Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | CHANNELADVISOR CORP | |
Entity Central Index Key | 0001169652 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 28,058,807 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 48,226 | $ 47,185 |
Accounts receivable, net of allowance of $848 and $652 as of September 30, 2019 and December 31, 2018, respectively | 21,292 | 23,436 |
Prepaid expenses and other current assets | 8,231 | 9,248 |
Total current assets | 77,749 | 79,869 |
Operating lease right of use assets | 12,030 | |
Property and equipment, net | 10,249 | 12,007 |
Goodwill | 23,486 | 23,486 |
Intangible assets, net | 1,438 | 1,894 |
Deferred contract costs, net of current portion | 12,667 | 11,336 |
Long-term deferred tax assets, net | 3,486 | 4,162 |
Other assets | 784 | 1,515 |
Total assets | 141,889 | 134,269 |
Current liabilities: | ||
Accounts payable | 1,339 | 1,598 |
Accrued expenses | 8,958 | 9,358 |
Deferred revenue | 21,803 | 24,205 |
Other current liabilities | 6,455 | 3,569 |
Total current liabilities | 38,555 | 38,730 |
Long-term operating leases, net of current portion | 10,597 | |
Long-term finance leases, net of current portion | 0 | 1,404 |
Lease incentive obligation | 0 | 2,154 |
Other long-term liabilities | 970 | 2,343 |
Total liabilities | 50,122 | 44,631 |
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, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.001 par value, 100,000,000 shares authorized, 28,058,807 and 27,347,115 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 28 | 27 |
Additional paid-in capital | 276,211 | 271,550 |
Accumulated other comprehensive loss | (2,302) | (1,707) |
Accumulated deficit | (182,170) | (180,232) |
Total stockholders' equity | 91,767 | 89,638 |
Total liabilities and stockholders' equity | $ 141,889 | $ 134,269 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Allowance for doubtful accounts receivable, current | $ 848 | $ 652 |
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) | 28,058,807 | 27,347,115 |
Common stock, shares outstanding (in shares) | 28,058,807 | 27,347,115 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue | $ 31,678 | $ 32,324 | $ 95,184 | $ 96,429 |
Cost of revenue | 7,251 | 7,606 | 21,876 | 21,934 |
Gross profit | 24,427 | 24,718 | 73,308 | 74,495 |
Operating expenses: | ||||
Sales and marketing | 12,403 | 14,921 | 40,808 | 45,785 |
Research and development | 4,803 | 5,350 | 15,161 | 16,989 |
General and administrative | 5,440 | 6,688 | 19,272 | 19,847 |
Total operating expenses | 22,646 | 26,959 | 75,241 | 82,621 |
Income (loss) from operations | 1,781 | (2,241) | (1,933) | (8,126) |
Other income (expense): | ||||
Interest income (expense), net | 205 | 120 | 599 | 351 |
Other income (expense), net | (44) | 22 | (32) | 2 |
Total other income (expense) | 161 | 142 | 567 | 353 |
Income (loss) before income taxes | 1,942 | (2,099) | (1,366) | (7,773) |
Income tax expense | 213 | 188 | 572 | 435 |
Net income (loss) | $ 1,729 | $ (2,287) | $ (1,938) | $ (8,208) |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.06 | $ (0.08) | $ (0.07) | $ (0.30) |
Diluted (in dollars per share) | $ 0.06 | $ (0.08) | $ (0.07) | $ (0.30) |
Weighted average common shares outstanding: | ||||
Basic | 28,049,199 | 27,294,134 | 27,824,696 | 27,073,332 |
Diluted | 28,754,679 | 27,294,134 | 27,824,696 | 27,073,332 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,729 | $ (2,287) | $ (1,938) | $ (8,208) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (530) | (250) | (595) | (732) |
Total comprehensive income (loss) | $ 1,199 | $ (2,537) | $ (2,533) | $ (8,940) |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net income (loss) | $ (1,938) | $ (8,208) |
Adjustments to reconcile net loss to cash and cash equivalents provided by operating activities: | ||
Depreciation and amortization | 4,806 | 4,509 |
Bad debt expense | 911 | 1,036 |
Stock-based compensation expense | 7,000 | 8,023 |
Deferred income taxes | 513 | 373 |
Other items, net | 43 | (667) |
Changes in assets and liabilities: | ||
Accounts receivable | 1,007 | 4,451 |
Prepaid expenses and other assets | 2,282 | 10,588 |
Deferred contract costs | (2,661) | (5,325) |
Accounts payable and accrued expenses | (2,112) | (11,164) |
Deferred revenue | (2,337) | (2,514) |
Cash and cash equivalents provided by operating activities | 7,514 | 1,102 |
Cash flows from investing activities | ||
Purchases of property and equipment | (755) | (1,586) |
Payment of software development costs | (1,972) | (579) |
Cash and cash equivalents used in investing activities | (2,727) | (2,165) |
Cash flows from financing activities | ||
Repayment of finance leases | (2,357) | (2,092) |
Proceeds from exercise of stock options | 968 | 1,086 |
Payment of statutory tax withholding related to net-share settlement of restricted stock units | (2,101) | (2,130) |
Cash and cash equivalents used in financing activities | (3,490) | (3,136) |
Effect of currency exchange rate changes on cash and cash equivalents | (256) | (333) |
Net increase (decrease) in cash and cash equivalents | 1,041 | (4,532) |
Cash and cash equivalents, beginning of period | 47,185 | 53,422 |
Cash and cash equivalents, end of period | 48,226 | 48,890 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 215 | 26 |
Cash paid for income taxes, net | 64 | 81 |
Supplemental disclosure of noncash investing and financing activities | ||
Accrued statutory tax withholding related to net-share settlement of restricted stock units | 1,206 | 635 |
Accrued capital expenditures | 35 | 361 |
Finance lease obligations entered into for the purchase of fixed assets | $ 0 | $ 4,217 |
Description of the Business
Description of the Business | 9 Months Ended |
Sep. 30, 2019 | |
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. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 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, 2018 ("fiscal 2018 "), which are included in the Company's Annual Report on Form 10-K for fiscal 2018 . Except for the adoption of Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASC 842"), 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 2018 . Refer to Note 5, "Leases," for additional information regarding the Company's adoption of ASC 842. Recent Accounting Pronouncements Standard Description Effect on the Financial Statements or Other Significant Matters Standards that the Company has not yet adopted as of September 30, 2019 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 has formed a project team to prepare for the adoption of this standard by its effective date. The project team has developed an adoption plan and is evaluating the impact of this guidance on the Company's 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 adopted as of January 1, 2019 Leases: ASU 2016-02, Leases (Topic 842) 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 adopted this standard effective January 1, 2019 using the alternate adoption method which allows for the initial application of the standard as of the adoption date. The reported results as of and for the three and nine months ended September 30, 2019 in the accompanying unaudited condensed consolidated financial statements are presented under ASC 842, while prior period results have not been adjusted and are reported in accordance with historical accounting guidance in effect for those periods. The Company elected to use the package of three practical expedients, as well as the practical expedient to apply hindsight in determining lease terms. Refer to Note 5, "Leases," for additional information regarding the impact of adoption under ASC 842 on the Company's consolidated financial statements. The Company has reviewed new accounting pronouncements that were issued during the nine months ended September 30, 2019 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, leases, including estimating lease terms and extensions, 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, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY The following table summarizes quarterly stockholders' equity activity for the nine month period ended September 30, 2019 and 2018 (in thousands, except share data): Quarterly Activity For The Nine Months Ended September 30, 2019 Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity Shares Amount Balance, December 31, 2018 27,347,115 $ 27 $ 271,550 $ (1,707 ) $ (180,232 ) $ 89,638 Exercise of stock options and vesting of restricted stock units 681,944 1 936 — — 937 Stock-based compensation expense — — 3,398 — — 3,398 Statutory tax withholding related to net-share settlement of restricted stock units (178,071 ) — (2,277 ) — — (2,277 ) Net loss — — — — (2,329 ) (2,329 ) Foreign currency translation adjustments — — — 78 — 78 Balance, March 31, 2019 27,850,988 28 273,607 (1,629 ) (182,561 ) 89,445 Exercise of stock options and vesting of restricted stock units 290,346 — 15 — — 15 Stock-based compensation expense — — 2,801 — — 2,801 Statutory tax withholding related to net-share settlement of restricted stock units (98,975 ) — (981 ) — — (981 ) Net loss — — — — (1,338 ) (1,338 ) Foreign currency translation adjustments — — — (143 ) — (143 ) Balance, June 30, 2019 28,042,359 28 275,442 (1,772 ) (183,899 ) 89,799 Exercise of stock options and vesting of restricted stock units 21,958 — 17 — — 17 Stock-based compensation expense — — 801 — — 801 Statutory tax withholding related to net-share settlement of restricted stock units (5,510 ) — (49 ) — — (49 ) Net income — — — — 1,729 1,729 Foreign currency translation adjustments — — — (530 ) — (530 ) Balance, September 30, 2019 28,058,807 $ 28 $ 276,211 $ (2,302 ) $ (182,170 ) $ 91,767 Quarterly Activity For The Nine Months Ended September 30, 2018 Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity Shares Amount Balance, December 31, 2017 26,601,626 $ 27 $ 262,805 $ (789 ) $ (180,132 ) $ 81,911 Cumulative effect of accounting change (1) — — — — 7,501 7,501 Exercise of stock options and vesting of restricted stock units 691,415 — 159 — — 159 Stock-based compensation expense — — 2,733 — — 2,733 Statutory tax withholding related to net-share settlement of restricted stock units (209,154 ) — (1,963 ) — — (1,963 ) Net loss — — — — (3,157 ) (3,157 ) Foreign currency translation adjustments — — — 109 — 109 Balance, March 31, 2018 27,083,887 27 263,734 (680 ) (175,788 ) 87,293 Exercise of stock options and vesting of restricted stock units 247,664 — 845 — — 845 Stock-based compensation expense — — 2,316 — — 2,316 Statutory tax withholding related to net-share settlement of restricted stock units (52,902 ) — (673 ) — — (673 ) Net loss — — — — (2,764 ) (2,764 ) Foreign currency translation adjustments — — — (591 ) — (591 ) Balance, June 30, 2018 27,278,649 27 266,222 (1,271 ) (178,552 ) 86,426 Exercise of stock options and vesting of restricted stock units 42,565 — 82 — — 82 Stock-based compensation expense — — 2,974 — — 2,974 Statutory tax withholding related to net-share settlement of restricted stock units (9,745 ) — (129 ) — — (129 ) Net loss — — — — (2,287 ) (2,287 ) Foreign currency translation adjustments — — — (250 ) — (250 ) Balance, September 30, 2018 27,311,469 $ 27 $ 269,149 $ (1,521 ) $ (180,839 ) $ 86,816 (1) The Company recorded a reduction to accumulated deficit at January 1, 2018 as a result of its adoption of ASC 606, Revenue from Contracts with Customers . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 , and $0.5 million for each of the nine months ended September 30, 2019 and 2018 . There were no changes to the Company's goodwill during the nine months ended September 30, 2019 . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES Financial Statement Impact of Adopting ASC 842, "Leases" On January 1, 2019, the Company adopted ASC 842. The most significant impact of this standard relates to the Company's recognition of right of use (“ROU”) assets and lease liabilities for its operating leases. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The Company's accounting for finance leases, classified as capital leases under historical accounting guidance, was unchanged. The following table summarizes the financial statement line items impacted by the Company's adoption of ASC 842 at January 1, 2019 (in thousands): Balance Sheet - select financial statement line items Ending balance Effect of the adoption of Beginning balance December 31, 2018 ASC 842 January 1, 2019 Operating lease right of use assets $ — $ 15,099 $ 15,099 Other assets 1,515 (504 ) (1) 1,011 Total assets 134,269 14,595 148,864 Other current liabilities 3,569 3,116 (2) 6,685 Total current liabilities 38,730 3,116 41,846 Long-term operating leases, net of current portion — 14,310 14,310 Lease incentive obligation 2,154 (2,154 ) — Other long-term liabilities 2,343 (657 ) (3) 1,686 Total liabilities 44,631 14,615 59,246 Accumulated other comprehensive loss (1,707 ) (12 ) (1,719 ) Total stockholders' equity 89,638 (12 ) 89,626 Total liabilities and stockholders' equity $ 134,269 14,595 (4) 148,864 (1) Derecognition of lease inception fees associated with certain leases previously amortized over the respective lives of those leases. (2) Net effect of derecognizing the Company's current deferred rent and lease incentive obligations as of December 31, 2018 and recognizing current operating lease liabilities. (3) Derecognition of the Company's long-term deferred rent as of December 31, 2018. (4) The resulting incremental expense due to the Company's adoption of ASC 842 was not considered significant and is recorded as rent expense in General and administrative expense in the accompanying unaudited condensed consolidated statement of operations for the nine months ended September 30, 2019. Operating and Finance Lease Commitments The Company leases office facilities and certain equipment under non-cancelable operating and finance leases. The Company determines if an arrangement is a lease and whether its classification is operating or finance at inception. Leases with an initial term of twelve months or less that are not expected to be renewed are not recorded on the balance sheet. For such leases, lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Certain operating leases include options to renew, with renewal terms extending up to 10 years , subject to certain conditions and notice obligations set forth in the lease agreements. The exercise of lease renewal options is at the Company's discretion. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the Company's best estimate of the collateralized borrowing rate over a similar term at the commencement date of the lease in determining the present value of future payments. The operating lease ROU assets also include any lease payments made and lease incentives and initial direct costs incurred. The lease terms may include options to extend the lease when it is reasonably certain that the Company will exercise that option. The following table summarizes the Company's lease assets and liabilities as of September 30, 2019 (in thousands): As of September 30, 2019 Assets Operating lease right of use assets $ 12,030 Finance lease assets, included in Property and equipment, net (1) 2,273 Total leased assets $ 14,303 Liabilities Current Operating lease liabilities, included in Other current liabilities $ 4,462 Finance lease liabilities, included in Other current liabilities 1,404 Long-term Long-term operating leases, net of current portion 10,597 Total lease liabilities $ 16,463 (1) Finance leases are presented net of accumulated amortization of $5.3 million as of September 30, 2019 . The following table summarizes the components of lease expense for the three and nine months ended September 30, 2019 (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost, included in General and administrative expense (1) $ 1,108 $ 3,418 Finance lease cost: Amortization of leased assets, included in General and administrative expense 546 1,639 Interest on lease liabilities, included in Other income (expense), net 26 114 Less: sublease income, reducing rent expense in General and administrative expense (2) (41 ) (126 ) Net lease cost $ 1,639 $ 5,045 (1) Excludes short-term lease costs of $0.1 million and $0.3 million for the three and nine months ended September 30, 2019 , respectively. (2) The Company subleases space to a third party for which it anticipates receiving $0.2 million in annual rental payments during the term of the sublease agreement, which is through August 2022. The following table summarizes other information related to leases for the nine months ended September 30, 2019 (in thousands): Nine Months Ended September 30, 2019 Supplemental cash flows information Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 3,594 Operating cash outflows from finance leases 215 Financing cash outflows from finance leases 2,357 Weighted-average remaining lease term (years) Operating leases 3.36 Finance leases 1.58 Weighted-average discount rate Operating leases 5.50 % Finance leases 7.39 % The following table summarizes maturities of lease liabilities as of September 30, 2019 (in thousands): Operating Leases (1) Finance Leases 2019 (remaining three months) $ 1,297 $ — 2020 5,084 1,507 2021 4,842 — 2022 4,153 — 2023 1,151 — Total lease payments $ 16,527 $ 1,507 Less: imputed interest (1,468 ) (103 ) Present value of lease liabilities $ 15,059 $ 1,404 (1) Excludes future minimum lease payments for short-term operating leases of $0.1 million . As of September 30, 2019 , the Company had no material operating or finance leases that had not yet commenced. |
LEASES | LEASES Financial Statement Impact of Adopting ASC 842, "Leases" On January 1, 2019, the Company adopted ASC 842. The most significant impact of this standard relates to the Company's recognition of right of use (“ROU”) assets and lease liabilities for its operating leases. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. The Company's accounting for finance leases, classified as capital leases under historical accounting guidance, was unchanged. The following table summarizes the financial statement line items impacted by the Company's adoption of ASC 842 at January 1, 2019 (in thousands): Balance Sheet - select financial statement line items Ending balance Effect of the adoption of Beginning balance December 31, 2018 ASC 842 January 1, 2019 Operating lease right of use assets $ — $ 15,099 $ 15,099 Other assets 1,515 (504 ) (1) 1,011 Total assets 134,269 14,595 148,864 Other current liabilities 3,569 3,116 (2) 6,685 Total current liabilities 38,730 3,116 41,846 Long-term operating leases, net of current portion — 14,310 14,310 Lease incentive obligation 2,154 (2,154 ) — Other long-term liabilities 2,343 (657 ) (3) 1,686 Total liabilities 44,631 14,615 59,246 Accumulated other comprehensive loss (1,707 ) (12 ) (1,719 ) Total stockholders' equity 89,638 (12 ) 89,626 Total liabilities and stockholders' equity $ 134,269 14,595 (4) 148,864 (1) Derecognition of lease inception fees associated with certain leases previously amortized over the respective lives of those leases. (2) Net effect of derecognizing the Company's current deferred rent and lease incentive obligations as of December 31, 2018 and recognizing current operating lease liabilities. (3) Derecognition of the Company's long-term deferred rent as of December 31, 2018. (4) The resulting incremental expense due to the Company's adoption of ASC 842 was not considered significant and is recorded as rent expense in General and administrative expense in the accompanying unaudited condensed consolidated statement of operations for the nine months ended September 30, 2019. Operating and Finance Lease Commitments The Company leases office facilities and certain equipment under non-cancelable operating and finance leases. The Company determines if an arrangement is a lease and whether its classification is operating or finance at inception. Leases with an initial term of twelve months or less that are not expected to be renewed are not recorded on the balance sheet. For such leases, lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Certain operating leases include options to renew, with renewal terms extending up to 10 years , subject to certain conditions and notice obligations set forth in the lease agreements. The exercise of lease renewal options is at the Company's discretion. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the Company's best estimate of the collateralized borrowing rate over a similar term at the commencement date of the lease in determining the present value of future payments. The operating lease ROU assets also include any lease payments made and lease incentives and initial direct costs incurred. The lease terms may include options to extend the lease when it is reasonably certain that the Company will exercise that option. The following table summarizes the Company's lease assets and liabilities as of September 30, 2019 (in thousands): As of September 30, 2019 Assets Operating lease right of use assets $ 12,030 Finance lease assets, included in Property and equipment, net (1) 2,273 Total leased assets $ 14,303 Liabilities Current Operating lease liabilities, included in Other current liabilities $ 4,462 Finance lease liabilities, included in Other current liabilities 1,404 Long-term Long-term operating leases, net of current portion 10,597 Total lease liabilities $ 16,463 (1) Finance leases are presented net of accumulated amortization of $5.3 million as of September 30, 2019 . The following table summarizes the components of lease expense for the three and nine months ended September 30, 2019 (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost, included in General and administrative expense (1) $ 1,108 $ 3,418 Finance lease cost: Amortization of leased assets, included in General and administrative expense 546 1,639 Interest on lease liabilities, included in Other income (expense), net 26 114 Less: sublease income, reducing rent expense in General and administrative expense (2) (41 ) (126 ) Net lease cost $ 1,639 $ 5,045 (1) Excludes short-term lease costs of $0.1 million and $0.3 million for the three and nine months ended September 30, 2019 , respectively. (2) The Company subleases space to a third party for which it anticipates receiving $0.2 million in annual rental payments during the term of the sublease agreement, which is through August 2022. The following table summarizes other information related to leases for the nine months ended September 30, 2019 (in thousands): Nine Months Ended September 30, 2019 Supplemental cash flows information Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 3,594 Operating cash outflows from finance leases 215 Financing cash outflows from finance leases 2,357 Weighted-average remaining lease term (years) Operating leases 3.36 Finance leases 1.58 Weighted-average discount rate Operating leases 5.50 % Finance leases 7.39 % The following table summarizes maturities of lease liabilities as of September 30, 2019 (in thousands): Operating Leases (1) Finance Leases 2019 (remaining three months) $ 1,297 $ — 2020 5,084 1,507 2021 4,842 — 2022 4,153 — 2023 1,151 — Total lease payments $ 16,527 $ 1,507 Less: imputed interest (1,468 ) (103 ) Present value of lease liabilities $ 15,059 $ 1,404 (1) Excludes future minimum lease payments for short-term operating leases of $0.1 million . As of September 30, 2019 , the Company had no material operating or finance leases that had not yet commenced. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition and 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, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 (1) 2019 2018 (1) Marketplaces $ 23,348 $ 23,965 $ 70,466 $ 71,631 Digital Marketing 4,771 4,577 13,943 13,427 Other 3,559 3,782 10,775 11,371 $ 31,678 $ 32,324 $ 95,184 $ 96,429 (1) Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no impact on the reported total revenue for the period. 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 business 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 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, 2019 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, the aggregate transaction price allocated to the unsatisfied performance obligations was $26.5 million as of September 30, 2019 , of which $15.7 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, 2019 (in thousands): Balance, beginning of period Net additions Revenue recognized Balance, end of period Deferred revenue $ 24,708 92,666 (95,184 ) $ 22,190 Of the $95.2 million of revenue recognized in the nine months ended September 30, 2019 , $21.5 million was included in deferred revenue at January 1, 2019. Costs to Obtain Contracts The Company 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, 2019 (in thousands): Balance, beginning of period Additions Amortized costs (1) Balance, end of period Deferred contract costs $ 15,209 6,044 (3,559 ) $ 17,694 (1) Includes contract costs amortized to sales and marketing expense during the period and the impact from foreign currency exchange rate fluctuations. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 (1) 2018 2019 (1) 2018 Cost of revenue $ 169 $ 298 $ 745 $ 607 Sales and marketing — 1,003 1,773 2,483 Research and development 454 581 1,696 1,585 General and administrative 178 1,092 2,786 3,348 $ 801 $ 2,974 $ 7,000 $ 8,023 (1) Stock-based compensation expense for the three and nine months ended September 30, 2019 decreased compared to the prior year periods due primarily to changes in executive management. During the nine months ended September 30, 2019 , the Company granted the following share-based awards: Number of Shares Underlying Grant Weighted Average Grant Date Fair Value Stock options 554,545 $ 4.51 Restricted stock units ("RSUs") 1,281,826 $ 9.90 Total share-based awards 1,836,371 $ 8.27 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share is calculated giving effect to all potentially dilutive shares of common stock, including stock options and restricted stock units (RSUs). The dilutive effect of outstanding awards is reflected in diluted earnings per share by application of the treasury stock method. The following table summarizes the calculation of basic and diluted net income (loss) per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Basic: Net income (loss) $ 1,729 $ (2,287 ) $ (1,938 ) $ (8,208 ) Weighted average common shares outstanding, basic 28,049,199 27,294,134 27,824,696 27,073,332 Basic net income (loss) per share $ 0.06 $ (0.08 ) $ (0.07 ) $ (0.30 ) Diluted: Net income (loss) $ 1,729 $ (2,287 ) $ (1,938 ) $ (8,208 ) Weighted average common shares outstanding, basic 28,049,199 27,294,134 27,824,696 27,073,332 Dilutive effect of: Stock options 169,354 — — — Unvested RSUs 536,126 — — — Weighted average common shares outstanding, diluted 28,754,679 27,294,134 27,824,696 27,073,332 Diluted net income (loss) per share $ 0.06 $ (0.08 ) $ (0.07 ) $ (0.30 ) The following equity instruments have been excluded from the calculation of diluted net income (loss) per share because the effect is anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options 1,923,938 2,289,910 2,341,209 2,289,910 RSUs 269,552 2,312,407 2,206,636 2,312,407 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
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 11.0% and (9.0)% for the three months ended September 30, 2019 and 2018 , respectively, and (41.9)% and (5.6)% for the nine months ended September 30, 2019 and 2018 , 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% 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 months ended September 30, 2019 compared with the same period in the prior year is primarily due to the shift from pre-tax loss for the three month period in 2018 to pre-tax income for the three month period in 2019. The change in the effective tax rate for the nine months ended September 30, 2019 compared with the same period in the prior year is primarily due to the decrease in pre-tax loss from the nine month period in 2018 to the nine month period in 2019. In addition, the change in the effective tax rate for both the three and nine month periods was partially due to a tax benefit recorded in 2018 attributable to the reduction of a "hanging" deferred tax liability for an indefinite-lived intangible asset. The Company utilized the "hanging" deferred tax liability to recognize a portion of the deferred tax asset for the indefinite-lived U.S. federal operating loss carryforward generated in the 2018 tax year, with the balance of the U.S. federal operating loss carryforward deferred tax asset being offset by a valuation allowance. 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. The Tax Act contains, among other things, significant changes to corporate taxation, including reduction of the corporate tax rate from a top marginal rate of 35% to a flat rate of 21%, limitation of the tax deduction for interest expense to 30% of adjusted earnings (except for certain small businesses), repeal of the alternative minimum tax, limitation of the deduction for net operating losses to 80% of current year taxable income, indefinite net operating loss carryforward period and elimination of net operating loss carrybacks, elimination of U.S. tax on foreign earnings (subject to certain important exceptions), immediate deductions for certain new investments instead of deductions for depreciation expense over time, creation of the base erosion anti-abuse tax, the global intangible low taxed income inclusion, which the Company accounts for as a period cost, the foreign derived intangible income deduction and modification or repeal of many business deductions and credits. As of September 30, 2019 , the IRS is still in the process of issuing guidance to taxpayers to address changes enacted in the Tax Act. The Company has prepared the income tax provision for the three and nine months ended September 30, 2019 based on available guidance. However, if final guidance is issued that modifies the existing temporary guidance issued by the IRS or if the final guidance contradicts positions taken by the Company in the absence of any IRS guidance, this could have a material impact on the Company's consolidated financial statements. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING In the third quarter of 2019, the Company implemented a plan ("2019 Actions") to reduce its expenses and align its operations with evolving business needs. As part of this strategic initiative, the Company reduced its global workforce by approximately 10% and discontinued its physical operations in China. As a result of the implementation of the 2019 Actions, the Company recognized severance and related costs of $1.0 million during the three and nine months ended September 30, 2019. |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and the year ended December 31, 2018 . The following table summarizes revenue by geography for the three and nine months ended September 30, 2019 and 2018 (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, 2019 2018 2019 2018 Domestic $ 23,551 $ 24,476 $ 71,120 $ 74,013 International 8,127 7,848 24,064 22,416 Total revenue $ 31,678 $ 32,324 $ 95,184 $ 96,429 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 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, 2018 ("fiscal 2018 "), which are included in the Company's Annual Report on Form 10-K for fiscal 2018 . Except for the adoption of Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASC 842"), 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 2018 . |
Recent Accounting Pronouncements | Standard Description Effect on the Financial Statements or Other Significant Matters Standards that the Company has not yet adopted as of September 30, 2019 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 has formed a project team to prepare for the adoption of this standard by its effective date. The project team has developed an adoption plan and is evaluating the impact of this guidance on the Company's 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 adopted as of January 1, 2019 Leases: ASU 2016-02, Leases (Topic 842) 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 adopted this standard effective January 1, 2019 using the alternate adoption method which allows for the initial application of the standard as of the adoption date. The reported results as of and for the three and nine months ended September 30, 2019 in the accompanying unaudited condensed consolidated financial statements are presented under ASC 842, while prior period results have not been adjusted and are reported in accordance with historical accounting guidance in effect for those periods. The Company elected to use the package of three practical expedients, as well as the practical expedient to apply hindsight in determining lease terms. Refer to Note 5, "Leases," for additional information regarding the impact of adoption under ASC 842 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, leases, including estimating lease terms and extensions, 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. |
Operating and Finance Lease Commitments | The Company leases office facilities and certain equipment under non-cancelable operating and finance leases. The Company determines if an arrangement is a lease and whether its classification is operating or finance at inception. Leases with an initial term of twelve months or less that are not expected to be renewed are not recorded on the balance sheet. For such leases, lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Certain operating leases include options to renew, with renewal terms extending up to 10 years , subject to certain conditions and notice obligations set forth in the lease agreements. The exercise of lease renewal options is at the Company's discretion. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the Company's best estimate of the collateralized borrowing rate over a similar term at the commencement date of the lease in determining the present value of future payments. The operating lease ROU assets also include any lease payments made and lease incentives and initial direct costs incurred. The lease terms may include options to extend the lease when it is reasonably certain that the Company will exercise that option. |
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 | The Company 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 | Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share is calculated giving effect to all potentially dilutive shares of common stock, including stock options and restricted stock units (RSUs). The dilutive effect of outstanding awards is reflected in diluted earnings per share by application of the treasury stock method. |
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, 2019 | |
Accounting Policies [Abstract] | |
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 as of September 30, 2019 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 has formed a project team to prepare for the adoption of this standard by its effective date. The project team has developed an adoption plan and is evaluating the impact of this guidance on the Company's 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 adopted as of January 1, 2019 Leases: ASU 2016-02, Leases (Topic 842) 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 adopted this standard effective January 1, 2019 using the alternate adoption method which allows for the initial application of the standard as of the adoption date. The reported results as of and for the three and nine months ended September 30, 2019 in the accompanying unaudited condensed consolidated financial statements are presented under ASC 842, while prior period results have not been adjusted and are reported in accordance with historical accounting guidance in effect for those periods. The Company elected to use the package of three practical expedients, as well as the practical expedient to apply hindsight in determining lease terms. Refer to Note 5, "Leases," for additional information regarding the impact of adoption under ASC 842 on the Company's consolidated financial statements. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Stockholders Equity | The following table summarizes quarterly stockholders' equity activity for the nine month period ended September 30, 2019 and 2018 (in thousands, except share data): Quarterly Activity For The Nine Months Ended September 30, 2019 Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity Shares Amount Balance, December 31, 2018 27,347,115 $ 27 $ 271,550 $ (1,707 ) $ (180,232 ) $ 89,638 Exercise of stock options and vesting of restricted stock units 681,944 1 936 — — 937 Stock-based compensation expense — — 3,398 — — 3,398 Statutory tax withholding related to net-share settlement of restricted stock units (178,071 ) — (2,277 ) — — (2,277 ) Net loss — — — — (2,329 ) (2,329 ) Foreign currency translation adjustments — — — 78 — 78 Balance, March 31, 2019 27,850,988 28 273,607 (1,629 ) (182,561 ) 89,445 Exercise of stock options and vesting of restricted stock units 290,346 — 15 — — 15 Stock-based compensation expense — — 2,801 — — 2,801 Statutory tax withholding related to net-share settlement of restricted stock units (98,975 ) — (981 ) — — (981 ) Net loss — — — — (1,338 ) (1,338 ) Foreign currency translation adjustments — — — (143 ) — (143 ) Balance, June 30, 2019 28,042,359 28 275,442 (1,772 ) (183,899 ) 89,799 Exercise of stock options and vesting of restricted stock units 21,958 — 17 — — 17 Stock-based compensation expense — — 801 — — 801 Statutory tax withholding related to net-share settlement of restricted stock units (5,510 ) — (49 ) — — (49 ) Net income — — — — 1,729 1,729 Foreign currency translation adjustments — — — (530 ) — (530 ) Balance, September 30, 2019 28,058,807 $ 28 $ 276,211 $ (2,302 ) $ (182,170 ) $ 91,767 Quarterly Activity For The Nine Months Ended September 30, 2018 Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity Shares Amount Balance, December 31, 2017 26,601,626 $ 27 $ 262,805 $ (789 ) $ (180,132 ) $ 81,911 Cumulative effect of accounting change (1) — — — — 7,501 7,501 Exercise of stock options and vesting of restricted stock units 691,415 — 159 — — 159 Stock-based compensation expense — — 2,733 — — 2,733 Statutory tax withholding related to net-share settlement of restricted stock units (209,154 ) — (1,963 ) — — (1,963 ) Net loss — — — — (3,157 ) (3,157 ) Foreign currency translation adjustments — — — 109 — 109 Balance, March 31, 2018 27,083,887 27 263,734 (680 ) (175,788 ) 87,293 Exercise of stock options and vesting of restricted stock units 247,664 — 845 — — 845 Stock-based compensation expense — — 2,316 — — 2,316 Statutory tax withholding related to net-share settlement of restricted stock units (52,902 ) — (673 ) — — (673 ) Net loss — — — — (2,764 ) (2,764 ) Foreign currency translation adjustments — — — (591 ) — (591 ) Balance, June 30, 2018 27,278,649 27 266,222 (1,271 ) (178,552 ) 86,426 Exercise of stock options and vesting of restricted stock units 42,565 — 82 — — 82 Stock-based compensation expense — — 2,974 — — 2,974 Statutory tax withholding related to net-share settlement of restricted stock units (9,745 ) — (129 ) — — (129 ) Net loss — — — — (2,287 ) (2,287 ) Foreign currency translation adjustments — — — (250 ) — (250 ) Balance, September 30, 2018 27,311,469 $ 27 $ 269,149 $ (1,521 ) $ (180,839 ) $ 86,816 (1) The Company recorded a reduction to accumulated deficit at January 1, 2018 as a result of its adoption of ASC 606, Revenue from Contracts with Customers . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Financial Statement Impact | The following table summarizes the financial statement line items impacted by the Company's adoption of ASC 842 at January 1, 2019 (in thousands): Balance Sheet - select financial statement line items Ending balance Effect of the adoption of Beginning balance December 31, 2018 ASC 842 January 1, 2019 Operating lease right of use assets $ — $ 15,099 $ 15,099 Other assets 1,515 (504 ) (1) 1,011 Total assets 134,269 14,595 148,864 Other current liabilities 3,569 3,116 (2) 6,685 Total current liabilities 38,730 3,116 41,846 Long-term operating leases, net of current portion — 14,310 14,310 Lease incentive obligation 2,154 (2,154 ) — Other long-term liabilities 2,343 (657 ) (3) 1,686 Total liabilities 44,631 14,615 59,246 Accumulated other comprehensive loss (1,707 ) (12 ) (1,719 ) Total stockholders' equity 89,638 (12 ) 89,626 Total liabilities and stockholders' equity $ 134,269 14,595 (4) 148,864 (1) Derecognition of lease inception fees associated with certain leases previously amortized over the respective lives of those leases. (2) Net effect of derecognizing the Company's current deferred rent and lease incentive obligations as of December 31, 2018 and recognizing current operating lease liabilities. (3) Derecognition of the Company's long-term deferred rent as of December 31, 2018. (4) The resulting incremental expense due to the Company's adoption of ASC 842 was not considered significant and is recorded as rent expense in General and administrative expense in the accompanying unaudited condensed consolidated statement of operations for the nine months ended September 30, 2019. |
Lease Assets and Lease Liabilities | The following table summarizes the Company's lease assets and liabilities as of September 30, 2019 (in thousands): As of September 30, 2019 Assets Operating lease right of use assets $ 12,030 Finance lease assets, included in Property and equipment, net (1) 2,273 Total leased assets $ 14,303 Liabilities Current Operating lease liabilities, included in Other current liabilities $ 4,462 Finance lease liabilities, included in Other current liabilities 1,404 Long-term Long-term operating leases, net of current portion 10,597 Total lease liabilities $ 16,463 (1) Finance leases are presented net of accumulated amortization of $5.3 million as of September 30, 2019 . |
Components of Lease Expense | The following table summarizes the components of lease expense for the three and nine months ended September 30, 2019 (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost, included in General and administrative expense (1) $ 1,108 $ 3,418 Finance lease cost: Amortization of leased assets, included in General and administrative expense 546 1,639 Interest on lease liabilities, included in Other income (expense), net 26 114 Less: sublease income, reducing rent expense in General and administrative expense (2) (41 ) (126 ) Net lease cost $ 1,639 $ 5,045 (1) Excludes short-term lease costs of $0.1 million and $0.3 million for the three and nine months ended September 30, 2019 , respectively. (2) The Company subleases space to a third party for which it anticipates receiving $0.2 million in annual rental payments during the term of the sublease agreement, which is through August 2022. |
Other Information Related To Leases | The following table summarizes other information related to leases for the nine months ended September 30, 2019 (in thousands): Nine Months Ended September 30, 2019 Supplemental cash flows information Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 3,594 Operating cash outflows from finance leases 215 Financing cash outflows from finance leases 2,357 Weighted-average remaining lease term (years) Operating leases 3.36 Finance leases 1.58 Weighted-average discount rate Operating leases 5.50 % Finance leases 7.39 % |
Maturities of Lease Liabilities | The following table summarizes maturities of lease liabilities as of September 30, 2019 (in thousands): Operating Leases (1) Finance Leases 2019 (remaining three months) $ 1,297 $ — 2020 5,084 1,507 2021 4,842 — 2022 4,153 — 2023 1,151 — Total lease payments $ 16,527 $ 1,507 Less: imputed interest (1,468 ) (103 ) Present value of lease liabilities $ 15,059 $ 1,404 (1) Excludes future minimum lease payments for short-term operating leases of $0.1 million . |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 (1) 2019 2018 (1) Marketplaces $ 23,348 $ 23,965 $ 70,466 $ 71,631 Digital Marketing 4,771 4,577 13,943 13,427 Other 3,559 3,782 10,775 11,371 $ 31,678 $ 32,324 $ 95,184 $ 96,429 (1) Certain prior period amounts have been reclassified to conform to current period presentation. |
Deferred Revenue | The following table summarizes deferred revenue activity for the nine months ended September 30, 2019 (in thousands): Balance, beginning of period Net additions Revenue recognized Balance, end of period Deferred revenue $ 24,708 92,666 (95,184 ) $ 22,190 |
Deferred Contract Costs | The following table summarizes deferred contract cost activity for the nine months ended September 30, 2019 (in thousands): Balance, beginning of period Additions Amortized costs (1) Balance, end of period Deferred contract costs $ 15,209 6,044 (3,559 ) $ 17,694 (1) Includes contract costs amortized to sales and marketing expense during the period and the impact from foreign currency exchange rate fluctuations. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 (1) 2018 2019 (1) 2018 Cost of revenue $ 169 $ 298 $ 745 $ 607 Sales and marketing — 1,003 1,773 2,483 Research and development 454 581 1,696 1,585 General and administrative 178 1,092 2,786 3,348 $ 801 $ 2,974 $ 7,000 $ 8,023 |
Summary of Awards Granted in Period | During the nine months ended September 30, 2019 , the Company granted the following share-based awards: Number of Shares Underlying Grant Weighted Average Grant Date Fair Value Stock options 554,545 $ 4.51 Restricted stock units ("RSUs") 1,281,826 $ 9.90 Total share-based awards 1,836,371 $ 8.27 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes the calculation of basic and diluted net income (loss) per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Basic: Net income (loss) $ 1,729 $ (2,287 ) $ (1,938 ) $ (8,208 ) Weighted average common shares outstanding, basic 28,049,199 27,294,134 27,824,696 27,073,332 Basic net income (loss) per share $ 0.06 $ (0.08 ) $ (0.07 ) $ (0.30 ) Diluted: Net income (loss) $ 1,729 $ (2,287 ) $ (1,938 ) $ (8,208 ) Weighted average common shares outstanding, basic 28,049,199 27,294,134 27,824,696 27,073,332 Dilutive effect of: Stock options 169,354 — — — Unvested RSUs 536,126 — — — Weighted average common shares outstanding, diluted 28,754,679 27,294,134 27,824,696 27,073,332 Diluted net income (loss) per share $ 0.06 $ (0.08 ) $ (0.07 ) $ (0.30 ) |
Schedule of Securities Excluded from Calculation of Weighted Average Common Shares Outstanding | The following equity instruments have been excluded from the calculation of diluted net income (loss) per share because the effect is anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock options 1,923,938 2,289,910 2,341,209 2,289,910 RSUs 269,552 2,312,407 2,206,636 2,312,407 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geography | The following table summarizes revenue by geography for the three and nine months ended September 30, 2019 and 2018 (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, 2019 2018 2019 2018 Domestic $ 23,551 $ 24,476 $ 71,120 $ 74,013 International 8,127 7,848 24,064 22,416 Total revenue $ 31,678 $ 32,324 $ 95,184 $ 96,429 |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | $ 89,799 | $ 89,445 | $ 89,638 | $ 86,426 | $ 87,293 | $ 81,911 | $ 89,638 | $ 81,911 | |||
Exercise of stock options and vesting of restricted stock units | 17 | 15 | 937 | 82 | 845 | 159 | |||||
Stock-based compensation expense | 801 | 2,801 | 3,398 | 2,974 | 2,316 | 2,733 | |||||
Statutory tax withholding related to net-share settlement of restricted stock units | (49) | (981) | (2,277) | (129) | (673) | (1,963) | |||||
Net income (loss) | 1,729 | (1,338) | (2,329) | (2,287) | (2,764) | (3,157) | (1,938) | (8,208) | |||
Foreign currency translation adjustments | (530) | (143) | 78 | (250) | (591) | 109 | (595) | (732) | |||
Cumulative effect of accounting change | $ 7,501 | ||||||||||
Ending balance | $ 91,767 | $ 89,799 | $ 89,445 | $ 86,816 | $ 86,426 | $ 87,293 | $ 91,767 | $ 86,816 | |||
Common Stock | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance (in shares) | 28,042,359 | 27,850,988 | 27,347,115 | 27,278,649 | 27,083,887 | 26,601,626 | 27,347,115 | 26,601,626 | |||
Beginning balance | $ 28 | $ 28 | $ 27 | $ 27 | $ 27 | $ 27 | $ 27 | $ 27 | |||
Exercise of stock options and vesting of restricted stock units (in shares) | 21,958 | 290,346 | 681,944 | 42,565 | 247,664 | 691,415 | |||||
Exercise of stock options and vesting of restricted stock units | $ 1 | ||||||||||
Statutory tax withholding related to net-share settlement of restricted stock units (in shares) | (5,510) | (98,975) | (178,071) | (9,745) | (52,902) | (209,154) | |||||
Ending balance (in shares) | 28,042,359 | 27,850,988 | 27,347,115 | 27,278,649 | 27,083,887 | 26,601,626 | 27,347,115 | 26,601,626 | 28,058,807 | 27,311,469 | |
Ending balance | $ 28 | $ 28 | $ 28 | $ 27 | $ 27 | $ 27 | $ 28 | $ 27 | |||
Additional Paid-in Capital | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | 275,442 | 273,607 | 271,550 | 266,222 | 263,734 | 262,805 | 271,550 | 262,805 | |||
Exercise of stock options and vesting of restricted stock units | 17 | 15 | 936 | 82 | 845 | 159 | |||||
Stock-based compensation expense | 801 | 2,801 | 3,398 | 2,974 | 2,316 | 2,733 | |||||
Statutory tax withholding related to net-share settlement of restricted stock units | (49) | (981) | (2,277) | (129) | (673) | (1,963) | |||||
Ending balance | 276,211 | 275,442 | 273,607 | 269,149 | 266,222 | 263,734 | 276,211 | 269,149 | |||
Accumulated Other Comprehensive Loss | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | (1,772) | (1,629) | (1,707) | (1,271) | (680) | (789) | (1,707) | (789) | |||
Foreign currency translation adjustments | (530) | (143) | 78 | (250) | (591) | 109 | |||||
Ending balance | (2,302) | (1,772) | (1,629) | (1,521) | (1,271) | (680) | (2,302) | (1,521) | |||
Accumulated Deficit | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | (183,899) | (182,561) | (180,232) | (178,552) | (175,788) | (180,132) | (180,232) | (180,132) | |||
Net income (loss) | 1,729 | (1,338) | (2,329) | (2,287) | (2,764) | (3,157) | |||||
Cumulative effect of accounting change | $ 7,501 | ||||||||||
Ending balance | $ (182,170) | $ (183,899) | $ (182,561) | $ (180,839) | $ (178,552) | $ (175,788) | $ (182,170) | $ (180,839) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Estimated Useful Lives and Amortization Methodology (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 200,000 | $ 200,000 | $ 500,000 | $ 500,000 |
Change in goodwill | $ 0 |
Leases - Financial Statement Im
Leases - Financial Statement Impact of Adopting ASC 842, "Leases" (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Operating lease right of use assets | $ 12,030 | $ 15,099 | |||||||
Other assets | 784 | 1,011 | $ 1,515 | ||||||
Total assets | 141,889 | 148,864 | 134,269 | ||||||
Other current liabilities | 6,455 | 6,685 | 3,569 | ||||||
Total current liabilities | 38,555 | 41,846 | 38,730 | ||||||
Long-term operating leases, net of current portion | 10,597 | 14,310 | |||||||
Lease incentive obligation | 0 | 0 | 2,154 | ||||||
Other long-term liabilities | 970 | 1,686 | 2,343 | ||||||
Total liabilities | 50,122 | 59,246 | 44,631 | ||||||
Accumulated other comprehensive loss | (2,302) | (1,719) | (1,707) | ||||||
Total stockholders' equity | 91,767 | $ 89,799 | $ 89,445 | 89,626 | 89,638 | $ 86,816 | $ 86,426 | $ 87,293 | $ 81,911 |
Total liabilities and stockholders' equity | $ 141,889 | 148,864 | 134,269 | ||||||
Effect of the adoption of ASC 842 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Operating lease right of use assets | 15,099 | ||||||||
Other assets | (504) | ||||||||
Total assets | 14,595 | ||||||||
Other current liabilities | 3,116 | ||||||||
Total current liabilities | 3,116 | ||||||||
Long-term operating leases, net of current portion | 14,310 | ||||||||
Lease incentive obligation | (2,154) | ||||||||
Other long-term liabilities | (657) | ||||||||
Total liabilities | 14,615 | ||||||||
Accumulated other comprehensive loss | (12) | ||||||||
Total stockholders' equity | (12) | ||||||||
Total liabilities and stockholders' equity | $ 14,595 | ||||||||
Ending balance December 31, 2018 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Other assets | 1,515 | ||||||||
Total assets | 134,269 | ||||||||
Other current liabilities | 3,569 | ||||||||
Total current liabilities | 38,730 | ||||||||
Lease incentive obligation | 2,154 | ||||||||
Other long-term liabilities | 2,343 | ||||||||
Total liabilities | 44,631 | ||||||||
Accumulated other comprehensive loss | (1,707) | ||||||||
Total stockholders' equity | 89,638 | ||||||||
Total liabilities and stockholders' equity | $ 134,269 |
Leases - Narrative (Detail)
Leases - Narrative (Detail) | 9 Months Ended |
Sep. 30, 2019lease | |
Leases [Abstract] | |
Operating lease renewal term | 10 years |
Number of operating leases not yet commenced | 0 |
Number of finance leases not yet commenced | 0 |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating lease right of use assets | $ 12,030 | $ 15,099 | |
Finance lease assets, included in Property and equipment, net | 2,273 | ||
Total leased assets | 14,303 | ||
Operating lease liabilities, included in Other current liabilities | 4,462 | ||
Finance lease liabilities, included in Other current liabilities | 1,404 | ||
Long-term operating leases, net of current portion | 10,597 | $ 14,310 | |
Long-term finance leases, net of current portion | 0 | $ 1,404 | |
Total lease liabilities | 16,463 | ||
Finance lease, right-of-use asset, accumulated amortization | $ 5,300 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 35 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | Aug. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease cost, included in General and administrative expense | $ 1,108 | $ 3,418 | |
Amortization of leased assets, included in General and administrative expense | 546 | 1,639 | |
Interest on lease liabilities, included in Other income (expense), net | 26 | 114 | |
Sublease income, reducing rent expense in General and administrative expense | (41) | (126) | |
Net lease cost | 1,639 | 5,045 | |
Short-term lease cost | $ 100 | $ 300 | |
Scenario, Forecast | |||
Lessee, Lease, Description [Line Items] | |||
Sublease income, reducing rent expense in General and administrative expense | $ (200) |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | ||
Operating cash outflows from operating leases | $ 3,594 | |
Operating cash outflows from finance leases | 215 | |
Financing cash outflows from finance leases | $ 2,357 | $ 2,092 |
Weighted Average Lease Term [Abstract] | ||
Operating leases | 3 years 4 months 8 days | |
Finance leases | 1 year 6 months 28 days | |
Weighted Average Discount Rate [Abstract] | ||
Operating leases | 5.50% | |
Finance leases | 7.39% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Detail) | Sep. 30, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 (remaining three months) | $ 1,297,000 |
2020 | 5,084,000 |
2021 | 4,842,000 |
2022 | 4,153,000 |
2023 | 1,151,000 |
Total lease payments | 16,527,000 |
Imputed interest | (1,468,000) |
Present value of lease liabilities | 15,059,000 |
Finance Lease Liabilities, Payments, Due [Abstract] | |
2019 (remaining three months) | 0 |
2020 | 1,507,000 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Total lease payments | 1,507,000 |
Imputed interest | (103,000) |
Present value of lease liabilities | 1,404,000 |
Short-term lease future minimum lease payments | $ 100,000 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 31,678 | $ 32,324 | $ 95,184 | $ 96,429 |
Marketplaces | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 23,348 | 23,965 | 70,466 | 71,631 |
Digital Marketing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,771 | 4,577 | 13,943 | 13,427 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,559 | $ 3,782 | $ 10,775 | $ 11,371 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract period | 12 months | ||
Payment period | 30 days | ||
Revenue | $ 95,184 | ||
Capitalized contract cost, amortization period | 5 years | ||
Deferred revenue | $ 21,803 | $ 21,500 | $ 24,205 |
Marketplaces and Digital Marketing [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue recognition period | 1 year | ||
Contract period | 1 year |
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, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 15.7 |
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 | $ 26.5 |
Performance obligation period |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Deferred Revenue (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Deferred revenue | |
Balance, beginning of period | $ 24,708 |
Net additions | 92,666 |
Revenue recognized | (95,184) |
Balance, end of period | $ 22,190 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Costs to Obtain Contracts (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Deferred contract costs | |
Balance, beginning of period | $ 15,209 |
Additions | 6,044 |
Amortized costs | (3,559) |
Balance, end of period | $ 17,694 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock-Based Compensation [Line Items] | ||||
Stock-based compensation expense | $ 801 | $ 2,974 | $ 7,000 | $ 8,023 |
Cost of revenue | ||||
Stock-Based Compensation [Line Items] | ||||
Stock-based compensation expense | 169 | 298 | 745 | 607 |
Sales and marketing | ||||
Stock-Based Compensation [Line Items] | ||||
Stock-based compensation expense | 0 | 1,003 | 1,773 | 2,483 |
Research and development | ||||
Stock-Based Compensation [Line Items] | ||||
Stock-based compensation expense | 454 | 581 | 1,696 | 1,585 |
General and administrative | ||||
Stock-Based Compensation [Line Items] | ||||
Stock-based compensation expense | $ 178 | $ 1,092 | $ 2,786 | $ 3,348 |
Stock-Based Compensation - Gran
Stock-Based Compensation - Grants in Period (Detail) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Number of Shares Underlying Grant | |
Stock options (in shares) | shares | 554,545 |
Total share-based awards (in shares) | shares | 1,836,371 |
Weighted Average Grant Date Fair Value | |
Stock options (in dollars per share) | $ / shares | $ 4.51 |
Total share-based awards (in dollars per share) | $ / shares | $ 8.27 |
Restricted stock units (RSUs) | |
Number of Shares Underlying Grant | |
Restricted stock units (RSUs) (in shares) | shares | 1,281,826 |
Weighted Average Grant Date Fair Value | |
Restricted stock units (RSUs) (in dollars per share) | $ / shares | $ 9.90 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Calculation of Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Net income (loss) | $ 1,729 | $ (1,338) | $ (2,329) | $ (2,287) | $ (2,764) | $ (3,157) | $ (1,938) | $ (8,208) |
Weighted average common shares outstanding, basic | 28,049,199 | 27,294,134 | 27,824,696 | 27,073,332 | ||||
Basic net income (loss) per share (in dollars per share) | $ 0.06 | $ (0.08) | $ (0.07) | $ (0.30) | ||||
Weighted average common shares outstanding, diluted (in shares) | 28,754,679 | 27,294,134 | 27,824,696 | 27,073,332 | ||||
Diluted net income (loss) per share (in dollars per share) | $ 0.06 | $ (0.08) | $ (0.07) | $ (0.30) | ||||
Stock options | ||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Dilutive effect (in shares) | 169,354 | |||||||
Restricted stock units (RSUs) | ||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||
Dilutive effect (in shares) | 536,126 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Antidilutive Equity Instruments (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
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) | 1,923,938 | 2,289,910 | 2,341,209 | 2,289,910 |
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) | 269,552 | 2,312,407 | 2,206,636 | 2,312,407 |
Income Taxes (Detail)
Income Taxes (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 11.00% | (9.00%) | (41.90%) | (5.60%) |
U.S. federal statutory tax rate | 21.00% | 21.00% | 21.00% |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | ||
Global workforce reduction | 10.00% | |
Severance and related costs | $ 1 | $ 1 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019segment | |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 31,678 | $ 32,324 | $ 95,184 | $ 96,429 |
Domestic | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 23,551 | 24,476 | 71,120 | 74,013 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 8,127 | $ 7,848 | $ 24,064 | $ 22,416 |