Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 04, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'CVT | ' |
Entity Registrant Name | 'CVENT INC | ' |
Entity Central Index Key | '0001122897 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 41,326,256 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $164,001 | $146,407 |
Restricted cash | 412 | 664 |
Short-term investments | 18,684 | 11,359 |
Accounts receivable, net of reserve of $522 and $731, respectively | 21,701 | 33,199 |
Prepaid expense and other current assets | 10,005 | 7,894 |
Deferred tax assets | 3,915 | 3,060 |
Total current assets | 218,718 | 202,583 |
Property and equipment, net | 20,328 | 7,906 |
Capitalized software development costs, net | 15,947 | 9,264 |
Intangible assets, net | 4,305 | 3,123 |
Goodwill | 14,589 | 12,703 |
Other assets, non-current | 4,386 | 257 |
Total assets | 278,273 | 235,836 |
Current liabilities: | ' | ' |
Accounts payable | 3,284 | 5,388 |
Accrued expenses and other current liabilities | 21,117 | 18,477 |
Deferred revenue | 61,103 | 65,203 |
Total current liabilities | 85,504 | 89,068 |
Deferred tax liabilities, non-current | 7,212 | 3,323 |
Deferred rent, non-current | 8,841 | 568 |
Other liabilities, non-current | 2,138 | 839 |
Total liabilities | 103,695 | 93,798 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, $0.001 par value, 100,000,000 shares authorized at September 30, 2014 and December 31, 2013; and zero issued and outstanding at September 30, 2014 and December 31, 2013 | ' | ' |
Common stock, $0.001 par value; 1,000,000,000 shares authorized at September 30, 2014 and December 31, 2013; 41,655,709 and 40,409,791 shares issued and 41,135,495 and 39,889,577 outstanding at September 30, 2014 and December 31, 2013, respectively | 42 | 40 |
Treasury stock | -3,966 | -3,966 |
Additional paid-in capital | 197,783 | 168,949 |
Accumulated deficit | -19,281 | -22,985 |
Total stockholders' equity | 174,578 | 142,038 |
Total liabilities and stockholders' equity | $278,273 | $235,836 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, reserve | $522 | $731 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 41,655,709 | 40,409,791 |
Common stock, shares outstanding | 41,135,495 | 39,889,577 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Income Statement [Abstract] | ' | ' | ' | ' | ||||
Revenue | $37,386 | $29,145 | $102,920 | $80,440 | ||||
Cost of revenue | 11,208 | [1] | 8,412 | [1] | 29,455 | [1] | 21,588 | [1] |
Gross profit | 26,178 | 20,733 | 73,465 | 58,852 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Sales and marketing | 14,571 | [1] | 11,552 | [1] | 44,215 | [1] | 35,202 | [1] |
Research and development | 3,875 | [1] | 2,813 | [1] | 10,348 | [1] | 8,105 | [1] |
General and administrative | 6,446 | [1] | 6,092 | [1] | 16,096 | [1] | 16,891 | [1] |
Total operating expenses | 24,892 | 20,457 | 70,659 | 60,198 | ||||
Income (loss) from operations | 1,286 | 276 | 2,806 | -1,346 | ||||
Interest income | 450 | 295 | 1,091 | 677 | ||||
Other expense | -434 | ' | -434 | ' | ||||
Income (loss) from operations before income taxes | 1,302 | 571 | 3,463 | -669 | ||||
Provision for (benefit from) income taxes | 231 | 1,400 | -241 | 2,136 | ||||
Net income (loss) | $1,071 | ($829) | $3,704 | ($2,805) | ||||
Net income (loss) per common share: | ' | ' | ' | ' | ||||
Basic | $0.03 | ($0.03) | $0.09 | ($0.14) | ||||
Diluted | $0.02 | ($0.03) | $0.09 | ($0.14) | ||||
Weighted average common shares outstanding-basic | 41,103,502 | 29,700,211 | 40,910,381 | 20,336,459 | ||||
Weighted average common shares outstanding-diluted | 43,151,239 | 29,700,211 | 43,174,201 | 20,336,459 | ||||
[1] | Stock-based compensation expense included in the above: Cost of revenue $ 213 $ 353 $ 552 $ 886 Sales and marketing 415 393 1,117 2,092 Research and development 276 158 731 553 General and administrative 226 67 704 689 Total $ 1,130 $ 971 $ 3,104 $ 4,220 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Stock-based compensation expense included in the above: | ' | ' | ' | ' |
Stock-based compensation expense | $1,130 | $971 | $3,104 | $4,220 |
Cost of Revenue [Member] | ' | ' | ' | ' |
Stock-based compensation expense included in the above: | ' | ' | ' | ' |
Stock-based compensation expense | 213 | 353 | 552 | 886 |
Sales and Marketing [Member] | ' | ' | ' | ' |
Stock-based compensation expense included in the above: | ' | ' | ' | ' |
Stock-based compensation expense | 415 | 393 | 1,117 | 2,092 |
Research and Development [Member] | ' | ' | ' | ' |
Stock-based compensation expense included in the above: | ' | ' | ' | ' |
Stock-based compensation expense | 276 | 158 | 731 | 553 |
General and Administrative [Member] | ' | ' | ' | ' |
Stock-based compensation expense included in the above: | ' | ' | ' | ' |
Stock-based compensation expense | $226 | $67 | $704 | $689 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities: | ' | ' |
Net income (loss) | $3,704 | ($2,805) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 7,175 | 5,782 |
Loss on asset disposal | 434 | ' |
Foreign currency transaction (gain) loss | -12 | 568 |
Stock-based compensation expense | 3,104 | 4,220 |
Deferred taxes | -944 | ' |
Change in operating assets and liabilities: | ' | ' |
Accounts receivable, net | 12,643 | 13,626 |
Prepaid expenses and other assets | -2,256 | -4,744 |
Accounts payable, accrued expenses and other liabilities | 8,406 | 5,051 |
Deferred revenue | -4,100 | -2,800 |
Net cash provided by operating activities | 28,154 | 18,898 |
Investing activities: | ' | ' |
Purchase of property and equipment and capitalized software development costs | -24,884 | -7,761 |
Net purchases of short-term investments | -7,325 | -3,967 |
Acquisition and acquisition-related consideration payments | -4,121 | -90 |
Restricted cash | 252 | -196 |
Net cash used in investing activities | -36,078 | -12,014 |
Financing activities: | ' | ' |
Proceeds from exercise of stock options and warrants | 660 | 502 |
Repurchase of warrants | ' | -1,275 |
Proceeds from initial public offering, net of expenses | ' | 122,131 |
Proceeds from follow-on public offering, net of expenses | 24,846 | ' |
Net cash provided by financing activities | 25,506 | 121,358 |
Effect of exchange rate changes on cash and cash equivalents | 12 | -568 |
Increase in cash and cash equivalents | 17,594 | 127,674 |
Cash and cash equivalents, beginning of period | 146,407 | 16,850 |
Cash and cash equivalents, end of period | 164,001 | 144,524 |
Supplemental cash flow information: | ' | ' |
Income taxes paid | 1,015 | 3,062 |
Supplemental disclosure of noncash investing activities: | ' | ' |
Outstanding payments for purchase of property and equipment in accounts payable at period end | $1,368 | ' |
Description_of_Business
Description of Business | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Description of Business | ' |
1. Description of Business | |
Cvent, Inc. (the “Company”) provides a cloud-based enterprise event management platform with solutions for both sides of the events and meetings value chain: (i) event and meeting planners and (ii) hotels and venues. The Company’s integrated, cloud-based solution addresses the entire event lifecycle by allowing event and meeting planners to organize, market and manage meetings, conferences, tradeshows and other events. The Company’s online marketplace connects event planners and venues through its vertical search engine that accesses its proprietary database of detailed venue information. The combination of these solutions creates an integrated platform that allows the Company to generate revenue from both sides of the events and meetings value chain. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
(a) Basis of Presentation | |
The financial information presented in the accompanying unaudited consolidated financial statements as of September 30, 2014, and for the three and nine months ended September 30, 2014 and 2013 has been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (SEC) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of the financial position as of September 30, 2014, the results of operations for the three and nine months ended September 30, 2014 and 2013, and cash flows for the nine months ended September 30, 2014 and 2013. These unaudited consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto. | |
(b) Reclassification | |
Certain items in the prior period financial statements have been reclassified for comparative purposes to conform to the current period presentation. | |
(c) Use of Estimates | |
The preparation of the 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions made by management include estimated useful lives of property and equipment and capitalized software development, goodwill and intangibles, application of appropriate revenue recognition standards, allowances for doubtful accounts, valuation of deferred tax assets, stock-based compensation, income taxes and legal and other contingencies. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. Actual results could differ from those estimates and assumptions. | |
(d) Cash and Cash Equivalents | |
Highly liquid financial instruments purchased with original maturities of 90 days or less at the date of purchase are reported as cash equivalents. Cash equivalents are recorded at cost, which approximates fair value. | |
Included in cash and cash equivalents are funds representing amounts reserved for the face value of registration fees or tickets sold on behalf of customers. While these cash accounts are not restricted as to their use, a liability for amounts due to customers under these arrangements has been recorded in accounts payable in the accompanying consolidated balance sheets. The Company had amounts due to customers of $3,773 and $2,560 included within cash and cash equivalents as of September 30, 2014 and December 31, 2013, respectively. | |
(e) Revenue Recognition | |
The Company derives revenue from two primary sources: platform subscription-based solutions and marketing solutions. These services are generally provided under annual or multi-year contracts that are generally only cancellable for cause. Revenue is generally recognized on a straight-line basis over the life of the contract. The Company recognizes revenue when all of the following conditions are met: | |
(i) persuasive evidence exists of an arrangement with the customer reflecting the terms and conditions under which the solutions or services will be provided; | |
(ii) delivery to customers has occurred or services have been rendered; | |
(iii) the fee is fixed or determinable; and | |
(iv) collection of the fees is reasonably assured. The Company considers a signed agreement or other similar documentation to be persuasive evidence of an arrangement. Collectability is assessed based on a number of factors, including transaction history and the creditworthiness of a customer. If it is determined that collection is not reasonably assured, revenue is not recognized until collection becomes reasonably assured, which is generally upon receipt of cash. | |
The Company adopted the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements (EITF Issue No. 08-1, Revenue Arrangements with Multiple Deliverables) with respect to its multiple-element arrangements entered into or significantly modified on or after January 1, 2011. ASU 2009-13 amends ASC 605-25 to eliminate the requirement that all undelivered elements have vendor-specific objective evidence (VSOE) or third-party evidence (TPE) of selling price before an entity can recognize the portion of an overall arrangement fee that is attributable to items that have already been delivered. The adoption of ASU 2009-13 did not have a material impact on the Company’s results of operations. | |
Platform Subscription Revenue | |
Event Management | |
The Company generates the majority of its revenue through software-as-a-service (SaaS) subscriptions to the event management platform, pricing for which is subject to the features and functionality selected. No features or functionality within the subscription-based services have stand-alone value from one another and, therefore, the entire subscription fee is recognized on a straight-line basis over the term of the subscription arrangement. | |
SaaS subscriptions may include functionality that enables customers to manage the registration of participants attending the customer’s event or events. In some cases, the negotiated fee for the subscription is based on a maximum number of event registrations permitted over the subscription term. At any time during the subscription term, customers may elect to purchase blocks of additional registrations, which are referred to as subscription up-sells. The fees associated with the up-sells are added to the original subscription fee, and the revenue is recognized over the remaining subscription period. No portion of the subscription fee is refundable regardless of the actual number of registrations that occur. | |
Mobile Apps | |
Subscription-based solutions also include the sale of mobile event apps. The revenue for mobile event apps solutions is generally recognized on a straight-line basis over the life of the contract. A customer may use a singular mobile event app for any number of events. At any time during the subscription term, customers may elect to purchase additional mobile event apps, which are referred to as mobile up-sells. The fees associated with the up-sells are added to the original subscription fee, and the revenue is recognized over the remaining subscription period. No portion of the subscription fee is refundable. | |
Ticketing | |
Ticketing revenue is generated primarily through convenience and order processing fees charged to the end user purchasing the ticket for an event and is recorded net of the face value of the ticket. Revenue for these ticket fees collected in advance of the event is recorded as deferred revenue until the event occurs. If an event is cancelled, the customer receives a full refund of the ticket price and fees paid. | |
Other subscription-based solutions include the sale of survey solutions, which are contracted though annual or multiyear arrangements. | |
Subscription agreements do not provide customers with the right to take possession of the underlying software at any time. | |
Marketing Solutions Revenue | |
Marketing solutions revenue is generated through the delivery of various forms of advertising sold through annual or multi-year advertising contracts. Such solutions include prominent display of a customer’s venue within the Cvent Supplier Network, the Cvent Destination Guide or in various electronic newsletters. Pricing for the advertisements is based on the targeted geography, number of advertisements and prominence of the ad placement. | |
The Company enters into arrangements with multiple deliverables that generally include various marketing solutions that may be sold individually or bundled together and delivered over various periods of time. In such situations, the Company applies the provisions of Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, No. 605-25, Revenue Recognition – Multiple Element Arrangements to account for the various elements within the marketing solution agreements delivered over the platform. Under such guidance, in order to treat deliverables in a multiple-deliverable arrangement as separate units of accounting, the deliverables must have standalone value upon delivery. If the deliverables have standalone value upon delivery, the Company accounts for each deliverable separately and revenue is recognized ratably over the contractual period that the related advertising deliverable is provided. Annual marketing solutions on the Cvent Supplier Network are often sold separately, and, as such, all have standalone value. | |
Certain one-time marketing solutions, which can run for a month, several months, or a year, are primarily sold in a package. In determining whether the marketing solutions sold in packages have standalone value, the Company considers the availability of the services from other vendors, the nature of the solutions, and the contractual dependence of the solutions to the rest of the package. Based on these considerations, the Company has determined the estimated selling price for each marketing solution sold in a package. | |
Revenue arrangements with multiple deliverables are divided into separate units of accounting and the arrangement consideration is allocated to all deliverables based on the relative selling price method. In such circumstances, the Company uses the selling price hierarchy of: (i) VSOE, if available, (ii) third-party evidence of selling price, or TPE, and (iii) best estimate of selling price. VSOE is limited to the price charged when the same element is sold separately by the Company. Due to the unique nature of some multiple deliverable revenue arrangements, the Company may not be able to establish selling prices based on historical stand-alone sales using VSOE or TPE; therefore the Company may use its best estimate to establish selling prices for these arrangements. The Company establishes the best estimates within a range of selling prices considering multiple factors including, but not limited to, factors such as size of transaction, customer demand and price lists. | |
(f) Deferred Revenue | |
Deferred revenue consists of contractual billings or payments received in advance of revenue recognition from platform subscription services or marketing solutions that are subsequently recognized when the revenue recognition criteria are met. The Company generally invoices customers in annual or quarterly installments. | |
(g) Business Combinations | |
The Company is required to allocate the purchase price of acquired companies to the identifiable tangible and intangible assets acquired and liabilities assumed at the acquisition date based upon their estimated fair values. | |
Goodwill as of the acquisition date represents the excess of the purchase consideration of an acquired business over the fair value of the underlying net tangible and intangible assets acquired and liabilities assumed. This allocation and valuation require management to make significant estimates and assumptions, especially with respect to long-lived and intangible assets. | |
Critical estimates in valuing intangible assets include but are not limited to estimates about: future expected cash flows from customer contracts, customer lists, distribution agreements, proprietary technology and non-competition agreements; the acquired company’s brand awareness and market position, assumptions about the period of time the brand will continue to be used in our product portfolio; as well as expected costs to develop the in-process research and development into commercially viable products and estimated cash flows from the projects when completed, and discount rates. The Company’s estimates of fair value are based upon assumptions the Company believe to be reasonable, but which are inherently uncertain and unpredictable. Assumptions may be incomplete or inaccurate, and unanticipated events and circumstances may occur. | |
In addition, uncertain tax positions and tax-related valuation allowances assumed in connection with a business combination are initially estimated as of the acquisition date. The Company continues to evaluate these items quarterly and records any adjustments to the preliminary estimates to goodwill provided that the Company is within the measurement period. Subsequent to the measurement period, changes to these uncertain tax positions and tax related valuation allowances will affect the Company’s provision for income taxes in the consolidated statements of operations in the current period. | |
Other estimates associated with the accounting for these acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed. | |
(h) Goodwill | |
Goodwill represents the excess of: (i) the aggregate of the fair value of consideration transferred in a business combination, over (ii) the fair value of assets acquired, net of liabilities assumed. Goodwill is not amortized, but is subject to annual impairment tests. The goodwill impairment test is a two-step test. Under the first step, the fair value of the reporting unit is compared with its carrying value, including goodwill. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is estimated using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying value, step two is not performed. | |
The Company performs its annual impairment review of goodwill on November 30 and when a triggering event occurs between annual impairment tests. There were no triggering events or indications of impairment as of September 30, 2014. | |
(i) Capitalized Software Development Costs | |
Costs to develop internal use software are capitalized and recorded as capitalized software in accordance with the provisions of FASB ASC Subtopic 350-40, Intangibles-Goodwill and Other Subtopic 40 Internal-Use Software on the balance sheet. These costs are amortized on a project-by-project basis using the straight-line method over the estimated economic life of the application, which is generally three years, beginning when the asset is substantially ready for use. Costs incurred during the preliminary development stage, as well as maintenance and training costs are expensed as incurred. | |
(j) Deferred Tax Assets and Liabilities | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. To the extent that it is not considered to be more likely than not that a deferred tax asset will be realized, a valuation allowance is established. The Company applies the provisions of FASB interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48) (included in ASC Subtopic 740-10, Income Taxes—Overall), which provides guidance related to the accounting for uncertain tax positions. In accordance with FIN 48, the Company only recognizes the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained upon examination. | |
(k) Stock-Based Compensation | |
The Company accounts for its employee stock-based compensation awards in accordance with FASB ASC Topic 718, Compensation—Stock Compensation. ASC Topic 718 requires that all employee stock-based compensation is recognized as a cost in the financial statements and that for equity-classified awards such cost is measured at the grant date fair value of the award. The Company estimates grant date fair value using the Black-Scholes option-pricing model. | |
Determining the fair value of stock-based compensation awards under this model requires judgment, including an estimation of the value per share of the Company’s common stock prior to the Company’s initial public offering (IPO) in August 2013, estimated volatility, risk free rate, expected term and estimated dividend yield. The assumptions used in calculating the fair value of stock-based | |
compensation awards represent the Company’s best estimates, based on management judgment. The estimate of the value per share of the Company’s common stock used in the option-pricing model prior to the Company’s IPO was based on the contemporaneous valuations performed with the assistance of an unrelated third-party valuation specialist and management’s analysis of market transactions in proximity to the valuation dates. The estimated dividend yield is zero since the Company has not issued dividends to date and does not anticipate issuing dividends. The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero coupon issues with an equivalent remaining term. Due to its limited trading history, the Company estimates volatility for option grants by evaluating the average historical volatility of a peer group of similar public companies. The expected term of the Company’s option plans represent the period that its stock-based awards are expected to be outstanding. For purposes of determining the expected term, the Company applies the simplified approach, in which the expected term of an award is presumed to be the mid-point between the vesting date and the expiration date of the award. Awards generally vest over a service period of four years, with a maximum contractual term of ten years. | |
Pursuant to FASB ASC Subtopic 718-10-35, Stock Compensation, the initial determination of compensation cost is based on the number of stock options granted amortized over the vesting period. The value of the awards granted is discounted by the forfeiture rate equal to the value expected to vest. The forfeiture rate is derived by taking into consideration historical employee turnover rates as well as expectations for the future. Expense is recognized using the straight-line attribution method. | |
(l) Foreign Currency | |
The Company’s foreign subsidiary in India designates the U.S. dollar as the functional currency. For the subsidiary, assets and liabilities denominated in foreign currency are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and historical exchange rates for nonmonetary assets and liabilities. Foreign currency gains and losses associated with remeasurement are included in general and administrative expense in the consolidated statements of operations. | |
Foreign currency gains (losses) associated with transactions and remeasurement were $(610) and $(845) for the three months ended September 30, 2014 and 2013, respectively, and $(125) and $(2,009) for the nine months ended September 30, 2014 and 2013, respectively. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
New Accounting Pronouncements | ' |
3. New Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued joint guidance to improve and converge the financial reporting requirements for revenue from contracts with customers. ASU 2014-9, Revenue from Contracts with Customers, prescribes a five-step model for revenue recognition that will replace most existing revenue recognition guidance under U.S. GAAP. The new standard supersedes nearly all existing revenue recognition guidance under U.S. GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 allows for either full retrospective or modified retrospective adoption and will become effective for the Company in the first quarter of 2017. Early adoption is prohibited. Management is currently evaluating which adoption method it will use and assessing the effect the adoption of this standard will have on the consolidated financial statements. |
FollowOn_Public_Offering
Follow-On Public Offering | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
Follow-On Public Offering | ' |
4. Follow-On Public Offering | |
On January 16, 2014, the Company completed a follow-on public offering of 6,072,000 shares of its common stock. The Company sold 747,500 shares of its common stock, and the selling shareholders sold 5,324,500 shares in the offering, including the underwriters’ over-allotment, at a price to the public of $35.50 per share. The offering closed on January 23, 2014, and the Company received net proceeds of $24.8 million after deducting the underwriters discount and offering expenses, which have been included in additional paid-in-capital in the accompanying unaudited balance sheet as of September 30, 2014. |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income Per Share | ' | ||||||||||||||||
5. Net Income Per Share | |||||||||||||||||
The Company calculates basic net income per share of common stock by dividing net income attributable to the common stockholders for the period by the weighted-average number of shares of common stock and participating convertible preferred stock outstanding during the period. The Company calculates diluted net income per share by dividing net income attributable to the Company for the period by the weighted-average number of shares of common stock and convertible preferred stock outstanding during the period, plus any dilutive effect from share-based equity awards and warrants during the period, using the treasury stock method. Included in the diluted weighted average shares outstanding is the effect of non-vested early option exercises of 188,875 shares, which are the remaining non-vested shares of the 573,941 shares subject to early option exercises on June 13, 2012. These shares are removed from the basic earnings per share calculation as the shares can be repurchased by the Company prior to the vesting date should employment of the early exercised option shareholders be terminated. The computation of basic and diluted net income per share is as follows: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income (loss) | $ | 1,071 | $ | (829 | ) | $ | 3,704 | $ | (2,805 | ) | |||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Weighted average common shares outstanding | 41,103,502 | 29,700,211 | 40,910,381 | 20,336,459 | |||||||||||||
Effect of convertible preferred stock | — | — | — | — | |||||||||||||
Weighted average shares outstanding for basic earnings per share | 41,103,502 | 29,700,211 | 40,910,381 | 20,336,459 | |||||||||||||
Effect of share-based equity award plan | 2,047,737 | — | 2,263,820 | — | |||||||||||||
Effect of warrants | — | — | — | — | |||||||||||||
Weighted average shares outstanding for diluted earnings per share | 43,151,239 | 29,700,211 | 43,174,201 | 20,336,459 | |||||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | 0.03 | $ | (0.03 | ) | $ | 0.09 | $ | (0.14 | ) | |||||||
Diluted | $ | 0.02 | $ | (0.03 | ) | $ | 0.09 | $ | (0.14 | ) | |||||||
The weighted average number of shares outstanding used in the computation of basic and diluted loss per share for the three and nine months ended September 30, 2013 do not include the effect of 7,384,059 and 14,037,134 shares of convertible preferred stock that converted into common stock upon the Company’s Initial Public Offering effective August 5, 2013, as these shares were not obligated to participate in losses. The weighted average number of shares outstanding used in the computation of diluted loss per share for the three and nine months ended September 30, 2013 do not include the effect of 2,379,051 and 1,867,295 stock options and warrants, respectively, as the effect would have been anti-dilutive. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
6. Income Taxes | |
The Company generally estimates its annual effective tax rate for the full fiscal year and applies that rate to its income from continuing operations before income taxes in determining its provision for income taxes for the respective periods. The Company generally records discrete items in each respective period as appropriate. However, if a company is unable to reliably estimate its annual effective tax rate, then the actual effective tax rate for the year-to-date period may be the best estimate for the annual effective tax rate. For the three and nine months ended September 30, 2014, the Company determined that the annual rate method would not provide for a reliable estimate due to volatility in the forecasting process. As a result, the Company has recorded the provision for income taxes for the three and nine months ended September 30, 2014 using the actual effective rate for the three and nine months ended September 30, 2014 (the “cut-off” method). The effective tax rate for the three and nine months ended September 30, 2014 was calculated based on an actual effective tax rate plus discrete items, as described above. | |
The Company’s consolidated effective tax rate for the three and nine months ended September 30, 2014 was 17.7% and (7.0%), respectively. The Company’s consolidated effective tax rate for the three and nine months ended September 30, 2013 was 245.2% and (319.3%) respectively. The decrease in the rate for the three month periods and the increase for the nine month periods is primarily due to additional deductions related to stock based compensation as well as the ratio of book expenses not deductible for income tax purposes compared to pre-tax book income (loss). | |
The Company’s estimated effective tax rate is subject to fluctuation based upon the level and mix of earnings and losses by tax jurisdiction, and the relative impact of permanent book to tax differences (e.g., non-deductible expenses). As a result of these factors, and due to potential changes in the Company’s period to period results, fluctuations in the Company’s effective tax rate and respective tax provisions or benefits may occur. The Company is subject to U.S. federal income tax, various state income taxes and various foreign income taxes. The effective income tax rate for the three and nine months ended September 30, 2014 and 2013 reflects various foreign income taxes. | |
In assessing the Company’s ability to realize the future benefit associated with its deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets may not be realized. The ultimate realization is dependent on the generation of taxable income within the periods that those temporary differences become deductible. The Company has not recorded a valuation allowance for its deferred tax assets due to management’s assessment that it is more-likely-than-not that the Company will be able to realize these tax assets. | |
The Company permanently reinvests cumulative undistributed earnings of its non-U.S. subsidiaries in non-U.S. operations. U.S. federal income taxes have not been provided for in relation to undistributed earnings to the extent that they are permanently reinvested in the Company’s non-U.S. operations. It is not practical at this time to determine the income tax liability that would result upon repatriation to the U.S. As of September 30, 2014, the undistributed earnings of the Company’s foreign affiliates was $6,994. | |
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. |
StockBased_Compensation_Plan
Stock-Based Compensation Plan | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation Plan | ' | ||||||||||||||||
7. Stock-Based Compensation Plan | |||||||||||||||||
Stock Options | |||||||||||||||||
Stock options are granted with an exercise price equal to the stock’s fair value at the date of grant. The awards have various terms and vest at various times from the date of grant, with most options vesting in tranches generally over four years. All options expire 10 years after the date of grant. At September 30, 2014, there were 6,576,762 shares available for the Company to grant under the 2013 Equity Incentive Plan. | |||||||||||||||||
The grant-date fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. The weighted average assumptions for 2014 and 2013 grants are provided in the table below. Because the Company’s shares were not publicly traded prior to August 9, 2013 and its shares were rarely traded privately, and due to the limited trading history since August 9, 2013, expected volatility is estimated based on the average historical volatility of similar entities with publicly traded shares. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve at the date of grant. Expense is recognized using the straight-line attribution method. | |||||||||||||||||
The following is a summary of the weighted average assumptions used in the valuation of stock-based awards under the Black-Scholes model: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Volatility | 48.17 | % | 48.67 | % | |||||||||||||
Expected term (years) | 6.61 | 6.65 | |||||||||||||||
Risk-free interest rate | 2.15 | % | 1.79 | % | |||||||||||||
Stock option activity during the periods indicated is as follows: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
shares subject to | average | average | intrinsic | ||||||||||||||
options | exercise | remaining | value | ||||||||||||||
price per share | contractual | ||||||||||||||||
term (years) | |||||||||||||||||
Balance at December 31, 2013 | 3,631,272 | $ | 5.78 | 7.85 | $ | 111,150 | |||||||||||
Granted | 437,045 | 31.56 | |||||||||||||||
Exercised | (492,863 | ) | 1.8 | ||||||||||||||
Forfeited | (142,302 | ) | 17.28 | ||||||||||||||
Expired | (283 | ) | 1.22 | ||||||||||||||
Balance at September 30, 2014 | 3,432,869 | $ | 9.16 | 7.25 | $ | 55,649 | |||||||||||
Exercisable at September 30, 2014 | 1,180,229 | $ | 2.15 | 6.46 | $ | 27,411 | |||||||||||
The weighted average grant date fair value of options granted during the nine months ended September 30, 2014 was $15.78. The total intrinsic value of options exercised during the nine months ended September 30, 2014 was $14,409. | |||||||||||||||||
The Company recorded stock-based compensation expense related to options of $976 and $814 during the three months ended September 30, 2014 and 2013 and $2,701 and $2,097 during the nine months ended September 30, 2014 and 2013. At September 30, 2014, there was $7,335 of total unrecognized compensation cost related to unvested stock options granted under the Plan, which is expected to be recognized over a weighted average period of 2.45 years. | |||||||||||||||||
On June 13, 2012, stock options for the purchase of 573,941 shares were exercised prior to vesting pursuant to an early exercise feature. The proceeds from the transaction were recorded as a liability within accrued and other current liabilities and other liabilities, non-current. During the nine months ended September 30, 2014, 129,494 of these options vested and the $226 liability related to the vesting options was reclassified to stockholders’ equity. The remaining 188,875 options and $340 liability will be reclassified to stockholders’ equity as the Company’s repurchase rights lapse as the options vest. | |||||||||||||||||
Common Stock Warrants | |||||||||||||||||
In 2011, the Company issued warrants to a non-employee to purchase 125,000 shares of common stock, in connection with a profit-sharing agreement. The warrants have an exercise price of $1.80, vest annually over a four-year period, and expire on December 31, 2017. On June 28, 2013 the Company repurchased these warrants for $1,275, which was equal to the estimated fair value at the time of purchase of $12.00 per share less the exercise price of $1.80. There were no new warrants granted during the nine months ended September 30, 2013, and warrants for the purchase of 14,729 shares were exercised at an exercise price of $1.80 during the nine months ended September 30, 2013. | |||||||||||||||||
Unvested warrants to non-employees are re-measured at fair value as of each balance sheet date. The Company recorded no stock-based compensation expense related to non-employee warrants during the three months ended September 30, 2014 and 2013 as there were no outstanding warrants during those periods. The Company recorded stock-based compensation expense in general and administrative expense related to non-employee warrants of zero and $299 during the nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||
There is no unrecognized expense related to unvested warrants granted under the Plan as there are no outstanding warrants. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
During the nine months ended September 30, 2014, the Company issued restricted stock units (RSUs) to employees and a non-employee director. | |||||||||||||||||
RSU activity during the periods indicated is as follows: | |||||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||||
of shares | average | average | intrinsic | ||||||||||||||
subject to | share | remaining | value | ||||||||||||||
restriction | value | contractual | |||||||||||||||
term | |||||||||||||||||
(years) | |||||||||||||||||
Balance at December 31, 2013 | 7,555 | $ | 34.27 | 1.18 | $ | 275 | |||||||||||
Granted | 60,954 | 32.89 | |||||||||||||||
Vested | (5,555 | ) | 34.12 | ||||||||||||||
Forfeited | — | — | |||||||||||||||
Balance at September 30, 2014 | 62,954 | $ | 32.94 | 2.2 | $ | 1,597 | |||||||||||
The related compensation expense for restricted stock units recognized during the three months ended September 30, 2014 and 2013 was $154 and zero, respectively, and $403 and zero during the nine months ended September 30, 2014 and 2013, respectively. At September 30, 2014, there was $1,804 of total unrecognized compensation cost related to unvested RSUs granted under the Plan. That cost is expected to be recognized over a weighted average period of 3.3 years. | |||||||||||||||||
Common Stock Call Option | |||||||||||||||||
In conjunction with the Company’s July 2011 recapitalization transaction, the Company entered into a stock repurchase agreement (the Agreement) with certain members of senior management. | |||||||||||||||||
The Company recorded stock-based compensation expense related to the call option of zero and $157 during the three months ended September 30, 2014 and 2013, respectively, and zero and $1,824 during the nine months ended September 30, 2014 and 2013, respectively. At September 30, 2014, there was no remaining unrecognized compensation cost related to call options as the Company’s right to repurchase these shares expired July 15, 2013. | |||||||||||||||||
Common Stock Valuations | |||||||||||||||||
Prior to the Company’s IPO in August 2013, the Company derived the value of its common stock using valuation models prepared by third parties. In addition, management and the Company’s Board of Directors also considered relevant market activity including the then anticipated IPO, and other events occurring in recent proximity to valuation dates, including the recapitalization transaction and issuance of New Series A Convertible Preferred Stock in July 2011 to determine an estimate of fair value per share for stock options granted prior to August 2013 and for options granted during the years ended December 31, 2012 and 2011. | |||||||||||||||||
Subsequent to the Company’s IPO, the value of the Company’s common stock was determined based on the closing market price of the Company’s common stock traded on the New York Stock Exchange. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||||||
8. Stockholders’ Equity | |||||||||||||||||||||||||
a) Changes in Stockholders’ Equity | |||||||||||||||||||||||||
In connection with the Company’s follow-on public offering (Note 4), the Company issued an additional 747,500 shares for net proceeds of $24.8 million after deducting the underwriters discount and offering expenses. Changes in stockholders’ equity for the nine months ended September 30, 2014 were as follows (in thousands, except for share amounts): | |||||||||||||||||||||||||
Common | Common | Treasury | Additional | Accumulated | Total | ||||||||||||||||||||
Stock Shares | Stock | Stock | Paid-In | Deficit | Stockholders’ | ||||||||||||||||||||
Amount | Capital | Equity | |||||||||||||||||||||||
Balance as of December 31, 2013 | 40,409,791 | $ | 40 | $ | (3,966 | ) | $ | 168,949 | $ | (22,985 | ) | $ | 142,038 | ||||||||||||
Net income | — | — | — | — | 3,704 | 3,704 | |||||||||||||||||||
Share-based compensation expense | — | — | — | 3,104 | — | 3,104 | |||||||||||||||||||
Exercise of stock options and vesting of awards | 368,924 | 1 | — | 659 | — | 660 | |||||||||||||||||||
Issuance of common stock upon vesting of early exercised options | 129,494 | — | — | 226 | — | 226 | |||||||||||||||||||
Issuance of common stock in follow-on offering | 747,500 | 1 | — | 24,845 | — | 24,846 | |||||||||||||||||||
Balance as of September 30, 2014 | 41,655,709 | $ | 42 | $ | (3,966 | ) | $ | 197,783 | $ | (19,281 | ) | $ | 174,578 | ||||||||||||
Acquisition_of_Decision_Street
Acquisition of Decision Street, LLC | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Acquisition of Decision Street, LLC | ' | ||||
9. Acquisition of Decision Street, LLC | |||||
On September 15, 2014, the Company acquired 100% of the equity interests of Decision Street, LLC (“Decision Street”) for total consideration of $4.7 million, net of cash acquired. Decision Street is a development stage company that is building RFP lead scoring and sales optimization technology. The acquisition was accounted for as a purchase business combination. | |||||
Total consideration is comprised of $3.7 million, net of cash acquired of $0.4 million, $0.2 million of deferred consideration payment due November 30, 2015, and $0.8 million of liabilities assumed by the Company. In addition, the purchase agreement provides for additional contingent payments totaling $2.7 million, $0.9 million payable on November 30, 2015, and $1.8 million payable on October 31, 2017. These additional payments are contingent upon the continued employment of two key employees and are considered compensatory arrangements that are being recognized as expense over the requisite service period, as earned. | |||||
The table below represents the preliminary allocation of the purchase price for the acquired net assets of Decision Street based on their estimated fair values as of September 15, 2014. The allocation of the purchase price was based upon preliminary estimates of fair value of the corresponding assets and liabilities as follows: | |||||
Tangible assets, net | $ | 689 | |||
In-process research and development | 1,442 | ||||
Customer relationships | 200 | ||||
Goodwill | 2,349 | ||||
Total consideration | $ | 4,680 | |||
In-process research and development represents the estimated fair value of Decision Street’s development stage software. Customer relationships represent the fair values of the underlying relationships and agreements with Decision Street customers. The excess of purchase consideration over the fair value of the net tangible and identifiable intangible assets acquired of $2.3 million was recorded as goodwill. Changes to amounts recorded as assets or liabilities may result in a corresponding adjustment to goodwill. The goodwill balance is attributed to the assembled workforce and expanded market opportunities when integrating Decision Street’s lead scoring technology into the Company’s technology. The goodwill balance is deductible for U.S. income tax purposes. | |||||
Acquisition-related costs, including transaction costs such as legal and accounting fees, were expensed as incurred. The Company incurred $0.1 million of transaction costs for the three and nine months ended September 30, 2014, which have been included in general and administrative expenses in the consolidated statement of operations. The amount of revenue attributable to this acquisition was immaterial for the three and nine months ended September 30, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
10. Commitments and Contingencies | |||||
a) Legal Proceedings, Regulatory Matters and Other Contingencies | |||||
From time to time, the Company may become involved in legal proceedings, regulatory matters or other contingencies in the ordinary course of its business. The Company is not presently involved in any legal proceeding, regulatory matter or other contingency that, if determined adversely to it, would individually or in the aggregate have a material adverse effect on its business, operating results, financial condition or cash flows. | |||||
b) Acquisition Payouts | |||||
A summary of the changes in the recorded amount of accrued compensation related to earnouts from acquisitions for which continued service is required from December 31, 2013 to September 30, 2014 is as follows (dollars in thousands): | |||||
Liability as of December 31, 2013 | $ | 1,787 | |||
Payments | (2,256 | ) | |||
Additional accruals | 1,179 | ||||
Liability as of September 30, 2014 | $ | 710 | |||
The accrued compensation related to acquisition payouts is recorded as earned within accrued expenses and other current liabilities on the accompanying consolidated balance sheets. Additionally, the Company made $0.4 million in contingent consideration payments related to previous acquisitions during the nine months ended September 30, 2014. The contingent consideration payments were recorded within accrued expense and other current liabilities on the accompanying balance sheet. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
11. Subsequent Events | |
The Company has evaluated subsequent events through November 6, 2014, the date the financial statements were available to be issued. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
(a) Basis of Presentation | |
The financial information presented in the accompanying unaudited consolidated financial statements as of September 30, 2014, and for the three and nine months ended September 30, 2014 and 2013 has been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (SEC) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of the financial position as of September 30, 2014, the results of operations for the three and nine months ended September 30, 2014 and 2013, and cash flows for the nine months ended September 30, 2014 and 2013. These unaudited consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto. | |
Reclassifications | ' |
(b) Reclassification | |
Certain items in the prior period financial statements have been reclassified for comparative purposes to conform to the current period presentation. | |
Use of Estimates | ' |
(c) Use of Estimates | |
The preparation of the 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 consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions made by management include estimated useful lives of property and equipment and capitalized software development, goodwill and intangibles, application of appropriate revenue recognition standards, allowances for doubtful accounts, valuation of deferred tax assets, stock-based compensation, income taxes and legal and other contingencies. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. Actual results could differ from those estimates and assumptions. | |
Cash and Cash Equivalents | ' |
(d) Cash and Cash Equivalents | |
Highly liquid financial instruments purchased with original maturities of 90 days or less at the date of purchase are reported as cash equivalents. Cash equivalents are recorded at cost, which approximates fair value. | |
Included in cash and cash equivalents are funds representing amounts reserved for the face value of registration fees or tickets sold on behalf of customers. While these cash accounts are not restricted as to their use, a liability for amounts due to customers under these arrangements has been recorded in accounts payable in the accompanying consolidated balance sheets. The Company had amounts due to customers of $3,773 and $2,560 included within cash and cash equivalents as of September 30, 2014 and December 31, 2013, respectively. | |
Revenue Recognition | ' |
(e) Revenue Recognition | |
The Company derives revenue from two primary sources: platform subscription-based solutions and marketing solutions. These services are generally provided under annual or multi-year contracts that are generally only cancellable for cause. Revenue is generally recognized on a straight-line basis over the life of the contract. The Company recognizes revenue when all of the following conditions are met: | |
(i) persuasive evidence exists of an arrangement with the customer reflecting the terms and conditions under which the solutions or services will be provided; | |
(ii) delivery to customers has occurred or services have been rendered; | |
(iii) the fee is fixed or determinable; and | |
(iv) collection of the fees is reasonably assured. The Company considers a signed agreement or other similar documentation to be persuasive evidence of an arrangement. Collectability is assessed based on a number of factors, including transaction history and the creditworthiness of a customer. If it is determined that collection is not reasonably assured, revenue is not recognized until collection becomes reasonably assured, which is generally upon receipt of cash. | |
The Company adopted the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements (EITF Issue No. 08-1, Revenue Arrangements with Multiple Deliverables) with respect to its multiple-element arrangements entered into or significantly modified on or after January 1, 2011. ASU 2009-13 amends ASC 605-25 to eliminate the requirement that all undelivered elements have vendor-specific objective evidence (VSOE) or third-party evidence (TPE) of selling price before an entity can recognize the portion of an overall arrangement fee that is attributable to items that have already been delivered. The adoption of ASU 2009-13 did not have a material impact on the Company’s results of operations. | |
Platform Subscription Revenue | |
Event Management | |
The Company generates the majority of its revenue through software-as-a-service (SaaS) subscriptions to the event management platform, pricing for which is subject to the features and functionality selected. No features or functionality within the subscription-based services have stand-alone value from one another and, therefore, the entire subscription fee is recognized on a straight-line basis over the term of the subscription arrangement. | |
SaaS subscriptions may include functionality that enables customers to manage the registration of participants attending the customer’s event or events. In some cases, the negotiated fee for the subscription is based on a maximum number of event registrations permitted over the subscription term. At any time during the subscription term, customers may elect to purchase blocks of additional registrations, which are referred to as subscription up-sells. The fees associated with the up-sells are added to the original subscription fee, and the revenue is recognized over the remaining subscription period. No portion of the subscription fee is refundable regardless of the actual number of registrations that occur. | |
Mobile Apps | |
Subscription-based solutions also include the sale of mobile event apps. The revenue for mobile event apps solutions is generally recognized on a straight-line basis over the life of the contract. A customer may use a singular mobile event app for any number of events. At any time during the subscription term, customers may elect to purchase additional mobile event apps, which are referred to as mobile up-sells. The fees associated with the up-sells are added to the original subscription fee, and the revenue is recognized over the remaining subscription period. No portion of the subscription fee is refundable. | |
Ticketing | |
Ticketing revenue is generated primarily through convenience and order processing fees charged to the end user purchasing the ticket for an event and is recorded net of the face value of the ticket. Revenue for these ticket fees collected in advance of the event is recorded as deferred revenue until the event occurs. If an event is cancelled, the customer receives a full refund of the ticket price and fees paid. | |
Other subscription-based solutions include the sale of survey solutions, which are contracted though annual or multiyear arrangements. | |
Subscription agreements do not provide customers with the right to take possession of the underlying software at any time. | |
Marketing Solutions Revenue | |
Marketing solutions revenue is generated through the delivery of various forms of advertising sold through annual or multi-year advertising contracts. Such solutions include prominent display of a customer’s venue within the Cvent Supplier Network, the Cvent Destination Guide or in various electronic newsletters. Pricing for the advertisements is based on the targeted geography, number of advertisements and prominence of the ad placement. | |
The Company enters into arrangements with multiple deliverables that generally include various marketing solutions that may be sold individually or bundled together and delivered over various periods of time. In such situations, the Company applies the provisions of Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, No. 605-25, Revenue Recognition – Multiple Element Arrangements to account for the various elements within the marketing solution agreements delivered over the platform. Under such guidance, in order to treat deliverables in a multiple-deliverable arrangement as separate units of accounting, the deliverables must have standalone value upon delivery. If the deliverables have standalone value upon delivery, the Company accounts for each deliverable separately and revenue is recognized ratably over the contractual period that the related advertising deliverable is provided. Annual marketing solutions on the Cvent Supplier Network are often sold separately, and, as such, all have standalone value. | |
Certain one-time marketing solutions, which can run for a month, several months, or a year, are primarily sold in a package. In determining whether the marketing solutions sold in packages have standalone value, the Company considers the availability of the services from other vendors, the nature of the solutions, and the contractual dependence of the solutions to the rest of the package. Based on these considerations, the Company has determined the estimated selling price for each marketing solution sold in a package. | |
Revenue arrangements with multiple deliverables are divided into separate units of accounting and the arrangement consideration is allocated to all deliverables based on the relative selling price method. In such circumstances, the Company uses the selling price hierarchy of: (i) VSOE, if available, (ii) third-party evidence of selling price, or TPE, and (iii) best estimate of selling price. VSOE is limited to the price charged when the same element is sold separately by the Company. Due to the unique nature of some multiple deliverable revenue arrangements, the Company may not be able to establish selling prices based on historical stand-alone sales using VSOE or TPE; therefore the Company may use its best estimate to establish selling prices for these arrangements. The Company establishes the best estimates within a range of selling prices considering multiple factors including, but not limited to, factors such as size of transaction, customer demand and price lists. | |
Deferred Revenue | ' |
(f) Deferred Revenue | |
Deferred revenue consists of contractual billings or payments received in advance of revenue recognition from platform subscription services or marketing solutions that are subsequently recognized when the revenue recognition criteria are met. The Company generally invoices customers in annual or quarterly installments. | |
Business Combinations | ' |
(g) Business Combinations | |
The Company is required to allocate the purchase price of acquired companies to the identifiable tangible and intangible assets acquired and liabilities assumed at the acquisition date based upon their estimated fair values. | |
Goodwill as of the acquisition date represents the excess of the purchase consideration of an acquired business over the fair value of the underlying net tangible and intangible assets acquired and liabilities assumed. This allocation and valuation require management to make significant estimates and assumptions, especially with respect to long-lived and intangible assets. | |
Critical estimates in valuing intangible assets include but are not limited to estimates about: future expected cash flows from customer contracts, customer lists, distribution agreements, proprietary technology and non-competition agreements; the acquired company’s brand awareness and market position, assumptions about the period of time the brand will continue to be used in our product portfolio; as well as expected costs to develop the in-process research and development into commercially viable products and estimated cash flows from the projects when completed, and discount rates. The Company’s estimates of fair value are based upon assumptions the Company believe to be reasonable, but which are inherently uncertain and unpredictable. Assumptions may be incomplete or inaccurate, and unanticipated events and circumstances may occur. | |
In addition, uncertain tax positions and tax-related valuation allowances assumed in connection with a business combination are initially estimated as of the acquisition date. The Company continues to evaluate these items quarterly and records any adjustments to the preliminary estimates to goodwill provided that the Company is within the measurement period. Subsequent to the measurement period, changes to these uncertain tax positions and tax related valuation allowances will affect the Company’s provision for income taxes in the consolidated statements of operations in the current period. | |
Other estimates associated with the accounting for these acquisitions may change as additional information becomes available regarding the assets acquired and liabilities assumed. | |
Goodwill | ' |
(h) Goodwill | |
Goodwill represents the excess of: (i) the aggregate of the fair value of consideration transferred in a business combination, over (ii) the fair value of assets acquired, net of liabilities assumed. Goodwill is not amortized, but is subject to annual impairment tests. The goodwill impairment test is a two-step test. Under the first step, the fair value of the reporting unit is compared with its carrying value, including goodwill. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is estimated using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying value, step two is not performed. | |
The Company performs its annual impairment review of goodwill on November 30 and when a triggering event occurs between annual impairment tests. There were no triggering events or indications of impairment as of September 30, 2014. | |
Capitalized Software Development Costs | ' |
(i) Capitalized Software Development Costs | |
Costs to develop internal use software are capitalized and recorded as capitalized software in accordance with the provisions of FASB ASC Subtopic 350-40, Intangibles-Goodwill and Other Subtopic 40 Internal-Use Software on the balance sheet. These costs are amortized on a project-by-project basis using the straight-line method over the estimated economic life of the application, which is generally three years, beginning when the asset is substantially ready for use. Costs incurred during the preliminary development stage, as well as maintenance and training costs are expensed as incurred. | |
Deferred Tax Assets and Liabilities | ' |
(j) Deferred Tax Assets and Liabilities | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. To the extent that it is not considered to be more likely than not that a deferred tax asset will be realized, a valuation allowance is established. The Company applies the provisions of FASB interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48) (included in ASC Subtopic 740-10, Income Taxes—Overall), which provides guidance related to the accounting for uncertain tax positions. In accordance with FIN 48, the Company only recognizes the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained upon examination. | |
Stock-Based Compensation | ' |
(k) Stock-Based Compensation | |
The Company accounts for its employee stock-based compensation awards in accordance with FASB ASC Topic 718, Compensation—Stock Compensation. ASC Topic 718 requires that all employee stock-based compensation is recognized as a cost in the financial statements and that for equity-classified awards such cost is measured at the grant date fair value of the award. The Company estimates grant date fair value using the Black-Scholes option-pricing model. | |
Determining the fair value of stock-based compensation awards under this model requires judgment, including an estimation of the value per share of the Company’s common stock prior to the Company’s initial public offering (IPO) in August 2013, estimated volatility, risk free rate, expected term and estimated dividend yield. The assumptions used in calculating the fair value of stock-based | |
compensation awards represent the Company’s best estimates, based on management judgment. The estimate of the value per share of the Company’s common stock used in the option-pricing model prior to the Company’s IPO was based on the contemporaneous valuations performed with the assistance of an unrelated third-party valuation specialist and management’s analysis of market transactions in proximity to the valuation dates. The estimated dividend yield is zero since the Company has not issued dividends to date and does not anticipate issuing dividends. The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero coupon issues with an equivalent remaining term. Due to its limited trading history, the Company estimates volatility for option grants by evaluating the average historical volatility of a peer group of similar public companies. The expected term of the Company’s option plans represent the period that its stock-based awards are expected to be outstanding. For purposes of determining the expected term, the Company applies the simplified approach, in which the expected term of an award is presumed to be the mid-point between the vesting date and the expiration date of the award. Awards generally vest over a service period of four years, with a maximum contractual term of ten years. | |
Pursuant to FASB ASC Subtopic 718-10-35, Stock Compensation, the initial determination of compensation cost is based on the number of stock options granted amortized over the vesting period. The value of the awards granted is discounted by the forfeiture rate equal to the value expected to vest. The forfeiture rate is derived by taking into consideration historical employee turnover rates as well as expectations for the future. Expense is recognized using the straight-line attribution method. | |
Foreign Currency | ' |
(l) Foreign Currency | |
The Company’s foreign subsidiary in India designates the U.S. dollar as the functional currency. For the subsidiary, assets and liabilities denominated in foreign currency are remeasured into U.S. dollars at current exchange rates for monetary assets and liabilities and historical exchange rates for nonmonetary assets and liabilities. Foreign currency gains and losses associated with remeasurement are included in general and administrative expense in the consolidated statements of operations. | |
Foreign currency gains (losses) associated with transactions and remeasurement were $(610) and $(845) for the three months ended September 30, 2014 and 2013, respectively, and $(125) and $(2,009) for the nine months ended September 30, 2014 and 2013, respectively. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued joint guidance to improve and converge the financial reporting requirements for revenue from contracts with customers. ASU 2014-9, Revenue from Contracts with Customers, prescribes a five-step model for revenue recognition that will replace most existing revenue recognition guidance under U.S. GAAP. The new standard supersedes nearly all existing revenue recognition guidance under U.S. GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 allows for either full retrospective or modified retrospective adoption and will become effective for the Company in the first quarter of 2017. Early adoption is prohibited. Management is currently evaluating which adoption method it will use and assessing the effect the adoption of this standard will have on the consolidated financial statements. |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Computation of Basic and Diluted Net Income Per Share | ' | ||||||||||||||||
The computation of basic and diluted net income per share is as follows: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income (loss) | $ | 1,071 | $ | (829 | ) | $ | 3,704 | $ | (2,805 | ) | |||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Weighted average common shares outstanding | 41,103,502 | 29,700,211 | 40,910,381 | 20,336,459 | |||||||||||||
Effect of convertible preferred stock | — | — | — | — | |||||||||||||
Weighted average shares outstanding for basic earnings per share | 41,103,502 | 29,700,211 | 40,910,381 | 20,336,459 | |||||||||||||
Effect of share-based equity award plan | 2,047,737 | — | 2,263,820 | — | |||||||||||||
Effect of warrants | — | — | — | — | |||||||||||||
Weighted average shares outstanding for diluted earnings per share | 43,151,239 | 29,700,211 | 43,174,201 | 20,336,459 | |||||||||||||
Net income (loss) per share: | |||||||||||||||||
Basic | $ | 0.03 | $ | (0.03 | ) | $ | 0.09 | $ | (0.14 | ) | |||||||
Diluted | $ | 0.02 | $ | (0.03 | ) | $ | 0.09 | $ | (0.14 | ) | |||||||
StockBased_Compensation_Plan_T
Stock-Based Compensation Plan (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Summary of Weighted Average Assumptions Used in Valuation of Stock-Based Awards | ' | ||||||||||||||||
The following is a summary of the weighted average assumptions used in the valuation of stock-based awards under the Black-Scholes model: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Volatility | 48.17 | % | 48.67 | % | |||||||||||||
Expected term (years) | 6.61 | 6.65 | |||||||||||||||
Risk-free interest rate | 2.15 | % | 1.79 | % | |||||||||||||
Stock Option Activity | ' | ||||||||||||||||
Stock option activity during the periods indicated is as follows: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
shares subject to | average | average | intrinsic | ||||||||||||||
options | exercise | remaining | value | ||||||||||||||
price per share | contractual | ||||||||||||||||
term (years) | |||||||||||||||||
Balance at December 31, 2013 | 3,631,272 | $ | 5.78 | 7.85 | $ | 111,150 | |||||||||||
Granted | 437,045 | 31.56 | |||||||||||||||
Exercised | (492,863 | ) | 1.8 | ||||||||||||||
Forfeited | (142,302 | ) | 17.28 | ||||||||||||||
Expired | (283 | ) | 1.22 | ||||||||||||||
Balance at September 30, 2014 | 3,432,869 | $ | 9.16 | 7.25 | $ | 55,649 | |||||||||||
Exercisable at September 30, 2014 | 1,180,229 | $ | 2.15 | 6.46 | $ | 27,411 | |||||||||||
Summary of RSU Activity | ' | ||||||||||||||||
RSU activity during the periods indicated is as follows: | |||||||||||||||||
Number | Weighted | Weighted | Aggregate | ||||||||||||||
of shares | average | average | intrinsic | ||||||||||||||
subject to | share | remaining | value | ||||||||||||||
restriction | value | contractual | |||||||||||||||
term | |||||||||||||||||
(years) | |||||||||||||||||
Balance at December 31, 2013 | 7,555 | $ | 34.27 | 1.18 | $ | 275 | |||||||||||
Granted | 60,954 | 32.89 | |||||||||||||||
Vested | (5,555 | ) | 34.12 | ||||||||||||||
Forfeited | — | — | |||||||||||||||
Balance at September 30, 2014 | 62,954 | $ | 32.94 | 2.2 | $ | 1,597 | |||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Summary of Changes in Stockholders' Equity | ' | ||||||||||||||||||||||||
Changes in stockholders’ equity for the nine months ended September 30, 2014 were as follows (in thousands, except for share amounts): | |||||||||||||||||||||||||
Common | Common | Treasury | Additional | Accumulated | Total | ||||||||||||||||||||
Stock Shares | Stock | Stock | Paid-In | Deficit | Stockholders’ | ||||||||||||||||||||
Amount | Capital | Equity | |||||||||||||||||||||||
Balance as of December 31, 2013 | 40,409,791 | $ | 40 | $ | (3,966 | ) | $ | 168,949 | $ | (22,985 | ) | $ | 142,038 | ||||||||||||
Net income | — | — | — | — | 3,704 | 3,704 | |||||||||||||||||||
Share-based compensation expense | — | — | — | 3,104 | — | 3,104 | |||||||||||||||||||
Exercise of stock options and vesting of awards | 368,924 | 1 | — | 659 | — | 660 | |||||||||||||||||||
Issuance of common stock upon vesting of early exercised options | 129,494 | — | — | 226 | — | 226 | |||||||||||||||||||
Issuance of common stock in follow-on offering | 747,500 | 1 | — | 24,845 | — | 24,846 | |||||||||||||||||||
Balance as of September 30, 2014 | 41,655,709 | $ | 42 | $ | (3,966 | ) | $ | 197,783 | $ | (19,281 | ) | $ | 174,578 | ||||||||||||
Acquisition_of_Decision_Street1
Acquisition of Decision Street, LLC (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Allocation of Purchase Price for Acquired Net assets Based on their Estimated Fair Values | ' | ||||
The table below represents the preliminary allocation of the purchase price for the acquired net assets of Decision Street based on their estimated fair values as of September 15, 2014. The allocation of the purchase price was based upon preliminary estimates of fair value of the corresponding assets and liabilities as follows: | |||||
Tangible assets, net | $ | 689 | |||
In-process research and development | 1,442 | ||||
Customer relationships | 200 | ||||
Goodwill | 2,349 | ||||
Total consideration | $ | 4,680 | |||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Changes in Recorded Amount of Accrued Compensation Related to Earnouts from Acquisitions | ' | ||||
A summary of the changes in the recorded amount of accrued compensation related to earnouts from acquisitions for which continued service is required from December 31, 2013 to September 30, 2014 is as follows (dollars in thousands): | |||||
Liability as of December 31, 2013 | $ | 1,787 | |||
Payments | (2,256 | ) | |||
Additional accruals | 1,179 | ||||
Liability as of September 30, 2014 | $ | 710 | |||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Source | |||||
Significant Of Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Cash and cash equivalent maturity period | ' | ' | '90 days | ' | ' |
Amount due to customers under credit arrangements | $3,773 | ' | $3,773 | ' | $2,560 |
Number of primary sources | ' | ' | 2 | ' | ' |
Goodwill impairment | ' | ' | 0 | ' | ' |
Estimated dividend yield | ' | ' | 0.00% | ' | ' |
Risk-free interest rate | ' | ' | 0.00% | ' | ' |
Awards vesting, service period | ' | ' | '4 years | ' | ' |
Contractual term | ' | ' | '10 years | ' | ' |
Foreign currency gains (losses) | ($610) | ($845) | ($125) | ($2,009) | ' |
Software Development [Member] | ' | ' | ' | ' | ' |
Significant Of Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | '3 years | ' | ' |
FollowOn_Public_Offering_Addit
Follow-On Public Offering - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Jan. 16, 2014 |
Equity [Abstract] | ' | ' |
Follow-on public offering shares | ' | 6,072,000 |
Follow-on public offering shares sold | ' | 747,500 |
Follow-on public offering selling shares sold | ' | 5,324,500 |
Follow-on public offering shares price | ' | $35.50 |
Net proceeds received | $24,846 | ' |
Offering closed date | 23-Jan-14 | ' |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended |
Jun. 13, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member] | Stock Options [Member] | Stock Options [Member] | Common Stock Warrants [Member] | Common Stock Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of non-vested early option exercised | 188,875 | 2,047,737 | 2,263,820 | ' | ' | ' | ' | ' | ' |
Option exercises during period | 573,941 | ' | 492,863 | ' | ' | ' | ' | ' | ' |
Effect of anti-dilutive securities in computation of pro forma diluted loss per share | ' | ' | ' | 7,384,059 | 14,037,134 | 2,379,051 | 2,379,051 | 1,867,295 | 1,867,295 |
Net_Income_Per_Share_Computati
Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 13, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' |
Net income (loss) | ' | $1,071 | ($829) | $3,704 | ($2,805) |
Weighted average number of shares outstanding: | ' | ' | ' | ' | ' |
Weighted average common shares outstanding | ' | 41,103,502 | 29,700,211 | 40,910,381 | 20,336,459 |
Effect of convertible preferred stock | ' | ' | ' | ' | ' |
Weighted average shares outstanding for basic earnings per share | ' | 41,103,502 | 29,700,211 | 40,910,381 | 20,336,459 |
Effect of share-based equity award plan | 188,875 | 2,047,737 | ' | 2,263,820 | ' |
Effect of warrants | ' | ' | ' | ' | ' |
Weighted average shares outstanding for diluted earnings per share | ' | 43,151,239 | 29,700,211 | 43,174,201 | 20,336,459 |
Net income (loss) per share: | ' | ' | ' | ' | ' |
Basic | ' | $0.03 | ($0.03) | $0.09 | ($0.14) |
Diluted | ' | $0.02 | ($0.03) | $0.09 | ($0.14) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective income tax rate | 17.70% | 245.20% | -7.00% | -319.30% |
Undistributed earnings of Company's foreign affiliates | $6,994 | ' | $6,994 | ' |
StockBased_Compensation_Plan_A
Stock-Based Compensation Plan - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||
Jun. 28, 2013 | Jun. 13, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
General and Administrative [Member] | General and Administrative [Member] | General and Administrative [Member] | General and Administrative [Member] | 2013 Equity Incentive Plan [Member] | Non-Employee [Member] | Non-Employee [Member] | Non-Employee [Member] | Non-Employee [Member] | Non-Employee [Member] | Non-Employee [Member] | Common Stock Warrants [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Common Stock Call Option [Member] | Common Stock Call Option [Member] | Common Stock Call Option [Member] | Common Stock Call Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | |||||||
General and Administrative [Member] | General and Administrative [Member] | |||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vesting period | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options expiration period | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,576,762 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value | ' | ' | ' | ' | $15.78 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised | ' | ' | ' | ' | $14,409,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | 1,130,000 | 971,000 | 3,104,000 | 4,220,000 | 226,000 | 67,000 | 704,000 | 689,000 | ' | 0 | ' | 0 | ' | 0 | 299,000 | ' | 154,000 | 0 | 403,000 | 0 | 0 | 157,000 | 0 | 1,824,000 | 976,000 | 814,000 | 2,701,000 | 2,097,000 |
Unrecognized compensation cost related to unvested stock options granted | ' | ' | 7,335,000 | ' | 7,335,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,804,000 | ' | 1,804,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period of unrecognized compensation cost recognition | ' | ' | ' | ' | '2 years 5 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options were exercised prior to vesting pursuant to an early exercise feature | ' | 573,941 | ' | ' | 492,863 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested and the portion of the liability related to the vesting options reclassified to common stock | ' | ' | ' | ' | 129,494 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability related to the vesting options | ' | ' | ' | ' | 226,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining options vested and the portion of the liability related to the vesting options reclassified to common stock | ' | ' | ' | ' | 188,875 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining liability related to the vesting options | ' | ' | ' | ' | 340,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant issued to repurchase shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants repurchased exercise price | ' | ' | ' | 1.8 | ' | 1.8 | ' | ' | ' | ' | ' | ' | ' | ' | 1.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration date of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants repurchased | 1,275,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of common stock repurchase per share | $12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants granted | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercised | ' | ' | ' | 14,729 | ' | 14,729 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized compensation expense, term | ' | ' | ' | ' | '3 years 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to call options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | $0 | ' | ' | ' | ' | ' |
Repurchase agreement expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jul-13 | ' | ' | ' | ' | ' |
StockBased_Compensation_Plan_S
Stock-Based Compensation Plan - Summary of Weighted Average Assumptions Used in Valuation of Stock-Based Awards (Detail) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Dividend yield | 0.00% | 0.00% |
Volatility | 48.17% | 48.67% |
Expected term (years) | '6 years 7 months 10 days | '6 years 7 months 24 days |
Risk-free interest rate | 2.15% | 1.79% |
StockBased_Compensation_Plan_S1
Stock-Based Compensation Plan - Stock Option Activity (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 13, 2012 | Sep. 30, 2014 | Dec. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Number of shares subject to options, Beginning Balance | ' | 3,631,272 | ' |
Number of shares subject to options, Granted | ' | 437,045 | ' |
Number of shares subject to options, Exercised | -573,941 | -492,863 | ' |
Number of shares subject to options, Forfeited | ' | -142,302 | ' |
Number of shares subject to options, Expired | ' | -283 | ' |
Number of shares subject to options, Ending Balance | ' | 3,432,869 | 3,631,272 |
Number of shares subject to options, Exercisable | ' | 1,180,229 | ' |
Weighted average exercise price per share, Beginning Balance | ' | $5.78 | ' |
Weighted average exercise price per share, Granted | ' | $31.56 | ' |
Weighted average exercise price per share, Exercised | ' | $1.80 | ' |
Weighted average exercise price per share, Forfeited | ' | $17.28 | ' |
Weighted average exercise price per share, Expired | ' | $1.22 | ' |
Weighted average exercise price per share, Ending Balance | ' | $9.16 | $5.78 |
Weighted average exercise price per share, Exercisable | ' | $2.15 | ' |
Weighted average remaining contractual term (years) | ' | '7 years 3 months | '7 years 10 months 6 days |
Weighted average remaining contractual term (years), Exercisable | ' | '6 years 5 months 16 days | ' |
Aggregate intrinsic value, Beginning Balance | ' | $111,150 | ' |
Aggregate intrinsic value, Ending Balance | ' | 55,649 | 111,150 |
Aggregate intrinsic value, Exercisable | ' | $27,411 | ' |
StockBased_Compensation_Plan_S2
Stock-Based Compensation Plan - Summary of RSU Activity (Detail) (Restricted Stock Units (RSUs) [Member], USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of shares subject to restriction, Beginning Balance | 7,555 | ' |
Number of shares subject to restriction, Granted | 60,954 | ' |
Number of shares subject to restriction ,Vested | -5,555 | ' |
Number of shares subject to restriction, Forfeited | ' | ' |
Number of shares subject to restriction, Ending Balance | 62,954 | 7,555 |
Weighted average share value, Beginning Balance | $34.27 | ' |
Weighted average share value, Granted | $32.89 | ' |
Weighted average share value ,Vested | $34.12 | ' |
Weighted average share value, Forfeited | ' | ' |
Weighted average share value, Ending Balance | $32.94 | $34.27 |
Weighted average remaining contractual term (years) | '2 years 2 months 12 days | '1 year 2 months 5 days |
Aggregate intrinsic value, Beginning Balance | $275 | ' |
Aggregate intrinsic value, Ending Balance | $1,597 | $275 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional information (Detail) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 |
Subsidiary, Sale of Stock [Line Items] | ' |
Proceeds from follow-on public offering, net of expenses | $24,846 |
IPO [Member] | ' |
Subsidiary, Sale of Stock [Line Items] | ' |
Common stock issued | 747,500 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Changes in Stockholders' Equity (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jun. 13, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
Common Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | ||||||
Beginning Balance | ' | ' | ' | $142,038 | ' | $40 | ($3,966) | ($3,966) | $168,949 | ($22,985) |
Beginning Balance, Shares | ' | ' | ' | ' | ' | 40,409,791 | ' | ' | ' | ' |
Net income (loss) | ' | 1,071 | -829 | 3,704 | -2,805 | ' | ' | ' | ' | 3,704 |
Share-based compensation expense | ' | ' | ' | 3,104 | ' | ' | ' | ' | 3,104 | ' |
Exercise of stock options and vesting of awards | ' | ' | ' | 660 | ' | 1 | ' | ' | 659 | ' |
Exercise of stock options and vesting of awards, Shares | ' | ' | ' | ' | ' | 368,924 | ' | ' | ' | ' |
Issuance of common stock upon vesting of early exercised options | ' | ' | ' | 226 | ' | ' | ' | ' | 226 | ' |
Issuance of common stock upon vesting of early exercised options, Shares | 573,941 | ' | ' | 492,863 | ' | 129,494 | ' | ' | ' | ' |
Issuance of common stock in follow-on offering | ' | ' | ' | 24,846 | ' | 1 | ' | ' | 24,845 | ' |
Issuance of common stock in follow-on offering, Shares | ' | ' | ' | ' | ' | 747,500 | ' | ' | ' | ' |
Ending Balance | ' | $174,578 | ' | $174,578 | ' | $42 | ($3,966) | ($3,966) | $197,783 | ($19,281) |
Ending Balance, Shares | ' | ' | ' | ' | ' | 41,655,709 | ' | ' | ' | ' |
Acquisition_of_Decision_Street2
Acquisition of Decision Street, LLC - Additional Information (Detail) (USD $) | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 15, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Decision Street [Member] | Decision Street [Member] | Decision Street [Member] | Decision Street [Member] | Decision Street [Member] | Decision Street [Member] | ||||
Employees | November 30, 2015 [Member] | October 31, 2017 [Member] | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition date | ' | ' | ' | ' | ' | 15-Sep-14 | ' | ' | ' |
Business acquisition interest acquired, percentage | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Business acquisition, total consideration | ' | ' | ' | $4,700,000 | ' | ' | ' | ' | ' |
Purchase consideration | ' | ' | ' | 3,700,000 | ' | ' | ' | ' | ' |
Purchase consideration, net cash payment | 4,121,000 | 90,000 | ' | 400,000 | ' | ' | ' | ' | ' |
Deferred consideration | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' |
Purchase consideration, liabilities assumed | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' |
Purchase consideration additional payments | ' | ' | ' | ' | 2,700,000 | 2,700,000 | ' | 900,000 | 1,800,000 |
Number of key employee | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
Fair value of net tangible and identifiable intangible assets acquired | 14,589,000 | ' | 12,703,000 | ' | ' | ' | 2,349,000 | ' | ' |
Acquisition related costs | ' | ' | ' | ' | $100,000 | $100,000 | ' | ' | ' |
Acquisitions_Allocation_of_Pur
Acquisitions - Allocation of Purchase Price for Acquired Net assets Based on their Estimated Fair Values (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 15, 2014 | Sep. 15, 2014 | Sep. 15, 2014 |
In Thousands, unless otherwise specified | Decision Street [Member] | Decision Street [Member] | Decision Street [Member] | ||
In-Process Research and Development [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Tangible assets, net | ' | ' | $689 | ' | ' |
Intangible assets | ' | ' | ' | 1,442 | 200 |
Goodwill | 14,589 | 12,703 | 2,349 | ' | ' |
Total consideration | ' | ' | $4,680 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Changes in Recorded Amount of Accrued Compensation Related to Earnouts from Acquisitions (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Liability as of December 31, 2013 | $1,787 |
Payments | -2,256 |
Additional accruals | 1,179 |
Liability as of September 30, 2014 | $710 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (Accrued Expenses And Other Liabilities [Member], USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Accrued Expenses And Other Liabilities [Member] | ' |
Business Acquisition, Contingent Consideration [Line Items] | ' |
Contingent consideration payment related to previous acquisitions | $0.40 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent events evaluation date | 6-Nov-14 |