Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
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) | 28,365,537 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 56,349 | $ 51,785 |
Accounts receivable, net of allowance of $465 and $733 as of March 31, 2020 and December 31, 2019, respectively | 21,300 | 22,126 |
Prepaid expenses and other current assets | 9,518 | 10,452 |
Total current assets | 87,167 | 84,363 |
Operating lease right of use assets | 10,202 | 11,128 |
Property and equipment, net | 9,322 | 9,597 |
Goodwill | 23,486 | 23,486 |
Intangible assets, net | 1,133 | 1,285 |
Deferred contract costs, net of current portion | 12,347 | 12,810 |
Long-term deferred tax assets, net | 3,113 | 3,584 |
Other assets | 674 | 614 |
Total assets | 147,444 | 146,867 |
Current liabilities: | ||
Accounts payable | 1,272 | 409 |
Accrued expenses | 7,445 | 8,577 |
Deferred revenue | 19,335 | 21,000 |
Other current liabilities | 6,600 | 6,431 |
Total current liabilities | 34,652 | 36,417 |
Long-term operating leases, net of current portion | 8,526 | 9,767 |
Long-term finance leases, net of current portion | 19 | 27 |
Other long-term liabilities | 1,130 | 1,007 |
Total liabilities | 44,327 | 47,218 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding as of March 31, 2020 and December 31, 2019 | 0 | 0 |
Common stock, $0.001 par value, 100,000,000 shares authorized, 28,365,069 and 28,077,469 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively | 28 | 28 |
Additional paid-in capital | 280,132 | 278,111 |
Accumulated other comprehensive loss | (2,540) | (1,740) |
Accumulated deficit | (174,503) | (176,750) |
Total stockholders' equity | 103,117 | 99,649 |
Total liabilities and stockholders' equity | $ 147,444 | $ 146,867 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Allowance for doubtful accounts receivable, current | $ 465 | $ 733 |
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) | 28,365,069 | 28,077,469 |
Common stock, shares outstanding (in shares) | 28,365,069 | 28,077,469 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | $ 32,032 | $ 31,574 |
Cost of revenue | 7,063 | 7,529 |
Gross profit | 24,969 | 24,045 |
Operating expenses: | ||
Sales and marketing | 12,340 | 14,313 |
Research and development | 4,801 | 5,333 |
General and administrative | 5,735 | 6,699 |
Total operating expenses | 22,876 | 26,345 |
Income (loss) from operations | 2,093 | (2,300) |
Other income (expense): | ||
Interest income, net | 126 | 183 |
Other income (expense), net | 8 | (20) |
Total other income | 134 | 163 |
Income (loss) before income taxes | 2,227 | (2,137) |
Income tax expense | 220 | 192 |
Net income (loss) | $ 2,007 | $ (2,329) |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ 0.07 | $ (0.08) |
Diluted (in dollars per share) | $ 0.07 | $ (0.08) |
Weighted average common shares outstanding: | ||
Basic | 28,161,765 | 27,493,049 |
Diluted | 29,047,028 | 27,493,049 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 2,007 | $ (2,329) |
Other comprehensive income: | ||
Foreign currency translation adjustments | (800) | 78 |
Total comprehensive income (loss) | $ 1,207 | $ (2,251) |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net income (loss) | $ 2,007 | $ (2,329) |
Adjustments to reconcile net income (loss) to cash and cash equivalents provided by operating activities: | ||
Depreciation and amortization | 1,478 | 1,546 |
Bad debt expense | 297 | 242 |
Stock-based compensation expense | 2,914 | 3,398 |
Deferred income taxes | 220 | 189 |
Other items, net | (213) | 60 |
Changes in assets and liabilities: | ||
Accounts receivable | 291 | 1,231 |
Prepaid expenses and other assets | 993 | 1,525 |
Deferred contract costs | (60) | (511) |
Accounts payable and accrued expenses | (981) | (3,092) |
Deferred revenue | (1,204) | (839) |
Cash and cash equivalents provided by operating activities | 5,742 | 1,420 |
Cash flows from investing activities | ||
Purchases of property and equipment | (344) | (172) |
Payment of software development costs | (672) | (511) |
Cash and cash equivalents used in investing activities | (1,016) | (683) |
Cash flows from financing activities | ||
Repayment of finance leases | (7) | (446) |
Proceeds from exercise of stock options | 87 | 937 |
Cash and cash equivalents provided by financing activities | 80 | 491 |
Effect of currency exchange rate changes on cash and cash equivalents | (242) | 3 |
Net increase in cash and cash equivalents | 4,564 | 1,231 |
Cash and cash equivalents, beginning of period | 51,785 | 47,185 |
Cash and cash equivalents, end of period | 56,349 | 48,416 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 1 | 11 |
Cash paid for income taxes, net | 144 | 15 |
Supplemental disclosure of noncash investing and financing activities | ||
Accrued statutory tax withholding related to net-share settlement of restricted stock units | 980 | 2,277 |
Accrued capital expenditures | $ 66 | $ 21 |
Description of the Business
Description of the Business | 3 Months Ended |
Mar. 31, 2020 | |
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 SaaS 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 | 3 Months Ended |
Mar. 31, 2020 | |
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, or U.S. GAAP, as contained in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or 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 months ended March 31, 2020 are not necessarily indicative of the results for the full year or the results for any future periods, especially in light of the potential effects of the novel coronavirus, or COVID-19, pandemic on the Company’s business, operations and financial performance. These unaudited interim financial statements should be read in conjunction with the audited financial statements and related footnotes for the year ended December 31, 2019 , or fiscal 2019 , which are included in the Company's Annual Report on Form 10-K for fiscal 2019 . 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 2019 . Recent Accounting Pronouncements Standard Description Effect on the Financial Statements or Other Significant Matters Standards that the Company adopted as of January 1, 2020 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 adopted this standard effective January 1, 2020. The adoption did not have a material impact on its consolidated financial statements, although it resulted in a change in accounting policy for accounts receivable. Refer to "Accounts Receivable" below for additional information regarding the Company’s accounting policy for accounts receivable following the adoption of ASU 2016-13. 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 adopted this standard effective January 1, 2020. The adoption did not have an impact on its consolidated financial statements. Income Taxes: ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes Effective date: January 1, 2020 This standard amends the approaches and methodologies in accounting for income taxes during interim periods and makes changes to certain income tax classifications. The new standard allows exceptions to the use of the incremental approach for intra-period tax allocation, when there is a loss from continuing operations and income or a gain from other items, and to the general methodology for calculating income taxes in an interim period, when a year-to-date loss exceeds the anticipated loss for the year. The standard also requires franchise or similar taxes partially based on income to be reported as income tax and the effects of enacted changes in tax laws or rates to be included in the annual effective tax rate computation from the date of enactment. Lastly, the Company would be required to evaluate when the step-up in the tax basis of goodwill is part of the business combination and when it should be considered a separate transaction. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company early adopted this standard effective January 1, 2020. The early adoption did not have a material impact on its consolidated financial statements or related disclosures. The Company has reviewed new accounting pronouncements that were issued during the three months ended March 31, 2020 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. Accounts Receivable The Company extends credit to customers without requiring collateral. Accounts receivable are stated at amortized cost, net of an allowance for credit losses. The Company records an allowance for credit losses at the time that accounts receivable are initially recorded based on consideration of the current economic environment, expectations of future economic conditions, the Company's historical collection experience and a loss-rate approach whereby impairment is calculated using an estimated loss rate and multiplying it by the asset’s amortized cost at the balance sheet date. The Company reassesses the allowance at each reporting date. When it becomes apparent, based on age or customer circumstances, that such amounts will not be collected, they are charged to the allowance. Payments subsequently received are credited to the credit loss expense account included within general and administrative expense in the condensed consolidated statements of operations. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY The following table summarizes quarterly stockholders' equity activity for the three-month periods ended March 31, 2020 and 2019 (in thousands, except number of shares): Three Months Ended March 31, 2020 Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity Shares Amount Balance, December 31, 2019 28,077,469 $ 28 $ 278,111 $ (1,740 ) $ (176,750 ) $ 99,649 Cumulative effect of accounting change (1) — — — — 240 240 Exercise of stock options and vesting of restricted stock units 394,998 — 87 — — 87 Stock-based compensation expense — — 2,914 — — 2,914 Statutory tax withholding related to net-share settlement of restricted stock units (107,398 ) — (980 ) — — (980 ) Net income — — — — 2,007 2,007 Foreign currency translation adjustments — — — (800 ) — (800 ) Balance, March 31, 2020 28,365,069 $ 28 $ 280,132 $ (2,540 ) $ (174,503 ) $ 103,117 (1) The Company recorded a reduction to accumulated deficit at January 1, 2020 as a result of its adoption of ASU 2016-13, Financial Instruments - Credit Losses . Three Months Ended March 31, 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 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and 2019 . There were no changes to the Company's goodwill during the three months ended March 31, 2020 . |
Capitalized Software Developmen
Capitalized Software Development Costs | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
CAPITALIZED SOFTWARE DEVELOPMENT COSTS | CAPITALIZED SOFTWARE DEVELOPMENT COSTS Software development costs of $0.7 million and $0.5 million related to creating internally developed software and implementing software purchased for internal use were capitalized during the three months ended March 31, 2020 and 2019, respectively, and are included in property and equipment in the accompanying condensed consolidated balance sheets. Amortization expense related to capitalized internally developed software was $0.4 million and $0.1 million during the three months ended March 31, 2020 and 2019, respectively, and is included in cost of revenue or general and administrative expense in the accompanying condensed consolidated statements of operations, depending upon the nature of the software development project. The net book value of capitalized internally developed software was $3.3 million and $2.9 million at March 31, 2020 and December 31, 2019, respectively. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
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. A portion of the subscription fee is typically fixed and is based on a specified minimum amount of gross merchandise value, or 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 majority of the Company's contracts 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 Company's customers are categorized as follows: Retailers. The Company generally categorizes a customer as a retailer if it primarily focuses on selling third-party products. Brands. The Company generally categorizes a customer as a brand if it primarily focuses on selling its own proprietary products. Other. Other is primarily comprised of strategic partnerships. The following table summarizes revenue disaggregation by customer type for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Retailers $ 19,715 $ 21,074 Brands 10,286 8,850 Other 2,031 1,650 $ 32,032 $ 31,574 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 March 31, 2020 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 $22.0 million as of March 31, 2020 , of which $13.7 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 three months ended March 31, 2020 (in thousands): Balance, beginning of period Net additions Revenue recognized Balance, end of period Deferred revenue $ 21,459 24,266 (25,817 ) $ 19,908 Of the $32.0 million of revenue recognized in the three months ended March 31, 2020 , $8.2 million was included in deferred revenue at January 1, 2020. 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." As of March 31, 2020, $5.8 million was included in "Prepaid expenses and other current assets." 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 three months ended March 31, 2020 (in thousands): Balance, beginning of period Additions Amortized costs (1) Balance, end of period Deferred contract costs $ 18,414 1,492 (1,762 ) $ 18,144 (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 | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION In February 2020, the Company’s Compensation Committee implemented changes to the equity compensation program for the Company’s executive officers. Beginning in 2020, 50% of each executive's equity awards were granted in the form of performance-based vesting restricted stock units, or PSUs, that are eligible for vesting only if the Company achieves pre-defined targets set by the Compensation Committee for the Company’s combined year-over-year revenue growth and adjusted earnings before interest, tax, depreciation and amortization, or EBITDA, margin over a multi-year measurement period (a two-year measurement period for fiscal 2020 grants), subject to the executive’s continued service with the Company. For any PSUs to vest, revenue growth must be positive over the performance period. Vesting of these PSU awards is based on a sliding scale of actual performance against the pre-defined goals. The sliding scale ranges from zero vesting and forfeiture of the awards if the Company does not achieve the performance threshold, to an award of up to 150% of the target number of awards if the pre-defined maximum performance is achieved. As soon as reasonably practicable after the completion of the performance period, the Compensation Committee will determine the level of attainment of the performance goal and if the performance threshold is achieved, on the second anniversary of the grant date, subject to the executive’s continued service as of that date, 50% of the earned PSU awards will vest and, on the third anniversary of the grant date, the remaining 50% of earned PSU awards will vest, subject to the executive’s continued service as of that date. The Committee may make adjustments to the manner in which the achievement is determined as it deems equitable and appropriate to exclude the effect of unusual, non-recurring or infrequent matters, transactions or events affecting the Company or its consolidated financial statements; changes in accounting principles, practices or policies or in tax laws or other laws or requirements; or other similar events, matters or changed circumstances. Each adjustment, if any, shall be made solely for the purpose of maintaining the intended economics of the award in light of changed circumstances to prevent the dilution or enlargement of the executive’s rights with respect to the PSUs. The fair value of the PSU awards is determined using the Company’s stock price on the grant date. These awards are equity classified and will be expensed over the requisite service period based on the extent to which achievement of the performance metrics is probable. 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 months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Cost of revenue $ 319 $ 385 Sales and marketing 740 1,036 Research and development 680 730 General and administrative 1,175 1,247 Total stock-based compensation expense $ 2,914 $ 3,398 During the three months ended March 31, 2020 , the Company granted the following share-based awards: Number of Shares Underlying Grant Weighted Average Grant Date Fair Value Restricted stock units 571,649 $ 9.34 Performance stock units 142,317 $ 9.27 Total share-based awards 713,966 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2020 | |
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 (loss) per share is calculated giving effect to all potentially dilutive shares of common stock, including stock options and restricted stock units. 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 March 31, 2020 2019 Basic: Net income (loss) $ 2,007 $ (2,329 ) Weighted average common shares outstanding, basic 28,161,765 27,493,049 Basic net income (loss) per share $ 0.07 $ (0.08 ) Diluted: Net income (loss) $ 2,007 $ (2,329 ) Weighted average common shares outstanding, basic 28,161,765 27,493,049 Dilutive effect of: Stock options 115,241 — Unvested restricted stock units 770,022 — Weighted average common shares outstanding, diluted 29,047,028 27,493,049 Diluted net income (loss) per share $ 0.07 $ (0.08 ) 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 March 31, 2020 2019 Stock options 1,857,279 2,530,493 Restricted stock units 252,297 1,779,799 PSUs 46,918 — |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES At the end of each interim reporting period, the Company estimates its effective income tax rate expected to be applicable for the full year. This estimate is used to determine the income tax provision or benefit on a year-to-date basis and may change in subsequent interim periods. The Company's effective tax rate was 9.9% and (9.0)% for the three months ended March 31, 2020 and 2019 , 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 March 31, 2020 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 2019 to pre-tax income for the three month period in 2020. The Tax Cuts and Jobs Act of 2017, or Tax Act, which went into effect on December 22, 2017, significantly revised 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 March 31, 2020 , the Internal Revenue Service, or 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 months ended March 31, 2020 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. The Coronavirus, Aid, Relief and Economic Security Act, or CARES Act, was enacted on March 27, 2020. The CARES Act includes both income tax and non-income tax measures to assist companies. Some of the key income tax-related provisions of the CARES Act include the elimination of the 80% limitation on certain net operating loss carryforwards and allowing net operating loss carrybacks, an increase to the interest expense deduction limit, passage of technical corrections to the Tax Cuts and Jobs Act of 2017, and acceleration of the Alternative Minimum Tax Credit refund. In addition to the income tax provisions, the CARES Act includes non-income tax provisions, such as loan programs, penalty and interest free deferral of certain tax payments, and payroll tax credits. The Company is still evaluating relief measures in the CARES Act to determine its applicability and the Company’s eligibility; however, the Company has decided not to apply for any of the loan programs in the CARES Act. The relevant corporate income tax changes have been incorporated into the Company's income tax provision for the three months ended March 31, 2020 based on the language in the CARES Act and any guidance promulgated prior to the issuance of these financial statements. These corporate tax changes had an insignificant impact on the income tax provision for the three months ended March 31, 2020 . The Company is also monitoring COVID-19 tax relief developments in U.S. states and foreign jurisdictions where the Company has operations. The Company is currently benefiting from penalty and interest free tax payment deferral in a few of the jurisdictions where the Company has operations, including deferral of the employer portion of the 2020 U.S. Social Security tax payments as provided in the CARES Act. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Mar. 31, 2020 | |
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, or 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 three months ended March 31, 2020 and the year ended December 31, 2019 . The Company categorizes domestic and international revenue from customers based on their billing address. The following table summarizes revenue by geography for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 (1) Domestic $ 23,914 $ 23,712 International 8,118 7,862 Total revenue $ 32,032 $ 31,574 (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. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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, or U.S. GAAP, as contained in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or 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 months ended March 31, 2020 are not necessarily indicative of the results for the full year or the results for any future periods, especially in light of the potential effects of the novel coronavirus, or COVID-19, pandemic on the Company’s business, operations and financial performance. These unaudited interim financial statements should be read in conjunction with the audited financial statements and related footnotes for the year ended December 31, 2019 , or fiscal 2019 , which are included in the Company's Annual Report on Form 10-K for fiscal 2019 . 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 2019 . |
Recent Accounting Pronouncements | Standard Description Effect on the Financial Statements or Other Significant Matters Standards that the Company adopted as of January 1, 2020 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 adopted this standard effective January 1, 2020. The adoption did not have a material impact on its consolidated financial statements, although it resulted in a change in accounting policy for accounts receivable. Refer to "Accounts Receivable" below for additional information regarding the Company’s accounting policy for accounts receivable following the adoption of ASU 2016-13. 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 adopted this standard effective January 1, 2020. The adoption did not have an impact on its consolidated financial statements. Income Taxes: ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes Effective date: January 1, 2020 This standard amends the approaches and methodologies in accounting for income taxes during interim periods and makes changes to certain income tax classifications. The new standard allows exceptions to the use of the incremental approach for intra-period tax allocation, when there is a loss from continuing operations and income or a gain from other items, and to the general methodology for calculating income taxes in an interim period, when a year-to-date loss exceeds the anticipated loss for the year. The standard also requires franchise or similar taxes partially based on income to be reported as income tax and the effects of enacted changes in tax laws or rates to be included in the annual effective tax rate computation from the date of enactment. Lastly, the Company would be required to evaluate when the step-up in the tax basis of goodwill is part of the business combination and when it should be considered a separate transaction. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company early adopted this standard effective January 1, 2020. The early adoption did not have a material impact on its consolidated financial statements or related disclosures. |
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. |
Accounts Receivable | The Company extends credit to customers without requiring collateral. Accounts receivable are stated at amortized cost, net of an allowance for credit losses. The Company records an allowance for credit losses at the time that accounts receivable are initially recorded based on consideration of the current economic environment, expectations of future economic conditions, the Company's historical collection experience and a loss-rate approach whereby impairment is calculated using an estimated loss rate and multiplying it by the asset’s amortized cost at the balance sheet date. The Company reassesses the allowance at each reporting date. When it becomes apparent, based on age or customer circumstances, that such amounts will not be collected, they are charged to the allowance. Payments subsequently received are credited to the credit loss expense account included within general and administrative expense in the condensed consolidated statements of operations. |
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." As of March 31, 2020, $5.8 million was included in "Prepaid expenses and other current assets." 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 (loss) per share is calculated giving effect to all potentially dilutive shares of common stock, including stock options and restricted stock units. 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) | 3 Months Ended |
Mar. 31, 2020 | |
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 adopted as of January 1, 2020 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 adopted this standard effective January 1, 2020. The adoption did not have a material impact on its consolidated financial statements, although it resulted in a change in accounting policy for accounts receivable. Refer to "Accounts Receivable" below for additional information regarding the Company’s accounting policy for accounts receivable following the adoption of ASU 2016-13. 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 adopted this standard effective January 1, 2020. The adoption did not have an impact on its consolidated financial statements. Income Taxes: ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes Effective date: January 1, 2020 This standard amends the approaches and methodologies in accounting for income taxes during interim periods and makes changes to certain income tax classifications. The new standard allows exceptions to the use of the incremental approach for intra-period tax allocation, when there is a loss from continuing operations and income or a gain from other items, and to the general methodology for calculating income taxes in an interim period, when a year-to-date loss exceeds the anticipated loss for the year. The standard also requires franchise or similar taxes partially based on income to be reported as income tax and the effects of enacted changes in tax laws or rates to be included in the annual effective tax rate computation from the date of enactment. Lastly, the Company would be required to evaluate when the step-up in the tax basis of goodwill is part of the business combination and when it should be considered a separate transaction. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company early adopted this standard effective January 1, 2020. The early adoption did not have a material impact on its consolidated financial statements or related disclosures. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Stockholders Equity | The following table summarizes quarterly stockholders' equity activity for the three-month periods ended March 31, 2020 and 2019 (in thousands, except number of shares): Three Months Ended March 31, 2020 Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity Shares Amount Balance, December 31, 2019 28,077,469 $ 28 $ 278,111 $ (1,740 ) $ (176,750 ) $ 99,649 Cumulative effect of accounting change (1) — — — — 240 240 Exercise of stock options and vesting of restricted stock units 394,998 — 87 — — 87 Stock-based compensation expense — — 2,914 — — 2,914 Statutory tax withholding related to net-share settlement of restricted stock units (107,398 ) — (980 ) — — (980 ) Net income — — — — 2,007 2,007 Foreign currency translation adjustments — — — (800 ) — (800 ) Balance, March 31, 2020 28,365,069 $ 28 $ 280,132 $ (2,540 ) $ (174,503 ) $ 103,117 (1) The Company recorded a reduction to accumulated deficit at January 1, 2020 as a result of its adoption of ASU 2016-13, Financial Instruments - Credit Losses . Three Months Ended March 31, 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 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The estimated useful lives and amortization methodology used in computing amortization are as follows: Estimated Useful Life Amortization Methodology Customer relationships 7 years Straight-line Acquired technology 7 years Straight-line |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue disaggregation by customer type for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Retailers $ 19,715 $ 21,074 Brands 10,286 8,850 Other 2,031 1,650 $ 32,032 $ 31,574 |
Deferred Revenue | The following table summarizes deferred revenue activity for the three months ended March 31, 2020 (in thousands): Balance, beginning of period Net additions Revenue recognized Balance, end of period Deferred revenue $ 21,459 24,266 (25,817 ) $ 19,908 |
Deferred Contract Costs | The following table summarizes deferred contract cost activity for the three months ended March 31, 2020 (in thousands): Balance, beginning of period Additions Amortized costs (1) Balance, end of period Deferred contract costs $ 18,414 1,492 (1,762 ) $ 18,144 (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) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [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 months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 Cost of revenue $ 319 $ 385 Sales and marketing 740 1,036 Research and development 680 730 General and administrative 1,175 1,247 Total stock-based compensation expense $ 2,914 $ 3,398 |
Summary of Awards Granted in Period | During the three months ended March 31, 2020 , the Company granted the following share-based awards: Number of Shares Underlying Grant Weighted Average Grant Date Fair Value Restricted stock units 571,649 $ 9.34 Performance stock units 142,317 $ 9.27 Total share-based awards 713,966 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 2019 Basic: Net income (loss) $ 2,007 $ (2,329 ) Weighted average common shares outstanding, basic 28,161,765 27,493,049 Basic net income (loss) per share $ 0.07 $ (0.08 ) Diluted: Net income (loss) $ 2,007 $ (2,329 ) Weighted average common shares outstanding, basic 28,161,765 27,493,049 Dilutive effect of: Stock options 115,241 — Unvested restricted stock units 770,022 — Weighted average common shares outstanding, diluted 29,047,028 27,493,049 Diluted net income (loss) per share $ 0.07 $ (0.08 ) |
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 March 31, 2020 2019 Stock options 1,857,279 2,530,493 Restricted stock units 252,297 1,779,799 PSUs 46,918 — |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geography | The following table summarizes revenue by geography for the three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 2019 (1) Domestic $ 23,914 $ 23,712 International 8,118 7,862 Total revenue $ 32,032 $ 31,574 |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Jan. 01, 2020 | Mar. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | $ 99,649 | $ 89,638 | |||
Exercise of stock options and vesting of restricted stock units | 87 | 937 | |||
Stock-based compensation expense | 2,914 | 3,398 | |||
Statutory tax withholding related to net-share settlement of restricted stock units | (980) | (2,277) | |||
Net income (loss) | 2,007 | (2,329) | |||
Foreign currency translation adjustments | (800) | 78 | |||
Cumulative effect of accounting change | $ 240 | ||||
Ending balance | $ 103,117 | $ 89,445 | |||
Common Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance (in shares) | 28,077,469 | 27,347,115 | |||
Beginning balance | $ 28 | $ 27 | |||
Exercise of stock options and vesting of restricted stock units (in shares) | 394,998 | 681,944 | |||
Exercise of stock options and vesting of restricted stock units | $ 0 | $ 1 | |||
Statutory tax withholding related to net-share settlement of restricted stock units (in shares) | (107,398) | (178,071) | |||
Ending balance (in shares) | 28,077,469 | 27,347,115 | 28,365,069 | 27,850,988 | |
Ending balance | $ 28 | $ 28 | |||
Additional Paid-in Capital | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | 278,111 | 271,550 | |||
Exercise of stock options and vesting of restricted stock units | 87 | 936 | |||
Stock-based compensation expense | 2,914 | 3,398 | |||
Statutory tax withholding related to net-share settlement of restricted stock units | (980) | (2,277) | |||
Ending balance | 280,132 | 273,607 | |||
Accumulated Other Comprehensive Loss | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | (1,740) | (1,707) | |||
Foreign currency translation adjustments | (800) | 78 | |||
Ending balance | (2,540) | (1,629) | |||
Accumulated Deficit | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance | (176,750) | (180,232) | |||
Net income (loss) | 2,007 | (2,329) | |||
Cumulative effect of accounting change | $ 240 | ||||
Ending balance | $ (174,503) | $ (182,561) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Estimated Useful Lives and Amortization Methodology (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $ 200,000 | $ 200,000 |
Change in goodwill | $ 0 |
Capitalized Software Developm_2
Capitalized Software Development Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Capitalized software development costs | $ 0.7 | $ 0.5 | |
Capitalized software development costs amortization | 0.4 | $ 0.1 | |
Capitalized software development costs, net | $ 3.3 | $ 2.9 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 32,032 | $ 31,574 |
Retailers | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 19,715 | 21,074 |
Brands | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 10,286 | 8,850 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2,031 | $ 1,650 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract period | 12 months | ||
Payment period | 30 days | ||
Revenue | $ 32,000 | ||
Deferred contract costs, current | $ 5,800 | ||
Capitalized contract cost, amortization period | 5 years | ||
Deferred revenue | $ 19,335 | $ 8,200 | $ 21,000 |
Marketplaces and Digital Marketing [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
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 | Mar. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 22 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 13.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation period | 12 months |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Deferred Revenue (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Deferred revenue | |
Balance, beginning of period | $ 21,459 |
Net additions | 24,266 |
Revenue recognized | (25,817) |
Balance, end of period | $ 19,908 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Costs to Obtain Contracts (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Deferred contract costs | |
Balance, beginning of period | $ 18,414 |
Additions | 1,492 |
Amortized costs | (1,762) |
Balance, end of period | $ 18,144 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | $ 2,914 | $ 3,398 |
Cost of revenue | ||
Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | 319 | 385 |
Sales and marketing | ||
Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | 740 | 1,036 |
Research and development | ||
Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | 680 | 730 |
General and administrative | ||
Stock-Based Compensation [Line Items] | ||
Stock-based compensation expense | $ 1,175 | $ 1,247 |
Stock-Based Compensation - Gran
Stock-Based Compensation - Grants in Period (Detail) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of Shares Underlying Grant | |
Total share-based awards (in shares) | 713,966 |
Restricted stock units | |
Number of Shares Underlying Grant | |
Restricted stock units (RSUs) (in shares) | 571,649 |
Weighted Average Grant Date Fair Value | |
Restricted stock units (RSUs) (in dollars per share) | $ / shares | $ 9.34 |
Performance Shares [Member] | |
Number of Shares Underlying Grant | |
Restricted stock units (RSUs) (in shares) | 142,317 |
Weighted Average Grant Date Fair Value | |
Restricted stock units (RSUs) (in dollars per share) | $ / shares | $ 9.27 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent Of Executive Office Equity Awards Granted As Performance-Based Vesting Restricted Stock Units | 50.00% |
Share-based Payment Arrangement, Tranche One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% |
Share-based Payment Arrangement, Tranche Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 150.00% |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income (loss) | $ 2,007 | $ (2,329) |
Weighted average common shares outstanding, basic | 28,161,765 | 27,493,049 |
Basic net income (loss) per share (in dollars per share) | $ 0.07 | $ (0.08) |
Weighted average common shares outstanding, diluted (in shares) | 29,047,028 | 27,493,049 |
Diluted net income (loss) per share (in dollars per share) | $ 0.07 | $ (0.08) |
Stock options | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Dilutive effect (in shares) | 115,241 | |
Restricted stock units | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Dilutive effect (in shares) | 770,022 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Antidilutive Equity Instruments (Detail) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
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) | 1,857,279 | 2,530,493 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from calculation of weighted average common shares outstanding (in shares) | 252,297 | 1,779,799 |
Performance Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from calculation of weighted average common shares outstanding (in shares) | 46,918 |
Income Taxes (Detail)
Income Taxes (Detail) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 9.90% | (9.00%) |
U.S. federal statutory tax rate | 21.00% | 21.00% |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020segment | |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 32,032 | $ 31,574 |
Domestic | ||
Segment Reporting Information [Line Items] | ||
Revenue | 23,914 | 23,712 |
International | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 8,118 | $ 7,862 |