Document and Entity Information
Document and Entity Information Statement - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 04, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | TABLEAU SOFTWARE INC | |
Entity Central Index Key | 1,303,652 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 62,722,497 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 16,372,489 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 992,904 | $ 908,717 |
Accounts receivable, net of allowance for doubtful accounts of $890 and $1,065 | 137,588 | 206,765 |
Prepaid expenses and other current assets | 20,055 | 36,011 |
Income taxes receivable | 237 | 131 |
Total current assets | 1,150,784 | 1,151,624 |
Property and equipment, net | 92,968 | 106,637 |
Goodwill | 15,531 | 15,531 |
Deferred income taxes | 1,591 | 1,449 |
Deposits and other assets | 10,203 | 11,958 |
Total assets | 1,271,077 | 1,287,199 |
Current liabilities | ||
Accounts payable | 2,912 | 17,637 |
Accrued compensation and employee related benefits | 60,891 | 70,230 |
Other accrued liabilities | 41,600 | 53,418 |
Income taxes payable | 2,505 | 1,893 |
Deferred revenue | 318,512 | 285,543 |
Total current liabilities | 426,420 | 428,721 |
Deferred revenue | 30,199 | 26,930 |
Other long-term liabilities | 45,188 | 39,700 |
Total liabilities | 501,807 | 495,351 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 1,089,444 | 1,007,205 |
Accumulated other comprehensive income (loss) | (5,615) | 1,593 |
Accumulated deficit | (314,567) | (216,958) |
Total stockholders' equity | 769,270 | 791,848 |
Total liabilities and stockholders' equity | 1,271,077 | 1,287,199 |
Class B common stock | ||
Common stock | 2 | 2 |
Class A common stock | ||
Common stock | $ 6 | $ 6 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Balance Sheet Parenthetical - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts | $ 890 | $ 1,065 |
Preferred Stock, Par Value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Class B common stock | ||
Common Stock, Par Value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares Issued | 16,372,489 | 18,336,609 |
Common Stock, Shares Outstanding | 16,372,489 | 18,336,609 |
Class A common stock | ||
Common Stock, Par Value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 750,000,000 | 750,000,000 |
Common Stock, Shares Issued | 62,703,400 | 58,381,813 |
Common Stock, Shares Outstanding | 62,703,400 | 58,381,813 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Revenues | |||||
License | $ 103,296 | $ 116,349 | $ 200,540 | $ 212,764 | |
Maintenance and services | 109,584 | 82,186 | 212,246 | 157,469 | |
Total revenues | 212,880 | 198,535 | 412,786 | 370,233 | |
Cost of revenues | |||||
License | 2,942 | 1,602 | 6,209 | 2,633 | |
Maintenance and services | 23,723 | 23,262 | 47,111 | 44,724 | |
Total cost of revenues | [1] | 26,665 | 24,864 | 53,320 | 47,357 |
Gross profit | 186,215 | 173,671 | 359,466 | 322,876 | |
Operating expenses | |||||
Sales and marketing | [1] | 124,160 | 119,889 | 242,178 | 226,053 |
Research and development | [1] | 81,067 | 77,516 | 165,369 | 148,409 |
General and administrative | [1] | 25,875 | 23,141 | 50,320 | 41,673 |
Total operating expenses | 231,102 | 220,546 | 457,867 | 416,135 | |
Operating loss | (44,887) | (46,875) | (98,401) | (93,259) | |
Other income, net | 4,029 | 1,019 | 5,254 | 2,682 | |
Loss before income tax expense | (40,858) | (45,856) | (93,147) | (90,577) | |
Income tax expense | 1,664 | 1,666 | 4,022 | 2,523 | |
Net loss | $ (42,522) | $ (47,522) | $ (97,169) | $ (93,100) | |
Net loss per share: | |||||
Basic (in usd per share) | $ (0.54) | $ (0.64) | $ (1.25) | $ (1.25) | |
Diluted (in usd per share) | $ (0.54) | $ (0.64) | $ (1.25) | $ (1.25) | |
Weighted average shares used to compute net loss per share: | |||||
Basic (shares) | 78,511 | 74,756 | 77,966 | 74,286 | |
Diluted (shares) | 78,511 | 74,756 | 77,966 | 74,286 | |
[1] | Includes stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands)Cost of revenues$2,790 $2,642 $5,367 $5,446Sales and marketing18,526 16,605 36,618 33,550Research and development25,648 22,409 49,163 44,508General and administrative5,150 3,715 10,161 7,067 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations Parenthetical - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cost of revenues | ||||
Stock-based Compensation Expense | $ 2,790 | $ 2,642 | $ 5,367 | $ 5,446 |
Sales and marketing | ||||
Stock-based Compensation Expense | 18,526 | 16,605 | 36,618 | 33,550 |
Research and development | ||||
Stock-based Compensation Expense | 25,648 | 22,409 | 49,163 | 44,508 |
General and administrative | ||||
Stock-based Compensation Expense | $ 5,150 | $ 3,715 | $ 10,161 | $ 7,067 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Loss Statement - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (42,522) | $ (47,522) | $ (97,169) | $ (93,100) |
Other comprehensive loss: | ||||
Foreign currency translation, net | (6,384) | 319 | (7,208) | (2,043) |
Comprehensive loss | $ (48,906) | $ (47,203) | $ (104,377) | $ (95,143) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Operating activities | |||
Net loss | $ (97,169) | $ (93,100) | |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation and amortization expense | 23,837 | 16,001 | |
Stock-based compensation expense | 101,309 | 90,571 | |
Deferred income taxes | 465 | 239 | |
Changes in operating assets and liabilities | |||
Accounts receivable, net | 72,493 | (2,176) | |
Prepaid expenses, deposits and other assets | 19,519 | (419) | |
Income taxes receivable | (97) | 72 | |
Deferred revenue | 30,072 | 31,654 | |
Accounts payable and accrued liabilities | (16,421) | 18,086 | |
Income taxes payable | 523 | 105 | |
Net cash provided by operating activities | 134,531 | 61,033 | [1] |
Investing activities | |||
Purchases of property and equipment | (33,860) | (23,452) | |
Business combination | 0 | (16,399) | |
Net cash used in investing activities | (33,860) | (39,851) | |
Financing activities | |||
Proceeds from issuance of common stock | 21,646 | 18,040 | |
Repurchases of common stock | (40,014) | 0 | |
Net cash provided by (used in) financing activities | (18,368) | 18,040 | [1] |
Effect of exchange rate changes on cash and cash equivalents | 1,884 | (375) | |
Net increase in cash and cash equivalents | 84,187 | 38,847 | |
Cash and cash equivalents | |||
Beginning of period | 908,717 | 795,900 | |
End of period | 992,904 | 834,747 | |
Non-cash activities | |||
Accrued purchases of property and equipment | 1,875 | 14,663 | |
Asset retirement obligations recognized, net | $ 0 | $ 70 | |
[1] | (1) We adopted Accounting Standards Update ("ASU") 2016-09 in the first quarter of 2017. Prior to the adoption of ASU 2016-09, excess tax benefits related to stock awards were required to be presented as an inflow from financing activities and an outflow from operating activities on the statement of cash flows. Under the new standard, all tax-related cash flows resulting from share-based payments are reported as operating activities. We adopted the new requirement retrospectively, and for the six months ended June 30, 2016, this resulted in an increase to net cash provided by operating activities of $0.6 million and a corresponding decrease to net cash provided by (used in) financing activities of $0.6 million. |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows Parenthetical $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($) | ||
Net cash provided by operating activities | $ 61,033 | [1] |
Net cash provided by (used in) financing activities | 18,040 | [1] |
Adjustments for New Accounting Pronouncement, ASU 2016-09 | ||
Net cash provided by operating activities | 600 | |
Net cash provided by (used in) financing activities | $ (600) | |
[1] | (1) We adopted Accounting Standards Update ("ASU") 2016-09 in the first quarter of 2017. Prior to the adoption of ASU 2016-09, excess tax benefits related to stock awards were required to be presented as an inflow from financing activities and an outflow from operating activities on the statement of cash flows. Under the new standard, all tax-related cash flows resulting from share-based payments are reported as operating activities. We adopted the new requirement retrospectively, and for the six months ended June 30, 2016, this resulted in an increase to net cash provided by operating activities of $0.6 million and a corresponding decrease to net cash provided by (used in) financing activities of $0.6 million. |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Tableau Software, Inc., a Delaware corporation, and its wholly-owned subsidiaries (the "Company," "we," "us" or "our") are headquartered in Seattle, Washington. Our software products put the power of data into the hands of everyday people, allowing a broad population of business users to engage with their data, ask questions, solve problems and create value. Based on innovative core technologies originally developed at Stanford University, our products dramatically reduce the complexity, inflexibility and expense associated with traditional business intelligence applications. We currently offer five key products: Tableau Desktop, a self-service, powerful analytics product for anyone with data; Tableau Server, a business intelligence platform for organizations; Tableau Online, a hosted software-as-a-service ("SaaS") version of Tableau Server; Tableau Public, a free cloud-based platform for analyzing and sharing public data; and Vizable, a free application used to easily analyze data on a tablet. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial information has been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet data as of December 31, 2016 was derived from audited financial statements, but does not include all disclosures required by GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on February 23, 2017 . In the opinion of management, the accompanying unaudited condensed consolidated financial information includes all normal recurring adjustments necessary for a fair statement of the Company's financial position, results of operations, comprehensive loss and cash flows for the interim periods, but is not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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 period. Our estimates include the useful lives of our property and equipment and other lease-related assets, liabilities and costs and the collectability of our accounts receivable. We also use estimates in stock-based compensation, income taxes, business combinations and accrued liabilities. Actual results could differ from those estimates. Risks and Uncertainties Inherent in our business are various risks and uncertainties, including our limited history of operating our business at its current scale and development of advanced technologies in a rapidly changing industry. These risks include our ability to manage our growth and our ability to attract new customers and expand sales to existing customers, as well as other risks and uncertainties. In the event that we do not successfully implement our business plan, certain assets may not be recoverable, certain liabilities may not be paid and investments in our capital stock may not be recoverable. Our success depends upon the acceptance of our technology, development of sales and distribution channels and our ability to generate significant revenues from the sale of our technology. Segments We follow the authoritative literature that established annual and interim reporting standards for an enterprise's operating segments and related disclosures about its products and services, geographic regions and major customers. We operate our business as one operating segment. Our chief operating decision makers are our Chief Executive Officer and Chief Financial Officer, who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We extend credit to customers based upon an evaluation of the customer's financial condition. As of June 30, 2017 and December 31, 2016 , no individual customer accounted for 10% or more of total accounts receivable. For the three and six months ended June 30, 2017 and 2016 , no individual customer represented 10% or more of our total revenues. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-09 related to stock-based compensation. The guidance, which simplifies the accounting and presentation for share-based payments, provides for a number of amendments that impact the accounting for income taxes and the accounting for forfeitures. We adopted this standard in the first quarter of 2017. Upon adoption, we recognized all of the previously unrecognized excess tax benefits related to stock awards using the modified retrospective transition method . These excess tax benefits, recognized upon adoption, were recorded as a deferred tax asset, which was then fully offset by our U.S. federal and state deferred tax asset valuation allowance resulting in no impact to our accumulated deficit. Without the valuation allowance, our deferred tax asset would have increased by $180.9 million . Immediately prior to adoption, we had no unrecognized excess tax benefits related to stock awards in jurisdictions outside the United States. All future excess tax benefits resulting from the settlement of stock awards will be recorded to income tax expense. Prior to the adoption of ASU 2016-09, excess tax benefits related to stock awards were required to be presented as an inflow from financing activities and an outflow from operating activities on the statement of cash flows. Under the new standard, all tax-related cash flows resulting from share-based payments are reported as operating activities. We adopted the new requirement retrospectively, and for the six months ended June 30, 2016 , this resulted in an increase to net cash provided by operating activities of $0.6 million and a corresponding decrease to net cash provided by (used in) financing activities of $0.6 million . Also, as part of the adoption of the standard, we made the policy election to account for forfeitures as they occur. Using the modified retrospective adoption method, we recognized a $0.4 million cumulative-effect increase to our accumulated deficit for previously estimated forfeitures. Recent Accounting Pronouncements Not yet Adopted In May 2014, the FASB issued ASU 2014-09 related to revenue recognition. Since the issuance of ASU 2014-09, the FASB has also issued ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, all of which clarify certain aspects of ASU 2014-09. The new standard will change the way we recognize revenue, including the identification of contractual performance obligations and the allocation of transaction price, to depict the transfer of promised goods or services to customers at the amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. We currently expect to adopt this standard on January 1, 2018 on a modified retrospective basis and expect to apply the new standard only to contracts that are not completed contracts at January 1, 2018. The new standard will impact the timing of revenue recognition related to our on-premises term license agreements. Under existing guidance we recognize revenue related to on-premises term license agreements ratably over the term of the licensing agreement. However, under the new standard we expect that revenue allocable to the license portion of the arrangement will be recognized upon delivery of the license. Maintenance revenue related to on-premises term license agreements will continue to be recognized ratably over the term of the licensing agreement. The new standard may also impact our determination of standalone selling prices, which could impact the allocation of transaction price to each performance obligation, thereby impacting the timing of revenue recognition depending on when each performance obligation is recognized. The impacts to the timing of revenue recognition will also affect our deferred revenue balance. The new standard also requires the capitalization of certain incremental costs of obtaining a contract which will impact the period in which we record our sales commissions expense. Under existing guidance, we generally recognize sales commissions expense upfront. Under the new guidance, we are required to recognize these expenses consistently with the transfer of goods or services. The new standard will also impact our internal control environment, including our financial statement disclosure controls, our business process controls and enhancements necessary to update our business systems. Our evaluation of the new standard will extend into future periods and we will update our disclosures, including the expected impacts of the new standard, as we progress towards the adoption date. In February 2016, the FASB issued ASU 2016-02 related to lease accounting. The new guidance will require lessees to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases that do not meet the definition of a short-term lease. ASU 2016-02 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018 and requires modified retrospective transition. Early adoption is permitted. Under the new standard we anticipate that our current real estate leases will continue to be classified as operating leases and a significant amount of our currently outstanding operating lease commitments will be recorded to the balance sheet as a right-of-use asset and a corresponding lease liability. Our evaluation of the new standard will extend into future periods and we will update our disclosures, including the expected impacts of the new standard, as we progress towards the required adoption date. In January 2017, the FASB issued ASU 2017-04, simplifying the accounting for goodwill impairment. The new guidance removes step two of the two-step quantitative goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and may be adopted early for any interim or annual goodwill impairment tests performed after January 1, 2017. We currently expect to adopt this standard in 2017 as part of our annual impairment testing performed in the third quarter. We do not believe that this standard will have a material impact on our consolidated financial statements. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock Our certificate of incorporation, as amended and restated, authorizes us to issue 75,000,000 shares of Class B common stock, at $0.0001 par value per share, and 750,000,000 shares of Class A common stock, at $0.0001 par value per share. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each holder of Class B common stock is entitled to ten votes per share and each holder of Class A common stock is entitled to one vote per share. Shares of Class B common stock may be converted into Class A common stock at any time at the option of the stockholder and are automatically converted upon sale or transfer to Class A common stock, subject to certain limited exceptions. At its discretion, the board of directors may declare dividends on shares of common stock, subject to the rights of our preferred stockholders, if any. Upon liquidation or dissolution, holders of common stock will receive distributions only after preferred stock preferences have been satisfied. Preferred Stock Our certificate of incorporation, as amended and restated, authorizes us to issue 10,000,000 shares of preferred stock at $0.0001 par value per share. Our board of directors has the authority to provide for the issuance of all the shares in one or more series. At its discretion, our board of directors may designate the voting rights and preferences of the preferred stock. Stock Repurchase Program On November 1, 2016, we announced that our board of directors approved a stock repurchase program, under which we were authorized to repurchase up to $200 million of our outstanding Class A common stock. The repurchase program has no expiration date and may be modified, suspended or discontinued at any time. Repurchases under the program may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in transactions structured through investment banking institutions or a combination of the foregoing, in compliance with Rule 10b-18 under the Securities Exchange Act of 1934. During the six months ended June 30, 2017 , we repurchased 703,086 shares of our outstanding Class A common stock at an average price of $56.91 per share for $40.0 million . All repurchases were made in open market transactions using cash on hand and all of the shares repurchased were retired. As of June 30, 2017 , we were authorized to repurchase $140.0 million of our Class A common stock under our repurchase program. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Stock-Based Compensation Our 2004 Equity Incentive Plan (the "2004 Plan") authorized the granting of options to purchase shares of our Class B common stock, restricted stock units ("RSUs") and other stock-based awards to our employees, consultants, officers and directors. Our 2013 Equity Incentive Plan, as amended, (the "2013 Plan" and, together with the 2004 Plan, the "Plans"), which was the successor to our 2004 Plan, authorizes the granting of options to purchase shares of our Class A common stock, RSUs and other stock-based awards to our employees, consultants, officers and directors. Options granted under the Plans may be incentive or nonstatutory stock options. Incentive stock options may only be granted to employees. The term of each option is stated in the award agreement, but shall be no more than ten years from the date of grant. The board of directors determines the period over which options and RSUs become vested. Currently, the vesting period for our options and RSUs is typically four years. Our 2013 Employee Stock Purchase Plan ("2013 ESPP") allows eligible employees to purchase shares of our Class A common stock, at a discount, through payroll deductions of up to 15% of their eligible compensation, subject to plan limitations. The 2013 ESPP currently includes purchase periods approximately six months in duration starting on the first trading date on or after June 1 st and December 1 st of each year. Participants are able to purchase shares of our common stock at 85% of the lower of its fair market value on (i) the first day of the purchase period or on (ii) the purchase date, which is the last day of the purchase period. A summary of the option activity during the six months ended June 30, 2017 follows: Options Outstanding Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Balances at December 31, 2016 4,486,416 $ 9.59 Options exercised (1,018,437 ) 7.88 Options canceled (78 ) 9.30 Options forfeited (1,761 ) 26.38 Balances at June 30, 2017 3,466,140 $ 10.09 4.89 $ 177,403 Vested and expected to vest at June 30, 2017 3,466,140 $ 10.09 4.89 $ 177,403 Exercisable at June 30, 2017 3,390,360 $ 9.09 4.79 $ 176,917 The intrinsic value is the difference between the current fair value of the stock and the exercise price of the stock option. RSUs entitle the holder to receive shares of Class A common stock as the award vests, which is generally based on length of service. The fair value of an RSU is determined by using the closing price of our Class A common stock as reported on the New York Stock Exchange on the date of grant. Our non-vested RSUs do not have nonforfeitable rights to dividends or dividend equivalents. For awards subject to technology milestones, we are recognizing compensation cost over the estimated required service period because we believe it is probable that the technology milestone will be met. If our assessment of the probability of the technology milestone being met changes, we will recognize the estimated impact of the change in the period of the change. A summary of the RSU activity during the six months ended June 30, 2017 follows: Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Non-Vested outstanding at December 31, 2016 7,141,294 $ 65.62 RSUs granted 2,847,408 55.80 RSUs vested (1,679,510 ) 63.12 RSUs forfeited (575,842 ) 66.68 Non-Vested outstanding at June 30, 2017 7,733,350 $ 62.62 Stock-based compensation expense is amortized using the straight-line method over the requisite service period. As of June 30, 2017 , total unrecognized compensation expense related to stock options and non-vested RSUs was $442.4 million , which is expected to be recognized over a weighted average period of 2.7 years . As a result of adopting ASU 2016-09 in the first quarter of 2017, the unrecognized compensation expense disclosure no longer considers future estimated forfeitures as we made the policy election to account for forfeitures as they occur. The summary of shares available for issuance of equity based awards (including stock options and RSUs) during the six months ended June 30, 2017 follows: Shares Available for Grant 2013 Plan 2013 ESPP Balances at December 31, 2016 6,342,962 3,503,385 Authorized 3,835,921 767,184 Granted (2,847,408 ) (362,606 ) Canceled 78 — Forfeited 577,603 — Balances at June 30, 2017 7,909,156 3,907,963 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision for interim periods is computed using an estimate of our annual effective tax rate applied to income (loss) before taxes and adjusted for discrete items, if any, in the relevant period. During the prior year interim periods, we calculated the income tax provision using the actual year to date effective tax rate due to difficulty in estimating a reliable annual effective tax rate. Our effective tax rate is impacted by and differs from the federal statutory rate primarily due to non-deductible stock-based compensation and the adverse effect of losses incurred in certain jurisdictions for which we do not realize a tax benefit. Income tax expense was $1.7 million and $1.7 million for the three months ended June 30, 2017 and 2016 , respectively, and $4.0 million and $2.5 million for the six months ended June 30, 2017 and 2016 , respectively. Income tax expense during these periods was primarily attributable to taxes in foreign jurisdictions. There was no domestic income tax benefit recorded during these periods due to our U.S. federal and state deferred tax asset valuation allowance. Our effective tax rate was (4.1)% and (3.6)% for the three months ended June 30, 2017 and 2016 , respectively, and (4.3)% and (2.8)% for the six months ended June 30, 2017 and 2016 , respectively. The year-over-year change in the effective tax rates for the three and six month periods is primarily attributable to an increase in taxes in foreign jurisdictions. As a result of adopting ASU 2016-09 in the first quarter of 2017, we recognized previously unrecognized excess tax benefits related to stock awards as a deferred tax asset, which was fully offset by our U.S. federal and state deferred tax asset valuation allowance. Immediately prior to adoption, we had no unrecognized excess tax benefits related to stock awards in jurisdictions outside the United States. We periodically evaluate the realizability of our net deferred tax assets based on all available evidence, both positive and negative such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative loss in recent years. As of June 30, 2017 , we maintain a full valuation allowance on our U.S. federal and state deferred tax assets. On July 27, 2015, the U.S. Tax Court issued an opinion related to litigation in Altera Corp v. Commissioner . This litigation relates to the treatment of stock-based compensation expense in an intercompany cost sharing arrangement with one of Altera's foreign subsidiaries. In its opinion, the U.S. Tax Court invalidated the portion of the Treasury regulations requiring the inclusion of stock-based compensation expense in such intercompany cost-sharing arrangements. On February 19, 2016, the IRS appealed the U.S. Tax Court's decision. As the final resolution of this litigation remains uncertain we have not recorded potentially favorable benefits related to the current or prior periods. We will continue to monitor developments related to this case and the potential impact of those developments on our current and future financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Commitments and Expected Sublease Receipts As of June 30, 2017 , our principal obligations consisted of obligations outstanding under non-cancellable operating leases that expire at various dates through 2029. The following table represents our non-cancellable minimum lease payments, net of future expected sublease payments to be received under non-cancellable subleases, remaining as of June 30, 2017 (in thousands): Period Ending Operating Lease Commitments Expected Sublease Receipts Net Remainder of 2017 $ 19,963 $ (2,339 ) $ 17,624 2018 45,086 (7,972 ) 37,114 2019 46,511 (8,603 ) 37,908 2020 44,475 (5,920 ) 38,555 2021 43,602 (717 ) 42,885 Thereafter 216,751 (122 ) 216,629 Total $ 416,388 $ (25,673 ) $ 390,715 Liabilities for Loss on Lease Obligations and Related Exit Costs During the fourth quarter of 2016 and the first quarter of 2017, we consolidated operations in some of our leased real estate properties and vacated certain leased office spaces. As a result, for the three months ended March 31, 2017, we recognized additional operating expenses of $10.3 million , of which $4.8 million related to losses on cease-use and $1.3 million resulted from additional expenses related to sublease of certain real estate properties. The remainder was recognized as additional depreciation expense attributable to adjustments to the useful lives of certain leasehold improvements. The expense during the period was allocated to operating expenses in accordance with our overhead allocation. A cease-use loss liability was recorded for the leased office spaces we vacated and was calculated as the present value of the total remaining lease payment obligation offset by estimated sublease rental income, adjusted for deferred items and estimated direct costs to obtain sublease rentals. Contractual Commitments Our contractual commitments are associated with agreements that are enforceable and legally binding and that specify all significant terms, including fixed or minimum services to be used, fixed, minimum or variable price provisions and the approximate timing of the transaction. Obligations under contracts that we can cancel without a significant penalty are not included. There have been no material changes in our contractual commitments compared to those discussed in Note 8 in our Annual Report on Form 10-K for the year ended December 31, 2016 . Legal Proceedings We are subject to certain routine legal proceedings, as well as demands and claims that arise in the normal course of our business. We make a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. We are not aware of any pending legal proceedings that we believe, individually or in the aggregate, would be expected to have a material adverse effect on our business, operating results, or financial condition. We may, in the future, be party to litigation arising in the ordinary course of business, including claims that we allegedly infringe upon third party intellectual property rights. Such claims, even if not meritorious, could result in the expenditure of significant financial and management resources. |
Segments and Information about
Segments and Information about Revenues by Geographic Region | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segments and Information about Revenues by Geographic Area | Segments and Information about Revenues by Geographic Area The following table presents our revenues by geographic region of end users who purchased products or services for the periods presented below: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) United States and Canada $ 146,102 $ 141,478 $ 287,598 $ 265,126 International 66,778 57,057 125,188 105,107 Total revenues $ 212,880 $ 198,535 $ 412,786 $ 370,233 |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table presents the computation of basic and diluted net loss per share: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands, except per share amounts) Net loss per share - basic and diluted Net loss $ (42,522 ) $ (47,522 ) $ (97,169 ) $ (93,100 ) Weighted average shares outstanding used to compute basic and diluted net loss per share 78,511 74,756 77,966 74,286 Net loss per share - basic and diluted $ (0.54 ) $ (0.64 ) $ (1.25 ) $ (1.25 ) The following shares were excluded from the computation of diluted net loss per share for the periods presented as their effect would have been antidilutive: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Shares subject to outstanding common stock awards 11,452 13,052 11,452 13,052 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We categorize assets and liabilities recorded at fair value based upon the level of judgment associated with inputs used to measure their fair value. The levels of the fair value hierarchy are as follows: • Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3—Inputs are unobservable inputs based on our own assumptions and valuation techniques used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The following table presents the fair value of our financial assets using the fair value hierarchy: June 30, 2017 Description Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 952,661 $ — $ — $ 952,661 December 31, 2016 Description Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 872,161 $ — $ — $ 872,161 We did not have any investments in prime money market funds as of June 30, 2017 . We have no material financial assets or liabilities measured using Level 2 or Level 3 inputs. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 1, 2017, we acquired a privately-held software company for $24.1 million in cash. The acquisition will be accounted for as a business combination. Due to the timing of this acquisition, the purchase price allocation was not yet available for disclosure as of the date of these financial statements. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial information has been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet data as of December 31, 2016 was derived from audited financial statements, but does not include all disclosures required by GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on February 23, 2017 . In the opinion of management, the accompanying unaudited condensed consolidated financial information includes all normal recurring adjustments necessary for a fair statement of the Company's financial position, results of operations, comprehensive loss and cash flows for the interim periods, but is not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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 period. Our estimates include the useful lives of our property and equipment and other lease-related assets, liabilities and costs and the collectability of our accounts receivable. We also use estimates in stock-based compensation, income taxes, business combinations and accrued liabilities. Actual results could differ from those estimates. |
Risk And Uncertainties | Risks and Uncertainties Inherent in our business are various risks and uncertainties, including our limited history of operating our business at its current scale and development of advanced technologies in a rapidly changing industry. These risks include our ability to manage our growth and our ability to attract new customers and expand sales to existing customers, as well as other risks and uncertainties. In the event that we do not successfully implement our business plan, certain assets may not be recoverable, certain liabilities may not be paid and investments in our capital stock may not be recoverable. Our success depends upon the acceptance of our technology, development of sales and distribution channels and our ability to generate significant revenues from the sale of our technology. |
Segments | Segments We follow the authoritative literature that established annual and interim reporting standards for an enterprise's operating segments and related disclosures about its products and services, geographic regions and major customers. We operate our business as one operating segment. Our chief operating decision makers are our Chief Executive Officer and Chief Financial Officer, who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We extend credit to customers based upon an evaluation of the customer's financial condition. As of June 30, 2017 and December 31, 2016 , no individual customer accounted for 10% or more of total accounts receivable. For the three and six months ended June 30, 2017 and 2016 , no individual customer represented 10% or more of our total revenues. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-09 related to stock-based compensation. The guidance, which simplifies the accounting and presentation for share-based payments, provides for a number of amendments that impact the accounting for income taxes and the accounting for forfeitures. We adopted this standard in the first quarter of 2017. Upon adoption, we recognized all of the previously unrecognized excess tax benefits related to stock awards using the modified retrospective transition method . These excess tax benefits, recognized upon adoption, were recorded as a deferred tax asset, which was then fully offset by our U.S. federal and state deferred tax asset valuation allowance resulting in no impact to our accumulated deficit. Without the valuation allowance, our deferred tax asset would have increased by $180.9 million . Immediately prior to adoption, we had no unrecognized excess tax benefits related to stock awards in jurisdictions outside the United States. All future excess tax benefits resulting from the settlement of stock awards will be recorded to income tax expense. Prior to the adoption of ASU 2016-09, excess tax benefits related to stock awards were required to be presented as an inflow from financing activities and an outflow from operating activities on the statement of cash flows. Under the new standard, all tax-related cash flows resulting from share-based payments are reported as operating activities. We adopted the new requirement retrospectively, and for the six months ended June 30, 2016 , this resulted in an increase to net cash provided by operating activities of $0.6 million and a corresponding decrease to net cash provided by (used in) financing activities of $0.6 million . Also, as part of the adoption of the standard, we made the policy election to account for forfeitures as they occur. Using the modified retrospective adoption method, we recognized a $0.4 million cumulative-effect increase to our accumulated deficit for previously estimated forfeitures. Recent Accounting Pronouncements Not yet Adopted In May 2014, the FASB issued ASU 2014-09 related to revenue recognition. Since the issuance of ASU 2014-09, the FASB has also issued ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, all of which clarify certain aspects of ASU 2014-09. The new standard will change the way we recognize revenue, including the identification of contractual performance obligations and the allocation of transaction price, to depict the transfer of promised goods or services to customers at the amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. We currently expect to adopt this standard on January 1, 2018 on a modified retrospective basis and expect to apply the new standard only to contracts that are not completed contracts at January 1, 2018. The new standard will impact the timing of revenue recognition related to our on-premises term license agreements. Under existing guidance we recognize revenue related to on-premises term license agreements ratably over the term of the licensing agreement. However, under the new standard we expect that revenue allocable to the license portion of the arrangement will be recognized upon delivery of the license. Maintenance revenue related to on-premises term license agreements will continue to be recognized ratably over the term of the licensing agreement. The new standard may also impact our determination of standalone selling prices, which could impact the allocation of transaction price to each performance obligation, thereby impacting the timing of revenue recognition depending on when each performance obligation is recognized. The impacts to the timing of revenue recognition will also affect our deferred revenue balance. The new standard also requires the capitalization of certain incremental costs of obtaining a contract which will impact the period in which we record our sales commissions expense. Under existing guidance, we generally recognize sales commissions expense upfront. Under the new guidance, we are required to recognize these expenses consistently with the transfer of goods or services. The new standard will also impact our internal control environment, including our financial statement disclosure controls, our business process controls and enhancements necessary to update our business systems. Our evaluation of the new standard will extend into future periods and we will update our disclosures, including the expected impacts of the new standard, as we progress towards the adoption date. In February 2016, the FASB issued ASU 2016-02 related to lease accounting. The new guidance will require lessees to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases that do not meet the definition of a short-term lease. ASU 2016-02 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018 and requires modified retrospective transition. Early adoption is permitted. Under the new standard we anticipate that our current real estate leases will continue to be classified as operating leases and a significant amount of our currently outstanding operating lease commitments will be recorded to the balance sheet as a right-of-use asset and a corresponding lease liability. Our evaluation of the new standard will extend into future periods and we will update our disclosures, including the expected impacts of the new standard, as we progress towards the required adoption date. In January 2017, the FASB issued ASU 2017-04, simplifying the accounting for goodwill impairment. The new guidance removes step two of the two-step quantitative goodwill impairment test, which requires a hypothetical purchase price allocation. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and may be adopted early for any interim or annual goodwill impairment tests performed after January 1, 2017. We currently expect to adopt this standard in 2017 as part of our annual impairment testing performed in the third quarter. We do not believe that this standard will have a material impact on our consolidated financial statements. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Option Activity | A summary of the option activity during the six months ended June 30, 2017 follows: Options Outstanding Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Balances at December 31, 2016 4,486,416 $ 9.59 Options exercised (1,018,437 ) 7.88 Options canceled (78 ) 9.30 Options forfeited (1,761 ) 26.38 Balances at June 30, 2017 3,466,140 $ 10.09 4.89 $ 177,403 Vested and expected to vest at June 30, 2017 3,466,140 $ 10.09 4.89 $ 177,403 Exercisable at June 30, 2017 3,390,360 $ 9.09 4.79 $ 176,917 |
Summary of RSU Activity | A summary of the RSU activity during the six months ended June 30, 2017 follows: Number of Shares Underlying Outstanding RSUs Weighted-Average Grant-Date Fair Value per RSU Non-Vested outstanding at December 31, 2016 7,141,294 $ 65.62 RSUs granted 2,847,408 55.80 RSUs vested (1,679,510 ) 63.12 RSUs forfeited (575,842 ) 66.68 Non-Vested outstanding at June 30, 2017 7,733,350 $ 62.62 |
Summary of Shares Available for Grant | The summary of shares available for issuance of equity based awards (including stock options and RSUs) during the six months ended June 30, 2017 follows: Shares Available for Grant 2013 Plan 2013 ESPP Balances at December 31, 2016 6,342,962 3,503,385 Authorized 3,835,921 767,184 Granted (2,847,408 ) (362,606 ) Canceled 78 — Forfeited 577,603 — Balances at June 30, 2017 7,909,156 3,907,963 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments for Operating Leases, Net of Expected Sublease Receipts | The following table represents our non-cancellable minimum lease payments, net of future expected sublease payments to be received under non-cancellable subleases, remaining as of June 30, 2017 (in thousands): Period Ending Operating Lease Commitments Expected Sublease Receipts Net Remainder of 2017 $ 19,963 $ (2,339 ) $ 17,624 2018 45,086 (7,972 ) 37,114 2019 46,511 (8,603 ) 37,908 2020 44,475 (5,920 ) 38,555 2021 43,602 (717 ) 42,885 Thereafter 216,751 (122 ) 216,629 Total $ 416,388 $ (25,673 ) $ 390,715 |
Segments and Information abou22
Segments and Information about Revenues by Geographic Region (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following table presents our revenues by geographic region of end users who purchased products or services for the periods presented below: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) United States and Canada $ 146,102 $ 141,478 $ 287,598 $ 265,126 International 66,778 57,057 125,188 105,107 Total revenues $ 212,880 $ 198,535 $ 412,786 $ 370,233 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Earnings Per Share, Basic and Diluted | The following table presents the computation of basic and diluted net loss per share: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands, except per share amounts) Net loss per share - basic and diluted Net loss $ (42,522 ) $ (47,522 ) $ (97,169 ) $ (93,100 ) Weighted average shares outstanding used to compute basic and diluted net loss per share 78,511 74,756 77,966 74,286 Net loss per share - basic and diluted $ (0.54 ) $ (0.64 ) $ (1.25 ) $ (1.25 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following shares were excluded from the computation of diluted net loss per share for the periods presented as their effect would have been antidilutive: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Shares subject to outstanding common stock awards 11,452 13,052 11,452 13,052 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets | The following table presents the fair value of our financial assets using the fair value hierarchy: June 30, 2017 Description Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 952,661 $ — $ — $ 952,661 December 31, 2016 Description Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 872,161 $ — $ — $ 872,161 |
Description of Business Narrati
Description of Business Narrative (Details) | Jun. 30, 2017product |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of key products | 5 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Jan. 01, 2017USD ($) | ||
Accounting Policies [Abstract] | ||||
Number of Operating Segments | segment | 1 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash provided by operating activities | $ 134,531 | $ 61,033 | [1] | |
Net cash provided by (used in) financing activities | $ 18,368 | (18,040) | [1] | |
ASU 2016-09 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash provided by operating activities | 600 | |||
Net cash provided by (used in) financing activities | $ 600 | |||
ASU 2016-09 | Accumulated deficit | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative-effect increase to our accumulated deficit for previously estimated forfeitures | $ 400 | |||
ASU 2016-09 | Pro forma | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred tax assets | $ 180,900 | |||
[1] | (1) We adopted Accounting Standards Update ("ASU") 2016-09 in the first quarter of 2017. Prior to the adoption of ASU 2016-09, excess tax benefits related to stock awards were required to be presented as an inflow from financing activities and an outflow from operating activities on the statement of cash flows. Under the new standard, all tax-related cash flows resulting from share-based payments are reported as operating activities. We adopted the new requirement retrospectively, and for the six months ended June 30, 2016, this resulted in an increase to net cash provided by operating activities of $0.6 million and a corresponding decrease to net cash provided by (used in) financing activities of $0.6 million. |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 6 Months Ended | ||
Jun. 30, 2017USD ($)votes$ / sharesshares | Dec. 31, 2016$ / sharesshares | Nov. 01, 2016USD ($) | |
Class of Stock [Line Items] | |||
Preferred Stock, Shares Authorized | shares | 10,000,000 | 10,000,000 | |
Preferred Stock, Par Value (in usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Stock Repurchase Program, Authorized Amount | $ | $ 200,000,000 | ||
Stock Repurchased and Retired During Period, Shares | shares | 703,086 | ||
Stock Repurchased, Average Cost Per Share | $ / shares | $ 56.91 | ||
Stock Repurchased and Retired During Period, Value | $ | $ 40,000,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 140,000,000 | ||
Class B common stock | |||
Class of Stock [Line Items] | |||
Common Stock, Shares Authorized | shares | 75,000,000 | 75,000,000 | |
Common Stock, Par Value (in usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Votes per Share Entitled to Share Holder | votes | 10 | ||
Class A common stock | |||
Class of Stock [Line Items] | |||
Common Stock, Shares Authorized | shares | 750,000,000 | 750,000,000 | |
Common Stock, Par Value (in usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Votes per Share Entitled to Share Holder | votes | 1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details - Narrative) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Option expiration period (in years) | 10 years |
Vesting period (in years) | 4 years |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 442.4 |
Recognition period (in years) | 2 years 7 months 29 days |
2013 ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Maximum Payroll Deduction, Percent | 15.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Purchase Period | 6 months |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% |
Stock-Based Compensation (Det29
Stock-Based Compensation (Details - Options) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Shares | |
Options Outstanding, Shares, Beginning of Period | shares | 4,486,416 |
Options Outstanding, Shares, Options Exercised | shares | (1,018,437) |
Options Outstanding, Shares, Options Canceled | shares | (78) |
Options Outstanding, Shares, Options Forfeited | shares | (1,761) |
Options Outstanding, Shares, End of Period | shares | 3,466,140 |
Options Outstanding, Shares, Vested and Expected to Vest | shares | 3,466,140 |
Options Outstanding, Shares, Exercisable | shares | 3,390,360 |
Weighted Average Exercise Price Per Share | |
Options Outstanding, Weighted Average Exercise Price, Beginning of Period, USD per Share | $ / shares | $ 9.59 |
Options Outstanding, Weighted Average Exercise Price, Options Exercised, USD per Share | $ / shares | 7.88 |
Options Outstanding, Weighted Average Exercise Price, Options Canceled, USD per Share | $ / shares | 9.30 |
Options Outstanding, Weighted Average Exercise Price, Options Forfeited, USD per Share | $ / shares | 26.38 |
Options Outstanding, Weighted Average Exercise Price, End of Period, USD per Share | $ / shares | 10.09 |
Options Outstanding, Weighted Average Exercise Price Per Share, Vested and Expected to Vest, USD per Share | $ / shares | 10.09 |
Options Outstanding, Weighted Average Exercise Price Per Share, Exercisable, USD per Share | $ / shares | $ 9.09 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Options Outstanding, Weighted Average Remaining Contractual Term, End of Period (in years) | 4 years 10 months 19 days |
Options Outstanding, Weighted Average Remaining Contractual Term, Vested and Expected to Vest (in years) | 4 years 10 months 19 days |
Options Outstanding, Weighted Average Remaining Contractual Term, Exercisable (in years) | 4 years 9 months 14 days |
Options Outstanding, Aggregate Intrinsic Value, End of Period | $ | $ 177,403 |
Options Outstanding, Aggregate Intrinsic Value, Vested and Expected to Vest | $ | 177,403 |
Options Outstanding, Aggregate Intrinsic Value, Exercisable | $ | $ 176,917 |
Stock Based Compensation (Detai
Stock Based Compensation (Details - RSUs) - RSUs | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Number of Shares Underlying Outstanding RSUs | |
RSU Shares Outstanding, Beginning of Period | shares | 7,141,294 |
RSUs granted, Shares | shares | 2,847,408 |
RSUs vested, Shares | shares | (1,679,510) |
RSUs forfeited, Shares | shares | (575,842) |
RSU Shares Outstanding, End of Period | shares | 7,733,350 |
Weighted-Average Grant-Date Fair Value per RSU | |
Weighted Average Fair Value, Beginning of Period, USD per Share | $ / shares | $ 65.62 |
Weighted Average Fair Value, RSUs Granted, USD per Share | $ / shares | 55.80 |
Weighted Average Fair Value, RSUs Vested, USD per Share | $ / shares | 63.12 |
Weighted Average Fair Value, RSUs Forfeited, USD per Share | $ / shares | 66.68 |
Weighted Average Fair Value, End of Period, USD per Share | $ / shares | $ 62.62 |
Stock-Based Compensation (Det31
Stock-Based Compensation (Details - Shares Available) | 6 Months Ended |
Jun. 30, 2017shares | |
2013 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Awards, Outstanding [Roll Forward] | |
Equity Based Awards, Beginning of Period, Shares | 6,342,962 |
Authorized, Shares | 3,835,921 |
Granted, Shares | (2,847,408) |
Canceled, Shares | 78 |
Forfeited, Shares | 577,603 |
Equity Based Awards, End of Period, Shares | 7,909,156 |
2013 ESPP | Class A common stock | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Awards, Outstanding [Roll Forward] | |
Equity Based Awards, Beginning of Period, Shares | 3,503,385 |
Authorized, Shares | 767,184 |
Granted, Shares | (362,606) |
Canceled, Shares | 0 |
Forfeited, Shares | 0 |
Equity Based Awards, End of Period, Shares | 3,907,963 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 1,664 | $ 1,666 | $ 4,022 | $ 2,523 |
Effective tax rate | (4.10%) | (3.60%) | (4.30%) | (2.80%) |
Commitments and Contingencies33
Commitments and Contingencies Commitments and Contingencies (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Operating Lease Commitments | |
Operating Lease Commitments, Remainder of 2017 | $ 19,963 |
Operating Lease Commitments, 2018 | 45,086 |
Operating Lease Commitments, 2019 | 46,511 |
Operating Lease Commitments, 2020 | 44,475 |
Operating Lease Commitments, 2021 | 43,602 |
Operating Lease Commitments, Thereafter | 216,751 |
Operating Lease Commitments, Total | 416,388 |
Expected Sublease Receipts | |
Expected Sublease Receipts, Remainder of 2017 | (2,339) |
Expected Sublease Receipts, 2018 | (7,972) |
Expected Sublease Receipts, 2019 | (8,603) |
Expected Sublease Receipts, 2020 | (5,920) |
Expected Sublease Receipts, 2021 | (717) |
Expected Sublease Receipts, Thereafter | (122) |
Expected Sublease Receipts, Total | (25,673) |
Net | |
Net, Remainder of 2017 | 17,624 |
Net, 2018 | 37,114 |
Net, 2019 | 37,908 |
Net, 2020 | 38,555 |
Net, 2021 | 42,885 |
Net, Thereafter | 216,629 |
Net, Total | 390,715 |
Lease Obligations and Related Exit Costs | 10,300 |
Cease-Use Loss | 4,800 |
Sublease Expenses | $ 1,300 |
Segments and Information abou34
Segments and Information about Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 212,880 | $ 198,535 | $ 412,786 | $ 370,233 |
United States and Canada | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 146,102 | 141,478 | 287,598 | 265,126 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 66,778 | $ 57,057 | $ 125,188 | $ 105,107 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net loss per share - basic and diluted | ||||
Net loss | $ (42,522) | $ (47,522) | $ (97,169) | $ (93,100) |
Weighted average shares outstanding used to compute basic and diluted net loss per share | 78,511 | 74,756 | 77,966 | 74,286 |
Net loss per share - basic and diluted (in usd per share) | $ (0.54) | $ (0.64) | $ (1.25) | $ (1.25) |
Antidilutive shares excluded from computation of diluted net loss | 11,452 | 13,052 | 11,452 | 13,052 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Money market funds - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments Fair Value | $ 952,661 | $ 872,161 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments Fair Value | 952,661 | 872,161 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments Fair Value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments Fair Value | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Aug. 01, 2017USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Cash paid for acquisition | $ 24.1 |