Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 | |
Document Document And Entity Information [Abstract] | |||
Entity Registrant Name | REALPAGE INC | ||
Entity Central Index Key | 1286225 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RP | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 78,924,389 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $1,184,042,012 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $26,936 | $34,502 |
Restricted cash | 85,543 | 71,941 |
Accounts receivable, less allowance for doubtful accounts of $2,363 and $914 at December 31, 2014 and 2013, respectively | 64,845 | 66,635 |
Deferred tax asset, net | 10,996 | 3,284 |
Other current assets | 9,495 | 7,453 |
Total current assets | 197,815 | 183,815 |
Property, equipment and software, net | 72,616 | 54,775 |
Goodwill | 193,378 | 152,422 |
Identified intangible assets, net | 100,085 | 108,815 |
Deferred tax asset, net | 2,537 | 0 |
Other assets | 5,059 | 3,386 |
Total assets | 571,490 | 503,213 |
Current liabilities: | ||
Accounts payable | 14,830 | 11,978 |
Accrued expenses and other current liabilities | 22,905 | 23,122 |
Current portion of deferred revenue | 73,485 | 66,085 |
Customer deposits held in restricted accounts | 85,489 | 71,910 |
Total current liabilities | 196,709 | 173,095 |
Deferred revenue | 6,903 | 5,671 |
Deferred tax liability, net | 5,196 | 1,379 |
Revolving credit facility | 20,000 | 0 |
Other long-term liabilities | 13,902 | 8,564 |
Total liabilities | 242,710 | 188,709 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value: 10,000,000 shares authorized and zero shares issued and outstanding at December 31, 2014 and 2013, respectively | 0 | 0 |
Common stock, $0.001 par value: 125,000,000 shares authorized, 83,211,650 and 80,511,791 shares issued and 79,037,351 and 78,433,626 shares outstanding at December 31, 2014 and 2013, respectively | 83 | 81 |
Additional paid-in capital | 437,664 | 390,854 |
Treasury stock, at cost: 4,174,299 and 2,078,165 shares at December 31, 2014 and 2013, respectively | -33,398 | -11,183 |
Accumulated deficit | -75,360 | -65,086 |
Accumulated other comprehensive loss | -209 | -162 |
Total stockholders’ equity | 328,780 | 314,504 |
Total liabilities and stockholders’ equity | $571,490 | $503,213 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $2,363 | $914 |
Preferred stock, par value | $0.00 | $0.00 |
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 | $0.00 | $0.00 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 83,211,650 | 80,511,791 |
Common stock, shares outstanding | 79,037,351 | 78,433,626 |
Treasury stock, shares | 4,174,299 | 2,078,165 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||
On demand | $390,622 | $362,312 | $306,400 |
On premise | 3,094 | 3,691 | 5,216 |
Professional and other | 10,835 | 11,019 | 10,556 |
Total revenue | 404,551 | 377,022 | 322,172 |
Cost of revenue | 174,871 | 148,321 | 128,562 |
Gross profit | 229,680 | 228,701 | 193,610 |
Operating expense: | |||
Product development | 64,418 | 50,638 | 48,177 |
Sales and marketing | 111,563 | 95,894 | 76,992 |
General and administrative | 69,202 | 60,610 | 56,993 |
Total operating expense | 245,183 | 207,142 | 182,162 |
Operating (loss) income | -15,503 | 21,559 | 11,448 |
Interest expense and other, net | -1,104 | -1,077 | -2,046 |
(Loss) income before income taxes | -16,607 | 20,482 | 9,402 |
Income tax (benefit) expense | -6,333 | -210 | 4,219 |
Net (loss) income | ($10,274) | $20,692 | $5,183 |
Net (loss) income per share attributable to common stockholders | |||
Basic (in dollars per share) | ($0.13) | $0.28 | $0.07 |
Diluted (in dollars per share) | ($0.13) | $0.27 | $0.07 |
Weighted average shares used in computing net (loss) income per share attributable to common stockholders | |||
Basic (in shares) | 76,991 | 74,962 | 71,838 |
Diluted (in shares) | 76,991 | 76,187 | 74,002 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive (Loss) Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | ($10,274) | $20,692 | $5,183 |
Other comprehensive loss – foreign currency translation adjustment | -47 | -54 | -51 |
Comprehensive (loss) income | ($10,321) | $20,638 | $5,132 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Treasury Stock |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2011 | $222,881 | $73 | $316,964 | ($57) | ($90,961) | ($3,138) |
Beginning Balance (in shares) at Dec. 31, 2011 | -73,116,000 | -414,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 2,389,704 | 2,389,000 | ||||
Exercise of stock options | 12,065 | 4 | 12,061 | |||
Issuance of restricted stock (in shares) | -1,508,000 | -772,000 | ||||
Issuance of restricted stock | -3,185 | -3,185 | ||||
Stock-based compensation | 18,178 | 18,178 | ||||
Foreign currency translation | -51 | -51 | ||||
Net (income) loss | 5,183 | 5,183 | ||||
Ending Balance at Dec. 31, 2012 | 255,071 | 77 | 347,203 | -108 | -85,778 | -6,323 |
Ending Balance (in shares) at Dec. 31, 2012 | -77,013,000 | -1,186,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 1,556,865 | 1,557,000 | ||||
Exercise of stock options | 10,604 | 10,604 | ||||
Issuance of restricted stock (in shares) | -1,847,000 | -892,000 | ||||
Issuance of restricted stock | -4,856 | 4 | -4,860 | |||
Issuance of common stock (in shares) | 95,000 | |||||
Issuance of common stock | 3,350 | 3,350 | ||||
Stock-based compensation | 29,697 | 29,697 | ||||
Foreign currency translation | -54 | -54 | ||||
Net (income) loss | 20,692 | 20,692 | ||||
Ending Balance at Dec. 31, 2013 | 314,504 | 81 | 390,854 | -162 | -65,086 | -11,183 |
Ending Balance (in shares) at Dec. 31, 2013 | -80,512,000 | -2,078,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 907,765 | 908,000 | ||||
Exercise of stock options | 9,912 | 9,912 | ||||
Issuance of restricted stock (in shares) | -1,758,000 | -1,130,000 | ||||
Issuance of restricted stock | -6,692 | 2 | -6,694 | |||
Treasury stock purchased, at cost (in shares) | -966,595 | -966,000 | ||||
Treasury stock purchased, at cost | -15,521 | -15,521 | ||||
Issuance of common stock (in shares) | 34,000 | |||||
Issuance of common stock | 0 | |||||
Stock-based compensation | 37,050 | 37,050 | ||||
Excess tax benefit from stock options | 2,248 | 2,248 | ||||
Acquisition-related contingent consideration | -2,400 | -2,400 | ||||
Foreign currency translation | -47 | -47 | ||||
Net (income) loss | -10,274 | -10,274 | ||||
Ending Balance at Dec. 31, 2014 | $328,780 | $83 | $437,664 | ($209) | ($75,360) | ($33,398) |
Ending Balance (in shares) at Dec. 31, 2014 | -83,212,000 | -4,174,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net (loss) income | ($10,274) | $20,692 | $5,183 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 41,306 | 31,745 | 32,469 |
Deferred tax (benefit) expense | -7,891 | -2,503 | 2,624 |
Stock-based compensation | 37,050 | 29,697 | 18,178 |
Excess tax benefit from stock options | 2,248 | 0 | 0 |
Loss on disposal and impairment of assets | 386 | 314 | 568 |
Acquisition-related contingent consideration | 173 | 1,284 | -722 |
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations: | |||
Accounts receivable | 1,929 | -13,669 | -7,681 |
Customer deposits | -23 | 0 | 50 |
Other current assets | -2,340 | -341 | 3,775 |
Other assets | -592 | -330 | -359 |
Accounts payable | 1,821 | 1,765 | -2,763 |
Accrued compensation, taxes and benefits | 1,964 | -1,259 | 2,505 |
Deferred revenue | 8,443 | 969 | 3,977 |
Other current and long-term liabilities | 268 | 845 | 608 |
Net cash provided by operating activities | 69,972 | 69,209 | 58,412 |
Cash flows from investing activities: | |||
Purchases of property, equipment and software | -37,062 | -32,952 | -18,774 |
Acquisition of businesses, net of cash acquired | -41,947 | -28,229 | -10,627 |
Intangible asset additions | -260 | -927 | -3,375 |
Net cash used in investing activities | -79,269 | -62,108 | -32,776 |
Cash flows from financing activities: | |||
Proceeds from revolving credit facility | 68,572 | 0 | 0 |
Payments on revolving credit facility | -48,572 | -10,000 | -40,312 |
Deferred financing costs | -1,188 | 0 | 0 |
Payments on capital lease obligations | -562 | -548 | -65 |
Payments of deferred acquisition-related consideration | -6,419 | -1,549 | -11,557 |
Issuance of common stock | 9,914 | 10,608 | 12,065 |
Excess tax benefit from stock options | 2,248 | 0 | 0 |
Purchase of treasury stock | -22,215 | -4,860 | -3,185 |
Net cash provided by (used in) financing activities | 1,778 | -6,349 | -43,054 |
Net (decrease) increase in cash and cash equivalents | -7,519 | 752 | -17,418 |
Effect of exchange rate on cash | -47 | -54 | -51 |
Cash and cash equivalents: | |||
Beginning of period | 34,502 | 33,804 | 51,273 |
End of period | 26,936 | 34,502 | 33,804 |
Supplemental cash flow information: | |||
Cash paid for interest | 814 | 974 | 1,584 |
Cash paid for income taxes, net of refunds | 512 | 525 | 510 |
Non-cash investing activities: | |||
Accrued fixed assets | 607 | 779 | 272 |
Non-cash financing activities: | |||
Fixed assets acquired under capital lease | $0 | $1,976 | $0 |
The_Company
The Company | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company |
RealPage, Inc., a Delaware corporation, and its subsidiaries, (the “Company” or “we” or “us”) is a provider of property management solutions that enable owners and managers of single family and a wide variety of multifamily rental property types to manage their marketing, pricing, screening, leasing, accounting, purchasing and other property operations. Our on demand software solutions are delivered through an integrated software platform that provides a single point of access and a shared repository of prospect, renter and property data. By integrating and streamlining a wide range of complex processes and interactions among the rental housing ecosystem of owners, managers, prospects, renters and service providers, our platform optimizes the property management process and improves the experience for all of these constituents. Our solutions enable property owners and managers to optimize revenues and reduce operating costs through higher occupancy, improved pricing methodologies, new sources of revenue from ancillary services, improved collections and more integrated and centralized processes. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | ||||||||
Basis of Presentation | |||||||||
The accompanying consolidated balance sheets as of December 31, 2014 and 2013 and the accompanying consolidated statements of operations, comprehensive (loss) income and cash flows for each of the three years ended December 31, 2014, 2013, and 2012 represent our financial position, results of operations and cash flows as of and for the periods then ended. The consolidated financial statements include the accounts of RealPage, Inc. and our wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
Segment and Geographic Information | |||||||||
Our chief operating decision maker is our Chief Executive Officer, who reviews financial information presented on a company-wide basis. As a result, we determined that the Company has a single reporting segment and operating unit structure. | |||||||||
Principally, all of our revenue for the years ended December 31, 2014, 2013, and 2012 was earned in the United States. | |||||||||
Net long-lived assets held were $66.5 million and $51.5 million in the United States, and $6.1 million and $3.3 million in our international subsidiaries at December 31, 2014 and 2013, respectively. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires our management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include the allowance for doubtful accounts; the useful lives of intangible assets and the recoverability or impairment of tangible and intangible asset values; fair value measurements; purchase accounting allocations and contingent consideration; revenue and deferred revenue and related reserves; stock-based compensation and our effective income tax rate and the recoverability of deferred tax assets, which are based upon our expectations of future taxable income and allowable deductions. Actual results could differ from these estimates. | |||||||||
In the second quarter of 2013, we revised our estimated useful lives of our data processing equipment and internally developed software to more accurately reflect our use of these assets. The result of the change for the year ended December 31, 2013 was a $3.5 million increase in operating income, a $1.9 million increase in net income and an increase in basic and diluted earnings per share of $0.03. During the third quarter of 2013, we revised the length of our expected customer benefit of our license fees billed at the initial order date. The result of the change for the year ended December 31, 2013 was a $2.8 million increase in operating income, a $1.5 million increase in net income and an increase in basic and diluted earnings per share of $0.02. | |||||||||
Cash Equivalents | |||||||||
We consider all highly liquid investments with a maturity date, when purchased, of three months or less to be cash equivalents. | |||||||||
Concentrations of Credit Risk | |||||||||
Our cash accounts are maintained at various financial institutions and may, from time to time, exceed federally insured limits. The Company has not experienced any losses in such accounts. | |||||||||
Concentrations of credit risk with respect to accounts receivable result from substantially all of our customers being in the multifamily rental housing market. Our customers, however, are dispersed across different geographic areas. We do not require collateral from customers. We maintain an allowance for losses based upon the expected collectability of accounts receivable. Accounts receivable are written off upon determination of non-collectability following established Company policies based on the aging from the accounts receivable invoice date. | |||||||||
No single customer accounted for 10% or more of our revenue or accounts receivable for the years ended December 31, 2014, 2013 or 2012. Revenues for our largest customer were 4.9%, 3.4% and 2.2% of total revenues for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
Fair Value of Financial Instruments | |||||||||
Financial assets and liabilities with carrying amounts approximating fair value include cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses and other current liabilities. The carrying amount of these financial assets and liabilities approximates fair value because of their short maturities. The carrying amount of our other long-term liabilities approximates their fair value. | |||||||||
Fair Value Measurements | |||||||||
We measure certain financial assets and liabilities at fair value pursuant to a fair value hierarchy based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. See additional discussion of our fair value measurements at Footnote 14. | |||||||||
Accounts Receivable | |||||||||
For several of our solutions, we invoice customers prior to the period in which service is provided. Accounts receivable represent trade receivables from customers when we have invoiced for software solutions and/or services and we have not yet received payment. We present accounts receivable net of an allowance for doubtful accounts. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments, or the customer canceling prior to the service being rendered. As a result, a portion of our allowance is for services not yet rendered and, therefore, is classified as an offset to deferred revenue, which does not have an effect on the statement of operations. In evaluating the sufficiency of the allowance for doubtful accounts we consider the current financial condition of the customer, the specific details of the customer account, the age of the outstanding balance, the current economic environment and historical credit trends. Any change in the assumptions used in analyzing a specific account receivable might result in an additional allowance for doubtful accounts being recognized in the period in which the change occurs. For certain transactions, we have met the requirements to recognize income in advance of physically invoicing the customer. In these instances, we record unbilled receivables for the amount that will be due from the customer upon invoicing. Receivable balances are charged off when all collection efforts have failed and management determines the balance is uncollectable. In the case of balances relating to services not yet rendered, the balance is charged off when the customer cancels the service or when we determine that the invoiced service will no longer be provided, whichever occurs first. During the years ended December 31, 2014, 2013 and 2012, we incurred bad debt expense of $1.5 million, $2.1 million and $0.8 million, respectively. | |||||||||
Property, Equipment and Software | |||||||||
Property, equipment and software are recorded at cost less accumulated depreciation and amortization, which are computed using the straight-line method over the following estimated useful lives: | |||||||||
Leasehold improvements | 1-10 years | ||||||||
Data processing and communications equipment | 1-10 years | ||||||||
Furniture, fixtures and other equipment | 1- 5 years | ||||||||
Software | 1- 5 years | ||||||||
Software includes purchased software and internally developed software. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful lives of the assets. Gains and losses from asset disposals are classified as general and administrative expenses in our statement of operations. | |||||||||
Business Combinations | |||||||||
When we acquire businesses, we allocate the total consideration paid to the fair value of the tangible assets, liabilities and identifiable intangible assets acquired. Any residual purchase consideration is recorded as goodwill. The allocation of the purchase price requires our management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, in particular with respect to identified intangible assets. These estimates are based on the application of valuation models using historical experience and information obtained from the management of the acquired companies. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. In addition, unanticipated events and circumstances may occur which may affect the accuracy or validity of these estimates. We include the fair value of contingent consideration to be paid within the total consideration allocated to the fair value of the assets acquired and liabilities assumed. This requires us to make estimates regarding the fair value of the amounts to be paid. Additionally, we, at times, provide for the payment of additional cash consideration to the extent certain targets are achieved in the future. The fair value of this contingent consideration is based on significant estimates and is initially recorded as purchase price. To the extent the fair value changes prior to distribution, these changes are reflected in the Consolidated Statement of Operations. We expense acquisition-related costs as incurred rather than including as a component of purchase price. | |||||||||
Impairment of Long-Lived Assets | |||||||||
We perform an impairment review of long-lived assets held and used whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors we consider important that could trigger an impairment review include, but are not limited to, significant under-performance relative to projected future operating results, significant changes in the manner of our use of the acquired assets or our overall business and/or product strategies. When we determine that the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more of these indicators, we determine the recoverability by comparing the carrying amount of the asset or asset group to net future undiscounted cash flows that the asset or assets are expected to generate. We would then recognize an impairment charge equal to the amount by which the carrying amount exceeds the fair market value of the asset or assets. | |||||||||
Goodwill and Other Intangible Assets with Indefinite Lives | |||||||||
We test goodwill and other intangible assets with indefinite lives for impairment separately on an annual basis in the fourth quarter of each year. Additionally, we will test goodwill and other intangible assets with indefinite lives in the interim if events and circumstances indicate that goodwill and other intangible assets with indefinite lives may be impaired. The events and circumstances that we consider include, but are not limited to, significant under-performance relative to projected future operating results and significant changes in our overall business and/or product strategies. | |||||||||
If an event or circumstance occurs that would cause us to revise our estimates and assumptions used in analyzing the value of our goodwill and other intangible assets with indefinite lives, the revision could result in a non-cash impairment charge that could have a material impact on our financial results. We evaluate impairment of goodwill by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the two-step goodwill impairment test. The first step involves a comparison of the fair value of a reporting unit with its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, the second step involves a comparison of the implied fair value and carrying amount of the goodwill of that reporting unit to determine the impairment charge, if any. | |||||||||
We quantitatively evaluate other intangible assets with indefinite lives by estimating the fair value of those assets based on estimated future earnings derived from the assets using the income approach model. For those intangible assets with indefinite lives that have been determined to be inseparable due to their interchangeable use, we have grouped these assets into single units of accounting for purposes of testing for impairment. If the carrying amount of the other intangible assets with indefinite lives exceeds the fair value, we would recognize an impairment loss equal to the excess of carrying value over fair value. | |||||||||
There was no impairment of goodwill indicated in 2014, 2013 or 2012. During 2014, we recognized an impairment of the MyNewPlace trade name in the amount of $0.3 million. Other than this trade name, no impairment of other intangible assets was indicated in 2014. No impairment of other intangible assets was indicated in 2013 or 2012. | |||||||||
Intangible Assets | |||||||||
Intangible assets consist of acquired developed product technologies, acquired customer relationships, vendor relationships and trade names. We record intangible assets at fair value and amortize those with finite lives over the shorter of the contractual life or the estimated useful life. We estimate the useful lives of acquired developed product technologies and customer relationships based on factors that include the planned use of each developed product technology and the expected pattern of future cash flows to be derived from each developed product technology and existing customer relationships. Estimated useful lives for finite-lived intangible assets consist of the following: | |||||||||
Developed technologies | 3 years | ||||||||
Customer relationships | 1-10 years | ||||||||
Vendor relationships | 7 years | ||||||||
We include amortization of acquired developed product technologies in cost of revenue, amortization of acquired customer relationships in sales and marketing expenses and amortization of vendor relationships and non-competition agreements in general and administrative expenses in our consolidated statements of operations. | |||||||||
Income Taxes | |||||||||
Income taxes are provided based on the liability method, which results in income tax assets and liabilities arising from temporary differences. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. The liability method requires the effect of tax rate changes on current and accumulated deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized. | |||||||||
We may recognize a tax benefit from uncertain tax positions only if it is at least more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the taxing authorities. There were no identified tax benefits that were considered uncertain positions at December 31, 2014 and 2013. | |||||||||
We establish valuation allowances when necessary to reduce deferred tax assets to the amounts expected to be realized. We evaluate the need for, and the adequacy of, valuation allowances based on the expected realization of our deferred tax assets. The factors used to assess the likelihood of realization include historical earnings, our latest forecast of taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. | |||||||||
Revenue Recognition | |||||||||
We derive our revenue from three primary sources: our on demand software solutions, our on premise software solutions and professional and other services. We commence revenue recognition when all of the following conditions are met: | |||||||||
• | there is persuasive evidence of an arrangement; | ||||||||
• | the solution and/or service has been provided to the customer; | ||||||||
• | the collection of the fees is probable; and | ||||||||
• | the amount of fees to be paid by the customer is fixed or determinable. | ||||||||
If the fees are not fixed or determinable, we recognize revenues when these criteria are met, which could be as payments become due from customers, or when amounts owed are collected. Accordingly, this may materially affect the timing of our revenue recognition and results of operations. | |||||||||
For multi-element arrangements that include multiple software solutions and/or services, we allocate arrangement consideration to all deliverables that have stand-alone value based on their relative selling prices. In such circumstances, we utilize the following hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: | |||||||||
• | Vendor specific objective evidence ("VSOE"), if available. The price at which we sell the element in a separate stand-alone transaction; | ||||||||
• | Third-party evidence of selling price ("TPE"), if VSOE of selling price is not available. Evidence from us or other companies of the value of a largely interchangeable element in a transaction; and | ||||||||
• | Estimated selling price ("ESP"), if neither VSOE nor TPE of selling price is available. Our best estimate of the stand-alone selling price of an element in a transaction. | ||||||||
Our process for determining ESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. Key factors primarily considered in developing ESP include prices charged by us for similar offerings when sold separately, pricing policies and approvals from standard pricing and other business objectives. | |||||||||
From time to time, we sell on demand software solutions with professional services. In such cases, as each element has stand-alone value, we allocate arrangement consideration based on our ESP of the on demand software solution and VSOE of the selling price of the professional services. | |||||||||
Taxes collected from customers and remitted to governmental authorities are presented on a net basis. | |||||||||
On Demand Revenue | |||||||||
Our on demand revenue consists of license and subscription fees, transaction fees related to certain of our software-enabled value-added services and commissions derived from us selling certain risk mitigation services. | |||||||||
License and subscription fees are comprised of a charge billed at the initial order date and monthly or annual subscription fees for accessing our on demand software solutions. The license fee billed at the initial order date is recognized as revenue on a straight-line basis over the longer of the contractual term or the period in which the customer is expected to benefit, which we consider to be three years. Recognition starts once the product has been activated. Revenue from monthly and annual subscription fees is recognized on a straight-line basis over the access period. | |||||||||
We recognize revenue from transaction fees derived from certain of our software-enabled value-added services as the related services are performed. | |||||||||
As part of our risk mitigation services to the rental housing industry, we act as an insurance agent and derive commission revenue from the sale of insurance products to individuals. The commissions are based upon a percentage of the premium that the insurance company charges to the policyholder and are subject to forfeiture in instances where a policyholder cancels prior to the end of the policy. If the policy is cancelled, our commissions are forfeited as a percent of the unearned premium. As a result, we recognize the commissions related to these services ratably over the policy term as the associated premiums are earned. Our contract with our underwriting partner provides for contingent commissions to be paid to us in accordance with the agreement. This agreement provides for a calculation that considers, on the policies sold by us, earned premiums less i) earned agent commissions; ii) a percent of premium retained by our underwriting partner; iii) incurred losses and iv) profit retained by our underwriting partner during the time period. Our estimate of contingent commission revenue considers historical loss experience on the policies sold by us. | |||||||||
On Premise Revenue | |||||||||
Revenue from our on premise software solutions is comprised of an annual term license, which includes maintenance and support. Customers can renew their annual term license for additional one-year terms at renewal price levels. We recognize the annual term license on a straight-line basis over the contract term. | |||||||||
In addition, we have arrangements that include perpetual licenses with maintenance and other services to be provided over a fixed term. We allocate and defer revenue equivalent to the VSOE of fair value for the undelivered elements and recognize the difference between the total arrangement fee and the amount deferred for the undelivered elements as revenue. We have determined that we do not have VSOE of fair value for our customer support and professional services in these specific arrangements. As a result, the elements within our multiple-element sales agreements do not qualify for treatment as separate units of accounting. Accordingly, we account for fees received under multiple-element arrangements with customer support or other professional services as a single unit of accounting and recognize the entire arrangement ratably over the longer of the customer support period or the period during which professional services are rendered. | |||||||||
Professional and Other Revenue | |||||||||
Professional and other revenue is recognized as the services are rendered for time and material contracts. Training revenues are recognized after the services are performed. | |||||||||
Deferred Revenue | |||||||||
Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from our subscription service described above and is recognized as the revenue recognition criteria are met. For several of our solutions, we invoice our customers in annual, monthly or quarterly installments in advance of the commencement of the service period. Accordingly, the deferred revenue balance does not represent the total contract value of annual subscription agreements. | |||||||||
Cost of Revenue | |||||||||
Cost of revenue consists primarily of salaries and related personnel expenses of our operations and support personnel, including training and implementation services, expenses related to the operation of our data center, fees paid to third-party providers, allocations of facilities overhead costs and depreciation, amortization of acquired technologies and amortization of capitalized software. | |||||||||
Customer Acquisition Costs | |||||||||
The costs of obtaining new customers are expensed as incurred. | |||||||||
Stock-Based Compensation | |||||||||
We record stock-based compensation expense for options granted to employees based on the estimated fair value for the awards. We estimate the fair value of time-based vesting awards using the Black-Scholes option pricing model on the date of grant and the associated expense is recognized over the requisite service period, which is generally the vesting period, on a straight-line basis. | |||||||||
The fair value of market-based vesting awards is estimated using a discrete model based on multiple stock price-paths developed through the use of Monte Carlo simulation. Expense associated with market-based awards is recognized over the requisite service period on a straight-line basis. We estimate the requisite service period based on the median of the distribution of share price-paths on which the market condition is satisfied. | |||||||||
At each stock option grant date, we utilize peer group data to calculate our expected volatility. Expected volatility is based on historical volatility rates of publicly traded peers combined with our historical volatility rates. Expected life is computed using the mid-point between the vesting period and contractual life of the options granted. The risk-free rate is based on the treasury yield rate with a maturity corresponding to the expected option life assumed at the grant date. Forfeiture rates are estimated using historical and expected future trends. | |||||||||
Changes to the assumptions underlying the above models may have a significant impact on the underlying value of the stock options, which could have a material impact on our consolidated financial statements. | |||||||||
We have granted stock options at exercise prices believed to be equal to the fair market value of our common stock, as of the grant date. The fair value of our time-based restricted stock awards is based on the closing price on the date of grant. | |||||||||
Capitalized Product Development Costs | |||||||||
We capitalize specific product development costs, including costs to develop software products or the software components of our solutions to be marketed to external users, as well as software programs to be used solely to meet our internal needs. The costs incurred in the preliminary stages of development related to research, project planning, training, maintenance and general and administrative activities, and overhead costs are expensed as incurred. The costs of relatively minor upgrades and enhancements to the software are also expensed as incurred. Once an application has reached the development stage, internal and external costs incurred in the performance of application development stage activities, including costs of materials, services and payroll and payroll-related costs for employees, are capitalized, if direct and incremental, until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. We also capitalize costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized costs are recorded as part of property and equipment. Internal use software is amortized on a straight-line basis over its estimated useful life, generally three to five years. Our management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were no impairments to internal use software during the years ended December 31, 2014, 2013 or 2012. | |||||||||
Advertising Expenses | |||||||||
Advertising costs are expensed as incurred and totaled $15.1 million, $11.4 million and $10.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
Accrued Expenses and Other Current Liabilities | |||||||||
Accrued expenses and other current liabilities consisted of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Accrued compensation, payroll taxes and benefits | $ | 10,317 | $ | 8,145 | |||||
Current portion of liabilities related to acquisitions | 3,905 | 4,216 | |||||||
Other current liabilities | 8,683 | 10,761 | |||||||
Total accrued expenses and other current liabilities | $ | 22,905 | $ | 23,122 | |||||
Recently Issued Accounting Standards | |||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers. This new standard will replace all current GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for us beginning January 1, 2017 and at that time, can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||
Acquisitions | Acquisitions | ||||||||||||||||||||
2014 Acquisitions | |||||||||||||||||||||
In January 2014, we acquired certain assets from Bookt LLC, including the InstaManager product (“InstaManager”). InstaManager is a software-as-a-service vacation rental booking engine used by professional managers of vacation rental properties. InstaManager offers marketing websites, online pricing and availability, online booking, automated reservations, payment processing and insurance sales. The acquisition of InstaManager expanded our product offerings to include property management software for the vacation rental market. We acquired InstaManager for a purchase price of $9.2 million, consisting of a cash payment of $6.0 million at closing, a deferred cash payment of up to $1.0 million payable over two years after the acquisition date, and additional cash payments totaling up to $7.0 million contingent upon meeting certain revenue targets for the years ended March 31, 2015 and March 31, 2016. The initial fair value of the deferred and contingent cash payments was $0.8 million and $2.4 million, respectively. The fair value of the deferred cash payments was estimated based on the present value, as of the date of acquisition, of anticipated future payments. The fair value of the contingent cash payments was based on management’s estimate of the fair value of the cash payment using a probability weighted discount model on the achievement of certain revenue targets and is evaluated quarterly. This acquisition was financed from cash flows provided by operations. Acquired intangibles were recorded at their estimated fair value based on assumptions made by us. The acquired developed product technologies have a useful life of three years amortized on a straight-line basis. The trade name acquired has an indefinite useful life as we do not plan to cease using the trade name in the marketplace. Direct acquisition costs were less than $0.1 million and expensed as incurred. We included the results of operations of this acquisition in our consolidated financial statements from the effective date of the acquisition. Goodwill and identified intangibles associated with this acquisition are deductible for tax purposes. Goodwill arising from the acquisition consists largely of the economies of scale expected from integrating InstaManager into our existing operating structure. The aggregate fair value of the contingent cash payments was $2.3 million at December 31, 2014. During the year ended December 31, 2014 we recognized a net gain of less than $0.1 million due to the changes in the estimated fair value of the contingent cash payments. | |||||||||||||||||||||
In March 2014, we acquired certain assets from Virtual Maintenance Manager LLC, including the Virtual Maintenance Manager product (“VMM”). VMM is a software-as-a-service application that facilitates the management of the end-to-end maintenance life cycle for single family and multifamily rental properties and provides property managers visibility into their maintenance costs, manages resources and provides business control for property managers. We integrated VMM into our existing Propertyware products. We acquired the VMM assets for a purchase price of $1.2 million, consisting of a cash payment of $1.0 million at closing, a deferred cash payment of up to $0.2 million payable over two years after the acquisition date, and additional cash payments of up to $2.0 million if certain revenue targets are met for the twelve months ended June 30, 2015 and June 30, 2016. The initial fair value of the deferred and contingent cash payments was $0.2 million and less than $0.1 million, respectively. The fair value of the deferred cash payments was estimated based on the present value, as of the date of acquisition, of anticipated future payments. The fair value of the contingent cash payments was based on management’s estimate of the fair value of the cash payments using a probability weighted discount model on the achievement of certain revenue targets and will be evaluated quarterly. This acquisition was financed from cash flows provided by operations. Acquired intangibles were recorded at their estimated fair value based on assumptions made by us. The acquired developed product technologies have a useful life of three years to be amortized on a straight-line basis. Acquired customer relationships have a useful life of five years which will be amortized proportionately to the expected discounted cash flows derived from the asset. Direct acquisition costs were less than $0.1 million and expensed as incurred. We included the results of operations of this acquisition in our consolidated financial statements from the effective date of the acquisition. Goodwill and identified intangibles associated with this acquisition are deductible for tax purposes. Goodwill arising from the acquisition consists largely of the economies of scale expected from integrating VMM into our existing operating structure and from anticipated synergies with our existing products. The aggregate fair value of the contingent cash payments was less than $0.1 million at December 31, 2014. During the year ended December 31, 2014 we recognized a gain of less than $0.1 million due to the changes in the estimated fair value of the contingent cash payments. | |||||||||||||||||||||
In May 2014, we acquired certain assets from Notivus Multi-Family LLC ("Notivus"). Notivus is a software-as-a-service application that provides an outsourced vendor credentialing solution to assist multifamily owners and managers in the credentialing and ongoing monitoring of its current and prospective vendors, suppliers and independent contractors. We are integrating Notivus into our existing Compliance Depot products. We acquired the Notivus assets for a purchase price of $4.4 million, consisting of a cash payment of $3.6 million at closing and a deferred cash payment of up to $0.8 million payable over two years after the acquisition date. The initial fair value of the deferred cash payment was approximately $0.8 million. The fair value of the deferred cash payments was estimated based on the present value, as of the date of acquisition, of anticipated future payments. This acquisition was financed from cash flows provided by operations. Acquired intangibles were recorded at their estimated fair value based on assumptions made by us. The acquired developed product technologies have a useful life of three years to be amortized on a straight-line basis. Direct acquisition costs were less than $0.1 million and expensed as incurred. We included the results of operations of this acquisition in our consolidated financial statements from the effective date of the acquisition. Goodwill and identified intangibles associated with this acquisition are deductible for tax purposes. Goodwill arising from the acquisition consists largely of the economies of scale expected from integrating Notivus into our existing operating structure and from anticipated synergies with our existing products. | |||||||||||||||||||||
In June 2014, we acquired all of the issued and outstanding stock of Kigo, Inc. ("Kigo"). Kigo is a software-as-a-service vacation rental booking system based in the United States with operations in Spain. Kigo offers services for vacation rental property management that include vacation rental calendars, scheduling, reservations, accounting, channel management, website design, payment processing and other tasks to aid the management of leads, revenue, resources and lodging calendars. We plan to integrate Kigo with our existing vacation rental products. We acquired Kigo for a purchase price of $36.2 million, consisting of a cash payment of $30.7 million and a deferred cash payment of up to $5.5 million, to be payable over two and a half years after the acquisition date. This acquisition was financed from our revolving line of credit and cash flows provided by operations. Direct acquisition costs were $0.5 million and expensed as incurred. The acquired developed product technologies have a useful life of three years to be amortized on a straight-line basis. Acquired customer relationships have a useful life of ten years, which will be amortized proportionately to the expected discounted cash flows derived from the asset. The trade name acquired has an indefinite useful life as we do not plan to cease using the trade name in the marketplace. Goodwill and identified intangibles associated with this acquisition are not deductible for tax purposes. Goodwill arising from the acquisition consists largely of the economies of scale expected from integrating Kigo into our existing operating structure and from anticipated synergies with our existing products. We included the results of operations of this acquisition in our consolidated financial statements from the effective date of this acquisition. | |||||||||||||||||||||
We preliminarily allocated the purchase price for InstaManager, VMM, Notivus and Kigo as follows: | |||||||||||||||||||||
InstaManager | VMM | Notivus | Kigo | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Intangible assets: | |||||||||||||||||||||
Developed product technologies | $ | 4,490 | $ | 671 | $ | 1,840 | $ | 2,570 | |||||||||||||
Customer relationships | — | 200 | — | 1,120 | |||||||||||||||||
Trade names | 527 | — | — | 602 | |||||||||||||||||
Goodwill | 4,135 | 358 | 2,852 | 32,996 | |||||||||||||||||
Deferred revenue | (33 | ) | — | (156 | ) | — | |||||||||||||||
Net deferred taxes | — | — | — | (495 | ) | ||||||||||||||||
Net other assets (liabilities) | 55 | — | (141 | ) | (547 | ) | |||||||||||||||
Total purchase price | $ | 9,174 | $ | 1,229 | $ | 4,395 | $ | 36,246 | |||||||||||||
2013 Acquisitions | |||||||||||||||||||||
In February 2013, we acquired certain assets of Seniors for Living, Inc. (“SFL”). SFL is a leading performance-based marketing company that provides senior housing communities and home care companies with industry-leading referral and marketing services to help them achieve their occupancy goals. We have integrated SFL with our existing senior living software solutions. We acquired SFL for a purchase price of $2.7 million, which consisted of a cash payment of $2.3 million and additional cash payments of $0.2 million each due 6 months and 12 months after the acquisition date. These cash payments were paid in October 2013 and August 2014. This acquisition was financed from cash flows provided by operations. Acquired intangibles were recorded at fair value based on assumptions made by us. The acquired developed product technologies have a useful life of three years and are amortized on a straight-line basis. Acquired customer relationships have a useful life of five years and are amortized proportionately to the expected discounted cash flows derived from the asset. Direct acquisition costs were less than $0.1 million and expensed as incurred. We included the results of operations of this acquisition in our consolidated financial statements from the effective date of the acquisition. Goodwill and identified intangibles associated with this acquisition are deductible for tax purposes. Goodwill arising from the acquisition consists largely of the economies of scale expected from integrating SFL into our existing operating structure and from anticipated synergies with our existing products. | |||||||||||||||||||||
In March 2013, we acquired certain assets from Yield Technologies, Inc., including RentSentinel and RentSocial (together, “RentSentinel”). The RentSentinel software-as-a-service platform is a fully featured apartment marketing management solution for the multifamily industry. RentSocial is an apartment search service that simplifies and incorporates the social marketing platform into the process of finding an apartment. We have integrated RentSentinel with our existing LeaseStar product family. We acquired RentSentinel for a purchase price of $10.5 million, which consisted of a cash payment of $7.6 million, an issuance of 72,500 shares of our common stock and two tranches of 36,250 shares of our common stock which are issuable 12 months and 24 months after the acquisition date, respectively. The initial fair value of the shares of common stock issued at acquisition and the contingent shares of common stock were $1.5 million and $1.4 million, respectively. As of December 31, 2014, 33,868 shares had been issued. This acquisition was financed from cash flows provided by operations and our common stock. Acquired intangibles were recorded at fair value based on assumptions made by us. The acquired developed product technologies have a useful life of three years and are amortized on a straight-line basis. Acquired customer relationships have a useful life of nine years and are amortized proportionately to the expected discounted cash flows derived from the asset. Direct acquisition costs were $0.1 million and expensed as incurred. We included the results of operations of this acquisition in our consolidated financial statements from the effective date of the acquisition. Goodwill and identified intangibles associated with this acquisition are not deductible for tax purposes. Goodwill arising from the acquisition consists largely of the economies of scale expected from integrating RentSentinel into our existing operating structure and from anticipated synergies with our existing products. | |||||||||||||||||||||
In October 2013, we acquired substantially all of the operating assets of Windsor Compliance Services, Inc. (“Windsor Compliance”) for a purchase price of $2.7 million, which included a cash payment of $1.3 million at closing and additional cash payments of $1.0 million and $0.5 million due 12 months and 24 months after the acquisition date, respectively, which are contingent on Windsor Compliance providing services to a specified number of units on or before those dates. The first payment of $1.0 million was paid in October 2014. The initial fair value of the cash payments was $1.4 million. The fair value was based on management’s estimate of the fair value of the cash payment using a probability weighted discount model on the achievement of the servicing targets discussed above. Windsor Compliance is a firm specializing in compliance with tax credits and regulations for the affordable housing industry. We plan to integrate Windsor Compliance with our other affordable HUD products. This acquisition was financed from cash flows provided by operations. Acquired intangibles were recorded at fair value based on assumptions made by us. Acquired customer relationships have a useful life of ten years and are amortized proportionately to the expected discounted cash flows derived from the asset. Direct acquisition costs were $0.1 million and expensed as incurred. We included the results of operations of this acquisition in our consolidated financial statements from the effective date of the acquisition. Goodwill and identified intangibles associated with this acquisition are deductible for tax purposes. Goodwill arising from the acquisition consists largely of the economies of scale expected from integrating Windsor Compliance into our existing operating structure and from anticipated synergies with our existing products. | |||||||||||||||||||||
In October 2013, we acquired all of the issued and outstanding capital stock of MyBuilding Inc. ("MyBuilding") for a purchase price of $6.9 million, consisting of a cash payment of $5.2 million at closing, a deferred cash payment of up to $1.5 million payable over two years after the acquisition date and additional cash payments totaling up to $1.1 million if certain revenue targets are met for the years ended December 31, 2014 and December 31, 2015. The initial fair value of the deferred and contingent cash payments were $1.4 million and $0.3 million, respectively. During 2014 a cash payment of $0.7 million was made against the deferred cash payment obligation. The fair value of the deferred cash payments was estimated based on the present value, as of the date of acquisition, of anticipated future payments. The fair value of the contingent cash payments was based on management’s estimate of the fair value of the cash payment using a probability weighted discount model on the achievement of certain revenue targets. MyBuilding provides software-as-a-service solutions that facilitate the creation of online communities that connect renters to multifamily property managers, local vendors and other renters. We have integrated Active Building with our Resident Portal software solutions. This acquisition was financed from cash flows provided by operations. Acquired intangibles were recorded at fair value based on assumptions made by us. The acquired developed product technologies have a useful life of three years and are amortized on a straight-line basis. Acquired customer relationships have a useful life of ten years and are amortized proportionately to the expected discounted cash flows derived from the asset. The trade name acquired has an indefinite useful life as we do not plan to cease using the trade names in the marketplace. Direct acquisition costs were $0.1 million and expensed as incurred. We included the results of operations of this acquisition in our consolidated financial statements from the effective date of the acquisition. Goodwill and identified intangibles associated with this acquisition are not deductible for tax purposes. Goodwill arising from the acquisition consists largely of the economies of scale expected from integrating MyBuilding into our existing operating structure and from anticipated synergies with our existing products. The aggregate fair value of the contingent cash payments was $0.2 million and $0.3 million at December 31, 2014 and 2013, respectively. During the year ended December 31, 2014, we recognized a gain of $0.1 million due to the changes in the estimated fair value of the contingent cash payments. No gain or loss was recognized due to changes in the estimated fair value of the contingent cash payments during the year ended December 31, 2013. | |||||||||||||||||||||
In October 2013, we acquired all of the membership interests of Active Building, LLC ("Active Building") for a purchase price of $14.4 million, consisting of a cash payment of $11.3 million at closing, a deferred cash payment of up to $2.0 million payable over three years after the acquisition date and additional cash payments totaling up to $6.5 million if certain revenue targets are met for the years ended December 31, 2014 and December 31, 2015. The initial fair value of the deferred and contingent cash payments was $1.7 million and $1.4 million, respectively. A deferred cash payment in the amount of $0.7 million was made in November 2014. The fair value of the deferred cash payments was estimated based on the present value, as of the date of acquisition, of anticipated future payments. The fair value of the contingent cash payments was based on management’s estimate of the fair value of the cash payment using a probability weighted discount model on the achievement of certain revenue targets. Active Building provides software-as-a-service solutions that facilitate the creation of online communities that connect renters to multifamily property managers, local vendors and other renters. We have integrated Active Building with our Resident Portal software solutions. This acquisition was financed from cash flows provided by operations. Acquired intangibles were recorded at fair value based on assumptions made by us. The acquired developed product technologies have a useful life of three years and are amortized on a straight-line basis. Acquired customer relationships have a useful life of ten years and are amortized proportionately to the expected discounted cash flows derived from the asset. The trade name acquired has an indefinite useful life as we do not plan to cease using the trade names in the marketplace. Direct acquisition costs were $0.1 million and expensed as incurred. We included the results of operations of this acquisition in our consolidated financial statements from the effective date of the acquisition. Goodwill and identified intangibles associated with this acquisition are deductible for tax purposes. Goodwill arising from the acquisition consists largely of the economies of scale expected from integrating Active Building into our existing operating structure and from anticipated synergies with our existing products. The aggregate fair value of the contingent cash payments was $1.6 million and $1.4 million at December 31, 2014 and 2013, respectively. During the year ended December 31, 2014, we recognized a gain of $0.2 million due to the changes in the estimated fair value of the contingent cash payments. No gain or loss was recognized due to changes in the estimated fair value of the contingent cash payments during the year ended December 31, 2013. | |||||||||||||||||||||
We preliminarily allocated the purchase price for SFL, RentSentinel, Windsor Compliance, MyBuilding and Active Building as follows: | |||||||||||||||||||||
SFL | RentSentinel | Windsor Compliance | MyBuilding | Active Building | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Intangible assets: | |||||||||||||||||||||
Developed product technologies | $ | 1,406 | $ | 4,238 | $ | — | $ | 1,450 | $ | 3,850 | |||||||||||
Customer relationships | 161 | 2,390 | 1,230 | 1,000 | 2,650 | ||||||||||||||||
Trade names | — | — | — | 328 | 597 | ||||||||||||||||
Goodwill | 1,035 | 3,633 | 1,302 | 5,043 | 7,198 | ||||||||||||||||
Deferred revenue | — | (304 | ) | (107 | ) | (258 | ) | — | |||||||||||||
Net deferred taxes | — | 226 | — | (813 | ) | — | |||||||||||||||
Net other assets | 88 | 313 | 226 | 111 | 76 | ||||||||||||||||
Total purchase price, net of cash acquired | $ | 2,690 | $ | 10,496 | $ | 2,651 | $ | 6,861 | $ | 14,371 | |||||||||||
2012 Acquisitions | |||||||||||||||||||||
In January 2012, we acquired substantially all of the operating assets of Vigilan, Incorporated (“Vigilan”). A provider of assisted living software-as-a-service solutions, Vigilan products allow assisted living communities to monitor and schedule detailed care, manage labor costs, provide accurate billing and maintain regulatory compliance through its comprehensive compliance module. This asset acquisition allowed us to integrate Vigilan with existing senior living software solutions to further expand the RealPage Senior Living product solutions. We acquired Vigilan for a purchase price of $5.0 million consisting of a cash payment of $4.0 million and two additional cash payments of up to $0.5 million each due 12 months and 24 months after the acquisition date. The $1.0 million withheld from the purchase consideration was subject to a downward adjustment if certain revenue targets were not met for the six months ended June 30, 2012. Revenue targets were met and the amount was not adjusted. The two additional cash payments were made in 2013 and 2014. This acquisition was financed from cash flows from operations. Acquired intangibles were recorded at fair value based on assumptions made by us. The acquired developed product technologies have a useful life of three years and are amortized on a straight-line basis. Acquired customer relationships have a useful life of ten years and are amortized proportionately to the expected discounted cash flows derived from the asset. All direct acquisition costs were $0.1 million and expensed as incurred. We included the results of operations of this acquisition in our consolidated financial statements from the effective date of the acquisition. Goodwill and identified intangibles associated with this acquisition are deductible for tax purposes. Goodwill arising from the acquisition consists largely of the economies of scale expected from integrating Vigilan into our existing operating structure and from anticipated synergies with our existing products. | |||||||||||||||||||||
In July 2012, we acquired all of the issued and outstanding shares of Rent Mine Online, Inc. (“RMO”). The acquisition of RMO expanded our renter referral capabilities into the multifamily residential rental housing market. We acquired RMO for a purchase price consisting of a cash payment of $5.5 million at closing, a deferred cash payment of up to $3.5 million and a contingent deferred earn out payment of up to 300,000 shares of our common stock, payable based on the achievement of certain revenue targets on or before December 31, 2014. In addition, the purchase agreement included a conversion option on the contingent common shares under which the seller can elect to receive, in lieu of common shares, an amount per share equal to the lesser of the average market price or an established threshold, up to one half of the common shares earned. The $3.5 million withheld from the purchase price is subject to a downward adjustment if certain revenue targets were not met as of March 31, 2013. The initial fair value for the future cash payment and the common shares and conversion option were $0.2 million and $0.3 million, respectively. These fair values were based on management’s estimate of the fair value of the cash, common shares and conversion option using a probability weighted discount model on the achievement of certain revenue targets. As of December 31, 2013, 22,000 shares had been issued and a cash payment of $0.7 million had been made. This acquisition was financed using cash flows from operations. Acquired intangibles were recorded at fair value based on assumptions determined by us. The acquired developed product technologies have a useful life of three years amortized on a straight-line basis. Acquired customer relationships have a useful life of ten years which will be amortized proportionately to the expected discounted cash flows derived from the asset. Direct acquisition costs were $0.1 million and expensed as incurred. We included the results of operations of this acquisition in our consolidated financial statements from the effective date of the acquisition. Goodwill and identified intangible assets are not deductible for tax purposes. Goodwill arising from the acquisition consists largely of the economies of scale expected from integrating RMO into our existing operating structure and from anticipated synergies with our existing products. As of December 31, 2013, we recognized a loss of $1.3 million due to changes in the estimated fair value of the cash acquisition-related contingent consideration. As of December 31, 2013, we recognized no income or expense and expense of $0.3 million due to changes in the common shares and the conversion option, respectively. In 2014, the remaining obligations relating to the deferred cash and earn out payments were settled through a cash payment of $0.6 million. | |||||||||||||||||||||
We allocated the purchase price for RMO and Vigilan as follows: | |||||||||||||||||||||
RMO | Vigilan | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Intangible assets: | |||||||||||||||||||||
Developed product technologies | $ | 2,460 | $ | 1,430 | |||||||||||||||||
Customer relationships | 1,770 | 1,150 | |||||||||||||||||||
Goodwill | 3,439 | 2,454 | |||||||||||||||||||
Net deferred taxes | (1,502 | ) | — | ||||||||||||||||||
Net other assets | (410 | ) | (34 | ) | |||||||||||||||||
Total purchase price, net of cash acquired | $ | 5,757 | $ | 5,000 | |||||||||||||||||
Pro Forma Results of Acquisitions | |||||||||||||||||||||
The following table presents unaudited pro forma results of operations for 2014 and 2013 as if the aforementioned acquisitions had occurred at the beginning of each period presented. The pro forma financial information as of December 31, 2014 and 2013, respectively, includes the business combination accounting effects resulting from these acquisitions including $0.8 million and $6.2 million of amortization charges from acquired intangible assets. We prepared the pro forma financial information for the combined entities for comparative purposes only, and it is not indicative of what actual results would have been if the acquisitions had taken place at the beginning of the periods presented, or of future results. | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Pro Forma | Pro Forma | ||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||
On demand | $ | 391,949 | $ | 369,362 | |||||||||||||||||
On premise | 3,094 | 3,691 | |||||||||||||||||||
Professional and other | 10,835 | 11,019 | |||||||||||||||||||
Total revenue | 405,878 | 384,072 | |||||||||||||||||||
Net (loss) income | $ | (10,746 | ) | $ | 15,980 | ||||||||||||||||
Net (loss) income per share: | |||||||||||||||||||||
Basic | $ | (0.14 | ) | $ | 0.21 | ||||||||||||||||
Diluted | $ | (0.14 | ) | $ | 0.21 | ||||||||||||||||
Property_Equipment_and_Softwar
Property, Equipment and Software | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Equipment and Software | Property, Equipment and Software | ||||||||
Property, equipment and software consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Leasehold improvements | $ | 22,943 | $ | 18,756 | |||||
Data processing and communications equipment | 59,390 | 47,719 | |||||||
Furniture, fixtures and other equipment | 16,254 | 11,266 | |||||||
Software | 51,915 | 36,750 | |||||||
150,502 | 114,491 | ||||||||
Less: Accumulated depreciation and amortization | (77,886 | ) | (59,716 | ) | |||||
Property, equipment and software, net | $ | 72,616 | $ | 54,775 | |||||
Depreciation and amortization expense for property, equipment and purchased software was $18.9 million, $14.1 million and $13.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. This includes depreciation for assets acquired through capital leases. | |||||||||
The carrying amount of capitalized development costs was $32.5 million and $21.6 million and had accumulated amortization of $10.7 million and $9.0 million at December 31, 2014 and 2013, respectively. The weighted average amortization period for capitalized software development costs was 4.3 years at December 31, 2014. During the years ended December 31, 2014 and 2013 we capitalized $10.9 million and $7.6 million of software development costs. Amortization expense related to capitalized software development costs totaled $1.7 million, $1.0 million and $1.2 million during the years ended December 31, 2014, 2013 and 2012, respectively. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |||||||||||||||||||||||||
The change in the carrying amount of goodwill is as follows: | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 134,025 | ||||||||||||||||||||||||
Goodwill acquired | 18,211 | |||||||||||||||||||||||||
Other | 186 | |||||||||||||||||||||||||
Balance at December 31, 2013 | 152,422 | |||||||||||||||||||||||||
Goodwill acquired | 40,341 | |||||||||||||||||||||||||
Other | 615 | |||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 193,378 | ||||||||||||||||||||||||
There was no impairment of goodwill indicated in 2014, 2013 or 2012. | ||||||||||||||||||||||||||
Other intangible assets consisted of the following at December 31, 2014 and 2013: | ||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Weighted Average Amortization | Carrying | Accumulated | Net | Carrying | Accumulated | Net | ||||||||||||||||||||
Period | Amount | Amortization | Amount | Amortization | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||||||||||
Developed technologies | 3.2 years | $ | 55,212 | $ | (39,343 | ) | $ | 15,869 | $ | 45,014 | $ | (29,952 | ) | $ | 15,062 | |||||||||||
Customer relationships | 9.0 years | 86,753 | (44,264 | ) | 42,489 | 85,823 | (33,503 | ) | 52,320 | |||||||||||||||||
Vendor relationships | 4.2 years | 5,650 | (5,273 | ) | 377 | 5,650 | (4,709 | ) | 941 | |||||||||||||||||
Total finite-lived intangible assets | 6.7 years | 147,615 | (88,880 | ) | 58,735 | 136,487 | (68,164 | ) | 68,323 | |||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||
Trade names | 41,350 | — | 41,350 | 40,492 | — | 40,492 | ||||||||||||||||||||
Total intangible assets | $ | 188,965 | $ | (88,880 | ) | $ | 100,085 | $ | 176,979 | $ | (68,164 | ) | $ | 108,815 | ||||||||||||
During 2014, we recognized an impairment of the MyNewPlace trade name in the amount of $0.3 million. Other than this trade name, no impairment of other intangible assets was indicated in 2014. No impairment of other intangible assets was indicated in 2013 or 2012. We paid $1.1 million and $0.9 million to acquire domain names and other intangible assets. Amortization of finite-lived intangible assets was $20.7 million, $16.6 million and $18.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||
As of December 31, 2014, the following table sets forth the estimated amortization of intangible assets for the years ending December 31: | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
2015 | $ | 18,296 | ||||||||||||||||||||||||
2016 | 13,961 | |||||||||||||||||||||||||
2017 | 8,236 | |||||||||||||||||||||||||
2018 | 5,981 | |||||||||||||||||||||||||
2019 | 5,095 | |||||||||||||||||||||||||
Debt
Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt | Debt |
Credit Facility Opened September 2014 | |
On September 30, 2014, we entered into a new agreement for a secured revolving credit facility to refinance our outstanding revolving loans. The new credit facility provides an aggregate principal amount of up to $200.0 million, with sublimits of $10.0 million for the issuance of letters of credit and for $20.0 million of swingline loans. The credit facility also allows us, subject to certain conditions, to request additional term loans or revolving commitments in an aggregate principal amount of up to $150.0 million, plus an amount that would not cause our consolidated net leverage ratio, which is a ratio of the Company’s consolidated funded indebtedness to its consolidated EBIDTA, to exceed 3.25 to 1.00. Advances under the credit facility may be voluntarily prepaid and re-borrowed. At our option, the revolving loans accrue interest at a per annum rate equal to either LIBOR, plus a margin ranging from 1.25% to 1.75%, or the Base Rate, plus a margin ranging from 0.25% to 0.75%. The Base Rate is defined as the greater of Wells Fargo's prime rate, the Federal Funds Rate plus 0.50% or one month LIBOR plus 1.00%. In each case, the applicable margin is determined based upon our consolidated net leverage ratio. The interest is due and payable quarterly, in arrears, for loans bearing interest at the Base Rate and at the end of the applicable interest period in the case of loans bearing interest at the adjusted LIBOR rate. The credit facility is secured by substantially all of the Company’s assets and certain of our existing and future material domestic subsidiaries are required to guaranty our obligations under the credit facility. All outstanding principal and accrued and unpaid interest is due upon the credit facility's maturity, September 30, 2019. | |
Our credit facility contains customary covenants, subject in each case to customary exceptions and qualifications, which limit our and certain of our subsidiaries’ ability to, among other things, incur additional indebtedness or guarantee indebtedness of others; create liens on our assets; enter into mergers or consolidations; dispose of assets; prepay certain indebtedness or make changes to our governing documents and certain of our agreements; pay dividends and make other distributions on our capital stock, and redeem and repurchase our capital stock; make investments, including acquisitions; and enter into transactions with affiliates. Our credit facility additionally contains customary affirmative covenants. We are also required to comply with a maximum consolidated net leverage ratio and a minimum interest coverage ratio. The interest coverage ratio, which is a ratio of our four previous fiscal consecutive quarters' consolidated EBITDA to our interest expense, is to be not less than 3.00 to 1.00 as of the last day of any fiscal quarter. The consolidated net leverage ratio, which is the ratio of funded indebtedness on the last day of each fiscal quarter to the four previous consecutive fiscal quarters' consolidated EBITDA, is not to be greater than 3.50 to 1.00, provided that we can elect to increase the ratio to 3.75 to 1.00 for a specified period following a permitted acquisition. As of December 31, 2014, we were in compliance with the covenants under our credit facility. | |
The credit facility contains customary events of default, subject to customary cure periods for certain defaults, that include, among others, non-payment defaults, covenant defaults, material judgment defaults, bankruptcy and insolvency defaults, cross-defaults to certain other material indebtedness, ERISA defaults, inaccuracy of representations and warranties, and a change in control default. | |
In the event of a default on our credit facility, the obligations under the credit facility could be accelerated, the applicable interest rate under the credit facility could be increased, the loan commitments could be terminated, our subsidiaries that have guaranteed the credit facility could be required to pay the obligations in full, and our lenders would be permitted to exercise remedies with respect to all of the collateral that is securing the credit facility, including substantially all of our and our subsidiary guarantors’ assets. Any such default that is not cured or waived could have a material adverse effect on our liquidity and financial condition. | |
As of December 31, 2014 and 2013, we had $20.0 million and $0.0 million, respectively, outstanding under our revolving line of credit. As of December 31, 2014, $180.0 million was available under our revolving line of credit of which $10.0 million was available for the issuance of letters of credit. We had unamortized debt issuance costs of $1.3 million and $0.3 million at December 31, 2014 and 2013, respectively. | |
Previous Credit Facility | |
Our previous secured revolving credit facility had an aggregate principal amount of up to $150.0 million, subject to a borrowing formula, with a sub-limit of $10.0 million for the issuance of letters of credit on our behalf. At our option, the borrowings accrued interest at a per annum rate equal to either LIBOR or Wells Fargo’s prime rate (or, if greater, the Federal Funds Rate plus 0.50% or three month LIBOR plus 1.00%), in each case plus a margin ranging from 2.00% to 2.50%, in the case of LIBOR loans, and 0.00% to 0.25% in the case of prime rate loans, in each case based upon our senior leverage ratio. The interest was due and payable monthly, in arrears, for loans bearing interest at the prime rate and at the end of the applicable 1-, 2-, or 3-month interest period in the case of loans bearing interest at the adjusted LIBOR rate. | |
In May 2014, we entered into an amendment to the previous credit facility. Under the terms of the amendment, the restrictive covenants were amended to permit us to repurchase up to $75.0 million of our common stock, subject to certain conditions. Additionally, the fixed charge coverage ratio was replaced with a new minimum interest expense coverage ratio and the capital expenditures limitations were increased. | |
In June 2014, we entered into an amendment to the previous credit facility. Under the terms of the amendment, the parties to the credit facility consented to the acquisition of Kigo and agreed that the acquisition of Kigo would be a "Permitted Acquisition," as defined in the credit facility and would be excluded from the calculation of the Permitted Acquisition limit. Additionally, the amendment increased the value of our equipment that could be in the hands of our employees, consultants, or customers in the ordinary course of business to $2.5 million and amended the definition of "Aggregate Permitted Acquisition Limit" to $150.0 million, plus an additional $100.0 million if certain conditions are met. In June 2014, we borrowed a total of $25.0 million from our revolving line of credit in order to partially finance our acquisition of Kigo. |
Stockbased_Compensation
Stock-based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock-based Compensation | Stock-based Compensation | ||||||||||||||||
Our Amended and Restated 1998 Stock Incentive Plan (“Stock Incentive Plan”) provided for awards which could be granted in the form of incentive stock options, non-qualified stock options, restricted stock, stock appreciation rights and performance restricted stock. In August 2010 we discontinued issuance of new awards under the Stock Incentive Plan and concurrently adopted the 2010 Equity Incentive Plan ("Equity Incentive Plan"). The Equity Incentive Plan provides for awards which can be may be granted in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares under substantially the same terms as the Stock Incentive Plan. | |||||||||||||||||
We also grant awards to our directors, generally in the form of stock options, in accordance with the Board of Directors Policy (“Board Plan”). The options generally vest immediately and have a four-year term. Should a director leave the board, we have the right to repurchase shares as if the options vested on a pro rata basis. | |||||||||||||||||
In connection with our acquisition of Multifamily Technology Solutions, Inc. ("MTS"), on August 24, 2011, we assumed 349,693 non-qualified and incentive stock options granted from MTS’s 2005 Equity Incentive Plan (“MTS Plan”) for 96 employees. Assumed options were converted to equivalent stock-based awards of RealPage based on the ratio of our fair market value of stock to the fair market value of MTS’s stock on the acquisition date. The number of shares and ratio of exercise price to market price were equitably adjusted to preserve the intrinsic value of the award as of immediately prior to the acquisition. The conversion was accounted for as a modification which did not result in an incremental increase in the fair value of the assumed option awards. The majority of assumed options vest over a four-year period at a rate of 25% or 20% after one year and then monthly on a straight-line basis thereafter while others vest ratably over a four-year period. Options granted generally are exercisable up to 10 years. No further options will be granted under the MTS Plan. | |||||||||||||||||
Our board of directors periodically approves increases to the number of shares of common stock reserved for issuance under the Equity Incentive Plan. At both December 31, 2014 and 2013, 22,134,259 shares of the Company's common stock were reserved for awards under the Equity Incentive Plan. The exercise of stock options and restricted stock units are fulfilled through the issuance of previously authorized but unissued common stock shares. | |||||||||||||||||
Total compensation expense related to our stock-based compensation plans was $37.1 million, $29.7 million and $18.2 million, for the years ended December 31, 2014, 2013, and 2012, respectively. During the years ended December 31, 2014, 2013, and 2012 we recognized a tax benefit of $14.0 million, $11.2 million and $6.8 million, respectively. Total unrecognized compensation expense related to our stock-based compensation plans was $57.1 million at December 31, 2014, and is expected to be recognized over a period of 2.0 years. Cash proceeds related to stock-based compensation transactions totaled $9.9 million, $10.6 million and $12.1 million during the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||
Stock Option Plan | |||||||||||||||||
Stock options granted prior to February 2014 under the generally vest over a period of 16 quarters with 75% vesting ratably over 15 quarters and the remaining 25% vesting in the 16th quarter. Beginning in February 2014, stock options granted generally vest ratably over a period of twelve quarters. Awards under the plan generally expire ten years from the date of the grant. All outstanding options were granted at exercise prices equal to or exceeding our estimate of the fair market value of our common stock at the date of grant. | |||||||||||||||||
The following table summarizes stock option transactions under our Stock Incentive Plan, Equity Incentive Plan, Board Plan and MTS Plan: | |||||||||||||||||
Number of | Range of | Weighted | |||||||||||||||
Shares | Exercise | Average | |||||||||||||||
Prices | Exercise | ||||||||||||||||
Price | |||||||||||||||||
Balance, January 1, 2012 | 7,292,031 | $ | 0.91 | – | $ | 29.5 | $ | 9.95 | |||||||||
Granted | 1,641,470 | 17.67 | – | 24.64 | 20.09 | ||||||||||||
Exercised | (2,389,704 | ) | 0.91 | – | 27.18 | 5.05 | |||||||||||
Forfeited/cancelled | (684,154 | ) | 0.94 | – | 29.5 | 17.04 | |||||||||||
Expired | (1,030 | ) | 0.94 | – | 27.18 | 2.73 | |||||||||||
Balance, December 31, 2012 | 5,858,613 | 0.91 | – | 29.5 | 13.97 | ||||||||||||
Granted | 2,421,124 | 19.78 | – | 25.7 | 22.2 | ||||||||||||
Exercised | (1,556,865 | ) | 0.91 | – | 25.24 | 6.81 | |||||||||||
Forfeited/cancelled | (800,470 | ) | 4.28 | – | 29.5 | 18.71 | |||||||||||
Expired | (7,600 | ) | 24.03 | – | 24.64 | 24.35 | |||||||||||
Balance, December 31, 2013 | 5,914,802 | 0.91 | – | 29.5 | 18.56 | ||||||||||||
Granted | 1,934,031 | 15.19 | – | 21.54 | 17.68 | ||||||||||||
Exercised | (907,765 | ) | 0.91 | – | 21.6 | 10.92 | |||||||||||
Forfeited/cancelled | (1,336,894 | ) | 4.28 | – | 29.5 | 20.93 | |||||||||||
Expired | (37,286 | ) | 19.78 | – | 24.64 | 24.02 | |||||||||||
Balance, December 31, 2014 | 5,566,888 | 0.91 | – | 29.5 | 18.89 | ||||||||||||
The below table provides information regarding stock options fully vested and expected to vest outstanding and exercisable at December 31: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Options Fully Vested and Expected to Vest | Options Exercisable | Options Fully Vested and Expected to Vest | Options Exercisable | ||||||||||||||
Number of options | 5,545,427 | 2,455,134 | 5,864,340 | 1,984,472 | |||||||||||||
Weighted-average remaining contractual term (in years) | 7.7 | 6.6 | 7.9 | 6.6 | |||||||||||||
Weighted-average exercise price | $ | 18.88 | $ | 17.04 | $ | 18.53 | $ | 14.42 | |||||||||
Aggregate intrinsic value | $ | 22,012 | $ | 14,704 | $ | 32,023 | $ | 18,784 | |||||||||
The aggregate intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012 was $8.5 million, $23.3 million and $42.7 million, respectively. | |||||||||||||||||
The fair value of each stock option grant was estimated on the date of grant using the Black Scholes option-pricing model with the following weighted-average assumptions and resulting weighted-average fair value per share: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Risk-free interest rates | 1.30% | 1.30% | 1.00% | ||||||||||||||
Expected option life (in years) | 4.4 | 6 | 6 | ||||||||||||||
Forfeiture rate | —% | 0.90% | 0.80% | ||||||||||||||
Dividend yield | —% | —% | —% | ||||||||||||||
Expected volatility | 42.80% | 48.50% | 51.40% | ||||||||||||||
Weighted-average grant date fair value | $6.44 | $10.37 | $9.78 | ||||||||||||||
Risk-free interest rate. This is the average U.S. Treasury rate (having a term that most closely approximates the expected life of the option) for the period in which the option was granted. | |||||||||||||||||
Expected life of the options. This is the period of time that the options granted are expected to remain outstanding. | |||||||||||||||||
Forfeiture rate. This is the projected annual rate at which we expect awards to be forfeited in the future. | |||||||||||||||||
Dividend yield. We have never declared or paid dividends on our common stock and do not anticipate paying dividends in the foreseeable future. | |||||||||||||||||
Expected volatility. Volatility is a measure of the amount by which a financial variable such as a share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. We arrived at a volatility rate after considering our expected and historical volatility rates and the volatility rates of publicly traded peers. | |||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
Restricted stock is an award that entitles the holder to receive shares of our common stock as the award vests. The fair value of each non-market-based restricted stock award is based on the closing common stock price on the date of grant. | |||||||||||||||||
Time-based restricted stock awards: | |||||||||||||||||
Time-based restricted stock awards granted prior to February 2014 generally vest ratably over 16 quarters following the date of grant. Beginning in February 2014, restricted stock awards granted generally vest over a period of 12 quarters following the grant date. Compensation expense for time-based restricted stock awards is recognized over the vesting period on a straight-line basis. | |||||||||||||||||
A summary of time-based restricted stock awards’ activity is presented in the table below. | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | Average Grant-Date Fair Value | ||||||||||||||||
Non-vested shares at January 1, 2012 | 998,958 | $ | 24.54 | ||||||||||||||
Granted | 1,022,609 | 19.93 | |||||||||||||||
Vested | (426,675 | ) | 23.08 | ||||||||||||||
Forfeited/cancelled | (233,945 | ) | 23.34 | ||||||||||||||
Non-vested shares at December 31, 2012 | 1,360,947 | 21.58 | |||||||||||||||
Granted | 1,747,501 | 22.09 | |||||||||||||||
Vested | (712,434 | ) | 21.3 | ||||||||||||||
Forfeited/cancelled | (305,211 | ) | 21.58 | ||||||||||||||
Non-vested shares at December 31, 2013 | 2,090,803 | 22.1 | |||||||||||||||
Granted | 1,238,226 | 17.69 | |||||||||||||||
Vested | (1,101,143 | ) | 21.18 | ||||||||||||||
Forfeited/cancelled | (603,367 | ) | 20.36 | ||||||||||||||
Non-vested shares at December 31, 2014 | 1,624,519 | 20.01 | |||||||||||||||
Performance-based restricted stock awards: | |||||||||||||||||
We have also granted certain employees performance-based restricted stock awards. These shares vest dependent upon attainment of various levels of performance that equal or exceed targeted levels and generally vest in their entirety one to two years from the date of grant. Compensation expense for performance-based restricted stock awards is recognized based on the probability of achievement of the performance condition. | |||||||||||||||||
A summary of performance-based restricted stock awards’ activity is presented in the table below. | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | Average Grant-Date Fair Value | ||||||||||||||||
Non-vested shares at January 1, 2012 | 533,587 | $ | 23.39 | ||||||||||||||
Granted | 270,000 | 22.93 | |||||||||||||||
Vested | (132,791 | ) | 12.87 | ||||||||||||||
Forfeited/cancelled | (395,539 | ) | 27.26 | ||||||||||||||
Non-vested shares at December 31, 2012 | 275,257 | 22.46 | |||||||||||||||
Granted | 100,000 | 21.6 | |||||||||||||||
Vested | (31,902 | ) | 17.99 | ||||||||||||||
Forfeited/cancelled | (273,355 | ) | 23.4 | ||||||||||||||
Non-vested shares at December 31, 2013 | 70,000 | 18.1 | |||||||||||||||
Granted | — | — | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited/cancelled | (70,000 | ) | 18.1 | ||||||||||||||
Non-vested shares at December 31, 2014 | — | — | |||||||||||||||
Market-based restricted stock awards: | |||||||||||||||||
During 2014 we granted certain employees market-based restricted stock awards. The shares were issued in two tranches that become eligible for vesting if the average closing price per share of our common stock equals or exceeds an established threshold for each tranche for twenty consecutive days prior to July 1, 2017. The shares vest quarterly over one year following the date they became eligible for vesting and, if then eligible, shall be fully vested on July 1, 2017. | |||||||||||||||||
A summary of performance-based restricted stock awards’ activity is presented in the table below. | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | Average Grant-Date Fair Value | ||||||||||||||||
Balance at December 31, 2013 | — | $ | — | ||||||||||||||
Granted | 520,000 | 11.26 | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited/cancelled | — | — | |||||||||||||||
Balance at December 31, 2014 | 520,000 | 11.26 | |||||||||||||||
We estimate the fair value of market-based restricted stock awards using a discrete model to analyze the fair value of the subject shares. The discrete model utilizes multiple stock price-paths, through the use of Monte Carlo simulation, which are then analyzed to determine the fair value of the subject shares. The awards granted during 2014 were valued using the following assumptions: | |||||||||||||||||
Risk-free interest rates | 1.10% | ||||||||||||||||
Expected volatility | 43.60% | ||||||||||||||||
Risk-free interest rate. We estimated the risk free rate from the 3-year U.S. Treasury strip note yield curve at the valuation date. | |||||||||||||||||
Expected volatility. Volatility is a measure of the amount by which a financial variable such as a share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. We arrived at a volatility rate after considering our expected and historical volatility rates and the volatility rates of publicly traded peers. | |||||||||||||||||
Compensation expense related to market-based restricted stock awards is recognized over the requisite service period on a straight-line basis. The requisite service period is a measure of the expected time to reach the respective vesting threshold. We estimated this period by utilizing a Monte Carlo simulation, considering only those stock price-paths in which the threshold was exceeded. The estimated requisite service period for the market-based restricted stock shares issued in 2014 ranges between twelve and seventeen months. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||
Lease Commitments | ||||||||||||
In the first quarter of 2013, we entered into a capital lease agreement for software that expires in 2016. We recognize lease expense on a straight-line basis over the lease term. The assets under capital lease are as follows: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Software | $ | 1,977 | $ | 1,977 | ||||||||
Less: Accumulated amortization | (1,110 | ) | (565 | ) | ||||||||
Assets under capital lease, net | $ | 867 | $ | 1,412 | ||||||||
Amortization expense relating to capital leases is included in depreciation expense in the accompanying financial statements. The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of December 31, 2014 are as follows: | ||||||||||||
(in thousands) | ||||||||||||
2015 | $ | 588 | ||||||||||
2016 | 294 | |||||||||||
Thereafter | — | |||||||||||
Total minimum lease payments | 882 | |||||||||||
Less amount representing average interest of 2.2% | (15 | ) | ||||||||||
867 | ||||||||||||
Less current portion | (575 | ) | ||||||||||
Long-term portion | $ | 292 | ||||||||||
The Company leases office facilities and equipment for various terms under long-term, non-cancellable operating lease agreements. The leases expire at various dates through 2020 and provide for renewal options. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on other properties or equipment. The agreements generally require the Company to pay for executory costs such as real estate taxes, insurance and repairs. | ||||||||||||
During 2014, the Company entered into sublease agreements for certain of its leased office facilities. These sublease agreements expire through 2017. | ||||||||||||
Minimum annual rental commitments under non-cancellable operating leases and total minimum rentals to be received under non-cancellable subleases as were as follows at December 31, 2014: | ||||||||||||
Minimum Lease Commitments | Sublease Income | Net Lease Commitments | ||||||||||
(in thousands) | ||||||||||||
2015 | $ | 11,838 | $ | 201 | $ | 11,637 | ||||||
2016 | 9,495 | 99 | 9,396 | |||||||||
2017 | 4,618 | 74 | 4,544 | |||||||||
2018 | 4,014 | — | 4,014 | |||||||||
2019 | 3,460 | — | 3,460 | |||||||||
Thereafter | 1,233 | — | 1,233 | |||||||||
$ | 34,658 | $ | 374 | $ | 34,284 | |||||||
Certain of the lease agreements contain provisions for future rent increases, rent free periods or periods in which rent payments are reduced (abated). The total amount of rental payments due over the lease term is charged to rent expense on the straight-line method over the term of the lease. The difference between rent expense recorded and the amount paid is credited or charged to Deferred Rent Obligation, which is included in accrued expenses and other current liabilities and other long-term liabilities in the accompanying Balance Sheet based on when the expense the deferred rent is expected to be recognize. Rent expense was $11.1 million, $9.7 million and $8.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. Income from subleases was $0.1 million for each of the years ended December 31, 2014 and 2013. We had no sublease activity during 2012. | ||||||||||||
Guarantor Arrangements | ||||||||||||
We have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is or was serving at our request in such capacity. The term of the indemnification period is for the officer or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have a director and officer insurance policy that limits our exposure and enables us to recover a portion of any future amounts paid. As a result of our insurance policy coverage, we believe the estimated fair value of these indemnification agreements is minimal. Accordingly, we had no liabilities recorded for these agreements as of December 31, 2014 or 2013. | ||||||||||||
In the ordinary course of our business, we enter into standard indemnification provisions in our agreements with our customers. Pursuant to these provisions, we indemnify our customers for losses suffered or incurred in connection with third-party claims that our products infringed upon any U.S. patent, copyright, trademark or other intellectual property right. Where applicable, we generally limit such infringement indemnities to those claims directed solely to our products and not in combination with other software or products. With respect to our products, we also generally reserve the right to resolve such claims by designing a non-infringing alternative, by obtaining a license on reasonable terms, or by terminating our relationship with the customer and refunding the customer’s fees. | ||||||||||||
The potential amount of future payments to defend lawsuits or settle indemnified claims under these indemnification provisions is unlimited in certain agreements; however, we believe the estimated fair value of these indemnity provisions is minimal, and, accordingly, we had no liabilities recorded for these agreements as of December 31, 2014 or 2013. | ||||||||||||
Litigation | ||||||||||||
From time to time, in the normal course of our business, we are a party to litigation matters and claims. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict and our view of these matters may change in the future as the litigation and events related thereto unfold. We expense legal fees as incurred. Insurance recoveries associated with legal costs incurred are recorded when they are deemed probable of recovery. | ||||||||||||
We review the status of each matter and record a provision for a liability when we consider both that it is probable that a liability has been incurred and that the amount of the loss can be reasonably estimated. These provisions are reviewed quarterly and adjusted as additional information becomes available. If either or both of the criteria are not met, we assess whether there is at least a reasonable possibility that a loss, or additional losses beyond those already accrued, may be incurred. If there is a reasonable possibility that a material loss (or additional material loss in excess of any existing accrual) may be incurred, we disclose an estimate of the amount of loss or range of losses, either individually or in the aggregate, as appropriate, if such an estimate can be made, or disclose that an estimate of loss cannot be made. An unfavorable outcome in any legal matter, if material, could have an adverse effect on our operations, financial position, liquidity and results of operations. | ||||||||||||
On January 24, 2011, Yardi Systems, Inc. filed a lawsuit in the U.S. District Court for the Central District of California against RealPage, Inc. and DC Consulting, Inc. (the “Yardi Lawsuit”). We answered and filed counterclaims against Yardi, and on July 1, 2012, the Company and Yardi entered into a settlement agreement (the “Settlement Agreement”) resolving all outstanding litigation between the parties. The Settlement Agreement also includes a license of certain Yardi intellectual property to the Company and a license of certain of our intellectual property to Yardi. | ||||||||||||
In connection with the Yardi Lawsuit, the Company made claims for reimbursement against each of its primary and excess layer general liability and errors and omissions liability insurance carriers. Each of our primary and excess layer errors and omissions liability insurance carriers other than Homeland Insurance of New York (“Homeland”) reimbursed the Company up to each of its policy limits. On July 19, 2012, we became aware of assertions by one of our primary layer errors and omissions insurance carriers, Ace European Group, Ltd. d/b/a Ace European Group, Barbican Syndicate 1995 at Lloyds (“Ace”), that Ace no longer considered the previously reimbursed $5.0 million payment covered under such policy, and that Ace demanded reimbursement of the $5.0 million payment that it had previously reimbursed to us. On August 12, 2012, our first excess layer errors and omissions insurance carrier, Axis Surplus Insurance Company (“Axis”), informed us that if Ace’s policy is deemed void, then Axis’ first excess layer policy was void on the same basis which would result in the Company’s obligation to reimburse to Axis $5.0 million in payments that Axis had previously reimbursed to us. The Company disputed these assertions by these carriers. Accordingly, on August 14, 2012, the Company filed a lawsuit in the U.S. District Court for the Eastern District of Texas against Ace and Axis (the “Ace Lawsuit”) seeking a declaration by the court that Ace and Axis have no right to, and no lawful reason to demand reimbursement of, the amounts paid to the Company’s counsel in connection with the Yardi Lawsuit. On February 25, 2014, RealPage and Axis entered into a confidential settlement and mutual release of claims, as a result of which Axis was dismissed from the Ace Lawsuit. On March 11, 2014, Ace filed its answer, affirmative defenses and counterclaims. On April 1, 2014, RealPage and Ace entered into a confidential settlement agreement and mutual release of claims and on April 7, 2014, the court entered an order granting the joint motion to dismiss all claims and demands asserted in the lawsuit. We expensed $4.7 million, inclusive of the settlements and other related costs in the first quarter of 2014. | ||||||||||||
We are involved in other litigation matters not listed above but we believe that any reasonably possible adverse outcome of these matters would not be material either individually or in the aggregate at this time. Our view of the matters not listed may change in the future as the litigation and events related thereto unfold. |
Stockholders_Equity_Stockholde
Stockholders' Equity Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity |
The Company's Board of Directors approved a $50.0 million initial share repurchase program during the second quarter of 2014 and continuing for a period of up to one year. During 2014, we repurchased 966,595 shares of our common stock at a weighted average cost of $16.06 per share and a total cost of approximately $15.5 million. |
Funds_Held_for_Others
Funds Held for Others | 12 Months Ended |
Dec. 31, 2014 | |
Funds Held for Others [Abstract] | |
Funds Held for Others | Funds Held for Others |
In connection with our payment processing services, we collect tenant funds and subsequently remit these tenant funds to our customers after varying holding periods. These funds are settled through our Originating Depository Financial Institution (“ODFI”) custodial accounts at major banks. The ODFI custodial account balances were $83.7 million and $70.1 million at December 31, 2014 and 2013, respectively. The ODFI custodial account balances are included in our consolidated balance sheets as restricted cash. The corresponding liability for these custodial balances is reflected as customer deposits. In connection with the timing of our payment processing services, we are exposed to credit risk in the event of nonperformance by other parties, such as returned checks. We utilize credit analysis and other controls to manage the credit risk exposure. We have not experienced any credit losses to date. Any expected losses are included in our accounts receivable allowances on our consolidated balance sheet. | |
The ODFI custodial accounts are in the name of, RealPage Payment Processing Services, Inc. (“RPPS”), a bankruptcy-remote, special-purpose entity, that is a wholly owned subsidiary of the Company. We provide processing and administrative services to RPPS through a services agreement. | |
The obligations of RPPS under the ODFI custodial account agreement are guaranteed by us. | |
In connection with our renter insurance products, we collect premiums from policy holders and subsequently remit the premium, net of our commission, to the underwriter. We maintain separate accounts for these transactions. We had $1.7 million and $1.5 million in restricted cash for the periods ended December 31, 2014 and 2013, respectively, and $1.7 million and $1.5 million in customer deposits related to these insurance products for periods ended December 31, 2014 and 2013, respectively. We had $0.1 million and $0.4 million in restricted cash and 0.1 million and $0.4 million in customer deposits relating to our utility management solution at December 31, 2014 and 2013. |
Net_Loss_Income_Per_Share
Net (Loss) Income Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Net (Loss) Income Per Share | Net (Loss) Income Per Share | ||||||||||||
Basic net (loss) income per share was computed by dividing the net (loss) income by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per share was computed by using the weighted average number of common shares outstanding, including potential dilutive shares of common stock assuming the dilutive effect of outstanding stock options and restricted stock using the treasury stock method. Weighted average shares from common share equivalents in the amount of 1,273,889, 1,058,334 and 644,299 shares were excluded from the dilutive shares outstanding because their effect was anti-dilutive for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||
The following table presents the calculation of basic and diluted net (loss) income per share attributable to common stockholders: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Numerator: | |||||||||||||
Net (loss) income | $ | (10,274 | ) | $ | 20,692 | $ | 5,183 | ||||||
Denominator: | |||||||||||||
Basic: | |||||||||||||
Weighted average common shares used in computing basic net (loss) income per share | 76,991 | 74,962 | 71,838 | ||||||||||
Diluted: | |||||||||||||
Weighted average common shares used in computing basic net (loss) income per share | 76,991 | 74,962 | 71,838 | ||||||||||
Add weighted average effect of dilutive securities: | |||||||||||||
Stock options and restricted stock | — | 1,225 | 2,164 | ||||||||||
Weighted average common shares used in computing diluted net (loss) income per share | 76,991 | 76,187 | 74,002 | ||||||||||
Net (loss) income per common share: | |||||||||||||
Basic | $ | (0.13 | ) | $ | 0.28 | $ | 0.07 | ||||||
Diluted | $ | (0.13 | ) | $ | 0.27 | $ | 0.07 | ||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The domestic and foreign components of (loss) income before provision for income taxes were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Domestic | $ | (18,768 | ) | $ | 19,230 | $ | 9,151 | ||||||
Foreign | 2,161 | 1,252 | 251 | ||||||||||
Total | $ | (16,607 | ) | $ | 20,482 | $ | 9,402 | ||||||
Our (benefit) provision for income taxes consisted of the following components: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 437 | 1,886 | 1,568 | ||||||||||
Foreign | 550 | 421 | 27 | ||||||||||
Total current taxes | 987 | 2,307 | 1,595 | ||||||||||
Deferred: | |||||||||||||
Federal | (6,611 | ) | (1,832 | ) | 3,192 | ||||||||
State | (460 | ) | (619 | ) | (574 | ) | |||||||
Foreign | (249 | ) | (66 | ) | 6 | ||||||||
Total deferred taxes | (7,320 | ) | (2,517 | ) | 2,624 | ||||||||
Total income tax (benefit) provision | $ | (6,333 | ) | $ | (210 | ) | $ | 4,219 | |||||
The reconciliation of our income tax (benefit) expense computed at the U.S. federal statutory tax rate to the actual income tax (benefit) expense is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Expense derived by applying the Federal income tax rate to (loss) income before taxes | $ | (5,813 | ) | $ | 7,169 | $ | 3,291 | ||||||
State income tax, net of federal benefit | (177 | ) | 607 | 445 | |||||||||
Foreign income tax | (477 | ) | (170 | ) | (55 | ) | |||||||
Change in valuation allowance | — | (9,087 | ) | — | |||||||||
Benefit of assets not previously recognized | (516 | ) | — | — | |||||||||
Nondeductible expenses | 454 | 644 | 612 | ||||||||||
Fair value adjustment on stock acquisition | (28 | ) | 487 | (251 | ) | ||||||||
Stock-based compensation | 223 | 139 | 171 | ||||||||||
Other | 1 | 1 | 6 | ||||||||||
$ | (6,333 | ) | $ | (210 | ) | $ | 4,219 | ||||||
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Reserves, deferred revenue and accrued liabilities | $ | 6,392 | $ | 6,303 | |||||||||
Stock-based compensation | 12,238 | 10,873 | |||||||||||
Net operating loss carryforwards | 22,348 | 16,106 | |||||||||||
Total gross deferred tax assets | 40,978 | 33,282 | |||||||||||
Deferred tax asset valuation allowance | — | (43 | ) | ||||||||||
Total deferred tax assets | 40,978 | 33,239 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Property, equipment and software | (8,217 | ) | (5,408 | ) | |||||||||
Other | (2,459 | ) | (2,055 | ) | |||||||||
Intangible assets | (21,965 | ) | (23,871 | ) | |||||||||
Total deferred tax liabilities | (32,641 | ) | (31,334 | ) | |||||||||
Net deferred tax assets | $ | 8,337 | $ | 1,905 | |||||||||
Our management periodically evaluates the realizability of the deferred tax assets and, if it is determined that it is more likely than not that the deferred tax assets are realizable, adjusts the valuation allowance accordingly. During 2013, we were able to conclude that given our performance, the realization of our deferred tax assets was more likely than not and accordingly reversed valuation allowances of approximately $9.2 million and recorded the reduction in valuation allowances as a tax benefit for the period. The determination of the level of valuation allowance at December 31, 2014 is based on an estimated forecast of future taxable income which includes many judgments and assumptions. Accordingly, it is at least reasonably possible that future changes in one or more assumptions may lead to a change in judgment regarding the level of valuation allowance required in future periods | |||||||||||||
The acquisition of the stock of Kigo, Inc. resulted in an additional net deferred tax liability of $0.5 million. This net liability includes a deferred tax liability of $1.4 million related to intangibles that are not subject to amortization for tax purposes and a deferred tax asset of $1.0 million related to net operating loss carryforwards. | |||||||||||||
The acquisition of the stock of RentSentinel resulted in an additional net deferred tax asset of $0.2 million. This net asset includes a deferred tax liability of $1.8 million related to intangibles that are not subject to amortization for tax purposes, a deferred tax asset of $2.1 million related to net operating loss carryforwards and other miscellaneous deferred tax liabilities of $0.1 million. | |||||||||||||
The acquisition of the stock of My Building resulted in an additional net deferred tax liability of $0.8 million. This net liability includes a deferred tax liability of $1.2 million related to intangibles that are not subject to amortization for tax purposes, a deferred tax asset of $0.3 million related to net operating loss carryforwards and other miscellaneous deferred tax assets of $0.1 million. | |||||||||||||
We have not recognized deferred tax assets of $129.0 million for excess tax benefits that arose directly from tax deductions related to equity compensation greater than amounts recognized for financial reporting. These excess stock compensation benefits will be credited to additional paid-in capital if realized. We use the "with-and-without" method, as described in ASC 740, for purposes of determining when excess tax benefits have been realized. In 2014, we recognized excess stock compensation benefits of $2.2 million and was recorded as additional paid-in capital and offset a portion our current tax liability. | |||||||||||||
Our largest deferred tax assets are our federal and state net operating loss carryforwards of $183.8 million and $7.3 million respectively. The federal net operating losses will begin to expire in 2020 and the state net operating losses will begin to expire in 2015. Of the total net operating loss carryforwards, approximately $129.2 million is attributable to deductions originating from the exercise of non-qualified employee stock options, the benefit of which will be credited to paid-in capital and the related deferred tax asset when realized. | |||||||||||||
Net operating losses generated by us are not currently subject to the carryforward limitation in Section 382 of the Internal Revenue Code (“Section 382 limitation”); however, $23.9 million of net operating losses generated by subsidiaries prior to their acquisition by us are subject to the Section 382 limitation. The limitation on these pre-acquisition net operating loss carryforwards will fully expire in 2031. A cumulative change in ownership among material shareholders, as defined in Section 382 of the Internal Revenue Code, during a three-year period may limit utilization of the federal net operating loss carryforwards. | |||||||||||||
Our subsidiary in Hyderabad, India benefited from a tax holiday granted under the Software Technology Parks of India program upon commencement of business operations in 2008 through March 31, 2011. During this holiday period we were required to pay a minimum alternative tax which was available to reduce our post-holiday tax liability. Effective July 8, 2013, this subsidiary benefits from a tax holiday under the Special Economic Zone program. This benefit applies to a portion of our operations in this location. The expiration of this tax holiday will increase our effective income tax rate. | |||||||||||||
Our subsidiary in Manila, Philippines currently benefits from income tax holiday incentives in the Philippines pursuant to the registrations with the Philippine Economic Zone Authority, or PEZA. Under such PEZA registrations, the income tax holiday of our PEZA-registered project in the Philippines expires in 2015. The expiration of this tax holiday will increase our effective income tax rate. | |||||||||||||
No provision has been made for U.S federal and state income taxes on the undistributed earnings of approximately $3.5 million relating to our foreign subsidiaries as such earnings are expected to be reinvested and are considered permanent in duration. If these earnings were ultimately distributed to the U.S. in the form of dividends or otherwise, or if the shares of the subsidiaries were sold or transferred, we would likely be subject to additional U.S. income taxes, net of the impact of any available foreign tax credits. It is not practicable to estimate the additional income taxes related to permanently reinvested earnings in the subsidiaries. | |||||||||||||
Uncertain Tax Positions | |||||||||||||
At December 31, 2014 and 2013, we had no unrecognized tax benefits. Our policy is to include interest and penalties related to unrecognized tax benefits in income tax expense, and as of December 31, 2014 and 2013, there were no accrued interest and penalties. | |||||||||||||
We file consolidated and separate tax returns in the U.S. federal jurisdiction and five foreign jurisdictions. We are no longer subject to U.S. federal income tax examinations for years before 2011 and are no longer subject to state and local income tax examinations by tax authorities for years before 2010. However, net operating losses from all years continue to be subject to examinations and adjustments for at least three years following the year in which the attributes are used. We are not currently under audit for federal, state or any foreign jurisdictions. | |||||||||||||
The Company plans to file amended 2013 and 2012 tax returns for selected states to correct certain items that were improperly deducted as detected by the Company subsequent to the initial filings. The primary effect of the amended returns will not result in a current tax liability and will reduce the Company’s NOL deferred tax asset by approximately $1.0 million. The Company’s deferred tax balances presented above have been adjusted for the effects of the planned amended returns. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans |
In 1998, our board of directors approved a defined contribution plan that provides retirement benefits under the provisions of Section 401(k) of the Internal Revenue Code. Our 401(k) Plan (“Plan”) covers substantially all employees who meet a minimum service requirement. Under the Plan, we can elect to make voluntary contributions. Contributions of $1.3 million, $0.9 million and $0.9 million were made by us for the years ended December 31, 2014, 2013 and 2012, respectively. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
The Company records certain financial liabilities at fair value on a recurring basis. The Company determines fair values based on the price it would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. | ||||||||||||||||
The prescribed fair value hierarchy and related valuation methodologies are as follows: | ||||||||||||||||
Level 1 | — | Inputs are quoted prices in active markets for identical assets or liabilities. | ||||||||||||||
Level 2 | — | Inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. | ||||||||||||||
Level 3 | — | Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. | ||||||||||||||
The categorization of an asset or liability within the fair value hierarchy is based on the inputs described above and does not necessarily correspond to the Company’s perceived risk of that asset or liability. Moreover, the methods used by the Company may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments and non-financial assets and liabilities could result in a different fair value measurement at the reporting date. | ||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||
Contingent consideration obligations: The fair value of contingent consideration obligations is estimated using a probability weighted discount model on the achievement of the conditions upon which the contingent obligation is dependent. The probability of achieving the specified conditions is assessed by applying a Monte Carlo weighted-average model. Inputs into the valuation model include a discount rate specific to the acquired entity, a measure of the estimated volatility and the risk free rate of return. There were no changes in our valuation methodology during the years ended December 31, 2014 and 2013. | ||||||||||||||||
Significant unobservable inputs used in the contingent consideration fair value measurements included the following at December 31: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Discount rates | 22.5 - 64.0% | 23.3 - 27.2% | ||||||||||||||
Volatility rates | 45.0 - 48.0% | 58.00% | ||||||||||||||
Risk free rate of return | 0.1% - 0.2% | 0.10% | ||||||||||||||
In addition to the inputs described above, the fair value estimates consider the projected future operating and financial results for the factor upon which the respective contingent obligation is dependent. The fair value estimates are generally sensitive to changes in these projections. We develop the projected future operating and financial results based on analysis of historical results, market conditions and the expected impact of anticipated changes in our overall business and/or product strategies. | ||||||||||||||||
The following table discloses the liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013: | ||||||||||||||||
Fair value at December 31, 2014 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Contingent consideration related to the acquisition of: | ||||||||||||||||
Active Building | $ | 1,566 | $ | — | $ | — | $ | 1,566 | ||||||||
MyBuilding | 248 | — | — | 248 | ||||||||||||
InstaManager | 2,335 | — | — | 2,335 | ||||||||||||
VMM | 1 | — | — | 1 | ||||||||||||
$ | 4,150 | $ | — | $ | — | $ | 4,150 | |||||||||
Fair value at December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Contingent consideration related to the acquisition of: | ||||||||||||||||
Senior Living | $ | 113 | $ | — | $ | — | $ | 113 | ||||||||
Active Building | 1,366 | — | — | 1,366 | ||||||||||||
MyBuilding | 348 | — | — | 348 | ||||||||||||
$ | 1,827 | $ | — | $ | — | $ | 1,827 | |||||||||
There were no assets measured at fair value on a recurring basis at December 31, 2014 and 2013. There were no transfers between Level 1 and Level 2, or between Level 2 and Level 3 measurements during the years ended December 31, 2014 and 2013. | ||||||||||||||||
The changes in the fair value of Level 3 measurements for the reporting periods are as follows: | ||||||||||||||||
(in thousands) | ||||||||||||||||
Balance, January 1, 2012 | $ | 364 | ||||||||||||||
Initial contingent consideration | 1,614 | |||||||||||||||
Net gain on change in fair value | (151 | ) | ||||||||||||||
Balance, December 31, 2013 | 1,827 | |||||||||||||||
Initial contingent consideration | 2,939 | |||||||||||||||
Settlements through cash payments | (229 | ) | ||||||||||||||
Net gain on change in fair value | (387 | ) | ||||||||||||||
Balance, December 31, 2014 | $ | 4,150 | ||||||||||||||
Net gains or losses on the change in the fair value of the contingent consideration obligations are included in the general and administrative line in the accompanying Consolidated Statements of Operations. | ||||||||||||||||
There were no assets or liabilities measured at fair value on a non-recurring basis at December 31, 2014 or 2013. |
Related_Party
Related Party | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party | Related Party |
Beginning in 2012, Scott S. Ingraham began serving on our board of directors. He is an investor in Zuma Capital Greenville LLC ("ZCG"), which is a minority member of the parent entity from which we acquired certain assets relating to the LevelOne business in November 2010. Pursuant to the LevelOne acquisition agreement, we held back a portion of the purchase price for a period of time in order to ensure payment for any claims that arose post-acquisition, which amount, net of claims and adjustments, was paid in May 2012. ZCG's interest in this pay-out was approximately $0.2 million. Mr. Ingraham also serves on the Board of Trust Managers of Camden Property Trust, one of our larger customers. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (unaudited) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (unaudited) | Selected Quarterly Financial Data (unaudited) | |||||||||||||||||||||||||||||||
Three Months Ended, | ||||||||||||||||||||||||||||||||
31-Dec-14 | 30-Sep-14 | 30-Jun-14 | 31-Mar-14 | 31-Dec-13 | 30-Sep-13 | 30-Jun-13 | 31-Mar-13 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
On demand | $ | 101,261 | $ | 100,747 | $ | 91,606 | $ | 97,008 | $ | 92,081 | $ | 94,084 | $ | 90,825 | $ | 85,322 | ||||||||||||||||
On premise | 648 | 755 | 826 | 865 | 892 | 838 | 1,011 | 950 | ||||||||||||||||||||||||
Professional and other | 2,555 | 3,034 | 2,556 | 2,690 | 2,546 | 3,149 | 2,615 | 2,709 | ||||||||||||||||||||||||
Total revenue | 104,464 | 104,536 | 94,988 | 100,563 | 95,519 | 98,071 | 94,451 | 88,981 | ||||||||||||||||||||||||
Gross profit | 57,946 | 58,225 | 52,873 | 60,636 | 58,013 | 59,960 | 57,111 | 53,617 | ||||||||||||||||||||||||
Net (loss) income | 110 | (3,257 | ) | (6,291 | ) | (836 | ) | 2,178 | 12,886 | 4,610 | 1,018 | |||||||||||||||||||||
Net (loss) income per share: | ||||||||||||||||||||||||||||||||
Basic and Diluted | $ | 0 | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | 0.03 | $ | 0.17 | $ | 0.06 | $ | 0.01 | |||||||||||||
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
REALPAGE, INC. | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||
Description | Balance at | Additions | Deduction(1) | Balance at | |||||||||||||
Beginning | Charged to | End of | |||||||||||||||
of Year | Costs and | Year | |||||||||||||||
Expenses | |||||||||||||||||
Year ended December 31: | |||||||||||||||||
2012 | $ | 979 | $ | 1,794 | $ | (1,686 | ) | $ | 1,087 | ||||||||
2013 | 1,087 | 3,661 | (3,834 | ) | 914 | ||||||||||||
2014 | 914 | 3,676 | (2,227 | ) | 2,363 | ||||||||||||
(1) | Uncollectable accounts written off, net of recoveries. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation | |
The accompanying consolidated balance sheets as of December 31, 2014 and 2013 and the accompanying consolidated statements of operations, comprehensive (loss) income and cash flows for each of the three years ended December 31, 2014, 2013, and 2012 represent our financial position, results of operations and cash flows as of and for the periods then ended. The consolidated financial statements include the accounts of RealPage, Inc. and our wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. | ||
Segment and Geographic Information | Segment and Geographic Information | |
Our chief operating decision maker is our Chief Executive Officer, who reviews financial information presented on a company-wide basis. As a result, we determined that the Company has a single reporting segment and operating unit structure. | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires our management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include the allowance for doubtful accounts; the useful lives of intangible assets and the recoverability or impairment of tangible and intangible asset values; fair value measurements; purchase accounting allocations and contingent consideration; revenue and deferred revenue and related reserves; stock-based compensation and our effective income tax rate and the recoverability of deferred tax assets, which are based upon our expectations of future taxable income and allowable deductions. Actual results could differ from these estimates. | ||
Cash Equivalents | Cash Equivalents | |
We consider all highly liquid investments with a maturity date, when purchased, of three months or less to be cash equivalents. | ||
Concentrations of Credit Risk | Concentrations of Credit Risk | |
Our cash accounts are maintained at various financial institutions and may, from time to time, exceed federally insured limits. The Company has not experienced any losses in such accounts. | ||
Concentrations of credit risk with respect to accounts receivable result from substantially all of our customers being in the multifamily rental housing market. Our customers, however, are dispersed across different geographic areas. We do not require collateral from customers. We maintain an allowance for losses based upon the expected collectability of accounts receivable. Accounts receivable are written off upon determination of non-collectability following established Company policies based on the aging from the accounts receivable invoice date. | ||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |
Financial assets and liabilities with carrying amounts approximating fair value include cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses and other current liabilities. The carrying amount of these financial assets and liabilities approximates fair value because of their short maturities. The carrying amount of our other long-term liabilities approximates their fair value. | ||
Fair Value Measurements | Fair Value Measurements | |
We measure certain financial assets and liabilities at fair value pursuant to a fair value hierarchy based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. See additional discussion of our fair value measurements at Footnote 14. | ||
Accounts Receivable | Accounts Receivable | |
For several of our solutions, we invoice customers prior to the period in which service is provided. Accounts receivable represent trade receivables from customers when we have invoiced for software solutions and/or services and we have not yet received payment. We present accounts receivable net of an allowance for doubtful accounts. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments, or the customer canceling prior to the service being rendered. As a result, a portion of our allowance is for services not yet rendered and, therefore, is classified as an offset to deferred revenue, which does not have an effect on the statement of operations. In evaluating the sufficiency of the allowance for doubtful accounts we consider the current financial condition of the customer, the specific details of the customer account, the age of the outstanding balance, the current economic environment and historical credit trends. Any change in the assumptions used in analyzing a specific account receivable might result in an additional allowance for doubtful accounts being recognized in the period in which the change occurs. For certain transactions, we have met the requirements to recognize income in advance of physically invoicing the customer. In these instances, we record unbilled receivables for the amount that will be due from the customer upon invoicing. | ||
Property, Equipment and Software | Property, Equipment and Software | |
Property, equipment and software are recorded at cost less accumulated depreciation and amortization, which are computed using the straight-line method over the following estimated useful lives: | ||
Leasehold improvements | 1-10 years | |
Data processing and communications equipment | 1-10 years | |
Furniture, fixtures and other equipment | 1- 5 years | |
Software | 1- 5 years | |
Software includes purchased software and internally developed software. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful lives of the assets. Gains and losses from asset disposals are classified as general and administrative expenses in our statement of operations. | ||
Business Combinations | Business Combinations | |
When we acquire businesses, we allocate the total consideration paid to the fair value of the tangible assets, liabilities and identifiable intangible assets acquired. Any residual purchase consideration is recorded as goodwill. The allocation of the purchase price requires our management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, in particular with respect to identified intangible assets. These estimates are based on the application of valuation models using historical experience and information obtained from the management of the acquired companies. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. In addition, unanticipated events and circumstances may occur which may affect the accuracy or validity of these estimates. We include the fair value of contingent consideration to be paid within the total consideration allocated to the fair value of the assets acquired and liabilities assumed. This requires us to make estimates regarding the fair value of the amounts to be paid. Additionally, we, at times, provide for the payment of additional cash consideration to the extent certain targets are achieved in the future. The fair value of this contingent consideration is based on significant estimates and is initially recorded as purchase price. To the extent the fair value changes prior to distribution, these changes are reflected in the Consolidated Statement of Operations. We expense acquisition-related costs as incurred rather than including as a component of purchase price. | ||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | |
We perform an impairment review of long-lived assets held and used whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors we consider important that could trigger an impairment review include, but are not limited to, significant under-performance relative to projected future operating results, significant changes in the manner of our use of the acquired assets or our overall business and/or product strategies. When we determine that the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more of these indicators, we determine the recoverability by comparing the carrying amount of the asset or asset group to net future undiscounted cash flows that the asset or assets are expected to generate. We would then recognize an impairment charge equal to the amount by which the carrying amount exceeds the fair market value of the asset or assets. | ||
Goodwill and Other Intangible Assets with Indefinite Lives | Goodwill and Other Intangible Assets with Indefinite Lives | |
We test goodwill and other intangible assets with indefinite lives for impairment separately on an annual basis in the fourth quarter of each year. Additionally, we will test goodwill and other intangible assets with indefinite lives in the interim if events and circumstances indicate that goodwill and other intangible assets with indefinite lives may be impaired. The events and circumstances that we consider include, but are not limited to, significant under-performance relative to projected future operating results and significant changes in our overall business and/or product strategies. | ||
If an event or circumstance occurs that would cause us to revise our estimates and assumptions used in analyzing the value of our goodwill and other intangible assets with indefinite lives, the revision could result in a non-cash impairment charge that could have a material impact on our financial results. We evaluate impairment of goodwill by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the two-step goodwill impairment test. The first step involves a comparison of the fair value of a reporting unit with its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, the second step involves a comparison of the implied fair value and carrying amount of the goodwill of that reporting unit to determine the impairment charge, if any. | ||
We quantitatively evaluate other intangible assets with indefinite lives by estimating the fair value of those assets based on estimated future earnings derived from the assets using the income approach model. For those intangible assets with indefinite lives that have been determined to be inseparable due to their interchangeable use, we have grouped these assets into single units of accounting for purposes of testing for impairment. If the carrying amount of the other intangible assets with indefinite lives exceeds the fair value, we would recognize an impairment loss equal to the excess of carrying value over fair value. | ||
Intangible Assets | Intangible Assets | |
Intangible assets consist of acquired developed product technologies, acquired customer relationships, vendor relationships and trade names. We record intangible assets at fair value and amortize those with finite lives over the shorter of the contractual life or the estimated useful life. We estimate the useful lives of acquired developed product technologies and customer relationships based on factors that include the planned use of each developed product technology and the expected pattern of future cash flows to be derived from each developed product technology and existing customer relationships. Estimated useful lives for finite-lived intangible assets consist of the following: | ||
Developed technologies | 3 years | |
Customer relationships | 1-10 years | |
Vendor relationships | 7 years | |
We include amortization of acquired developed product technologies in cost of revenue, amortization of acquired customer relationships in sales and marketing expenses and amortization of vendor relationships and non-competition agreements in general and administrative expenses in our consolidated statements of operations. | ||
Income Taxes | Income Taxes | |
Income taxes are provided based on the liability method, which results in income tax assets and liabilities arising from temporary differences. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. The liability method requires the effect of tax rate changes on current and accumulated deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized. | ||
We may recognize a tax benefit from uncertain tax positions only if it is at least more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon settlement with the taxing authorities. There were no identified tax benefits that were considered uncertain positions at December 31, 2014 and 2013. | ||
We establish valuation allowances when necessary to reduce deferred tax assets to the amounts expected to be realized. We evaluate the need for, and the adequacy of, valuation allowances based on the expected realization of our deferred tax assets. The factors used to assess the likelihood of realization include historical earnings, our latest forecast of taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. | ||
Revenue Recognition | Revenue Recognition | |
We derive our revenue from three primary sources: our on demand software solutions, our on premise software solutions and professional and other services. We commence revenue recognition when all of the following conditions are met: | ||
• | there is persuasive evidence of an arrangement; | |
• | the solution and/or service has been provided to the customer; | |
• | the collection of the fees is probable; and | |
• | the amount of fees to be paid by the customer is fixed or determinable. | |
If the fees are not fixed or determinable, we recognize revenues when these criteria are met, which could be as payments become due from customers, or when amounts owed are collected. Accordingly, this may materially affect the timing of our revenue recognition and results of operations. | ||
For multi-element arrangements that include multiple software solutions and/or services, we allocate arrangement consideration to all deliverables that have stand-alone value based on their relative selling prices. In such circumstances, we utilize the following hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: | ||
• | Vendor specific objective evidence ("VSOE"), if available. The price at which we sell the element in a separate stand-alone transaction; | |
• | Third-party evidence of selling price ("TPE"), if VSOE of selling price is not available. Evidence from us or other companies of the value of a largely interchangeable element in a transaction; and | |
• | Estimated selling price ("ESP"), if neither VSOE nor TPE of selling price is available. Our best estimate of the stand-alone selling price of an element in a transaction. | |
Our process for determining ESP for deliverables without VSOE or TPE considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. Key factors primarily considered in developing ESP include prices charged by us for similar offerings when sold separately, pricing policies and approvals from standard pricing and other business objectives. | ||
From time to time, we sell on demand software solutions with professional services. In such cases, as each element has stand-alone value, we allocate arrangement consideration based on our ESP of the on demand software solution and VSOE of the selling price of the professional services. | ||
Taxes collected from customers and remitted to governmental authorities are presented on a net basis. | ||
On Demand Revenue | ||
Our on demand revenue consists of license and subscription fees, transaction fees related to certain of our software-enabled value-added services and commissions derived from us selling certain risk mitigation services. | ||
License and subscription fees are comprised of a charge billed at the initial order date and monthly or annual subscription fees for accessing our on demand software solutions. The license fee billed at the initial order date is recognized as revenue on a straight-line basis over the longer of the contractual term or the period in which the customer is expected to benefit, which we consider to be three years. Recognition starts once the product has been activated. Revenue from monthly and annual subscription fees is recognized on a straight-line basis over the access period. | ||
We recognize revenue from transaction fees derived from certain of our software-enabled value-added services as the related services are performed. | ||
As part of our risk mitigation services to the rental housing industry, we act as an insurance agent and derive commission revenue from the sale of insurance products to individuals. The commissions are based upon a percentage of the premium that the insurance company charges to the policyholder and are subject to forfeiture in instances where a policyholder cancels prior to the end of the policy. If the policy is cancelled, our commissions are forfeited as a percent of the unearned premium. As a result, we recognize the commissions related to these services ratably over the policy term as the associated premiums are earned. Our contract with our underwriting partner provides for contingent commissions to be paid to us in accordance with the agreement. This agreement provides for a calculation that considers, on the policies sold by us, earned premiums less i) earned agent commissions; ii) a percent of premium retained by our underwriting partner; iii) incurred losses and iv) profit retained by our underwriting partner during the time period. Our estimate of contingent commission revenue considers historical loss experience on the policies sold by us. | ||
On Premise Revenue | ||
Revenue from our on premise software solutions is comprised of an annual term license, which includes maintenance and support. Customers can renew their annual term license for additional one-year terms at renewal price levels. We recognize the annual term license on a straight-line basis over the contract term. | ||
In addition, we have arrangements that include perpetual licenses with maintenance and other services to be provided over a fixed term. We allocate and defer revenue equivalent to the VSOE of fair value for the undelivered elements and recognize the difference between the total arrangement fee and the amount deferred for the undelivered elements as revenue. We have determined that we do not have VSOE of fair value for our customer support and professional services in these specific arrangements. As a result, the elements within our multiple-element sales agreements do not qualify for treatment as separate units of accounting. Accordingly, we account for fees received under multiple-element arrangements with customer support or other professional services as a single unit of accounting and recognize the entire arrangement ratably over the longer of the customer support period or the period during which professional services are rendered. | ||
Professional and Other Revenue | ||
Professional and other revenue is recognized as the services are rendered for time and material contracts. Training revenues are recognized after the services are performed. | ||
Deferred Revenue | Deferred Revenue | |
Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from our subscription service described above and is recognized as the revenue recognition criteria are met. For several of our solutions, we invoice our customers in annual, monthly or quarterly installments in advance of the commencement of the service period. Accordingly, the deferred revenue balance does not represent the total contract value of annual subscription agreements. | ||
Cost of Revenue | Cost of Revenue | |
Cost of revenue consists primarily of salaries and related personnel expenses of our operations and support personnel, including training and implementation services, expenses related to the operation of our data center, fees paid to third-party providers, allocations of facilities overhead costs and depreciation, amortization of acquired technologies and amortization of capitalized software. | ||
Customer Acquisition Costs | Customer Acquisition Costs | |
The costs of obtaining new customers are expensed as incurred. | ||
Stock-Based Compensation | Stock-Based Compensation | |
We record stock-based compensation expense for options granted to employees based on the estimated fair value for the awards. We estimate the fair value of time-based vesting awards using the Black-Scholes option pricing model on the date of grant and the associated expense is recognized over the requisite service period, which is generally the vesting period, on a straight-line basis. | ||
The fair value of market-based vesting awards is estimated using a discrete model based on multiple stock price-paths developed through the use of Monte Carlo simulation. Expense associated with market-based awards is recognized over the requisite service period on a straight-line basis. We estimate the requisite service period based on the median of the distribution of share price-paths on which the market condition is satisfied. | ||
At each stock option grant date, we utilize peer group data to calculate our expected volatility. Expected volatility is based on historical volatility rates of publicly traded peers combined with our historical volatility rates. Expected life is computed using the mid-point between the vesting period and contractual life of the options granted. The risk-free rate is based on the treasury yield rate with a maturity corresponding to the expected option life assumed at the grant date. Forfeiture rates are estimated using historical and expected future trends. | ||
Changes to the assumptions underlying the above models may have a significant impact on the underlying value of the stock options, which could have a material impact on our consolidated financial statements. | ||
We have granted stock options at exercise prices believed to be equal to the fair market value of our common stock, as of the grant date. The fair value of our time-based restricted stock awards is based on the closing price on the date of grant. | ||
Capitalized Product Development Costs | Capitalized Product Development Costs | |
We capitalize specific product development costs, including costs to develop software products or the software components of our solutions to be marketed to external users, as well as software programs to be used solely to meet our internal needs. The costs incurred in the preliminary stages of development related to research, project planning, training, maintenance and general and administrative activities, and overhead costs are expensed as incurred. The costs of relatively minor upgrades and enhancements to the software are also expensed as incurred. Once an application has reached the development stage, internal and external costs incurred in the performance of application development stage activities, including costs of materials, services and payroll and payroll-related costs for employees, are capitalized, if direct and incremental, until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. We also capitalize costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized costs are recorded as part of property and equipment. Internal use software is amortized on a straight-line basis over its estimated useful life, generally three to five years | ||
Advertising Expenses | Advertising Expenses | |
Advertising costs are expensed as incurred and totaled $15.1 million, $11.4 million and $10.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Recently Issued Accounting Standards | Recently Issued Accounting Standards | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers. This new standard will replace all current GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for us beginning January 1, 2017 and at that time, can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Estimated Useful Lives for Finite-lived Intangible Assets | Estimated useful lives for finite-lived intangible assets consist of the following: | ||||||||
Developed technologies | 3 years | ||||||||
Customer relationships | 1-10 years | ||||||||
Vendor relationships | 7 years | ||||||||
Estimated Useful Lives of Property, Equipment and Software | Property, equipment and software are recorded at cost less accumulated depreciation and amortization, which are computed using the straight-line method over the following estimated useful lives: | ||||||||
Leasehold improvements | 1-10 years | ||||||||
Data processing and communications equipment | 1-10 years | ||||||||
Furniture, fixtures and other equipment | 1- 5 years | ||||||||
Software | 1- 5 years | ||||||||
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Accrued compensation, payroll taxes and benefits | $ | 10,317 | $ | 8,145 | |||||
Current portion of liabilities related to acquisitions | 3,905 | 4,216 | |||||||
Other current liabilities | 8,683 | 10,761 | |||||||
Total accrued expenses and other current liabilities | $ | 22,905 | $ | 23,122 | |||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Pro Forma Financial Information | The following table presents unaudited pro forma results of operations for 2014 and 2013 as if the aforementioned acquisitions had occurred at the beginning of each period presented. The pro forma financial information as of December 31, 2014 and 2013, respectively, includes the business combination accounting effects resulting from these acquisitions including $0.8 million and $6.2 million of amortization charges from acquired intangible assets. We prepared the pro forma financial information for the combined entities for comparative purposes only, and it is not indicative of what actual results would have been if the acquisitions had taken place at the beginning of the periods presented, or of future results. | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Pro Forma | Pro Forma | ||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||
On demand | $ | 391,949 | $ | 369,362 | |||||||||||||||||
On premise | 3,094 | 3,691 | |||||||||||||||||||
Professional and other | 10,835 | 11,019 | |||||||||||||||||||
Total revenue | 405,878 | 384,072 | |||||||||||||||||||
Net (loss) income | $ | (10,746 | ) | $ | 15,980 | ||||||||||||||||
Net (loss) income per share: | |||||||||||||||||||||
Basic | $ | (0.14 | ) | $ | 0.21 | ||||||||||||||||
Diluted | $ | (0.14 | ) | $ | 0.21 | ||||||||||||||||
InstaManager, VMM, Notivus and Kigo | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Allocated Purchase Price Table | We preliminarily allocated the purchase price for InstaManager, VMM, Notivus and Kigo as follows: | ||||||||||||||||||||
InstaManager | VMM | Notivus | Kigo | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Intangible assets: | |||||||||||||||||||||
Developed product technologies | $ | 4,490 | $ | 671 | $ | 1,840 | $ | 2,570 | |||||||||||||
Customer relationships | — | 200 | — | 1,120 | |||||||||||||||||
Trade names | 527 | — | — | 602 | |||||||||||||||||
Goodwill | 4,135 | 358 | 2,852 | 32,996 | |||||||||||||||||
Deferred revenue | (33 | ) | — | (156 | ) | — | |||||||||||||||
Net deferred taxes | — | — | — | (495 | ) | ||||||||||||||||
Net other assets (liabilities) | 55 | — | (141 | ) | (547 | ) | |||||||||||||||
Total purchase price | $ | 9,174 | $ | 1,229 | $ | 4,395 | $ | 36,246 | |||||||||||||
SFL, RentSentinel, Windsor Compliance, MyBuilding and Active Building | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Allocated Purchase Price Table | We preliminarily allocated the purchase price for SFL, RentSentinel, Windsor Compliance, MyBuilding and Active Building as follows: | ||||||||||||||||||||
SFL | RentSentinel | Windsor Compliance | MyBuilding | Active Building | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Intangible assets: | |||||||||||||||||||||
Developed product technologies | $ | 1,406 | $ | 4,238 | $ | — | $ | 1,450 | $ | 3,850 | |||||||||||
Customer relationships | 161 | 2,390 | 1,230 | 1,000 | 2,650 | ||||||||||||||||
Trade names | — | — | — | 328 | 597 | ||||||||||||||||
Goodwill | 1,035 | 3,633 | 1,302 | 5,043 | 7,198 | ||||||||||||||||
Deferred revenue | — | (304 | ) | (107 | ) | (258 | ) | — | |||||||||||||
Net deferred taxes | — | 226 | — | (813 | ) | — | |||||||||||||||
Net other assets | 88 | 313 | 226 | 111 | 76 | ||||||||||||||||
Total purchase price, net of cash acquired | $ | 2,690 | $ | 10,496 | $ | 2,651 | $ | 6,861 | $ | 14,371 | |||||||||||
RMO and Vigilan | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Allocated Purchase Price Table | We allocated the purchase price for RMO and Vigilan as follows: | ||||||||||||||||||||
RMO | Vigilan | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Intangible assets: | |||||||||||||||||||||
Developed product technologies | $ | 2,460 | $ | 1,430 | |||||||||||||||||
Customer relationships | 1,770 | 1,150 | |||||||||||||||||||
Goodwill | 3,439 | 2,454 | |||||||||||||||||||
Net deferred taxes | (1,502 | ) | — | ||||||||||||||||||
Net other assets | (410 | ) | (34 | ) | |||||||||||||||||
Total purchase price, net of cash acquired | $ | 5,757 | $ | 5,000 | |||||||||||||||||
Property_Equipment_and_Softwar1
Property, Equipment and Software (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Components of Property, Equipment and Software | Property, equipment and software consist of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Leasehold improvements | $ | 22,943 | $ | 18,756 | |||||
Data processing and communications equipment | 59,390 | 47,719 | |||||||
Furniture, fixtures and other equipment | 16,254 | 11,266 | |||||||
Software | 51,915 | 36,750 | |||||||
150,502 | 114,491 | ||||||||
Less: Accumulated depreciation and amortization | (77,886 | ) | (59,716 | ) | |||||
Property, equipment and software, net | $ | 72,616 | $ | 54,775 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Change in Carrying Amount of Goodwill | The change in the carrying amount of goodwill is as follows: | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 134,025 | ||||||||||||||||||||||||
Goodwill acquired | 18,211 | |||||||||||||||||||||||||
Other | 186 | |||||||||||||||||||||||||
Balance at December 31, 2013 | 152,422 | |||||||||||||||||||||||||
Goodwill acquired | 40,341 | |||||||||||||||||||||||||
Other | 615 | |||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 193,378 | ||||||||||||||||||||||||
Other Intangible Assets | Other intangible assets consisted of the following at December 31, 2014 and 2013: | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||
Weighted Average Amortization | Carrying | Accumulated | Net | Carrying | Accumulated | Net | ||||||||||||||||||||
Period | Amount | Amortization | Amount | Amortization | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||||||||||
Developed technologies | 3.2 years | $ | 55,212 | $ | (39,343 | ) | $ | 15,869 | $ | 45,014 | $ | (29,952 | ) | $ | 15,062 | |||||||||||
Customer relationships | 9.0 years | 86,753 | (44,264 | ) | 42,489 | 85,823 | (33,503 | ) | 52,320 | |||||||||||||||||
Vendor relationships | 4.2 years | 5,650 | (5,273 | ) | 377 | 5,650 | (4,709 | ) | 941 | |||||||||||||||||
Total finite-lived intangible assets | 6.7 years | 147,615 | (88,880 | ) | 58,735 | 136,487 | (68,164 | ) | 68,323 | |||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||||
Trade names | 41,350 | — | 41,350 | 40,492 | — | 40,492 | ||||||||||||||||||||
Total intangible assets | $ | 188,965 | $ | (88,880 | ) | $ | 100,085 | $ | 176,979 | $ | (68,164 | ) | $ | 108,815 | ||||||||||||
Estimated Amortization of Intangible Assets | As of December 31, 2014, the following table sets forth the estimated amortization of intangible assets for the years ending December 31: | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
2015 | $ | 18,296 | ||||||||||||||||||||||||
2016 | 13,961 | |||||||||||||||||||||||||
2017 | 8,236 | |||||||||||||||||||||||||
2018 | 5,981 | |||||||||||||||||||||||||
2019 | 5,095 | |||||||||||||||||||||||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Summary of Stock Option Transactions Under Equity Plan, Stock Incentive Plan, Multifamily Technology Solutions Plan and Board Plan | The following table summarizes stock option transactions under our Stock Incentive Plan, Equity Incentive Plan, Board Plan and MTS Plan: | ||||||||||||||||
Number of | Range of | Weighted | |||||||||||||||
Shares | Exercise | Average | |||||||||||||||
Prices | Exercise | ||||||||||||||||
Price | |||||||||||||||||
Balance, January 1, 2012 | 7,292,031 | $ | 0.91 | – | $ | 29.5 | $ | 9.95 | |||||||||
Granted | 1,641,470 | 17.67 | – | 24.64 | 20.09 | ||||||||||||
Exercised | (2,389,704 | ) | 0.91 | – | 27.18 | 5.05 | |||||||||||
Forfeited/cancelled | (684,154 | ) | 0.94 | – | 29.5 | 17.04 | |||||||||||
Expired | (1,030 | ) | 0.94 | – | 27.18 | 2.73 | |||||||||||
Balance, December 31, 2012 | 5,858,613 | 0.91 | – | 29.5 | 13.97 | ||||||||||||
Granted | 2,421,124 | 19.78 | – | 25.7 | 22.2 | ||||||||||||
Exercised | (1,556,865 | ) | 0.91 | – | 25.24 | 6.81 | |||||||||||
Forfeited/cancelled | (800,470 | ) | 4.28 | – | 29.5 | 18.71 | |||||||||||
Expired | (7,600 | ) | 24.03 | – | 24.64 | 24.35 | |||||||||||
Balance, December 31, 2013 | 5,914,802 | 0.91 | – | 29.5 | 18.56 | ||||||||||||
Granted | 1,934,031 | 15.19 | – | 21.54 | 17.68 | ||||||||||||
Exercised | (907,765 | ) | 0.91 | – | 21.6 | 10.92 | |||||||||||
Forfeited/cancelled | (1,336,894 | ) | 4.28 | – | 29.5 | 20.93 | |||||||||||
Expired | (37,286 | ) | 19.78 | – | 24.64 | 24.02 | |||||||||||
Balance, December 31, 2014 | 5,566,888 | 0.91 | – | 29.5 | 18.89 | ||||||||||||
Outstanding Stock Options, Vested and Expected to Vest, Non-Vested and Stock Options Currently Exercisable | The below table provides information regarding stock options fully vested and expected to vest outstanding and exercisable at December 31: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Options Fully Vested and Expected to Vest | Options Exercisable | Options Fully Vested and Expected to Vest | Options Exercisable | ||||||||||||||
Number of options | 5,545,427 | 2,455,134 | 5,864,340 | 1,984,472 | |||||||||||||
Weighted-average remaining contractual term (in years) | 7.7 | 6.6 | 7.9 | 6.6 | |||||||||||||
Weighted-average exercise price | $ | 18.88 | $ | 17.04 | $ | 18.53 | $ | 14.42 | |||||||||
Aggregate intrinsic value | $ | 22,012 | $ | 14,704 | $ | 32,023 | $ | 18,784 | |||||||||
Awards Granted Assumptions | The fair value of each stock option grant was estimated on the date of grant using the Black Scholes option-pricing model with the following weighted-average assumptions and resulting weighted-average fair value per share: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Risk-free interest rates | 1.30% | 1.30% | 1.00% | ||||||||||||||
Expected option life (in years) | 4.4 | 6 | 6 | ||||||||||||||
Forfeiture rate | —% | 0.90% | 0.80% | ||||||||||||||
Dividend yield | —% | —% | —% | ||||||||||||||
Expected volatility | 42.80% | 48.50% | 51.40% | ||||||||||||||
Weighted-average grant date fair value | $6.44 | $10.37 | $9.78 | ||||||||||||||
Summary of Time-Based Restricted Share Awards' Activity | A summary of time-based restricted stock awards’ activity is presented in the table below. | ||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | Average Grant-Date Fair Value | ||||||||||||||||
Non-vested shares at January 1, 2012 | 998,958 | $ | 24.54 | ||||||||||||||
Granted | 1,022,609 | 19.93 | |||||||||||||||
Vested | (426,675 | ) | 23.08 | ||||||||||||||
Forfeited/cancelled | (233,945 | ) | 23.34 | ||||||||||||||
Non-vested shares at December 31, 2012 | 1,360,947 | 21.58 | |||||||||||||||
Granted | 1,747,501 | 22.09 | |||||||||||||||
Vested | (712,434 | ) | 21.3 | ||||||||||||||
Forfeited/cancelled | (305,211 | ) | 21.58 | ||||||||||||||
Non-vested shares at December 31, 2013 | 2,090,803 | 22.1 | |||||||||||||||
Granted | 1,238,226 | 17.69 | |||||||||||||||
Vested | (1,101,143 | ) | 21.18 | ||||||||||||||
Forfeited/cancelled | (603,367 | ) | 20.36 | ||||||||||||||
Non-vested shares at December 31, 2014 | 1,624,519 | 20.01 | |||||||||||||||
Performance-Based Restricted Share Awards' Activity | A summary of performance-based restricted stock awards’ activity is presented in the table below. | ||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | Average Grant-Date Fair Value | ||||||||||||||||
Non-vested shares at January 1, 2012 | 533,587 | $ | 23.39 | ||||||||||||||
Granted | 270,000 | 22.93 | |||||||||||||||
Vested | (132,791 | ) | 12.87 | ||||||||||||||
Forfeited/cancelled | (395,539 | ) | 27.26 | ||||||||||||||
Non-vested shares at December 31, 2012 | 275,257 | 22.46 | |||||||||||||||
Granted | 100,000 | 21.6 | |||||||||||||||
Vested | (31,902 | ) | 17.99 | ||||||||||||||
Forfeited/cancelled | (273,355 | ) | 23.4 | ||||||||||||||
Non-vested shares at December 31, 2013 | 70,000 | 18.1 | |||||||||||||||
Granted | — | — | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited/cancelled | (70,000 | ) | 18.1 | ||||||||||||||
Non-vested shares at December 31, 2014 | — | — | |||||||||||||||
Market Based Restricted Stock Units Activity | A summary of performance-based restricted stock awards’ activity is presented in the table below. | ||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | Average Grant-Date Fair Value | ||||||||||||||||
Balance at December 31, 2013 | — | $ | — | ||||||||||||||
Granted | 520,000 | 11.26 | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited/cancelled | — | — | |||||||||||||||
Balance at December 31, 2014 | 520,000 | 11.26 | |||||||||||||||
Restricted Stock Unit Valuation Assumptions | The awards granted during 2014 were valued using the following assumptions: | ||||||||||||||||
Risk-free interest rates | 1.10% | ||||||||||||||||
Expected volatility | 43.60% |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Assets under Capital Lease | The assets under capital lease are as follows: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Software | $ | 1,977 | $ | 1,977 | ||||||||
Less: Accumulated amortization | (1,110 | ) | (565 | ) | ||||||||
Assets under capital lease, net | $ | 867 | $ | 1,412 | ||||||||
Future Minimum Rental Payments for Capital Leases | The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of December 31, 2014 are as follows: | |||||||||||
(in thousands) | ||||||||||||
2015 | $ | 588 | ||||||||||
2016 | 294 | |||||||||||
Thereafter | — | |||||||||||
Total minimum lease payments | 882 | |||||||||||
Less amount representing average interest of 2.2% | (15 | ) | ||||||||||
867 | ||||||||||||
Less current portion | (575 | ) | ||||||||||
Long-term portion | $ | 292 | ||||||||||
Future Minimum Rental Payments for Operating Leases | Minimum annual rental commitments under non-cancellable operating leases and total minimum rentals to be received under non-cancellable subleases as were as follows at December 31, 2014: | |||||||||||
Minimum Lease Commitments | Sublease Income | Net Lease Commitments | ||||||||||
(in thousands) | ||||||||||||
2015 | $ | 11,838 | $ | 201 | $ | 11,637 | ||||||
2016 | 9,495 | 99 | 9,396 | |||||||||
2017 | 4,618 | 74 | 4,544 | |||||||||
2018 | 4,014 | — | 4,014 | |||||||||
2019 | 3,460 | — | 3,460 | |||||||||
Thereafter | 1,233 | — | 1,233 | |||||||||
$ | 34,658 | $ | 374 | $ | 34,284 | |||||||
Net_Loss_Income_Per_Share_Tabl
Net (Loss) Income Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table presents the calculation of basic and diluted net (loss) income per share attributable to common stockholders: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Numerator: | |||||||||||||
Net (loss) income | $ | (10,274 | ) | $ | 20,692 | $ | 5,183 | ||||||
Denominator: | |||||||||||||
Basic: | |||||||||||||
Weighted average common shares used in computing basic net (loss) income per share | 76,991 | 74,962 | 71,838 | ||||||||||
Diluted: | |||||||||||||
Weighted average common shares used in computing basic net (loss) income per share | 76,991 | 74,962 | 71,838 | ||||||||||
Add weighted average effect of dilutive securities: | |||||||||||||
Stock options and restricted stock | — | 1,225 | 2,164 | ||||||||||
Weighted average common shares used in computing diluted net (loss) income per share | 76,991 | 76,187 | 74,002 | ||||||||||
Net (loss) income per common share: | |||||||||||||
Basic | $ | (0.13 | ) | $ | 0.28 | $ | 0.07 | ||||||
Diluted | $ | (0.13 | ) | $ | 0.27 | $ | 0.07 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Domestic and Foreign Components of Income (Loss) before Provision for Income Taxes | The domestic and foreign components of (loss) income before provision for income taxes were as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Domestic | $ | (18,768 | ) | $ | 19,230 | $ | 9,151 | ||||||
Foreign | 2,161 | 1,252 | 251 | ||||||||||
Total | $ | (16,607 | ) | $ | 20,482 | $ | 9,402 | ||||||
(Benefit) Provision for Income Taxes | Our (benefit) provision for income taxes consisted of the following components: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 437 | 1,886 | 1,568 | ||||||||||
Foreign | 550 | 421 | 27 | ||||||||||
Total current taxes | 987 | 2,307 | 1,595 | ||||||||||
Deferred: | |||||||||||||
Federal | (6,611 | ) | (1,832 | ) | 3,192 | ||||||||
State | (460 | ) | (619 | ) | (574 | ) | |||||||
Foreign | (249 | ) | (66 | ) | 6 | ||||||||
Total deferred taxes | (7,320 | ) | (2,517 | ) | 2,624 | ||||||||
Total income tax (benefit) provision | $ | (6,333 | ) | $ | (210 | ) | $ | 4,219 | |||||
Reconciliation of Income Tax (Benefit) Expense Computed at Federal Statutory Tax Rate to Actual Income Tax (Benefit) Expense | The reconciliation of our income tax (benefit) expense computed at the U.S. federal statutory tax rate to the actual income tax (benefit) expense is as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Expense derived by applying the Federal income tax rate to (loss) income before taxes | $ | (5,813 | ) | $ | 7,169 | $ | 3,291 | ||||||
State income tax, net of federal benefit | (177 | ) | 607 | 445 | |||||||||
Foreign income tax | (477 | ) | (170 | ) | (55 | ) | |||||||
Change in valuation allowance | — | (9,087 | ) | — | |||||||||
Benefit of assets not previously recognized | (516 | ) | — | — | |||||||||
Nondeductible expenses | 454 | 644 | 612 | ||||||||||
Fair value adjustment on stock acquisition | (28 | ) | 487 | (251 | ) | ||||||||
Stock-based compensation | 223 | 139 | 171 | ||||||||||
Other | 1 | 1 | 6 | ||||||||||
$ | (6,333 | ) | $ | (210 | ) | $ | 4,219 | ||||||
Components of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Reserves, deferred revenue and accrued liabilities | $ | 6,392 | $ | 6,303 | |||||||||
Stock-based compensation | 12,238 | 10,873 | |||||||||||
Net operating loss carryforwards | 22,348 | 16,106 | |||||||||||
Total gross deferred tax assets | 40,978 | 33,282 | |||||||||||
Deferred tax asset valuation allowance | — | (43 | ) | ||||||||||
Total deferred tax assets | 40,978 | 33,239 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Property, equipment and software | (8,217 | ) | (5,408 | ) | |||||||||
Other | (2,459 | ) | (2,055 | ) | |||||||||
Intangible assets | (21,965 | ) | (23,871 | ) | |||||||||
Total deferred tax liabilities | (32,641 | ) | (31,334 | ) | |||||||||
Net deferred tax assets | $ | 8,337 | $ | 1,905 | |||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Fair value hierarchy and related valuation methodologies | The prescribed fair value hierarchy and related valuation methodologies are as follows: | |||||||||||||||
Level 1 | — | Inputs are quoted prices in active markets for identical assets or liabilities. | ||||||||||||||
Level 2 | — | Inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. | ||||||||||||||
Level 3 | — | Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. | ||||||||||||||
Schedule of liabilities measured at fair value on a recurring basis | The following table discloses the liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013: | |||||||||||||||
Fair value at December 31, 2014 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Contingent consideration related to the acquisition of: | ||||||||||||||||
Active Building | $ | 1,566 | $ | — | $ | — | $ | 1,566 | ||||||||
MyBuilding | 248 | — | — | 248 | ||||||||||||
InstaManager | 2,335 | — | — | 2,335 | ||||||||||||
VMM | 1 | — | — | 1 | ||||||||||||
$ | 4,150 | $ | — | $ | — | $ | 4,150 | |||||||||
Fair value at December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Contingent consideration related to the acquisition of: | ||||||||||||||||
Senior Living | $ | 113 | $ | — | $ | — | $ | 113 | ||||||||
Active Building | 1,366 | — | — | 1,366 | ||||||||||||
MyBuilding | 348 | — | — | 348 | ||||||||||||
$ | 1,827 | $ | — | $ | — | $ | 1,827 | |||||||||
Changes in Level 3 fair value measurements | The changes in the fair value of Level 3 measurements for the reporting periods are as follows: | |||||||||||||||
(in thousands) | ||||||||||||||||
Balance, January 1, 2012 | $ | 364 | ||||||||||||||
Initial contingent consideration | 1,614 | |||||||||||||||
Net gain on change in fair value | (151 | ) | ||||||||||||||
Balance, December 31, 2013 | 1,827 | |||||||||||||||
Initial contingent consideration | 2,939 | |||||||||||||||
Settlements through cash payments | (229 | ) | ||||||||||||||
Net gain on change in fair value | (387 | ) | ||||||||||||||
Balance, December 31, 2014 | $ | 4,150 | ||||||||||||||
Recurring | ||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||
Schedule of valuation techniques | Significant unobservable inputs used in the contingent consideration fair value measurements included the following at December 31: | |||||||||||||||
2014 | 2013 | |||||||||||||||
Discount rates | 22.5 - 64.0% | 23.3 - 27.2% | ||||||||||||||
Volatility rates | 45.0 - 48.0% | 58.00% | ||||||||||||||
Risk free rate of return | 0.1% - 0.2% | 0.10% |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data | ||||||||||||||||||||||||||||||||
Three Months Ended, | ||||||||||||||||||||||||||||||||
31-Dec-14 | 30-Sep-14 | 30-Jun-14 | 31-Mar-14 | 31-Dec-13 | 30-Sep-13 | 30-Jun-13 | 31-Mar-13 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
On demand | $ | 101,261 | $ | 100,747 | $ | 91,606 | $ | 97,008 | $ | 92,081 | $ | 94,084 | $ | 90,825 | $ | 85,322 | ||||||||||||||||
On premise | 648 | 755 | 826 | 865 | 892 | 838 | 1,011 | 950 | ||||||||||||||||||||||||
Professional and other | 2,555 | 3,034 | 2,556 | 2,690 | 2,546 | 3,149 | 2,615 | 2,709 | ||||||||||||||||||||||||
Total revenue | 104,464 | 104,536 | 94,988 | 100,563 | 95,519 | 98,071 | 94,451 | 88,981 | ||||||||||||||||||||||||
Gross profit | 57,946 | 58,225 | 52,873 | 60,636 | 58,013 | 59,960 | 57,111 | 53,617 | ||||||||||||||||||||||||
Net (loss) income | 110 | (3,257 | ) | (6,291 | ) | (836 | ) | 2,178 | 12,886 | 4,610 | 1,018 | |||||||||||||||||||||
Net (loss) income per share: | ||||||||||||||||||||||||||||||||
Basic and Diluted | $ | 0 | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | 0.03 | $ | 0.17 | $ | 0.06 | $ | 0.01 | |||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Entity | Customer | Customer | Customer | ||||||||
Entity | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Operating income (loss) | ($15,503,000) | $21,559,000 | $11,448,000 | ||||||||
Net (loss) income | 110,000 | -3,257,000 | -6,291,000 | -836,000 | 2,178,000 | 12,886,000 | 4,610,000 | 1,018,000 | -10,274,000 | 20,692,000 | 5,183,000 |
Number of customer accounted for 10% or more of revenue | 0 | 0 | 0 | ||||||||
Bed debt expense | 1,500,000 | 2,100,000 | 800,000 | ||||||||
Primary sources of revenue | 3 | 3 | |||||||||
Revenue recognition access period | 3 years | ||||||||||
Renewal of additional term license | 1 year | ||||||||||
Advertising costs | 15,100,000 | 11,400,000 | 10,200,000 | ||||||||
Minimum | Software and Software Development Costs | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Property plant and equipment, useful life | 3 years | ||||||||||
Maximum | Software and Software Development Costs | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Property plant and equipment, useful life | 5 years | ||||||||||
Revised Estimated Useful Lives of Data Processing Equipment and Internally Developed Software | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Operating income (loss) | 3,500,000 | ||||||||||
Net (loss) income | 1,900,000 | ||||||||||
Increase in basic and diluted earnings per share | $0.03 | ||||||||||
Length of Expected Customer Benefit of License Fees Billed at Initial Order Date | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Operating income (loss) | 2,800,000 | ||||||||||
Net (loss) income | 1,500,000 | ||||||||||
Increase in basic and diluted earnings per share | $0.02 | ||||||||||
North America | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Net long-lived assets | 66,500,000 | 51,500,000 | 66,500,000 | 51,500,000 | |||||||
International Subsidiaries | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Net long-lived assets | 6,100,000 | 3,300,000 | 6,100,000 | 3,300,000 | |||||||
Revenues | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Percentage of revenues | 4.90% | 3.40% | 2.20% | ||||||||
Trade names | |||||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||||
Impairment of indefinite lived asset | $300,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Estimated Useful Lives of Property, Equipment and Software (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Leasehold improvements | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life | 1 year |
Leasehold improvements | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life | 10 years |
Data processing and communications equipment | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life | 1 year |
Data processing and communications equipment | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life | 10 years |
Furniture, fixtures and other equipment | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life | 1 year |
Furniture, fixtures and other equipment | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life | 5 years |
Software | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life | 4 years 3 months 18 days |
Software | Minimum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life | 1 year |
Software | Maximum | |
Property Plant and Equipment Estimated Useful Lives [Line Items] | |
Property plant and equipment, useful life | 5 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Estimated Useful Lives of Finite Lived Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 6 years 8 months 12 days |
Developed technologies | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 3 years 2 months 12 days |
Developed technologies | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 3 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 9 years |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 1 year |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 10 years |
Vendor relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 4 years 2 months 12 days |
Vendor relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of finite-lived intangible asset | 7 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Accrued compensation, payroll taxes and benefits | $10,317 | $8,145 |
Current portion of liabilities related to acquisitions | 3,905 | 4,216 |
Other current liabilities | 8,683 | 10,761 |
Total accrued expenses and other current liabilities | $22,905 | $23,122 |
Acquisitions_2014_Acquisitions
Acquisitions - 2014 Acquisitions (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Mar. 31, 2014 | 31-May-14 | Jun. 30, 2014 | |
Business Acquisition [Line Items] | |||||||
Gain (loss) due to changes in contingent cash payments | $173,000 | $1,284,000 | ($722,000) | ||||
InstaManager | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, purchase price | 9,200,000 | ||||||
Business acquisition, cash paid | 6,000,000 | ||||||
Business acquisition, deferred cash payment amount | 1,000,000 | ||||||
Length of time after acquisition date of deferred cash payment to be made | 2 years | ||||||
Business acquisition, additional future cash payment amount | 7,000,000 | ||||||
Deferred cash payment, fair value | 800,000 | ||||||
Liability for the estimated cash payment | 2,300,000 | 2,400,000 | |||||
Gain (loss) due to changes in contingent cash payments | 100,000 | ||||||
Direct acquisition costs | 100,000 | ||||||
InstaManager | Developed product technologies | |||||||
Business Acquisition [Line Items] | |||||||
Amortized useful life of acquired intangible assets | 3 years | ||||||
VMM | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, purchase price | 1,200,000 | ||||||
Business acquisition, cash paid | 1,000,000 | ||||||
Business acquisition, deferred cash payment amount | 200,000 | ||||||
Length of time after acquisition date of deferred cash payment to be made | 2 years | ||||||
Business acquisition, additional future cash payment amount | 2,000,000 | ||||||
Deferred cash payment, fair value | 200,000 | ||||||
Liability for the estimated cash payment | 100,000 | 100,000 | |||||
Gain (loss) due to changes in contingent cash payments | 100,000 | ||||||
Direct acquisition costs | 100,000 | ||||||
VMM | Developed product technologies | |||||||
Business Acquisition [Line Items] | |||||||
Amortized useful life of acquired intangible assets | 3 years | ||||||
VMM | Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Amortized useful life of acquired intangible assets | 5 years | ||||||
Notivus | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, purchase price | 4,400,000 | ||||||
Business acquisition, cash paid | 3,600,000 | ||||||
Business acquisition, deferred cash payment amount | 800,000 | ||||||
Length of time after acquisition date of deferred cash payment to be made | 2 years | ||||||
Deferred cash payment, fair value | 800,000 | ||||||
Direct acquisition costs | 100,000 | ||||||
Notivus | Developed product technologies | |||||||
Business Acquisition [Line Items] | |||||||
Amortized useful life of acquired intangible assets | 3 years | ||||||
Kigo | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, purchase price | 36,200,000 | ||||||
Business acquisition, cash paid | 30,700,000 | ||||||
Business acquisition, deferred cash payment amount | 5,500,000 | ||||||
Direct acquisition costs | $500,000 | ||||||
Kigo | Developed product technologies | |||||||
Business Acquisition [Line Items] | |||||||
Amortized useful life of acquired intangible assets | 3 years | ||||||
Kigo | Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Amortized useful life of acquired intangible assets | 10 years |
Acquisitions_2013_Acquisitions
Acquisitions - 2013 Acquisitions (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2013 | Mar. 31, 2013 | Oct. 31, 2013 | |
Business Acquisition [Line Items] | ||||||
Gain (loss) due to changes in contingent cash payments | $173,000 | $1,284,000 | ($722,000) | |||
Amortization of finite-lived intangible assets | 20,700,000 | 16,600,000 | 18,300,000 | |||
Seniors for Living, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, purchase price | 2,700,000 | |||||
Business acquisition, cash paid | 2,300,000 | |||||
First deferred payment period | 6 months | |||||
2nd deferred payment period | 12 months | |||||
Direct acquisition costs | 100,000 | |||||
Seniors for Living, Inc. | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Additional cash payment, deferred | 200,000 | |||||
Seniors for Living, Inc. | Developed product technologies | ||||||
Business Acquisition [Line Items] | ||||||
Amortized useful life of acquired intangible assets | 3 years | |||||
Seniors for Living, Inc. | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Amortized useful life of acquired intangible assets | 5 years | |||||
Rent Sentinel | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, purchase price | 10,500,000 | |||||
Business acquisition, cash paid | 7,600,000 | |||||
First deferred payment period | 12 months | |||||
2nd deferred payment period | 24 months | |||||
Direct acquisition costs | 100,000 | |||||
Shares issued in acquisition | 33,868 | 72,500 | ||||
Rent Sentinel | Developed product technologies | ||||||
Business Acquisition [Line Items] | ||||||
Amortized useful life of acquired intangible assets | 3 years | |||||
Rent Sentinel | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Amortized useful life of acquired intangible assets | 9 years | |||||
Windsor Compliance Services | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, purchase price | 2,700,000 | |||||
Business acquisition, cash paid | 1,300,000 | |||||
Additional cash payment, deferred | 1,000,000 | |||||
Additional cash payment, 2nd deferred payment | 500,000 | |||||
First deferred payment period | 12 months | |||||
2nd deferred payment period | 24 months | |||||
Contingent cash payment | 1,400,000 | |||||
Direct acquisition costs | 100,000 | |||||
Windsor Compliance Services | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Amortized useful life of acquired intangible assets | 10 years | |||||
MyBuilding Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, purchase price | 6,900,000 | |||||
Business acquisition, cash paid | 5,200,000 | |||||
Additional cash payment, deferred | 1,500,000 | |||||
Length of time after acquisition date of deferred cash payment to be made | 2 years | |||||
Additional cash payment, 2nd deferred payment | 1,100,000 | |||||
Business acquisition, deferred cash payment amount | 700,000 | |||||
Deferred cash payment, fair value | 1,400,000 | |||||
Contingent cash payment | 300,000 | |||||
Direct acquisition costs | 100,000 | |||||
Gain (loss) due to changes in contingent cash payments | 100,000 | |||||
MyBuilding Inc. | Developed product technologies | ||||||
Business Acquisition [Line Items] | ||||||
Amortized useful life of acquired intangible assets | 3 years | |||||
MyBuilding Inc. | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Amortized useful life of acquired intangible assets | 10 years | |||||
Active Building LLC | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, purchase price | 14,400,000 | |||||
Business acquisition, cash paid | 11,300,000 | |||||
Additional cash payment, deferred | 2,000,000 | |||||
Length of time after acquisition date of deferred cash payment to be made | 3 years | |||||
Additional cash payment, 2nd deferred payment | 6,500,000 | |||||
Business acquisition, deferred cash payment amount | 700,000 | |||||
Deferred cash payment, fair value | 1,700,000 | |||||
Contingent cash payment | 1,400,000 | 1,400,000 | ||||
Direct acquisition costs | 100,000 | |||||
Gain (loss) due to changes in contingent cash payments | 200,000 | |||||
Active Building LLC | Developed product technologies | ||||||
Business Acquisition [Line Items] | ||||||
Amortized useful life of acquired intangible assets | 3 years | |||||
Active Building LLC | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Amortized useful life of acquired intangible assets | 10 years | |||||
Acquisition-related Costs | Acquired Intangible Assets | ||||||
Business Acquisition [Line Items] | ||||||
Amortization of finite-lived intangible assets | 800,000 | 6,200,000 | ||||
Common Stock Issuable | Rent Sentinel | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued in acquisition | 36,250 | |||||
Number of tranches | 2 | |||||
Common Stock | Rent Sentinel | ||||||
Business Acquisition [Line Items] | ||||||
Fair value of common stock issued at acquisition | 1,500,000 | |||||
Fair value of contingent shares of common stock issued at acquisition | $1,400,000 |
Acquisitions_2012_Acquisitions
Acquisitions - 2012 Acquisitions (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2012 | Jul. 31, 2012 | |
Installment | |||||
Business Acquisition [Line Items] | |||||
Gain (loss) due to changes in contingent cash payments | $173,000 | $1,284,000 | ($722,000) | ||
Vigilan | |||||
Business Acquisition [Line Items] | |||||
First deferred payment period | 12 months | ||||
Business acquisition, purchase price | 5,000,000 | ||||
Business acquisition, cash paid | 4,000,000 | ||||
Number of deferred installments | 2 | ||||
2nd deferred payment period | 24 months | ||||
Direct acquisition costs | 100,000 | ||||
Adjustment to consideration transferred | 1,000,000 | ||||
Rent Mine Online | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, cash paid | 700,000 | 5,500,000 | |||
Direct acquisition costs | 100,000 | ||||
Payment of contingent consideration | -1,300,000 | ||||
Shares issued in acquisition | 22,000 | 300,000 | |||
Contingent cash payment | 200,000 | ||||
Fair value of common shares and conversion option | 300,000 | ||||
Adjustment to consideration transferred | 3,500,000 | ||||
Cash payment to settle remaining obligations | 600,000 | ||||
Rent Mine Online | Common Stock | |||||
Business Acquisition [Line Items] | |||||
Expense due to changes in the common shares and the conversion option | 0 | ||||
Rent Mine Online | Conversion Option | |||||
Business Acquisition [Line Items] | |||||
Expense due to changes in the common shares and the conversion option | 300,000 | ||||
Maximum | Vigilan | |||||
Business Acquisition [Line Items] | |||||
Additional cash payment, deferred | 500,000 | ||||
Maximum | Rent Mine Online | |||||
Business Acquisition [Line Items] | |||||
Additional cash payment, deferred | $3,500,000 | ||||
Developed product technologies | Vigilan | |||||
Business Acquisition [Line Items] | |||||
Amortized useful life of acquired intangible assets | 3 years | ||||
Developed product technologies | Rent Mine Online | |||||
Business Acquisition [Line Items] | |||||
Amortized useful life of acquired intangible assets | 3 years | ||||
Customer Relationships | Vigilan | |||||
Business Acquisition [Line Items] | |||||
Amortized useful life of acquired intangible assets | 10 years | ||||
Customer Relationships | Rent Mine Online | |||||
Business Acquisition [Line Items] | |||||
Amortized useful life of acquired intangible assets | 10 years |
Acquisitions_Allocated_Purchas
Acquisitions - Allocated Purchase Price Table (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2013 | Mar. 31, 2013 | Oct. 31, 2013 | Jul. 31, 2012 | Jan. 31, 2012 |
In Thousands, unless otherwise specified | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $193,378 | $152,422 | $134,025 | |||||
InstaManager | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 4,135 | |||||||
Deferred revenue | -33 | |||||||
Net deferred taxes | 0 | |||||||
Net other assets (liabilities) | 55 | |||||||
Total purchase price, net of cash acquired | 9,174 | |||||||
InstaManager | Tradenames | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 527 | |||||||
InstaManager | Developed product technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 4,490 | |||||||
InstaManager | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 0 | |||||||
VMM | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 358 | |||||||
Deferred revenue | 0 | |||||||
Net deferred taxes | 0 | |||||||
Net other assets (liabilities) | 0 | |||||||
Total purchase price, net of cash acquired | 1,229 | |||||||
VMM | Tradenames | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 0 | |||||||
VMM | Developed product technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 671 | |||||||
VMM | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 200 | |||||||
Notivus | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 2,852 | |||||||
Deferred revenue | -156 | |||||||
Net deferred taxes | 0 | |||||||
Net other assets (liabilities) | -141 | |||||||
Total purchase price, net of cash acquired | 4,395 | |||||||
Notivus | Tradenames | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 0 | |||||||
Notivus | Developed product technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 1,840 | |||||||
Notivus | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 0 | |||||||
Kigo | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 32,996 | |||||||
Deferred revenue | 0 | |||||||
Net deferred taxes | -495 | |||||||
Net other assets (liabilities) | -547 | |||||||
Total purchase price, net of cash acquired | 36,246 | |||||||
Kigo | Tradenames | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 602 | |||||||
Kigo | Developed product technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 2,570 | |||||||
Kigo | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 1,120 | |||||||
Seniors for Living, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 1,035 | |||||||
Deferred revenue | 0 | |||||||
Net deferred taxes | 0 | |||||||
Net other assets (liabilities) | 88 | |||||||
Total purchase price, net of cash acquired | 2,690 | |||||||
Seniors for Living, Inc. | Tradenames | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 0 | |||||||
Seniors for Living, Inc. | Developed product technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 1,406 | |||||||
Seniors for Living, Inc. | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 161 | |||||||
Rent Sentinel | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 3,633 | |||||||
Deferred revenue | -304 | |||||||
Net deferred taxes | 226 | |||||||
Net other assets (liabilities) | 313 | |||||||
Total purchase price, net of cash acquired | 10,496 | |||||||
Rent Sentinel | Tradenames | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 0 | |||||||
Rent Sentinel | Developed product technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 4,238 | |||||||
Rent Sentinel | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 2,390 | |||||||
Windsor Compliance Services | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 1,302 | |||||||
Deferred revenue | -107 | |||||||
Net deferred taxes | 0 | |||||||
Net other assets (liabilities) | 226 | |||||||
Total purchase price, net of cash acquired | 2,651 | |||||||
Windsor Compliance Services | Tradenames | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 0 | |||||||
Windsor Compliance Services | Developed product technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 0 | |||||||
Windsor Compliance Services | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 1,230 | |||||||
MyBuilding Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 5,043 | |||||||
Deferred revenue | -258 | |||||||
Net deferred taxes | -813 | |||||||
Net other assets (liabilities) | 111 | |||||||
Total purchase price, net of cash acquired | 6,861 | |||||||
MyBuilding Inc. | Tradenames | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 328 | |||||||
MyBuilding Inc. | Developed product technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 1,450 | |||||||
MyBuilding Inc. | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 1,000 | |||||||
Active Building | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 7,198 | |||||||
Deferred revenue | 0 | |||||||
Net deferred taxes | 0 | |||||||
Net other assets (liabilities) | 76 | |||||||
Total purchase price, net of cash acquired | 14,371 | |||||||
Active Building | Tradenames | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 597 | |||||||
Active Building | Developed product technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 3,850 | |||||||
Active Building | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 2,650 | |||||||
RMO | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 3,439 | |||||||
Net deferred taxes | -1,502 | |||||||
Net other assets (liabilities) | -410 | |||||||
Total purchase price, net of cash acquired | 5,757 | |||||||
RMO | Developed product technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 2,460 | |||||||
RMO | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 1,770 | |||||||
Vigilan | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 2,454 | |||||||
Net deferred taxes | 0 | |||||||
Net other assets (liabilities) | -34 | |||||||
Total purchase price, net of cash acquired | 5,000 | |||||||
Vigilan | Developed product technologies | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | 1,430 | |||||||
Vigilan | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible Assets | $1,150 |
Acquisitions_Pro_Forma_Financi
Acquisitions - Pro Forma Financial Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Revenue: | ||
On demand | $391,949 | $369,362 |
On premise | 3,094 | 3,691 |
Professional and other | 10,835 | 11,019 |
Total revenue | 405,878 | 384,072 |
Net income (loss) | ($10,746) | $15,980 |
Net (loss) income per share: | ||
Basic (in dollars per share) | ($0.14) | $0.21 |
Diluted (in dollars per share) | ($0.14) | $0.21 |
Property_Equipment_and_Softwar2
Property, Equipment and Software - Components of Property, Equipment and Software (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $150,502 | $114,491 |
Less: Accumulated depreciation and amortization | -77,886 | -59,716 |
Property, equipment and software, net | 72,616 | 54,775 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 22,943 | 18,756 |
Data processing and communications equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 59,390 | 47,719 |
Furniture, fixtures and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 16,254 | 11,266 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $51,915 | $36,750 |
Property_Equipment_and_Softwar3
Property, Equipment and Software - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense for property, equipment and software | $18.90 | $14.10 | $13 |
Carrying amount of capitalized development costs | 32.5 | 21.6 | |
Accumulated Amortization | 10.7 | 9 | |
Capitalization of software development costs | 10.9 | 7.6 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense for property, equipment and software | $1.70 | $1 | $1.20 |
Weighted-average useful life | 4 years 3 months 18 days |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Change in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Beginning balance | $152,422 | $134,025 |
Goodwill acquired | 40,341 | 18,211 |
Other | 615 | 186 |
Ending balance | $193,378 | $152,422 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Indefinite-lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 6 years 8 months 12 days | |
Finite-lived intangible assets, Carrying Amount | $147,615 | $136,487 |
Finite-lived intangible assets, Accumulated Amortization | -88,880 | -68,164 |
Finite-lived intangible assets, Net | 58,735 | 68,323 |
Total intangible assets, Carrying amount | 188,965 | 176,979 |
Total intangible assets, Net | 100,085 | 108,815 |
Trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Carrying Amount | 41,350 | 40,492 |
Developed product technologies | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 3 years 2 months 12 days | |
Finite-lived intangible assets, Carrying Amount | 55,212 | 45,014 |
Finite-lived intangible assets, Accumulated Amortization | -39,343 | -29,952 |
Finite-lived intangible assets, Net | 15,869 | 15,062 |
Customer Relationships | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 9 years | |
Finite-lived intangible assets, Carrying Amount | 86,753 | 85,823 |
Finite-lived intangible assets, Accumulated Amortization | -44,264 | -33,503 |
Finite-lived intangible assets, Net | 42,489 | 52,320 |
Vendor Relationships | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period | 4 years 2 months 12 days | |
Finite-lived intangible assets, Carrying Amount | 5,650 | 5,650 |
Finite-lived intangible assets, Accumulated Amortization | -5,273 | -4,709 |
Finite-lived intangible assets, Net | $377 | $941 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | |||
Payments to acquire domain names and other intangible assets | $260,000 | $927,000 | $3,375,000 |
Amortization of finite-lived intangible assets | 20,700,000 | 16,600,000 | 18,300,000 |
Domain Names and Other Intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Payments to acquire domain names and other intangible assets | 1,100,000 | 900,000 | |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of indefinite lived asset | $300,000 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - Estimated Amortization of Intangible Assets (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $18,296 |
2016 | 13,961 |
2017 | 8,236 |
2018 | 5,981 |
2019 | $5,095 |
Debt_Credit_Facility_Open_Sept
Debt - Credit Facility Open September 2014 (Details) (USD $) | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | ||||
Revolving line of credit facility borrowed | 25,000,000 | $20,000,000 | $0 | |
Revolving line of credit facility, available borrowing capacity | 180,000,000 | |||
Issuance of letters of credit outstanding, amount | 10,000,000 | |||
Unamortized debt issuance costs | 1,300,000 | 300,000 | ||
Additional borrowing capacity | 150,000,000 | |||
Interest coverage ratio | 3 | |||
Consolidated net coverage ratio following permitted acquisition | 3.5 | |||
Permitted Acquisition | ||||
Line of Credit Facility [Line Items] | ||||
Consolidated net coverage ratio following permitted acquisition | 3.75 | |||
Federal Funds Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Prime Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.00% | |||
Prime Rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate principal amount | 150,000,000 | 200,000,000 | ||
Consolidated net coverage ratio following permitted acquisition | 3.25 | |||
Revolving Credit Facility | LIBOR | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Revolving Credit Facility | LIBOR | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Revolving Credit Facility | Base Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Revolving Credit Facility | Base Rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Revolving Credit Facility | Federal Funds Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Revolving Credit Facility | One-Month LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Standby Letters of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Sub limit for issuance of letters of credit | 10,000,000 | 10,000,000 | ||
Swingline Loan | ||||
Line of Credit Facility [Line Items] | ||||
Sub limit for issuance of letters of credit | 20,000,000 |
Debt_Previous_Credit_Facility_
Debt - Previous Credit Facility (Detail) (USD $) | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | 31-May-14 | Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | 50,000,000 | $75,000,000 | |||
Value of equipment used by employees | 2,500,000 | ||||
Aggregate permitted acquisition limit | 150,000,000 | ||||
Additional borrowing capacity under certain conditions | 100,000,000 | ||||
Revolving line of credit facility borrowed | 25,000,000 | 20,000,000 | 0 | ||
Standby Letters of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Sub limit for issuance of letters of credit | 10,000,000 | 10,000,000 | |||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Aggregate principal amount | 150,000,000 | 200,000,000 | |||
Federal Funds Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Federal Funds Rate | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Three-Month LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Three-Month LIBOR | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Three-Month LIBOR | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
Prime Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.00% | ||||
Prime Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.25% |
Stockbased_Compensation_Additi
Stock-based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 11 Months Ended | 0 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Dec. 31, 2014 | Aug. 24, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $37.10 | $29.70 | $18.20 | |||
Tax benefit related to stock-based compensation expense | 14 | 11.2 | 6.8 | |||
Unrecognized compensation cost | 57.1 | 57.1 | ||||
Unrecognized non-vested stock awards recognition period | 2 years | |||||
Cash proceeds from stock-based compensation arrangements | 9.9 | 10.6 | 12.1 | |||
Aggregate intrinsic value of stock options | $8.50 | $23.30 | $42.70 | |||
Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options vesting period | 4 years | 3 years 9 months | 3 years | |||
Expiration period from grant date | 10 years | |||||
Percentage of stock options to be vested | 75.00% | |||||
Percentage of stock options to be vested during remaining period | 25.00% | |||||
Time Based Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options vesting period | 4 years | 3 years | ||||
Performance Based Restricted Stock | Restricted Stock | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options vesting period | 1 year | |||||
Performance Based Restricted Stock | Restricted Stock | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options vesting period | 2 years | |||||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options granted | 22,134,259 | 22,580,741 | 22,134,259 | |||
Vested Quarterly Over One Year | Market Based Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options vesting period | 1 year | |||||
Multifamily Technology Solutions, Inc [Member] | Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options granted | 349,693 | |||||
Number of Employees | 96 | |||||
Stock options vesting period | 10 years | |||||
Multifamily Technology Solutions, Inc [Member] | Vesting period 1 | Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options vesting period | 4 years | |||||
Percentage of stock options to be vested | 25.00% | |||||
Multifamily Technology Solutions, Inc [Member] | Vesting period 2 | Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options vesting period | 1 year | |||||
Percentage of stock options to be vested | 20.00% | |||||
Multifamily Technology Solutions, Inc [Member] | Vesting period 3 | Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options vesting period | 4 years |
Stockbased_Compensation_Summar
Stock-based Compensation - Summary of Stock Option Transactions Under Equity Plan, Stock Incentive Plan, Multifamily Technology Solutions Plan and Board Plan (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Shares | |||
Number of Shares, Beginning Balance | 5,914,802 | 5,858,613 | 7,292,031 |
Number of Shares, Granted | 1,934,031 | 2,421,124 | 1,641,470 |
Number of Shares, Exercised | -907,765 | -1,556,865 | -2,389,704 |
Number of Shares, Forfeited/cancelled | -1,336,894 | -800,470 | -684,154 |
Number of Shares, Expired | -37,286 | -7,600 | -1,030 |
Number of Shares, ending balance | 5,566,888 | 5,914,802 | 5,858,613 |
Range of Exercise Prices | |||
Range of exercise prices beginning balance, lower limit | $0.91 | $0.91 | $0.91 |
Range of exercise prices beginning balance, upper limit | $29.50 | $29.50 | $29.50 |
Range of exercise prices, Granted lower limit | $15.19 | $19.78 | $17.67 |
Range of exercise prices, Granted upper limit | $21.54 | $25.70 | $24.64 |
Range of exercise prices Exercised, lower limit | $0.91 | $0.91 | $0.91 |
Range of exercise prices Exercised, upper limit | $21.60 | $25.24 | $27.18 |
Range of exercise prices Forfeited/cancelled, lower limit | $4.28 | $4.28 | $0.94 |
Range of exercise prices Forfeited/cancelled, upper limit | $29.50 | $29.50 | $29.50 |
Range of exercise prices Expired, lower limit | $19.78 | $24.03 | $0.94 |
Range of exercise prices Expired, upper limit | $24.64 | $24.64 | $27.18 |
Range of exercise prices Ending Balance, lower limit | $0.91 | $0.91 | $0.91 |
Range of exercise prices Ending Balance, upper limit | $29.50 | $29.50 | $29.50 |
Weighted-Average Exercise Price | |||
Weighted average exercise price, Beginning Balance (per share) | $18.56 | $13.97 | $9.95 |
Weighted average exercise price, Granted (per share) | $17.68 | $22.20 | $20.09 |
Weighted average exercise price, Exercised (per share) | $10.92 | $6.81 | $5.05 |
Weighted average exercise price, Forfeited/cancelled (per share) | $20.93 | $18.71 | $17.04 |
Weighted average exercise price, Expired (per share) | $24.02 | $24.35 | $2.73 |
Weighted average exercise price, Ending Balance (per share) | $18.89 | $18.56 | $13.97 |
Stockbased_Compensation_Outsta
Stock-based Compensation - Outstanding Stock Options, Vested and Expected to Vest, Non-Vested and Stock Options Currently Exercisable (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of options, options fully vested and expected to vest | 5,545,427.37 | 5,864,340 |
Weighted average remaining contractual life (in years), options fully vested and expected to vest | 7 years 7 months 28 days | 7 years 11 months 9 days |
Weighted average exercise price, options fully vested and expected to vest, per share | $18.88 | $18.53 |
Aggregate intrinsic value, options fully vested and expected to vest | $22,012 | $32,023 |
Number of shares options, options exercisable | 2,455,134 | 1,984,472 |
Weighted average remaining contractual life (in years), options exercisable | 6 years 6 months 26 days | 6 years 6 months 29 days |
Weighted average exercise price, options exercisable, per share | $17.04 | $14.42 |
Aggregate intrinsic value, options exercisable | $14,704 | $18,784 |
Stockbased_Compensation_Awards
Stock-based Compensation - Awards Granted Assumptions (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 1.30% | 1.30% | 1.00% |
Expected option life (in years) | 4 years 4 months 13 days | 6 years | 6 years |
Forfeiture rate | 0.00% | 0.90% | 0.80% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 42.80% | 48.50% | 51.40% |
Weighted-average grant date fair value | $6.44 | $10.37 | $9.78 |
Market Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 1.10% | ||
Expected volatility | 43.60% |
Stockbased_Compensation_Summar1
Stock-based Compensation - Summary of Time-Based Restricted Share Awards' Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted-Average price | |||
Beginning of Period | $22.10 | $21.58 | $24.54 |
Granted | $17.69 | $22.09 | $19.93 |
Vested | $21.18 | $21.30 | $23.08 |
Forfeited/cancelled | $20.36 | $21.58 | $23.34 |
Ending of Period | $20.01 | $22.10 | $21.58 |
Restricted Stock | |||
Number of Shares | |||
Beginning Balance | 2,090,803 | 1,360,947 | 998,958 |
Granted | 1,238,226 | 1,747,501 | 1,022,609 |
Vested | -1,101,143 | -712,434 | -426,675 |
Forfeited/cancelled | -603,367 | -305,211 | -233,945 |
Ending Balance | 1,624,519 | 2,090,803 | 1,360,947 |
Stockbased_Compensation_Perfor
Stock-based Compensation - Performance-Based Restricted Share Awards Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted-Average price | |||
Beginning of Period | $22.10 | $21.58 | $24.54 |
Granted | $17.69 | $22.09 | $19.93 |
Vested | $21.18 | $21.30 | $23.08 |
Forfeited/cancelled | $20.36 | $21.58 | $23.34 |
Ending of Period | $20.01 | $22.10 | $21.58 |
Performance Based Restricted Stock | |||
Number of Shares | |||
Beginning Balance | 70,000 | 275,257 | 533,587 |
Granted | 0 | 100,000 | 270,000 |
Vested | 0 | -31,902 | -132,791 |
Forfeited/cancelled | -70,000 | -273,355 | -395,539 |
Ending Balance | 0 | 70,000 | 275,257 |
Weighted-Average price | |||
Beginning of Period | $18.10 | $22.46 | $23.39 |
Granted | $0 | $21.60 | $22.93 |
Vested | $0 | $17.99 | $12.87 |
Forfeited/cancelled | $18.10 | $23.40 | $27.26 |
Ending of Period | $0 | $18.10 | $22.46 |
Market Based Restricted Stock | |||
Number of Shares | |||
Beginning Balance | 0 | ||
Granted | 520,000 | ||
Vested | 0 | ||
Forfeited/cancelled | 0 | ||
Ending Balance | 520,000 | ||
Weighted-Average price | |||
Beginning of Period | $0 | ||
Granted | $11.26 | ||
Vested | $0 | ||
Forfeited/cancelled | $0 | ||
Ending of Period | $11.26 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 19, 2012 | Mar. 31, 2014 | Aug. 12, 2012 | |
Loss Contingencies [Line Items] | ||||||
Discount rates | 2.20% | |||||
Lease rent expense | $11,100,000 | $9,700,000 | $8,400,000 | |||
Income from subleases | 100,000 | 100,000 | ||||
Yardi Law Suit | ||||||
Loss Contingencies [Line Items] | ||||||
Receipt of claim from primary insurance carrier | 5,000,000 | |||||
Policy coverage in excess of total coverage by different insurance carrier | 5,000,000 | |||||
Obligation reimbursement payment | 5,000,000 | |||||
Settlements and other related costs | $4,700,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Assets under Capital Lease (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Capital Leased Assets [Line Items] | ||
Less: Accumulated amortization | ($1,110) | ($565) |
Assets under capital lease, net | 867 | 1,412 |
Software | ||
Capital Leased Assets [Line Items] | ||
Assets under capital lease, Gross | $1,977 | $1,977 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Capital Lease Rental Commitments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $588 |
2016 | 294 |
Thereafter | 0 |
Total Minimum Lease Payments | 882 |
Less amount representing average interest of 2.2% | -15 |
Capital lease, present value of net minimum payments | 867 |
Less current portion | -575 |
Long-term portion | $292 |
Commitments_and_Contingencies_4
Commitments and Contingencies - Operating Lease Minimum Commitments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Minimum Lease Commitments | |
2015 | $11,838 |
2016 | 9,495 |
2017 | 4,618 |
2018 | 4,014 |
2019 | 3,460 |
Thereafter | 1,233 |
Total Minimum Lease Payments | 34,658 |
Sublease Income | |
2015 | 99 |
2016 | 74 |
2017 | 0 |
2018 | 0 |
2019 | 201 |
Thereafter | 0 |
Total Minimum Sublease Rentals | 374 |
Net Lease Commitments | |
2015 | 11,637 |
2016 | 9,396 |
2017 | 4,544 |
2018 | 4,014 |
2019 | 3,460 |
Thereafter | 1,233 |
Total Minimum Net Lease Commitments | $34,284 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | 31-May-14 | |
Equity [Abstract] | |||
Amount authorized to be repurchased | $50,000,000 | $75,000,000 | |
Number of shares repurchased | 966,595 | ||
Cost to repurchase stock | $15,521,000 | ||
Weighted average cost per share | $16.06 |
Funds_Held_for_Others_Addition
Funds Held for Others - Additional information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Tenant funds deposited in custodial account | $83,700,000 | $70,100,000 |
Restricted cash | 85,543,000 | 71,941,000 |
Customer deposits | 85,489,000 | 71,910,000 |
Insurance Products | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 1,700,000 | 1,500,000 |
Customer deposits | 1,700,000 | 1,500,000 |
Non-Insurance Services | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 100,000 | 400,000 |
Customer deposits | $100,000 | $400,000 |
Net_Loss_Income_Per_Share_Addi
Net (Loss) Income Per Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Shares excluded from dilutive shares outstanding because their effect was anti-dilutive | 1,273,889 | 1,058,334 | 644,299 |
Net_Loss_Income_Per_Share_Calc
Net (Loss) Income Per Share - Calculation of Basic and Diluted Net Income (Loss) Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||||||||||
Net (loss) income | $110 | ($3,257) | ($6,291) | ($836) | $2,178 | $12,886 | $4,610 | $1,018 | ($10,274) | $20,692 | $5,183 |
Basic: | |||||||||||
Weighted average common shares used in computing basic net (loss) income per share | 76,991 | 74,962 | 71,838 | ||||||||
Diluted: | |||||||||||
Weighted average common shares used in computing basic net (loss) income per share | 76,991 | 74,962 | 71,838 | ||||||||
Add weighted average effect of dilutive securities: | |||||||||||
Stock options and restricted stock | 0 | 1,225 | 2,164 | ||||||||
Weighted average common shares used in computing diluted net (loss) income per share | 76,991 | 76,187 | 74,002 | ||||||||
Net (loss) income per common share: | |||||||||||
Basic (in dollars per share) | ($0.13) | $0.28 | $0.07 | ||||||||
Diluted (in dollars per share) | ($0.13) | $0.27 | $0.07 |
Income_Taxes_Domestic_and_Fore
Income Taxes - Domestic and Foreign Components of (Loss) Income Before Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | ($18,768) | $19,230 | $9,151 |
Foreign | 2,161 | 1,252 | 251 |
(Loss) income before income taxes | ($16,607) | $20,482 | $9,402 |
Income_Taxes_Benefit_Provision
Income Taxes - (Benefit) Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $0 | $0 | $0 |
State | 437 | 1,886 | 1,568 |
Foreign | 550 | 421 | 27 |
Total current taxes | 987 | 2,307 | 1,595 |
Deferred: | |||
Federal | -6,611 | -1,832 | 3,192 |
State | -460 | -619 | -574 |
Foreign | -249 | -66 | 6 |
Total deferred taxes | -7,320 | -2,517 | 2,624 |
Total income tax (benefit) provision | ($6,333) | ($210) | $4,219 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Income Tax (Benefit) Expense Computed at Federal Statutory Tax Rate to Actual Income Tax (Benefit) Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Expense derived by applying the Federal income tax rate to (loss) income before taxes | ($5,813) | $7,169 | $3,291 |
State income tax, net of federal benefit | -177 | 607 | 445 |
Foreign income tax | -477 | -170 | -55 |
Change in valuation allowance | 0 | -9,087 | 0 |
Benefit of assets not previously recognized | -516 | 0 | 0 |
Nondeductible expenses | 454 | 644 | 612 |
Fair value adjustment on stock acquisition | -28 | 487 | -251 |
Stock-based compensation | 223 | 139 | 171 |
Other | 1 | 1 | 6 |
Total income tax provision (benefit) | ($6,333) | ($210) | $4,219 |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Reserves, deferred revenue and accrued liabilities | $6,392 | $6,303 |
Stock-based compensation | 12,238 | 10,873 |
Net operating loss carryforwards | 22,348 | 16,106 |
Total gross deferred tax assets | 40,978 | 33,282 |
Deferred tax asset valuation allowance | 0 | -43 |
Total deferred tax assets | 40,978 | 33,239 |
Deferred tax liabilities: | ||
Property, equipment and software | -8,217 | -5,408 |
Other | -2,459 | -2,055 |
Intangible assets | -21,965 | -23,871 |
Total deferred tax liabilities | -32,641 | -31,334 |
Net deferred tax assets | $8,337 | $1,905 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Income Taxes [Line Items] | |||
Valuation allowance reversal | ($9,200,000) | ||
Deferred tax liability, net | 32,641,000 | 31,334,000 | |
Deferred tax liability related to intangibles not amortizable for tax purposes | 21,965,000 | 23,871,000 | |
Deferred tax asset related to net operating loss carryforwards | 22,348,000 | 16,106,000 | |
Deferred tax liabilities, other | 2,459,000 | 2,055,000 | |
Unrecognized benefit from equity compensation | 12,238,000 | 10,873,000 | |
Excess tax benefit from stock options | 2,248,000 | ||
Deferred tax assets operating loss carryforwards, federal | 183,800,000 | ||
Deferred tax assets operating loss carryforwards, state | 7,300,000 | ||
Operating losses carryforwards attributable to deductions originating from exercise of non-qualified employee stock options | 129,200,000 | ||
Net operating income (loss) | -15,503,000 | 21,559,000 | 11,448,000 |
Undistributed earnings related to foreign subsidiaries | 3,500,000 | ||
Income tax examinations and adjustments minimum year | 3 years | ||
Increase (Decrease) in NOL deferred tax asset | -1,000,000 | ||
Kigo | |||
Schedule Of Income Taxes [Line Items] | |||
Additional net deferred tax liability | 500,000 | ||
Deferred tax liability related to intangibles not amortizable for tax purposes | 1,400,000 | ||
Deferred tax asset related to net operating loss carryforwards | 1,000,000 | ||
Rent Sentinel | |||
Schedule Of Income Taxes [Line Items] | |||
Additional net deferred tax asset | 200,000 | ||
Deferred tax liability related to intangibles not amortizable for tax purposes | 1,800,000 | ||
Deferred tax asset related to net operating loss carryforwards | 2,100,000 | ||
Deferred tax liabilities, other | 100,000 | ||
MyBuilding Inc. | |||
Schedule Of Income Taxes [Line Items] | |||
Deferred tax liability, net | 800,000 | ||
Deferred tax liability related to intangibles not amortizable for tax purposes | 1,200,000 | ||
Deferred tax asset related to net operating loss carryforwards | 300,000 | ||
Deferred tax assets, other | 100,000 | ||
INDIA | |||
Schedule Of Income Taxes [Line Items] | |||
Tax holiday expiration date | 31-Mar-11 | ||
PHILIPPINES | |||
Schedule Of Income Taxes [Line Items] | |||
Tax holiday expiration year | 2015 | ||
Federal | |||
Schedule Of Income Taxes [Line Items] | |||
Net operating loss carryforwards, expiration year | 2020 | ||
Income tax year no longer subject to examinations | 2011 | ||
State | |||
Schedule Of Income Taxes [Line Items] | |||
Income tax year no longer subject to examinations | 2010 | ||
Additional Paid-in Capital | |||
Schedule Of Income Taxes [Line Items] | |||
Unrecognized benefit from equity compensation | 129,000,000 | ||
Excess tax benefit from stock options | 2,248,000 | ||
Subsidiaries before acquisition | |||
Schedule Of Income Taxes [Line Items] | |||
Net operating income (loss) | ($23,900,000) |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Contributions to employee benefit plans | $1.30 | $0.90 | $0.90 |
Fair_Value_Measurements_Valuat
Fair Value Measurements - Valuation Inputs (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rates | 2.20% | |
Contingent Consideration | Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Volatility rates | 58.00% | |
Risk free rate of return | 0.10% | |
Contingent Consideration | Recurring | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rates | 22.50% | 23.30% |
Volatility rates | 45.00% | |
Risk free rate of return | 0.10% | |
Contingent Consideration | Recurring | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rates | 64.00% | 27.20% |
Volatility rates | 48.00% | |
Risk free rate of return | 0.20% |
Fair_Value_Measurements_Contin
Fair Value Measurements - Contingent Consideration (Details) (Contingent Consideration, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | $4,150 | $1,827 | $364 |
Recurring | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 4,150 | 1,827 | |
Recurring | Active Building | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 1,566 | 1,366 | |
Recurring | MyBuilding | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 248 | 348 | |
Recurring | InstaManager | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 2,335 | ||
Recurring | Seniors Living | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 113 | ||
Recurring | VMM | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 1 | ||
Recurring | Level 1 | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | 0 | |
Recurring | Level 1 | Active Building | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | 0 | |
Recurring | Level 1 | MyBuilding | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | 0 | |
Recurring | Level 1 | InstaManager | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | ||
Recurring | Level 1 | Seniors Living | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | ||
Recurring | Level 1 | VMM | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | ||
Recurring | Level 2 | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | 0 | |
Recurring | Level 2 | Active Building | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | 0 | |
Recurring | Level 2 | MyBuilding | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | 0 | |
Recurring | Level 2 | InstaManager | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | ||
Recurring | Level 2 | Seniors Living | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | ||
Recurring | Level 2 | VMM | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 0 | ||
Recurring | Level 3 | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 4,150 | 1,827 | |
Recurring | Level 3 | Active Building | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 1,566 | 1,366 | |
Recurring | Level 3 | MyBuilding | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 248 | 348 | |
Recurring | Level 3 | InstaManager | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 2,335 | ||
Recurring | Level 3 | Seniors Living | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | 113 | ||
Recurring | Level 3 | VMM | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Liability measured at fair value | $1 |
Fair_Value_Measurements_Change
Fair Value Measurements - Changes in Level 3 Fair Values (Details) (Contingent Consideration, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Contingent Consideration | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $1,827 | $364 |
Initial contingent consideration | 2,939 | 1,614 |
Settlements through cash payments | -229 | |
Net gain on change in fair value | -387 | -151 |
Ending balance | $4,150 | $1,827 |
Related_Party_Additional_Infor
Related Party - Additional Information (Detail) (Zuma Capital, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | 31-May-12 |
Zuma Capital | |
Related Party Transaction [Line Items] | |
Amount of interest in payout based on ownership percentage of acquired entity | $0.20 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (unaudited) - Selected Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||||||||||
On demand | $101,261 | $100,747 | $91,606 | $97,008 | $92,081 | $94,084 | $90,825 | $85,322 | $390,622 | $362,312 | $306,400 |
On premise | 648 | 755 | 826 | 865 | 892 | 838 | 1,011 | 950 | 3,094 | 3,691 | 5,216 |
Professional and other | 2,555 | 3,034 | 2,556 | 2,690 | 2,546 | 3,149 | 2,615 | 2,709 | 10,835 | 11,019 | 10,556 |
Total revenue | 104,464 | 104,536 | 94,988 | 100,563 | 95,519 | 98,071 | 94,451 | 88,981 | 404,551 | 377,022 | 322,172 |
Gross profit | 57,946 | 58,225 | 52,873 | 60,636 | 58,013 | 59,960 | 57,111 | 53,617 | 229,680 | 228,701 | 193,610 |
Net (loss) income | $110 | ($3,257) | ($6,291) | ($836) | $2,178 | $12,886 | $4,610 | $1,018 | ($10,274) | $20,692 | $5,183 |
Net (loss) income per share: | |||||||||||
Basic and Diluted (dollar per share) | $0 | ($0.04) | ($0.08) | ($0.01) | $0.03 | $0.17 | $0.06 | $0.01 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $914 | $1,087 | $979 |
Additions Charged to Costs and Expenses | 3,676 | 3,661 | 1,794 |
Deduction | -2,227 | -3,834 | -1,686 |
Balance at End of Year | $2,363 | $914 | $1,087 |