ChannelAdvisor (ECOM) 10-Q 8 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 23, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Registrant Name	CHANNELADVISOR CORP
Entity Central Index Key	1,169,652
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		27,312,269

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 48,890	$ 53,422
Accounts receivable, net of allowance of $945 and $609 as of September 30, 2018 and December 31, 2017, respectively	21,712	27,452
Prepaid expenses and other current assets	8,569	16,462
Total current assets	79,171	97,336
Property and equipment, net	12,964	10,877
Goodwill	23,486	23,486
Intangible assets, net	2,046	2,503
Deferred contract costs, net of current portion	10,425	0
Long-term deferred tax assets, net	4,536	5,550
Other assets	1,490	759
Total assets	134,118	140,511
Current liabilities:
Accounts payable	1,868	7,243
Accrued expenses	9,258	12,611
Deferred revenue	25,651	27,143
Other current liabilities	4,243	4,477
Total current liabilities	41,020	51,474
Long-term capital leases, net of current portion	1,404	641
Lease incentive obligation	2,348	3,328
Other long-term liabilities	2,530	3,157
Total liabilities	47,302	58,600
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding as of September 30, 2018 and December 31, 2017	0	0
Common stock, $0.001 par value, 100,000,000 shares authorized, 27,311,469 and 26,601,626 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively	27	27
Additional paid-in capital	269,149	262,805
Accumulated other comprehensive loss	(1,521)	(789)
Accumulated deficit	(180,839)	(180,132)
Total stockholders' equity	86,816	81,911
Total liabilities and stockholders' equity	$ 134,118	$ 140,511

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Allowance for doubtful accounts receivable, current	$ 945	$ 609
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
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)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	27,311,469	26,601,626
Common stock, shares outstanding (in shares)	27,311,469	26,601,626

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenue		$ 32,324	$ 30,097	$ 96,429	$ 88,430
Cost of revenue	[1]	7,606	7,309	21,934	22,149
Gross profit		24,718	22,788	74,495	66,281
Operating expenses:
Sales and marketing	[1]	14,921	14,805	45,785	44,993
Research and development		5,350	5,760	16,989	15,878
General and administrative		6,688	6,344	19,847	21,552
Total operating expenses		26,959	26,909	82,621	82,423
Loss from operations		(2,241)	(4,121)	(8,126)	(16,142)
Other income (expense):
Interest income (expense), net		120	67	351	149
Other income (expense), net		22	36	2	106
Total other income (expense)		142	103	353	255
Loss before income taxes		(2,099)	(4,018)	(7,773)	(15,887)
Income tax expense		188	37	435	209
Net loss		$ (2,287)	$ (4,055)	$ (8,208)	$ (16,096)
Net loss per share:
Basic and diluted (in dollars per share)		$ (0.08)	$ (0.15)	$ (0.30)	$ (0.61)
Weighted average common shares outstanding:
Basic and diluted (in shares)		27,294,134	26,439,830	27,073,332	26,293,650
[1]	Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no impact on reported operating loss or net loss for the period. Refer to Note 2, "Significant Accounting Policies," for further detail.

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (2,287)	$ (4,055)	$ (8,208)	$ (16,096)
Other comprehensive income (loss):
Foreign currency translation adjustments	(250)	184	(732)	719
Total comprehensive loss	$ (2,537)	$ (3,871)	$ (8,940)	$ (15,377)

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities
Net loss	$ (8,208)	$ (16,096)
Adjustments to reconcile net loss to cash and cash equivalents provided by (used in) operating activities:
Depreciation and amortization	4,509	5,041
Bad debt expense	1,036	271
Stock-based compensation expense	8,023	9,132
Deferred income taxes	373	154
Other items, net	(667)	(653)
Changes in assets and liabilities, net of effects from acquisition:
Accounts receivable	4,451	(1,674)
Prepaid expenses and other assets	10,588	(1,370)
Deferred contract costs	(5,325)	0
Accounts payable and accrued expenses	(11,164)	(51)
Deferred revenue	(2,514)	3,042
Cash and cash equivalents provided by (used in) operating activities	1,102	(2,204)
Cash flows from investing activities
Purchases of property and equipment	(1,586)	(2,427)
Payment of internal-use software development costs	(579)	(224)
Acquisition, net of cash acquired	0	(2,177)
Cash and cash equivalents used in investing activities	(2,165)	(4,828)
Cash flows from financing activities
Repayment of capital leases	(2,092)	(2,586)
Proceeds from exercise of stock options	1,086	625
Payment of statutory tax withholding related to net-share settlement of restricted stock units	(2,130)	(2,581)
Cash and cash equivalents used in financing activities	(3,136)	(4,542)
Effect of currency exchange rate changes on cash and cash equivalents	(333)	332
Net decrease in cash and cash equivalents	(4,532)	(11,242)
Cash and cash equivalents, beginning of period	53,422	65,420
Cash and cash equivalents, end of period	48,890	54,178
Supplemental disclosure of cash flow information
Cash paid for interest	26	99
Cash paid for income taxes, net	81	151
Supplemental disclosure of noncash investing and financing activities
Accrued statutory tax withholding related to net-share settlement of restricted stock units	635	0
Accrued capital expenditures	361	54
Capital lease obligations entered into for the purchase of fixed assets	$ 4,217	$ 567

Description of the Business

Description of the Business	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF THE BUSINESS	DESCRIPTION OF THE BUSINESS ChannelAdvisor Corporation ("ChannelAdvisor" or the "Company") was incorporated in the state of Delaware and capitalized in June 2001. The Company began operations in July 2001. ChannelAdvisor is a provider of software-as-a-service, or SaaS, solutions and its mission is to connect and optimize the world's commerce. ChannelAdvisor's e-commerce cloud platform helps brands and retailers worldwide improve their online performance by expanding sales channels, connecting with consumers around the world, optimizing their operations for peak performance and providing actionable analytics to improve competitiveness. The Company is headquartered in Morrisville, North Carolina and maintains sales, service, support and research and development offices in various domestic and international locations. Please refer to the Company's website at www.channeladvisor.com for a complete list of its domestic and international office locations.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Interim Condensed Consolidated Financial Information The accompanying condensed consolidated financial statements and footnotes have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") as contained in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") for interim financial information. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of financial position, the results of operations, comprehensive loss and cash flows. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited interim financial statements should be read in conjunction with the audited financial statements and related footnotes for the year ended December 31, 2017 ("fiscal 2017 "), which are included in the Company's Annual Report on Form 10-K for fiscal 2017 . Except for the adoption of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts from Customers (Topic 606) ("ASC 606"), there have been no material changes to the Company's significant accounting policies from those described in the footnotes to the audited financial statements contained in the Company's Annual Report on Form 10-K for fiscal 2017 . Refer to Note 6, "Revenue from Contracts with Customers," for a description of changes to the Company's revenue recognition and contract costs accounting policies as a result of the adoption of ASC 606. Reclassification Certain prior period amounts included in the unaudited condensed consolidated statements of operations have been reclassified to conform to the current period's presentation. The Company has revised the classification of certain employee-related and other operating expenses to better align the income statement line items with departmental responsibilities and the management of operations. These reclassifications had no effect on the Company's reported operating loss or net loss for the three and nine months ended September 30, 2017 . The table below summarizes the financial statement line items impacted by these reclassifications (in thousands): Three Months Ended September 30, 2017 As Previously Reported Reclassification As Reclassified Cost of revenue $ 6,549 $ 760 $ 7,309 Gross profit 23,548 (760 ) 22,788 Sales and marketing 15,565 (760 ) 14,805 Total operating expenses 27,669 (760 ) 26,909 Nine Months Ended September 30, 2017 As Previously Reported Reclassification As Reclassified Cost of revenue $ 19,911 $ 2,238 $ 22,149 Gross profit 68,519 (2,238 ) 66,281 Sales and marketing 47,231 (2,238 ) 44,993 Total operating expenses 84,661 (2,238 ) 82,423 Recent Accounting Pronouncements Standard Description Effect on the Financial Statements or Other Significant Matters Standards that the Company has not yet adopted Leases: ASU 2016-02, Leases (Topic 842) Effective date: January 1, 2019 This standard requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position. This standard also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The Company formed a project team and developed a plan to prepare for the adoption of this standard by its effective date. The project team has performed a business impact assessment, has identified a population of leases and has performed an analysis on its lease population using an expected incremental borrowing rate to assess its adoption of the ASU. The project team has assessed service agreements for potentially embedded leases and has identified leases it considers short term in duration. Based upon the project team's analysis, the Company expects to elect the package of three practical expedients, as well as the practical expedient to apply hindsight in determining lease terms. The Company continues to evaluate the impact that ASU 2016-02 will have on internal controls over financial reporting and its consolidated financial statements. The Company expects to adopt ASU 2016-02 using the modified retrospective transition method as allowed by ASU 2018-11 on January 1, 2019. ASU 2018-11, Leases (Topic 842) - Targeted Improvements This standard provides an alternate adoption method for ASU 2016-02 by allowing for initial application of the standard as of the adoption date and recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Financial Instruments: ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Effective date: January 1, 2020 This standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more useful information about expected credit losses. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Intangibles: ASU 2018-15, Intangibles -Goodwill and Other - Internal-Use Software (Subtopic 350-40) Effective date: January 1, 2020 This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Standard Description Effect on the Financial Statements or Other Significant Matters Standards that the Company has recently adopted Cash Flow: ASU 2016-18, Restricted Cash This standard requires that entities show the changes in the total of cash, cash equivalents and restricted cash in the statement of cash flows. Transfers between cash, cash equivalents and restricted cash should not be presented as cash flow activities on the statement of cash flows. The Company adopted this standard effective January 1, 2018. The adoption did not have a material impact on its consolidated financial statements. Revenue Recognition: ASU 2014-09, Revenue from Contracts with Customers (Topic 606) This standard replaces existing revenue recognition standards and provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires enhanced disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The Company adopted this standard effective January 1, 2018 using the modified retrospective transition method. Refer to Note 6, "Revenue from Contracts with Customers," for additional information regarding the impact of adoption and revenue recognition under ASC 606 on the Company's consolidated financial statements. The Company has reviewed new accounting pronouncements that were issued during the nine months ended September 30, 2018 and does not believe that these pronouncements are applicable to the Company, or that they will have a material impact on its financial position or results of operations. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to the accounts receivable allowance, the useful lives of long-lived assets and other intangible assets, income taxes, assumptions used for purposes of determining stock-based compensation, and revenue recognition, including standalone selling prices for contracts with multiple performance obligations and the expected period of benefit for deferred contract costs, among others. Estimates and assumptions are also required to value assets acquired and liabilities assumed in conjunction with business combinations. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity Attributable to Parent [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY The following tables summarize the stockholders' equity activity for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, 2018 2017 Balance as of June 30, $ 86,426 $ 79,628 Exercise of stock options and vesting of restricted stock units 82 286 Stock-based compensation expense 2,974 2,840 Statutory tax withholding related to net-share settlement of restricted stock units (129 ) (87 ) Net loss (2,287 ) (4,055 ) Foreign currency translation adjustments (250 ) 184 Balance as of September 30, $ 86,816 $ 78,796 Nine Months Ended September 30, 2018 2017 Balance as of December 31, $ 81,911 $ 86,997 Cumulative effect of accounting change (1) 7,501 — Exercise of stock options and vesting of restricted stock units 1,086 625 Stock-based compensation expense 8,023 9,132 Statutory tax withholding related to net-share settlement of restricted stock units (2,765 ) (2,581 ) Net loss (8,208 ) (16,096 ) Foreign currency translation adjustments (732 ) 719 Balance as of September 30, $ 86,816 $ 78,796 (1) Refer to Note 6, "Revenue from Contracts with Customers," for additional information regarding the effect of the adoption of ASC 606 and adjustments to accumulated deficit upon adoption.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS The Company has acquired intangible assets in connection with its business acquisitions. These assets were recorded at their estimated fair values at the acquisition date and are being amortized over their respective estimated useful lives using the straight-line method. The estimated useful lives and amortization methodology used in computing amortization are as follows: Estimated Useful Life Amortization Methodology Customer relationships 7 years Straight-line Acquired technology 7 years Straight-line Amortization expense associated with the Company's intangible assets was $0.2 million for each of the three months ended September 30, 2018 and 2017 , and $0.5 million for each of the nine months ended September 30, 2018 and 2017 . There were no changes to the Company's goodwill during the nine months ended September 30, 2018 .

Commitments

Commitments	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	COMMITMENTS Sales Tax During the first quarter of 2017, the Company completed its analysis with regard to potential unpaid sales tax obligations. Based on the results of this analysis, the Company made the decision to enter into voluntary disclosure agreements ("VDAs") with certain jurisdictions to reduce the Company's potential sales tax liability. VDAs generally provide for a maximum look-back period, a waiver of penalties and, at times, interest as well as payment arrangements. The Company's estimated aggregate VDA liability of $2.5 million was recorded as a one-time charge in general and administrative expense in the accompanying condensed consolidated statements of operations for the nine months ended September 30, 2017 . This amount represented the Company's estimate of its potential unpaid sales tax liability through the anticipated look-back periods including interest, where applicable, in all jurisdictions in which the Company has entered into VDAs. During the third quarter of 2017, one jurisdiction rejected the Company's VDA application and conducted a sales tax audit, which was completed in May 2018. Through September 30, 2018 , the Company has paid an aggregate of $2.5 million under the terms of the VDAs and to settle the sales tax audit. The Company has no other unresolved VDA applications or ongoing sales tax audits as of September 30, 2018 .

Revenue from Contracts with Cus

Revenue from Contracts with Customers	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	REVENUE FROM CONTRACTS WITH CUSTOMERS Financial Statement Impact of Adopting ASC 606, "Revenue from Contracts with Customers" On January 1, 2018, the Company adopted ASC 606 using the modified retrospective transition method and applied this method to all contracts that were not complete as of the date of adoption. The reported results as of September 30, 2018 and for the three and nine months ended September 30, 2018 in the accompanying unaudited condensed consolidated financial statements are presented under ASC 606, while prior period results have not been adjusted and are reported in accordance with historical accounting guidance in effect for those periods. The most significant impacts of this standard relate to the timing of revenue recognition of fixed fees under the Company’s contracts, as well as the accounting for costs to obtain contracts. Under ASC 606, for the Company's managed-service contracts, revenue recognition for subscription and implementation fees begins on the launch date and is recognized over time through the term of the contract. Before the adoption of this standard, the Company deferred the recognition of revenue until the completion of the implementation services, at which point the Company recognized a cumulative catch-up adjustment equal to the revenue earned during the implementation period that had been deferred. The Company then recognized the remaining balance of the fixed fees ratably over the remaining term of the contract. Additionally, under ASC 606, the Company now defers recognition of expense for sales commissions and a portion of other incentive compensation ("contract costs"). These contract costs are amortized to expense over the expected period of benefit. Before the adoption of ASC 606, the Company expensed these contract costs as incurred. The adoption of ASC 606 under the modified retrospective transition method resulted in a net adjustment reducing the accumulated deficit by $7.5 million at January 1, 2018. The adjustment consisted of $8.7 million related to the deferral of contract costs that were historically expensed as incurred, $(0.6) million related to the timing of revenue recognition for managed-service contracts, and $(0.6) million related to the tax impact of the contract costs and revenue adjustments. Revenue Recognition In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services, in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those services. In determining the amount of revenue to be recognized, the Company performs the following steps: (i) identification of the contract with a customer; (ii) identification of the promised services in the contract and determination of whether the promised services are performance obligations, including whether they are distinct in the context of the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. Disaggregation of Revenue The Company derives the majority of its revenue from subscription fees paid for access to and usage of its SaaS solutions for a specified period of time, typically one year. A portion of the subscription fee is typically fixed and is based on a specified minimum amount of gross merchandise value ("GMV") or advertising spend that a customer expects to process through the Company's platform over the contract term. The remaining portion of the subscription fee is variable and is based on a specified percentage of GMV or advertising spend processed through the Company's platform in excess of the customer's specified minimum GMV or advertising spend amount. In addition to subscription fees, contracts with customers may include implementation fees for launch assistance and training. Fixed subscription and implementation fees are billed in advance of the subscription term and are due in accordance with contract terms, which generally provide for payment within 30 days . Variable fees are subject to the same payment terms, although they are generally billed the month after they are incurred. The Company also generates revenue from its solutions that allow brands to direct potential consumers from their websites and digital marketing campaigns to authorized resellers. The Company's contracts typically have a one year term. The Company’s contractual arrangements include performance, termination and cancellation provisions, but do not provide for refunds. Customers do not have the contractual right to take possession of the Company’s software at any time. Sales taxes collected from customers and remitted to government authorities are excluded from revenue. The following table summarizes revenue disaggregation by product for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 (1) 2018 2017 (1) Marketplaces $ 24,037 $ 22,973 $ 71,835 $ 68,034 Digital Marketing 4,577 4,400 13,427 12,918 Other 3,710 2,724 11,167 7,478 $ 32,324 $ 30,097 $ 96,429 $ 88,430 (1) As noted above, prior periods have not been adjusted for the adoption of ASC 606 and are presented in accordance with historical accounting guidance in effect for those periods. Marketplaces and Digital Marketing - The Company's Marketplaces module connects customers to third-party e-commerce marketplaces and provides access to advertising programs and advanced competitive features on major marketplaces. The Company's Digital Marketing module allows customers to create and optimize advertisements on multiple online shopping channels. Customers may subscribe to each of these modules on a self-service or managed-service basis. Self-service subscriptions allow the customer to manage their own activity on the platform. Launch services are also available, although they are not required for the customer to access the platform. Revenue from self-service subscriptions, including fixed subscription fees and fees associated with any elected launch services, is recognized ratably over the subscription term, which is typically one year, beginning on the date the customer has access to the platform. Managed-service subscriptions offer the customer an outsourced, managed platform experience. Implementation services are included with managed-service subscriptions and are necessary to launch on the platform. Revenue from managed-service subscriptions, including fixed subscription fees and fees associated with implementation services, is recognized ratably over the subscription term, which is typically one year , beginning once implementation services are complete. As noted above, customers incur variable fees when the GMV processed through Marketplaces, or the GMV or advertising spend processed through Digital Marketing, exceeds the GMV or advertising spend included in their subscriptions. In general, revenue from variable fees is recognized in the period in which the related GMV or advertising spend is processed through the platform. Other - Other product offerings include the Company's Where to Buy and Product Intelligence solutions, which provide current information on resellers and product availability and insights on product assortment, gaps, and pricing trends. These solutions are only available on a managed-service basis and include implementation services. The Company also enters into integration agreements with certain marketplaces or channels under which the partner engages the Company to integrate the platform with their marketplace or channel. Revenue from these product offerings is recognized ratably over the subscription term beginning on the date the implementation or integration is complete. Contracts with Multiple Performance Obligations Customers may elect to purchase a subscription to multiple modules, multiple modules with multiple service levels, or, for certain of the Company's solutions, multiple brands or geographies. The Company evaluates such contracts to determine whether the services to be provided are distinct and accordingly should be accounted for as separate performance obligations. If the Company determines that a contract has multiple performance obligations, the transaction price, which is the total price of the contract, is allocated to each performance obligation based on a relative standalone selling price method. The Company estimates standalone selling price based on observable prices in past transactions for which the product offering subject to the performance obligation has been sold separately. As the performance obligations are satisfied, revenue is recognized as discussed above in the product descriptions. Transaction Price Allocated to Future Performance Obligations ASC 606 provides certain practical expedients that limit the required disclosure of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied. As the Company typically enters into contracts with customers for a twelve -month subscription term, substantially all of its performance obligations that have not yet been satisfied as of September 30, 2018 are part of a contract that has an original expected duration of one year or less. For contracts with an original expected duration of greater than one year, for which the practical expedient does not apply, the aggregate transaction price allocated to the unsatisfied performance obligations was $20.7 million as of September 30, 2018 , of which $13.0 million is expected to be recognized as revenue over the next twelve months . Deferred Revenue Deferred revenue represents the unearned portion of subscription and implementation fees. Deferred revenue is recorded when cash payments are received in advance of performance. Deferred amounts are generally recognized within one year. Deferred revenue is included in the accompanying condensed consolidated balance sheets under "Total current liabilities," net of any long-term portion that is included in "Other long-term liabilities." The following table summarizes deferred revenue activity for the nine months ended September 30, 2018 (in thousands): As of January 1, 2018 (adjusted) Net additions Revenue recognized As of September 30, 2018 Deferred revenue $ 28,982 93,524 (96,429 ) $ 26,077 Of the $96.4 million of revenue recognized in the nine months ended September 30, 2018 , $24.0 million was included in deferred revenue at January 1, 2018. Costs to Obtain Contracts In accordance with ASC 606, the Company now capitalizes sales commissions and a portion of other incentive compensation costs that are directly related to obtaining customer contracts and that would not have been incurred if the contract had not been obtained. These costs are included in the accompanying condensed consolidated balance sheets and are classified as "Prepaid expenses and other current assets," net of any long-term portion that is included in "Deferred contract costs, net of current portion." Deferred contract costs are amortized to sales and marketing expense over the expected period of benefit, which the Company has determined to be five years based on the estimated customer relationship period. The following table summarizes deferred contract cost activity for the nine months ended September 30, 2018 (in thousands): As of January 1, 2018 (adjusted) Additions Amortized costs (1) As of September 30, 2018 Deferred contract costs $ 8,721 7,442 (2,320 ) $ 13,843 (1) Includes contract costs amortized to sales and marketing expense during the period and the impact from foreign currency exchange rate fluctuations. Financial Statement Impact The following tables compare financial statement line items from the reported condensed consolidated balance sheet as of September 30, 2018 , the condensed consolidated statement of operations for the three and nine months ended September 30, 2018 and the condensed consolidated statement of cash flows for the nine months ended September 30, 2018 , to the applicable pro forma amounts, which are the amounts that would have been reported prior to the adoption of ASC 606 (in thousands): Balance Sheet - select financial statement line items impacted by the adoption of ASC 606 As of September 30, 2018 As Reported Pro Forma Prepaid expenses and other current assets $ 8,569 $ 5,151 Total current assets 79,171 75,753 Deferred contract costs, net of current portion 10,425 — Long-term deferred tax assets, net 4,536 5,378 Total assets 134,118 121,117 Deferred revenue 25,651 25,749 Total current liabilities 41,020 41,118 Other long-term liabilities 2,530 2,408 Total liabilities 47,302 47,278 Accumulated other comprehensive loss (1,521 ) (1,286 ) Accumulated deficit (180,839 ) (194,051 ) Total liabilities and stockholders' equity $ 134,118 $ 121,117 Statement of Operations - select financial statement line items impacted by the adoption of ASC 606 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As Reported Pro Forma As Reported Pro Forma Revenue $ 32,324 $ 31,862 $ 96,429 $ 95,636 Gross profit 24,718 24,256 74,495 73,702 Sales and marketing 14,921 16,606 45,785 50,907 Total operating expenses 26,959 28,644 82,621 87,743 Loss from operations (2,241 ) (4,388 ) (8,126 ) (14,041 ) Other income (expense), net 22 (32 ) 2 (201 ) Total other income (expense) 142 88 353 150 Loss before income taxes (2,099 ) (4,300 ) (7,773 ) (13,891 ) Income tax expense 188 4 435 28 Net loss (2,287 ) (4,304 ) (8,208 ) (13,919 ) Net loss per share, basic and diluted $ (0.08 ) $ (0.16 ) $ (0.30 ) $ (0.51 ) Statement of Cash Flows - select financial statement line items impacted by the adoption of ASC 606 Nine Months Ended September 30, 2018 As Reported Pro Forma Net loss $ (8,208 ) $ (13,919 ) Deferred income taxes 373 (34 ) Changes in assets and liabilities: Deferred contract costs (5,325 ) — Deferred revenue (2,514 ) (1,721 ) Cash and cash equivalents provided by operating activities $ 1,102 $ 1,102

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION The Company recognizes stock-based compensation expense using the accelerated attribution method, net of estimated forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche. Stock-based compensation expense is included in the following line items in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cost of revenue (1) $ 298 $ 298 $ 607 $ 864 Sales and marketing (1) 1,003 931 2,483 2,849 Research and development 581 588 1,585 1,659 General and administrative 1,092 1,023 3,348 3,760 $ 2,974 $ 2,840 $ 8,023 $ 9,132 (1) Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no impact on the Company's reported operating loss or net loss for the period. Refer to Note 2, "Significant Accounting Policies," for further detail. During the nine months ended September 30, 2018 , the Company granted the following share-based awards: Number of Shares Underlying Grant Weighted Average Grant Date Fair Value Stock options 362,415 $ 5.98 Restricted stock units ("RSUs") 925,739 $ 13.94 Total share-based awards 1,288,154 $ 11.70

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NET LOSS PER SHARE Diluted net loss per share is the same as basic net loss per share for all periods presented because the effects of potentially dilutive items were anti-dilutive given the Company's net loss. The following securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive for the three and nine months ended September 30, 2018 and 2017 : Three and Nine Months Ended September 30, 2018 2017 Stock options 2,289,910 2,132,715 RSUs 2,312,407 2,547,941

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES At the end of each interim reporting period, the Company estimates its effective income tax rate expected to be applicable for the full year. This estimate is used to determine the income tax provision or benefit on a year-to-date basis and may change in subsequent interim periods. The Company's effective tax rate was (9.0)% and (0.9)% for the three months ended September 30, 2018 and 2017 , respectively, and (5.6)% and (1.3)% for the nine months ended September 30, 2018 and 2017 , respectively. The tax expense for each of the periods was based on state, local and foreign taxes. The Company’s effective tax rate for these periods is lower than the U.S. federal statutory rate of 21% for the three and nine months ended September 30, 2018 and 34% for the three and nine months ended September 30, 2017 primarily due to operating losses which are subject to a valuation allowance. The Company cannot recognize the tax benefit of operating loss carryforwards generated in certain jurisdictions due to uncertainties relating to future taxable income in those jurisdictions in terms of both its timing and its sufficiency, which would enable the Company to realize the benefits of those carryforwards. The change in the effective tax rate for the three and nine months ended September 30, 2018 compared with the same periods in the prior year is primarily due to the Company's adoption of ASC 606 which resulted in increased income in certain of the Company's foreign subsidiaries. The Tax Cuts and Jobs Act of 2017 ("Tax Act"), which went into effect on December 22, 2017, significantly revises the Internal Revenue Code of 1986, as amended ("IRC"). The Tax Act is complex and it will take time to assess the implications thoroughly. The Company is currently evaluating the Tax Act with its professional advisors and has included the effects of the following changes enacted in the Tax Act in this report: • For the financial statements included in the Company's Annual Report on Form 10-K for fiscal 2017, the Company reduced its expected U.S. federal corporate income tax rate used to measure its deferred tax assets and liabilities to the newly enacted rate of 21% from 34%, which had been used in the calculation of the Company's income tax expense for the three and nine months ended September 30, 2017. The U.S. federal corporate income tax rate of 21% was used in the calculation of the Company's income tax expense for the three and nine months ended September 30, 2018 . • The Company incorporated the newly enacted rules in the Tax Act relating to net operating loss carryforwards. The new rules allow for an indefinite carryforward of unused net operating losses generated in years ending after December 31, 2017. The Company does not generally consider deferred tax liabilities on indefinite-lived assets as a source of future taxable income available to be able to realize deferred tax assets. However, the Company considers the deferred tax liability associated with the indefinite-lived intangible asset as a source of future taxable income available to realize the benefit of deferred tax assets recorded for indefinite-lived tax attributes. For net operating losses generated in periods starting after December 31, 2017, the Company has begun to record the tax benefit of the deferred tax asset up to the amount of the deferred tax liability on the indefinite-lived asset. This resulted in a $0.2 million reduction in the Company's income tax expense for the nine months ended September 30, 2018 . Any amount of the deferred tax asset recorded in excess of the deferred tax liability is expected to be offset by a valuation allowance. Other provisions of the Tax Act might have a significant impact on the Company, such as the repeal of the alternative minimum tax, the new requirement to capitalize research and experimentation expenses, and the creation of the base erosion anti-abuse tax, the global intangible low taxed income inclusion and the foreign derived intangible income deduction. However, based on its current estimates, the Company does not expect that these or the other changes enacted as part of the Tax Act will have a material impact on its financial results as of and for the year ending December 31, 2018. However, new developments such as changes in the Company’s operations or the issuance of additional guidance from the Internal Revenue Service ("IRS") could result in changes to the Company’s analysis and estimates. In addition, it is uncertain if and to what extent various states will conform to the Tax Act. On December 22, 2017, SEC Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of U.S. GAAP in situations in which a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. In accordance with SAB 118, the Company reduced its net deferred tax assets by $16.6 million to account for the decrease in the U.S. federal tax rate, made a de minimis reduction in its end of year deferred tax asset to account for the changes to IRC Section 162(m), and included a reasonable estimate of the impact of revenue recognition in conjunction with the new IRC Section 451(c); such adjustments were provisional and reflect the Company's reasonable estimates at December 31, 2017 and September 30, 2018 . Additional work is necessary for a more detailed analysis of the impacts of the Tax Act. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of 2018 in which the analysis is complete.

Segment and Geographic Informat

Segment and Geographic Information	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
SEGMENT AND GEOGRAPHIC INFORMATION	SEGMENT AND GEOGRAPHIC INFORMATION Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker ("CODM") for purposes of allocating resources and evaluating financial performance. The Company’s CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, the Company’s operations constitute a single operating segment and one reportable segment. Substantially all assets were held in the United States during the nine months ended September 30, 2018 and the year ended December 31, 2017 . The table below summarizes revenue by geography for the three and nine months ended September 30, 2018 and 2017 (in thousands). The Company categorizes domestic and international revenue from customers based on their billing address. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Domestic $ 24,476 $ 23,156 $ 74,013 $ 69,354 International 7,848 6,941 22,416 19,076 Total revenue $ 32,324 $ 30,097 $ 96,429 $ 88,430

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Principles of Consolidation	The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Interim Condensed Consolidated Financial Information	The accompanying condensed consolidated financial statements and footnotes have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") as contained in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") for interim financial information. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of financial position, the results of operations, comprehensive loss and cash flows. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited interim financial statements should be read in conjunction with the audited financial statements and related footnotes for the year ended December 31, 2017 ("fiscal 2017 "), which are included in the Company's Annual Report on Form 10-K for fiscal 2017 . Except for the adoption of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts from Customers (Topic 606) ("ASC 606"), there have been no material changes to the Company's significant accounting policies from those described in the footnotes to the audited financial statements contained in the Company's Annual Report on Form 10-K for fiscal 2017 .
Recent Accounting Pronouncements	Standard Description Effect on the Financial Statements or Other Significant Matters Standards that the Company has not yet adopted Leases: ASU 2016-02, Leases (Topic 842) Effective date: January 1, 2019 This standard requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position. This standard also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The Company formed a project team and developed a plan to prepare for the adoption of this standard by its effective date. The project team has performed a business impact assessment, has identified a population of leases and has performed an analysis on its lease population using an expected incremental borrowing rate to assess its adoption of the ASU. The project team has assessed service agreements for potentially embedded leases and has identified leases it considers short term in duration. Based upon the project team's analysis, the Company expects to elect the package of three practical expedients, as well as the practical expedient to apply hindsight in determining lease terms. The Company continues to evaluate the impact that ASU 2016-02 will have on internal controls over financial reporting and its consolidated financial statements. The Company expects to adopt ASU 2016-02 using the modified retrospective transition method as allowed by ASU 2018-11 on January 1, 2019. ASU 2018-11, Leases (Topic 842) - Targeted Improvements This standard provides an alternate adoption method for ASU 2016-02 by allowing for initial application of the standard as of the adoption date and recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Financial Instruments: ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Effective date: January 1, 2020 This standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more useful information about expected credit losses. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Intangibles: ASU 2018-15, Intangibles -Goodwill and Other - Internal-Use Software (Subtopic 350-40) Effective date: January 1, 2020 This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Standard Description Effect on the Financial Statements or Other Significant Matters Standards that the Company has recently adopted Cash Flow: ASU 2016-18, Restricted Cash This standard requires that entities show the changes in the total of cash, cash equivalents and restricted cash in the statement of cash flows. Transfers between cash, cash equivalents and restricted cash should not be presented as cash flow activities on the statement of cash flows. The Company adopted this standard effective January 1, 2018. The adoption did not have a material impact on its consolidated financial statements. Revenue Recognition: ASU 2014-09, Revenue from Contracts with Customers (Topic 606) This standard replaces existing revenue recognition standards and provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires enhanced disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The Company adopted this standard effective January 1, 2018 using the modified retrospective transition method. Refer to Note 6, "Revenue from Contracts with Customers," for additional information regarding the impact of adoption and revenue recognition under ASC 606 on the Company's consolidated financial statements.
Use of Estimates	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to the accounts receivable allowance, the useful lives of long-lived assets and other intangible assets, income taxes, assumptions used for purposes of determining stock-based compensation, and revenue recognition, including standalone selling prices for contracts with multiple performance obligations and the expected period of benefit for deferred contract costs, among others. Estimates and assumptions are also required to value assets acquired and liabilities assumed in conjunction with business combinations. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities.
Revenue Recognition	In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services, in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those services. In determining the amount of revenue to be recognized, the Company performs the following steps: (i) identification of the contract with a customer; (ii) identification of the promised services in the contract and determination of whether the promised services are performance obligations, including whether they are distinct in the context of the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.
Deferred Revenue	Deferred revenue represents the unearned portion of subscription and implementation fees. Deferred revenue is recorded when cash payments are received in advance of performance. Deferred amounts are generally recognized within one year. Deferred revenue is included in the accompanying condensed consolidated balance sheets under "Total current liabilities," net of any long-term portion that is included in "Other long-term liabilities."
Costs to Obtain Contracts	In accordance with ASC 606, the Company now capitalizes sales commissions and a portion of other incentive compensation costs that are directly related to obtaining customer contracts and that would not have been incurred if the contract had not been obtained. These costs are included in the accompanying condensed consolidated balance sheets and are classified as "Prepaid expenses and other current assets," net of any long-term portion that is included in "Deferred contract costs, net of current portion." Deferred contract costs are amortized to sales and marketing expense over the expected period of benefit, which the Company has determined to be five years based on the estimated customer relationship period.
Stock-Based Compensation	The Company recognizes stock-based compensation expense using the accelerated attribution method, net of estimated forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche.
Earnings Per Share	Diluted net loss per share is the same as basic net loss per share for all periods presented because the effects of potentially dilutive items were anti-dilutive given the Company's net loss.
Income Taxes	At the end of each interim reporting period, the Company estimates its effective income tax rate expected to be applicable for the full year. This estimate is used to determine the income tax provision or benefit on a year-to-date basis and may change in subsequent interim periods.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Schedule of Reclassifications	The table below summarizes the financial statement line items impacted by these reclassifications (in thousands): Three Months Ended September 30, 2017 As Previously Reported Reclassification As Reclassified Cost of revenue $ 6,549 $ 760 $ 7,309 Gross profit 23,548 (760 ) 22,788 Sales and marketing 15,565 (760 ) 14,805 Total operating expenses 27,669 (760 ) 26,909 Nine Months Ended September 30, 2017 As Previously Reported Reclassification As Reclassified Cost of revenue $ 19,911 $ 2,238 $ 22,149 Gross profit 68,519 (2,238 ) 66,281 Sales and marketing 47,231 (2,238 ) 44,993 Total operating expenses 84,661 (2,238 ) 82,423
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	Standard Description Effect on the Financial Statements or Other Significant Matters Standards that the Company has not yet adopted Leases: ASU 2016-02, Leases (Topic 842) Effective date: January 1, 2019 This standard requires that lessees recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position. This standard also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The Company formed a project team and developed a plan to prepare for the adoption of this standard by its effective date. The project team has performed a business impact assessment, has identified a population of leases and has performed an analysis on its lease population using an expected incremental borrowing rate to assess its adoption of the ASU. The project team has assessed service agreements for potentially embedded leases and has identified leases it considers short term in duration. Based upon the project team's analysis, the Company expects to elect the package of three practical expedients, as well as the practical expedient to apply hindsight in determining lease terms. The Company continues to evaluate the impact that ASU 2016-02 will have on internal controls over financial reporting and its consolidated financial statements. The Company expects to adopt ASU 2016-02 using the modified retrospective transition method as allowed by ASU 2018-11 on January 1, 2019. ASU 2018-11, Leases (Topic 842) - Targeted Improvements This standard provides an alternate adoption method for ASU 2016-02 by allowing for initial application of the standard as of the adoption date and recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Financial Instruments: ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Effective date: January 1, 2020 This standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more useful information about expected credit losses. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Intangibles: ASU 2018-15, Intangibles -Goodwill and Other - Internal-Use Software (Subtopic 350-40) Effective date: January 1, 2020 This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Standard Description Effect on the Financial Statements or Other Significant Matters Standards that the Company has recently adopted Cash Flow: ASU 2016-18, Restricted Cash This standard requires that entities show the changes in the total of cash, cash equivalents and restricted cash in the statement of cash flows. Transfers between cash, cash equivalents and restricted cash should not be presented as cash flow activities on the statement of cash flows. The Company adopted this standard effective January 1, 2018. The adoption did not have a material impact on its consolidated financial statements. Revenue Recognition: ASU 2014-09, Revenue from Contracts with Customers (Topic 606) This standard replaces existing revenue recognition standards and provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires enhanced disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The Company adopted this standard effective January 1, 2018 using the modified retrospective transition method. Refer to Note 6, "Revenue from Contracts with Customers," for additional information regarding the impact of adoption and revenue recognition under ASC 606 on the Company's consolidated financial statements.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2018
Stockholders' Equity Attributable to Parent [Abstract]
Schedule of Stockholders Equity	The following tables summarize the stockholders' equity activity for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, 2018 2017 Balance as of June 30, $ 86,426 $ 79,628 Exercise of stock options and vesting of restricted stock units 82 286 Stock-based compensation expense 2,974 2,840 Statutory tax withholding related to net-share settlement of restricted stock units (129 ) (87 ) Net loss (2,287 ) (4,055 ) Foreign currency translation adjustments (250 ) 184 Balance as of September 30, $ 86,816 $ 78,796 Nine Months Ended September 30, 2018 2017 Balance as of December 31, $ 81,911 $ 86,997 Cumulative effect of accounting change (1) 7,501 — Exercise of stock options and vesting of restricted stock units 1,086 625 Stock-based compensation expense 8,023 9,132 Statutory tax withholding related to net-share settlement of restricted stock units (2,765 ) (2,581 ) Net loss (8,208 ) (16,096 ) Foreign currency translation adjustments (732 ) 719 Balance as of September 30, $ 86,816 $ 78,796 (1) Refer to Note 6, "Revenue from Contracts with Customers," for additional information regarding the effect of the adoption of ASC 606 and adjustments to accumulated deficit upon adoption.

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	The estimated useful lives and amortization methodology used in computing amortization are as follows: Estimated Useful Life Amortization Methodology Customer relationships 7 years Straight-line Acquired technology 7 years Straight-line

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes revenue disaggregation by product for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 (1) 2018 2017 (1) Marketplaces $ 24,037 $ 22,973 $ 71,835 $ 68,034 Digital Marketing 4,577 4,400 13,427 12,918 Other 3,710 2,724 11,167 7,478 $ 32,324 $ 30,097 $ 96,429 $ 88,430 (1) As noted above, prior periods have not been adjusted for the adoption of ASC 606 and are presented in accordance with historical accounting guidance in effect for those periods.
Deferred Revenue	The following table summarizes deferred revenue activity for the nine months ended September 30, 2018 (in thousands): As of January 1, 2018 (adjusted) Net additions Revenue recognized As of September 30, 2018 Deferred revenue $ 28,982 93,524 (96,429 ) $ 26,077
Deferred Contract Costs	The following table summarizes deferred contract cost activity for the nine months ended September 30, 2018 (in thousands): As of January 1, 2018 (adjusted) Additions Amortized costs (1) As of September 30, 2018 Deferred contract costs $ 8,721 7,442 (2,320 ) $ 13,843 (1) Includes contract costs amortized to sales and marketing expense during the period and the impact from foreign currency exchange rate fluctuations.
Financial Statement Impact	The following tables compare financial statement line items from the reported condensed consolidated balance sheet as of September 30, 2018 , the condensed consolidated statement of operations for the three and nine months ended September 30, 2018 and the condensed consolidated statement of cash flows for the nine months ended September 30, 2018 , to the applicable pro forma amounts, which are the amounts that would have been reported prior to the adoption of ASC 606 (in thousands): Balance Sheet - select financial statement line items impacted by the adoption of ASC 606 As of September 30, 2018 As Reported Pro Forma Prepaid expenses and other current assets $ 8,569 $ 5,151 Total current assets 79,171 75,753 Deferred contract costs, net of current portion 10,425 — Long-term deferred tax assets, net 4,536 5,378 Total assets 134,118 121,117 Deferred revenue 25,651 25,749 Total current liabilities 41,020 41,118 Other long-term liabilities 2,530 2,408 Total liabilities 47,302 47,278 Accumulated other comprehensive loss (1,521 ) (1,286 ) Accumulated deficit (180,839 ) (194,051 ) Total liabilities and stockholders' equity $ 134,118 $ 121,117 Statement of Operations - select financial statement line items impacted by the adoption of ASC 606 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As Reported Pro Forma As Reported Pro Forma Revenue $ 32,324 $ 31,862 $ 96,429 $ 95,636 Gross profit 24,718 24,256 74,495 73,702 Sales and marketing 14,921 16,606 45,785 50,907 Total operating expenses 26,959 28,644 82,621 87,743 Loss from operations (2,241 ) (4,388 ) (8,126 ) (14,041 ) Other income (expense), net 22 (32 ) 2 (201 ) Total other income (expense) 142 88 353 150 Loss before income taxes (2,099 ) (4,300 ) (7,773 ) (13,891 ) Income tax expense 188 4 435 28 Net loss (2,287 ) (4,304 ) (8,208 ) (13,919 ) Net loss per share, basic and diluted $ (0.08 ) $ (0.16 ) $ (0.30 ) $ (0.51 ) Statement of Cash Flows - select financial statement line items impacted by the adoption of ASC 606 Nine Months Ended September 30, 2018 As Reported Pro Forma Net loss $ (8,208 ) $ (13,919 ) Deferred income taxes 373 (34 ) Changes in assets and liabilities: Deferred contract costs (5,325 ) — Deferred revenue (2,514 ) (1,721 ) Cash and cash equivalents provided by operating activities $ 1,102 $ 1,102

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock-Based Compensation Expense	Stock-based compensation expense is included in the following line items in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cost of revenue (1) $ 298 $ 298 $ 607 $ 864 Sales and marketing (1) 1,003 931 2,483 2,849 Research and development 581 588 1,585 1,659 General and administrative 1,092 1,023 3,348 3,760 $ 2,974 $ 2,840 $ 8,023 $ 9,132 (1) Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no impact on the Company's reported operating loss or net loss for the period. Refer to Note 2, "Significant Accounting Policies," for further detail.
Summary of Awards Granted in Period	During the nine months ended September 30, 2018 , the Company granted the following share-based awards: Number of Shares Underlying Grant Weighted Average Grant Date Fair Value Stock options 362,415 $ 5.98 Restricted stock units ("RSUs") 925,739 $ 13.94 Total share-based awards 1,288,154 $ 11.70

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of Securities Excluded from Calculation of Weighted Average Common Shares Outstanding	The following securities have been excluded from the calculation of weighted average common shares outstanding because the effect is anti-dilutive for the three and nine months ended September 30, 2018 and 2017 : Three and Nine Months Ended September 30, 2018 2017 Stock options 2,289,910 2,132,715 RSUs 2,312,407 2,547,941

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Summary of Revenue by Geography	The table below summarizes revenue by geography for the three and nine months ended September 30, 2018 and 2017 (in thousands). The Company categorizes domestic and international revenue from customers based on their billing address. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Domestic $ 24,476 $ 23,156 $ 74,013 $ 69,354 International 7,848 6,941 22,416 19,076 Total revenue $ 32,324 $ 30,097 $ 96,429 $ 88,430

Significant Accounting Polici_4

Significant Accounting Policies (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of revenue	[1]	$ 7,606	$ 7,309	$ 21,934	$ 22,149
Gross profit		24,718	22,788	74,495	66,281
Sales and marketing	[1]	14,921	14,805	45,785	44,993
Total operating expenses		$ 26,959	26,909	$ 82,621	82,423
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of revenue			6,549		19,911
Gross profit			23,548		68,519
Sales and marketing			15,565		47,231
Total operating expenses			27,669		84,661
Reclassification
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of revenue			760		2,238
Gross profit			(760)		(2,238)
Sales and marketing			(760)		(2,238)
Total operating expenses			$ (760)		$ (2,238)
[1]	Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no impact on reported operating loss or net loss for the period. Refer to Note 2, "Significant Accounting Policies," for further detail.

Stockholders' Equity (Detail)

Stockholders' Equity (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 86,426	$ 79,628	$ 81,911	$ 86,997
Exercise of stock options and vesting of restricted stock units	82	286	1,086	625
Stock-based compensation expense	2,974	2,840	8,023	9,132
Statutory tax withholding related to net-share settlement of restricted stock units	(129)	(87)	(2,765)	(2,581)
Net loss	(2,287)	(4,055)	(8,208)	(16,096)
Foreign currency translation adjustments	(250)	184	(732)	719
Ending balance	$ 86,816	$ 78,796	$ 86,816	$ 78,796
Cumulative effect of accounting change					$ 7,501

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Estimated Useful Lives and Amortization Methodology (Detail)	9 Months Ended
	Sep. 30, 2018
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated useful life of intangible asset (in years)	7 years
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Estimated useful life of intangible asset (in years)	7 years

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 200,000	$ 200,000	$ 500,000	$ 500,000
Change in goodwill			$ 0

Commitments (Detail)

Commitments (Detail) - Sales Tax Obligations - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Loss Contingencies [Line Items]
VDA liability for sales taxes		$ 2.5
VDA liability for sales taxes, payments	$ 2.5

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Disaggregation of Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 32,324	$ 30,097	$ 96,429	$ 88,430
Marketplaces
Disaggregation of Revenue [Line Items]
Revenue	24,037	22,973	71,835	68,034
Digital Marketing
Disaggregation of Revenue [Line Items]
Revenue	4,577	4,400	13,427	12,918
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 3,710	$ 2,724	$ 11,167	$ 7,478

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 01, 2018	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cumulative effect of accounting change	$ 7,501
Deferred contract costs			$ 5,325	$ 0
Deferred revenue			(2,514)	3,042
Deferred income taxes			$ 373	$ 154
Payment period			30 days
Contract period			12 months
Revenue		$ 96,429	$ 96,400
Revenue recognized			$ 24,000
Capitalized contract cost, amortization period			P5Y
Marketplaces and Digital Marketing [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract period			1 year
Revenue recognition period				1 year
Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred contract costs	8,700
Deferred revenue	(600)
Deferred income taxes	(600)
Retained Earnings | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cumulative effect of accounting change	$ 7,500

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Transaction Price Allocated to Future Performance Obligations (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Contract period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 13
Performance obligation period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 20.7
Performance obligation period

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Deferred Revenue (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Deferred revenue
As of January 1, 2018 (adjusted)	$ 28,982
Net additions	93,524
Revenue recognized	(96,429)	$ (96,400)
As of September 30, 2018	$ 26,077	$ 26,077

Revenue from Contracts with C_7

Revenue from Contracts with Customers - Costs to Obtain Contracts (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Deferred contract costs
As of January 1, 2018 (adjusted)	$ 8,721
Additions	7,442
Amortized costs	(2,320)
As of September 30, 2018	$ 13,843

Revenue from Contracts with C_8

Revenue from Contracts with Customers - Financial Statement Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Balance Sheet - select financial statement line items impacted by the adoption of ASC 606
Prepaid expenses and other current assets		$ 8,569		$ 8,569		$ 16,462
Total current assets		79,171		79,171		97,336
Deferred contract costs, net of current portion		10,425		10,425		0
Long-term deferred tax assets, net		4,536		4,536		5,550
Total assets		134,118		134,118		140,511
Deferred revenue		25,651		25,651		27,143
Total current liabilities		41,020		41,020		51,474
Other long-term liabilities		2,530		2,530		3,157
Total liabilities		47,302		47,302		58,600
Accumulated other comprehensive loss		(1,521)		(1,521)		(789)
Accumulated deficit		(180,839)		(180,839)		(180,132)
Total liabilities and stockholders' equity		134,118		134,118		$ 140,511
Statement of Operations - select financial statement line items impacted by the adoption of ASC 606
Revenue		32,324	$ 30,097	96,429	$ 88,430
Gross profit		24,718	22,788	74,495	66,281
Sales and marketing	[1]	14,921	14,805	45,785	44,993
Total operating expenses		26,959	26,909	82,621	82,423
Loss from operations		(2,241)	(4,121)	(8,126)	(16,142)
Other income (expense), net		22	36	2	106
Total other income (expense)		142	103	353	255
Loss before income taxes		(2,099)	(4,018)	(7,773)	(15,887)
Income tax expense		188	37	435	209
Net loss		$ (2,287)	$ (4,055)	$ (8,208)	$ (16,096)
Basic and diluted (in dollars per share)		$ (0.08)	$ (0.15)	$ (0.30)	$ (0.61)
Statement of Cash Flows - select financial statement line items impacted by the adoption of ASC 606
Net loss		$ (2,287)	$ (4,055)	$ (8,208)	$ (16,096)
Deferred income taxes				373	154
Changes in assets and liabilities:
Deferred contract costs				(5,325)	0
Deferred revenue				(2,514)	3,042
Cash and cash equivalents provided by operating activities				1,102	$ (2,204)
Pro Forma
Balance Sheet - select financial statement line items impacted by the adoption of ASC 606
Prepaid expenses and other current assets		5,151		5,151
Total current assets		75,753		75,753
Deferred contract costs, net of current portion		0		0
Long-term deferred tax assets, net		5,378		5,378
Total assets		121,117		121,117
Deferred revenue		25,749		25,749
Total current liabilities		41,118		41,118
Other long-term liabilities		2,408		2,408
Total liabilities		47,278		47,278
Accumulated other comprehensive loss		(1,286)		(1,286)
Accumulated deficit		(194,051)		(194,051)
Total liabilities and stockholders' equity		121,117		121,117
Statement of Operations - select financial statement line items impacted by the adoption of ASC 606
Revenue		31,862		95,636
Gross profit		24,256		73,702
Sales and marketing		16,606		50,907
Total operating expenses		28,644		87,743
Loss from operations		(4,388)		(14,041)
Other income (expense), net		(32)		(201)
Total other income (expense)		88		150
Loss before income taxes		(4,300)		(13,891)
Income tax expense		4		28
Net loss		$ (4,304)		$ (13,919)
Basic and diluted (in dollars per share)		$ (0.16)		$ (0.51)
Statement of Cash Flows - select financial statement line items impacted by the adoption of ASC 606
Net loss		$ (4,304)		$ (13,919)
Deferred income taxes				(34)
Changes in assets and liabilities:
Deferred contract costs				0
Deferred revenue				(1,721)
Cash and cash equivalents provided by operating activities				$ 1,102
[1]	Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no impact on reported operating loss or net loss for the period. Refer to Note 2, "Significant Accounting Policies," for further detail.

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock-Based Compensation [Line Items]
Stock-based compensation expense	$ 2,974	$ 2,840	$ 8,023	$ 9,132
Cost of revenue
Stock-Based Compensation [Line Items]
Stock-based compensation expense	298	298	607	864
Sales and marketing
Stock-Based Compensation [Line Items]
Stock-based compensation expense	1,003	931	2,483	2,849
Research and development
Stock-Based Compensation [Line Items]
Stock-based compensation expense	581	588	1,585	1,659
General and administrative
Stock-Based Compensation [Line Items]
Stock-based compensation expense	$ 1,092	$ 1,023	$ 3,348	$ 3,760

Stock-Based Compensation - Gran

Stock-Based Compensation - Grants in Period (Detail)	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Number of Shares Underlying Grant
Stock options (in shares) | shares	362,415
Total share-based awards (in shares) | shares	1,288,154
Weighted Average Grant Date Fair Value
Stock options (in dollars per share) | $ / shares	$ 5.98
Total share-based awards (in dollars per share) | $ / shares	$ 11.70
Restricted stock units (RSUs)
Number of Shares Underlying Grant
Restricted stock units (RSUs) (in shares) | shares	925,739
Weighted Average Grant Date Fair Value
Restricted stock units (RSUs) (in dollars per share) | $ / shares	$ 13.94

Net Loss Per Share (Detail)

Net Loss Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of weighted average common shares outstanding (in shares)	2,289,910	2,132,715	2,289,910	2,132,715
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of weighted average common shares outstanding (in shares)	2,312,407	2,547,941	2,312,407	2,547,941

Income Taxes (Detail)

Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Effective income tax rate	(9.00%)	(0.90%)	(5.60%)	(1.30%)
U.S. federal statutory tax rate	21.00%	34.00%	21.00%	34.00%
Benefit of deferred tax asset, reduction in income tax expense			$ 0.2
Tax Cuts and Jobs Act of 2017, reduction in net deferred tax assets					$ 16.6

Segment and Geographic Inform_3

Segment and Geographic Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018segment
Segment Reporting [Abstract]
Number of reportable segment	1
Number of operating segment	1

Segment and Geographic Inform_4

Segment and Geographic Information - Summary of Revenue by Geography (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Revenue	$ 32,324	$ 30,097	$ 96,429	$ 88,430
Domestic
Segment Reporting Information [Line Items]
Revenue	24,476	23,156	74,013	69,354
International
Segment Reporting Information [Line Items]
Revenue	$ 7,848	$ 6,941	$ 22,416	$ 19,076