Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 26, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ELLIE MAE INC | |
Entity Central Index Key | 1,122,388 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,069,253 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 334,926 | $ 380,907 |
Short-term investments | 58,809 | 41,841 |
Accounts receivable, net of allowance for doubtful accounts of $45 and $45 as of March 31, 2017 and December 31, 2016, respectively | 39,870 | 39,358 |
Prepaid expenses and other current assets | 16,182 | 15,209 |
Total current assets | 449,787 | 477,315 |
Property and equipment, net | 141,716 | 126,297 |
Long-term investments | 54,241 | 45,931 |
Intangible assets, net | 16,211 | 17,289 |
Deposits and other assets | 23,855 | 10,138 |
Goodwill | 74,547 | 74,547 |
Total assets | 760,357 | 751,517 |
Current liabilities: | ||
Accounts payable | 16,843 | 15,942 |
Accrued and other current liabilities | 19,859 | 39,809 |
Deferred revenue | 19,811 | 23,126 |
Total current liabilities | 56,513 | 78,877 |
Leases payable, net of current portion | 55 | 85 |
Other long-term liabilities | 12,502 | 17,647 |
Total liabilities | 69,070 | 96,609 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Common stock, $0.0001 par value per share; 140,000,000 authorized shares, 34,063,216 and 33,685,649 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively | 3 | 3 |
Additional paid-in capital | 624,275 | 612,098 |
Accumulated other comprehensive loss | (161) | (219) |
Retained earnings | 67,170 | 43,026 |
Total stockholders' equity | 691,287 | 654,908 |
Total liabilities and stockholders' equity | $ 760,357 | $ 751,517 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances for doubtful accounts | $ 45 | $ 45 |
Common stock, par value | $ 0.0001000 | $ 0.0001000 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares issued | 34,063,216 | 33,685,649 |
Common stock, shares outstanding | 34,063,216 | 33,685,649 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Revenues | $ 93,002 | $ 73,625 |
Cost of revenues | 34,768 | 26,631 |
Gross profit | 58,234 | 46,994 |
Operating expenses: | ||
Sales and marketing | 19,380 | 15,287 |
Research and development | 17,407 | 12,453 |
General and administrative | 16,942 | 15,731 |
Total operating expenses | 53,729 | 43,471 |
Income from operations | 4,505 | 3,523 |
Other income, net | 501 | 199 |
Income before income taxes | 5,006 | 3,722 |
Income tax provision (benefit) | (4,593) | 1,216 |
Net income | $ 9,599 | $ 2,506 |
Net income per share of common stock: | ||
Basic | $ 0.28 | $ 0.09 |
Diluted | $ 0.27 | $ 0.08 |
Weighted average common shares used in computing net income per share of common stock: | ||
Basic | 33,702,109 | 29,471,214 |
Diluted | 35,609,459 | 31,080,314 |
Other comprehensive income, net of taxes: | ||
Net income | $ 9,599 | $ 2,506 |
Unrealized gain on investments | 58 | 328 |
Comprehensive income | $ 9,657 | $ 2,834 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 9,599 | $ 2,506 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,339 | 3,954 |
Amortization of intangible assets | 1,078 | 1,457 |
Stock-based compensation expense | 7,851 | 6,690 |
Deferred income taxes | (4,647) | 1,172 |
Loss on disposal of property and equipment | 0 | 5 |
Amortization (accretion) of investments | (164) | 239 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (511) | (10,906) |
Prepaid expenses and other current assets | (973) | (1,598) |
Deposits and other assets | (89) | (1,565) |
Accounts payable | 1,860 | 625 |
Accrued, other current and other liabilities | (19,442) | (13,817) |
Deferred revenue | (3,323) | 1,178 |
Net cash used in operating activities | (1,422) | (10,060) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (11,327) | (13,298) |
Acquisition of internal-use software | (11,439) | (7,112) |
Purchases of investments | (38,907) | (18,971) |
Maturities of investments | 13,851 | 18,094 |
Sale of investments | 0 | 20,000 |
Net cash used in investing activities | (47,822) | (1,287) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment of capital lease obligations | (111) | (868) |
Proceeds from issuance of common stock under employee stock plans | 7,283 | 6,719 |
Payment of issuance costs relating to common stock issued in public offering | (15) | 0 |
Tax payments related to shares withheld for vested restricted stock units | (3,894) | (360) |
Net cash provided by financing activities | 3,263 | 5,491 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (45,981) | (5,856) |
CASH AND CASH EQUIVALENTS, Beginning of period | 380,907 | 34,396 |
CASH AND CASH EQUIVALENTS, End of period | 334,926 | 28,540 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 305 | 79 |
Cash paid for income taxes | 63 | 97 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Fixed asset purchases accrued but not paid | 5,001 | 2,036 |
Stock-based compensation capitalized to property and equipment | $ 937 | $ 488 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 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 | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“ U.S. GAAP ”) and applicable rules and regulations of the Securities and Exchange Commission (“ SEC ”) regarding interim financial reporting. Certain information and note disclosures included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 , which was filed with the SEC on February 22, 2017 (“ 2016 Form 10-K ”). The condensed consolidated balance sheet as of December 31, 2016 , included herein, was derived from the audited financial statements as of that date but does not include all disclosures, including notes required by U.S. GAAP . In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial positions, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2017 or any future period. Principles of Consolidation The condensed 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 The preparation of condensed 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 condensed consolidated financial statements and footnotes. Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 of the Notes to Consolidated Financial Statements in its 2016 Form 10-K . There have been no significant changes to these policies during the three months ended March 31, 2017 except in relation to our adoption of ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting (“ASU 2016-09”) on January 1, 2017 where the Company now records excess tax benefits and tax deficiencies as income tax benefit or expense when stock awards vest or settle and the Company no longer classify the cash flow from excess tax benefits as a reduction from operating cash flows. 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 on marketable securities. Except for net realized gain on investments , which was not significant, there were no reclassifications out of accumulated other comprehensive income that affected net income during the three months ended March 31, 2017 and 2016 . 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. The effective date for public entities is 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 (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 project plan to finalize the evaluation and complete the implementation. The Company has preliminarily identified potential impacts to the timing of revenue recognition for certain revenue streams due to the removal of the current limitation on contingent revenue. The Company expects an impact to certain revenue streams due to the removal of the current limitation on contingent revenue, which may affect the timing of revenues being recognized for certain contracts. The Company has also preliminarily identified potential impacts to the costs to obtain contracts, which is primarily comprised of sales commissions and the related fringe benefits associated with non-cancelable contracts. The Company expects to capitalize certain costs that are expensed under the current standard and the Company expects an increase in the amortization period over which the capitalized costs will be recognized. The Company is evaluating the adoption method based on various factors including the significance of the impact of the new standard on the Company’s financial results and system capabilities. This evaluation is in process, and the adoption method has not been determined. 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 update 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 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 is currently evaluating early adoption of this standard, which could potentially impact the characterization of future transactions as either assets or businesses. New Standards Adopted 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 for 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 has adopted the standard as of January 1, 2017. Upon adoption, the Company recognized the previously unrecognized excess tax benefits using the modified retrospective transition method, which resulted in a cumulative-effect adjustment of $14.5 million to retained earnings as of the beginning of the period. The Company has elected to continue estimating forfeitures and has also elected to apply the change in presentation to the statements of cash flows retrospectively. As a result, the Company no longer classifies the excess tax benefits from employee stock plans as a reduction from operating cash flows. There were no excess tax benefits for the three months ended March 31, 2016. 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 has elected to early adopt the standard on January 1, 2017. The adoption did not have an impact to the Company’s consolidated financial statements. |
Net Income Per Share of Common
Net Income Per Share of Common Stock | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share of Common Stock | Net Income Per Share of Common Stock Net income per share of common stock is calculated by dividing net income by the weighted average shares of common stock outstanding during the period. Diluted net income per share of common stock is calculated by dividing net income by the weighted average shares of common stock outstanding and potential shares of common stock during the period. Potential shares of common stock include dilutive shares attributable to the assumed exercise of stock options, restricted stock unit awards (“ RSU s”), performance-vesting RSUs, performance share awards (“ Performance Awards ”), and Employee Stock Purchase Plan (“ ESPP ”) shares using the treasury stock method, if dilutive. The components of net income per share of common stock were as follows: Three Months ended March 31, 2017 2016 (in thousands, except share and per share amounts) Net income $ 9,599 $ 2,506 Basic shares: Weighted average common shares outstanding 33,702,109 29,471,214 Diluted shares: Weighted average shares used to compute basic net income per share 33,702,109 29,471,214 Effect of potentially dilutive securities: Employee stock options, RSUs, performance-vesting RSUs, Performance Awards and ESPP shares 1,907,350 1,609,100 Weighted average shares used to compute diluted net income per share 35,609,459 31,080,314 Net income per share: Basic $ 0.28 $ 0.09 Diluted $ 0.27 $ 0.08 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: Three Months ended March 31, 2017 2016 Employee stock options and awards 72,916 224,366 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, 71,939 and 13,776 shares underlying performance-vesting RSUs and Performance Awards were excluded from the dilutive shares outstanding for each of the three months ended March 31, 2017 and 2016 , respectively. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | 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: March 31, 2017 December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total (in thousands) (in thousands) Cash equivalents: Money market funds $ 1,679 $ — $ 1,679 $ 2,733 $ — $ 2,733 Corporate notes and obligations — 5,118 5,118 — — — U.S. government and government agency obligations — 42,372 42,372 151,660 149,976 301,636 Investments: Certificates of deposit — 10,925 10,925 — 12,088 12,088 Corporate notes and obligations — 30,690 30,690 — 28,892 28,892 Municipal obligations — 11,841 11,841 — 11,361 11,361 U.S. government and government agency obligations 2,017 57,577 59,594 4,579 30,852 35,431 $ 3,696 $ 158,523 $ 162,219 $ 158,972 $ 233,169 $ 392,141 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 . Valuation of the Company’s marketable securities investments classified as Level 2 is achieved primarily through broker quotes when such investments exist in a non-active market. At March 31, 2017 and December 31, 2016 , the Company did not have any assets or liabilities that were valued using Level 3 inputs. For the three months ended March 31, 2017 and 2016 , there were no transfers of financial instruments between the levels. For the three months ended March 31, 2017 and 2016 , the Company recognized interest income from financial instruments of $0.5 million and $0.2 million , respectively. Gross realized gains and losses from the sale of investments were not significant during the three months ended March 31, 2017 and 2016 . 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: March 31, 2017 December 31, 2016 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 $ 286,002 $ — $ — $ 286,002 $ 76,538 $ — $ — $ 76,538 Money market funds 1,434 — — 1,434 2,733 — — 2,733 Corporate notes and obligations 5,118 — — 5,118 — — — — U.S. government and government agency obligations 42,372 2 (2 ) 42,372 301,631 8 (3 ) 301,636 $ 334,926 $ 2 $ (2 ) $ 334,926 $ 380,902 $ 8 $ (3 ) $ 380,907 Investments: Corporate notes and obligations $ 30,756 $ 4 $ (70 ) $ 30,690 $ 28,978 $ 1 $ (87 ) $ 28,892 Certificates of deposit 10,923 4 (2 ) 10,925 12,094 13 (19 ) 12,088 Municipal obligations 11,850 10 (19 ) 11,841 11,422 1 (62 ) 11,361 U.S. government and government agency obligations 59,682 4 (92 ) 59,594 35,502 8 (79 ) 35,431 $ 113,211 $ 22 $ (183 ) $ 113,050 $ 87,996 $ 23 $ (247 ) $ 87,772 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 March 31, 2017 or December 31, 2016 . March 31, 2017 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 $ 26,977 $ (68 ) $ 679 $ (3 ) $ 27,656 $ (71 ) Certificates of deposit 4,378 (2 ) — — 4,378 (2 ) U.S. government, government agency, and municipal obligations 60,983 (112 ) 585 — 61,568 (112 ) $ 92,338 $ (182 ) $ 1,264 $ (3 ) $ 93,602 $ (185 ) 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 ) The following table summarizes the maturities of the Company’s investments at March 31, 2017 : Carrying or Fair Value (in thousands) Remainder of 2017 $ 43,644 2018 45,753 2019 22,728 2020 925 Total $ 113,050 Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2017 | |
Statement of Financial Position [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment Property and equipment, net, consisted of the following: March 31, December 31, 2017 2016 (in thousands) Computer equipment and software (1) $ 128,672 $ 116,602 Furniture and fixtures 7,122 6,838 Leasehold improvements 18,532 18,532 Property and equipment 154,326 141,972 Accumulated depreciation and amortization (1) (56,331 ) (48,991 ) Net property and equipment 97,995 92,981 Internal-use software and other assets not placed in service 43,721 33,316 $ 141,716 $ 126,297 ________________ (1) Includes computer equipment and software under capital leases Computer equipment and software under capital leases, net, consisted of the following: March 31, December 31, 2017 2016 (in thousands) Computer equipment $ 8,715 $ 8,715 Software 1,517 1,517 Accumulated amortization (7,281 ) (6,522 ) Net computer equipment and software under capital leases $ 2,951 $ 3,710 Depreciation expense for the three months ended March 31, 2017 and 2016 was $7.3 million and $4.0 million , respectively. Amortization of assets under capital leases which is included in depreciation expense for the three months ended March 31, 2017 and 2016 was $0.8 million and $0.8 million , respectively. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following: March 31, December 31, 2017 2016 (in thousands) Accrued payroll and related expenses $ 13,204 $ 31,848 Accrued commissions 1,165 1,832 Accrued royalties 1,649 1,395 Sales and other taxes 1,041 2,327 Current portion of leases payable 538 619 Other accrued expenses 2,262 1,788 $ 19,859 $ 39,809 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The carrying value of goodwill at March 31, 2017 was $74.5 million . There were no changes in the carrying value of goodwill during the three months ended March 31, 2017 . Intangible assets, net, consisted of the following: March 31, 2017 Gross Carrying Accumulated Net Intangibles Weighted Average Remaining Useful Life (in thousands) (in years) Assets subject to amortization: Developed technology $ 11,535 $ (8,516 ) $ 3,019 2.5 Trade names 331 (331 ) — 0.0 Customer relationships 19,400 (10,484 ) 8,916 3.8 Order backlog 370 (133 ) 237 2.6 Total assets subject to amortization: 31,636 (19,464 ) 12,172 3.4 Assets not subject to amortization: Trade name 4,039 — 4,039 $ 35,675 $ (19,464 ) $ 16,211 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 Amortization expense associated with intangible assets for the three months ended March 31, 2017 and 2016 was $1.1 million and $1.5 million , respectively. Future amortization expense for intangible assets at March 31, 2017 was as follows: Amortization (in thousands) Remainder of 2017 $ 3,216 2018 3,443 2019 3,166 2020 1,778 2021 314 2022 255 $ 12,172 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company computes its interim provision for income taxes by applying the estimated annual effective tax rate to the year-to-date income from recurring operations and adjusts the provision for discrete tax items recorded in the period. The Company evaluates and updates its estimated annual effective income tax rate on a quarterly basis. The estimated annual effective tax rate as of March 31, 2017 and 2016 was 36.8% and 37.9% , respectively. Three Months ended March 31, 2017 2016 (dollars in thousands) Income tax provision (benefit) $ (4,593 ) $ 1,216 Effective tax rate (1) (91.7 )% 32.7 % ________________ (1) Adoption of ASU 2016-09 resulted in a favorable ETR impact of 129.3% in the first quarter of 2017. The difference between the federal statutory rate of 35% and the Company’s estimated effective tax rate for the three months ended March 31, 2017 was primarily due to the accounting method change adopted for 2017 to include the benefit of excess stock award deductions in tax expense as well as non-deductible stock-based compensation expenses, and R&D credits. As described in Note 2 “Basis of Presentation and Significant Accounting Policies”, the Company adopted ASU 2016-09 on January 1, 2017, which requires the excess tax benefits or deficiencies to be reflected in the Consolidated Statements of Comprehensive Income as a component of the provision for income taxes, which were previously recognized in equity. Total excess tax benefits recognized for the three months ended March 31, 2017 was $6.5 million . The Company’s tax positions are subject to income tax audits by multiple tax jurisdictions. The Company accounts for uncertain tax positions and believes that it has provided adequate reserves for its unrecognized tax benefits for all tax years still open for assessment. The Company also believes that it does not have any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease 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 in the balance sheet, and to include the expenses incurred related to such accruals in the provision for income taxes. There were no interest or penalties included in the provision for income taxes during the three months ended March 31, 2017 and 2016 , respectively. The U.S. Internal Revenue Service has completed the examination of the 2013 tax year and there was no effect on income tax expense. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases As of March 31, 2017 , 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. Future minimum lease payments under non-cancelable operating and capital leases at March 31, 2017 consisted of the following: Capital Leases Operating Leases (in thousands) Remainder of 2017 $ 516 $ 4,908 2018 87 10,122 2019 — 10,682 2020 — 10,839 2021 — 10,976 2022 — 45,483 Total minimum lease payments 603 $ 93,010 Less amount representing interest (10 ) Present value of minimum lease payments 593 Less current portion (538 ) Long-term portion of lease obligations $ 55 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 Quarterly Report on Form 10-Q, 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. |
Equity and Stock Incentive Plan
Equity and Stock Incentive Plans | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity and Stock Incentive Plans | Equity and Stock Incentive Plans The Company recognized stock-based compensation expense related to awards granted under its 2009 Stock Option and Incentive Plan (the “2009 Plan”), 2011 Equity Incentive Award Plan (the “ 2011 Plan ”), and ESPP . Total stock-based compensation expense recognized consisted of: Three Months ended March 31, 2017 2016 (in thousands) Cost of revenues $ 1,444 $ 970 Sales and marketing 1,176 878 Research and development 1,861 1,504 General and administrative 3,370 3,338 $ 7,851 $ 6,690 2009 Stock Option and Incentive Plan and 2011 Equity Incentive Award Plan 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 January 1, 2017 1,885,332 $ 26.21 6.34 $ 108,356 Granted 6,601 94.66 Exercised (141,979 ) 21.19 Forfeited or expired (4,399 ) 40.66 Outstanding at March 31, 2017 1,745,555 $ 26.84 6.16 $ 128,181 Ending vested and expected to vest at March 31, 2017 1,731,290 $ 26.69 6.14 $ 127,395 Exercisable at March 31, 2017 1,351,100 $ 22.48 5.73 $ 105,102 Stock options granted during the three months ended March 31, 2017 were made under the 2011 Plan. There were no grants under the 2009 Plan during the three months ended March 31, 2017 . The aggregate intrinsic value of the stock options outstanding at March 31, 2017 represents the value of the Company’s closing stock price of $100.27 on March 31, 2017 in excess of the exercise price multiplied by the number of options outstanding for options that were in-the-money. Options outstanding that are expected to vest are net of estimated future option forfeitures. As of March 31, 2017 , total unrecognized stock-based compensation expense related to unvested stock options, adjusted for estimated forfeitures, was $7.4 million and is expected to be recognized over a weighted average period of 1.6 years. Restricted Stock Units, Performance-Vesting Restricted Stock Units, and Performance Awards 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 January 1, 2017 1,025,115 $ 64.47 407,650 $ 46.77 Granted 89,356 94.66 61,806 94.66 Released (55,799 ) 49.20 (145,651 ) 39.53 Forfeited or expired (19,103 ) 70.10 — — Outstanding at March 31, 2017 1,039,569 $ 67.78 323,805 $ 59.17 Ending vested and expected to vest at March 31, 2017 939,912 323,805 RSU s, performance-vesting RSUs and Performance Awards that are expected to vest are presented net of estimated future forfeitures. RSU s released during the three months ended March 31, 2017 and 2016 had an aggregate intrinsic value of $5.3 million and $2.6 million , respectively, and had an aggregate grant-date fair value of $2.7 million and $1.1 million , respectively. Performance-vesting RSUs and Performance Awards released during the three months ended March 31, 2017 and 2016 had an aggregate intrinsic value of $13.7 million and $9.3 million , respectively, and had an aggregate grant-date fair value of $5.8 million and $3.5 million , respectively. The number of RSU s released includes shares that the Company withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. As of March 31, 2017 , total unrecognized compensation expense related to unvested RSU s, performance-vesting RSUs and Performance Awards was $60.6 million and is expected to be recognized over a weighted average period of 2.4 years. Employee Stock Purchase Plan For the three months ended March 31, 2017 and 2016 , employees purchased 52,619 shares and 47,819 shares, respectively, under the ESPP for a total of $4.3 million and $2.9 million , respectively. As of March 31, 2017 , unrecognized compensation expense related to the current semi-annual ESPP offering period, which ends on August 31, 2017 , was $1.3 million and is expected to be recognized over five months. 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: Three Months ended March 31, 2017 2016 Stock option plans: Risk-free interest rate 2.04 % 1.38 % Expected life of options (in years) 6.08 6.08 Expected dividend yield — % — % Volatility 48 % 47 % Employee Stock Purchase Plan: Risk-free interest rate 0.69 % 0.36 % Expected life of options (in years) 0.50 0.50 Expected dividend yield — % — % Volatility 35 % 46 % Common Stock The following numbers of shares of common stock were reserved and available for future issuance at March 31, 2017 : Reserved Shares Options and awards outstanding under stock option plans 3,108,929 Shares available for future grant under the 2011 Plan 5,433,273 Shares available under the ESPP 1,683,080 Total 10,225,282 In February 2017 , 336,856 additional shares were reserved under the ESPP and 1,684,282 additional shares were reserved under the 2011 Plan , pursuant to the automatic increase provisions in each plan. Stock Repurchase Program In May 2014 , the Company’s board of directors approved a stock repurchase program under which the Company is authorized to repurchase up to $75.0 million of its common stock , which expires in May 2017 . All shares are retired upon repurchase. The Company did not repurchase any shares during the three months ended March 31, 2017 . As of March 31, 2017 , $42.8 million remained available for future repurchases under the program. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 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: Three Months ended March 31, 2017 2016 (in thousands) On-demand revenues $ 93,002 $ 73,099 On-premise revenues — 526 $ 93,002 $ 73,625 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 to its on-demand Encompass offering, and the Company does not expect to generate on-premise revenues in the future. |
Basis of Presentation and Sig16
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation [Policy Text Block] | Principles of Consolidation The condensed 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, Policy [Policy Text Block] | Use of Estimates The preparation of condensed 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 condensed consolidated financial statements and footnotes. |
Significant Accounting Policies [Text Block] | Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 of the Notes to Consolidated Financial Statements in its 2016 Form 10-K . There have been no significant changes to these policies during the three months ended March 31, 2017 except in relation to our adoption of ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting (“ASU 2016-09”) on January 1, 2017 where the Company now records excess tax benefits and tax deficiencies as income tax benefit or expense when stock awards vest or settle and the Company no longer classify the cash flow from excess tax benefits as a reduction from operating cash flows. |
Comprehensive Income [Policy Text Block] | 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 on marketable securities. Except for net realized gain on investments , which was not significant, there were no reclassifications out of accumulated other comprehensive income that affected net income during the three months ended March 31, 2017 and 2016 |
New Accounting Pronouncements, Policy [Policy Text Block] | 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. The effective date for public entities is 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 (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 project plan to finalize the evaluation and complete the implementation. The Company has preliminarily identified potential impacts to the timing of revenue recognition for certain revenue streams due to the removal of the current limitation on contingent revenue. The Company expects an impact to certain revenue streams due to the removal of the current limitation on contingent revenue, which may affect the timing of revenues being recognized for certain contracts. The Company has also preliminarily identified potential impacts to the costs to obtain contracts, which is primarily comprised of sales commissions and the related fringe benefits associated with non-cancelable contracts. The Company expects to capitalize certain costs that are expensed under the current standard and the Company expects an increase in the amortization period over which the capitalized costs will be recognized. The Company is evaluating the adoption method based on various factors including the significance of the impact of the new standard on the Company’s financial results and system capabilities. This evaluation is in process, and the adoption method has not been determined. 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 update 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 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 is currently evaluating early adoption of this standard, which could potentially impact the characterization of future transactions as either assets or businesses. New Standards Adopted 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 for 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 has adopted the standard as of January 1, 2017. Upon adoption, the Company recognized the previously unrecognized excess tax benefits using the modified retrospective transition method, which resulted in a cumulative-effect adjustment of $14.5 million to retained earnings as of the beginning of the period. The Company has elected to continue estimating forfeitures and has also elected to apply the change in presentation to the statements of cash flows retrospectively. As a result, the Company no longer classifies the excess tax benefits from employee stock plans as a reduction from operating cash flows. There were no excess tax benefits for the three months ended March 31, 2016. 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 has elected to early adopt the standard on January 1, 2017. The adoption did not have an impact to the Company’s consolidated financial statements. |
Net Income Per Share of Commo17
Net Income Per Share of Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Components of net income (loss) per share of common stock | The components of net income per share of common stock were as follows: Three Months ended March 31, 2017 2016 (in thousands, except share and per share amounts) Net income $ 9,599 $ 2,506 Basic shares: Weighted average common shares outstanding 33,702,109 29,471,214 Diluted shares: Weighted average shares used to compute basic net income per share 33,702,109 29,471,214 Effect of potentially dilutive securities: Employee stock options, RSUs, performance-vesting RSUs, Performance Awards and ESPP shares 1,907,350 1,609,100 Weighted average shares used to compute diluted net income per share 35,609,459 31,080,314 Net income per share: Basic $ 0.28 $ 0.09 Diluted $ 0.27 $ 0.08 |
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: Three Months ended March 31, 2017 2016 Employee stock options and awards 72,916 224,366 |
Financial Instruments and Fai18
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, 2017 December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total (in thousands) (in thousands) Cash equivalents: Money market funds $ 1,679 $ — $ 1,679 $ 2,733 $ — $ 2,733 Corporate notes and obligations — 5,118 5,118 — — — U.S. government and government agency obligations — 42,372 42,372 151,660 149,976 301,636 Investments: Certificates of deposit — 10,925 10,925 — 12,088 12,088 Corporate notes and obligations — 30,690 30,690 — 28,892 28,892 Municipal obligations — 11,841 11,841 — 11,361 11,361 U.S. government and government agency obligations 2,017 57,577 59,594 4,579 30,852 35,431 $ 3,696 $ 158,523 $ 162,219 $ 158,972 $ 233,169 $ 392,141 |
Schedule of Available-for-sale Securities Reconciliation | 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: March 31, 2017 December 31, 2016 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 $ 286,002 $ — $ — $ 286,002 $ 76,538 $ — $ — $ 76,538 Money market funds 1,434 — — 1,434 2,733 — — 2,733 Corporate notes and obligations 5,118 — — 5,118 — — — — U.S. government and government agency obligations 42,372 2 (2 ) 42,372 301,631 8 (3 ) 301,636 $ 334,926 $ 2 $ (2 ) $ 334,926 $ 380,902 $ 8 $ (3 ) $ 380,907 Investments: Corporate notes and obligations $ 30,756 $ 4 $ (70 ) $ 30,690 $ 28,978 $ 1 $ (87 ) $ 28,892 Certificates of deposit 10,923 4 (2 ) 10,925 12,094 13 (19 ) 12,088 Municipal obligations 11,850 10 (19 ) 11,841 11,422 1 (62 ) 11,361 U.S. government and government agency obligations 59,682 4 (92 ) 59,594 35,502 8 (79 ) 35,431 $ 113,211 $ 22 $ (183 ) $ 113,050 $ 87,996 $ 23 $ (247 ) $ 87,772 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 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 March 31, 2017 or December 31, 2016 . March 31, 2017 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 $ 26,977 $ (68 ) $ 679 $ (3 ) $ 27,656 $ (71 ) Certificates of deposit 4,378 (2 ) — — 4,378 (2 ) U.S. government, government agency, and municipal obligations 60,983 (112 ) 585 — 61,568 (112 ) $ 92,338 $ (182 ) $ 1,264 $ (3 ) $ 93,602 $ (185 ) 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 ) |
Summary of the maturities of the Company's investments | The following table summarizes the maturities of the Company’s investments at March 31, 2017 : Carrying or Fair Value (in thousands) Remainder of 2017 $ 43,644 2018 45,753 2019 22,728 2020 925 Total $ 113,050 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Statement of Financial Position [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net, consisted of the following: March 31, December 31, 2017 2016 (in thousands) Computer equipment and software (1) $ 128,672 $ 116,602 Furniture and fixtures 7,122 6,838 Leasehold improvements 18,532 18,532 Property and equipment 154,326 141,972 Accumulated depreciation and amortization (1) (56,331 ) (48,991 ) Net property and equipment 97,995 92,981 Internal-use software and other assets not placed in service 43,721 33,316 $ 141,716 $ 126,297 ________________ (1) Includes computer equipment and software under capital leases Computer equipment and software under capital leases, net, consisted of the following: March 31, December 31, 2017 2016 (in thousands) Computer equipment $ 8,715 $ 8,715 Software 1,517 1,517 Accumulated amortization (7,281 ) (6,522 ) Net computer equipment and software under capital leases $ 2,951 $ 3,710 |
Schedule of Accounts Payable and Accrued Liabilities | Accrued and other current liabilities consisted of the following: March 31, December 31, 2017 2016 (in thousands) Accrued payroll and related expenses $ 13,204 $ 31,848 Accrued commissions 1,165 1,832 Accrued royalties 1,649 1,395 Sales and other taxes 1,041 2,327 Current portion of leases payable 538 619 Other accrued expenses 2,262 1,788 $ 19,859 $ 39,809 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net, consisted of the following: March 31, 2017 Gross Carrying Accumulated Net Intangibles Weighted Average Remaining Useful Life (in thousands) (in years) Assets subject to amortization: Developed technology $ 11,535 $ (8,516 ) $ 3,019 2.5 Trade names 331 (331 ) — 0.0 Customer relationships 19,400 (10,484 ) 8,916 3.8 Order backlog 370 (133 ) 237 2.6 Total assets subject to amortization: 31,636 (19,464 ) 12,172 3.4 Assets not subject to amortization: Trade name 4,039 — 4,039 $ 35,675 $ (19,464 ) $ 16,211 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 |
Minimum future amortization expense for intangible assets | Future amortization expense for intangible assets at March 31, 2017 was as follows: Amortization (in thousands) Remainder of 2017 $ 3,216 2018 3,443 2019 3,166 2020 1,778 2021 314 2022 255 $ 12,172 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | Three Months ended March 31, 2017 2016 (dollars in thousands) Income tax provision (benefit) $ (4,593 ) $ 1,216 Effective tax rate (1) (91.7 )% 32.7 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments for Capital and Operating Leases | Future minimum lease payments under non-cancelable operating and capital leases at March 31, 2017 consisted of the following: Capital Leases Operating Leases (in thousands) Remainder of 2017 $ 516 $ 4,908 2018 87 10,122 2019 — 10,682 2020 — 10,839 2021 — 10,976 2022 — 45,483 Total minimum lease payments 603 $ 93,010 Less amount representing interest (10 ) Present value of minimum lease payments 593 Less current portion (538 ) Long-term portion of lease obligations $ 55 |
Equity and Stock Incentive Pl23
Equity and Stock Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation expense | Total stock-based compensation expense recognized consisted of: Three Months ended March 31, 2017 2016 (in thousands) Cost of revenues $ 1,444 $ 970 Sales and marketing 1,176 878 Research and development 1,861 1,504 General and administrative 3,370 3,338 $ 7,851 $ 6,690 |
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 January 1, 2017 1,885,332 $ 26.21 6.34 $ 108,356 Granted 6,601 94.66 Exercised (141,979 ) 21.19 Forfeited or expired (4,399 ) 40.66 Outstanding at March 31, 2017 1,745,555 $ 26.84 6.16 $ 128,181 Ending vested and expected to vest at March 31, 2017 1,731,290 $ 26.69 6.14 $ 127,395 Exercisable at March 31, 2017 1,351,100 $ 22.48 5.73 $ 105,102 |
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 January 1, 2017 1,025,115 $ 64.47 407,650 $ 46.77 Granted 89,356 94.66 61,806 94.66 Released (55,799 ) 49.20 (145,651 ) 39.53 Forfeited or expired (19,103 ) 70.10 — — Outstanding at March 31, 2017 1,039,569 $ 67.78 323,805 $ 59.17 Ending vested and expected to vest at March 31, 2017 939,912 323,805 |
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: Three Months ended March 31, 2017 2016 Stock option plans: Risk-free interest rate 2.04 % 1.38 % Expected life of options (in years) 6.08 6.08 Expected dividend yield — % — % Volatility 48 % 47 % Employee Stock Purchase Plan: Risk-free interest rate 0.69 % 0.36 % Expected life of options (in years) 0.50 0.50 Expected dividend yield — % — % Volatility 35 % 46 % |
Schedule of Shares of Common Stock Available For Future Issuance Under Stock Option Plans | The following numbers of shares of common stock were reserved and available for future issuance at March 31, 2017 : Reserved Shares Options and awards outstanding under stock option plans 3,108,929 Shares available for future grant under the 2011 Plan 5,433,273 Shares available under the ESPP 1,683,080 Total 10,225,282 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Supplemental disclosure of revenue by service type | Supplemental disclosure of revenues by type is as follows: Three Months ended March 31, 2017 2016 (in thousands) On-demand revenues $ 93,002 $ 73,099 On-premise revenues — 526 $ 93,002 $ 73,625 |
Basis of Presentation and Sig25
Basis of Presentation and Significant Accounting Policies (Details Textual) $ in Thousands | Dec. 31, 2016USD ($) |
ASU No. 2016-09 [Member] | Retained Earnings [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative-effect adjustment | $ 14,500 |
Net Income Per Share of Commo26
Net Income Per Share of Common Stock (Details Table) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Components of net income (loss) per share | ||
Net income | $ 9,599 | $ 2,506 |
Basic shares: | ||
Weighted average common shares outstanding | 33,702,109 | 29,471,214 |
Diluted shares: | ||
Weighted average common shares outstanding | 33,702,109 | 29,471,214 |
Effect of potentially dilutive securities: | ||
Employee stock options, RSUs, performance-vesting RSUs, Performance Awards and ESPP shares | 1,907,350 | 1,609,100 |
Weighted average shares used to compute diluted net income per share | 35,609,459 | 31,080,314 |
Net income (loss) per share: | ||
Basic | $ 0.28 | $ 0.09 |
Diluted | $ 0.27 | $ 0.08 |
Net Income Per Share of Commo27
Net Income Per Share of Common Stock (Details Table 1) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Employee Stock Options and Awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share amount | 72,916 | 224,366 |
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 | 71,939 | 13,776 |
Financial Instruments and Fai28
Financial Instruments and Fair Value Measurements (Fair Value Hierarchy) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | $ 162,219 | $ 392,141 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 2,017 | 4,579 |
Assets, fair value disclosure | 3,696 | 158,972 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 57,577 | 30,852 |
Assets, fair value disclosure | 158,523 | 233,169 |
Money market funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,679 | 2,733 |
Money market funds [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,679 | 2,733 |
Money market funds [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Certificates of deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 10,925 | 12,088 |
Certificates of deposit [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Certificates of deposit [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 10,925 | 12,088 |
Corporate notes and obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 5,118 | 0 |
Investments | 30,690 | 28,892 |
Corporate notes and obligations [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments | 0 | 0 |
Corporate notes and obligations [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 5,118 | 0 |
Investments | 30,690 | 28,892 |
Municipal obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 11,841 | 11,361 |
Municipal obligations [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 0 | 0 |
Municipal obligations [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 11,841 | 11,361 |
U.S. government and government agency obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 42,372 | 301,636 |
Investments | 59,594 | 35,431 |
U.S. government and government agency obligations [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 151,660 |
U.S. government and government agency obligations [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 42,372 | $ 149,976 |
Financial Instruments and Fai29
Financial Instruments and Fair Value Measurements (Carrying Amounts and Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents, carrying value | $ 334,926 | $ 380,907 | $ 28,540 | $ 34,396 |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||
Available-for-sale Securities, Amortized Cost | 113,211 | 87,996 | ||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain | 22 | 23 | ||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss | (183) | (247) | ||
Available-for-sale Securities | 113,050 | 87,772 | ||
Corporate notes and obligations [Member] | ||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||
Available-for-sale Securities, Amortized Cost | 30,756 | 28,978 | ||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain | 4 | 1 | ||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss | (70) | (87) | ||
Available-for-sale Securities | 30,690 | 28,892 | ||
Certificates of deposit [Member] | ||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||
Available-for-sale Securities, Amortized Cost | 10,923 | 12,094 | ||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain | 4 | 13 | ||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss | (2) | (19) | ||
Available-for-sale Securities | 10,925 | 12,088 | ||
Municipal obligations [Member] | ||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||
Available-for-sale Securities, Amortized Cost | 11,850 | 11,422 | ||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain | 10 | 1 | ||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss | (19) | (62) | ||
Available-for-sale Securities | 11,841 | 11,361 | ||
U.S. government and government agency obligations [Member] | ||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||
Available-for-sale Securities, Amortized Cost | 59,682 | 35,502 | ||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain | 4 | 8 | ||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss | (92) | (79) | ||
Available-for-sale Securities | 59,594 | 35,431 | ||
Cash [Member] | ||||
Cash and Cash Equivalents [Abstract] | ||||
Cash | 286,002 | 76,538 | ||
Cash Equivalents [Member] | ||||
Cash and Cash Equivalents [Abstract] | ||||
Money market funds | 1,434 | 2,733 | ||
Cash and cash equivalents, amortized cost | 334,926 | 380,902 | ||
Cash and cash equivalents, carrying value | 334,926 | 380,907 | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain | 2 | 8 | ||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss | (2) | (3) | ||
Cash Equivalents [Member] | Corporate notes and obligations [Member] | ||||
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents, amortized cost | 5,118 | |||
Cash equivalents, carrying value | 5,118 | |||
Cash Equivalents [Member] | U.S. government and government agency obligations [Member] | ||||
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents, amortized cost | 42,372 | 301,631 | ||
Cash equivalents, carrying value | 42,372 | 301,636 | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||
Available-For-Sale Securities, Accumulated Gross Unrealized Gain | 2 | 8 | ||
Available-For-Sale Securities, Accumulated Gross Unrealized Loss | $ (2) | $ (3) |
Financial Instruments and Fai30
Financial Instruments and Fair Value Measurements (Continuous Unrealized Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | $ 92,338 | $ 211,865 |
Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 182 | 250 |
Twelve Months or Longer, Fair Value | 1,264 | 385 |
Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3 | 0 |
Fair Value | 93,602 | 212,250 |
Continuous Unrealized Loss Position, Accumulated Loss | 185 | 250 |
Corporate notes and obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 26,977 | 26,076 |
Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 68 | 87 |
Twelve Months or Longer, Fair Value | 679 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3 | 0 |
Fair Value | 27,656 | 26,076 |
Continuous Unrealized Loss Position, Accumulated Loss | 71 | 87 |
Certificates of deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 4,378 | 5,651 |
Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2 | 19 |
Twelve Months or Longer, Fair Value | 0 | 0 |
Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Fair Value | 4,378 | 5,651 |
Continuous Unrealized Loss Position, Accumulated Loss | 2 | 19 |
U.S. government and government agency obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than Twelve Months, Fair Value | 60,983 | 180,138 |
Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 112 | 144 |
Twelve Months or Longer, Fair Value | 585 | 385 |
Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Fair Value | 61,568 | 180,523 |
Continuous Unrealized Loss Position, Accumulated Loss | $ 112 | $ 144 |
Financial Instruments and Fai31
Financial Instruments and Fair Value Measurements (Summary of Investment Maturities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Maturities of the Company's investments | ||
Available-for-sale Securities, Debt Maturities, Remainder of Fiscal Year, Fair Value | $ 43,644 | |
Available For Sale Securities, Debt Maturities, Next Fiscal Year, Fair Value | 45,753 | |
Available For Sale Securities, Debt Maturities, In Two Years, Fair Value | 22,728 | |
Available For Sale Securities, Debt Maturities, In Three Years, Fair Value | 925 | |
Total | $ 113,050 | $ 87,772 |
Financial Instruments and Fai32
Financial Instruments and Fair Value Measurements (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Transfers of financial instruments between fair value levels | $ 0 | $ 0 |
Interest and Dividend Income, Securities, Operating | $ 500,000 | $ 200,000 |
Balance Sheet Components (Prope
Balance Sheet Components (Property and Equipment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 154,326 | $ 141,972 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 56,331 | 48,991 | |
Depreciable Property, Plant Equipment | 97,995 | 92,981 | |
Internal-use Software and Other Assets Not Placed in Service | 43,721 | 33,316 | |
Property, Plant and Equipment, Net | 141,716 | 126,297 | |
Depreciation, Depletion and Amortization, Nonproduction | 7,339 | $ 3,954 | |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 2,951 | 3,710 | |
Capital Leases, Income Statement, Amortization Expense | 800 | $ 800 | |
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 128,672 | 116,602 | |
Capital Leased Assets, Gross | 8,715 | 8,715 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 7,122 | 6,838 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 18,532 | 18,532 | |
Computer Software, Intangible Asset [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capital Leased Assets, Gross | 1,517 | 1,517 | |
Computer Equipment And Computer Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 7,281 | $ 6,522 |
Balance Sheet Components (Accru
Balance Sheet Components (Accrued and Other Current Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accrued and Other Current Liabilities [Line Items] | ||
Employee-related Liabilities, Current | $ 13,204 | $ 31,848 |
Accrued Sales Commission, Current | 1,165 | 1,832 |
Accrued Royalties, Current | 1,649 | 1,395 |
Sales and Excise Tax Payable, Current | 1,041 | 2,327 |
Capital Lease Obligations, Current | 538 | 619 |
Other Accrued Liabilities, Current | 2,262 | 1,788 |
Accrued and other current liabilities | $ 19,859 | $ 39,809 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 74,547,000 | $ 74,547,000 |
Goodwill, change in carrying value | $ 0 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets (Intangible Assets Gross and Net Balances) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Other Intangible Net | ||
Gross Carrying Amount | $ 31,636 | $ 31,636 |
Accumulated Amortization | (19,464) | (18,386) |
Finite-Lived Intangible Assets, Net | 12,172 | 13,250 |
Intangible assets, gross (excluding goodwill) | 35,675 | 35,675 |
Intangible assets, net | $ 16,211 | $ 17,289 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 41 months 4 days | 43 months 17 days |
Trade Names [Member] | ||
Other Intangible Net | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 4,039 | $ 4,039 |
Developed technology [Member] | ||
Other Intangible Net | ||
Gross Carrying Amount | 11,535 | 11,535 |
Accumulated Amortization | (8,516) | (8,183) |
Finite-Lived Intangible Assets, Net | $ 3,019 | $ 3,352 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 29 months 29 days | 32 months 21 days |
Trade Names [Member] | ||
Other Intangible Net | ||
Gross Carrying Amount | $ 331 | $ 331 |
Accumulated Amortization | (331) | (331) |
Finite-Lived Intangible Assets, Net | $ 0 | $ 0 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 1 day | 1 day |
Customer Relationships and Contracts [Member] | ||
Other Intangible Net | ||
Gross Carrying Amount | $ 19,400 | $ 19,400 |
Accumulated Amortization | (10,484) | (9,762) |
Finite-Lived Intangible Assets, Net | $ 8,916 | $ 9,638 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 45 months 6 days | 47 months 18 days |
Order or Production Backlog [Member] | ||
Other Intangible Net | ||
Gross Carrying Amount | $ 370 | $ 370 |
Accumulated Amortization | (133) | (110) |
Finite-Lived Intangible Assets, Net | $ 237 | $ 260 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 31 months | 34 months |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets (Intangible Assets Future Amortization) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Minimum future amortization expense for intangible assets | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 3,216 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Fiscal Year | 3,443 | |
Finite-Lived Intangible Assets, Amortization Expense, in Two Years | 3,166 | |
Finite-Lived Intangible Assets, Amortization Expense, in Three Years | 1,778 | |
Finite-Lived Intangible Assets, Amortization Expense, in Four Years | 314 | |
Finite-Lived Intangible Assets, Amortization Expense, in Five Years | 255 | |
Finite-Lived Intangible Assets, Net | $ 12,172 | $ 13,250 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets (Details Textual) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)Facilities | Mar. 31, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Property Subject to or Available for Operating Lease, Number of Units | Facilities | 8 | |
Amortization of intangible assets | $ | $ 1,078 | $ 1,457 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 36.80% | 37.90% |
Income Tax Expense (Benefit) | $ (4,593) | $ 1,216 |
Annual effective tax rate | (91.70%) | 32.70% |
Federal statutory tax rate | 35.00% | 35.00% |
Excess Tax Benefit from Share-based Compensation, Financing Activities | $ 6,500 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 0 | $ 0 |
Commitments and Contingencies40
Commitments and Contingencies (Details Textual | Mar. 31, 2017Facilities |
Commitments and Contingencies Disclosure [Abstract] | |
Property Subject to or Available for Operating Lease, Number of Units | 8 |
Commitments and Contingencies41
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Capital Leases | ||
Remainder of 2017 | $ 516 | |
2,018 | 87 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
Total minimum lease payments | 603 | |
Less amount representing interest | (10) | |
Present value of minimum lease payments | 593 | |
Less current portion | (538) | $ (619) |
Long-term portion of lease obligations | 55 | $ 85 |
Operating Leases | ||
Remainder of 2017 | 4,908 | |
2,018 | 10,122 | |
2,019 | 10,682 | |
2,020 | 10,839 | |
2,021 | 10,976 | |
2,022 | 45,483 | |
Total minimum lease payments | $ 93,010 |
Equity and Stock Incentive Pl42
Equity and Stock Incentive Plans (Stock-Based Compensation Allocation) (Details Table 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation by financial statement line item | $ 7,851 | $ 6,690 |
Cost of Sales [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation by financial statement line item | 1,444 | 970 |
Selling and Marketing Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation by financial statement line item | 1,176 | 878 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation by financial statement line item | 1,861 | 1,504 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation by financial statement line item | $ 3,370 | $ 3,338 |
Equity and Stock Incentive Pl43
Equity and Stock Incentive Plans (Stock Option Activity) (Details Table 2) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at January 1, 2017, Shares | 1,885,332 | |
Options granted, Shares | 6,601 | |
Options exercised, Shares | (141,979) | |
Options forfeited or expired, Shares | (4,399) | |
Outstanding at March 31, 2017, Shares | 1,745,555 | 1,885,332 |
Ending vested and expected to vest, Number of Shares at End of Period | 1,731,290 | |
Stock option exercisable at End of Period, Shares, Ending Balance | 1,351,100 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding, beginning of period, weighted average exercise price | $ 26.21 | |
Options granted, weighted average exercise price | 94.66 | |
Options exercised, weighted average exercise price | 21.19 | |
Options forfeited or expired, weighted average exercise price | 40.66 | |
Outstanding, end of period, weighted average exercise price | 26.84 | $ 26.21 |
Ending vested and expected to vest, Weighted Average Exercise Price at End of Period | 26.69 | |
Stock option exercisable at End of Period, weighted average exercise price, Ending Balance | $ 22.48 | |
Weighted average remaining contractual term at End of Period | 6 years 58 days | 6 years 124 days |
Ending vested and expected to vest, Weighted Average Remaining Contractual Term at End of Period | 6 years 51 days | |
Stock option exercisable, weighted average remaining Contractual term, Ending balance | 5 years 267 days | |
Aggregate Intrinsic value at End of Period | $ 128,181 | $ 108,356 |
Ending vested and expected to vest, Aggregate Intrinsic Value at End of Period | 127,395 | |
Exercisable aggregate Intrinsic Value | $ 105,102 |
Equity and Stock Incentive Pl44
Equity and Stock Incentive Plans (RSU and Performance Award Activity) (Details Table 3) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding at January 1, 2017 | 1,025,115 |
Granted | 89,356 |
Released | (55,799) |
Forfeited or expired | 19,103 |
Outstanding at March 31, 2017 | 1,039,569 |
Weighted Average Grant Date Fair Value, beginning of period | $ / shares | $ 64.47 |
Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 94.66 |
Released in Period, Weighted Average Grant Date Fair Value | $ / shares | 49.20 |
Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | 70.10 |
Weighted Average Grant Date Fair Value, end of period | $ / shares | $ 67.78 |
Ending vested and expected to vest, Number of Shares at End of Period | 939,912 |
Performance Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding at January 1, 2017 | 407,650 |
Granted | 61,806 |
Released | (145,651) |
Forfeited or expired | 0 |
Outstanding at March 31, 2017 | 323,805 |
Weighted Average Grant Date Fair Value, beginning of period | $ / shares | $ 46.77 |
Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 94.66 |
Released in Period, Weighted Average Grant Date Fair Value | $ / shares | 39.53 |
Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | 0 |
Weighted Average Grant Date Fair Value, end of period | $ / shares | $ 59.17 |
Ending vested and expected to vest, Number of Shares at End of Period | 323,805 |
Equity and Stock Incentive Pl45
Equity and Stock Incentive Plans (Fair Value Assumptions) (Details Table 4) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock Option [Member] | ||
Schedule of Stock Options and Employee Stock Purchase Plan Valuation Assumptions | ||
Risk-free interest rate | 2.04% | 1.38% |
Expected Life of options (in years) | 6 years 29 days | 6 years 29 days |
Expected dividend yield | 0.00% | 0.00% |
Volatility | 48.00% | 47.00% |
Employee Stock Purchase Plan [Member] | ||
Schedule of Stock Options and Employee Stock Purchase Plan Valuation Assumptions | ||
Risk-free interest rate | 0.69% | 0.36% |
Expected Life of options (in years) | 6 months | 6 months |
Expected dividend yield | 0.00% | 0.00% |
Volatility | 35.00% | 46.00% |
Equity and Stock Incentive Pl46
Equity and Stock Incentive Plans (Reserved Shares) (Details Table 5) | Mar. 31, 2017shares |
Class of Stock [Line Items] | |
Reserved Shares | 10,225,282 |
Options and Awards Outstanding [Member] | |
Class of Stock [Line Items] | |
Reserved Shares | 3,108,929 |
Shares Available for Future Grant [Member] | |
Class of Stock [Line Items] | |
Reserved Shares | 5,433,273 |
Shares Available Under Employee Stock Purchase Plan [Member] | |
Class of Stock [Line Items] | |
Reserved Shares | 1,683,080 |
Equity and Stock Incentive Pl47
Equity and Stock Incentive Plans (Details Textual) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Feb. 28, 2017 | Dec. 31, 2016 | May 01, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 75,000,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 42,800,000 | $ 42,800,000 | |||
Employee Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual Automatic Increase in Shares Reserved for Issuance, Shares | 336,856 | ||||
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 | 6,601 | ||||
Share Price | $ 100.27 | ||||
Unrecognized Compensation Cost Related to unvested Stock option | $ 7,400,000 | ||||
Expected to be recognized over a weighted average period | 1 year 219 days | ||||
Annual Automatic Increase in Shares Reserved for Issuance, Shares | 1,684,282 | ||||
RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 5,300,000 | $ 2,600,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 2,700,000 | 1,100,000 | |||
Performance Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | 13,700,000 | 9,300,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 5,800,000 | $ 3,500,000 | |||
Restricted Stock Units and Performance Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized Compensation Cost Related to unvested Stock option | $ 60,600,000 | ||||
Expected to be recognized over a weighted average period | 2 years 161 days | ||||
2009 Plan [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 | 0 | ||||
Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares purchased under ESPP | 52,619 | 47,819 | |||
Purchase price of ESPP shares | $ 4,300,000 | $ 2,900,000 | |||
Unrecognized compensation cost related to employee stock purchase plan | $ 1,300,000 | ||||
Expected recognized period under employee stock purchase plan | 5 months |
Segment Information (Details Ta
Segment Information (Details Table) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information Revenue | ||
Revenues | $ 93,002 | $ 73,625 |
On Demand Revenues [Member] | ||
Segment Reporting Information Revenue | ||
Revenues | 93,002 | 73,099 |
On Premise Revenues [Member] | ||
Segment Reporting Information Revenue | ||
Revenues | $ 0 | $ 526 |