Vocera Communications (VCRA) 10-Q 3 Nov 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Nov. 01, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-35469
Entity Registrant Name	VOCERA COMMUNICATIONS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3354663
Entity Address, Address Line One	525 Race Street
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95126
City Area Code	408
Local Phone Number	882-5100
Title of 12(b) Security	Common Stock, $0.0003 par value
Trading Symbol	VCRA
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		34,796,065
Entity Central Index Key	0001129260
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 40,602	$ 34,976
Short-term investments	263,973	195,227
Accounts receivable, net of allowance	43,802	45,653
Other receivables	6,834	6,170
Inventories	8,074	10,159
Prepaid expenses and other current assets	6,542	6,317
Total current assets	369,827	298,502
Property and equipment, net	6,477	8,103
Intangible assets, net	21,272	12,788
Goodwill	94,833	69,168
Deferred commissions	17,167	12,293
Other long-term assets	7,109	5,967
Total assets	516,685	406,821
Current liabilities
Accounts payable	7,493	3,127
Accrued payroll and other current liabilities	25,013	23,195
Deferred revenue, current	55,753	54,785
Convertible senior notes, net	40,338	0
Total current liabilities	128,597	81,107
Deferred revenue, long-term	10,954	9,948
Convertible senior notes, net	218,327	124,376
Other long-term liabilities	6,501	10,374
Total liabilities	364,379	225,805
Stockholders' equity
Preferred stock, $0.0003 par value - 5,000,000 shares authorized as of September 30, 2021 and December 31, 2020; zero shares issued and outstanding	0	0
Common stock, $0.0003 par value - 100,000,000 shares authorized as of September 30, 2021 and December 31, 2020; 34,767,666 and 32,692,561 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	10	10
Additional paid-in capital	304,931	340,515
Accumulated other comprehensive (loss) income	(33)	473
Accumulated deficit	(152,602)	(159,982)
Total stockholders’ equity	152,306	181,016
Total liabilities and stockholders’ equity	$ 516,685	$ 406,821

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock par value (in dollars per share)	$ 0.0003	$ 0.0003
Preferred stock shares authorized (in shares)	5,000,000	5,000,000
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.0003	$ 0.0003
Common stock shares authorized (in shares)	100,000,000	100,000,000
Common stock shares issued (in shares)	34,767,666	32,692,561
Common stock shares outstanding (in shares)	34,767,666	32,692,561

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue
Total revenue	$ 63,568	$ 53,815	$ 168,416	$ 141,835
Cost of revenue
Total cost of revenue	20,591	17,485	58,298	51,776
Gross profit	42,977	36,330	110,118	90,059
Operating expenses
Research and development	12,294	9,559	34,650	27,940
Sales and marketing	19,132	15,291	55,227	48,252
General and administrative	8,162	7,464	24,501	20,778
Total operating expenses	39,588	32,314	114,378	96,970
Income (loss) from operations	3,389	4,016	(4,260)	(6,911)
Interest income	227	645	868	2,678
Interest expense	(812)	(2,368)	(2,383)	(6,950)
Other (expense) income, net	(549)	264	(1,551)	(117)
Income (loss) before income taxes	2,255	2,557	(7,326)	(11,300)
(Provision for) benefit from income taxes	(178)	1,604	(512)	1,523
Net income (loss)	$ 2,077	$ 4,161	$ (7,838)	$ (9,777)
Income (loss) per share
Basic (in dollars per share)	$ 0.06	$ 0.13	$ (0.23)	$ (0.30)
Diluted (in dollars per share)	$ 0.06	$ 0.13	$ (0.23)	$ (0.30)
Weighted average shares used to compute net income (loss) per share
Basic (in shares)	34,733	32,394	34,108	32,096
Diluted (in shares)	35,746	33,019	34,108	32,096
Product
Revenue
Total revenue	$ 32,936	$ 28,510	$ 83,888	$ 70,311
Cost of revenue
Total cost of revenue	8,361	7,139	22,858	21,213
Service
Revenue
Total revenue	30,632	25,305	84,528	71,524
Cost of revenue
Total cost of revenue	$ 12,230	$ 10,346	$ 35,440	$ 30,563

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 2,077	$ 4,161	$ (7,838)	$ (9,777)
Other comprehensive (loss) gain, net:
Change in unrealized (loss) gain on investments, net of tax	(140)	(188)	(506)	662
Comprehensive income (loss)	$ 1,937	$ 3,973	$ (8,344)	$ (9,115)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative effect	Common stock	Additional paid-in capital	Additional paid-in capitalCumulative effect	Accum. other comprehensive income (loss)	Accumulated deficit	Accumulated deficitCumulative effect
Balance (shares) at Dec. 31, 2019			31,660,709
Balance at Dec. 31, 2019	$ 163,825		$ 9	$ 313,963		$ 179	$ (150,326)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (shares)			77,909
Exercise of stock options	731			731
RSUs released net of shares withheld for tax settlement (shares)			64,161
RSUs released net of shares withheld for tax settlement	(864)			(864)
Employee stock-based compensation expense	5,841			5,841
Net income (loss)	(10,470)						(10,470)
Other comprehensive gain (loss)	(956)					(956)
Balance (shares) at Mar. 31, 2020			31,802,779
Balance at Mar. 31, 2020	158,107		$ 9	319,671		(777)	(160,796)
Balance (shares) at Dec. 31, 2019			31,660,709
Balance at Dec. 31, 2019	163,825		$ 9	313,963		179	(150,326)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(9,777)
Other comprehensive gain (loss)	662
Balance (shares) at Sep. 30, 2020			32,431,207
Balance at Sep. 30, 2020	171,702		$ 10	330,954		841	(160,103)
Balance (shares) at Dec. 31, 2019			31,660,709
Balance at Dec. 31, 2019	163,825		$ 9	313,963		179	(150,326)
Balance (shares) at Dec. 31, 2020			32,692,561
Balance at Dec. 31, 2020	$ 181,016	$ (16,996)	$ 10	340,515	$ (32,214)	473	(159,982)	$ 15,218
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	Accounting Standards Update 2020-06 [Member]
Balance (shares) at Mar. 31, 2020			31,802,779
Balance at Mar. 31, 2020	$ 158,107		$ 9	319,671		(777)	(160,796)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (shares)			46,508
Exercise of stock options	594			594
RSUs released net of shares withheld for tax settlement (shares)			372,639
RSUs released net of shares withheld for tax settlement	(4,716)			(4,716)
Common stock issued under employee stock purchase plan (shares)			126,046
Common stock issued under employee stock purchase plan	1,966			1,966
Employee stock-based compensation expense	6,366			6,366
Net income (loss)	(3,468)						(3,468)
Other comprehensive gain (loss)	1,806					1,806
Balance (shares) at Jun. 30, 2020			32,347,972
Balance at Jun. 30, 2020	160,655		$ 9	323,881		1,029	(164,264)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (shares)			60,553
Exercise of stock options	749		$ 1	748
RSUs released net of shares withheld for tax settlement (shares)			22,682
RSUs released net of shares withheld for tax settlement	(354)			(354)
Employee stock-based compensation expense	6,679			6,679
Net income (loss)	4,161						4,161
Other comprehensive gain (loss)	(188)					(188)
Balance (shares) at Sep. 30, 2020			32,431,207
Balance at Sep. 30, 2020	171,702		$ 10	330,954		841	(160,103)
Balance (shares) at Dec. 31, 2020			32,692,561
Balance at Dec. 31, 2020	181,016	(16,996)	$ 10	340,515	(32,214)	473	(159,982)	15,218
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (shares)			69,360
Exercise of stock options	1,181			1,181
RSUs released net of shares withheld for tax settlement (shares)			97,766
RSUs released net of shares withheld for tax settlement	(2,185)			(2,185)
Induced conversion of convertible senior notes (shares)			1,277,731
Induced conversion of convertible senior notes	477			477
Issuance of capped calls	(15,460)			(15,460)
Employee stock-based compensation expense	6,862			6,862
Net income (loss)	(7,633)						(7,633)
Other comprehensive gain (loss)	(234)					(234)
Balance (shares) at Mar. 31, 2021			34,137,418
Balance at Mar. 31, 2021	147,028		$ 10	299,176		239	(152,397)
Balance (shares) at Dec. 31, 2020			32,692,561
Balance at Dec. 31, 2020	181,016	$ (16,996)	$ 10	340,515	$ (32,214)	473	(159,982)	$ 15,218
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(7,838)
Other comprehensive gain (loss)	(506)
Balance (shares) at Sep. 30, 2021			34,767,666
Balance at Sep. 30, 2021	152,306		$ 10	304,931		(33)	(152,602)
Balance (shares) at Mar. 31, 2021			34,137,418
Balance at Mar. 31, 2021	147,028		$ 10	299,176		239	(152,397)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (shares)			29,807
Exercise of stock options	425			425
RSUs released net of shares withheld for tax settlement (shares)			447,601
RSUs released net of shares withheld for tax settlement	(10,509)			(10,509)
Common stock issued under employee stock purchase plan (shares)			77,538
Common stock issued under employee stock purchase plan	2,146			2,146
Issuance of capped calls	(1,894)			(1,894)
Employee stock-based compensation expense	7,123			7,123
Net income (loss)	(2,282)						(2,282)
Other comprehensive gain (loss)	(132)					(132)
Balance (shares) at Jun. 30, 2021			34,692,364
Balance at Jun. 30, 2021	141,905		$ 10	296,467		107	(154,679)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (shares)			40,610
Exercise of stock options	614			614
RSUs released net of shares withheld for tax settlement (shares)			34,692
RSUs released net of shares withheld for tax settlement	(753)			(753)
Employee stock-based compensation expense	8,603			8,603
Net income (loss)	2,077						2,077
Other comprehensive gain (loss)	(140)					(140)
Balance (shares) at Sep. 30, 2021			34,767,666
Balance at Sep. 30, 2021	$ 152,306		$ 10	$ 304,931		$ (33)	$ (152,602)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net loss	$ (7,838)	$ (9,777)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	7,432	4,470
Accretion of investments	1,913	619
Stock-based compensation expense	22,588	18,886
Amortization of debt discount and issuance costs	997	5,333
Release of deferred tax valuation allowance	0	(2,056)
Non-cash lease expense	1,956	1,676
Non-cash impact of induced premium	2,059	0
Other	399	(11)
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable	2,770	3,782
Other receivables	(456)	(119)
Inventories	1,971	(5,673)
Prepaid expenses and other assets	(380)	(1,186)
Deferred commissions	(4,875)	(847)
Accounts payable	3,946	(1,067)
Accrued payroll and other liabilities	(5,609)	1,632
Change in lease-related performance obligations	(856)	(957)
Deferred revenue	200	(5,227)
Net cash provided by operating activities	26,217	9,478
Cash flows from investing activities
Payment for property and equipment	(1,957)	(2,890)
Business acquisitions, net of cash and restricted cash acquired	(35,397)	(24,218)
Purchases of short-term investments	(205,720)	(89,429)
Maturities of short-term investments	131,534	84,255
Sales of short-term investments	3,019	29,381
Net cash used in investing activities	(108,521)	(2,901)
Cash flows from financing activities
Cash from lease-related performance obligations	198	854
Repayment of borrowings	(102,946)	0
Proceeds from issuance of convertible senior notes, net of issuance costs	217,707	0
Payment for purchase of capped calls	(17,354)	0
Proceeds from issuance of common stock from the employee stock purchase plan	2,146	1,966
Proceeds from exercise of stock options	2,220	2,073
Tax withholdings paid on behalf of employees for net share settlement	(13,443)	(5,932)
Net cash provided by (used in) financing activities	88,528	(1,039)
Net increase in cash, cash equivalents and restricted cash	6,224	5,538
Cash, cash equivalents and restricted cash at beginning of period	34,976	25,704
Cash, cash equivalents and restricted cash at end of period	41,200	31,242
Supplemental disclosure of non-cash investing and financing activities:
Costs related to the convertible senior notes in accounts payable and accrued liabilities	51	0
Operating lease right-of-use assets exchanged for lease obligations, net of acquired leases	731
Right-of-use assets obtained in exchange for lease obligations	2,096	139
Convertible senior notes converted to equity	477	0
Property and equipment in accounts payable and accrued liabilities	51	314
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract]
Cash and cash equivalents	40,602	31,242
Restricted cash included in other long-term assets	598	0
Total cash, cash equivalents and restricted cash	$ 41,200	$ 31,242

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
The Company and Summary of Significant Accounting Policies	The Company and Summary of Significant Accounting Policies Organization and Business Vocera Communications, Inc. and its subsidiaries (collectively, the "Company" or "Vocera") is a provider of secure, integrated, intelligent communication and clinical workflow solutions, focused on empowering mobile workers in healthcare, hospitality, retail, energy, education and other mission-critical mobile work environments, in the United States and internationally. The significant majority of the Company's business is generated from sales of its solutions in the healthcare market to help its customers improve quality of care, safety, patient and staff experience and increase operational efficiency. The Vocera communication and collaboration solution includes: an intelligent enterprise software platform; a lightweight, wearable, voice-controlled communication Badge and Smartbadge; and smartphone applications. The solution enables users to simply connect instantly with other staff by name, function or group name of the desired recipient. It also delivers HIPAA-compliant secure text messages, alerts and alarms directly to a range of smartphones or the Smartbadge both inside and outside the hospital, replacing legacy pagers and in-building wireless phones. The Company was incorporated in Delaware on February 16, 2000. The Company formed wholly-owned subsidiaries Vocera Communications UK Ltd and Vocera Communications Australia Pty Ltd. in 2005, Vocera Canada, Ltd. in 2010, Vocera Communications India Private Ltd. in 2013, Vocera Communications Middle East FZ LLC in 2014, acquired Extension, LLC in 2016, EASE Applications, LLC ("EASE") in 2020 and PatientSafe Solutions, Inc. (“PatientSafe”) in 2021. Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission, and include the accounts of Vocera and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The year-end condensed consolidated balance sheet data was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim consolidated financial information. The results for the quarter presented are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any other interim period or any other future year. Except for the change in certain accounting policies upon adoption of the accounting standards described below, there have been no material changes to the Company’s significant accounting policies compared to the accounting policies presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. The estimates include, but are not limited to, revenue recognition, warranty reserves, allowance for doubtful accounts, inventory reserves, bonuses, goodwill and intangible assets, stock-based compensation expense, provisions for income taxes, contingent consideration, and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. These reclassifications had no impact on the previously reported net loss or accumulated deficit. Recently Adopted Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06 related to the accounting for debt with conversion features. The amendments in this update simplify the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amends the guidance for the derivatives scope

Revenue, Deferred Revenue and D

Revenue, Deferred Revenue and Deferred Commissions	9 Months Ended
	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue, Deferred Revenue and Deferred Commissions	Revenue, Deferred Revenue and Deferred Commissions Disaggregation of Revenue A typical sales arrangement involves multiple elements, such as sales of the Company’s proprietary communication device ("Vocera Badge"), perpetual and time-based software licenses, professional services, cloud-based subscription software, and support services which entitles customers to unspecified upgrades, patch releases and telephone-based support. The following table depicts the disaggregation of revenue according to revenue type and is consistent with how the Company evaluates its financial performance: Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Product revenue Device $ 20,650 $ 17,027 $ 52,179 $ 48,030 Software 12,286 11,483 31,709 22,281 Total product 32,936 28,510 83,888 70,311 Service revenue Subscription and support 25,069 20,387 68,669 57,450 Professional services and training 5,563 4,918 15,859 14,074 Total service 30,632 25,305 84,528 71,524 Total revenue $ 63,568 $ 53,815 $ 168,416 $ 141,835 Contract balances The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable are recorded at the invoiced amount and in the period the Company delivers goods or provides services or when the Company’s right to consideration is unconditional. Payment terms on invoiced amounts are typically 30 or 45 days. The balance of accounts receivable, net of allowance for doubtful accounts, as of September 30, 2021 and December 31, 2020 is presented in the accompanying condensed consolidated balance sheets. In situations where revenue recognition occurs before invoicing, an unbilled receivable is created, which represents a contract asset. As of September 30, 2021 and December 31, 2020, contract assets totaling $5.3 million and $4.2 million, respectively, were included in other receivables in the condensed consolidated balance sheets. Costs to obtain and fulfill a contract The Company capitalizes certain incremental contract acquisition costs consisting primarily of commissions paid and the related payroll taxes when customer contracts are signed. The Company determines whether costs should be deferred based on its sales compensation plans if the commissions are incremental and would not have been incurred absent the execution of the customer contract. Sales commissions for renewals of customer contracts are not commensurate with the commissions paid for the acquisition of the initial contract given the substantive difference in commission rates in proportion to their respective contract values. Commissions paid upon the initial acquisition of a contract are amortized over the estimated period of benefit, which may exceed the term of the initial contract. Accordingly, amortization of deferred costs is recognized on a systematic basis that is consistent with the pattern of revenue recognition allocated to each performance obligation and is included in sales and marketing expense in the consolidated statements of operations. The Company determines its estimated period of benefit, up to five years, by evaluating the expected renewals of its customer contracts, the duration of its relationships with its customers and other factors. Deferred costs are periodically reviewed for impairment. In accordance with Topic 340, an entity may elect a practical expedient that allows the entity to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. The Company has elected this practical expedient and recognizes costs paid to obtain contracts as expense when incurred. Changes in the balance of total deferred commissions (contract asset) during the three and nine months ended September 30, 2021 are as follows: (in thousands) June 30, 2021 Additions Commissions Recognized September 30, 2021 Deferred commissions $ 14,854 $ 4,837 $ (2,524) $ 17,167 (in thousands) December 31, 2020 Additions Commissions Recognized September 30, 2021 Deferred commissions $ 12,293 $ 11,624 $ (6,750) $ 17,167 Of the $17.2 million total deferred commissions balance as of September 30, 2021, the Company expects to recognize approximately 36% as commission expense over the next 12 months and the remainder thereafter. Deferred revenue The Company records deferred revenue when cash payments are received in advance of the performance under the contract. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the consolidated balance sheet date. Revenue recognized during the three and nine months ended September 30, 2021 from deferred revenue balances at the beginning of the period was $23.4 million and $52.2 million, respectively. Revenue recognized during the three and nine months ended September 30, 2020 from deferred revenue balances at the beginning of the period was $18.5 million and $46.0 million, respectively. The “contracted but not recognized” performance obligations represent the Company’s deferred revenue and non-cancelable backlog amounts. This balance as of September 30, 2021 was $199.2 million, of which the Company expects to recognize approximately 68% as revenue over the next 12 months and the remainder thereafter.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s cash, cash equivalents and short-term investments are carried at their fair values with any differences from their amortized cost recorded in equity as unrealized gains (losses) on marketable securities. As a basis for determining the fair value of its assets and liabilities, the Company follows a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. During the nine months ended September 30, 2021, there have been no transfers between Level 1 and Level 2 fair value instruments and no transfers out of Level 3. The Company’s money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The fair value of the Company’s Level 2 fixed income securities is obtained from independent pricing services, which may use quoted market prices for identical or comparable instruments or model-driven valuations using observable market data or other inputs, corroborated by observable market data. In addition to its cash, cash equivalents and short-term investments, the Company measures the fair value of its Convertible Senior Notes on a quarterly basis for disclosure purposes. The Company considers the fair value of the Convertible Senior Notes at September 30, 2021 to be a Level 2 measurement due to limited trading activity of the Convertible Senior Notes. Refer to Note 8 to the condensed consolidated financial statements for further information. The agreement for the acquisition of EASE includes contingent payments to the owners of EASE, payable based on achievement of post-acquisition financial metrics. This contingent consideration is a Level 3 fair value measurement, and the valuation of the Company’s contingent consideration obligation was estimated as the present value of total expected contingent consideration payments which are determined using a Monte Carlo simulation. This analysis reflects the contractual terms of the purchase agreements and utilizes assumptions with regard to future sales, probabilities of achieving such future sales, the likelihood and timing of expected payments and a discount rate. Significant increases with respect to assumptions as to future sales and probabilities of achieving such future sales would result in a higher fair value measurement, while an increase in the discount rate would result in a lower fair value measurement. The unobservable inputs in the valuation include revenue volatility of 9%, a risk-free rate of 2.50%, and the amounts are expected to be paid in the second quarters of 2022 and 2023. The fair value adjustment for the contingent consideration of $0.2 million and $(1.1) million for the three and nine months ended September 30, 2021, respectively, was recorded as other income in the condensed consolidated statements of operations. The Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of September 30, 2021 and December 31, 2020, are summarized as follows (in thousands): September 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Money market funds $ 1,845 $ — $ — $ 1,845 $ 363 $ — $ — $ 363 Commercial paper — 79,878 — 79,878 — 21,950 — 21,950 U.S. Treasury securities — — — — — 6,000 — 6,000 Corporate debt securities — 185,520 — 185,520 — 173,277 — 173,277 Total assets measured at fair value $ 1,845 $ 265,398 $ — $ 267,243 $ 363 $ 201,227 $ — $ 201,590 Liabilities Contingent consideration $ — $ — $ 1,873 $ 1,873 $ — $ — $ 2,959 $ 2,959 Total liabilities measured at fair value $ — $ — $ 1,873 $ 1,873 $ — $ — $ 2,959 $ 2,959 The financial accounts that are not subject to recurring fair value measurement include trade and other receivables, prepaid expenses and other current assets, total current liabilities and deferred revenues, both current and long-term. Due to their short maturities, the carrying amounts of these accounts approximate their fair values. The table below provides a roll-forward of the fair value of the Company's liabilities that use significant unobservable inputs (Level 3) (in thousands). Nine months ended September 30, 2021 2020 Beginning balance $ 2,959 $ 2,162 Fair value adjustment for contingent consideration included in earnings (1,086) 8 Ending balance $ 1,873 $ 2,170

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-Term Investments	9 Months Ended
	Sep. 30, 2021
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents and Short-Term Investments	Cash, Cash Equivalents and Short-Term Investments The following tables present cash, cash equivalents and short-term investments (in thousands) as of September 30, 2021 and December 31, 2020: As of September 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Cash $ 37,332 $ — $ — $ 37,332 Money market funds 1,845 — — 1,845 Commercial paper 1,425 — — 1,425 Total cash and cash equivalents 40,602 — — 40,602 Short-term investments: Commercial papers 78,458 6 (11) 78,453 Corporate debt securities 185,547 66 (93) 185,520 Total short-term investments 264,005 72 (104) 263,973 Total cash, cash equivalents and short-term investments $ 304,607 $ 72 $ (104) $ 304,575 As of December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Cash $ 28,613 $ — $ — $ 28,613 Money market funds 363 — — 363 U.S. government agency securities 6,000 — — 6,000 Total cash and cash equivalents 34,976 — — 34,976 Short-term investments: Commercial papers 21,961 — (11) 21,950 Corporate debt securities 172,768 543 (34) 173,277 Total short-term investments 194,729 543 (45) 195,227 Total cash, cash equivalents and short-term investments $ 229,705 $ 543 $ (45) $ 230,203 The Company has determined that no credit losses related to marketable securities were required as of September 30, 2021 and December 31, 2020. The Company’s conclusion is based on the high credit quality of the securities, their short remaining maturity and the Company’s intent and ability to hold such loss securities until maturity. Classification of the cash, cash equivalents and short-term investments by contractual maturity was as follows: (in thousands) One year or shorter Between 1 and 2 years Total Balances as of September 30, 2021 Cash and cash equivalents (1) $ 40,602 $ — $ 40,602 Short-term investments 204,348 59,625 263,973 Cash, cash equivalents and short-term investments $ 244,950 $ 59,625 $ 304,575 Balances as of December 31, 2020 Cash and cash equivalents (1) $ 34,976 $ — $ 34,976 Short-term investments 141,582 53,645 195,227 Cash, cash equivalents and short-term investments $ 176,558 $ 53,645 $ 230,203 (1) Includes demand deposits and other cash, money market funds and other cash equivalent securities, all with 0-90 day maturity at purchase.

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Numerator: Net income (loss) attributable to common stockholders $ 2,077 $ 4,161 $ (7,838) $ (9,777) Denominator: Weighted-average shares used to compute net income (loss) per common share - basic 34,733 32,394 34,108 32,096 Effect of potentially dilutive securities: Employee stock options, including ESPP 124 241 — — Restricted stock units and performance based restricted stock units 889 384 — — Weighted average shares used to compute net income (loss) per common share - diluted 35,746 33,019 34,108 32,096 Net income (loss) per share Basic $ 0.06 $ 0.13 $ (0.23) $ (0.30) Diluted $ 0.06 $ 0.13 $ (0.23) $ (0.30) (a) The Company elected to early adopt ASU 2020-06 as of January 1, 2021 based on a modified retrospective transition method. Under such transition, prior-period information has not been retrospectively adjusted. The following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Options to purchase common stock, including ESPP — — 245 555 Restricted stock units and performance stock units 485 450 2,029 1,972 Convertible senior notes (if-converted) 4,998 — 5,062 —

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill As of September 30, 2021 and December 31, 2020, the Company had $94.8 million and $69.2 million of goodwill, respectively. The addition to goodwill during the nine months ended September 30, 2021 of $25.7 million was based on the purchase price allocations of the acquisition completed in May of 2021 (see Note 12). As of September 30, 2021, there were no changes in circumstances indicating that the carrying values of goodwill or acquired intangibles may not be recoverable. The changes in the carrying amount of goodwill are as follows (in thousands): Balance at December 31, 2020 $ 69,168 Acquired in acquisition (Note 12) 25,678 Adjustments to goodwill (13) Balance at September 30, 2021 $ 94,833 Intangible Assets The fair values for acquired intangible assets were determined by management with consideration of, in part, valuations performed by independent valuation specialists. Acquisition-related intangible assets are amortized either straight-line, or over the life of the assets on a basis that resembles the economic benefit of the assets. This assumption results in amortization that is higher in earlier periods of the useful life. The estimated useful lives and carrying value of acquired intangible assets are as follows: September 30, 2021 December 31, 2020 (in thousands) Weighted Average Gross Accumulated Net Gross Accumulated Net Developed technology 3.0 $ 17,620 $ (11,623) $ 5,997 $ 12,360 $ (10,255) $ 2,105 Customer relationships 8.0 19,640 (8,608) 11,032 16,350 (7,143) 9,207 Backlog 3.8 5,950 (2,121) 3,829 2,240 (1,343) 897 Trademarks 3.0 1,770 (1,356) 414 1,770 (1,191) 579 Intangible assets, net book value $ 44,980 $ (23,708) $ 21,272 $ 32,720 $ (19,932) $ 12,788 Amortization expense was $1.6 million and $0.5 million for the three months ended September 30, 2021 and 2020, respectively. Amortization expense was $3.8 million and $1.2 million for the nine months ended September 30, 2021 and 2020, respectively. Amortization of acquired intangible assets is reflected in the cost of revenue for developed technology and backlog and in operating expenses for the other intangible assets. The estimated future amortization of existing acquired intangible assets as of September 30, 2021 was as follows: (in thousands) Future amortization 2021 (remaining three months) $ 1,601 2022 6,057 2023 5,537 2024 3,506 2025 1,409 2026 1,090 Thereafter 2,072 Future amortization expense $ 21,272

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2021
Balance Sheet Components [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories (in thousands) September 30, December 31, Raw materials $ 1,295 $ 462 Finished goods 6,779 9,697 Total inventories $ 8,074 $ 10,159 Property and equipment, net (in thousands) September 30, December 31, Computer equipment and software $ 16,041 $ 15,912 Furniture, fixtures and equipment 2,880 2,570 Leasehold improvements 5,864 5,306 Manufacturing tools and equipment 2,276 2,506 Construction in process 528 629 Property and equipment, at cost 27,589 26,923 Less: Accumulated depreciation (21,112) (18,820) Property and equipment, net $ 6,477 $ 8,103 Depreciation expense for property and equipment was $1.2 million and $1.1 million for the three months ended September 30, 2021 and 2020, respectively. Depreciation expense for property and equipment was $3.7 million and $3.3 million for the nine months ended September 30, 2021 and 2020, respectively. Net investment in sales-type leases The Company has sales-type leases with terms of 3 to 4 years. Sales-type lease receivables are collateralized by the underlying equipment. The components of the Company’s net investment in sales-type leases are as follows: (in thousands) September 30, December 31, Minimum payments to be received on sales-type leases $ 908 $ 1,440 Less: Unearned interest income and executory revenue portion (440) (731) Net investment in sales-type leases 468 709 Less: Current portion (285) (360) Non-current net investment in sales-type leases $ 183 $ 349 Sales-type lease activity recognized in the condensed consolidated statement of operations are as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Lease revenue $ 361 $ 1,140 $ 1,281 $ 2,693 Less: Cost of lease shipments — (211) (40) (386) Gross profit $ 361 $ 929 $ 1,241 $ 2,307 Interest income (expense), net on lease receivable $ 1 $ (5) $ 3 $ (17) Initial direct cost incurred $ 15 $ 63 $ 54 $ 146 There were no allowances for doubtful accounts on these leases as of September 30, 2021 and December 31, 2020. There is no guaranteed or unguaranteed residual value on the leased equipment. The current and non-current net investments in sales-type leases are reported as components of the condensed consolidated balance sheet captions “other receivables” and “other long-term assets,” respectively. The minimum payments expected to be received for future years under sales-type leases as of September 30, 2021 were as follows: (in thousands) Future lease payments 2021 (remaining three months) $ 168 2022 522 2023 185 2024 33 Total $ 908 Accrued payroll and other current liabilities (in thousands) September 30, December 31, Payroll and related expenses $ 13,886 $ 9,043 Accrued payables 2,166 3,160 Operating lease liabilities, current portion 3,335 2,529 Lease financing, current portion 1,240 1,034 Product warranty 307 453 Customer prepayments 1,437 4,292 Sales and use tax payable 697 476 Other taxes payable 1,598 1,832 Other 347 376 Total accrued payroll and other current liabilities $ 25,013 $ 23,195 The changes in the Company’s product warranty reserve are as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Warranty balance at the beginning of the period $ 433 $ 521 $ 453 $ 420 Warranty expense accrued for shipments during the period 89 98 239 320 Changes in estimate related to pre-existing warranties (188) (161) (314) (151) Warranty settlements made (27) (52) (71) (183) Total product warranty $ 307 $ 406 $ 307 $ 406 Leases The Company has operating leases for office space at its headquarters and subsidiaries under non-cancelable operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet; lease expense for these leases is recognized on a straight-line basis over the lease term. The Company determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which are accounted for as a single lease component. The Company’s leases have remaining lease terms of approximately six months to approximately five years. Operating lease cost, including short-term operating leases was $0.9 million and $0.8 million for the three months ended September 30, 2021 and 2020, respectively and $2.4 million and $2.2 million for the nine months ended September 30, 2021 and 2020, respectively. Supplemental balance sheet information related to leases was as follows: (in thousands) September 30, Other long-term assets 4,155 Accrued payroll and other current liabilities 3,335 Other long-term liabilities 2,120 Total operating lease liabilities $ 5,455 Other information related to leases was as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities $ 1,234 $ 740 $ 3,000 2,184 Right-of-use assets obtained in exchange for lease obligations $ — $ 17 $ 2,096 139 Weighted average remaining lease term 1.99 years 2.26 years 1.99 years 2.26 years Weighted average discount rate 8 % 8 % 8 % 8 % Maturities of lease liabilities as of September 30, 2021 are as follows: (in thousands) Operating leases 2021 (remaining three months) $ 1,131 2022 3,085 2023 902 2024 519 2025 175 2026 74 Total maturities of lease liabilities 5,886 Less imputed interest (431) Total $ 5,455 During the second quarter of 2021, the Company entered into a new lease for its headquarters with lease payments totaling $15.5 million. The Company will have access to the facility starting in the fourth quarter of 2021 and the lease term ends in the second quarter of 2029.

Convertible Senior Notes

Convertible Senior Notes	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior Notes Convertible Senior Notes due 2026 In March 2021, the Company issued $200.0 million aggregate principal amount of its 0.50% Convertible Senior Notes, due 2026 (the “2026 Notes”). The 2026 Notes are unsecured, unsubordinated obligations of the Company and bear interest at a fixed rate of 0.50% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September 15, 2021. The 2026 Notes mature on September 15, 2026, unless converted, redeemed or repurchased in accordance with their terms prior to such date. The Company granted the initial purchasers an overallotment option under the purchase agreement to purchase up to an additional $30.0 million aggregate principal amount of the 2026 Notes to cover overallotments within a 30-day period. The purchasers partially exercised the overallotment option in April 2021 and the Company issued an additional $24.5 million of the 2026 Notes. The Company may not redeem the 2026 Notes prior to March 20, 2024. The Company may redeem for cash all or any portion of the 2026 Notes (subject to the partial redemption limitation (as defined in the indenture governing the 2026 Notes)), at its option, on or after March 20, 2024 if the last reported sale price of common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides a redemption notice at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The 2026 Notes are convertible into cash, shares of Company’s common stock or a combination of cash and shares of common stock, at the Company’s election, at an initial conversion rate of 16.6272 shares of common stock per $1,000 principal amount of the 2026 Notes, which is equal to an initial conversion price of approximately $60.14 per share of common stock. The 2026 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding June 15, 2026, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the 2026 Notes on each applicable trading day (2) during the five business day period after any ten consecutive trading day period in which the trading price per $1,000 principal amount of the 2026 Notes for each trading day of that ten day consecutive trading day period was less than 98% of the product of the last reported sale price of common stock and the conversion rate of the 2026 Notes on such trading day; (3) if the Company calls any or all of the 2026 Notes for redemption, at any time prior to the close of business on the second scheduled trading day prior to the applicable redemption date; or (4) upon the occurrence of specified corporate events. On or after June 15, 2026, holders of the 2026 Notes may convert all or any portion of their 2026 Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, regardless of the foregoing circumstances. If a fundamental change occurs (as set forth in the indenture governing the 2026 Notes), each holder of the 2026 Note shall have the right, at such holder’s option, to require the Company to repurchase for cash all of such their Notes, or any portion of the principal amount, at a repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. During the nine months ended September 30, 2021, the conditions allowing holders of the 2026 Notes to convert have not been met and there were no changes to the initial conversion price of the 2026 Notes. The 2026 Notes are not convertible during the nine months ended September 30, 2021 and are classified as long-term debt. In accounting for the 2026 Notes after adoption of ASU 2020-06, the 2026 Notes are accounted for as a single liability. The carrying amount of the liability component for 2026 Notes is $218.3 million as of September 30, 2021, with principal of $224.5 million, net of unamortized issuance costs of $6.2 million. The costs related to the 2026 Notes are being amortized to interest expense over the contractual term of the 2026 Notes at an effective interest rate of 1.05%. The 2026 Notes and related interest expense consist of the following: (in thousands) September 30, Liability: Principal $ 224,500 Unamortized issuance costs (6,173) Net carrying amount $ 218,327 Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2021 Contractual interest expense $ 281 $ 618 Amortization of issuance costs 307 666 Total interest expense $ 588 $ 1,284 2026 Capped Calls In connection with the pricing of the 2026 Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (the “2026 Capped Calls”). The 2026 Capped Calls have an initial strike price of $60.14 per share, subject to certain adjustments, which correspond to the initial conversion price of the 2026 Notes. The 2026 Capped Calls have initial cap prices of $77.96 per share, subject to certain adjustments. Conditions that cause adjustments to the initial strike price of the 2026 Capped Calls mirror conditions that result in corresponding adjustments for the 2026 Notes. The 2026 Capped Calls are generally intended to reduce or offset the potential dilution to the Company’s common stock upon any conversion of the 2026 Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. For accounting purposes, the 2026 Capped Calls are separate transactions, and not part of the terms of the 2026 Notes. As these transactions meet certain accounting criteria, the 2026 Capped Calls are recorded in stockholders' equity at an amount of $17.4 million and are not accounted for as derivatives. In connection with the partial exercise of the overallotment option and the issuance by the Company of $24.5 million of 2026 Notes on April 5, 2021, the Company entered into $1.9 million of additional privately negotiated capped calls with the same terms as the initial capped calls. Convertible Senior Notes due 2023 In May 2018, the Company issued $143.8 million aggregate principal amount of 1.50% Convertible Senior Notes due May 15, 2023 (the “2023 Notes”), including $18.8 million aggregate principal amount of such notes pursuant to the exercise in full of options granted to the initial purchasers. The 2023 Notes are unsecured, unsubordinated obligations and bear interest at a fixed rate of 1.50% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2018. The total net proceeds from the offering, after deducting initial purchase discounts and estimated debt issuance costs, were approximately $138.9 million. In the first quarter of 2021, the Company used part of the net proceeds from the issuance of the 2026 Notes to retire $102.9 million aggregate principal amount of the 2023 Notes in privately negotiated transactions for consideration of $102.9 million in cash and 1,277,731 shares of the Company’s common stock (the "2023 Note Repurchase Transactions"). The Company separately settled the accrued interest of approximately $0.5 million associated with the retired 2023 Notes in cash. Out of the common stock issued, the Company provided additional issuance of 46,216 shares of the Company’s common stock not provided for under the original conversion terms of the 2023 Notes to induce the holders of the 2023 Notes to agree to the retirement. The Company used cash to settle the principal of the retired 2023 Notes and issued common stock to settle the conversion spread. The 2023 Note Repurchase Transactions met the requirements to be accounted for as an induced conversion. Under the induced conversion guidance, the total fair value of the additional cash and common stock issued to induce conversion is recognized as an inducement expense. The remaining cash and common stock consideration issued under the original terms of the 2023 Notes are accounted for under the general conversion accounting guidance. The 2023 Note Repurchase Transactions resulted in a $2.1 million inducement loss equal to the fair value of the additional common stock issued for inducement and the difference of approximately $1.6 million between the carrying amount of the 2023 Notes retired, including debt issuance costs of $1.6 million, and the cash consideration paid, and the par amount of the common stock issued was recorded in additional paid-in capital. Each $1,000 principal amount of the remaining 2023 Notes is initially convertible into 31.0073 shares of the Company’s common stock (the “2023 Notes Conversion Option”), which is equivalent to an initial conversion price of approximately $32.25 per share, subject to adjustment upon the occurrence of specified events. The 2023 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding February 15, 2023, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2018 (and only during such calendar quarter), if the last reported sale price of the Company common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the 2023 Notes on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period in which the trading price per $1,000 principal amount of the 2023 Notes for each day of that ten day consecutive trading day period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate of the 2023 Notes on such trading day; or (3) upon the occurrence of specified corporate events (as set forth in the indenture governing the 2023 Notes). For at least 20 trading days during the period of 30 consecutive days ended September 30, 2021, the last reported sale price of the Company’s common stock was equal to or exceeded 130% of the conversion price of the 2023 Notes on each applicable trading day. As a result, the 2023 Notes are convertible at the option of the holders during the fiscal quarter ending December 31, 2021; and were classified as current liabilities on the unaudited condensed balance sheet as of September 30, 2021. On or after February 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2023 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. If certain specified fundamental changes occur (as set forth in the indenture governing the 2023 Notes) prior to the maturity date, holders of the 2023 Notes may require the Company to repurchase for cash all or any portion of their Notes at a repurchase price equal to 100% of the principal amount of the 2023 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events occur prior to the applicable maturity date, the Company will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event in certain circumstances. Prior to the adoption of the ASU 2020-06 on January 1, 2021 and in accounting for the issuance of the 2023 Notes, the 2023 Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated conversion feature. The carrying amount of the equity component representing the 2023 Conversion Option was $33.4 million and was determined by deducting the fair value of the liability components from the par value of the 2023 Notes. The equity component was recorded in additional paid-in-capital and was not re-measured as long as they continued to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (the “Debt Discount”) was amortized to interest expense over the contractual term of the 2023 Notes at an effective interest rate of 7.6%. Prior to the adoption of the ASU 2020-06 on January 1, 2021 and in accounting for the debt issuance costs of $4.9 million related to the 2023 Notes, the Company allocated the total amount incurred to the liability and equity components of the 2023 Notes based on their relative values. Issuance costs attributable to the liability component were $3.8 million and were amortized to interest expense using the effective interest method over the contractual term of the 2023 Notes. Issuance costs attributable to the equity components were netted with the equity component in additional paid-in-capital. The Company elected to early adopt ASU 2020-06 as of January 1, 2021 based on a modified retrospective transition method. Under such transition, prior-period information has not been retrospectively adjusted. In accounting for the 2023 Notes after adoption of ASU 2020-06, the 2023 Notes are accounted for as a single liability. The carrying amount of the liability component for 2023 Notes is $40.3 million as of September 30, 2021, with principal of $40.8 million, net of debt issuance cost of $0.5 million. The issuance costs related to the 2023 Notes are being amortized to interest expense over the contractual term of the 2023 Notes at an effective interest rate 2.19%. The 2023 Notes and related interest expense consist of the following: (in thousands) September 30, December 31, Liability: Principal $ 40,804 $ 143,750 Unamortized debt discount — (17,411) Unamortized issuance costs (466) (1,963) Net carrying amount $ 40,338 $ 124,376 Stockholders’ equity: Debt discount for conversion option $ — $ 33,350 Issuance costs — (1,136) Net carrying amount $ — $ 32,214 Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Contractual interest expense $ 153 $ 539 $ 770 $ 1,617 Amortization of debt discount — 1,644 — 4,793 Amortization of issuance costs 71 185 329 540 Total interest expense $ 224 $ 2,368 $ 1,099 $ 6,950 The total estimated fair value of the 2023 and 2026 Notes (“the Notes”) as of September 30, 2021 was approximately $290.0 million. The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. The fair value of the Notes is primarily affected by the trading price of the Company’s common stock and market interest rates. 2023 Capped Calls In connection with the pricing of the 2023 Notes, the Company entered into privately negotiated capped call transactions with certain counterparties, the “2023 Capped Calls.” The 2023 Capped Calls entered into with the 2023 Notes are still outstanding and each have an initial strike price of approximately $32.25 per share, subject to certain adjustments, which correspond to the initial conversion price of the 2023 Notes. The 2023 Capped Calls have initial cap prices of $38.94 per share, subject to certain adjustments. The 2023 Capped Calls cover, subject to anti-dilution adjustments, approximately 4.5 million shares of the Company’s common stock. Conditions that cause adjustments to the initial strike price of the Capped Calls mirror conditions that result in corresponding adjustments for the 2023 Notes. The 2023 Capped Calls are generally intended to reduce or offset the potential dilution to the Company’s common stock upon any conversion of the 2023 Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. For accounting purposes, the 2023 Capped Calls are separate transactions, and not part of the terms of the 2023 Notes. As these transactions meet certain accounting criteria, the 2023 Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The cost of $8.9 million incurred in connection with the 2023 Capped Calls was recorded as a reduction to additional paid-in capital. The 2023 Capped Calls were not impacted by the 2023 Note Repurchase Transactions and continue to remain outstanding. The net impact to the Company’s stockholders' equity, included in additional paid-in capital, of the above components of the 2023 Notes is as follows: (in thousands) December 31, Conversion option $ 33,350 Purchase of capped calls (8,907) Issuance costs (1,136) Total $ 23,307 Impact on Earnings Per Share Prior to the adoption of ASU 2020-06, the Company used the treasury stock method for calculating any potential dilutive effect of the conversion spread of its 2023 Notes. Under the treasury stock method, in periods when the Company reports net income, the Company is required to include the effect of additional shares that may be issued under the 2023 Notes when the price of its’ common stock exceeds the conversion price. The conversion spread on the 2023 convertible senior notes had an anti-dilutive impact during the nine months ended September 30, 2020, since the average market price of the Company’s common stock during the period did not exceed the initial conversion price per share for the 2023 Notes and the Company was in a net loss position.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Non-cancelable Material Commitments The Company is required to purchase unused, non-cancelable, non-returnable raw material inventory that was purchased by its contract manufacturers based on committed finished goods orders from the Company, certain long lead-time raw materials based on the Company’s forecast and current work-in-progress materials. As of September 30, 2021 and December 31, 2020, approxi matel y $7.8 million an d $6.1 million, respectively, of such inventory was purchased and held by the third-party manufacturers which was subject to these purchase guarantees. Indemnifications The Company undertakes, in the ordinary course of business, to (i) defend customers and other parties from certain third-party claims associated with allegations of trade secret misappropriation, infringement of copyright, patent or other intellectual property rights, tortious damage to persons or property or breaches of certain Company obligations relating to confidentiality (e.g., safeguarding protected health information) and (ii) indemnify and hold harmless such parties from certain resulting damages, costs and other liabilities. The term of these undertakings may be perpetual and the maximum potential liability of the Company under certain of these undertakings is not determinable. Based on its historical experience, the Company believes the liability associated with these undertakings is minimal. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The Company currently has directors and officers insurance. As there has been no significant history of losses, no expense accrual has been made. Litigation From time to time, the Company may be involved in lawsuits, claims, investigations and proceedings, consisting of intellectual property, commercial, employment and other matters which arise in the ordinary course of business. The Company defends itself vigorously against any such claims. Although the outcome of these matters is currently not determinable, management expects that any losses from existing matters that are probable or reasonably possible of being incurred as a result of these matters would not be material to the financial statements as a whole.

Stock-based Compensation and Aw

Stock-based Compensation and Awards	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock-based Compensation and Award	Stock-based Compensation and Awards Valuation Assumptions Compensation expense for all share-based payment awards, including stock options, restricted stock units (“RSUs”), and performance stock units (“PSUs”), is measured based on the estimated fair value of the award on the grant date over the related vesting or performance periods. We estimate the fair value of our stock-based awards as follows: Restricted Stock Units. The fair value of restricted stock units is determined based on the quoted market price of our common stock on the date of grant. Performance Stock Units. Performance stock units consist of grants of performance-based restricted stock units to certain members of executive management that vest contingent upon the achievement of pre-determined market and service conditions (referred to herein as “performance stock units”). The fair value of our performance stock units is estimated using a Monte-Carlo simulation model which is a probabilistic approach for calculating the fair value of the awards. The Monte-Carlo simulation is a statistical technique used, in this instance, to simulate future stock prices of the Company relative to constituents in the S&P 600 Health Care Equipment and Services Index. Key assumptions for the Monte-Carlo simulation model are the risk-free interest rate, expected volatility, expected dividends and correlation coefficient. Stock Options and Employee Stock Purchase Plan . The fair value of stock options and stock purchase rights granted pursuant to our equity incentive plans and our 2012 Employee Stock Purchase Plan (ESPP), respectively, is estimated using the Black-Scholes valuation model based on the multiple-award valuation method. Key assumptions of the Black-Scholes valuation model are the risk-free interest rate, expected volatility, expected term and expected dividends. The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant for the expected term of the option. Expected volatility is based on a combination of historical stock price volatility. An expected term is estimated based on historical exercise behavior, post-vesting termination patterns, options outstanding and future expected exercise behavior. Stock Option Activity The following table summarizes the combined stock option activity under the 2000 Plan, the 2006 Plan, the 2012 Plan, the 2021 Plan and non-plan stock option agreements for the nine months ended September 30, 2021: Options Outstanding Number of options Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value (in years) (in thousands) Outstanding at December 31, 2020 299,031 $ 15.58 2.68 $ 7,761 Options exercised (139,777) 15.89 Options canceled (9,431) 16.77 Outstanding at September 30, 2021 149,823 $ 15.21 2.16 $ 4,577 At September 30, 2021, there was no unrecognized compensation cost related to options. We did not grant any stock options during the nine months ended September 30, 2021. As of September 30, 2021, there were 1,233,032 shares that remained available for future issuance of options, restricted stock units (“RSUs”) or other equity awards under the 2012 Equity Incentive Plan. Employee Stock Purchase Plan In March 2012, the Company’s 2012 Employee Stock Purchase Plan (the “ESPP”) was approved. During the nine months ended September 30, 2021 employees purchased 77,538 shares of common stock at an average price of $27.68 per share. During the nine months ended September 30, 2020 employees purchased 126,046 shares of common stock at an average price of $15.60 per share. As of September 30, 2021, there were 1,198,413 shares available for future issuance under the ESPP. The Company uses the Black-Scholes option-pricing model to calculate the fair value of periodic ESPP offerings on their offer date. The following assumptions were used for each respective period for the ESPP: Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Expected term (in years) 0.50 0.50 0.50 0.50 Volatility 54.2% 54.14% 54.2% - 55% 50.0% - 54.14% Risk-free interest rate 0.03% 0.15% 0.03% - 0.12% 0.15% - 1.59% Dividend yield 0% 0% 0% 0% Restricted Stock Units and Performance Stock Units The Company issues RSUs and PSUs as part of its compensation plans. A summary of RSU and PSU activity for the nine months ended September 30, 2021 is presented below: Restricted Stock Units and Performance Stock Units Number of shares Weighted Average Grant Date Fair Value per Share Outstanding at December 31, 2020 2,140,763 $ 25.16 Granted 1,145,351 42.19 Vested (930,718) 24.72 Forfeited (200,744) 28.78 Outstanding at September 30, 2021 2,154,652 $ 34.06 At September 30, 2021, there was $57.8 million of unrecognized compensation cost related to RSUs and PSUs, which is expected to be recognized over a weighted-average period of 1.87 years. During the third quarter of fiscal year 2021 and the second quarter of fiscal year 2020 the Company granted 144,523 and 145,877 PSUs, respectively to certain executives under the 2021 Equity Incentive plan (the “2021 Plan”) and the 2012 Equity Incentive Plan (the “2012 Plan”), respectively. PSUs are contingent on the achievement of our comparative market-based returns. On the date of grant, the fair value of the total shareholder return (TSR) component of the PSUs is estimated using a Monte Carlo valuation model. The PSUs will vest over an approximate three-year performance period. The number of shares the PSU holder receives is based on the extent to which the corresponding market conditions have been achieved. For awards subject to service and market conditions, the number of shares of our stock issued pursuant to the award can range from 0% to 200% of the target amount. Compensation expense for awards with performance-based and service-based conditions is recognized over the requisite service period. These grants were reduced from shares of common stock reserved for issuance under stock plans as if 200% of the target amount were achieved. The assumptions used to determine the fair value are level 3 fair value measurements which include unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. The assumptions used in the Monte Carlo valuation model to value the PSUs were as follows: Grant Date Grant date fair value per share $ 61.18 Expected term (in years) 2.92 Volatility 49.75 % Risk-free interest rate 0.45 % Dividend yield — % Grant Date Grant date fair value per share $ 30.70 Expected term (in years) 3.00 Volatility 42.68 % Risk-free interest rate 0.20 % Dividend yield — % Allocation of Stock-Based Compensation Expense The following table presents the allocation of stock-based compensation expense: Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Cost of revenue $ 1,411 $ 1,042 $ 3,890 $ 3,129 Research and development 1,222 1,046 3,455 3,035 Sales and marketing 2,876 2,037 7,633 5,858 General and administrative 3,094 2,554 7,610 6,864 Total stock-based compensation $ 8,603 $ 6,679 $ 22,588 $ 18,886

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded a $0.5 million expense and $1.5 million benefit for income taxes for the nine months ended September 30, 2021 and 2020, respectively. The provision for income taxes for the nine months ended September 30, 2021 was primarily due to foreign income and withholding taxes. The benefit for the nine months ended September 30, 2020 was primarily due to the release of a valuation allowance as a result of the EASE acquisition. As of September 30, 2021, the Company has provided a valuation allowance against certain federal and state deferred tax assets. Management continues to evaluate the realizability of deferred tax assets and the related valuation allowance. If management's assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which management makes the determination. On March 11, 2021 the American Rescue Plan Act of 2021 (the “Act”) was enacted and signed into law. The Act contains several tax provisions, including expansion of employment tax credits. The Company is currently evaluating the impact of the Act on its consolidated financial statements, but does not expect the tax provisions will result in a material impact to the Company’s tax position.

Business Acquisitions

Business Acquisitions	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Business Acquisitions	Business AcquisitionsAcquisition of PatientSafe Solutions, Inc. On May 4, 2021, the Company acquired all of the outstanding equity interest of PatientSafe for approximately $36.0 million in cash, net of cash acquired of $0.2 million. PatientSafe provides a clinical communication and collaboration (CC&C) solution for smartphones that is engineered to run in the cloud. The solution is designed for hospitals and health systems that have invested in their electronic health record (EHR) mobile workflow software, are smartphone centric, and prefer a cloud-based CC&C solution. The solution enhances care team mobility and efficiency at the point of care through effective, reliable communication and clinical workflows. Nurses can document to the EHR while receiving filtered, prioritized alarm and task notifications. Physicians can communicate with the nurses and team members supporting their patients. Two-way communication with a hospital’s EHR system enables clinicians to complete certain documentation and manage patient-centric communication from their smartphones. Currently the PatientSafe solutions are marketed and sold under the Vocera Edge brand. The following table presents the preliminary fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date: (in thousands, except useful lives) Estimated Fair Value Estimated Useful life (in years) Assets Current assets $ 1,540 Restricted cash 598 Fixed assets, net 208 Operating lease right-of-use asset 2,089 Other assets 74 Intangibles assets Customer relationships 3,290 8 Developed technology 5,260 3 Backlog 3,710 4 Goodwill 25,665 Total assets $ 42,434 Liabilities Current liabilities 3,642 Deferred revenue 1,774 Operating lease liabilities, long term 906 Other long-term liabilities 112 Total liabilities 6,434 Net assets acquired $ 36,000 The estimated fair values of identifiable intangible assets were primarily determined using discounted cash flow models. The estimation of the fair value of the intangible assets required the use of valuation techniques and entailed consideration of all the relevant factors that might affect the fair value, such as present value factors and estimates of future revenues and costs. The amortization of developed technology and backlog is recorded in "cost of revenues" for product and the amortization for the remaining intangibles is recorded in "sales and marketing" expenses on the condensed consolidated statement of operations. The excess of the acquisition consideration over the fair values of the underlying net assets acquired was recorded as goodwill. Goodwill is largely attributed to the synergy of PatientSafe’s proprietary solutions with the Company’s existing customer base, dedicated sales force and cross selling opportunities with the Company’s other solutions. Goodwill is not amortized but is instead tested for impairment at least annually or more frequently if indicators of impairment are present. The goodwill acquired as part of the acquisition is not deductible for tax purposes. The Company incurred $3.9 million of acquisition-related costs in the nine months ended September 30, 2021 that were expensed as incurred. These costs are recorded as general and administrative expenses in the consolidated statement of operations. The acquisition did not result in material contributions to revenue in the condensed consolidated financial statements in the nine months ended September 30, 2021 and due to the continued integration of the combined businesses, it was impractical to determine the impact of the acquisition on earnings. Additionally, pro forma financial information is not provided for consolidated revenue and net income as such amounts attributable to PatientSafe were insignificant to the Company’s condensed consolidated financial statements taken as a whole. Acquisition of EASE Applications, LLC On August 18, 2020, the Company acquired all of the outstanding equity interest of EASE Applications for $24.2 million in cash, net of $0.3 million of cash acquired. EASE Applications, now called Vocera Ease, offers a cloud-based communication platform and mobile application built to improve the patient experience by enabling friends and family members to receive timely updates about the progress of their loved one in the hospital. Vocera Ease enables nurses and other care team members to send Health Insurance and Portability and Accountability Act ("HIPAA")-compliant texts, photos, and video updates to patients’ loved ones, putting them at ease and saving valuable time. With this acquisition, Vocera further strengthened its ability to fulfill its mission to improve the lives of patients, families and care teams. The following table presents the preliminary fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date: (in thousands, except useful lives) Fair value acquired Useful life (years) Assets Current Assets Accounts receivable, net $ 444 Prepaid expenses and other current assets 18 Total current assets 462 Intangibles assets Customer relationships 5,430 8 Developed technology 2,310 3 Trademarks 660 3 Backlog 840 4 Goodwill 19,922 Total assets $ 29,624 Liabilities Current liabilities Accounts payable $ 6 Accrued payroll and other current liabilities 22 Deferred revenue, current 1,011 Total current liabilities 1,039 Deferred revenue, long term 149 Other long-term liabilities 4,218 Total liabilities 5,406 Net assets acquired $ 24,218 The estimated fair values of identifiable intangible assets were primarily determined using discounted cash flow models. The estimation of the fair value of the intangible assets required the use of valuation techniques and entailed consideration of all the relevant factors that might affect the fair value, such as present value factors and estimates of future revenues and costs. The amortization of developed technology and backlog is recorded in "cost of revenues" for product and the amortization for the remaining intangibles is recorded in "sales and marketing" expenses on the consolidated statement of operations. The excess of the acquisition consideration over the fair values of the underlying net assets acquired was recorded as goodwill. Goodwill is largely attributed to the synergy of EASE Applications proprietary solutions with the Company’s existing customer base, dedicated sales force and cross selling opportunities with the Company’s other solutions. Goodwill is not amortized but instead is tested for impairment at least annually or more frequently if indicators of impairment are present. The agreement also included contingent payments to the owners of EASE Applications, payable based on achievement of post-acquisition financial metrics as of December 31, 2021 and December 31, 2022. If these financial metrics are achieved the Company will owe additional purchase price consideration of $2.5 million as of December 31, 2021 and 2022. This contingent consideration was fair valued in connection with the acquisition and resulted in a liability of $2.2 million as of the acquisition date. The estimated fair value was determined using a Monte Carlo valuation model.

The Company and Summary of Si_2

The Company and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission, and include the accounts of Vocera and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The year-end condensed consolidated balance sheet data was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s interim consolidated financial information. The results for the quarter presented are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any other interim period or any other future year. Except for the change in certain accounting policies upon adoption of the accounting standards described below, there have been no material changes to the Company’s significant accounting policies compared to the accounting policies presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. The estimates include, but are not limited to, revenue recognition, warranty reserves, allowance for doubtful accounts, inventory reserves, bonuses, goodwill and intangible assets, stock-based compensation expense, provisions for income taxes, contingent consideration, and contingencies. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations.
Reclassifications	Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. These reclassifications had no impact on the previously reported net loss or accumulated deficit.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06 related to the accounting for debt with conversion features. The amendments in this update simplify the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amends the guidance for the derivatives scope
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s cash, cash equivalents and short-term investments are carried at their fair values with any differences from their amortized cost recorded in equity as unrealized gains (losses) on marketable securities. As a basis for determining the fair value of its assets and liabilities, the Company follows a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. During the nine months ended September 30, 2021, there have been no transfers between Level 1 and Level 2 fair value instruments and no transfers out of Level 3. The Company’s money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The fair value of the Company’s Level 2 fixed income securities is obtained from independent pricing services, which may use quoted market prices for identical or comparable instruments or model-driven valuations using observable market data or other inputs, corroborated by observable market data. In addition to its cash, cash equivalents and short-term investments, the Company measures the fair value of its Convertible Senior Notes on a quarterly basis for disclosure purposes. The Company considers the fair value of the Convertible Senior Notes at September 30, 2021 to be a Level 2 measurement due to limited trading activity of the Convertible Senior Notes. Refer to Note 8 to the condensed consolidated financial statements for further information. The agreement for the acquisition of EASE includes contingent payments to the owners of EASE, payable based on achievement of post-acquisition financial metrics. This contingent consideration is a Level 3 fair value measurement, and the valuation of the Company’s contingent consideration obligation was estimated as the present value of total expected contingent consideration payments which are determined using a Monte Carlo simulation. This analysis reflects the contractual terms of
Goodwill and Intangible Assets	Goodwill As of September 30, 2021 and December 31, 2020, the Company had $94.8 million and $69.2 million of goodwill, respectively. The addition to goodwill during the nine months ended September 30, 2021 of $25.7 million was based on the purchase price allocations of the acquisition completed in May of 2021 (see Note 12). As of September 30, 2021, there were no changes in circumstances indicating that the carrying values of goodwill or acquired intangibles may not be recoverable.
Non-cancelable Material Commitments	Non-cancelable Material CommitmentsThe Company is required to purchase unused, non-cancelable, non-returnable raw material inventory that was purchased by its contract manufacturers based on committed finished goods orders from the Company, certain long lead-time raw materials based on the Company’s forecast and current work-in-progress materials.

Revenue, Deferred Revenue and_2

Revenue, Deferred Revenue and Deferred Commissions (Tables)	9 Months Ended
	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Disaggregation of Revenue A typical sales arrangement involves multiple elements, such as sales of the Company’s proprietary communication device ("Vocera Badge"), perpetual and time-based software licenses, professional services, cloud-based subscription software, and support services which entitles customers to unspecified upgrades, patch releases and telephone-based support. The following table depicts the disaggregation of revenue according to revenue type and is consistent with how the Company evaluates its financial performance: Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Product revenue Device $ 20,650 $ 17,027 $ 52,179 $ 48,030 Software 12,286 11,483 31,709 22,281 Total product 32,936 28,510 83,888 70,311 Service revenue Subscription and support 25,069 20,387 68,669 57,450 Professional services and training 5,563 4,918 15,859 14,074 Total service 30,632 25,305 84,528 71,524 Total revenue $ 63,568 $ 53,815 $ 168,416 $ 141,835
Deferred Commissions and Revenue	Changes in the balance of total deferred commissions (contract asset) during the three and nine months ended September 30, 2021 are as follows: (in thousands) June 30, 2021 Additions Commissions Recognized September 30, 2021 Deferred commissions $ 14,854 $ 4,837 $ (2,524) $ 17,167 (in thousands) December 31, 2020 Additions Commissions Recognized September 30, 2021 Deferred commissions $ 12,293 $ 11,624 $ (6,750) $ 17,167

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	The Company’s assets that are measured at fair value on a recurring basis, by level, within the fair value hierarchy as of September 30, 2021 and December 31, 2020, are summarized as follows (in thousands): September 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Money market funds $ 1,845 $ — $ — $ 1,845 $ 363 $ — $ — $ 363 Commercial paper — 79,878 — 79,878 — 21,950 — 21,950 U.S. Treasury securities — — — — — 6,000 — 6,000 Corporate debt securities — 185,520 — 185,520 — 173,277 — 173,277 Total assets measured at fair value $ 1,845 $ 265,398 $ — $ 267,243 $ 363 $ 201,227 $ — $ 201,590 Liabilities Contingent consideration $ — $ — $ 1,873 $ 1,873 $ — $ — $ 2,959 $ 2,959 Total liabilities measured at fair value $ — $ — $ 1,873 $ 1,873 $ — $ — $ 2,959 $ 2,959
Roll-Forward of Fair Value Of Level 3 Liabilities	The table below provides a roll-forward of the fair value of the Company's liabilities that use significant unobservable inputs (Level 3) (in thousands). Nine months ended September 30, 2021 2020 Beginning balance $ 2,959 $ 2,162 Fair value adjustment for contingent consideration included in earnings (1,086) 8 Ending balance $ 1,873 $ 2,170

Cash, Cash Equivalents and Sh_2

Cash, Cash Equivalents and Short-Term Investments (Tables)	9 Months Ended
	Sep. 30, 2021
Cash and Cash Equivalents [Abstract]
Schedule of Cash, Cash Equivalents and Short-Term Investments	The following tables present cash, cash equivalents and short-term investments (in thousands) as of September 30, 2021 and December 31, 2020: As of September 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Cash $ 37,332 $ — $ — $ 37,332 Money market funds 1,845 — — 1,845 Commercial paper 1,425 — — 1,425 Total cash and cash equivalents 40,602 — — 40,602 Short-term investments: Commercial papers 78,458 6 (11) 78,453 Corporate debt securities 185,547 66 (93) 185,520 Total short-term investments 264,005 72 (104) 263,973 Total cash, cash equivalents and short-term investments $ 304,607 $ 72 $ (104) $ 304,575 As of December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair value Cash and cash equivalents: Cash $ 28,613 $ — $ — $ 28,613 Money market funds 363 — — 363 U.S. government agency securities 6,000 — — 6,000 Total cash and cash equivalents 34,976 — — 34,976 Short-term investments: Commercial papers 21,961 — (11) 21,950 Corporate debt securities 172,768 543 (34) 173,277 Total short-term investments 194,729 543 (45) 195,227 Total cash, cash equivalents and short-term investments $ 229,705 $ 543 $ (45) $ 230,203
Classification of Cash, Cash Equivalents and Short-Term Investments by Contractual Maturity	Classification of the cash, cash equivalents and short-term investments by contractual maturity was as follows: (in thousands) One year or shorter Between 1 and 2 years Total Balances as of September 30, 2021 Cash and cash equivalents (1) $ 40,602 $ — $ 40,602 Short-term investments 204,348 59,625 263,973 Cash, cash equivalents and short-term investments $ 244,950 $ 59,625 $ 304,575 Balances as of December 31, 2020 Cash and cash equivalents (1) $ 34,976 $ — $ 34,976 Short-term investments 141,582 53,645 195,227 Cash, cash equivalents and short-term investments $ 176,558 $ 53,645 $ 230,203 (1) Includes demand deposits and other cash, money market funds and other cash equivalent securities, all with 0-90 day maturity at purchase.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Schedule Of Basic And Diluted Net Income (Loss) Per Share	The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Numerator: Net income (loss) attributable to common stockholders $ 2,077 $ 4,161 $ (7,838) $ (9,777) Denominator: Weighted-average shares used to compute net income (loss) per common share - basic 34,733 32,394 34,108 32,096 Effect of potentially dilutive securities: Employee stock options, including ESPP 124 241 — — Restricted stock units and performance based restricted stock units 889 384 — — Weighted average shares used to compute net income (loss) per common share - diluted 35,746 33,019 34,108 32,096 Net income (loss) per share Basic $ 0.06 $ 0.13 $ (0.23) $ (0.30) Diluted $ 0.06 $ 0.13 $ (0.23) $ (0.30)
Schedule Of Antidilutive Securities Excluded From Net Loss Per Share	The following securities were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Options to purchase common stock, including ESPP — — 245 555 Restricted stock units and performance stock units 485 450 2,029 1,972 Convertible senior notes (if-converted) 4,998 — 5,062 —

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in the carrying amount of goodwill are as follows (in thousands): Balance at December 31, 2020 $ 69,168 Acquired in acquisition (Note 12) 25,678 Adjustments to goodwill (13) Balance at September 30, 2021 $ 94,833
Schedule of Finite-Lived Intangible Assets	The estimated useful lives and carrying value of acquired intangible assets are as follows: September 30, 2021 December 31, 2020 (in thousands) Weighted Average Gross Accumulated Net Gross Accumulated Net Developed technology 3.0 $ 17,620 $ (11,623) $ 5,997 $ 12,360 $ (10,255) $ 2,105 Customer relationships 8.0 19,640 (8,608) 11,032 16,350 (7,143) 9,207 Backlog 3.8 5,950 (2,121) 3,829 2,240 (1,343) 897 Trademarks 3.0 1,770 (1,356) 414 1,770 (1,191) 579 Intangible assets, net book value $ 44,980 $ (23,708) $ 21,272 $ 32,720 $ (19,932) $ 12,788
Schedule of Estimated Future Amortization of Existing Acquired Intangible Assets	The estimated future amortization of existing acquired intangible assets as of September 30, 2021 was as follows: (in thousands) Future amortization 2021 (remaining three months) $ 1,601 2022 6,057 2023 5,537 2024 3,506 2025 1,409 2026 1,090 Thereafter 2,072 Future amortization expense $ 21,272

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2021
Balance Sheet Components [Abstract]
Inventories	Inventories (in thousands) September 30, December 31, Raw materials $ 1,295 $ 462 Finished goods 6,779 9,697 Total inventories $ 8,074 $ 10,159
Property and Equipment, net	Property and equipment, net (in thousands) September 30, December 31, Computer equipment and software $ 16,041 $ 15,912 Furniture, fixtures and equipment 2,880 2,570 Leasehold improvements 5,864 5,306 Manufacturing tools and equipment 2,276 2,506 Construction in process 528 629 Property and equipment, at cost 27,589 26,923 Less: Accumulated depreciation (21,112) (18,820) Property and equipment, net $ 6,477 $ 8,103
Components of Net Investment in Sales-type Leases	The components of the Company’s net investment in sales-type leases are as follows: (in thousands) September 30, December 31, Minimum payments to be received on sales-type leases $ 908 $ 1,440 Less: Unearned interest income and executory revenue portion (440) (731) Net investment in sales-type leases 468 709 Less: Current portion (285) (360) Non-current net investment in sales-type leases $ 183 $ 349
Schedule of Sales-type Lease Activity	Sales-type lease activity recognized in the condensed consolidated statement of operations are as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Lease revenue $ 361 $ 1,140 $ 1,281 $ 2,693 Less: Cost of lease shipments — (211) (40) (386) Gross profit $ 361 $ 929 $ 1,241 $ 2,307 Interest income (expense), net on lease receivable $ 1 $ (5) $ 3 $ (17) Initial direct cost incurred $ 15 $ 63 $ 54 $ 146
Minimum Payments Expected Under Sales-type Leases	The minimum payments expected to be received for future years under sales-type leases as of September 30, 2021 were as follows: (in thousands) Future lease payments 2021 (remaining three months) $ 168 2022 522 2023 185 2024 33 Total $ 908
Schedule of Accrued Payroll And Other Current Liabilities	Accrued payroll and other current liabilities (in thousands) September 30, December 31, Payroll and related expenses $ 13,886 $ 9,043 Accrued payables 2,166 3,160 Operating lease liabilities, current portion 3,335 2,529 Lease financing, current portion 1,240 1,034 Product warranty 307 453 Customer prepayments 1,437 4,292 Sales and use tax payable 697 476 Other taxes payable 1,598 1,832 Other 347 376 Total accrued payroll and other current liabilities $ 25,013 $ 23,195
Schedule of Product Warranty Reserve	The changes in the Company’s product warranty reserve are as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Warranty balance at the beginning of the period $ 433 $ 521 $ 453 $ 420 Warranty expense accrued for shipments during the period 89 98 239 320 Changes in estimate related to pre-existing warranties (188) (161) (314) (151) Warranty settlements made (27) (52) (71) (183) Total product warranty $ 307 $ 406 $ 307 $ 406
Supplemental Balance Sheet and Other Information	Supplemental balance sheet information related to leases was as follows: (in thousands) September 30, Other long-term assets 4,155 Accrued payroll and other current liabilities 3,335 Other long-term liabilities 2,120 Total operating lease liabilities $ 5,455 Other information related to leases was as follows: Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities $ 1,234 $ 740 $ 3,000 2,184 Right-of-use assets obtained in exchange for lease obligations $ — $ 17 $ 2,096 139 Weighted average remaining lease term 1.99 years 2.26 years 1.99 years 2.26 years Weighted average discount rate 8 % 8 % 8 % 8 %
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities as of September 30, 2021 are as follows: (in thousands) Operating leases 2021 (remaining three months) $ 1,131 2022 3,085 2023 902 2024 519 2025 175 2026 74 Total maturities of lease liabilities 5,886 Less imputed interest (431) Total $ 5,455

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Schedule of Notes	The 2026 Notes and related interest expense consist of the following: (in thousands) September 30, Liability: Principal $ 224,500 Unamortized issuance costs (6,173) Net carrying amount $ 218,327 Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2021 Contractual interest expense $ 281 $ 618 Amortization of issuance costs 307 666 Total interest expense $ 588 $ 1,284 (in thousands) September 30, December 31, Liability: Principal $ 40,804 $ 143,750 Unamortized debt discount — (17,411) Unamortized issuance costs (466) (1,963) Net carrying amount $ 40,338 $ 124,376 Stockholders’ equity: Debt discount for conversion option $ — $ 33,350 Issuance costs — (1,136) Net carrying amount $ — $ 32,214 Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Contractual interest expense $ 153 $ 539 $ 770 $ 1,617 Amortization of debt discount — 1,644 — 4,793 Amortization of issuance costs 71 185 329 540 Total interest expense $ 224 $ 2,368 $ 1,099 $ 6,950
Schedule of Interest Expense Related to the Notes	The net impact to the Company’s stockholders' equity, included in additional paid-in capital, of the above components of the 2023 Notes is as follows: (in thousands) December 31, Conversion option $ 33,350 Purchase of capped calls (8,907) Issuance costs (1,136) Total $ 23,307

Stock-based Compensation and _2

Stock-based Compensation and Awards (Tables)	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Summary Of Stock Option Activity	The following table summarizes the combined stock option activity under the 2000 Plan, the 2006 Plan, the 2012 Plan, the 2021 Plan and non-plan stock option agreements for the nine months ended September 30, 2021: Options Outstanding Number of options Weighted average exercise price Weighted average remaining contractual term Aggregate intrinsic value (in years) (in thousands) Outstanding at December 31, 2020 299,031 $ 15.58 2.68 $ 7,761 Options exercised (139,777) 15.89 Options canceled (9,431) 16.77 Outstanding at September 30, 2021 149,823 $ 15.21 2.16 $ 4,577
ESPP Valuation Assumptions	The following assumptions were used for each respective period for the ESPP: Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Expected term (in years) 0.50 0.50 0.50 0.50 Volatility 54.2% 54.14% 54.2% - 55% 50.0% - 54.14% Risk-free interest rate 0.03% 0.15% 0.03% - 0.12% 0.15% - 1.59% Dividend yield 0% 0% 0% 0%
Summary of RSU and PSU Activity	A summary of RSU and PSU activity for the nine months ended September 30, 2021 is presented below: Restricted Stock Units and Performance Stock Units Number of shares Weighted Average Grant Date Fair Value per Share Outstanding at December 31, 2020 2,140,763 $ 25.16 Granted 1,145,351 42.19 Vested (930,718) 24.72 Forfeited (200,744) 28.78 Outstanding at September 30, 2021 2,154,652 $ 34.06
PSU Valuation Assumptions	The assumptions used in the Monte Carlo valuation model to value the PSUs were as follows: Grant Date Grant date fair value per share $ 61.18 Expected term (in years) 2.92 Volatility 49.75 % Risk-free interest rate 0.45 % Dividend yield — % Grant Date Grant date fair value per share $ 30.70 Expected term (in years) 3.00 Volatility 42.68 % Risk-free interest rate 0.20 % Dividend yield — %
Allocation of Stock-based Compensation Expense	The following table presents the allocation of stock-based compensation expense: Three months ended September 30, Nine months ended September 30, (in thousands) 2021 2020 2021 2020 Cost of revenue $ 1,411 $ 1,042 $ 3,890 $ 3,129 Research and development 1,222 1,046 3,455 3,035 Sales and marketing 2,876 2,037 7,633 5,858 General and administrative 3,094 2,554 7,610 6,864 Total stock-based compensation $ 8,603 $ 6,679 $ 22,588 $ 18,886

Business Acquisitions (Tables)

Business Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Schedule of Identifiable Assets Acquired and Liabilities Assumed	The following table presents the preliminary fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date: (in thousands, except useful lives) Estimated Fair Value Estimated Useful life (in years) Assets Current assets $ 1,540 Restricted cash 598 Fixed assets, net 208 Operating lease right-of-use asset 2,089 Other assets 74 Intangibles assets Customer relationships 3,290 8 Developed technology 5,260 3 Backlog 3,710 4 Goodwill 25,665 Total assets $ 42,434 Liabilities Current liabilities 3,642 Deferred revenue 1,774 Operating lease liabilities, long term 906 Other long-term liabilities 112 Total liabilities 6,434 Net assets acquired $ 36,000 The following table presents the preliminary fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date: (in thousands, except useful lives) Fair value acquired Useful life (years) Assets Current Assets Accounts receivable, net $ 444 Prepaid expenses and other current assets 18 Total current assets 462 Intangibles assets Customer relationships 5,430 8 Developed technology 2,310 3 Trademarks 660 3 Backlog 840 4 Goodwill 19,922 Total assets $ 29,624 Liabilities Current liabilities Accounts payable $ 6 Accrued payroll and other current liabilities 22 Deferred revenue, current 1,011 Total current liabilities 1,039 Deferred revenue, long term 149 Other long-term liabilities 4,218 Total liabilities 5,406 Net assets acquired $ 24,218

The Company and Summary of Si_3

The Company and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jan. 01, 2021	Dec. 31, 2020
Change in Accounting Estimate [Line Items]
Convertible senior notes, net	$ 218,327		$ 124,376
Accumulated deficit	(152,602)		(159,982)
Additional paid-in capital	$ 304,931		$ 340,515
Cumulative effect
Change in Accounting Estimate [Line Items]
Convertible senior notes, net		$ 17,000
Accumulated deficit		15,200
Additional paid-in capital		$ 32,200

Revenue, Deferred Revenue and_3

Revenue, Deferred Revenue and Deferred Commissions - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 63,568	$ 53,815	$ 168,416	$ 141,835
Product revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	32,936	28,510	83,888	70,311
Product revenue | Device
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	20,650	17,027	52,179	48,030
Product revenue | Software
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	12,286	11,483	31,709	22,281
Service revenue
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	30,632	25,305	84,528	71,524
Service revenue | Subscription and support
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	25,069	20,387	68,669	57,450
Service revenue | Professional services and training
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 5,563	$ 4,918	$ 15,859	$ 14,074

Revenue, Deferred Revenue and_4

Revenue, Deferred Revenue and Deferred Commissions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020
Contract with Customer, Payment Terms [Line Items]
Contract assets	$ 5,300		$ 5,300			$ 4,200
Estimated period of benefit	5 years		5 years
Deferred commissions	$ 17,167		$ 17,167		$ 14,854	$ 12,293
Percentage of deferred commissions to be recognized as commission expense in the next 12 months	36.00%		36.00%
Revenue recognized amount	$ 23,400	$ 18,500	$ 52,200	$ 46,000
Deferred revenue and backlog	$ 199,200		$ 199,200
Percentage of deferred revenue to be recognized over the next 12 months	68.00%		68.00%
Minimum
Contract with Customer, Payment Terms [Line Items]
Payment terms on invoiced amounts			30 days
Maximum
Contract with Customer, Payment Terms [Line Items]
Payment terms on invoiced amounts			45 days

Revenue, Deferred Revenue and_5

Revenue, Deferred Revenue and Deferred Commissions - Significant Changes in Deferred Commissions (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Change in Contract with Customer, Asset [Roll Forward]
Beginning balance	$ 14,854	$ 12,293
Additions	4,837	11,624
Commissions Recognized	(2,524)	(6,750)
Ending balance	$ 17,167	$ 17,167

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Narrative (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2021USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration fair value adjustment	$ 0.2	$ (1.1)
Revenue volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability, unobservable inputs	0.09	0.09
Risk free interest rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability, unobservable inputs	0.0250	0.0250

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 40,602	$ 34,976
Short-term investments	263,973	195,227
Corporate debt securities
Assets
Short-term investments	185,520	173,277
Money market funds
Assets
Cash and cash equivalents	1,845	363
Recurring
Assets
Total assets measured at fair value	267,243	201,590
Liabilities
Contingent consideration	1,873	2,959
Total liabilities measured at fair value	1,873	2,959
Recurring | Level 1
Assets
Total assets measured at fair value	1,845	363
Liabilities
Contingent consideration	0	0
Total liabilities measured at fair value	0	0
Recurring | Level 2
Assets
Total assets measured at fair value	265,398	201,227
Liabilities
Contingent consideration	0	0
Total liabilities measured at fair value	0	0
Recurring | Level 3
Assets
Total assets measured at fair value	0	0
Liabilities
Contingent consideration	1,873	2,959
Total liabilities measured at fair value	1,873	2,959
Recurring | Commercial paper
Assets
Short-term investments	79,878	21,950
Recurring | Commercial paper | Level 1
Assets
Short-term investments	0	0
Recurring | Commercial paper | Level 2
Assets
Short-term investments	79,878	21,950
Recurring | Commercial paper | Level 3
Assets
Short-term investments	0	0
Recurring | U.S. Treasury securities
Assets
Short-term investments	0	6,000
Recurring | U.S. Treasury securities | Level 1
Assets
Short-term investments	0	0
Recurring | U.S. Treasury securities | Level 2
Assets
Short-term investments	0	6,000
Recurring | U.S. Treasury securities | Level 3
Assets
Short-term investments	0	0
Recurring | Corporate debt securities
Assets
Short-term investments	185,520	173,277
Recurring | Corporate debt securities | Level 1
Assets
Short-term investments	0	0
Recurring | Corporate debt securities | Level 2
Assets
Short-term investments	185,520	173,277
Recurring | Corporate debt securities | Level 3
Assets
Short-term investments	0	0
Recurring | Money market funds
Assets
Cash and cash equivalents	1,845	363
Recurring | Money market funds | Level 1
Assets
Cash and cash equivalents	1,845	363
Recurring | Money market funds | Level 2
Assets
Cash and cash equivalents	0	0
Recurring | Money market funds | Level 3
Assets
Cash and cash equivalents	$ 0	$ 0

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Unobservable Input Reconciliation (Details) - Recurring - Level 3 - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 2,959	$ 2,162
Fair value adjustment for contingent consideration included in earnings	(1,086)	8
Ending balance	$ 1,873	$ 2,170

Cash, Cash Equivalents and Sh_3

Cash, Cash Equivalents and Short-Term Investments - Schedule of Cash, Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Cash and cash equivalents:
Amortized Cost	$ 40,602	$ 34,976
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair value	40,602	34,976
Short-term investments:
Amortized Cost	264,005	194,729
Unrealized Gains	72	543
Unrealized Losses	(104)	(45)
Fair value	263,973	195,227
Total cash, cash equivalents and short-term investments
Amortized Cost	304,607	229,705
Unrealized Gains	72	543
Unrealized Losses	(104)	(45)
Fair value	304,575	230,203
Commercial papers
Short-term investments:
Amortized Cost	78,458	21,961
Unrealized Gains	6	0
Unrealized Losses	(11)	(11)
Fair value	78,453	21,950
Corporate debt securities
Short-term investments:
Amortized Cost	185,547	172,768
Unrealized Gains	66	543
Unrealized Losses	(93)	(34)
Fair value	185,520	173,277
Cash
Cash and cash equivalents:
Amortized Cost	37,332	28,613
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair value	37,332	28,613
Money market funds
Cash and cash equivalents:
Amortized Cost	1,845	363
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair value	1,845	363
Commercial papers
Cash and cash equivalents:
Amortized Cost	1,425
Unrealized Gains	0
Unrealized Losses	0
Fair value	$ 1,425
U.S. government agency securities
Cash and cash equivalents:
Amortized Cost		6,000
Unrealized Gains		0
Unrealized Losses		0
Fair value		$ 6,000

Cash, Cash Equivalents and Sh_4

Cash, Cash Equivalents and Short-Term Investments - Classification of Cash, Cash Equivalents and Short-Term Investments by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Cash and cash equivalents	$ 40,602	$ 34,976
Short-term investments	263,973	195,227
Cash, cash equivalents and short-term investments	304,575	230,203
One year or shorter
Debt Securities, Available-for-sale [Line Items]
Cash and cash equivalents	40,602	34,976
Short-term investments	204,348	141,582
Cash, cash equivalents and short-term investments	244,950	176,558
Between 1 and 2 years
Debt Securities, Available-for-sale [Line Items]
Cash and cash equivalents	0	0
Short-term investments	59,625	53,645
Cash, cash equivalents and short-term investments	$ 59,625	$ 53,645

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Basic and Diluted Net income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net income (loss) attributable to common stockholders	$ 2,077	$ (2,282)	$ (7,633)	$ 4,161	$ (3,468)	$ (10,470)	$ (7,838)	$ (9,777)
Denominator:
Weighted-average shares used to compute net income (loss) per share - basic (in shares)	34,733			32,394			34,108	32,096
Weighted-average shares used to compute net income (loss) per share - diluted (in shares)	35,746			33,019			34,108	32,096
Net income (loss) per share
Basic (in dollars per share)	$ 0.06			$ 0.13			$ (0.23)	$ (0.30)
Diluted (in dollars per share)	$ 0.06			$ 0.13			$ (0.23)	$ (0.30)
Employee stock options, including ESPP
Denominator:
Effect of potentially dilutive securities (in shares)	124			241			0	0
Restricted stock units and performance based restricted stock units
Denominator:
Effect of potentially dilutive securities (in shares)	889			384			0	0

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive Securities Excluded From Computation Of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Employee stock options, including ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	0	0	245	555
Restricted stock units and performance based restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	485	450	2,029	1,972
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	4,998	0	5,062	0	5,000

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 94,833		$ 94,833		$ 69,168
Addition to goodwill			25,678
Amortization expense	$ 1,600	$ 500	$ 3,800	$ 1,200

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)
Goodwill [Roll Forward]
Balance at December 31, 2020	$ 69,168
Acquired in acquisition (Note 12)	25,678
Adjustments to goodwill	(13)
Balance at September 30, 2021	$ 94,833

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 44,980	$ 32,720
Accumulated Amortization	(23,708)	(19,932)
Net Carrying Amount	$ 21,272	12,788
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life (years)	3 years
Gross Carrying Amount	$ 17,620	12,360
Accumulated Amortization	(11,623)	(10,255)
Net Carrying Amount	$ 5,997	2,105
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life (years)	8 years
Gross Carrying Amount	$ 19,640	16,350
Accumulated Amortization	(8,608)	(7,143)
Net Carrying Amount	$ 11,032	9,207
Backlog
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life (years)	3 years 9 months 18 days
Gross Carrying Amount	$ 5,950	2,240
Accumulated Amortization	(2,121)	(1,343)
Net Carrying Amount	$ 3,829	897
Trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life (years)	3 years
Gross Carrying Amount	$ 1,770	1,770
Accumulated Amortization	(1,356)	(1,191)
Net Carrying Amount	$ 414	$ 579

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Future Amortization Schedule (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2021 (remaining three months)	$ 1,601
2022	6,057
2023	5,537
2024	3,506
2025	1,409
2026	1,090
Thereafter	2,072
Net Carrying Amount	$ 21,272	$ 12,788

Balance Sheet Components - Inve

Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Balance Sheet Components [Abstract]
Raw materials	$ 1,295	$ 462
Finished goods	6,779	9,697
Total inventories	$ 8,074	$ 10,159

Balance Sheet Components - Prop

Balance Sheet Components - Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	$ 27,589		$ 27,589		$ 26,923
Less: Accumulated depreciation	(21,112)		(21,112)		(18,820)
Property and equipment, net	6,477		6,477		8,103
Depreciation	1,200	$ 1,100	3,700	$ 3,300
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	16,041		16,041		15,912
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	2,880		2,880		2,570
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	5,864		5,864		5,306
Manufacturing tools and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	2,276		2,276		2,506
Construction in process
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	$ 528		$ 528		$ 629

Balance Sheet Components - In_2

Balance Sheet Components - Investment in Sales Type Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Schedule of Sales-type and Direct Financing Leases [Line Items]
Total	$ 908	$ 1,440
Less: Unearned interest income and executory revenue portion	(440)	(731)
Minimum payments to be received on sales-type leases	468	709
Less: Current portion	(285)	(360)
Non-current net investment in sales-type leases	$ 183	$ 349
Minimum
Schedule of Sales-type and Direct Financing Leases [Line Items]
Lease term	3 years
Maximum
Schedule of Sales-type and Direct Financing Leases [Line Items]
Lease term	4 years

Balance Sheet Components - Sale

Balance Sheet Components - Sales Type Lease Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Balance Sheet Components [Abstract]
Lease revenue	$ 361	$ 1,140	$ 1,281	$ 2,693
Less: Cost of lease shipments	0	(211)	(40)	(386)
Gross profit	361	929	1,241	2,307
Interest income (expense), net on lease receivable	1	(5)	3	(17)
Initial direct cost incurred	$ 15	$ 63	$ 54	$ 146

Balance Sheet Components - Futu

Balance Sheet Components - Future Payments- Sales Type Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Balance Sheet Components [Abstract]
2021 (remaining three months)	$ 168
2022	522
2023	185
2024	33
Total	$ 908	$ 1,440

Balance Sheet Components - Sche

Balance Sheet Components - Schedule Of Accrued Payroll And Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Balance Sheet Components [Abstract]
Payroll and related expenses	$ 13,886	$ 9,043
Accrued payables	2,166	3,160
Operating lease liabilities, current portion	3,335	2,529
Lease financing, current portion	1,240	1,034
Product warranty	307	453
Customer prepayments	1,437	4,292
Sales and use tax payable	697	476
Other taxes payable	1,598	1,832
Other	347	376
Total accrued payroll and other current liabilities	$ 25,013	$ 23,195

Balance Sheet Components - Sc_2

Balance Sheet Components - Schedule of Product Liability (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Warranty balance at the beginning of the period	$ 433	$ 521	$ 453	$ 420
Warranty expense accrued for shipments during the period	89	98	239	320
Changes in estimate related to pre-existing warranties	(188)	(161)	(314)	(151)
Warranty settlements made	(27)	(52)	(71)	(183)
Total product warranty	$ 307	$ 406	$ 307	$ 406

Balance Sheet Components - Leas

Balance Sheet Components - Leases (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Lessee, Lease, Description [Line Items]
Other long-term assets	$ 0.9	$ 0.8	$ 2.4	$ 2.2
Minimum
Lessee, Lease, Description [Line Items]
Operating lease remaining term (years)	6 months		6 months
Maximum
Lessee, Lease, Description [Line Items]
Operating lease remaining term (years)	5 years		5 years

Balance Sheet Components - Supp

Balance Sheet Components - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Balance Sheet Components [Abstract]
Other long-term assets	$ 4,155
Accrued payroll and other current liabilities	3,335	$ 2,529
Other long-term liabilities	2,120
Total operating lease liabilities	$ 5,455
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other long-term assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued payroll and other current liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities

Balance Sheet Components - Othe

Balance Sheet Components - Other Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Balance Sheet Components [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 1,234	$ 740	$ 3,000	$ 2,184
Right-of-use assets obtained in exchange for lease obligations	$ 0	$ 17	$ 2,096	$ 139
Weighted average remaining lease term	1 year 11 months 26 days	2 years 3 months 3 days	1 year 11 months 26 days	2 years 3 months 3 days
Weighted average discount rate	8.00%	8.00%	8.00%	8.00%

Balance Sheet Components - Matu

Balance Sheet Components - Maturities of Leases (Details) $ in Thousands	Sep. 30, 2021USD ($)
Balance Sheet Components [Abstract]
2021 (remaining three months)	$ 1,131
2022	3,085
2023	902
2024	519
2025	175
2026	74
Total maturities of lease liabilities	5,886
Less imputed interest	(431)
Total operating lease liabilities	$ 5,455

Balance Sheet Components - Le_2

Balance Sheet Components - Lease Not Yet Commenced (Details) $ in Millions	Jun. 30, 2021USD ($)
Balance Sheet Components [Abstract]
Lease not yet commenced	$ 15.5

Convertible Senior Notes - Conv

Convertible Senior Notes - Convertible Senior Notes due 2026 (Details) - Convertible Debt - Convertible Senior Notes, due 2026	1 Months Ended
	Mar. 31, 2021USD ($)day$ / shares	Sep. 30, 2021USD ($)	Apr. 30, 2021USD ($)
Debt Instrument [Line Items]
Principal | $	$ 200,000,000	$ 224,500,000
Stated interest rate	0.50%
Overallotment option | $	$ 30,000,000
Overallotments period	30 days
Overallotment option exercised | $			$ 24,500,000
Percent of conversion price triggering conversion feature	130.00%
Convertible debt, threshold trading days	20
Convertible debt, threshold consecutive trading days	30
Redemption price percentage	100.00%
Conversion ratio	0.0166272
Convertible debt, conversion price (in dollars per share) | $ / shares	$ 60.14
Carrying amount of debt | $		218,300,000
Unamortized issuance costs | $		$ 6,200,000
Effective interest rate		1.05%
Conversion option one
Debt Instrument [Line Items]
Percent of conversion price triggering conversion feature	130.00%
Convertible debt, threshold trading days	20
Convertible debt, threshold consecutive trading days	30
Conversion option two
Debt Instrument [Line Items]
Percent of conversion price triggering conversion feature	98.00%
Convertible debt, threshold trading days	5
Convertible debt, threshold consecutive trading days	10
Conversion option three
Debt Instrument [Line Items]
Redemption price percentage	100.00%

Convertible Senior Notes - 2026

Convertible Senior Notes - 2026 Notes And Related Interest Expense (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Liability:
Convertible senior notes, net	$ 218,327,000	$ 218,327,000		$ 124,376,000
Convertible Debt | Convertible Senior Notes, due 2026
Liability:
Principal	224,500,000	224,500,000	$ 200,000,000
Unamortized issuance costs	(6,173,000)	(6,173,000)
Convertible senior notes, net	218,327,000	218,327,000
Interest Expense [Abstract]
Contractual interest expense	281,000	618,000
Amortization of issuance costs	307,000	666,000
Total interest expense	$ 588,000	$ 1,284,000

Convertible Senior Notes - 20_2

Convertible Senior Notes - 2026 Capped Calls (Details) - USD ($) $ / shares in Units, $ in Millions	Sep. 30, 2021	Apr. 05, 2021	May 31, 2018
Debt Instrument [Line Items]
Capped Calls, initial strike price (in dollars per share)	$ 60.14		$ 32.25
Capped Calls, initial cap price (in dollars per share)	$ 77.96		$ 38.94
Additional privately negotiated capped calls		$ 1.9
Convertible Debt | Convertible Senior Notes Due 2026 At 0.50%, Option Portion
Debt Instrument [Line Items]
Debt discount for conversion option	$ 17.4
Overallotment option exercised		$ 24.5

Convertible Senior Notes - Co_2

Convertible Senior Notes - Convertible Senior Notes due 2023 (Details) $ / shares in Units, $ in Thousands	Dec. 31, 2020USD ($)	May 31, 2018USD ($)day$ / shares	Sep. 30, 2021USD ($)day	Mar. 31, 2021USD ($)shares	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Jan. 01, 2021USD ($)
Debt Instrument [Line Items]
Convertible senior notes converted to equity					$ 477	$ 0
Convertible senior notes, net	$ 124,376		$ 218,327		218,327
Convertible Debt | Convertible Senior Notes, due 2023
Debt Instrument [Line Items]
Principal	143,750	$ 143,800	40,804		40,804
Stated interest rate		1.50%
Proceeds from issuance of convertible senior notes, net of issuance costs		$ 138,900
Aggregate principal amount retired in conversion				$ 102,900
Convertible senior notes converted to equity				$ 102,900
Converted instrument, shares issued | shares				1,277,731
Accrued interest				$ 500
Inducement loss				2,100
Loss on extinguishment of debt				1,600
Write off of unamortized debt issuance cost				$ 1,600
Conversion ratio		0.0310073
Convertible debt, conversion price (in dollars per share) | $ / shares		$ 32.25
Conversion option	$ 33,350		0		0		$ 33,400
Debt discount effective interest rate	7.60%
Debt issuance costs	$ 4,900		500		500
Issuance costs	1,136		0		0		$ 3,800
Convertible senior notes, net	124,376		$ 40,338		$ 40,338
Effective interest rate			2.19%		2.19%
Convertible Debt | Convertible Senior Notes, due 2023 | Conversion option one
Debt Instrument [Line Items]
Convertible debt, threshold trading days | day		20	20
Convertible debt, threshold consecutive trading days | day		30	30
Percent of conversion price triggering conversion feature		130.00%	130.00%
Convertible Debt | Convertible Senior Notes, due 2023 | Conversion option two
Debt Instrument [Line Items]
Convertible debt, threshold trading days | day		5
Convertible debt, threshold consecutive trading days | day		10
Percent of conversion price triggering conversion feature		98.00%
Convertible Debt | Convertible Senior Notes, due 2023 | Conversion option three
Debt Instrument [Line Items]
Redemption price percentage		100.00%
Convertible Debt | Convertible Senior Notes, inducement, due 2023
Debt Instrument [Line Items]
Additional issuance (in shares) | shares				46,216
Convertible Debt | Convertible Senior Notes At 1.50%, Option Portion
Debt Instrument [Line Items]
Principal		$ 18,800
Conversion option	$ 33,350
Convertible Debt | The Notes
Debt Instrument [Line Items]
Estimated fair value of the Notes			$ 290,000		$ 290,000

Convertible Senior Notes - 2023

Convertible Senior Notes - 2023 Notes and Related Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jan. 01, 2021	Dec. 31, 2020	May 31, 2018
Debt Instrument [Line Items]
Convertible senior notes, net	$ 218,327		$ 218,327			$ 124,376
Convertible Debt | Convertible Senior Notes, due 2023
Debt Instrument [Line Items]
Principal	40,804		40,804			143,750	$ 143,800
Unamortized issuance costs	0		0			(17,411)
Unamortized issuance costs	(466)		(466)			(1,963)
Convertible senior notes, net	40,338		40,338			124,376
Conversion option	0		0		$ 33,400	33,350
Issuance costs	0		0		$ (3,800)	(1,136)
Net carrying amount	0		0			$ 32,214
Contractual interest expense	153	$ 539	770	$ 1,617
Amortization of debt discount	0	1,644	0	4,793
Amortization of issuance costs	71	185	329	540
Total interest expense	$ 224	$ 2,368	$ 1,099	$ 6,950

Convertible Senior Notes - 20_3

Convertible Senior Notes - 2023 Capped Calls (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended
	May 31, 2018	Sep. 30, 2021
Debt Disclosure [Abstract]
Capped Calls, initial strike price (in dollars per share)	$ 32.25	$ 60.14
Capped Calls, initial cap price (in dollars per share)	$ 38.94	$ 77.96
Capped Calls, number of shares covered	4.5
Payment for purchase of capped calls	$ 8.9

Convertible Senior Notes - Net

Convertible Senior Notes - Net Impact To The Company’s Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	May 31, 2018	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Purchase of capped calls	$ (8,900)
2023 and 2026 Notes
Debt Instrument [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount		4,998	0	5,062	0	5,000
Convertible Debt | Convertible Senior Notes At 1.50%, Option Portion
Debt Instrument [Line Items]
Conversion option						$ 33,350
Purchase of capped calls						(8,907)
Issuance costs						(1,136)
Total						$ 23,307

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Inventories
Unrecorded Unconditional Purchase Obligation [Line Items]
Purchase obligation	$ 7.8	$ 6.1

Stock-based Compensation and _3

Stock-based Compensation and Awards - Stock Option Activity (Details) - Option $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares
Number of options
Beginning balance (in shares) | shares	299,031
Options exercised (in shares) | shares	(139,777)
Options canceled (in shares) | shares	(9,431)
Ending balance (in shares) | shares	149,823	299,031
Weighted average exercise price
Beginning balance (in dollars per share) | $ / shares	$ 15.58
Options exercises (in dollars per share) | $ / shares	15.89
Options canceled (in dollars per share) | $ / shares	16.77
Ending balance (in dollars per share) | $ / shares	$ 15.21	$ 15.58
Weighted average remaining contractual term (in years)	2 years 1 month 28 days	2 years 8 months 4 days
Aggregate intrinsic value | $	$ 4,577	$ 7,761

Stock-based Compensation and _4

Stock-based Compensation and Awards - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 0		$ 0
Options granted (in shares)			0
Options, RSUs and other equity awards | 2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	1,233,032		1,233,032
ESPP | 2012 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock purchased (in shares)			77,538	126,046
Average price of shares purchased (in dollars per share)	$ 27.68		$ 27.68	$ 15.60
Shares available for future issuance (in shares)	1,198,413		1,198,413
Restricted Stock Units and Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 57,800,000		$ 57,800,000
Weighted-average recognition period (in years)			1 year 10 months 13 days
Granted (in shares)			1,145,351
PSUs | 2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		145,877
Vesting period			3 years
PSUs | 2012 Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued, percentage of target			0.00%
PSUs | 2012 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued, percentage of target			200.00%
PSUs | 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	144,523

Stock-based Compensation and _5

Stock-based Compensation and Awards - ESPP Valuation Assumptions (Details) - 2012 ESPP - ESPP	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Equity B-S-M Fair Value Assumptions
Expected term (in years)	6 months	6 months	6 months	6 months
Volatility	54.20%	54.14%
Risk-free interest rate	0.03%	0.15%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Minimum
Equity B-S-M Fair Value Assumptions
Volatility			54.20%	50.00%
Risk-free interest rate			0.03%	0.15%
Maximum
Equity B-S-M Fair Value Assumptions
Volatility			55.00%	54.14%
Risk-free interest rate			0.12%	1.59%

Stock-based Compensation and _6

Stock-based Compensation and Awards - Summary of Restricted Stock Activity (Details) - Restricted Stock Units and Performance Stock Units	9 Months Ended
	Sep. 30, 2021$ / sharesshares
Number of Shares:
Beginning balance (in shares) | shares	2,140,763
Granted (in shares) | shares	1,145,351
Vested (in shares) | shares	(930,718)
Forfeited (in shares) | shares	(200,744)
Ending balance (in shares) | shares	2,154,652
Weighted Average Grant Date Fair Value per Share (in dollars per share):
Beginning balance (in dollars per share) | $ / shares	$ 25.16
Grant (in dollars per share) | $ / shares	42.19
Vested (in dollars per share) | $ / shares	24.72
Forfeited (in dollars per share) | $ / shares	28.78
Ending balance (in dollars per share) | $ / shares	$ 34.06

Stock-based Compensation and _7

Stock-based Compensation and Awards - Stock-based Compensation and Awards PSU Valuation Assumptions (Details) - PSUs - $ / shares	Jul. 01, 2021	Jun. 01, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value per share (in dollars per share)	$ 61.18	$ 30.70
Expected term (in years)	2 years 11 months 1 day	3 years
Volatility	49.75%	42.68%
Risk-free interest rate	0.45%	0.20%
Dividend yield	0.00%	0.00%

Stock-based Compensation and _8

Stock-based Compensation and Awards - Share-based Compensation Allocated to Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 8,603	$ 6,679	$ 22,588	$ 18,886
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,411	1,042	3,890	3,129
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,222	1,046	3,455	3,035
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	2,876	2,037	7,633	5,858
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3,094	$ 2,554	$ 7,610	$ 6,864

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 178	$ (1,604)	$ 512	$ (1,523)

Business Acquisitions - Narrati

Business Acquisitions - Narrative (Details) - USD ($)	May 04, 2021	Aug. 18, 2020
PatientSafe Solutions
Business Acquisition [Line Items]
Payments to acquire businesses	$ 36,000,000
Cash acquired	200,000
Goodwill deductible for tax purposes	0
Acquisition-related costs	$ 3,900,000
EASE Applications
Business Acquisition [Line Items]
Payments to acquire businesses		$ 24,200,000
Cash acquired		300,000
Acquisition-related costs		600,000
Contingent consideration, maximum		2,500,000
Contingent consideration		$ 2,200,000
Employee retention plan, potential additional compensation, term		2 years
Employee retention plan, potential additional compensation		$ 5,000,000

Business Acquisitions - Identif

Business Acquisitions - Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	May 04, 2021	Aug. 18, 2020	Sep. 30, 2021	Dec. 31, 2020
Intangibles assets
Goodwill			$ 94,833	$ 69,168
Customer relationships
Intangibles assets
Weighted Average Useful Life (years)			8 years
Developed technology
Intangibles assets
Weighted Average Useful Life (years)			3 years
Backlog
Intangibles assets
Weighted Average Useful Life (years)			3 years 9 months 18 days
PatientSafe Solutions
Assets
Current assets	$ 1,540
Restricted cash	598
Fixed assets, net	208
Operating lease right-of-use asset	2,089
Other assets	74
Intangibles assets
Total assets	42,434
Liabilities
Current liabilities	3,642
Deferred revenue	1,774
Operating lease liabilities, long term	906
Other long-term liabilities	112
Total liabilities	6,434
Net assets acquired	36,000
PatientSafe Solutions | Customer relationships
Intangibles assets
Intangible assets	$ 3,290
Weighted Average Useful Life (years)	8 years
PatientSafe Solutions | Developed technology
Intangibles assets
Intangible assets	$ 5,260
Weighted Average Useful Life (years)	3 years
PatientSafe Solutions | Backlog
Intangibles assets
Intangible assets	$ 3,710
Weighted Average Useful Life (years)	4 years
Goodwill	$ 25,665
EASE Applications
Assets
Accounts receivable, net		$ 444
Prepaid expenses and other current assets		18
Current assets		462
Intangibles assets
Goodwill		19,922
Total assets		29,624
Liabilities
Accounts payable		6
Accrued compensation		22
Deferred revenue, current		1,011
Current liabilities		1,039
Deferred revenue, long term		149
Other long-term liabilities		4,218
Total liabilities		5,406
Net assets acquired		24,218
EASE Applications | Customer relationships
Intangibles assets
Intangible assets		$ 5,430
Weighted Average Useful Life (years)		8 years
EASE Applications | Developed technology
Intangibles assets
Intangible assets		$ 2,310
Weighted Average Useful Life (years)		3 years
EASE Applications | Trademarks
Intangibles assets
Intangible assets		$ 660
Weighted Average Useful Life (years)		3 years
EASE Applications | Backlog
Intangibles assets
Intangible assets		$ 840
Weighted Average Useful Life (years)		4 years