Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 24, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | QLIK | |
Entity Registrant Name | QLIK TECHNOLOGIES INC | |
Entity Central Index Key | 1,305,294 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 92,362,783 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 306,353 | $ 244,018 |
Accounts receivable, net of allowance for doubtful accounts of $1,177 and $1,783, respectively | 150,922 | 203,766 |
Prepaid expenses and other current assets | 16,987 | 19,901 |
Deferred income taxes | 2,082 | 2,082 |
Total current assets | 476,344 | 469,767 |
Property and equipment, net | 28,734 | 26,455 |
Intangible assets, net | 14,040 | 21,195 |
Goodwill | 38,569 | 38,702 |
Deferred income taxes | 2,658 | 3,015 |
Deposits and other noncurrent assets | 5,165 | 2,835 |
Total assets | 565,510 | 561,969 |
Current liabilities: | ||
Income taxes payable | 2,139 | |
Accounts payable | 6,497 | 6,887 |
Deferred revenue | 135,813 | 127,565 |
Accrued payroll and other related costs | 54,127 | 53,674 |
Accrued expenses | 36,386 | 40,712 |
Deferred income taxes | 37 | 37 |
Total current liabilities | 232,860 | 231,014 |
Long-term liabilities: | ||
Deferred revenue | 6,368 | 4,564 |
Deferred income taxes | 2,135 | 3,477 |
Other long-term liabilities | 12,011 | 14,422 |
Total liabilities | $ 253,374 | $ 253,477 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value, 10,000,000 authorized, none issued and outstanding at June 30, 2015 and December 31, 2014 | ||
Common stock, $0.0001 par value, 300,000,000 shares authorized; 92,345,116 shares issued and outstanding at June 30, 2015 and 90,852,434 shares issued and outstanding at December 31, 2014 | $ 9 | $ 9 |
Additional paid-in capital | 376,329 | 327,419 |
Accumulated deficit | (64,916) | (21,594) |
Accumulated other comprehensive income | 714 | 2,658 |
Total stockholders' equity | 312,136 | 308,492 |
Total liabilities and stockholders' equity | $ 565,510 | $ 561,969 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,177 | $ 1,783 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
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 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 92,354,116 | 90,852,434 |
Common stock, outstanding | 92,354,116 | 90,852,434 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
License revenue | $ 76,320 | $ 66,942 | $ 131,127 | $ 120,825 |
Maintenance revenue | 55,983 | 50,889 | 108,653 | 96,734 |
Professional services revenue | 13,526 | 13,787 | 26,313 | 25,171 |
Total revenue | 145,829 | 131,618 | 266,093 | 242,730 |
Cost of revenue: | ||||
License revenue | 2,437 | 1,785 | 4,409 | 3,291 |
Maintenance revenue | 2,681 | 2,768 | 5,939 | 5,825 |
Professional services revenue | 17,076 | 14,256 | 32,987 | 27,732 |
Total cost of revenue | 22,194 | 18,809 | 43,335 | 36,848 |
Gross profit | 123,635 | 112,809 | 222,758 | 205,882 |
Operating expenses: | ||||
Sales and marketing | 86,792 | 75,691 | 163,433 | 148,454 |
Research and development | 18,793 | 17,588 | 36,188 | 34,634 |
General and administrative | 27,964 | 26,531 | 57,138 | 53,292 |
Total operating expenses | 133,549 | 119,810 | 256,759 | 236,380 |
Loss from operations | (9,914) | (7,001) | (34,001) | (30,498) |
Other expense, net: | ||||
Interest income, net | 35 | 40 | 65 | 75 |
Foreign exchange loss, net | (3,241) | (51) | (1,846) | (414) |
Total other expense, net | (3,206) | (11) | (1,781) | (339) |
Loss before income taxes | (13,120) | (7,012) | (35,782) | (30,837) |
Benefit (expense) for income taxes | 118 | (3,194) | (7,540) | (5,249) |
Net loss | $ (13,002) | $ (10,206) | $ (43,322) | $ (36,086) |
Net loss per common share: | ||||
Basic and diluted | $ (0.14) | $ (0.11) | $ (0.47) | $ (0.40) |
Weighted average number of common shares outstanding: | ||||
Basic and diluted | 91,721,926 | 89,753,523 | 91,362,617 | 89,480,446 |
Unaudited Consolidated Stateme5
Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (13,002) | $ (10,206) | $ (43,322) | $ (36,086) |
Other comprehensive income: | ||||
Foreign currency translation gains (losses) | (198) | 43 | 1,944 | 307 |
Comprehensive loss | $ (13,200) | $ (10,163) | $ (41,378) | $ (35,779) |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (43,322) | $ (36,086) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 6,959 | 5,136 |
Stock-based compensation expense | 19,060 | 16,516 |
Excess tax benefit from stock-based compensation | (5,434) | (4,171) |
Unrealized foreign currency loss, net | 7,736 | 1,198 |
Other non-cash items | (62) | 432 |
Changes in assets and liabilities: | ||
Accounts receivable | 43,640 | 35,193 |
Prepaid expenses and other assets | 1,155 | (131) |
Deferred revenue | 15,390 | 10,937 |
Accrued expenses and other liabilities | 4,485 | (5,556) |
Net cash provided by operating activities | 49,607 | 23,468 |
Cash flows from investing activities | ||
Acquisitions, net of cash acquired | (2,842) | |
Capital expenditures | (7,834) | (7,865) |
Net cash used in investing activities | (10,676) | (7,865) |
Cash flows from financing activities | ||
Proceeds from exercise of common stock options | 24,416 | 8,115 |
Excess tax benefit from stock-based compensation | 5,434 | 4,171 |
Net cash provided by financing activities | 29,850 | 12,286 |
Effect of exchange rates on cash and cash equivalents | (6,446) | (547) |
Net increase in cash and cash equivalents | 62,335 | 27,342 |
Cash and cash equivalents, beginning of period | 244,018 | 227,693 |
Cash and cash equivalents, end of period | 306,353 | 255,035 |
Supplemental cash flow information: | ||
Cash paid during the period for income taxes | $ 3,564 | 3,997 |
Non-cash investing activities: | ||
Tenant improvement allowances received under operating leases | $ 1,048 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | (1) Description of Business Qlik Technologies Inc. (“We”, “Qlik” or the “Company”) has pioneered powerful, user-driven business intelligence (“BI”) solutions that enable its customers to make better, faster and more informed business decisions, wherever they are. The Company’s software products help people create and share insights and analysis in groups and across organizations. Business users can explore data, ask and answer their own stream of questions and follow their own path to insight, or collaborate across teams and organizations. Through its wholly owned subsidiaries, the Company sells software solutions that are powered by the Company’s in-memory engine which maintains associations in data and calculates aggregations rapidly, as business users interact with the Company’s software. The Company’s software products are designed to give customers significant improvements in usability, flexibility and performance at lower costs compared to traditional BI solutions. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | (2) Significant Accounting Policies Significant Accounting Policies The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K (file number 001-34803), filed with the Securities and Exchange Commission (“SEC”) on February 27, 2015. Since the date of those financial statements, there have been no material changes to the Company’s significant accounting policies. Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated. Prior year amounts have been reclassified where appropriate to conform to the current year classification for comparative purposes. Interim Financial Statements These interim consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) on the same basis as the audited consolidated financial statements for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K, filed with the SEC on February 27, 2015 and, in the opinion of management, include all adjustments of a normal recurring nature considered necessary to present fairly the Company’s financial position at June 30, 2015, the results of operations and comprehensive loss for the three and six months ended June 30, 2015 and 2014 and cash flows for the six months ended June 30, 2015 and 2014. The results of operations for the three and six months ended June 30, 2015 and 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any other future periods. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted under the SEC’s rules and regulations. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2014. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to the Quarterly Report on Form 10-Q and, therefore, do not include all information and footnotes required by U.S. GAAP for complete financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company evaluates its estimates, including those related to the accounts receivable allowance, useful lives of long-lived assets, the recoverability of goodwill and other intangible assets, assessing fair values of assets and liabilities acquired in and contingent consideration related to business acquisitions, and assumptions used for the purpose of determining stock-based compensation expense and income taxes, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities as well as reported revenues and expenses during the periods presented. Foreign Currency Translation The financial statements of the Company’s foreign operations are measured using the local currency as the functional currency. The local currency assets and liabilities are translated at the rate of exchange to the United States (“U.S.”) dollar on the balance sheet date and the local currency revenues and expenses are translated at average rates of exchange to the U.S. dollar during the reporting periods. Foreign currency transaction gains (losses) have been reflected as a component of other income (expense), net within the Company’s consolidated statements of operations and foreign currency translation gains (losses) have been included as a component of the Company’s consolidated statements of comprehensive loss and accumulated other comprehensive income within the Company’s consolidated balance sheets. Business Combinations The Company recognizes assets acquired, liabilities assumed and any contingent consideration related to business combinations at fair value on the date of acquisition. The purchase price allocation process requires management to make significant estimates and assumptions with respect to the fair value of any intangible assets acquired, deferred revenues assumed, or contingent consideration within the arrangement. Unanticipated events and circumstances may occur which may affect the accuracy or validity of such assumptions or estimates. All subsequent changes to a valuation allowance or uncertain tax position related to the acquired company that occur within the measurement period and are based on facts and circumstances that existed at the acquisition date are recognized as an adjustment to goodwill. Acquisition-related transaction costs, including legal and accounting fees and other external costs directly related to the acquisition, are recognized separately from the acquisition and expensed as incurred in general and administrative expenses in the consolidated statements of operations. Revenue Recognition The Company derives its revenues from three sources: (i) license revenues; (ii) maintenance revenues; and (iii) professional services revenues. The majority of license revenue is from the sale of perpetual licenses to customers or resellers. Maintenance revenue, which generally has a contractual term of 12 months, includes telephone and web-based support and rights to software updates and upgrades on a when-and-if-available basis. Professional services revenue includes training, implementation, consulting and expert services. For each arrangement, the Company recognizes revenue when (a) persuasive evidence of an arrangement exists, such as a signed contract or purchase order; (b) delivery of the product has occurred and there are no remaining obligations or substantive customer acceptance provisions; (c) the fee is fixed or determinable; and (d) collection of the fee is deemed reasonably assured. Delivery is considered to have occurred upon electronic transfer of the license key that provides immediate availability of the product to the purchaser. As substantially all of the Company’s software licenses are sold in multiple-element arrangements that include either maintenance or both maintenance and professional services, the Company uses the residual method to determine the amount of license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon vendor-specific objective evidence (“VSOE”) of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as license revenue. The Company has established VSOE of the fair value of maintenance through independent maintenance renewals, which demonstrate a consistent relationship of maintenance pricing as a percentage of the contractual license fee, and for new products for which renewals have not yet occurred, the Company has established VSOE of maintenance based on prices established by management with relevant authority. Maintenance revenue is deferred and recognized ratably over the contractual period of the maintenance arrangement, which is generally 12 months. Arrangements that include other professional services are evaluated to determine whether those services are essential to the functionality of other elements of the arrangement. The Company has determined that these services are not considered essential and the amounts allocated to the services are recognized as revenue when the services are performed. The VSOE of the fair value of the Company’s professional services is based on the price for these same services when they are sold separately. Revenue for services that are sold either on a stand-alone basis or included in multiple-element arrangements is recognized as the services are performed. Certain of the Company’s license arrangements include license remix rights which allow the customer to change or alternate its use of the Company’s products after those products have been delivered to the customer. Under these arrangements, the customer has the right to deploy and use at least one copy of each licensed product, and the cumulative value of all products in use cannot exceed the total license fee. Assuming all other revenue recognition criteria have been met, the Company recognizes revenue under these arrangements upon delivery of the first license key of each product eligible for remix under the arrangement. For sales made through resellers, the Company recognizes revenue upon the delivery of the license key only if those resellers provide the Company, at the time of placing their order, with the identity of the end-user customer to whom the product has been sold. Resellers do not carry inventory of the Company’s software products and, generally, do not have the right to return the Company’s software products. Sales made through resellers are evidenced by a reseller agreement, together with purchase orders on a transaction-by-transaction basis. The Company also sells software licenses to original equipment manufacturers (“OEMs”) who integrate the Company’s products for distribution with their applications. The Company does not offer any rights to return products sold to OEM’s. The OEM’s end-user customer is licensed to use the Company’s products solely in conjunction with the OEM’s application. In OEM arrangements, license key delivery is required as the basis for revenue recognition. The Company recognizes revenue under its OEM arrangements when (a) persuasive evidence of an arrangement exists, such as a signed contract or purchase order; (b) delivery of the product has occurred and there are no remaining obligations or substantive customer acceptance provisions; (c) the fee is fixed or determinable; and (d) collection of the fee is deemed reasonably assured. The Company records taxes collected on revenue-producing activities on a net basis. Stock-Based Compensation The Company recognizes the cost of stock-based compensation based on the fair value of those awards at the date of grant over the requisite service period on a straight-line basis. The Company uses the Black-Scholes-Merton (“Black-Scholes”) option pricing model to determine the fair value of common stock option awards and Stock-settled Stock Appreciation Rights (“SSARs”). The fair value of a restricted stock unit is determined by using the closing price of the Company’s common stock on the date of grant. The fair value of Maximum Value Stock-settled Stock Appreciation Rights (“MVSSSARs”) is determined by utilizing a lattice model under the option pricing method. Stock-based compensation plans, related expenses and assumptions used in the Black-Scholes option pricing model and the lattice model under the option pricing method are more fully described in Note 8 to these unaudited consolidated financial statements. Stock-based compensation expense is recorded within cost of revenue, sales and marketing, research and development and general and administrative expenses in the consolidated statements of operations. The following table sets forth the total stock-based compensation expense included in the unaudited consolidated statements of operations for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Cost of revenue $ 773 $ 639 $ 1,798 $ 1,195 Sales and marketing 4,757 4,199 9,427 8,306 Research and development 1,034 1,023 1,990 1,834 General and administrative 3,099 2,817 5,845 5,181 Total $ 9,663 $ 8,678 $ 19,060 $ 16,516 Net Loss per Common Share The following table sets forth the computation of basic and diluted net loss per common share for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands, except share and per share data) Basic and diluted net loss per common share calculation: Net loss $ (13,002 ) $ (10,206 ) $ (43,322 ) $ (36,086 ) Weighted average common shares outstanding: Basic and diluted 91,721,926 89,753,523 91,362,617 89,480,446 Net loss per common share: Basic and diluted $ (0.14 ) $ (0.11 ) $ (0.47 ) $ (0.40 ) Diluted net loss per common share for the three and six months ended June 30, 2015 and 2014 does not reflect the potential issuance of common shares underlying the following securities as the effect would be anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Common stock options 9,613,178 10,288,496 9,613,178 10,288,496 SSARs 268,166 165,260 268,166 165,260 Restricted stock units 1,226,814 1,040,697 1,226,814 1,040,697 MVSSSARs 391,754 460,188 391,754 460,188 Total anti-dilutive securities 11,499,912 11,954,641 11,499,912 11,954,641 Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or consolidated results of operations upon adoption. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP. The guidance is effective for annual reporting periods beginning after December 31, 2017, and interim periods therein. Early adoption is permitted for periods beginning after December 31, 2016. ASU 2014-09 can be adopted using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. The Company is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements and has not yet selected a transition method, nor has it determined the effect of the standard on its ongoing financial reporting. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15), to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the Company beginning in the first quarter of 2016 with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | (3) Acquisitions Vizubi On December 23, 2014, the Company acquired all of the outstanding shares of Vizubi Software S.r.l., an Italian company, and all of the outstanding shares of Vizubi, Inc., a U.S. corporation (collectively “Vizubi”). Vizubi’s NPrinting product allows organizations to create visually-appealing reports with drag-and-drop simplicity, in a variety of popular formats, using data and analytics from QlikView. The Company purchased Vizubi for a total maximum purchase price of approximately $21.3 million. The Company paid approximately $6.8 million to the former Vizubi shareholders at closing. In addition, the preliminary purchase price included approximately $2.7 million of deferred payments related to a working capital price adjustment that was paid in the second quarter of 2015. The total maximum purchase price also includes approximately $11.7 million of contingent consideration payable upon the achievement of certain product development milestones and financial targets as set forth in the purchase agreement governing the transaction. At the purchase date, the Company estimated the fair value of the contingent consideration at approximately $9.0 million, and therefore, this amount was included in the preliminary purchase price. The contingent consideration is payable at various intervals through December 31, 2017. The results of operations and financial position of Vizubi are included in the Company’s consolidated financial statements from and after the date of acquisition. The inclusion of Vizubi did not have a material impact on the Company’s unaudited consolidated financial results for the three and six months ended June 30, 2015. The total preliminary purchase price at December 23, 2014 is summarized in the following table (in thousands): Amount of cash paid $ 9,571 Fair value of contingent consideration 8,992 Total preliminary purchase price $ 18,563 The following table summarizes the preliminary estimated fair values of the assets acquired and the liabilities assumed at December 23, 2014 (in thousands): Intangible assets $ 5,301 Goodwill 12,651 Cash 1,088 Accounts receivable 1,671 Other assets 410 Liabilities assumed (893 ) Deferred tax liability (1,665 ) Total preliminary purchase price $ 18,563 During the first quarter of 2015, the Company revised its preliminary purchase price allocation to finite-lived intangible assets from approximately $9.6 million as of December 31, 2014 to approximately $5.3 million, of which the Company estimated approximately $3.7 million was related to developed technology and approximately $1.6 million was related to customer relationships. The value assigned to Vizubi’s developed technology was determined by using the excess earnings method. Under this method, the value of the developed technology is a function of the estimated obsolescence curve of the developed technology as of the corresponding valuation date, the expected future net cash flows generated by the developed technology and the discount rate that reflects the level of risk associated with receiving future cash flows attributable to the developed technology. The identified finite intangible assets will be amortized over their estimated useful life. The fair value of the contingent consideration was determined using a discounted cash flow model. Under this model, the fair value of the contingent consideration is a function of the probability of achieving the milestones, the estimated achievement date of the milestones and the discount rate that reflects the level of risk associated with the liability. After preliminarily allocating the purchase price to the assets acquired and liabilities assumed based on an estimation of their fair values at the date of acquisition, the Company recorded goodwill of approximately $12.7 million related to this acquisition. Goodwill represents the excess of the purchase price over the net identifiable tangible and intangible assets acquired. The Company believes the goodwill related to the acquisition was a result of the expected synergies to be realized from combining operations and is not expected to be deductible for income tax purposes. During the first quarter of 2015, the Company revised its preliminary purchase price allocation which increased goodwill by approximately $2.4 million, primarily as a result of the decrease in finite-lived intangible assets of approximately $4.3 million and a decrease in the assumed deferred income tax liabilities of approximately $1.3 million, as well as other immaterial adjustments. The Company’s finalization of the purchase price allocation, including the valuation of assets acquired, intangible assets acquired, liabilities assumed and deferred income taxes assumed, related to the acquisition is in process as of June 30, 2015. The items pending finalization include the valuation of acquired intangible assets, the assumed deferred revenue and the evaluation of deferred income taxes. The Company expects to complete this purchase price allocation during the third quarter of 2015. DataMarket On October 21, 2014, the Company acquired all of the outstanding shares of DataMarket ehf. (“DataMarket”), an Icelandic company. DataMarket specializes in the provisioning of data for analysis. The Company purchased DataMarket for a total maximum purchase price of approximately $13.3 million. The Company paid approximately $11.5 million to the former DataMarket shareholders at closing. In addition, the purchase price included approximately $0.1 million of deferred payments related to an asset value holdback, which was paid in the first quarter of 2015. The total maximum purchase price also includes approximately $1.7 million of contingent consideration payable upon the achievement of certain product development milestones and financial targets as set forth in the purchase agreement governing the transaction. At the purchase date, the Company estimated the fair value of the contingent consideration at approximately $1.6 million, and therefore, this amount was included in the purchase price. The contingent consideration is payable at various intervals through September 30, 2017. The results of operations and financial position of DataMarket are included in the Company’s consolidated financial statements from and after the date of acquisition. The inclusion of DataMarket did not have a material impact on the Company’s unaudited consolidated financial results for the three and six months ended June 30, 2015. The total purchase price at October 21, 2014 is summarized in the following table (in thousands): Amount of cash paid $ 11,637 Fair value of contingent consideration 1,567 Total purchase price $ 13,204 The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at October 21, 2014 (in thousands): Intangible assets $ 3,911 Goodwill 9,876 Cash 23 Accounts receivable 98 Other assets 87 Deferred tax asset 393 Liabilities assumed (402 ) Deferred tax liability (782 ) Total purchase price $ 13,204 The Company allocated approximately $3.9 million of the purchase price to finite-lived intangible assets, of which approximately $2.8 million was related to developed technology, approximately $1.0 million was related to customer relationships and approximately $0.1 million was related to trade name. The value assigned to DataMarket’s developed technology was determined by using the excess earnings method. Under this method, the value of the developed technology is a function of the estimated obsolescence curve of the developed technology as of the corresponding valuation date, the expected future net cash flows generated by the developed technology and the discount rate that reflects the level of risk associated with receiving future cash flows attributable to the developed technology. The Company amortizes the developed technology on a straight-line basis over an estimated useful life of eight years and the Company amortizes the customer relationships and trade name on a straight-line basis over an estimated useful life of four years. The fair value of the contingent consideration was determined using a discounted cash flow model. Under this model, the fair value of the contingent consideration is a function of the probability of achieving the milestones, the estimated achievement date of the milestones and the discount rate that reflects the level of risk associated with the liability. After allocating the purchase price to the assets acquired and liabilities assumed based on an estimation of their fair values at the date of acquisition, the Company recorded goodwill of approximately $9.9 million related to this acquisition. Goodwill represents the excess of the purchase price over the net identifiable tangible and intangible assets acquired. The Company believes the goodwill related to the acquisition was a result of the expected synergies to be realized from combining operations and is not expected to be deductible for income tax purposes. The Company finalized the purchase price allocation, including the valuation of assets acquired, intangible assets acquired, liabilities assumed and deferred income taxes assumed, related to the acquisition during the first quarter of 2015, and there were no changes from the preliminary purchase price allocation. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | (4) Goodwill and Other Intangible Assets The Company tests goodwill resulting from acquisitions for impairment annually on October 1, or whenever events or changes in circumstances indicate impairment. There was no impairment in the three and six months ended June 30, 2015 and 2014. The change in goodwill in the consolidated balance sheet as of June 30, 2015 from December 31, 2014 was primarily due to an adjustment of Vizubi’s preliminary purchase price allocation of approximately $2.4 million offset by the effect of foreign currency translation of approximately $2.5 million. The following table provides information regarding the Company’s intangible assets subject to amortization: June 30, 2015 December 31, 2014 Gross Accumulated Net Gross Accumulated Net (in thousands) Acquired technology $ 16,551 $ (6,034 ) $ 10,517 $ 21,740 $ (4,885 ) $ 16,855 Customer relationships and other identified intangible assets 4,627 (1,161 ) 3,466 4,790 (923 ) 3,867 Trade names 390 (333 ) 57 766 (293 ) 473 Total $ 21,568 $ (7,528 ) $ 14,040 $ 27,296 $ (6,101 ) $ 21,195 The change in intangible assets in the consolidated balance sheet as of June 30, 2015 from December 31, 2014 was due to a decrease related to an adjustment of Vizubi’s preliminary purchase price allocation of approximately $4.3 million (See Note 3), the amortization of intangible assets and the effect of foreign currency translation. Amortization of intangible assets was approximately $0.9 million and $0.8 million for the three months ended June 30, 2015 and 2014, respectively. Amortization of intangible assets was approximately $1.8 million and $1.6 million for the six months ended June 30, 2015 and 2014, respectively. The estimated aggregate amortization expense for each of the succeeding years is as follows: $1.7 million for the remainder of 2015; $3.4 million in 2016; $2.9 million in 2017; $1.7 million in 2018; $1.1 million in 2019; and $3.2 million thereafter. The weighted-average amortization period for all intangible assets is approximately 6.2 years. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (5) Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The Company evaluates the fair value of certain assets and liabilities using the following fair value hierarchy which ranks the quality and reliability of inputs, or assumptions, used in the determination of fair value: • Level 1 – quoted prices in active markets for identical assets and liabilities • Level 2 – inputs other than Level 1 quoted prices that are directly or indirectly observable • Level 3 – unobservable inputs that are not corroborated by market data The Company is exposed to certain risks related to its ongoing business operations, including the fluctuation of foreign currency exchange rates. The Company uses short-term foreign currency forward contracts as part of its strategy to manage these risks, but does not hold or issue these or any other types of derivative instruments for trading purposes or speculation. The Company uses these short-term foreign currency forward contracts to manage foreign currency exchange rate risks related to certain intercompany borrowings. The Company executes these instruments with financial institutions that hold an investment grade credit rating. These short-term foreign currency forward contracts do not meet the requirements for hedge accounting and are recorded on the Company’s balance sheet as either an asset or liability measured at their fair value as of the reporting date. The changes in the fair value of derivative instruments, as measured using the three-level hierarchy described above, are recognized in other expense, net, in the Company’s unaudited consolidated statements of operations. The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by the Company. The following table sets forth the Company’s assets and liabilities that were measured at fair value as of June 30, 2015 and December 31, 2014, by level within the fair value hierarchy: Amounts at Fair Value Fair Value Measurement Using Level 1 Level 2 Level 3 (in thousands) As of June 30, 2015 Assets Cash and cash equivalents $ 306,353 $ 306,353 $ — $ — Foreign currency contracts $ 859 $ — $ 859 $ — Liabilities Accrued contingent consideration $ 10,654 $ — $ — $ 10,654 As of December 31, 2014 Assets Cash and cash equivalents $ 244,018 $ 244,018 $ — $ — Liabilities Accrued contingent consideration $ 10,492 $ — $ — $ 10,492 Foreign currency contracts $ 908 $ — $ 908 $ — The fair value of the Company’s foreign currency short-term forward contracts is determined using Level 2 observable market inputs to extrapolate forward points to be added to or subtracted from the closing market spot rate on the reporting date, and then discounted to present value. As of June 30, 2015, the Company had one short-term foreign currency forward contract outstanding to sell Swedish kronor with a notional value of $107.0 million U.S. dollars. As of June 30, 2015, the unrealized gain on the Company’s short-term foreign currency forward contract was approximately $0.9 million and is recorded within other current assets on the unaudited consolidated balance sheet. At December 31, 2014, the Company had one short-term foreign currency forward contract outstanding to sell Swedish kronor with a notional value of $107.0 million U.S. dollars. As of December 31, 2014, the unrealized loss on the Company’s short-term foreign currency forward contract was approximately $0.9 million and was recorded within accrued expenses on the audited consolidated balance sheet. For the three months ended June 30, 2015 and 2014, the unaudited consolidated statements of operations reflect a loss of approximately $3.8 million and a gain of approximately $0.9 million, respectively, within foreign exchange loss, net, related to short-term foreign currency forward contracts. For the six months ended June 30, 2015 and 2014, the unaudited consolidated statements of operations reflect a gain of approximately $6.1 million and $0.9 million, respectively, within foreign exchange loss, net, related to short-term foreign currency forward contracts. A reconciliation of the beginning and ending balances of acquisition-related accrued contingent consideration using significant unobservable inputs (Level 3) for the six months ended June 30, 2015 follows (in thousands): Accrued contingent consideration as of December 31, 2014 $ 10,492 Change in fair value of contingent consideration 162 Accrued contingent consideration as of June 30, 2015 $ 10,654 The accrued contingent consideration liability is related to acquisition-related contingent consideration. During the year ended December 31, 2014, the Company recorded approximately $10.5 million that is payable based on the achievement of certain product development milestones and financial targets related to the DataMarket and Vizubi acquisitions. During the six months ended June 30, 2015, the Company recorded a charge of approximately $0.2 million within operating expenses to mark the liability to its estimated fair value as of June 30, 2015. Assets and liabilities that are measured at fair value on a non-recurring basis include intangible assets and goodwill. These items are recognized at fair value in the period in which an acquisition is completed, or when they are considered to be impaired. These non-recurring fair value measurements, primarily for intangible assets acquired, were based on Level 3 unobservable inputs. There were no other non-recurring fair value adjustments recorded during the three and six months ended June 30, 2015. |
Income Tax Provision
Income Tax Provision | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | (6) Income Tax Provision In accordance with FASB Accounting Standards Codification 740, Income Taxes For the three months ended June 30, 2015, the Company recorded a benefit for income taxes of approximately $0.1 million, which resulted in an effective tax rate of approximately 0.9%, compared to an income tax expense of approximately $3.1 million, or an effective tax rate of approximately (45.6%), for the three months ended June 30, 2014. For the six months ended June 30, 2015, the Company recorded an income tax expense of approximately $7.5 million, which resulted in an effective tax rate of approximately (21.1%), compared to an income tax expense of approximately $5.2 million, or an effective tax rate of approximately (17.0%), for the six months ended June 30, 2014. As of June 30, 2015, a full valuation allowance has been recorded against its U.S. and Swedish deferred income tax assets, based on an analysis of positive and negative evidence, including analyzing three-year cumulative pre-tax income or loss as well as other quantitative and qualitative information. The effective tax rate for the three and six months ended June 30, 2015 and 2014 is primarily driven by foreign tax rate differential, the impact of discrete items, the effects of permanent differences and the changes in the valuation allowance on deferred income tax assets. The primary differences between the effective tax rates for the three and six months ended June 30, 2015 and 2014 relate to relative differences in the distribution of income and losses in jurisdictions in which the Company operates, changes in the valuation allowances against deferred income tax assets, the impact of the permanent differences and discrete items. The Company’s liability for unrecognized tax benefits (including penalties and interest) was approximately $1.5 million as of June 30, 2015 and December 31, 2014. The Company does not expect that the total amount of unrecognized tax benefits will change significantly during the next twelve months. See Note 7 to the audited consolidated financial statements for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K, filed with the SEC on February 27, 2015, for more detailed information regarding unrecognized tax benefits. |
Business and Geographic Segment
Business and Geographic Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Business and Geographic Segment Information | (7) Business and Geographic Segment Information The Company currently operates in one operating business segment, namely, the development, commercialization and implementation of software products and related services. The Company is managed and operated as one business. A single management team that reports to the chief operating decision maker comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities with respect to its products or product development. The following geographic data includes revenues generated by subsidiaries located within that geographic region. The Company’s revenues were generated in the following geographic regions for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) The Americas $ 54,262 $ 46,632 $ 97,129 $ 83,484 Europe 74,606 70,356 137,623 133,129 Rest of world 16,961 14,630 31,341 26,117 Total $ 145,829 $ 131,618 $ 266,093 $ 242,730 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | (8) Stock-Based Compensation The Company’s 2010 Equity Incentive Plan (“2010 Plan”) took effect on the effective date of the registration statement, July 16, 2010, for the Company’s initial public offering (“IPO”). The Company initially reserved 3,300,000 shares of its common stock for issuance under the 2010 Plan. The number of shares reserved for issuance under the 2010 Plan will be increased automatically on January 1st of each year by a number equal to the smallest of (i) 3,300,000 shares; (ii) 3.75% of the shares of common stock outstanding at that time; or (iii) a number of shares determined by the Company’s Board of Directors. In February 2015, the Board of Directors of the Company authorized an increase to the 2010 Plan equal to 3,300,000 shares. As of June 30, 2015, there were approximately 5.1 million shares of common stock available for issuance under the 2010 Plan. Common Stock Options and SSARs The following provides a summary of the common stock option activity for the Company for the six months ended June 30, 2015: Number of Weighted- Weighted- Aggregrate Outstanding as of January 1, 2015 9,820,583 $ 22.62 7.70 Granted 1,138,507 $ 36.84 Exercised (1,084,543 ) $ 22.51 Forfeited (261,369 ) $ 25.58 Outstanding as of June 30, 2015 9,613,178 $ 24.24 7.53 $ 105,533 Exercisable at June 30, 2015 4,870,343 $ 20.85 6.41 $ 68,726 Vested at June 30, 2015 and expected to vest in future periods 9,113,809 $ 24.08 7.47 $ 101,411 The grant date weighted-average fair value for common stock options granted during the six months ended June 30, 2015 and 2014 was $15.88 and $9.55, respectively. Stock-based compensation expense related to common stock options is amortized on a straight-line basis over the vesting period. Proceeds from the exercise of common stock options were approximately $24.4 million and $8.1 million for the six months ended June 30, 2015 and 2014, respectively. The total intrinsic value of common stock options exercised during the six months ended June 30, 2015 and 2014 was approximately $13.1 million and $13.7 million, respectively. As a result of expected full year taxable income in certain tax jurisdictions, the Company recorded an excess tax benefit from stock-based compensation of approximately $5.4 million and $4.2 million for the six months ended June 30, 2015 and 2014, respectively. The following provides a summary of the SSARs activity for the Company for the six months ended June 30, 2015: Number of Weighted- Weighted- Aggregrate Outstanding as of January 1, 2015 276,837 $ 28.28 Granted 6,993 $ 37.32 Exercised (5,674 ) $ 27.00 Forfeited (9,990 ) $ 27.00 Outstanding as of June 30, 2015 268,166 $ 28.59 8.88 $ 1,723 Exercisable at June 30, 2015 81,271 $ 28.37 8.85 $ 536 Vested at June 30, 2015 and expected to vest in future periods 256,099 $ 28.67 8.87 $ 1,626 The grant date weighted-average fair value for SSARs granted during the six months ended June 30, 2015 and 2014 was $16.09 and $11.79, respectively. Stock-based compensation expense related to SSARs is amortized on a straight-line basis over the vesting period. For the six months ended June 30, 2015, the Company settled 5,674 SSARs by issuing 1,403 shares of the Company’s common stock. For the six months ended June 30, 2014, there were no SSARs settled. The assumptions used in the Black-Scholes option pricing model are: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Expected dividend yield 0.0% 0.0% 0.0% 0.0% Risk-free interest rate 1.4%-1.8% 1.7%-1.8% 1.4%-1.8% 1.5%-1.8% Expected volatility 45.6%-46.2% 43.5%-44.0% 45.6%-47.1% 43.2%-44.9% Expected life (in years) 5.34 5.36 5.13-5.34 5.16-5.36 The Company uses the Black-Scholes option-pricing model to value common stock option awards and SSARs. The Black-Scholes option-pricing model requires the input of subjective assumptions, including the expected term of the stock-based compensation awards and stock price volatility. During the first quarter of 2015, the Company began to exclusively utilize its own historical stock price volatility to estimate the expected stock price volatility over the expected term as the Company now believes that it has a sufficient amount of experience as a public company to provide a reasonable basis for the calculation of the expected stock price volatility. For common stock options and SSARs granted prior to the first quarter of 2015, the Company used blended volatility to estimate expected volatility. Blended volatility included a weighting of the Company’s historical volatility from the date of its IPO to the respective grant date and an average of the Company’s peer group historical volatility consistent with the expected term of the common stock options. The Company’s peer group volatility included the historical volatility of certain companies that share similar characteristics in terms of revenue size and industry. This change in estimate did not have a material impact on the results of operations for the three and six months ended June 30, 2015. For common stock options granted prior to the third quarter of 2013, the Company based the expected term on the simplified method. Beginning in the third quarter of 2013, the Company began using its own historical activity related to common stock option exercises and post-vesting forfeitures in order to estimate the expected term of its common stock option awards, as the Company now has a sufficient amount of experience to provide a reasonable basis for the calculation of the expected term. The risk-free interest rate used to value common stock option awards is based on the U.S. Treasury yield curve with a remaining term equal to the expected term assumed at the grant date. The assumptions used in calculating the fair value of stock-based compensation awards represent management’s best estimate and involve inherent uncertainties and the application of management judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different in the future. For the three months ended June 30, 2015 and 2014, the Company recorded stock-based compensation expenses of approximately $6.3 million related to common stock option grants and SSARs. For the six months ended June 30, 2015 and 2014, the Company recorded stock-based compensation expenses of approximately $12.8 million and $12.5 million, respectively, related to common stock option grants and SSARs. As of June 30, 2015, there was approximately $51.3 million of total unrecognized compensation cost, net of estimated forfeitures, related to non-vested employee and non-employee director common stock options and SSARs. The remaining cost is expected to be recognized over a weighted-average period of approximately 2.7 years. Restricted Stock Units The following provides a summary of the restricted stock unit activity for the Company for the six months ended June 30, 2015: Number of Weighted- Unvested as of January 1, 2015 1,014,914 $ 24.54 Granted 556,774 36.82 Vested (330,332 ) 24.14 Forfeited (14,542 ) 24.12 Unvested as of June 30, 2015 1,226,814 $ 30.22 The Company grants restricted stock unit awards to its employees and non-employee directors under the provisions of the 2010 Plan. The fair value of a restricted stock unit is determined by using the closing price of the Company’s common stock on the date of grant. A restricted stock unit award entitles the holder to receive shares of the Company’s common stock as the award vests, which is generally based on length of service. Stock-based compensation expense related to restricted stock unit awards is amortized on a straight-line basis over the vesting period. For the three months ended June 30, 2015 and 2014, the Company recorded stock-based compensation expenses of approximately $2.8 million and $1.7 million, respectively, related to restricted stock unit awards. For the six months ended June 30, 2015 and 2014, the Company recorded stock-based compensation expenses of approximately $5.1 million and $2.8 million, respectively, related to restricted stock unit awards. As of June 30, 2015, there was approximately $31.6 million of total unrecognized compensation cost, net of estimated forfeitures, related to unvested restricted stock units. The remaining cost is expected to be recognized over a weighted-average period of approximately 3.2 years. MVSSSARs The following provides a summary of the MVSSSARs activity for the Company for the six months ended June 30, 2015: Number of Weighted- Outstanding as of January 1, 2015 1,265,451 $ 25.96 Granted 67,575 $ 35.73 Exercised (241,229 ) $ 23.88 Forfeited (26,828 ) $ 28.82 Outstanding as of June 30, 2015 1,064,969 $ 26.98 The Company grants MVSSSARs to certain employees under the provisions of the 2010 Plan. MVSSSARs contain a predetermined cap on the maximum stock price at which point the instrument must be exercised. At exercise, employees holding MVSSSARs will receive shares of the Company’s common stock with a value equal to the difference between the exercise price and the current market price per share of the Company’s common stock, subject to a predetermined cap. The exercise price of MVSSSARs is determined by using the closing price of the Company’s common stock on the date of grant. Vesting is based on length of service. Stock-based compensation expense related to MVSSSARs is amortized on a straight-line basis over the vesting period. The fair value of MVSSSARs is determined by utilizing a lattice model under the option pricing method. The key inputs to the lattice model are the current price of the Company’s common stock, the fair value of the Company’s common stock at date of grant, the maximum fair value at which the MVSSSARs must be exercised, the vesting period, the contractual term, the volatility, the risk-free interest rate, the employment termination rate and assumptions with respect to early exercise behavior. The grant date weighted-average fair value for MVSSSARs granted during the six months ended June 30, 2015 and 2014 was $9.92 and $6.44, respectively. For the three months ended June 30, 2015 and 2014, the Company recorded stock-based compensation expenses of approximately $0.6 million and $0.7 million, respectively, related to MVSSSARs. For the six months ended June 30, 2015 and 2014, the Company recorded stock-based compensation expenses of approximately $1.2 million and $1.2 million, respectively, related to MVSSSARs. As of June 30, 2015, there was approximately $4.2 million of total unrecognized compensation cost related to unvested MVSSSARs. The remaining cost is expected to be recognized over a weighted-average period of approximately 2.4 years. For the six months ended June 30, 2015, the Company settled 241,229 MVSSSARs by issuing 76,404 shares of the Company’s common stock. For the six months ended June 30, 2014, the Company settled 58,379 MVSSSARs by issuing 17,573 shares of the Company’s common stock. If settlement of all outstanding MVSSSARs had occurred on June 30, 2015 at the predetermined cap on the maximum stock price at which point the instrument must be exercised, the Company would have issued 391,754 shares of the Company’s common stock. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (9) Commitments and Contingencies There have been no material changes to the Company’s commitments and contingencies from the information provided in Note 9 of the Notes to the Consolidated Financial Statements in Item 8, “Financial Statements and Supplementary Data”, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. |
Significant Accounting Polici16
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K (file number 001-34803), filed with the Securities and Exchange Commission (“SEC”) on February 27, 2015. Since the date of those financial statements, there have been no material changes to the Company’s significant accounting policies. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated. Prior year amounts have been reclassified where appropriate to conform to the current year classification for comparative purposes. |
Interim Financial Statements | Interim Financial Statements These interim consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) on the same basis as the audited consolidated financial statements for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K, filed with the SEC on February 27, 2015 and, in the opinion of management, include all adjustments of a normal recurring nature considered necessary to present fairly the Company’s financial position at June 30, 2015, the results of operations and comprehensive loss for the three and six months ended June 30, 2015 and 2014 and cash flows for the six months ended June 30, 2015 and 2014. The results of operations for the three and six months ended June 30, 2015 and 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any other future periods. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted under the SEC’s rules and regulations. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2014. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to the Quarterly Report on Form 10-Q and, therefore, do not include all information and footnotes required by U.S. GAAP for complete financial statements. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company evaluates its estimates, including those related to the accounts receivable allowance, useful lives of long-lived assets, the recoverability of goodwill and other intangible assets, assessing fair values of assets and liabilities acquired in and contingent consideration related to business acquisitions, and assumptions used for the purpose of determining stock-based compensation expense and income taxes, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying value of assets and liabilities as well as reported revenues and expenses during the periods presented. |
Foreign Currency Translation | Foreign Currency Translation The financial statements of the Company’s foreign operations are measured using the local currency as the functional currency. The local currency assets and liabilities are translated at the rate of exchange to the United States (“U.S.”) dollar on the balance sheet date and the local currency revenues and expenses are translated at average rates of exchange to the U.S. dollar during the reporting periods. Foreign currency transaction gains (losses) have been reflected as a component of other income (expense), net within the Company’s consolidated statements of operations and foreign currency translation gains (losses) have been included as a component of the Company’s consolidated statements of comprehensive loss and accumulated other comprehensive income within the Company’s consolidated balance sheets. |
Business Combinations | Business Combinations The Company recognizes assets acquired, liabilities assumed and any contingent consideration related to business combinations at fair value on the date of acquisition. The purchase price allocation process requires management to make significant estimates and assumptions with respect to the fair value of any intangible assets acquired, deferred revenues assumed, or contingent consideration within the arrangement. Unanticipated events and circumstances may occur which may affect the accuracy or validity of such assumptions or estimates. All subsequent changes to a valuation allowance or uncertain tax position related to the acquired company that occur within the measurement period and are based on facts and circumstances that existed at the acquisition date are recognized as an adjustment to goodwill. Acquisition-related transaction costs, including legal and accounting fees and other external costs directly related to the acquisition, are recognized separately from the acquisition and expensed as incurred in general and administrative expenses in the consolidated statements of operations. |
Revenue Recognition | Revenue Recognition The Company derives its revenues from three sources: (i) license revenues; (ii) maintenance revenues; and (iii) professional services revenues. The majority of license revenue is from the sale of perpetual licenses to customers or resellers. Maintenance revenue, which generally has a contractual term of 12 months, includes telephone and web-based support and rights to software updates and upgrades on a when-and-if-available basis. Professional services revenue includes training, implementation, consulting and expert services. For each arrangement, the Company recognizes revenue when (a) persuasive evidence of an arrangement exists, such as a signed contract or purchase order; (b) delivery of the product has occurred and there are no remaining obligations or substantive customer acceptance provisions; (c) the fee is fixed or determinable; and (d) collection of the fee is deemed reasonably assured. Delivery is considered to have occurred upon electronic transfer of the license key that provides immediate availability of the product to the purchaser. As substantially all of the Company’s software licenses are sold in multiple-element arrangements that include either maintenance or both maintenance and professional services, the Company uses the residual method to determine the amount of license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon vendor-specific objective evidence (“VSOE”) of the fair value of those elements, with the residual of the arrangement fee allocated to and recognized as license revenue. The Company has established VSOE of the fair value of maintenance through independent maintenance renewals, which demonstrate a consistent relationship of maintenance pricing as a percentage of the contractual license fee, and for new products for which renewals have not yet occurred, the Company has established VSOE of maintenance based on prices established by management with relevant authority. Maintenance revenue is deferred and recognized ratably over the contractual period of the maintenance arrangement, which is generally 12 months. Arrangements that include other professional services are evaluated to determine whether those services are essential to the functionality of other elements of the arrangement. The Company has determined that these services are not considered essential and the amounts allocated to the services are recognized as revenue when the services are performed. The VSOE of the fair value of the Company’s professional services is based on the price for these same services when they are sold separately. Revenue for services that are sold either on a stand-alone basis or included in multiple-element arrangements is recognized as the services are performed. Certain of the Company’s license arrangements include license remix rights which allow the customer to change or alternate its use of the Company’s products after those products have been delivered to the customer. Under these arrangements, the customer has the right to deploy and use at least one copy of each licensed product, and the cumulative value of all products in use cannot exceed the total license fee. Assuming all other revenue recognition criteria have been met, the Company recognizes revenue under these arrangements upon delivery of the first license key of each product eligible for remix under the arrangement. For sales made through resellers, the Company recognizes revenue upon the delivery of the license key only if those resellers provide the Company, at the time of placing their order, with the identity of the end-user customer to whom the product has been sold. Resellers do not carry inventory of the Company’s software products and, generally, do not have the right to return the Company’s software products. Sales made through resellers are evidenced by a reseller agreement, together with purchase orders on a transaction-by-transaction basis. The Company also sells software licenses to original equipment manufacturers (“OEMs”) who integrate the Company’s products for distribution with their applications. The Company does not offer any rights to return products sold to OEM’s. The OEM’s end-user customer is licensed to use the Company’s products solely in conjunction with the OEM’s application. In OEM arrangements, license key delivery is required as the basis for revenue recognition. The Company recognizes revenue under its OEM arrangements when (a) persuasive evidence of an arrangement exists, such as a signed contract or purchase order; (b) delivery of the product has occurred and there are no remaining obligations or substantive customer acceptance provisions; (c) the fee is fixed or determinable; and (d) collection of the fee is deemed reasonably assured. The Company records taxes collected on revenue-producing activities on a net basis. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the cost of stock-based compensation based on the fair value of those awards at the date of grant over the requisite service period on a straight-line basis. The Company uses the Black-Scholes-Merton (“Black-Scholes”) option pricing model to determine the fair value of common stock option awards and Stock-settled Stock Appreciation Rights (“SSARs”). The fair value of a restricted stock unit is determined by using the closing price of the Company’s common stock on the date of grant. The fair value of Maximum Value Stock-settled Stock Appreciation Rights (“MVSSSARs”) is determined by utilizing a lattice model under the option pricing method. Stock-based compensation plans, related expenses and assumptions used in the Black-Scholes option pricing model and the lattice model under the option pricing method are more fully described in Note 8 to these unaudited consolidated financial statements. Stock-based compensation expense is recorded within cost of revenue, sales and marketing, research and development and general and administrative expenses in the consolidated statements of operations. The following table sets forth the total stock-based compensation expense included in the unaudited consolidated statements of operations for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Cost of revenue $ 773 $ 639 $ 1,798 $ 1,195 Sales and marketing 4,757 4,199 9,427 8,306 Research and development 1,034 1,023 1,990 1,834 General and administrative 3,099 2,817 5,845 5,181 Total $ 9,663 $ 8,678 $ 19,060 $ 16,516 |
Net Loss per Common Share | Net Loss per Common Share The following table sets forth the computation of basic and diluted net loss per common share for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands, except share and per share data) Basic and diluted net loss per common share calculation: Net loss $ (13,002 ) $ (10,206 ) $ (43,322 ) $ (36,086 ) Weighted average common shares outstanding: Basic and diluted 91,721,926 89,753,523 91,362,617 89,480,446 Net loss per common share: Basic and diluted $ (0.14 ) $ (0.11 ) $ (0.47 ) $ (0.40 ) Diluted net loss per common share for the three and six months ended June 30, 2015 and 2014 does not reflect the potential issuance of common shares underlying the following securities as the effect would be anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Common stock options 9,613,178 10,288,496 9,613,178 10,288,496 SSARs 268,166 165,260 268,166 165,260 Restricted stock units 1,226,814 1,040,697 1,226,814 1,040,697 MVSSSARs 391,754 460,188 391,754 460,188 Total anti-dilutive securities 11,499,912 11,954,641 11,499,912 11,954,641 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or consolidated results of operations upon adoption. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (ASU 2014-09), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP. The guidance is effective for annual reporting periods beginning after December 31, 2017, and interim periods therein. Early adoption is permitted for periods beginning after December 31, 2016. ASU 2014-09 can be adopted using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU 2014-09. The Company is currently evaluating the impact of adopting ASU 2014-09 on its consolidated financial statements and has not yet selected a transition method, nor has it determined the effect of the standard on its ongoing financial reporting. In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15), to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for the Company beginning in the first quarter of 2016 with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. |
Significant Accounting Polici17
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Stock-Based Compensation Expense Included in Unaudited Consolidated Statements of Operations | The following table sets forth the total stock-based compensation expense included in the unaudited consolidated statements of operations for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Cost of revenue $ 773 $ 639 $ 1,798 $ 1,195 Sales and marketing 4,757 4,199 9,427 8,306 Research and development 1,034 1,023 1,990 1,834 General and administrative 3,099 2,817 5,845 5,181 Total $ 9,663 $ 8,678 $ 19,060 $ 16,516 |
Computation of Basic and Diluted Net Loss Per Common Share | The following table sets forth the computation of basic and diluted net loss per common share for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands, except share and per share data) Basic and diluted net loss per common share calculation: Net loss $ (13,002 ) $ (10,206 ) $ (43,322 ) $ (36,086 ) Weighted average common shares outstanding: Basic and diluted 91,721,926 89,753,523 91,362,617 89,480,446 Net loss per common share: Basic and diluted $ (0.14 ) $ (0.11 ) $ (0.47 ) $ (0.40 ) |
Diluted Net Loss Per Common Share for Periods Presented Does Not Reflect Potential Issuance of Common Shares | Diluted net loss per common share for the three and six months ended June 30, 2015 and 2014 does not reflect the potential issuance of common shares underlying the following securities as the effect would be anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Common stock options 9,613,178 10,288,496 9,613,178 10,288,496 SSARs 268,166 165,260 268,166 165,260 Restricted stock units 1,226,814 1,040,697 1,226,814 1,040,697 MVSSSARs 391,754 460,188 391,754 460,188 Total anti-dilutive securities 11,499,912 11,954,641 11,499,912 11,954,641 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Vizubi [Member] | |
Summary of Purchase Price | The total preliminary purchase price at December 23, 2014 is summarized in the following table (in thousands): Amount of cash paid $ 9,571 Fair value of contingent consideration 8,992 Total preliminary purchase price $ 18,563 |
Summary of Estimated Fair Values of the Assets Acquired and Liabilities | The following table summarizes the preliminary estimated fair values of the assets acquired and the liabilities assumed at December 23, 2014 (in thousands): Intangible assets $ 5,301 Goodwill 12,651 Cash 1,088 Accounts receivable 1,671 Other assets 410 Liabilities assumed (893 ) Deferred tax liability (1,665 ) Total preliminary purchase price $ 18,563 |
Data Market [Member] | |
Summary of Purchase Price | The total purchase price at October 21, 2014 is summarized in the following table (in thousands): Amount of cash paid $ 11,637 Fair value of contingent consideration 1,567 Total purchase price $ 13,204 |
Summary of Estimated Fair Values of the Assets Acquired and Liabilities | The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at October 21, 2014 (in thousands): Intangible assets $ 3,911 Goodwill 9,876 Cash 23 Accounts receivable 98 Other assets 87 Deferred tax asset 393 Liabilities assumed (402 ) Deferred tax liability (782 ) Total purchase price $ 13,204 |
Goodwill and Other Intangible19
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets Subject to Amortization | The following table provides information regarding the Company’s intangible assets subject to amortization: June 30, 2015 December 31, 2014 Gross Accumulated Net Gross Accumulated Net (in thousands) Acquired technology $ 16,551 $ (6,034 ) $ 10,517 $ 21,740 $ (4,885 ) $ 16,855 Customer relationships and other identified intangible assets 4,627 (1,161 ) 3,466 4,790 (923 ) 3,867 Trade names 390 (333 ) 57 766 (293 ) 473 Total $ 21,568 $ (7,528 ) $ 14,040 $ 27,296 $ (6,101 ) $ 21,195 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value | The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by the Company. The following table sets forth the Company’s assets and liabilities that were measured at fair value as of June 30, 2015 and December 31, 2014, by level within the fair value hierarchy: Amounts at Fair Value Fair Value Measurement Using Level 1 Level 2 Level 3 (in thousands) As of June 30, 2015 Assets Cash and cash equivalents $ 306,353 $ 306,353 $ — $ — Foreign currency contracts $ 859 $ — $ 859 $ — Liabilities Accrued contingent consideration $ 10,654 $ — $ — $ 10,654 As of December 31, 2014 Assets Cash and cash equivalents $ 244,018 $ 244,018 $ — $ — Liabilities Accrued contingent consideration $ 10,492 $ — $ — $ 10,492 Foreign currency contracts $ 908 $ — $ 908 $ — |
Reconciliation of Acquisition Related Accrued Contingent Consideration | A reconciliation of the beginning and ending balances of acquisition-related accrued contingent consideration using significant unobservable inputs (Level 3) for the six months ended June 30, 2015 follows (in thousands): Accrued contingent consideration as of December 31, 2014 $ 10,492 Change in fair value of contingent consideration 162 Accrued contingent consideration as of June 30, 2015 $ 10,654 |
Business and Geographic Segme21
Business and Geographic Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Net Revenues Based on Geographic Area | The following geographic data includes revenues generated by subsidiaries located within that geographic region. The Company’s revenues were generated in the following geographic regions for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) The Americas $ 54,262 $ 46,632 $ 97,129 $ 83,484 Europe 74,606 70,356 137,623 133,129 Rest of world 16,961 14,630 31,341 26,117 Total $ 145,829 $ 131,618 $ 266,093 $ 242,730 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Common Stock Option Activity | The following provides a summary of the common stock option activity for the Company for the six months ended June 30, 2015: Number of Weighted- Weighted- Aggregrate Outstanding as of January 1, 2015 9,820,583 $ 22.62 7.70 Granted 1,138,507 $ 36.84 Exercised (1,084,543 ) $ 22.51 Forfeited (261,369 ) $ 25.58 Outstanding as of June 30, 2015 9,613,178 $ 24.24 7.53 $ 105,533 Exercisable at June 30, 2015 4,870,343 $ 20.85 6.41 $ 68,726 Vested at June 30, 2015 and expected to vest in future periods 9,113,809 $ 24.08 7.47 $ 101,411 |
Assumptions Used in Black-Scholes Option Pricing Model | The assumptions used in the Black-Scholes option pricing model are: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Expected dividend yield 0.0% 0.0% 0.0% 0.0% Risk-free interest rate 1.4%-1.8% 1.7%-1.8% 1.4%-1.8% 1.5%-1.8% Expected volatility 45.6%-46.2% 43.5%-44.0% 45.6%-47.1% 43.2%-44.9% Expected life (in years) 5.34 5.36 5.13-5.34 5.16-5.36 |
Summary of Restricted Stock Unit Activity | The following provides a summary of the restricted stock unit activity for the Company for the six months ended June 30, 2015: Number of Units Weighted- Unvested as of January 1, 2015 1,014,914 $ 24.54 Granted 556,774 36.82 Vested (330,332 ) 24.14 Forfeited (14,542 ) 24.12 Unvested as of June 30, 2015 1,226,814 $ 30.22 |
SSARs [Member] | |
Summary of Stock Appreciation Rights Activity | The following provides a summary of the SSARs activity for the Company for the six months ended June 30, 2015: Number of Weighted- Weighted- Aggregrate Outstanding as of January 1, 2015 276,837 $ 28.28 Granted 6,993 $ 37.32 Exercised (5,674 ) $ 27.00 Forfeited (9,990 ) $ 27.00 Outstanding as of June 30, 2015 268,166 $ 28.59 8.88 $ 1,723 Exercisable at June 30, 2015 81,271 $ 28.37 8.85 $ 536 Vested at June 30, 2015 and expected to vest in future periods 256,099 $ 28.67 8.87 $ 1,626 |
MVSSSARs [Member] | |
Summary of Stock Appreciation Rights Activity | The following provides a summary of the MVSSSARs activity for the Company for the six months ended June 30, 2015: Number of Weighted- Outstanding as of January 1, 2015 1,265,451 $ 25.96 Granted 67,575 $ 35.73 Exercised (241,229 ) $ 23.88 Forfeited (26,828 ) $ 28.82 Outstanding as of June 30, 2015 1,064,969 $ 26.98 |
Significant Accounting Polici23
Significant Accounting Policies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Contractual term of maintenance contracts | 12 months |
Significant Accounting Polici24
Significant Accounting Policies - Stock-Based Compensation Expense Included in Unaudited Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 9,663 | $ 8,678 | $ 19,060 | $ 16,516 |
Cost of Revenue [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 773 | 639 | 1,798 | 1,195 |
Sales and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 4,757 | 4,199 | 9,427 | 8,306 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 1,034 | 1,023 | 1,990 | 1,834 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 3,099 | $ 2,817 | $ 5,845 | $ 5,181 |
Significant Accounting Polici25
Significant Accounting Policies - Computation of Basic and Diluted Net Loss Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic and diluted net loss per common share calculation: | ||||
Net loss | $ (13,002) | $ (10,206) | $ (43,322) | $ (36,086) |
Weighted average common shares outstanding: | ||||
Basic and diluted | 91,721,926 | 89,753,523 | 91,362,617 | 89,480,446 |
Net loss per common share: | ||||
Basic and diluted | $ (0.14) | $ (0.11) | $ (0.47) | $ (0.40) |
Significant Accounting Polici26
Significant Accounting Policies - Diluted Net Loss Per Common Share for Periods Presented Does Not Reflect Potential Issuance of Common Shares (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 11,499,912 | 11,954,641 | 11,499,912 | 11,954,641 |
Common Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 9,613,178 | 10,288,496 | 9,613,178 | 10,288,496 |
SSARs [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 268,166 | 165,260 | 268,166 | 165,260 |
Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 1,226,814 | 1,040,697 | 1,226,814 | 1,040,697 |
MVSSSARs [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share, amount | 391,754 | 460,188 | 391,754 | 460,188 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 23, 2014 | Oct. 21, 2014 | Mar. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 38,569 | $ 38,702 | |||
Vizubi [Member] | |||||
Business Acquisition [Line Items] | |||||
Total maximum purchase price | $ 21,300 | ||||
Amount of cash paid | 6,800 | 2,700 | |||
Payment of contingent consideration | 11,700 | ||||
Fair value of contingent consideration | 8,992 | ||||
Intangible assets | 5,301 | $ 5,300 | $ 9,600 | ||
Goodwill | $ 12,651 | 12,700 | |||
Increase (Decrease) in preliminary allocation for long-term deferred tax income liabilities | (1,300) | ||||
Vizubi [Member] | Finite-Lived Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Increase (Decrease) in preliminary allocation for intangibles | (4,300) | (4,300) | |||
Vizubi [Member] | Goodwill [Member] | |||||
Business Acquisition [Line Items] | |||||
Increase (Decrease) in preliminary allocation for intangibles | 2,400 | 2,400 | |||
Vizubi [Member] | Developed Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 3,700 | ||||
Vizubi [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 1,600 | ||||
Data Market [Member] | |||||
Business Acquisition [Line Items] | |||||
Total maximum purchase price | $ 13,300 | ||||
Amount of cash paid | 11,500 | $ 100 | |||
Payment of contingent consideration | 1,700 | ||||
Fair value of contingent consideration | 1,567 | ||||
Intangible assets | 3,911 | 3,900 | |||
Goodwill | $ 9,876 | 9,900 | |||
Data Market [Member] | Developed Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 2,800 | ||||
Estimated useful life | 8 years | ||||
Data Market [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 1,000 | ||||
Estimated useful life | 4 years | ||||
Data Market [Member] | Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 100 | ||||
Estimated useful life | 4 years |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Purchase Price (Detail) - USD ($) $ in Thousands | Dec. 23, 2014 | Oct. 21, 2014 |
Vizubi [Member] | ||
Business Acquisition [Line Items] | ||
Amount of cash paid | $ 9,571 | |
Fair value of contingent consideration | 8,992 | |
Total purchase price | $ 18,563 | |
Data Market [Member] | ||
Business Acquisition [Line Items] | ||
Amount of cash paid | $ 11,637 | |
Fair value of contingent consideration | 1,567 | |
Total purchase price | $ 13,204 |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Fair Values of the Assets Acquired and Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 23, 2014 | Oct. 21, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 38,569 | $ 38,702 | |||
Vizubi [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 5,300 | $ 9,600 | $ 5,301 | ||
Goodwill | 12,700 | 12,651 | |||
Cash | 1,088 | ||||
Accounts receivable | 1,671 | ||||
Other assets | 410 | ||||
Liabilities assumed | (893) | ||||
Deferred tax liability | (1,665) | ||||
Total purchase price | $ 18,563 | ||||
Data Market [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 3,900 | $ 3,911 | |||
Goodwill | $ 9,900 | 9,876 | |||
Cash | 23 | ||||
Accounts receivable | 98 | ||||
Other assets | 87 | ||||
Deferred tax asset | 393 | ||||
Liabilities assumed | (402) | ||||
Deferred tax liability | (782) | ||||
Total purchase price | $ 13,204 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment cost | $ 0 | $ 0 | $ 0 | $ 0 | |
Effect of foreign currency translation | 2,500,000 | ||||
Amortization of intangible assets | 900,000 | $ 800,000 | 1,800,000 | $ 1,600,000 | |
Estimated aggregate amortization expense for 2015 | 1,700,000 | 1,700,000 | |||
Estimated aggregate amortization expense for 2016 | 3,400,000 | 3,400,000 | |||
Estimated aggregate amortization expense for 2017 | 2,900,000 | 2,900,000 | |||
Estimated aggregate amortization expense for 2018 | 1,700,000 | 1,700,000 | |||
Estimated aggregate amortization expense for 2019 | 1,100,000 | 1,100,000 | |||
Estimated aggregate amortization expense for thereafter | $ 3,200,000 | $ 3,200,000 | |||
Weighted average amortization period | 6 years 2 months 12 days | ||||
Vizubi [Member] | Finite-Lived Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Increase (Decrease) in preliminary allocation for intangibles | $ (4,300,000) | $ (4,300,000) | |||
Vizubi [Member] | Goodwill [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Increase (Decrease) in preliminary allocation for intangibles | $ 2,400,000 | $ 2,400,000 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets - Summary of Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 21,568 | $ 27,296 |
Accumulated Amortization | (7,528) | (6,101) |
Net Amount | 14,040 | 21,195 |
Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 16,551 | 21,740 |
Accumulated Amortization | (6,034) | (4,885) |
Net Amount | 10,517 | 16,855 |
Customer Relationships and Other Identified Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 4,627 | 4,790 |
Accumulated Amortization | (1,161) | (923) |
Net Amount | 3,466 | 3,867 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 390 | 766 |
Accumulated Amortization | (333) | (293) |
Net Amount | $ 57 | $ 473 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 306,353 | $ 244,018 |
Foreign currency contracts | 859 | |
Liabilities | ||
Accrued contingent consideration | 10,654 | 10,492 |
Foreign currency contracts | 908 | |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Cash and cash equivalents | 306,353 | 244,018 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Foreign currency contracts | 859 | |
Liabilities | ||
Foreign currency contracts | 908 | |
Fair Value, Inputs, Level 3 [Member] | ||
Liabilities | ||
Accrued contingent consideration | $ 10,654 | $ 10,492 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Contract | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)Contract | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Short-term foreign currency forward contract | $ 859,000 | $ 859,000 | |||
Approximate gain (loss) within foreign exchange, net related to short-term foreign currency forward contracts | (3,800,000) | $ 900,000 | 6,100,000 | $ 900,000 | |
Contingent cash considered to be paid on acquisition | 10,654,000 | 10,654,000 | $ 10,492,000 | ||
Other non-recurring fair value adjustments | 0 | $ 0 | |||
Foreign Currency Forward Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Number of short-term foreign currency contract | Contract | 1 | 1 | |||
Short-term foreign currency forward contract | $ 107,000,000 | $ 107,000,000 | $ 107,000,000 | ||
Unrealized gain (loss) on short-term foreign currency forward contract | 900,000 | (900,000) | |||
Data Market and Vizubi [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Increase in fair value of contingent consideration liability | $ 200,000 | ||||
Contingent cash considered to be paid on acquisition | $ 10,500,000 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Acquisition Related Accrued Contingent Consideration (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Accrued contingent consideration as of December 31, 2014 | $ 10,492 |
Accrued contingent consideration as of June 30, 2015 | 10,654 |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Accrued contingent consideration as of December 31, 2014 | 10,492 |
Accrued contingent consideration as of June 30, 2015 | 10,654 |
Changes Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Change in fair value of contingent consideration | $ 162 |
Provision for Income Taxes - Ad
Provision for Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 0.90% | (45.60%) | (21.10%) | (17.00%) | |
Benefit (expense) for income taxes | $ 118 | $ (3,194) | $ (7,540) | $ (5,249) | |
Unrecognized tax benefits | $ 1,500 | $ 1,500 | |||
Company does not expect its unrecognized tax benefit liability to change significantly | Next twelve months |
Business and Geographic Segme36
Business and Geographic Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of business segment | 1 |
Business and Geographic Segme37
Business and Geographic Segment Information - Net Revenues Based on Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 145,829 | $ 131,618 | $ 266,093 | $ 242,730 |
The Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 54,262 | 46,632 | 97,129 | 83,484 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | 74,606 | 70,356 | 137,623 | 133,129 |
Rest of World [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenue | $ 16,961 | $ 14,630 | $ 31,341 | $ 26,117 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jul. 16, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Proceeds from exercise of common stock options | $ 24,416 | $ 8,115 | ||||
Excess tax benefit from stock-based compensation | $ 5,434 | $ 4,171 | ||||
Common Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant date weighted-average fair value | $ 15.88 | $ 9.55 | ||||
Proceeds from exercise of common stock options | $ 24,416 | $ 8,115 | ||||
Total intrinsic value of common stock options exercised | 13,100 | 13,700 | ||||
Excess tax benefit from stock-based compensation | 5,434 | 4,171 | ||||
Common Stock Options and SSARs [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expenses | $ 6,300 | $ 6,300 | 12,800 | 12,500 | ||
Total unrecognized compensation cost, net of estimated forfeitures, non-vested | 51,300 | $ 51,300 | ||||
Weighted-average period | 2 years 8 months 12 days | |||||
Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expenses | 2,800 | 1,700 | $ 5,100 | $ 2,800 | ||
Total unrecognized compensation cost, net of estimated forfeitures, non-vested | 31,600 | $ 31,600 | ||||
Weighted-average period | 3 years 2 months 12 days | |||||
MVSSSARs [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant date weighted-average fair value | $ 9.92 | $ 6.44 | ||||
Number of SSARs exercised | 241,229 | 58,379 | ||||
Stock-based compensation expenses | 600 | $ 700 | $ 1,200 | $ 1,200 | ||
Total unrecognized compensation cost, net of estimated forfeitures, non-vested | $ 4,200 | $ 4,200 | ||||
Weighted-average period | 2 years 4 months 24 days | |||||
MVSSSARs [Member] | Stockholders' Equity Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Issue upon settlement common stock | 76,404 | 17,573 | ||||
Settlement of common stock | 391,754 | |||||
SSARs [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant date weighted-average fair value | $ 16.09 | $ 11.79 | ||||
Number of SSARs exercised | 5,674 | 0 | ||||
Issue upon settlement common stock | 1,403 | |||||
2010 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares reserved for issuance under plan | 3,300,000 | |||||
Potential company authorized automatic increase | 3,300,000 | |||||
Potential company authorized automatic increase of shares as a percentage of common stock outstanding | 3.75% | 3.75% | ||||
Number of shares available for grant | 5,100,000 | 5,100,000 | ||||
Company authorized increase | 3,300,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Common Stock Option Activity (Detail) - Common Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | 9,820,583 | |
Number of Shares, Granted | 1,138,507 | |
Number of Shares, Exercised | (1,084,543) | |
Number of Shares, Forfeited | (261,369) | |
Number of Shares, Outstanding, Ending Balance | 9,613,178 | 9,820,583 |
Number of Shares, Exercisable at June 30, 2015 | 4,870,343 | |
Number of Shares, Vested and expected to vest in future periods | 9,113,809 | |
Weighted-Average Exercise Price, Beginning of Period | $ 22.62 | |
Weighted-Average Exercise Price, Granted | 36.84 | |
Weighted-Average Exercise Price, Exercised | 22.51 | |
Weighted-Average Exercise Price, Forfeited | 25.58 | |
Weighted-Average Exercise Price, End of Period | 24.24 | $ 22.62 |
Weighted-Average Exercise Price, Exercisable at June 30, 2015 | 20.85 | |
Weighted-Average Exercise Price, Vested and expected to vest in future periods | $ 24.08 | |
Weighted-Average Remaining Contractual Term (Years) | 7 years 6 months 11 days | 7 years 8 months 12 days |
Weighted-Average Remaining Contractual Term (Years), Exercisable at June 30, 2015 | 6 years 4 months 28 days | |
Weighted-Average Remaining Contractual Term (Years), Vested and expected to vest in future periods | 7 years 5 months 19 days | |
Aggregate Intrinsic Value, Outstanding | $ 105,533 | |
Aggregate Intrinsic Value, Exercisable at June 30, 2015 | 68,726 | |
Aggregate Intrinsic Value, Vested and expected to vest in future periods | $ 101,411 |
Stock-Based Compensation - Su40
Stock-Based Compensation - Summary of SSARs Activity (Detail) - SSARs [Member] - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | 276,837 | |
Number of Shares, Granted | 6,993 | |
Number of Shares, Exercised | (5,674) | 0 |
Number of Shares, Forfeited | (9,990) | |
Number of Shares, Outstanding, Ending Balance | 268,166 | |
Number of Shares, Exercisable | 81,271 | |
Number of Shares, Vested and expected to vest in future periods | 256,099 | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ 28.28 | |
Weighted-Average Exercise Price, Granted | 37.32 | |
Weighted-Average Exercise Price, Exercised | 27 | |
Weighted-Average Exercise Price, Forfeited | 27 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance | 28.59 | |
Weighted-Average Exercise Price, Exercisable | 28.37 | |
Weighted-Average Exercise Price, Vested and expected to vest in future periods | $ 28.67 | |
Weighted-Average Remaining Contractual Term (Years) | 8 years 10 months 17 days | |
Weighted-Average Remaining Contractual Term (Years), Exercisable | 8 years 10 months 6 days | |
Weighted-Average Remaining Contractual Term (Years), Vested and expected to vest in future periods | 8 years 10 months 13 days | |
Aggregate Intrinsic Value, Outstanding | $ 1,723 | |
Aggregate Intrinsic Value, Exercisable | 536 | |
Aggregate Intrinsic Value, Vested and expected to vest in future periods | $ 1,626 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used in Black-Scholes Option Pricing Model (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free interest rate, minimum | 1.40% | 1.70% | 1.40% | 1.50% |
Risk-free interest rate, maximum | 1.80% | 1.80% | 1.80% | 1.80% |
Expected volatility, minimum | 45.60% | 43.50% | 45.60% | 43.20% |
Expected volatility, maximum | 46.20% | 44.00% | 47.10% | 44.90% |
Expected life (in years) | 5 years 4 months 2 days | 5 years 4 months 10 days | ||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (in years) | 5 years 1 month 17 days | 5 years 1 month 28 days | ||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (in years) | 5 years 4 months 2 days | 5 years 4 months 10 days |
Stock-Based Compensation - Su42
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Detail) - 6 months ended Jun. 30, 2015 - Restricted Stock Units [Member] - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Unvested, Beginning Balance | 1,014,914 |
Number of Shares, Granted | 556,774 |
Number of Shares, Vested | (330,332) |
Number of Shares, Forfeited | (14,542) |
Number of Shares Unvested, Ending Balance | 1,226,814 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ 24.54 |
Weighted-Average Grant Date Fair Value, Granted | 36.82 |
Weighted-Average Grant Date Fair Value, Vested | 24.14 |
Weighted-Average Grant Date Fair Value, Forfeited | 24.12 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ 30.22 |
Stock-Based Compensation - Su43
Stock-Based Compensation - Summary of Maximum Value Stock-Settled Stock Appreciation Rights Activity (Detail) - MVSSSARs [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | 1,265,451 | |
Number of Shares, Granted | 67,575 | |
Number of Shares, Exercised | (241,229) | (58,379) |
Number of Shares, Forfeited | (26,828) | |
Number of Shares, Outstanding, Ending Balance | 1,064,969 | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ 25.96 | |
Weighted-Average Exercise Price, Granted | 35.73 | |
Weighted-Average Exercise Price, Exercised | 23.88 | |
Weighted-Average Exercise Price, Forfeited | 28.82 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ 26.98 |