Intersect ENT (XENT) 10-Q 6 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	XENT
Entity Registrant Name	Intersect ENT, Inc.
Entity Central Index Key	1,271,214
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		29,455,904

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	[1]
Current assets:
Cash and cash equivalents	$ 18,556	$ 9,859
Short-term investments, available-for-sale	83,942	94,086
Accounts receivable, net	11,680	14,421
Inventory	8,728	5,613
Prepaid expenses and other current assets	1,576	1,313
Total current assets	124,482	125,292
Property and equipment, net	4,572	4,127
Other non-current assets	481	358
Total assets	129,535	129,777
Current liabilities:
Accounts payable	2,486	3,267
Accrued compensation	11,236	10,152
Other current liabilities	981	945
Total current liabilities	14,703	14,364
Deferred rent and other non-current liabilities	793	1,016
Total liabilities	15,496	15,380
Commitments and contingencies (note 8)
Stockholders' equity:
Preferred stock, $0.001 par value; Authorized shares: 10,000 at September 30, 2017 and December 31, 2016; Issued and outstanding shares: none
Common stock, $0.001 par value; Authorized shares: 150,000 at September 30, 2017 and December 31, 2016; Issued and outstanding shares: 29,385 at September 30, 2017 and 28,673 at December 31, 2016	29	29
Additional paid-in capital	275,715	262,882
Accumulated other comprehensive loss	(17)	(37)
Accumulated deficit	(161,688)	(148,477)
Total stockholders' equity	114,039	114,397
Total liabilities and stockholders' equity	$ 129,535	$ 129,777
[1]	Amounts have been derived from the December 31, 2016 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016	[1]
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	29,385,000	28,673,000
Common stock, shares outstanding	29,385,000	28,673,000
[1]	Amounts have been derived from the December 31, 2016 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Condensed Statements of Operati

Condensed Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenue	$ 22,313	$ 18,468	$ 66,772	$ 54,477
Cost of sales	3,808	2,788	10,376	9,115
Gross profit	18,505	15,680	56,396	45,362
Operating expenses:
Selling, general and administrative	18,746	17,905	57,747	53,093
Research and development	4,346	4,237	12,742	13,320
Total operating expenses	23,092	22,142	70,489	66,413
Loss from operations	(4,587)	(6,462)	(14,093)	(21,051)
Interest income and other, net	326	236	882	645
Net loss	(4,261)	(6,226)	(13,211)	(20,406)
Other comprehensive income (loss):
Unrealized gain (loss) on short-term investments	23	(31)	20	102
Comprehensive loss	$ (4,238)	$ (6,257)	$ (13,191)	$ (20,304)
Net loss per share, basic and diluted	$ (0.15)	$ (0.22)	$ (0.46)	$ (0.72)
Weighted average common shares used to compute net loss per share, basic and diluted	29,269	28,479	28,978	28,356

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016
Operating activities:
Net loss	$ (13,211)		$ (20,406)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	1,074		832
Stock-based compensation expense	7,277		5,628
Amortization of net investment premium	11		164
Changes in operating assets and liabilities:
Accounts receivable, net	2,741		1,493
Inventory	(3,115)		(3,220)
Prepaid expenses and other assets	(238)		67
Accounts payable	(662)		1,363
Accrued compensation	1,084		(458)
Deferred rent and other liabilities	(267)		(583)
Net cash used in operating activities	(5,306)		(15,120)
Investing activities:
Purchases of short-term investments	(88,568)		(115,996)
Maturities of short-term investments	98,721		113,166
Purchases of property and equipment	(1,707)		(1,614)
Net cash provided by (used in) investing activities	8,446		(4,444)
Financing activities:
Proceeds from issuance of common stock	5,557		1,179
Net cash provided by financing activities	5,557		1,179
Net increase (decrease) in cash and cash equivalents	8,697		(18,385)
Cash and cash equivalents:
Beginning of the period	9,859	[1]	34,809
End of the period	18,556		16,424
Non-cash investing activities:
Property and equipment included in accounts payable	$ 97		$ 75
[1]	Amounts have been derived from the December 31, 2016 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Organization

Organization	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Description of Business Intersect ENT, Inc. (the “Company”) is incorporated in the state of Delaware and its facilities are located in Menlo Park, California. The Company is a commercial stage drug-device company committed to improving the quality of life for patients with ear, nose and throat conditions. The Company’s approved and in-development products are steroid releasing implants designed to treat the spectrum of needs among patients who are managed by ear, nose and throat (“ENT”) physicians for chronic sinusitis, one of the most prevalent chronic diseases in the United States and one of the most costly conditions for U.S. employers. The Company’s current commercial products comprise the PROPEL ® ® ® ® TM Liquidity and Business Risks As of September 30, 2017, the Company had cash, cash equivalents and short-term investments of $102.5 million, and an accumulated deficit of $161.7 million. The Company expects its cash, cash equivalents and short-term investments will be sufficient to fund its operations through at least the next twelve months.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Preparation The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The interim financial data as of September 30, 2017, is unaudited and is not necessarily indicative of the results for the full year. In the opinion of the Company’s management, the interim data includes only normal and recurring adjustments necessary for a fair presentation of the Company’s financial results for the three and nine months ended September 30, 2017 and 2016. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations relating to interim financial statements. The accompanying condensed financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K (“Annual Report”) for the year ended December 31, 2016 filed with the SEC on February 28, 2017. 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 and disclosures reported in the financial statements. Management uses significant judgment when making estimates related to its common stock valuation and related stock-based compensation, as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Significant Accounting Policies There have been no significant changes to the accounting policies during the nine months ended September 30, 2017, as compared to the significant accounting policies described in Note 2 of the “Notes to Financial Statements” in the Company’s audited financial statements included in its Annual Report. Recent Accounting Pronouncements There have been no significant changes to the disclosures in the recent accounting pronouncements during the nine months ended September 30, 2017, as compared to the recent accounting pronouncements described in Note 2 of the “Notes to Financial Statements” in the Company’s audited financial statements included in its Annual Report, except as described below. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-9, Improvements to Employee Share-Based Payment Accounting In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date Revenue from Contracts with Customers

Composition of Certain Financia

Composition of Certain Financial Statement Items	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Composition of Certain Financial Statement Items	3. Composition of Certain Financial Statement Items Accounts Receivable (in thousands): September 30, 2017 December 31, 2016 Accounts receivable $ 11,778 $ 14,583 Allowance for doubtful accounts (98 ) (162 ) $ 11,680 $ 14,421 Inventory (in thousands): September 30, December 31, Raw materials $ 1,043 $ 778 Work-in-process 431 247 Finished goods 7,254 4,588 $ 8,728 $ 5,613

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-term Investments	9 Months Ended
	Sep. 30, 2017
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents and Short-term Investments	4. Cash, Cash Equivalents and Short-term Investments The following is a summary of cash, cash equivalents and short-term investments (available-for-sale), by type of instrument (in thousands): September 30, December 31, Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Cost Gains Losses Fair Value Cost Gains Losses Fair Value Cash $ 8,064 $ — $ — $ 8,064 $ 5,222 $ — $ — $ 5,222 Money market funds 10,493 — — 10,493 4,637 — — 4,637 Corporate debt securities 67,058 2 (13 ) 67,047 51,761 3 (26 ) 51,738 Commercial paper 16,900 1 (7 ) 16,894 42,362 6 (20 ) 42,348 $ 102,515 $ 3 $ (20 ) $ 102,498 $ 103,982 $ 9 $ (46 ) $ 103,945 Reported as: Cash and cash equivalents $ 18,556 $ 9,859 Short-term investments, available-for-sale 83,942 94,086 $ 102,498 $ 103,945 As of September 30, 2017 and December 31, 2016, the Company had no investments with a contractual maturity of greater than one year. Based on an evaluation of securities that have been in a loss position, the Company did not recognize any other-than-temporary impairment charges during the nine months ended September 30, 2017 and year ended December 31, 2016. The Company considered various factors which included a credit and liquidity assessment of the underlying securities and the Company’s intent and ability to hold the underlying securities until the estimated date of recovery of its amortized cost.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	5. Fair Value of Financial Instruments The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents and short-term investments, available-for-sale. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 – Observable inputs such as quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Other inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Level 3 – Unobservable inputs that are supported by little or no market activities, which would require the Company to develop its own assumptions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Cash, Cash Equivalents and Short-term Investments The following is a summary of cash, cash equivalents and short-term investments (available-for-sale), by type of instrument measured at fair value on a recurring basis (in thousands): September 30, December 31, Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 8,064 $ — $ — $ 8,064 $ 5,222 $ — $ — $ 5,222 Money market funds 10,493 — — 10,493 4,637 — — 4,637 Corporate debt securities — 67,047 — 67,047 — 51,738 — 51,738 Commercial paper — 16,894 — 16,894 — 42,348 — 42,348 $ 18,557 $ 83,941 $ — $ 102,498 $ 9,859 $ 94,086 $ — $ 103,945 Reported as: Cash and cash equivalents $ 18,556 $ 9,859 Short-term investments, available-for-sale 83,942 94,086 $ 102,498 $ 103,945 There were no transfers in and out of Level 1 and Level 2 during the nine months ended September 30, 2017 and year ended December 31, 2016.

Stock-based Compensation Expens

Stock-based Compensation Expense	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation Expense	6. Stock-based Compensation Expense 2014 Equity Incentive Plan In July 2014, the Company’s board of directors approved the 2014 Equity Incentive Plan (the “2014 Plan”), which became effective upon the Company’s Initial Public Offering (“IPO”). The number of shares of common stock reserved for issuance under the 2014 Plan will automatically increase on January 1 of each year, beginning on January 1, 2015, and continuing through and including January 1, 2024, by 3% of the total number of shares of the Company’s capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the Company’s board of directors. On January 1, 2017, the total number of shares of common stock reserved for issuance increased by 860,019 shares to 7,156,121 shares. The 2014 Plan allows the Company to grant stock options, stock appreciation rights, restricted stock, restricted stock units and certain other awards to individuals who are employees, officers, directors or consultants of the Company. In January 2017, the Company began issuing restricted stock units (“RSUs”). The RSUs generally vest annually over three years. A summary of the Company’s stock option activity and related information (options in thousands): Nine Months Ended September 30, 2017 Options Weighted Average Outstanding, beginning of period 3,585 $ 14.81 Granted 1,210 15.20 Exercised (638 ) 7.50 Forfeited (191 ) 19.35 Expired (4 ) 2.60 Outstanding, end of period 3,962 15.90 Exercisable 1,865 14.39 As of September 30, 2017, the aggregate pre-tax intrinsic value of options outstanding was $60.4 million and options outstanding and exercisable was $31.3 million, the weighted-average remaining contractual term of options outstanding was 8.1 years and options outstanding and exercisable was 7.3 years. The aggregate pre-tax intrinsic value of options exercised was $11.2 million and $5.1 million during the nine months ended September 30, 2017 and 2016, respectively. A summary of the Company’s RSU activity and related information (RSUs in thousands): Nine Months Ended RSUs Weighted Average Outstanding, beginning of period — $ — Awarded 288 13.74 Forfeited (10 ) 16.65 Outstanding, end of period 278 13.64 As of September 30, 2017, the aggregate pre-tax intrinsic value of RSUs outstanding was $8.7 million, calculated based on the closing price of the Company’s common stock at the end of the period, and the weighted-average remaining contractual term of RSUs outstanding was 2.2 years. Total stock-based compensation expense by award type (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock options (including ESPP) $ 2,157 $ 1,801 $ 6,395 $ 5,628 RSUs 348 — 882 — $ 2,505 $ 1,801 $ 7,277 $ 5,628 Total stock-based compensation expense as it related to the Company’s condensed statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of sales $ 222 $ 176 $ 670 $ 528 Selling, general and administrative 1,863 1,337 5,387 4,238 Research and development 420 288 1,220 862 $ 2,505 $ 1,801 $ 7,277 $ 5,628 As of September 30, 2017, the amount of unearned stock-based compensation currently estimated to be expensed through the year 2021 related to unvested employee stock-based awards was $19.8 million and the weighted average period over which the unearned stock-based compensation is expected to be recognized was 2.5 years. If there are any modifications or cancellations of the underlying unvested securities, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that the Company grants additional share-based payments. The fair value of options granted to employees and/or directors during the periods presented below were estimated as of the grant date using the Black-Scholes model assuming the following weighted average assumptions: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Expected term (years) 6.0 6.0 6.0 6.0 Expected volatility 45 % 44 % 45 % 44 % Risk-free interest rate 2.0 % 1.2 % 2.1 % 1.5 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Fair value $ 12.78 $ 6.24 $ 6.86 $ 7.90 The fair value of RSUs is estimated using the Company’s stock price on the grant date. 2014 Employee Stock Purchase Plan In July 2014, the Company’s board of directors approved the 2014 Employee Stock Purchase Plan (“2014 ESPP”). The 2014 ESPP became effective on the effective date of the IPO. A total of 496,092 shares were initially reserved for issuance under the 2014 ESPP. During the nine months ended September 30, 2017 and 2016, 74,791 and 67,755 shares were issued, respectively. The fair value of options granted under the 2014 ESPP to employees was estimated as of the grant date using the Black-Scholes model assuming the following weighted average assumptions: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Expected term (years) 1.3 1.3 1.3 1.3 Expected volatility 44 % 49 % 44 % 49 % Risk-free interest rate 1.2 % 0.6 % 1.2 % 0.6 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Fair value $ 8.08 $ 4.53 $ 8.08 $ 4.53

Net Loss per Share

Net Loss per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Loss per Share	7. Net Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock and dilutive potential shares of common stock outstanding during the period. Because the Company has reported a net loss for all periods presented, diluted net loss per share is the same as basic net loss per share for those periods as all potentially dilutive securities were antidilutive in those periods. The following potentially dilutive securities outstanding have been excluded from the computations of weighted average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares, in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Common stock options 3,962 3,653 3,962 3,653 RSUs 278 — 278 — ESPP shares 260 274 260 274 4,500 3,927 4,500 3,927

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies Contingencies In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such amounts can be reasonably estimated. Indemnification The Company’s amended and restated certificate of incorporation contains provisions limiting the liability of directors, and its amended and restated bylaws provide that the Company will indemnify each of its directors to the fullest extent permitted under Delaware law. The Company’s amended and restated certificate of incorporation and amended and restated bylaws also provide its board of directors with discretion to indemnify its officers and employees when determined appropriate by the board. In addition, the Company has entered and expects to continue to enter into agreements to indemnify its directors and executive officers. Litigation The Company is not currently a party to any material legal proceedings. The Company may at times be involved in litigation and other legal claims in the ordinary course of business. When appropriate in the Company’s estimation, it may record reserves in its financial statements for pending litigation and other claims.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Preparation	Basis of Preparation The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The interim financial data as of September 30, 2017, is unaudited and is not necessarily indicative of the results for the full year. In the opinion of the Company’s management, the interim data includes only normal and recurring adjustments necessary for a fair presentation of the Company’s financial results for the three and nine months ended September 30, 2017 and 2016. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations relating to interim financial statements. The accompanying condensed financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K (“Annual Report”) for the year ended December 31, 2016 filed with the SEC on February 28, 2017.
Use of Estimates	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 and disclosures reported in the financial statements. Management uses significant judgment when making estimates related to its common stock valuation and related stock-based compensation, as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.
Significant Accounting Policies	Significant Accounting Policies There have been no significant changes to the accounting policies during the nine months ended September 30, 2017, as compared to the significant accounting policies described in Note 2 of the “Notes to Financial Statements” in the Company’s audited financial statements included in its Annual Report.
Recent Accounting Pronouncements	Recent Accounting Pronouncements There have been no significant changes to the disclosures in the recent accounting pronouncements during the nine months ended September 30, 2017, as compared to the recent accounting pronouncements described in Note 2 of the “Notes to Financial Statements” in the Company’s audited financial statements included in its Annual Report, except as described below. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-9, Improvements to Employee Share-Based Payment Accounting In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date Revenue from Contracts with Customers

Composition of Certain Financ15

Composition of Certain Financial Statement Items (Tables)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable	Accounts Receivable (in thousands): September 30, 2017 December 31, 2016 Accounts receivable $ 11,778 $ 14,583 Allowance for doubtful accounts (98 ) (162 ) $ 11,680 $ 14,421
Components of Inventory	Inventory (in thousands): September 30, December 31, Raw materials $ 1,043 $ 778 Work-in-process 431 247 Finished goods 7,254 4,588 $ 8,728 $ 5,613

Cash, Cash Equivalents and Sh16

Cash, Cash Equivalents and Short-term Investments (Tables)	9 Months Ended
	Sep. 30, 2017
Cash and Cash Equivalents [Abstract]
Summary of Cash, Cash Equivalents and Available-for-Sale Investments by Type of Instrument	The following is a summary of cash, cash equivalents and short-term investments (available-for-sale), by type of instrument (in thousands): September 30, December 31, Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Cost Gains Losses Fair Value Cost Gains Losses Fair Value Cash $ 8,064 $ — $ — $ 8,064 $ 5,222 $ — $ — $ 5,222 Money market funds 10,493 — — 10,493 4,637 — — 4,637 Corporate debt securities 67,058 2 (13 ) 67,047 51,761 3 (26 ) 51,738 Commercial paper 16,900 1 (7 ) 16,894 42,362 6 (20 ) 42,348 $ 102,515 $ 3 $ (20 ) $ 102,498 $ 103,982 $ 9 $ (46 ) $ 103,945 Reported as: Cash and cash equivalents $ 18,556 $ 9,859 Short-term investments, available-for-sale 83,942 94,086 $ 102,498 $ 103,945

Fair Value of Financial Instr17

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Summary of Cash, Cash Equivalents and (Available-for-Sale) Investments Measured at Fair Value on Recurring Basis	The following is a summary of cash, cash equivalents and short-term investments (available-for-sale), by type of instrument measured at fair value on a recurring basis (in thousands): September 30, December 31, Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 8,064 $ — $ — $ 8,064 $ 5,222 $ — $ — $ 5,222 Money market funds 10,493 — — 10,493 4,637 — — 4,637 Corporate debt securities — 67,047 — 67,047 — 51,738 — 51,738 Commercial paper — 16,894 — 16,894 — 42,348 — 42,348 $ 18,557 $ 83,941 $ — $ 102,498 $ 9,859 $ 94,086 $ — $ 103,945 Reported as: Cash and cash equivalents $ 18,556 $ 9,859 Short-term investments, available-for-sale 83,942 94,086 $ 102,498 $ 103,945

Stock-based Compensation Expe18

Stock-based Compensation Expense (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Option Activity	A summary of the Company’s stock option activity and related information (options in thousands): Nine Months Ended September 30, 2017 Options Weighted Average Outstanding, beginning of period 3,585 $ 14.81 Granted 1,210 15.20 Exercised (638 ) 7.50 Forfeited (191 ) 19.35 Expired (4 ) 2.60 Outstanding, end of period 3,962 15.90 Exercisable 1,865 14.39
Summary of Restricted Stock Units Activity	A summary of the Company’s RSU activity and related information (RSUs in thousands): Nine Months Ended RSUs Weighted Average Outstanding, beginning of period — $ — Awarded 288 13.74 Forfeited (10 ) 16.65 Outstanding, end of period 278 13.64
Summary of Stock-based Compensation Expense by Award Type	Total stock-based compensation expense by award type (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Stock options (including ESPP) $ 2,157 $ 1,801 $ 6,395 $ 5,628 RSUs 348 — 882 — $ 2,505 $ 1,801 $ 7,277 $ 5,628
Summary of Stock Based Compensation Expense	Total stock-based compensation expense as it related to the Company’s condensed statements of operations (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of sales $ 222 $ 176 $ 670 $ 528 Selling, general and administrative 1,863 1,337 5,387 4,238 Research and development 420 288 1,220 862 $ 2,505 $ 1,801 $ 7,277 $ 5,628
Summary of Weighted Average Assumptions Used to Estimate Options Using Black-Scholes Model	The fair value of options granted to employees and/or directors during the periods presented below were estimated as of the grant date using the Black-Scholes model assuming the following weighted average assumptions: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Expected term (years) 6.0 6.0 6.0 6.0 Expected volatility 45 % 44 % 45 % 44 % Risk-free interest rate 2.0 % 1.2 % 2.1 % 1.5 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Fair value $ 12.78 $ 6.24 $ 6.86 $ 7.90
Summary of Weighted Average Assumptions Used to Estimate ESPP Using Black-Scholes Model	The fair value of options granted under the 2014 ESPP to employees was estimated as of the grant date using the Black-Scholes model assuming the following weighted average assumptions: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Expected term (years) 1.3 1.3 1.3 1.3 Expected volatility 44 % 49 % 44 % 49 % Risk-free interest rate 1.2 % 0.6 % 1.2 % 0.6 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Fair value $ 8.08 $ 4.53 $ 8.08 $ 4.53

Net Loss per Share (Tables)

Net Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Potentially Dilutive Securities Outstanding Excluded from the Computations of Diluted Weighted Average Shares Outstanding	The following potentially dilutive securities outstanding have been excluded from the computations of weighted average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares, in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Common stock options 3,962 3,653 3,962 3,653 RSUs 278 — 278 — ESPP shares 260 274 260 274 4,500 3,927 4,500 3,927

Organization - Additional Infor

Organization - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash, cash equivalents and short-term investments	$ 102,498	$ 103,945
Accumulated deficit	$ (161,688)	$ (148,477)	[1]
[1]	Amounts have been derived from the December 31, 2016 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Composition of Certain Financ21

Composition of Certain Financial Statement Items - Accounts Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
Accounts receivable	$ 11,778	$ 14,583
Allowance for doubtful accounts	(98)	(162)
Accounts receivable, net	$ 11,680	$ 14,421	[1]
[1]	Amounts have been derived from the December 31, 2016 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Composition of Certain Financ22

Composition of Certain Financial Statement Items - Components of Inventory (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 1,043	$ 778
Work-in-process	431	247
Finished goods	7,254	4,588
Inventory	$ 8,728	$ 5,613	[1]
[1]	Amounts have been derived from the December 31, 2016 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Cash, Cash Equivalents and Sh23

Cash, Cash Equivalents and Short-term Investments - Summary of Cash, Cash Equivalents and Available-for-Sale Investments by Type of Instrument (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016		Sep. 30, 2016	Dec. 31, 2015
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	$ 102,515	$ 103,982
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains	3	9
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses	(20)	(46)
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	102,498	103,945
Cash, cash equivalents, Estimated Fair Value	18,556	9,859	[1]	$ 16,424	$ 34,809
Short-term investments, available-for-sale, Estimated Fair Value	83,942	94,086	[1]
Cash and cash equivalents and short-term investments, available-for-sale	102,498	103,945
Cash [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	8,064	5,222
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	8,064	5,222
Money Market Funds [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	10,493	4,637
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	10,493	4,637
Corporate Debt Securities [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	67,058	51,761
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains	2	3
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses	(13)	(26)
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	67,047	51,738
Commercial Paper [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	16,900	42,362
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains	1	6
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses	(7)	(20)
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	$ 16,894	$ 42,348
[1]	Amounts have been derived from the December 31, 2016 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Cash, Cash Equivalents and Sh24

Cash, Cash Equivalents and Short-term Investments - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Investments Schedule [Abstract]
Investments with a contractual maturity of greater than one year	$ 0	$ 0
Other-than-temporary impairment charges	$ 0	$ 0

Fair Value of Financial Instr25

Fair Value of Financial Instruments - Summary of Cash, Cash Equivalents and Short-Term Investments (Available-for-Sale), by Type of Instrument (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016		Sep. 30, 2016	Dec. 31, 2015
Net Investment [Line Items]
Cash and cash equivalents		$ 18,556	$ 9,859	[1]	$ 16,424	$ 34,809
Short-term investments, available-for-sale		83,942	94,086	[1]
Cash and cash equivalents and short-term investments, available-for-sale		102,498	103,945
Fair Value on Recurring Basis [Member]
Net Investment [Line Items]
Cash and cash equivalents	$ 9,859	18,556
Short-term investments, available-for-sale	94,086	83,942
Cash and cash equivalents and short-term investments, available-for-sale	$ 103,945	102,498	103,945
Fair Value on Recurring Basis [Member] | Cash [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale		8,064	5,222
Fair Value on Recurring Basis [Member] | Money Market Funds [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale		10,493	4,637
Fair Value on Recurring Basis [Member] | Corporate Debt Securities [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale		67,047	51,738
Fair Value on Recurring Basis [Member] | Commercial Paper [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale		16,894	42,348
Level 1 [Member] | Fair Value on Recurring Basis [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale		18,557	9,859
Level 1 [Member] | Fair Value on Recurring Basis [Member] | Cash [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale		8,064	5,222
Level 1 [Member] | Fair Value on Recurring Basis [Member] | Money Market Funds [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale		10,493	4,637
Level 2 [Member] | Fair Value on Recurring Basis [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale		83,941	94,086
Level 2 [Member] | Fair Value on Recurring Basis [Member] | Corporate Debt Securities [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale		67,047	51,738
Level 2 [Member] | Fair Value on Recurring Basis [Member] | Commercial Paper [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale		$ 16,894	$ 42,348
[1]	Amounts have been derived from the December 31, 2016 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Fair Value of Financial Instr26

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Transfer of assets from level 1 to level 2	$ 0	$ 0
Transfer of liabilities from level 1 to level 2	0	0
Transfer of assets from level 2 to level 1	0	0
Transfer of liabilities from level 2 to level 1	$ 0	$ 0

Stock-based Compensation Expe27

Stock-based Compensation Expense - Additional Information (Detail) - USD ($) $ in Millions	Jan. 01, 2017	Sep. 30, 2017	Sep. 30, 2016	Jul. 23, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unearned stock-based compensation		$ 19.8
Weighted average period for unearned stock-based compensation to be recognized		2 years 6 months
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate pre-tax intrinsic value of RSUs outstanding		$ 8.7
Weighted-average remaining contractual term of RSUs outstanding		2 years 2 months 12 days
Common Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate pre-tax intrinsic value of options outstanding and exercisable		$ 60.4
Aggregate pre-tax intrinsic value of options outstanding		31.3
Aggregate pre-tax intrinsic value of options exercised		$ 11.2	$ 5.1
Weighted-average remaining contractual term of options outstanding		8 years 1 month 6 days
Weighted-average remaining contractual term of options exercisable		7 years 3 months 19 days
2014 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for future issuance				496,092
Shares Issued		74,791	67,755
2014 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares outstanding		3.00%
Common stock, capital shares reserved for future issuance, increase during period	860,019
Shares reserved for issuance	7,156,121
2014 Equity Incentive Plan [Member] | RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years

Stock-based Compensation Expe28

Stock-based Compensation Expense - Summary of Stock Option Activity (Detail) - Common Stock Options [Member] shares in Thousands	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Class of Stock [Line Items]
Options outstanding, beginning of period | shares	3,585
Options granted | shares	1,210
Options exercised | shares	(638)
Options forfeited | shares	(191)
Options expired | shares	(4)
Options outstanding, end of period | shares	3,962
Options exercisable | shares	1,865
Options price, outstanding, beginning of period | $ / shares	$ 14.81
Options price, granted | $ / shares	15.20
Options price, exercised | $ / shares	7.50
Options price, forfeited | $ / shares	19.35
Option price, expired | $ / shares	2.60
Options price, outstanding, end of period | $ / shares	15.90
Options price, exercisable | $ / shares	$ 14.39

Stock-based Compensation Expe29

Stock-based Compensation Expense - Summary of Restricted Stock Units Activity (Detail) - RSUs [Member] shares in Thousands	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awarded | shares	288
Forfeited | shares	(10)
Outstanding, end of period | shares	278
Awarded | $ / shares	$ 13.74
Forfeited | $ / shares	16.65
Outstanding, end of period | $ / shares	$ 13.64

Stock-based Compensation Expe30

Stock-based Compensation Expense - Summary of Stock-based Compensation Expense by Award Type (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2,505	$ 1,801	$ 7,277	$ 5,628
Stock Options (Including ESPP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	2,157	$ 1,801	6,395	$ 5,628
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 348		$ 882

Stock-based Compensation Expe31

Stock-based Compensation Expense - Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2,505	$ 1,801	$ 7,277	$ 5,628
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	222	176	670	528
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,863	1,337	5,387	4,238
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 420	$ 288	$ 1,220	$ 862

Stock-based Compensation Expe32

Stock-based Compensation Expense - Summary of Weighted Average Assumptions Used to Estimate Options Using Black-Scholes Model (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
2014 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	1 year 3 months 19 days	1 year 3 months 19 days	1 year 3 months 19 days	1 year 3 months 19 days
Expected volatility	44.00%	49.00%	44.00%	49.00%
Risk-free interest rate	1.20%	0.60%	1.20%	0.60%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Fair value	$ 8.08	$ 4.53	$ 8.08	$ 4.53
2014 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	6 years	6 years	6 years	6 years
Expected volatility	45.00%	44.00%	45.00%	44.00%
Risk-free interest rate	2.00%	1.20%	2.10%	1.50%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Fair value	$ 12.78	$ 6.24	$ 6.86	$ 7.90

Net Loss per Share - Schedule o

Net Loss per Share - Schedule of Potentially Dilutive Securities Outstanding Excluded from the Computations of Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted weighted average shares outstanding	4,500	3,927	4,500	3,927
Common Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted weighted average shares outstanding	3,962	3,653	3,962	3,653
RSUs [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted weighted average shares outstanding	278		278
2014 Employee Stock Purchase Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted weighted average shares outstanding	260	274	260	274