND CASH EQUIVALENTS, End of period | 380,907,000 | 34,396,000 | 26,756,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 294,000 | 133,000 | 40,000 |
Cash paid for income taxes | 267,000 | 104,000 | 126,000 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Fixed asset purchases not yet paid | 5,945,000 | 3,662,000 | 921,000 |
Stock-based compensation capitalized to property and equipment | 2,831,000 | 1,126,000 | 534,000 |
Acquisition of property and equipment under capital leases | $ 0 | $ 6,998,000 | $ 1,269,000 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
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 . Banks, credit unions and mortgage lenders use the Company’s Encompass® all-in-one mortgage management solution 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, 2016 | |
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 the Company 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. Investments and Fair Value Measurement 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 sale 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 recourse 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, 2016, 2015, and 2014 . No customer represented more than 10% of accounts receivable as of December 31, 2016 and 2015 . 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, 2016 , 2015 and 2014 , the Company capitalized software and website application development costs of $38.5 million , $29.4 million , and $15.9 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, 2016 and 2015 . 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, 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 current period earnings. 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, 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, 2016 , 2015 , and 2014 . 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 test intangible assets with indefinite lives at least annually or if events or circumstances indicate that such assets might be impaired. If potential impairment exists, the amount of any impairment is calculated by using a discounted cash flow model, which is based on the assumptions the Company believe hypothetical marketplace participants would use. For indefinite-lived intangible assets, other than goodwill, if the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. 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, including its annual user conference and fees from professional services. On-demand revenue is generated from company-hosted software subscriptions that customers access through the Internet. On-demand revenue is comprised of fees for software services sold both as a subscription and transactionally, including fees based on a per closed loan, or success basis, subject to monthly base fees, which the Company refers to as Success Based Pricing; Ellie Mae Network fees; education and training, loan product, policy 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 Encompass software licenses, and related professional services. As of June 30, 2016, the Company completed the migration of customers to its on-demand Encompass offering, and the Company does not expect on-premise revenues in the future. 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: 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 Encompass offering and therefore are not accounted for separately. 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; product and pricing; flood zone certifications; website and electronic document management; and compliance reports. Services revenue is recognized upon completion of the services. Transactional and Other 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. Transactional revenue is recognized upon completion of the services. Professional Services Revenue. Professional services revenue is generally recognized upon delivery or completion of performance milestones 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. 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. 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. As of June 30, 2016, the Company completed the migration of customers to its on-demand Encompass offering, and the Company does not expect on-premise revenues in the future. Multiple Element Arrangements The Company enters into arrangements with multiple elements that generally include multiple subscriptions and professional services. 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 have standalone value as such services are often sold separately. Additionally, the Company concluded that professional services included in multiple element arrangements also 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. When subscription services 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. The Company has determined that TPE is not a practical alternative as the Company’s go-to-market strategy and 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. The amount of revenue allocated to delivered items is limited by contingent revenue, if any. The Company has not historically priced its services within a narrow range. As a result, the Company has not been able to establish VSOE for its services. Accordingly, the Company uses its BESP to determine the relative selling price for its services. 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. 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 us. 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 and training 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, 2016 and 2015 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 the Company’s 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. During the years ended December 31, 2016 , 2015 , and 2014 , the Company deferred $4.9 million , $3.6 million , and $2.5 million of commission expense, respectively. At December 31, 2016 and 2015 , $7.8 million and $5.3 million of deferred commission remained on the Company’s 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, 2016 or 2015 . 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, 2016 or 2015 . 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 and benefits, including stock-based compensation expense; data center operating costs; depreciation on data center computer equipment; amortization of internal-use software and acquired intangible assets such as developed technology and trade names; customer support; professional services associated with implementation of the Company’s software; third-party royalty expenses; and allocated facilities 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 The Company expenses advertising costs as incurred. Advertising expenses for the years ended December 31, 2016, 2015, and 2014 were $1.0 million , $0.7 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 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 evaluates the probability of performance attainment and estimates the probable number of shares of common stock that will be granted and records the expense accordingly, if probable. 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 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 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 . 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 consists of net income and other comprehensive income . Other comprehensive income includes certain changes in equity that are excluded from net income, specifically unrealized gains (losses) on marketable securities. Except for net realized gain (loss) on investments which was not significant, there were no reclassifications out of accumulated other comprehensive income that affected net income during the years ended December 31, 2016 , 2015 , and 2014 . 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, 2016, 2015, and 2014 . 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 effective date for public entities is for fiscal years beginning after December 15, 2017 and early adoption is allowed. The Company will adopt the new |
Net Income Per Share of Common
Net Income Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2016 | |
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, RSUs , performance-vesting RSUs, Performance Awards , and 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, 2016 2015 2014 (in thousands, except share and per share amounts) Net income $ 37,776 $ 22,258 $ 14,823 Basic shares: Weighted average common shares outstanding 31,179,857 29,179,352 27,858,828 Diluted shares: Weighted average shares used to compute basic net income per share 31,179,857 29,179,352 27,858,828 Effect of potentially dilutive securities: Employee stock options, RSUs, performance-vesting RSUs, Performance Awards and ESPP shares 1,619,928 1,663,232 1,735,045 Weighted average shares used to compute diluted net income per share 32,799,785 30,842,584 29,593,873 Net income per share: Basic $ 1.21 $ 0.76 $ 0.53 Diluted $ 1.15 $ 0.72 $ 0.50 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, 2016 2015 2014 Employee stock options and awards 48,374 225,122 624,277 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. Accordingly, in addition to the employee stock options and awards noted above, 20,304 shares underlying performance-vesting RSUs and Performance Awards were excluded from the dilutive shares outstanding for the year ended December 31, 2016 . No shares were excluded from the dilutive shares outstanding for the years ended December 31, 2015 or 2014 . |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
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: December 31, 2016 December 31, 2015 Level 1 Level 2 Total Level 1 Level 2 Total (in thousands) (in thousands) Cash equivalents: Money market funds $ 2,733 $ — $ 2,733 $ 6,788 $ — $ 6,788 U.S. government and government agency obligations 151,660 149,976 301,636 — — — Investments: Certificates of deposit — 12,088 12,088 — 12,928 12,928 Corporate notes and obligations — 28,892 28,892 — 28,205 28,205 Municipal obligations — 11,361 11,361 — 2,648 2,648 U.S. government and government agency obligations 4,579 30,852 35,431 19,429 41,238 60,667 $ 158,972 $ 233,169 $ 392,141 $ 26,217 $ 85,019 $ 111,236 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 . At December 31, 2016 and December 31, 2015 , the Company did not have any assets or liabilities that were valued using Level 3 inputs. For the years ended December 31, 2016, 2015, and 2014 , there were no transfers of financial instruments between the levels. For the years ended December 31, 2016, 2015, and 2014 , the Company recognized interest income from financial instruments of $1.1 million , $0.7 million , and $0.6 million , respectively. Gross realized gains and gross realized losses from the sale of investments were not significant during the years ended December 31, 2016, 2015, and 2014 . 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, 2016 December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Carrying or Fair Value Amortized Unrealized Gains Unrealized Losses Carrying or (in thousands) (in thousands) Cash and cash equivalents: Cash $ 76,538 $ — $ — $ 76,538 $ 27,608 $ — $ — $ 27,608 Money market funds 2,733 — — 2,733 6,788 — — 6,788 U.S. government and government agency obligations 301,631 8 (3 ) 301,636 — — — — $ 380,902 $ 8 $ (3 ) $ 380,907 $ 34,396 $ — $ — $ 34,396 Investments: Corporate notes and obligations $ 28,978 $ 1 $ (87 ) $ 28,892 $ 28,314 $ 1 $ (110 ) $ 28,205 Certificates of deposit 12,094 13 (19 ) 12,088 12,945 5 (22 ) 12,928 Municipal obligations 11,422 1 (62 ) 11,361 2,647 1 — 2,648 U.S. government and government agency obligations 35,502 8 (79 ) 35,431 60,799 10 (142 ) 60,667 $ 87,996 $ 23 $ (247 ) $ 87,772 $ 104,705 $ 17 $ (274 ) $ 104,448 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. The Company did not identify any investments as other-than-temporarily impaired at December 31, 2016 or December 31, 2015 . December 31, 2016 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 $ 26,076 $ (87 ) $ — $ — $ 26,076 $ (87 ) Certificates of deposit 5,651 (19 ) — — 5,651 (19 ) U.S. government, government agency, and municipal obligations 180,138 (144 ) 385 — 180,523 (144 ) $ 211,865 $ (250 ) $ 385 $ — $ 212,250 $ (250 ) 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 ) The following table summarizes the maturities of the Company’s investments at December 31, 2016 : Carrying or Fair Value (in thousands) 2017 $ 41,841 2018 30,615 2019 15,316 Total $ 87,772 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, 2016 | |
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. In October 2016, $0.8 million was paid to the seller, in accordance with the agreement. 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. 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. 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 was paid to the seller. 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. The following unaudited pro forma combined results of operations give effect to the acquisition of AllRegs as if it had occurred on January 1, 2014. 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 year ended December 31, 2014 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 (unaudited, in thousands, except per share amounts) Revenues $ 174,483 Net income $ 15,982 Net income per share: Basic $ 0.57 Diluted $ 0.54 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. 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 and were not significant. 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. 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. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2016 | |
Statement of Financial Position [Abstract] | |
Balance Sheet Components | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: December 31, 2016 2015 (in thousands) Prepaid expenses (1) $ 11,568 $ 6,704 Deferred commissions, current portion (1) 2,761 1,814 Other current assets (1) 880 1,356 $ 15,209 $ 9,874 ________________ (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. Property and Equipment Property and equipment, net, consisted of the following: December 31, 2016 2015 (in thousands) Computer equipment and software (1) $ 116,602 $ 55,928 Furniture and fixtures 6,838 5,292 Leasehold improvements 18,532 14,405 Property and equipment 141,972 75,625 Accumulated depreciation and amortization (1) (48,991 ) (28,552 ) Net property and equipment 92,981 47,073 Internal-use software and other assets not placed in service 33,316 34,287 $ 126,297 $ 81,360 ________________ (1) Includes computer equipment and software under capital leases Computer equipment and software under capital leases, net, consisted of the following: December 31, 2016 2015 (in thousands) Computer equipment $ 8,715 $ 8,715 Software 1,517 1,517 Accumulated amortization (6,522 ) (3,371 ) Net computer equipment and software under capital leases $ 3,710 $ 6,861 At December 31, 2016 and 2015 , the Company had unamortized internal-use software costs of $77.2 million and $47.0 million , respectively. Amortization of internal-use software for the years ended December 31, 2016 , 2015 , and 2014 was $8.3 million , $2.4 million , and $0.7 million , respectively. Depreciation expense for the years ended December 31, 2016, 2015, and 2014 was $20.5 million , $10.8 million , and $5.6 million , respectively. Amortization of assets under capital leases, which is included in depreciation expense, was $3.2 million , $2.5 million , and $0.7 million for the years ended December 31, 2016 , 2015 , and 2014 . 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 impairment loss for the years ended December 31, 2015 and 2016. Intangible Assets Intangible assets, net, consisted of the following: December 31, 2016 Gross carrying Accumulated Net intangibles Weighted Average Remaining Useful Life (in thousands) (in years) Assets subject to amortization: Developed technology $ 11,535 $ (8,183 ) $ 3,352 2.7 Trade names 331 (331 ) — 0.0 Customer relationships 19,400 (9,762 ) 9,638 4.0 Order backlog 370 (110 ) 260 2.8 Total assets subject to amortization 31,636 (18,386 ) 13,250 3.6 Assets not subject to amortization: Trade name 4,039 — 4,039 $ 35,675 $ (18,386 ) $ 17,289 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 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 discontinued the use of the acquired MortgageCEO technology and migrated substantially all of 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 $5.5 million , $5.2 million , and $2.8 million for the years ended December 31, 2016, 2015, and 2014 , respectively. Minimum future amortization expense for intangible assets at December 31, 2016 was as follows: (in thousands) 2017 $ 4,294 2018 3,443 2019 3,166 2020 1,778 2021 314 Thereafter 255 $ 13,250 Goodwill The Company completed its annual impairment tests during the fourth quarters of 2016 , 2015 , and 2014 and determined that goodwill was not impaired. There was no change to goodwill for the year ended December 31, 2016 . 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 Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following: December 31, 2016 2015 (in thousands) Accrued payroll and related expenses $ 31,848 $ 23,938 Accrued commissions 1,832 1,993 Accrued royalties 1,395 1,546 Sales and other taxes 2,327 1,536 Current portion of leases payable 619 3,845 Other accrued expenses (1) 1,788 4,449 $ 39,809 $ 37,307 ________________ (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. Deferred Revenue Deferred revenues consisted of the following: December 31, 2016 2015 (in thousands) Professional services and training 10,729 6,430 Subscriptions 8,419 9,225 Software maintenance $ — $ 386 Other 4,140 63 Total 23,288 16,104 Less portion included in other long-term liabilities (162 ) (240 ) $ 23,126 $ 15,864 Other Long-Term Liabilities Other long-term liabilities consisted of the following: December 31, 2016 2015 (in thousands) Deferred revenue $ 162 $ 240 Deferred rent 9,512 8,256 Deferred tax liability (1) 5,564 — Other long-term liabilities (1) 2,409 1,777 $ 17,647 $ 10,273 ________________ (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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the provision for income taxes were as follows: Year ended December 31, 2016 2015 2014 (in thousands) Current Federal $ 9,428 $ 8,070 $ 5,761 State 1,664 1,894 630 11,092 9,964 6,391 Deferred Federal 7,124 1,899 336 State 614 356 59 7,738 2,255 395 Income tax provision $ 18,830 $ 12,219 $ 6,786 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, 2016 2015 2014 Tax at federal statutory rate 35 % 35 % 35 % State taxes, net of federal benefit 4 5 3 Stock-based compensation 1 1 1 Tax credits (6 ) (7 ) (8 ) Other (1 ) 1 — Income tax provision 33 % 35 % 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 $10.0 million , $11.4 million , and $5.9 million for the years ended December 31, 2016 , 2015 , and 2014 . The components of net deferred tax assets (liabilities) were as follows: December 31, 2016 2015 (in thousands) Deferred tax assets Research and development credits $ 5,089 $ 3,901 Stock-based compensation 12,551 10,309 Reserves and accruals 11,896 8,779 Total deferred tax assets 29,536 22,989 Valuation allowance (5,089 ) (3,901 ) Total deferred tax assets, net of valuation allowance 24,447 19,088 Deferred tax liabilities Depreciation and amortization (28,749 ) (16,171 ) Book/tax basis in acquired assets (1,262 ) (697 ) Total deferred tax liabilities (30,011 ) (16,868 ) Net deferred tax assets (liabilities) $ (5,564 ) $ 2,220 At December 31, 2016 , the Company had recorded $5.6 million of net long-term deferred tax liabilities in other long-term liabilities on the consolidated balance sheet. 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. 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 $1.2 million , $1.0 million , $0.8 million in 2016 , 2015 and 2014 , respectively. As of December 31, 2016 , the Company had federal net operating loss (“ NOL ”) carryforwards of $15.0 million , available to reduce future taxable income and $7.2 million of state NOL carryforwards. These federal and state NOL carryforwards will begin to expire commencing 2035 and 2017, respectively. As of December 31, 2016 , the Company also had federal and state research and development tax credit carryforwards of $8.9 million and $6.2 million , respectively. If it were to be utilized, the related federal tax benefit of $8.9 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, 2016 , the Company had $4.6 million of cumulative unrecognized tax benefits. If the benefits were to be recognized, $2.4 million would affect the effective tax rate and $2.2 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, 2016 2015 2014 (in thousands) Beginning balance $ 3,440 $ 2,408 $ 1,806 Additions based on tax positions related to the current year 1,334 1,023 594 Additions (reductions) based on tax positions related to prior years including acquisitions (140 ) 9 8 Ending balance $ 4,634 $ 3,440 $ 2,408 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, 2016, 2015, and 2014 . The Company is currently under examination by the U.S. Internal Revenue Service for the 2013 tax year. At this time, the Company is not able to estimate the potential impact that the examination may have on income tax expense. If the examination is resolved unfavorably, it may have a negative impact on the Company’s results of operations. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases As of December 31, 2016 , the Company leased eight facilities under operating lease arrangements. The lease expiration dates range from August 2017 to December 2025. 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 $5.4 million , $4.2 million , and $2.1 million for the years ended December 31, 2016, 2015, and 2014 , respectively. Pursuant to the expiration of the Company’s Irvine office lease, in February 2016, the Company entered into a new lease agreement for approximately 4,600 square feet of office space in Irvine, California. The term of the lease commenced on June 1, 2016 with an initial term of 60 months, with payments ranging from $ 12,800 per month to $ 15,000 per month. In July 2016, the Company entered into an amendment to its existing office lease in Pleasanton, California to expand office space by four floors, approximately 143,500 square feet and extend the term of the lease of the existing premises by one year to December 31, 2025. The term of the lease for two of the four floors will commence on April 1, 2017 and for the remaining two floors, will commence on February 1, 2018. The term of the lease for the aggregate leased space ends on December 31, 2025 with payments ranging from approximately $ 201,600 per month to $ 527,300 per month during the lease period. Pursuant to the expiration of the Company’s Omaha office lease, in August 2016, the Company entered into a new lease agreement for approximately 20,100 square feet of office space in Omaha, Nebraska. The term of the lease commenced on February 28, 2017 with an initial term of 68 months, with payments ranging from $ 25,600 per month to $ 37,900 per month. Future minimum lease payments under non-cancelable operating and capital leases at December 31, 2016 consisted of the following: Capital Leases Operating Leases (in thousands) 2017 $ 633 $ 6,167 2018 87 10,122 2019 — 10,682 2020 — 10,839 2021 — 10,975 Thereafter — 45,483 Total minimum lease payments 720 $ 94,268 Less amount representing interest (16 ) Present value of minimum lease payments 704 Less current portion (619 ) Long-term portion of lease obligations $ 85 Purchase Commitments Commitments for the purchase of services, licenses of third-party software, and construction commitments totaled $11.4 million at December 31, 2016 and are to be paid as follows: $6.2 million in 2017 , $4.8 million in 2018 and $0.4 million in 2019 . 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 and employment disputes. As of the date of this Annual Report on Form 10-K, 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, 2016 | |
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. The following number of shares of common stock were reserved and available for future issuance at December 31, 2016 : Reserved Shares Options and awards granted and outstanding under stock incentive plans 3,318,097 Shares available for future grant under the stock incentive plans 3,828,349 Shares available under the employee stock purchase plan 1,398,843 Total 8,545,289 Stock Offering In August 2016 , the Company completed a public offering of common stock and sold a total of 3,162,500 shares of its common stock for total cash proceeds of approximately $271.4 million , net of underwriting discounts, and offering costs and expenses of approximately $13.2 million . Stock Repurchase Program In May 2014, the board of directors approved a repurchase program authorizing to repurchase up to $75.0 million of the Company’s common stock over a 36-month period. As of December 31, 2016 , $42.8 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 2016 8,333 $ 79.62 $ 663 Year Ended 2015 503,450 $ 62.63 $ 31,530 For the year ended 2014, there were no shares repurchased under the repurchase program. |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | NOTE 10 — Equity and Stock Incentive Plans The Company recognized stock-based compensation expense 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 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, 2016 , 987,657 shares of the Company’s common stock previously available for issuance under the 2009 Plan were available for issuance under the 2011 Plan. The majority of stock options issued under the plan have a maximum contractual term of ten years, the options generally vest over a four-year period. 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, 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 Granted 14,506 $ 59.78 Exercised (584,807 ) $ 18.08 Forfeited or expired (59,696 ) $ 37.94 Outstanding at December 31, 2016 1,885,332 $ 26.21 6.34 $ 108,356 Ending vested and expected to vest at December 31, 2016 1,865,630 $ 26.21 6.32 $ 107,565 Exercisable at December 31, 2016 1,401,407 $ 21.59 5.86 $ 87,007 The aggregate intrinsic value of the stock options outstanding at December 31, 2016 based on the Company’s closing stock price of $83.68 is presented above. 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. Options outstanding that are expected to vest are net of estimated future 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, 2016 2015 2014 (in thousands except for per option data) Weighted average fair value per option granted $ 27.57 $ 26.13 $ 14.43 Grant-date fair value of options vested $ 8,577 $ 8,285 $ 6,126 Intrinsic value of options exercised $ 39,040 $ 38,971 $ 26,277 Proceeds received from options exercised $ 10,573 $ 10,094 $ 7,537 As of December 31, 2016 , total unrecognized stock-based compensation expense related to unvested stock options, adjusted for estimated forfeitures, was $8.5 million and is expected to be recognized over a weighted average period of 1.72 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. Restricted shares vest in full after four years. The estimated fair value of restricted shares under the Company's stock plans is determined by the product of the number of shares granted and the grant date market price of the Company's common stock. The estimated fair value of restricted shares is expensed on a straight-line basis over the requisite service period. Performance Awards and performance-vesting RSUs are granted to certain executives under the 2011 Plan , which represent common stock potentially issuable in the future. Performance stock awards and units vest over a four -year period and the number of shares to be awarded is determined based on the achievement of specific performance goals. Based on the extent to which the targets are achieved at the end of the performance period, vested shares may range from 0 percent to 200 percent of the target award amount. The fair value of performance stock awards and units is determined by the grant date market price of the Company's common stock, and the compensation expense associated with nonvested performance stock awards and units is recognized over the requisite service period and is dependent on the Company's periodic assessment of the probability of the targets being achieved and its estimate of the number of shares that will ultimately be issued. During the fiscal years ended December 31, 2016, 2015 and 2014, the Company recognized $8.3 million , $7.4 million , and $4.5 million of compensation expense, respectively, related to these performance stock awards and units. In October 2015, in connection with the acquisition of Mortgage Returns, the Company agreed to grant up to 29,006 of performance-vesting RSUs for a total value of $2.0 million to the former Chief Executive Officer 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. In December 2016, a modification was made to a performance criteria of the award to align certain performance metrics to the Company’s targets. The modification resulted in an incremental value of approximately $0.2 million that will be recognized over the remaining requisite period; dependent on the Company’s periodic assessment of the probability of achievement. 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, 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 Granted 598,390 78.39 151,540 61.69 Released (240,386 ) 42.48 (239,120 ) 29.34 Forfeited or expired (81,577 ) 57.50 (13,052 ) 68.19 Outstanding at December 31, 2016 1,025,115 $ 64.47 407,650 $ 46.77 Ending vested and expected to vest at December 31, 2016 912,733 407,650 RSUs , performance-vesting RSUs and Performance Awards that are expected to vest are presented net of estimated future forfeitures. RSUs released during the years ended December 31, 2016 and 2015 had an aggregate intrinsic value of $20.1 million and $11.1 million , respectively, and an aggregate grant-date fair value of $10.2 million and $4.7 million , respectively. Performance-vesting RSUs and Performance Awards released during the years ended December 31, 2016 and 2015 had an aggregate intrinsic value of $21.8 million and $13.2 million , respectively, and an aggregate grant-date fair value of $7.0 million and $4.5 million , respectively. The number of RSUs released includes shares that the Company withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. As of December 31, 2016 , total unrecognized compensation expense related to unvested RSUs , performance-vesting RSUs and Performance Awards was $54.4 million and is expected to be recognized over a weighted average period of 2.4 years. Executive Incentive Plan On March 14, 2016, the Compensation Committee adopted the Ellie Mae, Inc. Executive Incentive Plan (the “Executive Incentive Plan”). The Executive Incentive Plan was approved by the Company’s stockholders on May 25, 2016. The Executive Incentive Plan has a term of five years from the date of approval by the stockholders, expiring May 25, 2021, and may be terminated, amended or suspended by the Compensation Committee at any prior time, and may also be reinstated. The Company currently expects to issue cash bonus and performance-based equity awards under the Executive Incentive Plan to the Company’s executive officers commencing in 2017. Shares underlying equity awards from the Executive Incentive Plan will be issued from the Company’s 2011 Plan. The equity awards have the following limitations: Stock Option Limitations. The maximum number of shares that may be granted as an incentive stock option under the Executive Incentive Plan is 70,000,000 . No participant will be eligible to receive a stock option covering more than 1,000,000 shares in any calendar year. Performance Units/Performance Share Limitations. No participant will be eligible to receive performance units or performance shares having a grant date value (assuming maximum payout) greater than $10,000,000 or covering more than 1,000,000 shares, whichever is greater, in any calendar year. There have been no shares issued under this plan as of December 31, 2016. 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 weighted-average grant-date fair value of awards issued pursuant to the ESPP during the years ended December 31, 2016 , 2015 , and 2014 were $24.11 , $16.12 , and $8.38 per share, respectively. For the years ended December 31, 2016 , 2015 and 2014 , employees purchased 101,816 , 110,598 , and 102,111 shares under the ESPP for a total of $6.7 million , $4.1 million , and $2.6 million , respectively. As of December 31, 2016 , unrecognized compensation cost related to the current ESPP period which ends on February 27, 2017 was approximately $0.4 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, 2016 2015 2014 (in thousands) Stock-based compensation by category of expense: Cost of revenues $ 4,835 $ 3,218 $ 1,579 Sales and marketing 4,429 2,752 1,562 Research and development 7,296 5,431 3,672 General and administrative 14,911 12,840 7,735 $ 31,471 $ 24,241 $ 14,548 The Company capitalized $2.8 million , $1.1 million , and $0.5 million of stock compensation costs as software and website application development costs for the years ended December 31, 2016 , 2015 , and 2014 , 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, 2016 2015 2014 Stock option plans: Risk-free interest rate 1.38 % 1.50-1.96 % 1.55-2.02 % Expected life of options (in years) 6.08 5.00-6.08 5.27-6.08 Expected dividend yield — % — % — % Volatility 47 % % 48-49 % 49-53 % Employee Stock Purchase Plan: Risk-free interest rate 0.46-0.48 % 0.13-0.24 % 0.05-0.08 % Expected life of options (in years) 0.5 0.5 0.5 Expected dividend yield — % — % — % Volatility 33-49 % 35-44 % 38-39 % 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, 2016, 2015, and 2014 , 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, 2016, 2015, and 2014 were $2.8 million , $2.0 million , and $1.3 million , respectively, which were recognized as expense in the consolidated statements of comprehensive income. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 12 — Segment Information The Company operates in one industry—mortgage-related software and services. The Company’s chief operating decision maker is its chief executive officer, who makes decisions about resource allocation and 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 residential 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, 2016 2015 2014 (in thousands) On-demand revenues (1) $ 359,567 $ 249,871 $ 154,315 On-premise revenues (1) 718 4,066 7,222 $ 360,285 $ 253,937 $ 161,537 ________________ (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. |
Quarterly Results of Operations
Quarterly Results of Operations Data | 12 Months Ended |
Dec. 31, 2016 | |
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 $ 96,181 $ 100,381 $ 90,098 $ 73,625 $ 64,867 $ 68,939 $ 65,942 $ 54,189 Cost of revenues (1) 32,843 32,218 28,453 26,631 23,555 22,441 20,862 17,350 Gross profit 63,338 68,163 61,645 46,994 41,312 46,498 45,080 36,839 Operating expenses Sales and marketing (1) 14,257 12,654 12,506 15,287 10,562 9,082 8,804 9,760 Research and development (1) 16,305 15,081 14,662 12,453 11,734 11,138 9,282 8,297 General and administrative (1) 18,434 19,360 17,793 15,731 14,103 16,658 14,149 12,302 Total operating expenses 48,996 47,095 44,961 43,471 36,399 36,878 32,235 30,359 Income from operations 14,342 21,068 16,684 3,523 4,913 9,620 12,845 6,480 Other income, net 424 204 162 199 180 154 153 132 Income before income taxes 14,766 21,272 16,846 3,722 5,093 9,774 12,998 6,612 Income tax provision (benefit) 3,864 7,492 6,258 1,216 271 3,552 5,368 3,028 Net income $ 10,902 $ 13,780 $ 10,588 $ 2,506 $ 4,822 $ 6,222 $ 7,630 $ 3,584 Net income per share Basic $ 0.33 $ 0.43 $ 0.36 $ 0.09 $ 0.16 $ 0.21 $ 0.26 $ 0.12 Diluted $ 0.31 $ 0.41 $ 0.34 $ 0.08 $ 0.16 $ 0.20 $ 0.25 $ 0.12 Weighted average common shares used in computing net income per share of common stock: Basic 33,482 31,917 29,579 29,471 29,484 29,364 29,092 28,768 Diluted 35,011 33,483 31,189 31,080 30,959 31,006 30,807 30,442 Net income $ 10,902 $ 13,780 $ 10,588 $ 2,506 $ 4,822 $ 6,222 $ 7,630 $ 3,584 Other comprehensive income, net of taxes Unrealized gain (loss) on investments (284 ) (107 ) 101 328 (319 ) 27 (41 ) 171 Comprehensive income $ 10,618 $ 13,673 $ 10,689 $ 2,834 $ 4,503 $ 6,249 $ 7,589 $ 3,755 (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 $ 1,352 $ 1,381 $ 1,132 $ 970 $ 1,029 $ 761 $ 813 $ 615 Sales and marketing 1,249 1,243 1,059 878 779 783 673 517 Research and development 1,879 1,969 1,944 1,504 1,470 1,438 1,376 1,147 General and administrative 3,535 4,155 3,883 3,338 3,359 3,538 3,215 2,728 Total $ 8,015 $ 8,748 $ 8,018 $ 6,690 $ 6,637 $ 6,520 $ 6,077 $ 5,007 |
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, 2016 , 2015 and 2014 (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, 2016 $ 124 $ 121 $ (200 ) (a) $ 45 Year ended December 31, 2015 $ 66 $ 62 $ (4 ) (a) $ 124 Year ended December 31, 2014 $ 81 $ (1 ) $ (14 ) (a) $ 66 Income Tax Valuation Allowance Year ended December 31, 2016 $ 3,901 $ — $ 1,188 (b) $ 5,089 Year ended December 31, 2015 $ 2,897 $ — $ 1,004 (b) $ 3,901 Year ended December 31, 2014 $ 2,056 $ — $ 841 (b) $ 2,897 (a) Accounts written off, net of recoveries. (b) Adjustments to offset changes in deferred tax assets. |
Basis of Presentation and Sig21
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company 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 | Investments and Fair Value Measurement 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 sale 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 recourse 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, 2016, 2015, and 2014 . No customer represented more than 10% of accounts receivable as of December 31, 2016 and 2015 . |
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, 2016 , 2015 and 2014 , the Company capitalized software and website application development costs of $38.5 million , $29.4 million , and $15.9 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, 2016 and 2015 . |
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, 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 current period earnings. |
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, 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, 2016 , 2015 , and 2014 . 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 test intangible assets with indefinite lives at least annually or if events or circumstances indicate that such assets might be impaired. If potential impairment exists, the amount of any impairment is calculated by using a discounted cash flow model, which is based on the assumptions the Company believe hypothetical marketplace participants would use. For indefinite-lived intangible assets, other than goodwill, if the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. 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, including its annual user conference and fees from professional services. On-demand revenue is generated from company-hosted software subscriptions that customers access through the Internet. On-demand revenue is comprised of fees for software services sold both as a subscription and transactionally, including fees based on a per closed loan, or success basis, subject to monthly base fees, which the Company refers to as Success Based Pricing; Ellie Mae Network fees; education and training, loan product, policy 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 Encompass software licenses, and related professional services. As of June 30, 2016, the Company completed the migration of customers to its on-demand Encompass offering, and the Company does not expect on-premise revenues in the future. 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: 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 Encompass offering and therefore are not accounted for separately. 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; product and pricing; flood zone certifications; website and electronic document management; and compliance reports. Services revenue is recognized upon completion of the services. Transactional and Other 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. Transactional revenue is recognized upon completion of the services. Professional Services Revenue. Professional services revenue is generally recognized upon delivery or completion of performance milestones 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. 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. 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. As of June 30, 2016, the Company completed the migration of customers to its on-demand Encompass offering, and the Company does not expect on-premise revenues in the future. Multiple Element Arrangements The Company enters into arrangements with multiple elements that generally include multiple subscriptions and professional services. 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 have standalone value as such services are often sold separately. Additionally, the Company concluded that professional services included in multiple element arrangements also 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. When subscription services 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. The Company has determined that TPE is not a practical alternative as the Company’s go-to-market strategy and 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. The amount of revenue allocated to delivered items is limited by contingent revenue, if any. The Company has not historically priced its services within a narrow range. As a result, the Company has not been able to establish VSOE for its services. Accordingly, the Company uses its BESP to determine the relative selling price for its services. 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. 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 us. 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 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 and training 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, 2016 and 2015 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 the Company’s 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. During the years ended December 31, 2016 , 2015 , and 2014 , the Company deferred $4.9 million , $3.6 million , and $2.5 million of commission expense, respectively. At December 31, 2016 and 2015 , $7.8 million and $5.3 million of deferred commission remained on the Company’s 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, 2016 or 2015 . 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, 2016 or 2015 . 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 and benefits, including stock-based compensation expense; data center operating costs; depreciation on data center computer equipment; amortization of internal-use software and acquired intangible assets such as developed technology and trade names; customer support; professional services associated with implementation of the Company’s software; third-party royalty expenses; and allocated facilities costs. |
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. Advertising expenses for the years ended December 31, 2016, 2015, and 2014 were $1.0 million , $0.7 million , and $0.4 million , respectively. |
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 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 evaluates the probability of performance attainment and estimates the probable number of shares of common stock that will be granted and records the expense accordingly, if probable. 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 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 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 . |
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 . Other comprehensive income includes certain changes in equity that are excluded from net income, specifically unrealized gains (losses) on marketable securities. Except for net realized gain (loss) on investments which was not significant, there were no reclassifications out of accumulated other comprehensive income that affected net income during the years ended December 31, 2016 , 2015 , and 2014 . |
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, 2016, 2015, and 2014 . |
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 effective date for public entities is for fiscal years beginning after December 15, 2017 and early adoption is allowed. The Company will adopt the new standard as of January 1, 2018. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company is evaluating the impact of the new standard on its accounting policies, processes, and systems including impacts from guidance issued by the FASB Transition Resource Group as part of their November 2016 meeting. The Company has assigned internal resources, engaged a third party service provider, and has a preliminary project plan to finalize the evaluation and complete the implementation. The Company has preliminarily identified potential impacts to the timing of revenue recognition and the amortization period of costs to obtain contracts. The Company’s decision on the adoption method will be based on various factors including the significance of the impact of the new standard on the Company’s financial results and system capabilities. The Company has not yet completed the evaluation of these impacts and the adoption method has not been determined. 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. On January 1, 2016, the Company adopted ASU 2015-05 on a prospective basis. The adoption did not impact the Company’s consolidated financial statements. 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 updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating the impact of this accounting standard updated on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The standard is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The Company currently does not intend to early adopt and is evaluating the impact of this accounting standard update on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting (“ASU 2016-09”), which simplifies and makes several modifications to Topic 718 related to the accounting of share-based payment transactions. The standard requires companies to record excess tax benefits and tax deficiencies as income tax benefit or expense in the income statement when stock awards vest or are settled. This change is required to be applied prospectively. The standard also allows the employer tax withholding on share-based compensation to increase (up to the employee’s maximum statutory rates) without triggering liability accounting and provides an accounting policy election to allow the recognition of forfeitures when they are incurred. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption is permitted. The Company will adopt the standard as of January 1, 2017. The Company has elected to continue estimating forfeitures, and is expected to record previously unrecognized tax benefits to retained earnings upon adoption. The Company will adopt the above on a modified retrospective basis. The standard also eliminates the requirement to separately classify excess tax benefits as a financing activity in the statement of cash flows and the Company will adopt on a retrospective basis. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). This standard clarifies the definition of a business and is intended to help companies evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted under certain circumstances. The standard should be applied prospectively as of the beginning of the period of adoption. The Company currently does not intend to early adopt and is evaluating the impact of this accounting standard update on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The standard eliminates Step 2 from the goodwill impairment test, which requires a hypothetical purchase price allocation. The Company will continue to have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The standard is effective for interim and annual periods beginning after December 15, 2019 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The standard should be applied on a prospective basis. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. |
Basis of Presentation and Sig22
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 |
Net Income Per Share of Commo23
Net Income Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 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, RSUs , performance-vesting RSUs, Performance Awards , and 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, 2016 2015 2014 (in thousands, except share and per share amounts) Net income $ 37,776 $ 22,258 $ 14,823 Basic shares: Weighted average common shares outstanding 31,179,857 29,179,352 27,858,828 Diluted shares: Weighted average shares used to compute basic net income per share 31,179,857 29,179,352 27,858,828 Effect of potentially dilutive securities: Employee stock options, RSUs, performance-vesting RSUs, Performance Awards and ESPP shares 1,619,928 1,663,232 1,735,045 Weighted average shares used to compute diluted net income per share 32,799,785 30,842,584 29,593,873 Net income per share: Basic $ 1.21 $ 0.76 $ 0.53 Diluted $ 1.15 $ 0.72 $ 0.50 |
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, 2016 2015 2014 Employee stock options and awards 48,374 225,122 624,277 |
Financial Instruments and Fai24
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: December 31, 2016 December 31, 2015 Level 1 Level 2 Total Level 1 Level 2 Total (in thousands) (in thousands) Cash equivalents: Money market funds $ 2,733 $ — $ 2,733 $ 6,788 $ — $ 6,788 U.S. government and government agency obligations 151,660 149,976 301,636 — — — Investments: Certificates of deposit — 12,088 12,088 — 12,928 12,928 Corporate notes and obligations — 28,892 28,892 — 28,205 28,205 Municipal obligations — 11,361 11,361 — 2,648 2,648 U.S. government and government agency obligations 4,579 30,852 35,431 19,429 41,238 60,667 $ 158,972 $ 233,169 $ 392,141 $ 26,217 $ 85,019 $ 111,236 |
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, 2016 December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Carrying or Fair Value Amortized Unrealized Gains Unrealized Losses Carrying or (in thousands) (in thousands) Cash and cash equivalents: Cash $ 76,538 $ — $ — $ 76,538 $ 27,608 $ — $ — $ 27,608 Money market funds 2,733 — — 2,733 6,788 — — 6,788 U.S. government and government agency obligations 301,631 8 (3 ) 301,636 — — — — $ 380,902 $ 8 $ (3 ) $ 380,907 $ 34,396 $ — $ — $ 34,396 Investments: Corporate notes and obligations $ 28,978 $ 1 $ (87 ) $ 28,892 $ 28,314 $ 1 $ (110 ) $ 28,205 Certificates of deposit 12,094 13 (19 ) 12,088 12,945 5 (22 ) 12,928 Municipal obligations 11,422 1 (62 ) 11,361 2,647 1 — 2,648 U.S. government and government agency obligations 35,502 8 (79 ) 35,431 60,799 10 (142 ) 60,667 $ 87,996 $ 23 $ (247 ) $ 87,772 $ 104,705 $ 17 $ (274 ) $ 104,448 |
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. The Company did not identify any investments as other-than-temporarily impaired at December 31, 2016 or December 31, 2015 . December 31, 2016 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 $ 26,076 $ (87 ) $ — $ — $ 26,076 $ (87 ) Certificates of deposit 5,651 (19 ) — — 5,651 (19 ) U.S. government, government agency, and municipal obligations 180,138 (144 ) 385 — 180,523 (144 ) $ 211,865 $ (250 ) $ 385 $ — $ 212,250 $ (250 ) 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 ) |
Summary of the maturities of the Company's investments | The following table summarizes the maturities of the Company’s investments at December 31, 2016 : Carrying or Fair Value (in thousands) 2017 $ 41,841 2018 30,615 2019 15,316 Total $ 87,772 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information [Table Text Block] | Year ended December 31, 2014 (unaudited, in thousands, except per share amounts) Revenues $ 174,483 Net income $ 15,982 Net income per share: Basic $ 0.57 Diluted $ 0.54 |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | 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 |
Intangible Assets Acquired as Part of Business Combination | . |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Statement of Financial Position [Abstract] | |
Prepaid Expenses and Other Assets | Prepaid expenses and other current assets consisted of the following: December 31, 2016 2015 (in thousands) Prepaid expenses (1) $ 11,568 $ 6,704 Deferred commissions, current portion (1) 2,761 1,814 Other current assets (1) 880 1,356 $ 15,209 $ 9,874 |
Property and Equipment | Property and equipment, net, consisted of the following: December 31, 2016 2015 (in thousands) Computer equipment and software (1) $ 116,602 $ 55,928 Furniture and fixtures 6,838 5,292 Leasehold improvements 18,532 14,405 Property and equipment 141,972 75,625 Accumulated depreciation and amortization (1) (48,991 ) (28,552 ) Net property and equipment 92,981 47,073 Internal-use software and other assets not placed in service 33,316 34,287 $ 126,297 $ 81,360 |
Other Intangible Assets | Intangible assets, net, consisted of the following: December 31, 2016 Gross carrying Accumulated Net intangibles Weighted Average Remaining Useful Life (in thousands) (in years) Assets subject to amortization: Developed technology $ 11,535 $ (8,183 ) $ 3,352 2.7 Trade names 331 (331 ) — 0.0 Customer relationships 19,400 (9,762 ) 9,638 4.0 Order backlog 370 (110 ) 260 2.8 Total assets subject to amortization 31,636 (18,386 ) 13,250 3.6 Assets not subject to amortization: Trade name 4,039 — 4,039 $ 35,675 $ (18,386 ) $ 17,289 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 |
Minimum future amortization expense for intangible assets | Minimum future amortization expense for intangible assets at December 31, 2016 was as follows: (in thousands) 2017 $ 4,294 2018 3,443 2019 3,166 2020 1,778 2021 314 Thereafter 255 $ 13,250 |
Accrued and Other Current Liabilities | Accrued and other current liabilities consisted of the following: December 31, 2016 2015 (in thousands) Accrued payroll and related expenses $ 31,848 $ 23,938 Accrued commissions 1,832 1,993 Accrued royalties 1,395 1,546 Sales and other taxes 2,327 1,536 Current portion of leases payable 619 3,845 Other accrued expenses (1) 1,788 4,449 $ 39,809 $ 37,307 |
Deferred Revenue | Deferred revenues consisted of the following: December 31, 2016 2015 (in thousands) Professional services and training 10,729 6,430 Subscriptions 8,419 9,225 Software maintenance $ — $ 386 Other 4,140 63 Total 23,288 16,104 Less portion included in other long-term liabilities (162 ) (240 ) $ 23,126 $ 15,864 Other Long-Term Liabilities Other long-term liabilities consisted of the following: December 31, 2016 2015 (in thousands) Deferred revenue $ 162 $ 240 Deferred rent 9,512 8,256 Deferred tax liability (1) 5,564 — Other long-term liabilities (1) 2,409 1,777 $ 17,647 $ 10,273 ________________ (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. |
Schedule of Goodwill [Table Text Block] | The Company completed its annual impairment tests during the fourth quarters of 2016 , 2015 , and 2014 and determined that goodwill was not impaired. There was no change to goodwill for the year ended December 31, 2016 . 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 (in thousands) Current Federal $ 9,428 $ 8,070 $ 5,761 State 1,664 1,894 630 11,092 9,964 6,391 Deferred Federal 7,124 1,899 336 State 614 356 59 7,738 2,255 395 Income tax provision $ 18,830 $ 12,219 $ 6,786 |
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, 2016 2015 2014 Tax at federal statutory rate 35 % 35 % 35 % State taxes, net of federal benefit 4 5 3 Stock-based compensation 1 1 1 Tax credits (6 ) (7 ) (8 ) Other (1 ) 1 — Income tax provision 33 % 35 % 31 % |
Schedule of Deferred Tax Assets and Liabilities | The components of net deferred tax assets (liabilities) were as follows: December 31, 2016 2015 (in thousands) Deferred tax assets Research and development credits $ 5,089 $ 3,901 Stock-based compensation 12,551 10,309 Reserves and accruals 11,896 8,779 Total deferred tax assets 29,536 22,989 Valuation allowance (5,089 ) (3,901 ) Total deferred tax assets, net of valuation allowance 24,447 19,088 Deferred tax liabilities Depreciation and amortization (28,749 ) (16,171 ) Book/tax basis in acquired assets (1,262 ) (697 ) Total deferred tax liabilities (30,011 ) (16,868 ) Net deferred tax assets (liabilities) $ (5,564 ) $ 2,220 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: Year ended December 31, 2016 2015 2014 (in thousands) Beginning balance $ 3,440 $ 2,408 $ 1,806 Additions based on tax positions related to the current year 1,334 1,023 594 Additions (reductions) based on tax positions related to prior years including acquisitions (140 ) 9 8 Ending balance $ 4,634 $ 3,440 $ 2,408 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 consisted of the following: Capital Leases Operating Leases (in thousands) 2017 $ 633 $ 6,167 2018 87 10,122 2019 — 10,682 2020 — 10,839 2021 — 10,975 Thereafter — 45,483 Total minimum lease payments 720 $ 94,268 Less amount representing interest (16 ) Present value of minimum lease payments 704 Less current portion (619 ) Long-term portion of lease obligations $ 85 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of shares of common stock reserved and available for future issuance | The following number of shares of common stock were reserved and available for future issuance at December 31, 2016 : Reserved Shares Options and awards granted and outstanding under stock incentive plans 3,318,097 Shares available for future grant under the stock incentive plans 3,828,349 Shares available under the employee stock purchase plan 1,398,843 Total 8,545,289 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 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 Granted 14,506 $ 59.78 Exercised (584,807 ) $ 18.08 Forfeited or expired (59,696 ) $ 37.94 Outstanding at December 31, 2016 1,885,332 $ 26.21 6.34 $ 108,356 Ending vested and expected to vest at December 31, 2016 1,865,630 $ 26.21 6.32 $ 107,565 Exercisable at December 31, 2016 1,401,407 $ 21.59 5.86 $ 87,007 |
Stock options activity, additional information | Following is additional information pertaining to the Company’s stock option activity: Year ended December 31, 2016 2015 2014 (in thousands except for per option data) Weighted average fair value per option granted $ 27.57 $ 26.13 $ 14.43 Grant-date fair value of options vested $ 8,577 $ 8,285 $ 6,126 Intrinsic value of options exercised $ 39,040 $ 38,971 $ 26,277 Proceeds received from options exercised $ 10,573 $ 10,094 $ 7,537 |
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, 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 Granted 598,390 78.39 151,540 61.69 Released (240,386 ) 42.48 (239,120 ) 29.34 Forfeited or expired (81,577 ) 57.50 (13,052 ) 68.19 Outstanding at December 31, 2016 1,025,115 $ 64.47 407,650 $ 46.77 Ending vested and expected to vest at December 31, 2016 912,733 407,650 |
Stock-based compensation expense | Total stock-based compensation expense recognized by the Company consisted of: Year ended December 31, 2016 2015 2014 (in thousands) Stock-based compensation by category of expense: Cost of revenues $ 4,835 $ 3,218 $ 1,579 Sales and marketing 4,429 2,752 1,562 Research and development 7,296 5,431 3,672 General and administrative 14,911 12,840 7,735 $ 31,471 $ 24,241 $ 14,548 |
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, 2016 2015 2014 Stock option plans: Risk-free interest rate 1.38 % 1.50-1.96 % 1.55-2.02 % Expected life of options (in years) 6.08 5.00-6.08 5.27-6.08 Expected dividend yield — % — % — % Volatility 47 % % 48-49 % 49-53 % Employee Stock Purchase Plan: Risk-free interest rate 0.46-0.48 % 0.13-0.24 % 0.05-0.08 % Expected life of options (in years) 0.5 0.5 0.5 Expected dividend yield — % — % — % Volatility 33-49 % 35-44 % 38-39 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Supplemental disclosure of revenue by service type | Supplemental disclosure of revenues by type is as follows: Year ended December 31, 2016 2015 2014 (in thousands) On-demand revenues (1) $ 359,567 $ 249,871 $ 154,315 On-premise revenues (1) 718 4,066 7,222 $ 360,285 $ 253,937 $ 161,537 |
Quarterly Results of Operatio32
Quarterly Results of Operations Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 $ 96,181 $ 100,381 $ 90,098 $ 73,625 $ 64,867 $ 68,939 $ 65,942 $ 54,189 Cost of revenues (1) 32,843 32,218 28,453 26,631 23,555 22,441 20,862 17,350 Gross profit 63,338 68,163 61,645 46,994 41,312 46,498 45,080 36,839 Operating expenses Sales and marketing (1) 14,257 12,654 12,506 15,287 10,562 9,082 8,804 9,760 Research and development (1) 16,305 15,081 14,662 12,453 11,734 11,138 9,282 8,297 General and administrative (1) 18,434 19,360 17,793 15,731 14,103 16,658 14,149 12,302 Total operating expenses 48,996 47,095 44,961 43,471 36,399 36,878 32,235 30,359 Income from operations 14,342 21,068 16,684 3,523 4,913 9,620 12,845 6,480 Other income, net 424 204 162 199 180 154 153 132 Income before income taxes 14,766 21,272 16,846 3,722 5,093 9,774 12,998 6,612 Income tax provision (benefit) 3,864 7,492 6,258 1,216 271 3,552 5,368 3,028 Net income $ 10,902 $ 13,780 $ 10,588 $ 2,506 $ 4,822 $ 6,222 $ 7,630 $ 3,584 Net income per share Basic $ 0.33 $ 0.43 $ 0.36 $ 0.09 $ 0.16 $ 0.21 $ 0.26 $ 0.12 Diluted $ 0.31 $ 0.41 $ 0.34 $ 0.08 $ 0.16 $ 0.20 $ 0.25 $ 0.12 Weighted average common shares used in computing net income per share of common stock: Basic 33,482 31,917 29,579 29,471 29,484 29,364 29,092 28,768 Diluted 35,011 33,483 31,189 31,080 30,959 31,006 30,807 30,442 Net income $ 10,902 $ 13,780 $ 10,588 $ 2,506 $ 4,822 $ 6,222 $ 7,630 $ 3,584 Other comprehensive income, net of taxes Unrealized gain (loss) on investments (284 ) (107 ) 101 328 (319 ) 27 (41 ) 171 Comprehensive income $ 10,618 $ 13,673 $ 10,689 $ 2,834 $ 4,503 $ 6,249 $ 7,589 $ 3,755 (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 $ 1,352 $ 1,381 $ 1,132 $ 970 $ 1,029 $ 761 $ 813 $ 615 Sales and marketing 1,249 1,243 1,059 878 779 783 673 517 Research and development 1,879 1,969 1,944 1,504 1,470 1,438 1,376 1,147 General and administrative 3,535 4,155 3,883 3,338 3,359 3,538 3,215 2,728 Total $ 8,015 $ 8,748 $ 8,018 $ 6,690 $ 6,637 $ 6,520 $ 6,077 $ 5,007 |
Basis of Presentation and Sig33
Basis of Presentation and Significant Accounting Policies (Other income (expense), net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Interest and Dividend Income, Securities, Operating | $ 1,068 | $ 712 | |
Interest income | $ 556 |
Basis of Presentation and Sig34
Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basis of Presentation and Significant Accounting Policies [Line Items] | |||||||||||
Capitalized computer software and website development costs, amortization cost | $ 8,300,000 | $ 2,400,000 | $ 700,000 | ||||||||
Capitalized Computer Software, Additions | 38,500,000 | 29,400,000 | 15,900,000 | ||||||||
Commission expenses deferred | 4,900,000 | 3,600,000 | 2,500,000 | ||||||||
Deferred commission balance | $ 7,800,000 | $ 5,300,000 | 7,800,000 | 5,300,000 | |||||||
Advertising expense | 1,000,000 | 700,000 | 400,000 | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 0 | ||||||||
Revenues | $ 96,181,000 | $ 100,381,000 | $ 90,098,000 | $ 73,625,000 | $ 64,867,000 | $ 68,939,000 | $ 65,942,000 | $ 54,189,000 | 360,285,000 | 253,937,000 | 161,537,000 |
Impairment and loss on sale of property and equipment | 5,000 | 97,000 | 693,000 | ||||||||
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 Sig35
Basis of Presentation and Significant Accounting Policies Cash Flows Adjustments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net income | $ 10,902,000 | $ 13,780,000 | $ 10,588,000 | $ 2,506,000 | $ 4,822,000 | $ 6,222,000 | $ 7,630,000 | $ 3,584,000 | $ 37,776,000 | $ 22,258,000 | $ 14,823,000 |
Depreciation and amortization | 20,460,000 | 10,842,000 | 5,605,000 | ||||||||
Excess tax benefit from stock-based compensation | (10,246,000) | (11,387,000) | (5,852,000) | ||||||||
Deferred income taxes | 7,784,000 | 2,255,000 | 395,000 | ||||||||
Prepaid expenses and other current assets | (5,334,000) | 1,381,000 | (4,867,000) | ||||||||
Accrued, other current and other liabilities | 17,585,000 | 35,079,000 | 13,436,000 | ||||||||
Net cash provided by operating activities | 102,653,000 | 87,230,000 | 40,598,000 | ||||||||
Excess tax benefit from stock-based compensation | 10,246,000 | 11,387,000 | 5,852,000 | ||||||||
Net cash provided by (used in) financing activities | $ 288,456,000 | $ (13,241,000) | $ 13,933,000 |
Net Income Per Share of Commo36
Net Income Per Share of Common Stock (Components of Net Income Per Share) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of net income (loss) per share of common stock | |||||||||||
Net income | $ 10,902,000 | $ 13,780,000 | $ 10,588,000 | $ 2,506,000 | $ 4,822,000 | $ 6,222,000 | $ 7,630,000 | $ 3,584,000 | $ 37,776,000 | $ 22,258,000 | $ 14,823,000 |
Basic shares: | |||||||||||
Weighted average common shares outstanding | 33,481,511 | 31,916,910 | 29,578,630 | 29,471,214 | 29,483,605 | 29,363,621 | 29,092,149 | 28,768,144 | 31,179,857 | 29,179,352 | 27,858,828 |
Diluted shares: | |||||||||||
Weighted average common shares outstanding | 33,481,511 | 31,916,910 | 29,578,630 | 29,471,214 | 29,483,605 | 29,363,621 | 29,092,149 | 28,768,144 | 31,179,857 | 29,179,352 | 27,858,828 |
Effect of potentially dilutive securities: | |||||||||||
Warrants to purchase common stock, employee stock options, RSUs and convertible preferred stock | 1,619,928 | 1,663,232 | 1,735,045 | ||||||||
Weighted average shares used to compute diluted net income per share | 35,010,867 | 33,482,533 | 31,188,599 | 31,080,314 | 30,959,344 | 31,005,651 | 30,807,418 | 30,442,163 | 32,799,785 | 30,842,584 | 29,593,873 |
Net income (loss) per share: | |||||||||||
Basic (USD per share) | $ 0.33 | $ 0.43 | $ 0.36 | $ 0.09 | $ 0.16 | $ 0.21 | $ 0.26 | $ 0.12 | $ 1.21 | $ 0.76 | $ 0.53 |
Diluted (USD per share) | $ 0.31 | $ 0.41 | $ 0.34 | $ 0.08 | $ 0.16 | $ 0.20 | $ 0.25 | $ 0.12 | $ 1.15 | $ 0.72 | $ 0.50 |
Net Income Per Share of Commo37
Net Income Per Share of Common Stock (Anti-Dilutive Shares) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Performance Based Awards [Member] | |||
Antidilutive securities excluded from computation of earning per share | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 20,304 | 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 | 48,374 | 225,122 | 624,277 |
Net Income Per Share of Commo38
Net Income Per Share of Common Stock (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 20,304 | 0 | 0 |
Financial Instruments and Fai39
Financial Instruments and Fair Value Measurements (Fair Value Hierarchy) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 392,141 | $ 111,236 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 158,972 | 26,217 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 233,169 | 85,019 |
U.S. government and government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 35,431 | 60,667 |
U.S. government and government agency obligations | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 4,579 | 19,429 |
U.S. government and government agency obligations | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 30,852 | 41,238 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 28,892 | 28,205 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 28,892 | 28,205 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 12,088 | 12,928 |
Certificates of deposit | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Certificates of deposit | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 12,088 | 12,928 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 2,733 | 6,788 |
Money Market Funds | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 2,733 | 6,788 |
Money Market Funds | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 11,361 | 2,648 |
Municipal obligations | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Municipal obligations | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 11,361 | 2,648 |
U.S. government and government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 301,636 | 0 |
U.S. government and government agency obligations | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 151,660 | 0 |
U.S. government and government agency obligations | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 149,976 | $ 0 |
Financial Instruments and Fai40
Financial Instruments and Fair Value Measurements (Carrying Amounts and Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 380,907 | $ 34,396 | $ 26,756 | $ 33,462 |
Cash and Cash Equivalents, Fair Value Disclosure | 380,902 | 34,396 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax [Abstract] | ||||
Available-for-sale Securities, Amortized Cost Basis | 87,996 | 104,705 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 23 | 17 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (247) | (274) | ||
Available-for-sale Securities | 87,772 | 104,448 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash | 76,538 | 27,608 | ||
Money Market Funds, at Carrying Value | 2,733 | 6,788 | ||
Fair Value, Measurements, Recurring [Member] | Cash Equivalents [Member] | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax [Abstract] | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 8 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (3) | |||
Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member] | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax [Abstract] | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 8 | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (3) | 0 | ||
Fair Value, Measurements, Recurring [Member] | Corporate Note Securities [Member] | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax [Abstract] | ||||
Available-for-sale Securities, Amortized Cost Basis | 28,978 | 28,314 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1 | 1 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (87) | (110) | ||
Available-for-sale Securities | 28,892 | 28,205 | ||
Fair Value, Measurements, Recurring [Member] | Certificates of deposit | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax [Abstract] | ||||
Available-for-sale Securities, Amortized Cost Basis | 12,094 | 12,945 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 13 | 5 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (19) | (22) | ||
Available-for-sale Securities | 12,088 | 12,928 | ||
Fair Value, Measurements, Recurring [Member] | Municipal obligations | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax [Abstract] | ||||
Available-for-sale Securities, Amortized Cost Basis | 11,422 | 2,647 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1 | 1 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (62) | 0 | ||
Available-for-sale Securities | 11,361 | 2,648 | ||
Fair Value, Measurements, Recurring [Member] | U.S. government and government agency obligations | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax [Abstract] | ||||
Available-for-sale Securities, Amortized Cost Basis | 35,502 | 60,799 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 8 | 10 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (79) | (142) | ||
Available-for-sale Securities | 35,431 | 60,667 | ||
U.S. government and government agency obligations | Fair Value, Measurements, Recurring [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash Equivalents, at Carrying Value | 301,631 | 0 | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 301,636 | $ 0 |
Financial Instruments and Fai41
Financial Instruments and Fair Value Measurements (Continuous Unrealized Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Interest and Dividend Income, Securities, Operating | $ 1,068 | $ 712 | |
Continuous Unrealized Loss Position [Abstract] | |||
Less than Twelve Months, Fair Value | 211,865 | 81,647 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 250 | 260 | |
Twelve Months or Longer, Fair Value | 385 | 4,307 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 14 | |
Fair Value | 212,250 | 85,954 | |
Unrealized Losses | 250 | 274 | |
Interest income, Other | $ 556 | ||
Corporate Note Securities [Member] | |||
Continuous Unrealized Loss Position [Abstract] | |||
Fair Value | 26,076 | 26,483 | |
Unrealized Losses | 87 | 110 | |
Certificates of deposit | |||
Continuous Unrealized Loss Position [Abstract] | |||
Fair Value | 5,651 | 9,284 | |
Unrealized Losses | 19 | 22 | |
Corporate Note Securities [Member] | |||
Continuous Unrealized Loss Position [Abstract] | |||
Less than Twelve Months, Fair Value | 26,076 | 23,969 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 87 | 99 | |
Twelve Months or Longer, Fair Value | 0 | 2,514 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 11 | |
Certificates of deposit | |||
Continuous Unrealized Loss Position [Abstract] | |||
Less than Twelve Months, Fair Value | 5,651 | 9,284 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 19 | 22 | |
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 | 180,138 | 48,394 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 144 | 139 | |
Twelve Months or Longer, Fair Value | 385 | 1,793 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 3 | |
Fair Value | 180,523 | 50,187 | |
Unrealized Losses | $ 144 | $ 142 |
Financial Instruments and Fai42
Financial Instruments and Fair Value Measurements (Summary of Investment Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Maturities of the Company's investments | ||
2,015 | $ 41,841 | |
2,016 | 30,615 | |
2,017 | 15,316 | |
Total | $ 87,772 | $ 104,448 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Oct. 23, 2015 | Oct. 01, 2014 | Jan. 15, 2014 | Oct. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 74,547 | $ 74,547 | $ 65,338 | ||||
ALLRegs [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Payments to Acquire Businesses, Gross | $ 28,100 | ||||||
Escrow Deposit | $ 3,000 | ||||||
Mortgage Returns, LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase consideration | $ 16,300 | ||||||
Payments to Acquire Businesses, Gross | $ 800 | ||||||
Current assets | 503 | ||||||
Other assets | 17 | ||||||
Property and equipment | 423 | ||||||
Current liabilities | (324) | ||||||
Long-term liabilities | 244 | ||||||
Deferred revenue | (350) | ||||||
Goodwill | 9,209 | ||||||
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] | |||||||
Total purchase consideration | $ 5,000 | ||||||
Payments to Acquire Businesses, Gross | $ 4,500 | ||||||
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. 23, 2015 | Oct. 01, 2014 | Jan. 15, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||||||||||||
Impairment loss on intangible assets | $ 0 | $ 562 | $ 1,968 | |||||||||||
Goodwill | $ 74,547 | $ 74,547 | 74,547 | 74,547 | 65,338 | |||||||||
Revenues | $ 96,181 | $ 100,381 | $ 90,098 | $ 73,625 | $ 64,867 | $ 68,939 | $ 65,942 | $ 54,189 | $ 360,285 | 253,937 | 161,537 | |||
Developed technology | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquired intangible assets, useful life | 4 years | |||||||||||||
Impairment loss on intangible assets | $ 600 | 1,700 | ||||||||||||
Trade name | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquired intangible assets, useful life | 1 year | |||||||||||||
Customer relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquired intangible assets, useful life | 7 years | |||||||||||||
Impairment loss on intangible assets | 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 | |||||||||||||
ALLRegs [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Payments to Acquire Businesses, Gross | $ 28,100 | |||||||||||||
Escrow Deposit | $ 3,000 | |||||||||||||
Revenues | $ 174,483 |
Acquisitions (Pro Forma Informa
Acquisitions (Pro Forma Information) (Details) - ALLRegs [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenues | $ | $ 174,483 |
Net income | $ | $ 15,982 |
Basic | $ / shares | $ 0.57 |
Diluted | $ / shares | $ 0.54 |
Balance Sheet Components (Prepa
Balance Sheet Components (Prepaid Expenses and Other) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Prepaid Expense and Other Assets [Abstract] | ||
Prepaid expenses | $ 11,568 | $ 6,704 |
Deferred commissions, current portion(1) | 2,761 | 1,814 |
Other receivables | 880 | 1,356 |
Prepaid Expense and Other Assets, Current | $ 15,209 | $ 9,874 |
Balance Sheet Components (Prope
Balance Sheet Components (Property and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized Computer Software, Net | $ 77,200 | $ 47,000 | |
Capitalized Computer Software, Amortization | 8,300 | 2,400 | $ 700 |
Property and equipment, gross | 141,972 | 75,625 | |
Accumulated depreciation and amortization | (48,991) | (28,552) | |
Depreciable Property, Plant Equipment | 92,981 | 47,073 | |
Property and equipment, net | 126,297 | 81,360 | |
Finite-Lived Intangible Assets, Net | 33,316 | 34,287 | |
Depreciation and amortization | 20,460 | 10,842 | 5,605 |
Capital Leases, Income Statement, Amortization Expense | 3,200 | 2,500 | 700 |
Impairment and loss on sale of property and equipment | 5 | 97 | $ 693 |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 3,710 | 6,861 | |
Computer equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 116,602 | 55,928 | |
Property and equipment under capital leases | 8,715 | 8,715 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 6,838 | 5,292 | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment under capital leases | 1,517 | 1,517 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 18,532 | 14,405 | |
Computer equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation related to capital leased assets | $ (6,522) | $ (3,371) |
Balance Sheet Components (Other
Balance Sheet Components (Other Intangibles) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment loss on intangible assets | $ 0 | $ 562 | $ 1,968 |
Gross Carrying Amount | 31,636 | 31,636 | |
Accumulated Amortization | (18,386) | (12,865) | |
Finite-Lived Intangible Assets, Net | 13,250 | 18,771 | |
Other intangible assets, net | $ 17,289 | $ 22,810 | |
Weighted average remaining useful life | 43 months 17 days | 50 months 29 days | |
Intangible Assets, Gross (Excluding Goodwill) | $ 35,675 | $ 35,675 | |
Amortization of intangible assets | 5,521 | 5,180 | 2,779 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment loss on intangible assets | 300 | ||
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment loss on intangible assets | 600 | $ 1,700 | |
Gross Carrying Amount | 11,535 | 11,535 | |
Accumulated Amortization | (8,183) | (5,668) | |
Other intangible assets, net | $ 3,352 | $ 5,867 | |
Weighted average remaining useful life | 32 months 21 days | 36 months 24 days | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 331 | $ 331 | |
Accumulated Amortization | (331) | (307) | |
Other intangible assets, net | $ 0 | $ 24 | |
Weighted average remaining useful life | 1 day | 10 months | |
Customer Relationships and Contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 19,400 | $ 19,400 | |
Accumulated Amortization | (9,762) | (6,875) | |
Other intangible assets, net | $ 9,638 | $ 12,525 | |
Weighted average remaining useful life | 47 months 18 days | 57 months 26 days | |
Order or Production Backlog [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 370 | $ 370 | |
Accumulated Amortization | (110) | (15) | |
Other intangible assets, net | $ 260 | $ 355 | |
Weighted average remaining useful life | 34 months | 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, 2016USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 4,294 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,443 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 314 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 3,166 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,778 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 255 |
Balance Sheet Components (Chang
Balance Sheet Components (Changes in Carrying Value of Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 23, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||||
Goodwill | $ 74,547 | $ 74,547 | $ 65,338 | |
Mortgage Returns, LLC [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 9,209 |
Balance Sheet Components (Accru
Balance Sheet Components (Accrued and Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued and Other Current Liabilities: | ||
Accrued payroll and related expenses | $ 31,848 | $ 23,938 |
Accrued commissions | 1,832 | 1,993 |
Accrued royalties | 1,395 | 1,546 |
Sales and other taxes | 2,327 | 1,536 |
Capital Lease Obligations, Current | 619 | 3,845 |
Other accrued expenses | 1,788 | 4,449 |
Accrued and other current liabilities | $ 39,809 | $ 37,307 |
Balance Sheet Components (Defer
Balance Sheet Components (Deferred Revenue) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 23,288 | $ 16,104 |
Less portion included in long-term other liabilities | (162) | (240) |
Deferred revenue, current | 23,126 | 15,864 |
Software maintenance [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 0 | 386 |
Professional services and training [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 10,729 | 6,430 |
Subscriptions [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 8,419 | 9,225 |
Other [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 4,140 | $ 63 |
Balance Sheet Components Other
Balance Sheet Components Other long-term liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Deferred revenue | $ 162 | $ 240 |
Deferred rent | 9,512 | 8,256 |
Deferred tax liability | 5,564 | 0 |
Other Sundry Liabilities, Noncurrent | 2,409 | 1,777 |
Other Liabilities, Noncurrent | $ 17,647 | $ 10,273 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Excess tax benefit from exercise of stock options | $ 9,974 | $ 11,387 | $ 5,852 | |
Deferred tax liability | 5,564 | 0 | ||
Deferred Tax Assets, Net | 2,200 | |||
Decrease in valuation allowance | (1,200) | (1,000) | (800) | |
Unrecognized tax benefits | 4,634 | $ 3,440 | $ 2,408 | $ 1,806 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 2,400 | |||
Unrecognized tax benefits netted against deferred tax assets subject to full valuation allowance | $ 2,200 |
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current federal tax expense (benefit) | $ 9,428 | $ 8,070 | $ 5,761 | ||||||||
Current state and local tax expense (benefit) | 1,664 | 1,894 | 630 | ||||||||
Current income tax expense (benefit) | 11,092 | 9,964 | 6,391 | ||||||||
Deferred federal income tax expense (benefit) | 7,124 | 1,899 | 336 | ||||||||
Deferred state and local income tax expense (benefit) | 614 | 356 | 59 | ||||||||
Deferred income tax expense (benefit) | 7,738 | 2,255 | 395 | ||||||||
Income tax provision (benefit) | $ 3,864 | $ 7,492 | $ 6,258 | $ 1,216 | $ 271 | $ 3,552 | $ 5,368 | $ 3,028 | $ 18,830 | $ 12,219 | $ 6,786 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | 35.00% | 35.00% | 35.00% |
Other non-deductible items | (1.00%) | 1.00% | 0.00% |
State taxes, net of federal benefit | 4.00% | 5.00% | 3.00% |
Stock-based compensation | 1.00% | 1.00% | 1.00% |
Tax credits | (6.00%) | (7.00%) | (8.00%) |
Income tax provision (benefit) | 33.00% | 35.00% | 31.00% |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets | ||
Research and development credits | $ 5,089 | $ 3,901 |
Stock-based compensation | 12,551 | 10,309 |
Reserves and accruals | 11,896 | 8,779 |
Gross deferred tax assets | 29,536 | 22,989 |
Valuation allowance | (5,089) | (3,901) |
Net deferred tax assets | 24,447 | 19,088 |
Deferred tax liabilities | ||
Depreciation and amortization | (28,749) | (16,171) |
Book/tax basis in acquired assets | (1,262) | (697) |
Total deferred tax liabilities | (30,011) | (16,868) |
Deferred Tax Liabilities, Net | $ 5,564 | |
Net deferred tax assets (liabilities) | $ (2,220) |
Income Taxes (Operating Loss Ca
Income Taxes (Operating Loss Carryforwards) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 15 |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 7.2 |
Income Taxes (Tax Credit Carryf
Income Taxes (Tax Credit Carryforwards) (Details) - Research and Development Tax Credit Carryforward [Member] $ in Millions | Dec. 31, 2016USD ($) |
Federal [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforward | $ 8.9 |
State [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforward | $ 6.2 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 3,440 | $ 2,408 | $ 1,806 |
(Deductions) additions based on tax positions related to the current year | 1,334 | 1,023 | 594 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (140) | ||
Additions based on tax positions related to prior years including acquisitions | 9 | 8 | |
Unrecognized tax benefits, ending balance | $ 4,634 | $ 3,440 | $ 2,408 |
Commitments and Contingencies61
Commitments and Contingencies (Details Textual) | 1 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2016ft² | Jul. 31, 2016ft² | Feb. 29, 2016ft² | Dec. 31, 2016USD ($)Facilities | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | |
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Facilities under operating lease arrangements | Facilities | 8 | |||||||
Rent expense | $ 5,400,000 | $ 4,200,000 | $ 2,100,000 | |||||
Operating Leases, Future Minimum Payments Due | 94,268,000 | |||||||
Total purchase commitments | 11,400,000 | |||||||
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | 6,200,000 | |||||||
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 4,800,000 | |||||||
Unrecorded Unconditional Purchase Obligation, Due within Three Years | $ 400,000 | |||||||
Office Space - Irvine, CA [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Area of Leased Property | ft² | 4,600 | |||||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 60 months | |||||||
Office Space - Irvine, CA [Member] | Minimum [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Operating Leases, Future Minimum Payments Due | $ 12,800 | |||||||
Office Space - Irvine, CA [Member] | Maximum [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Operating Leases, Future Minimum Payments Due | $ 15,000 | |||||||
Office Space - HQ Building 3 Amendment [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Area of Leased Property | ft² | 143,500 | |||||||
Office Space - HQ Building 3 Amendment [Member] | Minimum [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Operating Leases, Future Minimum Payments Due | $ 201,600 | |||||||
Office Space - HQ Building 3 Amendment [Member] | Maximum [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Operating Leases, Future Minimum Payments Due | 527,300 | |||||||
Omaha Office [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Area of Leased Property | ft² | 20,100 | |||||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 68 months | |||||||
Omaha Office [Member] | Minimum [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Operating Leases, Future Minimum Payments Due | 25,600 | |||||||
Omaha Office [Member] | Maximum [Member] | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Operating Leases, Future Minimum Payments Due | $ 37,900 |
Commitments and Contingencies62
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Capital Leases | ||
2,017 | $ 633 | |
2,018 | 87 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 720 | |
Less amount representing interest | (16) | |
Present value of minimum lease payments | 704 | |
Less current portion | (619) | $ (3,845) |
Long-term portion of lease obligations | 85 | $ 685 |
Operating Leases | ||
2,017 | 6,167 | |
2,018 | 10,122 | |
2,019 | 10,682 | |
2,020 | 10,839 | |
2,021 | 10,975 | |
Thereafter | 45,483 | |
Total minimum lease payments | $ 94,268 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | May 31, 2014 | Apr. 20, 2011 | |
Class of Stock [Line Items] | ||||||
Common stock, shares authorized | 140,000,000 | 140,000,000 | 140,000,000 | |||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Preferred stock, shares authorized | 10,000,000 | |||||
Preferred stock, par value | $ 0.0001 | |||||
Shares of common stock reserved and available for future issuance | 8,545,289 | |||||
Stock Issued During Period, Shares, New Issues | 3,162,500 | 3,162,500 | ||||
Stock Issued During Period, Value, New Issues | $ 271,400 | $ 271,309 | ||||
Payments of Stock Issuance Costs | $ 13,200 | |||||
Stock Repurchase Program, Authorized Amount | $ 75,000 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 42,800 | |||||
Stock Repurchased During Period, Shares | 8,333 | 503,450 | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 79.62 | $ 62.63 | ||||
Stock Repurchased During Period, Value | $ 663 | $ 31,530 | ||||
Options and Awards Outstanding [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares of common stock reserved and available for future issuance | 3,318,097 | |||||
Shares Available for Future Grant [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares of common stock reserved and available for future issuance | 3,828,349 | |||||
Shares Available Under Employee Stock Purchase Plan [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares of common stock reserved and available for future issuance | 1,398,843 |
Stock Incentive Plans (Summary
Stock Incentive Plans (Summary of Company's Stock Option Activities) (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of the period, Share | 2,515,329 | 3,050,301 | 3,284,672 |
Options granted, Shares | 385,776 | 904,602 | |
Options exercised, Shares | (584,807) | (822,133) | (1,048,053) |
Options forfeited or expired, Shares | (59,696) | (98,615) | (90,920) |
Outstanding at end of the period, Shares | 1,885,332 | 2,515,329 | 3,050,301 |
Ending vested and expected to vest, Number of Shares at End of Period | 1,865,630 | ||
Stock options exercisable at End of Period, Shares | 1,401,407 | ||
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 | $ 24.40 | $ 17.41 | $ 11.17 |
Options granted, weighted average exercise price | 59.78 | 55.30 | 28.76 |
Options exercised, weighted average exercise price | 18.08 | 12.28 | 7.19 |
Options forfeited or expired, weighted average exercise price | 37.94 | 30.12 | 22.46 |
Outstanding at end of the period, weighted average exercise price | 26.21 | $ 24.40 | $ 17.41 |
Ending vested and expected to vest at December 31, 2012, Weighted Average Exercise Price | 26.21 | ||
Stock option exercisable at June 30, 2012, weighted average exercise price, Ending Balance | $ 21.59 | ||
Weighted average remaining contractual term at December 31, 2012 | 6 years 124 days | ||
Ending vested and expected to vest, Weighted Average Remaining Contractual Term at December 31, 2012 | 6 years 117 days | ||
Stock option exercisable, weighted average remaining Contractual term, Ending balance | 5 years 314 days | ||
Aggregate Intrinsic value at December 31, 2012 | $ 108,356 | ||
Ending vested and expected to vest, Aggregate Intrinsic Value at December 31, 2012 | 107,565 | ||
Exercisable aggregate Intrinsic Value | $ 87,007 | ||
Maximum [Member] | 2011 Equity Incentive Award Plan [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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock options activity, additional information | |||
Weighted average grant-date fair value per option granted | $ 27.57 | $ 26.13 | $ 14.43 |
Grant-date fair value of options vested | $ 8,577 | $ 8,285 | $ 6,126 |
Intrinsic value of options exercised | 39,040 | 38,971 | 26,277 |
Proceeds received from options exercised | $ 10,573 | $ 10,094 | $ 7,537 |
Stock Incentive Plans (RSU and
Stock Incentive Plans (RSU and Performance Award Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of RSU activities | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 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 | 14,506 | ||
Summary of RSU activities | |||
Ending vested and expected to vest at December 31, 2012 | 1,865,630 | ||
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 | $ 10.2 | $ 4.7 | |
Summary of RSU activities | |||
Outstanding at December 31, 2011 | 748,688 | 585,858 | 257,378 |
Granted | 598,390 | 401,158 | 525,063 |
Released | (240,386) | (179,530) | (84,682) |
Forfeited or expired | (81,577) | (58,798) | (111,901) |
Outstanding at December 31, 2012 | 1,025,115 | 748,688 | 585,858 |
Ending vested and expected to vest at December 31, 2012 | 912,733 | ||
Weighted Average Grant Date Fair Value Outstanding at December 31, 2011 | $ 45.52 | $ 27.20 | $ 23.10 |
Weighted Average Grant Date Fair Value Granted | 78.39 | 62.62 | 28.85 |
Weighted Average Grant Date Fair Value Released | 42.48 | 25.97 | 22.56 |
Weighted Average Grant Date Fair Value Forfeited | 57.50 | 39.40 | 29.02 |
Weighted Average Grant Date Fair Value Outstanding at December 31, 2012 | $ 64.47 | $ 45.52 | $ 27.20 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
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 | $ 7 | $ 4.5 | |
Summary of RSU activities | |||
Outstanding at December 31, 2011 | 508,282 | 485,177 | 565,300 |
Granted | 151,540 | 205,816 | 155,953 |
Released | (239,120) | (182,711) | (178,076) |
Forfeited or expired | (13,052) | 0 | (58,000) |
Outstanding at December 31, 2012 | 407,650 | 508,282 | 485,177 |
Ending vested and expected to vest at December 31, 2012 | 407,650 | ||
Weighted Average Grant Date Fair Value Outstanding at December 31, 2011 | $ 34.68 | $ 25.61 | $ 24.43 |
Weighted Average Grant Date Fair Value Granted | 61.69 | 47.18 | 24.93 |
Weighted Average Grant Date Fair Value Released | 29.34 | 24.69 | 24.71 |
Weighted Average Grant Date Fair Value Forfeited | 68.19 | 0 | 24.91 |
Weighted Average Grant Date Fair Value Outstanding at December 31, 2012 | $ 46.77 | $ 34.68 | $ 25.61 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Stock Incentive Plans (Stock-Ba
Stock Incentive Plans (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-based compensation expense | |||||||||||
Stock-based compensation expense | $ 8,015 | $ 8,748 | $ 8,018 | $ 6,690 | $ 6,637 | $ 6,520 | $ 6,077 | $ 5,007 | $ 31,471 | $ 24,241 | $ 14,548 |
Cost of revenues [Member] | |||||||||||
Stock-based compensation expense | |||||||||||
Stock-based compensation expense | 1,352 | 1,381 | 1,132 | 970 | 1,029 | 761 | 813 | 615 | 4,835 | 3,218 | 1,579 |
Sales and marketing [Member] | |||||||||||
Stock-based compensation expense | |||||||||||
Stock-based compensation expense | 1,249 | 1,243 | 1,059 | 878 | 779 | 783 | 673 | 517 | 4,429 | 2,752 | 1,562 |
Research and development [Member] | |||||||||||
Stock-based compensation expense | |||||||||||
Stock-based compensation expense | 1,879 | 1,969 | 1,944 | 1,504 | 1,470 | 1,438 | 1,376 | 1,147 | 7,296 | 5,431 | 3,672 |
General and administrative [Member] | |||||||||||
Stock-based compensation expense | |||||||||||
Stock-based compensation expense | $ 3,535 | $ 4,155 | $ 3,883 | $ 3,338 | $ 3,359 | $ 3,538 | $ 3,215 | $ 2,728 | $ 14,911 | $ 12,840 | $ 7,735 |
Stock Incentive Plans (Valuatio
Stock Incentive Plans (Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Option [Member] | |||
Schedule of Stock Options and Employee Stock Purchase Plan Valuation Assumptions | |||
Risk-free interest rate | 1.38% | ||
Expected Life of options (in years) | 6 years 29 days | ||
Volatility | 47.00% | ||
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% | |
Expected Life of options (in years) | 5 years | 5 years 3 months 7 days | |
Volatility | 48.00% | 49.00% | |
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% | |
Expected Life of options (in years) | 6 years 29 days | 6 years 29 days | |
Volatility | 49.00% | 53.00% | |
Employee Stock Purchase Plan [Member] | |||
Schedule of Stock Options and Employee Stock Purchase Plan Valuation Assumptions | |||
Expected Life of options (in years) | 183 days | 182 days | 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 | 0.46% | 0.13% | 0.05% |
Volatility | 33.00% | 35.00% | 38.00% |
Employee Stock Purchase Plan [Member] | Maximum [Member] | |||
Schedule of Stock Options and Employee Stock Purchase Plan Valuation Assumptions | |||
Risk-free interest rate | 0.48% | 0.24% | 0.08% |
Volatility | 49.00% | 44.00% | 39.00% |
Stock Incentive Plans (Details
Stock Incentive Plans (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Oct. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||
Stock-based compensation expense | $ 8,015,000 | $ 8,748,000 | $ 8,018,000 | $ 6,690,000 | $ 6,637,000 | $ 6,520,000 | $ 6,077,000 | $ 5,007,000 | $ 31,471,000 | $ 24,241,000 | $ 14,548,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||||||||||
Maximum expected term of options (in years) | 10 years | |||||||||||||||
Stock-based compensation capitalized to property and equipment | $ 2,831,000 | 1,126,000 | 534,000 | |||||||||||||
Purchase price of ESPP shares | $ 6,724,000 | $ 4,105,000 | $ 2,624,000 | |||||||||||||
2009 Plan [Member] | ||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||
Options outstanding | 987,657 | 987,657 | 987,657 | |||||||||||||
Employee Stock [Member] | Employee Stock Purchase Plan [Member] | ||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||
Weighted Average Grant Date Fair Value Granted | $ 24.11 | $ 16.12 | $ 8.38 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | |||||||||||||||
Number of shares purchased under ESPP | 101,816 | 110,598 | 102,111 | |||||||||||||
Purchase price of ESPP shares | $ 6,700,000 | $ 4,100,000 | $ 2,600,000 | |||||||||||||
Unrecognized compensation cost related to employee stock purchase plan | $ 400,000 | $ 400,000 | $ 400,000 | |||||||||||||
Expected recognized period under employee stock purchase plan | 2 months | |||||||||||||||
Stock Option Plans [Member] | ||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 14,506 | |||||||||||||||
Stock options exercised | 584,807 | 822,133 | 1,048,053 | |||||||||||||
Options outstanding | 1,885,332 | 3,050,301 | 1,885,332 | 2,515,329 | 1,885,332 | 2,515,329 | 3,050,301 | 3,284,672 | ||||||||
Company's closing stock price | $ 83.68 | |||||||||||||||
Unrecognized Compensation Cost Related to unvested Stock option | $ 8,500,000 | $ 8,500,000 | $ 8,500,000 | |||||||||||||
Expected to be recognized over a weighted average period | 1 year 263 days | |||||||||||||||
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 | 1,666,666 | |||||||||||||
Annual automatic increase in common shares reserved for issuance, as a percent of common stock outstanding | 5.00% | 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 | 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 | 23,333,333 | |||||||||||||
Stock Option Plans [Member] | Executive Incentive Plan [Member] | ||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||
Common shares reserved for issuance | 70,000,000 | 70,000,000 | 70,000,000 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Allowable to Grant Per Year | 1,000,000 | |||||||||||||||
Performance-vestingRSUs [Member] | Former CEO of Mortgage Returns [Member] | ||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||
Grants, other than options | 29,006 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Granted in Period, Fair Value | $ 2,000,000 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 200,000 | |||||||||||||||
RSUs [Member] | ||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 20,100,000 | $ 11,100,000 | ||||||||||||||
Weighted Average Grant Date Fair Value Granted | $ 78.39 | $ 62.62 | $ 28.85 | |||||||||||||
Grants, other than options | 598,390 | 401,158 | 525,063 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 10,200,000 | $ 4,700,000 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 81,577 | 58,798 | 111,901 | |||||||||||||
Performance Shares [Member] | ||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 21,800,000 | $ 13,200,000 | ||||||||||||||
Weighted Average Grant Date Fair Value Granted | $ 61.69 | $ 47.18 | $ 24.93 | |||||||||||||
Grants, other than options | 151,540 | 205,816 | 155,953 | |||||||||||||
Stock-based compensation expense | $ 8,300,000 | $ 7,400,000 | $ 4,500,000 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 7,000,000 | $ 4,500,000 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 13,052 | 0 | 58,000 | |||||||||||||
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] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | |||||||||||||||
Performance Shares [Member] | 2011 Equity Incentive Award Plan [Member] | Maximum [Member] | ||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | |||||||||||||||
Performance Shares [Member] | Executive Incentive Plan [Member] | ||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Allowable to Grant Per Year | 1,000,000 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Fair Value Allowable to Grant Per Year | $ 10,000,000 | |||||||||||||||
Restricted Stock Units and Performance Awards [Member] | ||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||
Unrecognized Compensation Cost Related to unvested Stock option | $ 54,400,000 | $ 54,400,000 | $ 54,400,000 | |||||||||||||
Expected to be recognized over a weighted average period | 2 years 157 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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | $ 2.8 | $ 2 | $ 1.3 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)industry | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating industries | industry | 1 | ||||||||||
Segment Reporting Information Revenue | |||||||||||
Revenues | $ 96,181 | $ 100,381 | $ 90,098 | $ 73,625 | $ 64,867 | $ 68,939 | $ 65,942 | $ 54,189 | $ 360,285 | $ 253,937 | $ 161,537 |
On-demand revenues | |||||||||||
Segment Reporting Information Revenue | |||||||||||
Revenues | 359,567 | 249,871 | 154,315 | ||||||||
On-premise revenues | |||||||||||
Segment Reporting Information Revenue | |||||||||||
Revenues | $ 718 | $ 4,066 | $ 7,222 |
Quarterly Results of Operatio72
Quarterly Results of Operations Data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 96,181,000 | $ 100,381,000 | $ 90,098,000 | $ 73,625,000 | $ 64,867,000 | $ 68,939,000 | $ 65,942,000 | $ 54,189,000 | $ 360,285,000 | $ 253,937,000 | $ 161,537,000 |
Cost of revenues | 32,843,000 | 32,218,000 | 28,453,000 | 26,631,000 | 23,555,000 | 22,441,000 | 20,862,000 | 17,350,000 | 120,145,000 | 84,208,000 | 46,283,000 |
Gross profit | 63,338,000 | 68,163,000 | 61,645,000 | 46,994,000 | 41,312,000 | 46,498,000 | 45,080,000 | 36,839,000 | 240,140,000 | 169,729,000 | 115,254,000 |
Sales and marketing | 14,257,000 | 12,654,000 | 12,506,000 | 15,287,000 | 10,562,000 | 9,082,000 | 8,804,000 | 9,760,000 | 54,704,000 | 38,208,000 | 26,544,000 |
Research and development | 16,305,000 | 15,081,000 | 14,662,000 | 12,453,000 | 11,734,000 | 11,138,000 | 9,282,000 | 8,297,000 | 58,501,000 | 40,451,000 | 28,228,000 |
General and administrative | 18,434,000 | 19,360,000 | 17,793,000 | 15,731,000 | 14,103,000 | 16,658,000 | 14,149,000 | 12,302,000 | 71,318,000 | 57,212,000 | 39,361,000 |
Total operating expenses | 48,996,000 | 47,095,000 | 44,961,000 | 43,471,000 | 36,399,000 | 36,878,000 | 32,235,000 | 30,359,000 | 184,523,000 | 135,871,000 | 94,133,000 |
Income from operations | 14,342,000 | 21,068,000 | 16,684,000 | 3,523,000 | 4,913,000 | 9,620,000 | 12,845,000 | 6,480,000 | 55,617,000 | 33,858,000 | 21,121,000 |
Operating income (loss), net | 424,000 | 204,000 | 162,000 | 199,000 | 180,000 | 154,000 | 153,000 | 132,000 | 989,000 | 619,000 | 488,000 |
Income before income taxes | 14,766,000 | 21,272,000 | 16,846,000 | 3,722,000 | 5,093,000 | 9,774,000 | 12,998,000 | 6,612,000 | 56,606,000 | 34,477,000 | 21,609,000 |
Income tax (benefit) provision | 3,864,000 | 7,492,000 | 6,258,000 | 1,216,000 | 271,000 | 3,552,000 | 5,368,000 | 3,028,000 | 18,830,000 | 12,219,000 | 6,786,000 |
Net income | $ 10,902,000 | $ 13,780,000 | $ 10,588,000 | $ 2,506,000 | $ 4,822,000 | $ 6,222,000 | $ 7,630,000 | $ 3,584,000 | $ 37,776,000 | $ 22,258,000 | $ 14,823,000 |
Earnings Per Share [Abstract] | |||||||||||
Basic (USD per share) | $ 0.33 | $ 0.43 | $ 0.36 | $ 0.09 | $ 0.16 | $ 0.21 | $ 0.26 | $ 0.12 | $ 1.21 | $ 0.76 | $ 0.53 |
Diluted (USD per share) | $ 0.31 | $ 0.41 | $ 0.34 | $ 0.08 | $ 0.16 | $ 0.20 | $ 0.25 | $ 0.12 | $ 1.15 | $ 0.72 | $ 0.50 |
Weighted average common shares outstanding | 33,481,511 | 31,916,910 | 29,578,630 | 29,471,214 | 29,483,605 | 29,363,621 | 29,092,149 | 28,768,144 | 31,179,857 | 29,179,352 | 27,858,828 |
Weighted average common shares outstanding, diluted | 35,010,867 | 33,482,533 | 31,188,599 | 31,080,314 | 30,959,344 | 31,005,651 | 30,807,418 | 30,442,163 | 32,799,785 | 30,842,584 | 29,593,873 |
Unrealized losses on investments | $ (284,000) | $ (107,000) | $ 101,000 | $ 328,000 | $ (319,000) | $ 27,000 | $ (41,000) | $ 171,000 | $ 38,000 | $ (162,000) | $ (61,000) |
Comprehensive income (loss) | 10,618,000 | 13,673,000 | 10,689,000 | 2,834,000 | 4,503,000 | 6,249,000 | 7,589,000 | 3,755,000 | 37,814,000 | 22,096,000 | 14,762,000 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Stock-based compensation expense | 8,015,000 | 8,748,000 | 8,018,000 | 6,690,000 | 6,637,000 | 6,520,000 | 6,077,000 | 5,007,000 | 31,471,000 | 24,241,000 | 14,548,000 |
Cost of revenues [Member] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Stock-based compensation expense | 1,352,000 | 1,381,000 | 1,132,000 | 970,000 | 1,029,000 | 761,000 | 813,000 | 615,000 | 4,835,000 | 3,218,000 | 1,579,000 |
Sales and marketing [Member] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Stock-based compensation expense | 1,249,000 | 1,243,000 | 1,059,000 | 878,000 | 779,000 | 783,000 | 673,000 | 517,000 | 4,429,000 | 2,752,000 | 1,562,000 |
Research and development [Member] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Stock-based compensation expense | 1,879,000 | 1,969,000 | 1,944,000 | 1,504,000 | 1,470,000 | 1,438,000 | 1,376,000 | 1,147,000 | 7,296,000 | 5,431,000 | 3,672,000 |
General and administrative [Member] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Stock-based compensation expense | $ 3,535,000 | $ 4,155,000 | $ 3,883,000 | $ 3,338,000 | $ 3,359,000 | $ 3,538,000 | $ 3,215,000 | $ 2,728,000 | $ 14,911,000 | $ 12,840,000 | $ 7,735,000 |
SCHEDULE II VALUATION AND QUA73
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Allowance for Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 124 | $ 66 | $ 81 | |
Charged (Credited) to Income | 121 | 62 | 1 | |
Deductions and Other | 200 | (4) | (14) | [1] |
Balance at End of Period | 45 | 124 | 66 | |
Income Tax Valuation Allowance [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 3,901 | 2,897 | 2,056 | |
Deductions and Other | (1,188) | (1,004) | (841) | [2] |
Balance at End of Period | $ 5,089 | $ 3,901 | $ 2,897 | |
[1] | Accounts written off, net of recoveries. | |||
[2] | Adjustments to offset changes in deferred tax assets. |