Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 26, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SREV | ||
Entity Registrant Name | SERVICESOURCE INTERNATIONAL, INC. | ||
Entity Central Index Key | 1,310,114 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 86,188,899 | ||
Entity Public Float | $ 332,004,954 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 72,334 | $ 90,382 |
Short-term investments | 136,378 | 125,000 |
Accounts receivable, net | 56,563 | 70,163 |
Deferred income taxes | 97 | 398 |
Prepaid expenses and other | 8,167 | 6,815 |
Total current assets | 273,539 | 292,758 |
Property and equipment, net | 25,903 | 25,658 |
Deferred income taxes, net of current portion | 1,759 | 2,488 |
Goodwill and intangibles, net | 9,444 | 10,957 |
Other assets, net | 8,960 | 7,985 |
Total assets | 319,605 | 339,846 |
Current liabilities: | ||
Accounts payable | 1,067 | 2,922 |
Accrued taxes | 1,112 | 1,721 |
Accrued compensation and benefits | 22,116 | 20,056 |
Deferred revenue | 5,770 | 7,018 |
Accrued expenses | 4,716 | 8,882 |
Other current liabilities | 2,327 | 2,569 |
Total current liabilities | 37,108 | 43,168 |
Obligations under capital leases, net of current portion | 198 | 329 |
Convertible notes, net | 128,092 | 120,730 |
Other long-term liabilities | 4,113 | 4,331 |
Total liabilities | $ 169,511 | $ 168,558 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 20,000,000 shares authorized and none issued and outstanding | $ 0 | $ 0 |
Common stock; $0.0001 par value; 1,000,000 shares authorized, 86,893 shares issued and 86,772 shares outstanding as of December 31, 2015; 83,928 shares issued and 83,807 shares outstanding at December 31, 2014 | 8 | 8 |
Treasury stock | (441) | (441) |
Additional paid-in capital | 331,922 | 312,017 |
Accumulated deficit | (181,822) | (141,409) |
Accumulated other comprehensive income | 427 | 1,113 |
Total stockholders’ equity | 150,094 | 171,288 |
Total liabilities and stockholders’ equity | $ 319,605 | $ 339,846 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 86,893,000 | 83,928,000 |
Common stock, shares outstanding | 86,772,000 | 83,807,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net revenue | $ 252,203 | $ 272,180 | $ 272,482 |
Cost of revenue | 171,369 | 194,009 | 162,449 |
Gross profit | 80,834 | 78,171 | 110,033 |
Operating expenses: | |||
Sales and marketing | 44,086 | 59,988 | 58,826 |
Research and development | 16,480 | 25,802 | 23,855 |
General and administrative | 46,299 | 47,808 | 44,913 |
Restructuring and other | 3,662 | 3,314 | 0 |
Goodwill and other intangibles impairment | 0 | 25,108 | 0 |
Total operating expenses | 110,527 | 162,020 | 127,594 |
Loss from operations | (29,693) | (83,849) | (17,561) |
Interest expense and other, net | (9,316) | (11,008) | (4,420) |
Loss before income taxes | (39,009) | (94,857) | (21,981) |
Income tax provision | 1,404 | 302 | 871 |
Net loss | $ (40,413) | $ (95,159) | $ (22,852) |
Net loss per common share: | |||
Basic (in dollars per share) | $ (0.47) | $ (1.15) | $ (0.29) |
Diluted (in dollars per share) | $ (0.47) | $ (1.15) | $ (0.29) |
Weighted-average shares used in computing net loss per common share: | |||
Basic (in shares) | 85,417 | 82,872 | 78,408 |
Diluted (in shares) | 85,417 | 82,872 | 78,408 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (40,413) | $ (95,159) | $ (22,852) |
Other comprehensive income: | |||
Foreign currency translation adjustments | 12 | 471 | 579 |
Unrealized (loss) gain on short-term investments, net of tax | (698) | (212) | 167 |
Total other comprehensive income (loss), net of tax | (686) | 259 | 746 |
Total comprehensive loss, net of tax | $ (41,099) | $ (94,900) | $ (22,106) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Shares/Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Dec. 31, 2012 | 75,258 | (121) | ||||
Beginning Balance at Dec. 31, 2012 | $ 186,927 | $ 8 | $ (441) | $ 210,650 | $ (23,398) | $ 108 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from the exercise of stock options and employee stock purchase plan (in shares) | 5,887 | |||||
Proceeds from the exercise of stock options and employee stock purchase plan | 24,976 | 24,976 | ||||
Vested restricted stock units converted to shares (in shares) | 514 | |||||
Vested restricted stock units converted to shares | 0 | |||||
Equity component of the convertible notes issuance, net | 37,297 | 37,297 | ||||
Issuance of warrants | 21,763 | 21,763 | ||||
Bond hedges | (31,408) | (31,408) | ||||
Stock-based compensation | 23,608 | 23,608 | ||||
Income tax benefit (deficiency) from stock-based compensation | (360) | (360) | ||||
Comprehensive income (loss): | ||||||
Net loss | (22,852) | (22,852) | ||||
Other comprehensive income | 746 | 746 | ||||
Total comprehensive loss, net of tax | (22,106) | |||||
Ending Balance (in shares) at Dec. 31, 2013 | 81,659 | (121) | ||||
Ending Balance at Dec. 31, 2013 | 240,697 | $ 8 | $ (441) | 286,526 | (46,250) | 854 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from the exercise of stock options and employee stock purchase plan (in shares) | 937 | |||||
Proceeds from the exercise of stock options and employee stock purchase plan | 4,386 | 4,386 | ||||
Vested restricted stock units converted to shares (in shares) | 1,332 | |||||
Vested restricted stock units converted to shares | 0 | |||||
Stock-based compensation | 20,959 | 20,959 | ||||
Income tax benefit (deficiency) from stock-based compensation | 146 | 146 | ||||
Comprehensive income (loss): | ||||||
Net loss | (95,159) | (95,159) | ||||
Other comprehensive income | 259 | 259 | ||||
Total comprehensive loss, net of tax | (94,900) | |||||
Ending Balance (in shares) at Dec. 31, 2014 | 83,928 | (121) | ||||
Ending Balance at Dec. 31, 2014 | 171,288 | $ 8 | $ (441) | 312,017 | (141,409) | 1,113 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Proceeds from the exercise of stock options and employee stock purchase plan (in shares) | 1,505 | |||||
Proceeds from the exercise of stock options and employee stock purchase plan | 5,761 | 5,761 | ||||
Vested restricted stock units converted to shares (in shares) | 1,755 | |||||
Vested restricted stock units converted to shares | 0 | |||||
Payroll taxes on restricted stock unit releases | (974) | (974) | ||||
Share repurchases (in shares) | (295) | |||||
Share repurchases | (1,212) | (1,212) | ||||
Stock-based compensation | 13,751 | 13,751 | ||||
Acceleration of stock-based compensation expense due to restructuring | 2,579 | 2,579 | ||||
Income tax benefit (deficiency) from stock-based compensation | 0 | |||||
Comprehensive income (loss): | ||||||
Net loss | (40,413) | (40,413) | ||||
Other comprehensive income | (686) | (686) | ||||
Total comprehensive loss, net of tax | (41,099) | |||||
Ending Balance (in shares) at Dec. 31, 2015 | 86,893 | (121) | ||||
Ending Balance at Dec. 31, 2015 | $ 150,094 | $ 8 | $ (441) | $ 331,922 | $ (181,822) | $ 427 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net loss | $ (40,413) | $ (95,159) | $ (22,852) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 13,736 | 13,219 | 11,652 |
Amortization of debt discount and issuance costs | 8,048 | 7,474 | 2,761 |
Amortization of premium on short-term investments | (101) | (245) | 750 |
Deferred income taxes | 789 | (514) | 217 |
Stock-based compensation | 13,387 | 20,899 | 23,620 |
Tax (benefit) deficit from stock-based compensation | 0 | (146) | 360 |
Restructuring and other | 2,579 | 952 | 0 |
Goodwill and other intangibles impairment | 0 | 25,108 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 12,002 | 3,716 | (7,470) |
Deferred revenue | (1,204) | (371) | 3,069 |
Prepaid expenses and other | (2,799) | (631) | (1,336) |
Accounts payable | (1,562) | (278) | 521 |
Accrued taxes | (539) | 477 | 71 |
Accrued compensation and benefits | 2,706 | 248 | 3,772 |
Accrued expenses | (3,940) | 1,978 | 457 |
Other liabilities | (66) | (489) | 83 |
Net cash provided by (used in) operating activities | 2,623 | (23,762) | 15,675 |
Cash flows from investing activities | |||
Acquisition of property and equipment | (11,975) | (9,357) | (5,261) |
Restricted cash | (1,244) | 0 | 0 |
Investment in privately held company | 0 | 0 | (4,500) |
Cash paid for acquisition, net of cash acquired | 0 | (32,550) | 0 |
Purchases of short-term investments | (95,421) | (84,415) | (89,747) |
Sales of short-term investments | 82,351 | 60,407 | 14,436 |
Maturities of short-term investments | 1,095 | 4,043 | 2,600 |
Net cash used in investing activities | (25,194) | (61,872) | (82,472) |
Cash flows from financing activities | |||
Proceeds from issuance of convertible notes | 0 | 0 | 150,000 |
Issuance costs related to the issuance of convertible senior notes | 0 | 0 | (4,867) |
Payments of convertible note hedges | 0 | 0 | (31,408) |
Proceeds from the issuance of warrants | 0 | 0 | 21,763 |
Repayment of long-term debt and capital lease obligations | (170) | (364) | (329) |
Repurchase of common stock | (1,212) | 0 | 0 |
Proceeds from common stock issuances | 5,703 | 4,386 | 24,966 |
Tax benefit (deficit) from stock-based compensation | 0 | 146 | (360) |
Net cash provided by financing activities | 4,321 | 4,168 | 159,765 |
Net (decrease) increase in cash and cash equivalents | (18,250) | (81,466) | 92,968 |
Effect of exchange rate changes on cash and cash equivalents | 202 | 1,716 | 596 |
Cash and cash equivalents at beginning of period | 90,382 | 170,132 | 76,568 |
Cash and cash equivalents at end of period | 72,334 | 90,382 | 170,132 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 2,286 | 2,440 | 125 |
Income taxes paid, net | 854 | 146 | 1,168 |
Supplemental disclosure of non-cash investing and financing activities | |||
Acquisition of property and equipment through accounts payable and accrued liabilities | $ 111 | $ 385 | $ 34 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company ServiceSource International, Inc. ("ServiceSource" or the "Company") is a global leader in customer and revenue lifecycle solutions that power enterprise revenue relationships, partnering with B2B technology and technology-enabled companies to optimize maintenance, support and subscription revenue streams, while also improving end customer relationships and loyalty. The Company delivers these results via dedicated service teams and integral cloud-based technologies, leveraging benchmarks and best-practices derived from its rich database of service and renewal behavior. By integrating managed services, cloud software and data, the Company provides its clients with insights into their end customers' businesses, end-to-end management and optimization of the service-contract renewals process and customer success activities, including data management, quoting, selling and recurring revenue business intelligence. The Company receives commissions from its clients based on renewal sales that the Company generates on their behalf under a pay-for-performance or flat-rate model. In addition, the Company also offers a purpose-built cloud application to maximize the renewal of subscriptions, maintenance and support contracts and receives subscription fees from its clients for the SaaS product. The Company’s corporate headquarters is located in San Francisco, California. The Company has additional U.S. offices in Colorado, Tennessee and Washington, and International offices in Bulgaria, Ireland, Japan, Malaysia, Philippines, Singapore, and the United Kingdom. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation The accompanying consolidated financial statements of ServiceSource include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of net revenue and expenses during the reporting period. The Company’s significant accounting judgments and estimates include, but are not limited to: revenue recognition, the valuation and recognition of stock-based compensation, recognition and measurement of current and deferred income tax assets and liabilities and uncertain tax positions and the provision for bad debts. The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. However, future events are subject to change and estimates and judgments routinely require adjustment. Actual results may differ from these estimates, and these differences may be material. Reclassifications Amounts shown in the Accrued liabilities and other caption in the Consolidated Balance Sheet as of December 31, 2014 and the Consolidated Statement of Cash Flows for the year ended December 31, 2014 and 2013 have been reclassified into Accrued expenses and Other current liabilities to reflect the current period presentation. Segment Reporting The Company operates its business as two reportable segments, Managed Services and Cloud and Business Intelligence ("CBI"). Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and is evaluated by the chief operating decision maker (CODM) (which for ServiceSource is its Chief Executive Officer) in deciding how to allocate resources and assess performance. See Note 15 for segment information. Significant Risks and Uncertainties The Company is subject to certain risks and uncertainties that could have a material and adverse effect on its future financial position or results of operations. The Company’s clients are primarily high technology companies and any downturn in these industries, changes in clients’ sales strategies, or widespread shift away from end customers purchasing maintenance and support contracts could have an adverse impact on the Company’s consolidated results of operations and financial condition. Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, short-term investments, accounts receivable and the Note Hedges (Note 10). The Company is also exposed to a variety of market risks, including the effects of changes in foreign currency exchange rates and interest rates. Cash is maintained in demand deposit accounts at U.S., European and Asian financial institutions that management believes are credit worthy. Deposits in these institutions may exceed the amount of insurance provided on these deposits. Accounts receivable are derived from services performed for clients located primarily in the U.S., Europe and Asia. The Company attempts to mitigate the credit risk in its trade receivables through its ongoing credit evaluation process and historical collection experience. The Company maintains an allowance for doubtful accounts based upon the expected collectability of its accounts receivable, which takes into consideration an analysis of historical bad debts and other available information. Two customers represented 13% and 12% , respectively, of accounts receivable as of December 31, 2015. One customer represented 12% of accounts receivable as of December 31, 2014. Fair Value of Financial Instruments The Company accounts for certain assets and liabilities at fair value. As defined in the authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. An asset or liability’s level is based on the lowest level of input that is significant to the fair value measurement. The guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; Level 3: Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. Financial instruments not measured at fair value on a recurring basis include cash, restricted cash recorded in other assets, accounts receivable, accounts payable, accrued taxes, accrued expenses and other accrued liabilities and convertible notes. With the exception of the convertible notes and the financial instruments discussed in Note 6 - Fair Value of Financial Instruments, the fair value of the Company’s financial instruments approximate carrying value due to their short maturities. Strategic Investment in Private Company In 2013, we made an equity investment in a private company for $4.5 million , which represented less than 5% of the outstanding equity of the company. We carry this investment on a cost basis and periodically evaluate it to determine if there is an impairment in its carrying value. To date there has been no reduction to the cost basis of this investment. Foreign Currency Translation and Remeasurement Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date. Net revenue and expenses are translated at monthly average exchange rates. The Company accumulates net translation adjustments in equity as a component of accumulated other comprehensive income (loss). For non-U.S. subsidiaries whose functional currency is the U.S. dollar, transactions that are denominated in foreign currencies have been remeasured in U.S. dollars, and any resulting gains and losses are reported in the accompanying consolidated statements of operations. Foreign currency transaction (gains) losses of $(0.9) million , $0.8 million and $1.0 million , were included in other (expense) income, net during 2015 , 2014 and 2013 , respectively. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at their carrying values net of an allowance for doubtful accounts. The Company evaluates the ongoing collectability of its accounts receivable based on a number of factors such as the credit quality of its clients, the age of accounts receivable balances, collections experience, current economic conditions and other factors that may affect a client’s ability to pay. In circumstances where the Company is aware of a specific client’s inability to meet its financial obligations to the Company, a specific allowance for doubtful accounts is estimated and recorded, which reduces the recognized receivable to the estimated amount that management believes will ultimately be collected. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. The following are changes in the allowance for doubtful accounts during 2015 , 2014 and 2013 (in thousands): December 31, 2015 2014 2013 Balance, beginning of year $ 37 $ 128 $ 253 Charged to expense 137 37 123 Recoveries (37 ) (128 ) (248 ) Balance, end of year $ 137 $ 37 $ 128 Property and Equipment The Company records property and equipment at cost, less accumulated depreciation and amortization. Depreciation is recorded using the straight-line method over estimated useful lives of seven years for office furniture and equipment, two to three years for computer hardware and three to seven years for software. Leasehold improvements are amortized on a straight-line basis over the lesser of the lease term or the estimated useful life of the related assets, ranging from three to fifteen years. When assets are retired, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses. When assets are otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from their respective accounts and any gain or loss on such sale or disposal is reflected in interest expense and other, net. Asset Retirement Obligations The fair value of a liability for an asset retirement obligation (“ARO”) is recognized in the period in which it is incurred. The Company’s asset retirement obligations are primarily associated with leasehold improvements in APJ, which, at the end of a lease, are contractually obligated to be removed in order to comply with the lease agreement. At the inception of a lease with such conditions, the Company records an ARO liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. These assets and liabilities are reflected in other liabilities and other assets in the accompanying Consolidated Balance Sheets. The associated retirement costs are capitalized and included as part of the carrying value of the long-lived asset and amortized over the useful life of the asset. Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement costs incurred is recognized as an operating gain or loss in the consolidated statements of earnings. The following table summarizes the activity of the Company’s asset retirement obligation liability (in thousands): Asset retirement obligations as of December 31, 2013 $ 778 Additions 267 Accretion expense 28 Asset retirement obligations as of December 31, 2014 1,073 Revisions in estimated cash flows (229 ) Accretion expense 46 Asset retirement obligations as of December 31, 2015 $ 890 Capitalized Internal-Use Software Expenditures related to software developed or obtained for internal use are capitalized and amortized over a period of two to five years on a straight-line basis. The Company capitalizes direct external costs associated with developing or obtaining internal-use software. In addition, the Company also capitalizes certain payroll and payroll-related costs for employees or professional fees for consultants who are directly associated with the development of such applications. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred and are recorded in research and development on the accompanying consolidated statements of operations. Capitalized costs related to internal-use software under development are treated as construction-in-progress until the program, feature or functionality is ready for its intended use, at which time amortization commences. Goodwill Goodwill assets have indefinite useful lives and are not amortized, but are tested for impairment at least annually or as circumstances indicate their value may no longer be recoverable. The Company does not have intangible assets with indefinite useful lives other than goodwill. The Company tests for goodwill impairment at the reporting unit level on an annual basis in the fourth quarter of each of its fiscal years, and at any other time at which events occur or circumstances indicate that the carrying amount of goodwill may exceed its fair value. To assess if goodwill is impaired a qualitative assessment, referred to as the simplified method, is first performed to determine whether further quantitative impairment testing is necessary. This qualitative analysis evaluates factors including, but not limited to, macro-economic conditions such as deterioration in the entity's operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as an expectation that a reporting unit will be sold or a sustained decrease in the stock price on either an absolute basis or relative to peers. If, as a result of the qualitative assessment, the Company considers it more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then a two-step quantitative impairment test is performed. The first step requires comparing the fair value of the reporting unit to its net book value, including goodwill. A potential impairment exists if the fair value of the reporting unit is lower than its net book value. The second step of the process, which is performed only if a potential impairment exists, involves determining the difference between the fair value of the reporting unit's net assets other than goodwill and the fair value of the reporting unit. If this difference is less than the net book value of goodwill, impairment exists and is recorded. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows and determining appropriate discount rates, growth rates and other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value of each reporting unit which could trigger impairment. If a two-step quantitative impairment test is required, the fair value of each reporting unit is determined based upon the income approach. Under the income approach, the Company estimates the fair value of the reporting unit based upon the present value of estimated future cash flows. Cash flow projections are determined by management to be commensurate with the risk inherent in current business model. Key assumptions used to estimate the fair value of the reporting units include the discount rate, compounded annual revenue growth rates, operating expense assumptions, and terminal value capitalization rate. The discount rate used is based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit's ability to execute on the projected cash flows. The discount rate and terminal value capitalization rate are derived from the use of market data which are Level 3 inputs within the fair value hierarchy. The guidance for goodwill impairment testing based on reporting units. The $6.3 million of goodwill in the Consolidated Balance Sheet as of December 31, 2015 is assigned to the Managed Service reporting unit. Goodwill related to the CBI reporting unit generated from the January 25, 2014 acquisition of Scout Analytics was fully impaired in 2014. The Company used the simplified method described above to determine if any impairment existed as of December 31, 2015 and concluded that a two-step quantitative impairment test was not required and that its goodwill asset was not impaired as of December 31, 2015. Refer to Note 4 Goodwill and Other Intangibles Impairment for more information. Senior Convertible Notes In accounting for the senior convertible notes (the “Notes”) at issuance, the Company separated the Notes into debt and equity components pursuant to the accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion. The fair value of the debt component was estimated using an interest rate for nonconvertible debt, with terms similar to the Notes, excluding the conversion feature. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The excess of the principal amount of the Notes over the fair value of the debt component was recorded as a debt discount and a corresponding increase in additional paid-in capital. The debt discount is accreted to interest expense over the term of the Notes using the effective interest method. The amount recorded to additional paid-in capital is not to be remeasured as long as it continues to meet the conditions for equity classification. Impairment of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets, which include tangible assets and amortizable intangible such as internal-use software. Acquired intangible assets are amortized over their useful lives on a straight line basis which represents the pattern in which the Company derives benefit from the asset. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. The Company recognizes such impairment in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to such assets. In 2014, the Company recorded intangible assets as part of its acquisition of Scout Analytics. The Company recorded an impairment of intangible assets in relation to its Cloud and Business Intelligence business unit in 2014 of $2.5 million related to the cancellation of a product line originally acquired in the Scout acquisition. No impairment of any long-lived assets was identified or recorded during 2015. Operating Leases The Company’s operating lease agreements for office facilities include provisions for certain rent holidays, tenant incentives and escalations in the base price of the rent payment. The Company records rent holidays and rent escalations on a straight-line basis over the lease term and records the difference between expense and cash payments as deferred rent. Tenant incentives are recorded as deferred rent and amortized on a straight-line basis over the lease term. Deferred rent is included in other accrued liabilities in the accompanying consolidated balance sheets. Deferred Debt Issuance Costs The Company defers debt issuance costs, which primarily consists of the debt discount on the convertible debt and issuance costs related to the convertible debt. Such costs primarily relates to convertible notes (Note 10) and is amortized using the effective interest method over the term of the debt instrument. The amortization of deferred debt issuance costs is recorded as interest expense. Unamortized deferred debt issuance costs were $23.9 million at December 31, 2015 and $32.0 million as of December 31, 2014 . Amortization of deferred debt issuance costs was $8.0 million in 2015 , $7.5 million in 2014 and $2.8 million in 2013 , respectively. Estimated future amortization of deferred debt issuance costs expense will approximate $8.7 million in 2016 , $9.4 million in 2017 and $5.8 million in 2018 . Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses recorded as an element of equity but are excluded from net income (loss). The Company’s other comprehensive income (loss) consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency and unrealized gains and losses on available-for-sale securities. The Company has disclosed accumulated comprehensive other income (loss) as a separate component of stockholders' equity. Revenue Recognition The Company’s revenue is derived primarily from recurring revenue management. Other revenues include subscriptions to the Company’s cloud applications and professional services Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured from clients and no significant obligations remain unfulfilled by the Company. Recurring Revenue Management Revenue from recurring revenue management consists of fees earned from the sales of services contracts on behalf of the Company’s customers, which are referred to as clients, or assisting in their sales process. The Company’s contract obligations include administering and managing the sales and/or renewal processes for client contracts; providing adequately trained staff; reporting; and holding periodic business reviews with clients. Client obligations include providing a detailed listing of sales prospects, access to their databases or systems and sales or marketing materials. Fees are generally based on a fixed percentage of the overall sales value associated with the service contracts. However some client contracts include performance-based fees determined by the achievement of specified performance metrics. Recurring revenue management contracts entitle the Company to additional fees and adjustments which are invoked in various circumstances including a client’s failure to provide the Company with a specified minimum value of sales prospects, untimely delivery of client sales prospect data or other obligations inhibiting the Company’s ability to perform its obligations. In addition, many client contracts contain early termination fees. Recurring revenue management services are deemed delivered when clients accept purchased orders from their sales prospects (the end customer) and no significant post-delivery obligations remain for the Company. Fees from recurring revenue management services are recognized on a net basis since the Company acts as an agent on behalf of its clients. The Company does not provide the services being renewed by the end customers, nor does it determine pricing, terms or scope of services to the end customers. Performance incentive fees and early termination fees are recorded in the period when either the performance criteria have been met or a triggering event has occurred. Subscriptions Subscription revenue is comprised of subscriptions fees to access the Company’s cloud based applications. Subscription revenue is recognized ratably over the contract term, generally over a period of one to three years , commencing when the cloud applications are made available. The Company's subscription service arrangements are generally non-cancelable and do not contain refund-type provisions. Professional Services Professional services revenue is generated from implementation services. Professional services are deemed delivered upon the successful completion of implementation projects or when project milestones have been achieved and accepted by the client. Multiple Element Arrangements The Company enters into multiple element arrangements when clients utilize a combination of recurring revenue management services, subscriptions and professional services. Deliverables are separated at the inception of the arrangement if each deliverable has stand-alone value to the client. The Company believes that it has stand-alone value for professional services. Arrangement consideration is allocated based on the relative best selling prices of each deliverable. However, most fees earned from recurring revenue management services are contingent in nature as the fees earned by the Company are based on performance against the specific terms of each contract. Therefore, contingent fees from recurring revenue management services are excluded from the allocation of relative best selling prices at inception of multiple element arrangements. Selling prices for each deliverable is determined based on the selling price hierarchy of vendor-specific objective evidence (VSOE), third-party evidence (TPE), and best estimated selling price (BESP). Generally, the Company has not been able to establish VSOE for its deliverables as the items have not been sold separately. The Company has not been able to reliably determine the stand-alone selling prices of competitors’ products and services, and therefore cannot rely on TPE for its deliverables. Therefore, the Company utilizes BESP to determine the selling prices of its deliverables. The objective of BESP is to determine the price at which the Company would price a product or service if it were sold on a stand-alone basis. BESP is generally used for offerings that are not typically sold separately or for new offerings including Renew OnDemand. BESP is determined by considering multiple factors including, but not limited to, pricing practices, market conditions, competitive landscape, internal costs, geographies and gross margin. The determination of BESP is made through consultation with and formal approval with management, taking into consideration the Company’s marketing strategy. As these marketing strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to selling prices. Once arrangement consideration is allocated to the various deliverables in a multiple element arrangement, revenue is recognized when all other revenue recognition criteria has been achieved. Advertising Costs Advertising is expensed as incurred as a component of sales and marketing expenses on the consolidated statements of operations. Advertising expense was $0.1 million each year during 2015 , 2014 and 2013 . Income Taxes The Company accounts for income taxes using an asset and liability method, which requires the recognition of taxes payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences of temporary differences that currently exist between the tax basis and the financial reporting basis of our taxable subsidiaries’ assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. In the normal course of business the Company is subject to examination by taxing authorities throughout the world. These audits include questioning the timing and amount of deductions, the allocation of income among various tax jurisdictions and compliance with federal, state, local and foreign tax laws. The Company accounts for unrecognized tax benefits using a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. The Company records an income tax liability, if any, for the difference between the benefit recognized and measured and the tax position taken or expected to be taken on our tax returns. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision. Stock-Based Compensation The Company measures and recognizes compensation expense for all share-based awards made to employees and directors based on estimated fair values. The fair value of employee and director options is estimated on the date of grant using the Black-Scholes option-pricing model. The value of awards that are ultimately expected to vest is recognized as an expense over the requisite service periods. Since share-based compensation expense is based on awards ultimately expected to vest, it is reduced for expected forfeitures. For awards that are expected to result in a tax deduction, a deferred tax asset is established as the Company recognizes compensation expense. If the tax deduction exceeds the cumulative recorded compensation expense, the tax benefit associated with the excess deduction is considered a windfall benefit. The excess tax benefit from share compensation plans is recorded in members’ equity and classified as a financing cash flow on the consolidated statements of cash flows. Net Income (Loss) Per Common Share Basic net income (loss) per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested restricted stock units (“RSUs”). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standard Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in the FASB's Accounting Standards Codification ("ASC") 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB approved a one year deferral of the effective date to December 15, 2017, and early application would be permitted, but not before the original effective date of December 15, 2016, so the effective date will be the first quarter of fiscal year 2018 using one of two retrospective application methods. The Company is currently evaluating the impact ASU No. 2014-09 will have on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Cost, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2017, with early adoption permitted. The Company is currently evaluating the impact that adoption of ASU No. 2015-03 will have on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other - Internal Use Software, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the update specifies that the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. The update further specifies that the customer should account for a cloud computing arrangement as a service contract if the arrangement does not include a software license. ASU No. 2015- 05 will be effective for the Company in fiscal year 2016. Early adoption is permitted. An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share The basic and diluted net income (loss) per share calculations are presented below (in thousands, except for per share amounts): Years Ended December 31, 2015 2014 2013 Basic net loss per common share Net loss $ (40,413 ) $ (95,159 ) $ (22,852 ) Weighted-average common shares outstanding 85,417 82,872 78,408 Basic net loss per share $ (0.47 ) $ (1.15 ) $ (0.29 ) Years Ended December 31, 2015 2014 2013 Diluted net loss per common share Net loss used to determine diluted earnings per common shares $ (40,413 ) $ (95,159 ) $ (22,852 ) Weighted-average common shares outstanding used in basic calculation 85,417 82,872 78,408 Adjustment for dilutive potential shares — — — Weighted-average common shares for diluted net loss per share 85,417 82,872 78,408 Diluted net loss per share $ (0.47 ) $ (1.15 ) $ (0.29 ) Potential shares of common stock that are not included in the determination of diluted net loss per share because they are anti-dilutive for the periods presented consist of weighted stock options, non-vested restricted stock, and shares to be purchased under our Employee Stock Purchase Plan having an anti-dilutive effect of 9.5 million, 6.4 million and 2.0 million shares for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles Impairment | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles Impairment | Goodwill and Other Intangibles Impairment On January 22, 2014, the Company acquired Scout Analytics, Inc. (“Scout”), a privately held company for a total purchase consideration of $32.5 million , net of cash acquired. Scout provides cloud-based recurring revenue management solutions that enable information services, media publishing, and SaaS companies to understand how end customers engage with their online content. As a result of the acquisition, the Company recorded $22.7 million of goodwill and $9.0 million of other intangible assets. Goodwill Impairment During the third quarter of 2014, the Company’s market capitalization had a significant decline, the Company experienced slowing revenue growth and losses in 2014 for the CBI reporting unit in the near term and the Company experienced churn of the CBI client base. Therefore, the Company determined that there were sufficient indicators to require the Company to perform an interim impairment analysis in the third quarter of 2014. Based on the analysis, the Company determined that the carrying amount of the goodwill for the CBI reporting unit was in excess of its fair value and that a quantitative impairment test was necessary. The fair value of the reporting unit was determined using the income approach, which estimates the fair value based on the future discounted cash flows. Under the income approach, the company assumed a forecasted cash flow period of nine years, long-term annual growth rates of 4% and a discount rate of 16% . As required by the quantitative step of the impairment test, the Company performed an allocation of the fair value to all the assets and liabilities of the reporting unit, including identifiable intangible assets, based on their estimated fair values, to determine the implied fair value of goodwill. Accordingly, the Company recorded a goodwill impairment charge related to the CBI reporting unit of $21.0 million , during the quarter ended September 30, 2014 for the difference between the carrying value of the goodwill in the reporting unit and its implied fair value. Consistent with the approach in the third quarter, the Company performed an analysis for the CBI reporting unit and again determined that the fair value was less than the carrying value. The Company then performed the quantitative step of the impairment analysis which resulted in the impairment of all of the reporting unit’s remaining goodwill in the amount of $1.7 million in the fourth quarter of 2014. In total, the Company recorded a $22.7 million non-cash goodwill impairment charge in 2014 for its CBI reporting unit. No impairment of goodwill was recognized on the remaining $6.3 million of goodwill assigned to the Managed Services reporting unit for the year ended December 31, 2015. The changes in the carrying amount of goodwill by reporting units are as follows: Managed Services Cloud and Business Intelligence Total (in thousands) Balance as of December 31, 2013 $ 6,334 $ — $ 6,334 Addition due to acquisition $ — $ 22,653 $ 22,653 Impairment $ — $ (22,653 ) $ (22,653 ) Balance as of December 31, 2014 $ 6,334 $ — $ 6,334 Addition due to acquisition $ — $ — $ — Impairment $ — $ — $ — Balance as of December 31, 2015 $ 6,334 $ — $ 6,334 Intangible Assets Impairment In the fourth quarter of 2014, due to a move to a competing solution by the reseller of a technology acquired from the Scout acquisition, and lack of alternative uses of this technology, the Company decided to not further pursue opportunities with this technology and fully impaired the intangible assets related to this technology, trademarks and client contracts and recorded at charge of $2.5 million for the year-ended December 31, 2014. No impairment of intangible assets was recognized for the year ended December 31, 2015. Intangible Assets Intangible Assets consisted of the following: Gross Carrying Amount Accumulated Amortization Net (in thousands) Balance as of December 31, 2013 $ — $ — $ — Addition $ 9,020 $ — $ 9,020 Amortization expenses $ — $ (1,940 ) $ (1,940 ) Impairment $ (2,970 ) $ 513 $ (2,457 ) Balance as of December 31, 2014 $ 6,050 $ (1,427 ) $ 4,623 Addition $ — $ — $ — Amortization expenses $ — $ (1,513 ) $ (1,513 ) Impairment $ — $ — $ — Balance as of December 31, 2015 $ 6,050 $ (2,940 ) $ 3,110 Amortization expense for intangibles assets recognized was $1.5 million , $1.9 million and $0.0 million during the years ended December 31, 2015 , 2014, and 2013, respectively. The Company’s intangible asset is comprised of $1.5 million of developed technology assets, $1.1 million of customer relationships assets and $0.5 million of trade name assets as of December 31, 2015 . The estimated future amortization expense of purchased intangible assets as of December 31, 2015 was as follows: December 31, 2015 (in thousands) 2016 $ 1,513 2017 1,513 2018 84 Total $ 3,110 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-term Investments | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Short-term Investments | Cash, Cash Equivalents and Short-term Investments Cash equivalents consist of highly liquid fixed-income investments with original maturities of three months or less at the time of purchase. The Company has cash and cash equivalents held on its behalf by a third party of $0.8 million and $0.9 million as of December 31, 2015 and 2014 respectively. Short-term investments consist of readily marketable securities with a remaining maturity of more than three months from time of purchase. The Company classifies all of its cash equivalents and short-term investments as “available for sale,” as these investments are free of trading restrictions. These marketable securities are carried at fair value, with the unrealized gains and losses, net of tax, reported as accumulated other comprehensive income and included as a separate component of stockholders’ equity. Gains and losses are recognized when realized. When the Company determines that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in earnings. Gains and losses are determined using the specific identification method. The Company’s realized gains and losses in the years ended December 31, 2015 and 2014 were insignificant. Cash and cash equivalents and short-term investments consisted of the following as of December 31, 2015 and 2014 (in thousands): December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 72,105 $ — $ — $ 72,105 Cash equivalents: Money market mutual funds 229 — — 229 Total cash and cash equivalents 72,334 — — 72,334 Short-term investments: Corporate bonds 54,434 — (389 ) 54,045 U.S. agency securities 36,010 — (187 ) 35,823 Asset-backed securities 30,665 — (132 ) 30,533 U.S. Treasury securities 16,024 — (47 ) 15,977 Total short-term investments 137,133 — (755 ) 136,378 Cash, cash equivalents and short-term investments $ 209,467 $ — $ (755 ) $ 208,712 December 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 89,589 $ — $ — $ 89,589 Cash equivalents: Money market mutual funds 793 — — 793 Total cash and cash equivalents 90,382 — — 90,382 Short-term investments: Corporate bonds 49,110 29 (120 ) 49,019 U.S. agency securities 42,004 56 (17 ) 42,043 Asset-backed securities 21,083 8 (34 ) 21,057 U.S. Treasury securities 12,859 27 (5 ) 12,881 Total short-term investments 125,056 120 (176 ) 125,000 Cash, cash equivalents and short-term investments $ 215,438 $ 120 $ (176 ) $ 215,382 The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of December 31, 2015 (in thousands): Amortized Cost Estimated Fair Value Less than 1 year $ 12,527 $ 12,498 Due in 1 to 5 years 124,835 124,109 Total $ 137,362 $ 136,607 As of December 31, 2015 , the Company did not consider any of its investments to be other-than-temporarily impaired. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures certain financial instruments at fair value on a recurring basis. The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: • Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities. • Level 2 valuations are based on inputs that are observable, either directly or indirectly, other than quoted prices included within Level 1. Such inputs used in determining fair value for Level 2 valuations include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 valuations are based on information that is unobservable and significant to the overall fair value measurement. All of the Company’s cash equivalents and short-term investments are classified within Level 1 or Level 2. The following table presents information about the Company’s financial instruments that are measured at fair value as of December 31, 2015 and indicates the fair value hierarchy of the valuation (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Description Cash equivalents: Money market mutual funds $ 229 $ 229 $ — Total cash equivalents 229 229 — Short-term investments: Corporate bonds 54,045 — 54,045 U.S. agency securities 35,823 — 35,823 Asset-backed securities 30,533 — 30,533 U.S. Treasury securities 15,977 — 15,977 Total short-term investments 136,378 — 136,378 Cash equivalents and short-term investments $ 136,607 $ 229 $ 136,378 The following table presents information about the Company’s financial instruments that are measured at fair value as of December 31, 2014 and indicates the fair value hierarchy of the valuation (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Description Cash equivalents: Money market mutual funds $ 793 $ 793 $ — Total cash equivalents 793 793 — Short-term investments: Corporate bonds 49,019 — 49,019 U.S. agency securities 42,043 — 42,043 Asset-backed securities 21,057 — 21,057 U.S. Treasury securities 12,881 — 12,881 Total short-term investments 125,000 — 125,000 Cash equivalents and short-term investments $ 125,793 $ 793 $ 125,000 The convertible notes issued by the Company in August 2013 are shown in the accompanying consolidated balance sheets at their original issuance value, net of unamortized discount, and are not marked to market each period. The approximate fair value of the convertible notes was $126.0 million and $111.2 million as of December 31, 2015 and 2014 respectively. The fair value of the convertible notes was determined using quoted market prices for similar securities, which, due to limited trading activity, are considered Level 2 in the fair value hierarchy. The Company did not have any other financial instruments or long-term debt measured at fair value as of December 31, 2015 and 2014 , respectively. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment balances were comprised of the following (in thousands): December 31, 2015 2014 Computers and equipment $ 18,471 $ 16,335 Software 46,142 38,273 Leasehold improvements 12,338 12,643 Furniture and fixtures 8,853 9,584 85,804 76,835 Less: accumulated depreciation and amortization (59,901 ) (51,177 ) $ 25,903 $ 25,658 Depreciation and amortization expense during the years ended December 31, 2015 , 2014 and 2013 , was $13.7 million , $13.2 million and $11.7 million , respectively. Total property and equipment assets under capital lease at December 31, 2015 and 2014 , was $3.3 million and $3.3 million , respectively. Accumulated depreciation related to assets under capital lease as of these dates were $3.2 million and $3.1 million , respectively. The Company capitalized costs of $7.2 million , $3.0 million and $0.0 million , during 2015 , 2014 and 2013 , respectively, related to internal-use software. As of December 31, 2015 and 2014 , the carrying value of capitalized costs related to internal-use software, net of accumulated amortization, was $11.7 million and $8.5 million , respectively. Amortization of capitalized costs related to internal-use software was $5.0 million , $2.9 million and $4.4 million during 2015 , 2014 and 2013 , respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other current accrued liabilities balances were comprised of the following (in thousands): December 31, 2015 2014 Accrued Interest - Convertible Notes $ 948 $ 938 Deferred rent 738 855 ESPP Withholding 641 776 Total $ 2,327 $ 2,569 |
Credit Facility and Capital Lea
Credit Facility and Capital Leases | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Credit Facility and Capital Leases | Credit Facility and Capital Leases Revolving Credit Facility On July 5, 2012, the Company entered into a three -year credit agreement which provided for a secured revolving line of credit based on eligible accounts receivable up to $30.0 million with a $2.0 million letter of credit sublimit. On May 5, 2014, the Company entered into an amendment to the credit agreement which reduced the secured revolving line of credit to $10.0 million . The credit agreement expired on July 5, 2015. Letter of Credit On February 3, 2015, the Company issued a $1.2 million letter of credit in connection with a lease for a new San Francisco office facility. The letter of credit is secured by $1.2 million of a money market account which is classified as restricted cash in other assets, net, in the accompanying consolidated balance sheet. Capital Leases The Company has capital lease agreements that are collateralized by the underlying property and equipment and expire through September 2019 . The weighted-average imputed interest rates for capital lease agreements were 4.4% , 5.8% and 2.6% at December 31, 2015 , 2014 and 2013 , respectively. The future contractual maturities of capital lease obligations as of December 31, 2015 are as follows (in thousands): Years Ending 2016 $ 119 2017 80 2018 67 2019 51 2020 — Total $ 317 |
Convertible Notes (Notes)
Convertible Notes (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Convertible Notes | Convertible Notes Senior Convertible Notes In August 2013, the Company issued senior convertible notes (the "Notes") raising gross proceeds of $150.0 million . The Notes are governed by an Indenture, dated August 13, 2013 (the "Indenture"), between the Company and Wells Fargo Bank, National Association, as trustee. The Notes will mature on August 1, 2018, unless earlier repurchased or converted, and bear interest at a rate of 1.50% per year payable semi-annually in arrears on February 1 and August 1 of each year, commencing February 1, 2014. The Notes are convertible at an initial conversion rate of 61.6770 of common stock per $1,000 principal amount of Notes, which represents an initial conversion price of approximately $16.21 per share of common stock, subject to anti-dilution adjustments upon certain specified events, including in certain circumstances, upon a make-whole fundamental change (as defined in the Indenture). Upon conversion, the Notes will be settled in cash, shares of the Company’s common stock, or any combination thereof, at the Company’s option. Prior to February 1, 2018, the Notes are convertible only upon the following circumstances: • during any calendar quarter commencing after December 31, 2013, (and only during such calendar quarter), if for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter, the last reported sale price of common stock on such trading day is greater than or equal to 130% of the applicable conversion price on such trading day. • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of common stock and the applicable conversion rate on each such trading day; or • upon the occurrence of specified corporate events described in the Indenture. Holders of the Notes may convert their Notes at any time on or after February 1, 2018, until the close of business on the second schedule trading day immediately preceding the maturity date, regardless of the foregoing circumstances. The holders of the Notes may require the Company to repurchase all or a portion of their Notes at a cash repurchase price equal to 100% of the principal amount of the Notes being repurchased, plus accrued and unpaid interest, if any, upon a fundamental change (as defined in the Indenture). In addition, upon certain events of default (as defined in the Indenture), the trustee by notice to the Company, or the holders of at least 25% in principal amount of the outstanding Notes by notice to the Company and the trustee, may, and the trustee at the request of such holders shall, declare 100% of the principal amount of the Notes, plus accrued and unpaid interest, if any, on all the Notes to be due and payable. In case of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal of and accrued and unpaid interest on the Notes will automatically become due and payable. To account for the Notes at issuance, the Company separated the Notes into debt and equity components pursuant to the accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion. The fair value of debt component was estimated using an interest rate for nonconvertible debt, with terms similar to the Notes, excluding the conversion feature. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The excess of the principal amount of the Notes over the fair value of the debt component was recorded as a debt discount and a corresponding increase in additional paid-in capital. The debt discount is accreted to interest expense over the term of the Notes using the interest method. The amount recorded to additional paid-in capital is not to be remeasured as long as it continues to meet the conditions of equity classification. Upon issuance of the $150.0 million of Notes, the Company recorded $111.5 million to debt and $38.5 million to additional paid-in capital. The Company incurred transaction costs of approximately $4.9 million related to the issuance of the Notes. In accounting for these costs, the Company allocated the costs to the debt and equity components in proportion to the allocation of proceeds from the issuance of the Notes to such components. Transaction costs allocated to the debt component of $3.6 million are deferred as an asset and amortized to interest expense over the term of the Notes. The transaction costs allocated to the equity component of $1.3 million were recorded to additional paid-in capital. The transactions costs allocated to the debt component were recorded as deferred offering costs in other non-current assets. The net carrying amount of the liability component of the Notes as of December 31, 2015 and 2014 consists of the following (in thousands): December 31, 2015 2014 Principal amount $ 150,000 $ 150,000 Unamortized debt discount (21,908 ) (29,270 ) Net carrying amount $ 128,092 $ 120,730 The following table presents the interest expense recognized related to the Notes for the year ended December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Contractual interest expense at 1.5% per annum $ 2,250 $ 2,250 Amortization of debt issuance costs 686 635 Accretion of debt discount 7,362 6,815 Total $ 10,298 $ 9,700 The net proceeds from the Notes were approximately $145.1 million after payment of the initial purchasers' offering expense. The Company used approximately $31.4 million of the net proceeds from the Notes to pay the cost of the Note Hedges described below, which was partially offset by $21.8 million of the proceeds from the Company's sale of the Warrants also described below. Note Hedges Concurrent with the issuance of the Notes, the Company entered into note hedges ("Note Hedges") with certain bank counterparties, with respect to its common stock. The Company paid $31.4 million for the Note Hedges. The Note Hedges cover approximately 9.25 million shares of the Company's common stock at a strike price of $16.21 per share. The Note Hedges will expire upon the maturity of the Notes. The Note Hedges are intended to reduce the potential dilution to the Company's common stock upon conversion of the Notes and/or offset the cash payment in excess of the principal amount of the Notes the Company is required to make in the event that the market value per share of the Company's common stock at the time of exercise is greater than the conversion price of the Notes. Warrants Separately, the Company entered into warrant transactions, whereby it sold warrants to the same bank counterparties as the Note Hedges to acquire approximately 9.25 million shares of the Company's common stock at an initial strike price of $21.02 per share ("Warrants"), subject to anti-dilution adjustments. The Company received proceeds of approximately $21.8 million from the sale of the Warrants. If the fair value per share of the Company's common stock exceeds the strike price of the Warrants, the Warrants will have a dilutive effect on earnings per share, unless the Company elects, subject to certain conditions, to settle the Warrants in cash. The amounts paid and received for the Note Hedges and the Warrants have been recorded in additional paid-in capital. The fair value of the Note Hedges and the Warrants are not remeasured through earnings each reporting period. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company leases its office space and certain equipment under non-cancelable operating lease agreements with various expiration dates through November 2022 . Rent expense during 2015 , 2014 and 2013 was $9.4 million , $9.2 million and $8.6 million , respectively. The Company recognizes rent expense on a straight-line basis over the lease period and accrues for rent expense incurred but not paid. In May 2015, the Company commenced a 7 -year office lease expiring in November 2022, for a new corporate headquarters in San Francisco, California to occupy 24,394 square feet. The total minimum lease payments are estimated to be approximately $13.3 million over the lease term. 7 In October 2015, the Company signed a 6 -year office lease expiring in July 2021, for a new service delivery center in Manila, Philippines to occupy 46,134 square feet. The total minimum lease payments are estimated to be approximately $7.0 million over the lease term. In December 2015, the Company signed a 5 -year office lease expiring in February 2021, for a new service delivery center in Sofia, Bulgaria to occupy 22,104 square feet. The total minimum lease payments are estimated to be approximately $1.8 million over the lease term. Future annual minimum lease payments under all non-cancelable operating leases as of December 31, 2015 were as follows (in thousands): Fiscal Year 2016 $ 9,375 2017 9,167 2018 8,556 2019 7,209 2020 6,034 Thereafter 8,778 Total $ 49,119 Purchase Orders The Company had $11.1 million in non-cancelable purchase commitments with our suppliers as of December 31, 2015 . Litigation On July 8, 2015, a single plaintiff filed a putative securities class action lawsuit, Weller v. ServiceSource International, Inc. et al., in the U.S. District Court for the Northern District of California (the “Weller Lawsuit”) against the Company and the Company’s former Chief Executive Officer. The Weller Lawsuit was brought on behalf of purchasers of Company stock during the period January 22, 2014 through May 1, 2014, and alleges violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In connection with the mandatory lead plaintiff appointment process under the Private Securities Litigation Reform Act (PSLRA), various law firms issued press releases between July 2015 and September 2015 to search for additional shareholders that would be willing to serve as lead plaintiffs in this lawsuit. This solicitation period ended on September 29, 2015 and no other shareholders came forward, leaving only the named plaintiff as the sole shareholder seeking to be appointed lead plaintiff. The court appointed Weller as lead plaintiff on October 21, 2015. At this time, no motion to certify a class has been filed. The Company believes that the claims are meritless, and will vigorously defend itself against such claims. From time to time, the Company may be subject to other litigation or threatened litigation arising in the ordinary course of our business. Although the results of litigation and claims cannot be predicted with certainty, the Company is currently not aware of any litigation or threats of litigation in which the final outcome could have a material adverse effect on our business, operating results, financial position, or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. The Company records a contingent liability when it is probable that a loss has been incurred and the amount is reasonably estimable in accordance with accounting for contingencies. |
Share Repurchase Program and St
Share Repurchase Program and Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Repurchase Program and Stock-Based Compensation | Share Repurchase Program and Stock-Based Compensation Share Repurchase Program In August 2015, the Board authorized a stock repurchase program ("the program") to repurchase up to $30.0 million worth of common stock of the Company. The program expires in August 2017. The aggregate amount available under the program was approximately $28.8 million as of December 31, 2015. The Company’s share repurchase program does not obligate it to acquire any specific number of shares. Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. The Company cash settles with the program broker periodically and reflects any unsettled amounts as a current liability at each period end. The following shares of common stock were repurchased under the above-described repurchase plan: Period Shares (in thousands) Weighted-average price per share Amount (includes commissions) (in thousands) For the three months ended September 30, 2015 159 4.12 $ 655 For the three months ended December 31, 2015 136 4.09 557 Total for the year ended December 31, 2015 295 $ 1,212 Stock Option Plans The Company maintains the following stock plans: the 2011 Equity Incentive Plan (the “2011 Plan”) and the 2011 Employee Stock Purchase Plan. The Company’s board of directors, by delegation to its compensation committee, administers the 2011 Plan and has authority to determine the directors, officers, employees and consultants to whom options, restricted stock units or restricted stock awards may be granted, the option price or restricted stock purchase price, the timing of when each share is exercisable and the duration of the exercise period and the nature of any restrictions or vesting periods applicable to an option or restricted stock grant Under the 2011 Plan, options granted are generally subject to a four -year vesting period whereby 25% of the options become vested after a one -year period and the remainder then vests monthly through the end of the vesting period. Vested options may be exercised up to ten years from the grant date, as defined in the 2011 Plan. Vested but unexercised options expire 90 days after termination of employment with the Company. The restricted stock units and awards typically vest over four years with annual vesting as to one-fourth of the grant on each anniversary date with vesting contingent upon employment with the Company. The Company elected to recognize the compensation cost of all stock-based awards on a straight-line basis over the vesting period of the award. Further, the Company applied an estimated forfeiture rate to unvested awards when computing the share compensation expenses. The Company estimated the forfeiture rate for unvested awards based on its historical experience on employee turnover behavior and other factors. At the end of each fiscal year, the share reserve under the 2011 Plan increases automatically by an amount equal to 4% of the outstanding shares as of the end of that most recently completed fiscal year or 3,840,000 shares, whichever is less. On January 1, 2016, 3.5 million additional shares were reserved under the 2011 Equity Incentive Plan pursuant to the automatic increase. Determining Fair Value of Stock Options The estimated fair value of stock options and awards granted during 2015 , 2014 and 2013 , was approximately $18.6 million , $19.4 million and $29.3 million , respectively. The Company estimates the fair value of stock option awards at the date of grant using the Black-Scholes option-pricing model. Options are granted with an exercise price equal to the fair value of the common stock as of the date of grant. Compensation expense is amortized net of estimated forfeitures on a straight-line basis over the requisite service period of the options, which is generally four years. Restricted stock vest over four years and upon vesting, entitles the holder to one share of common stock for each restricted stock and has an exercise price of $0.0001 per share, which is equal to the par value of the Company’s common stock. The fair value of the restricted stock is based on the Company’s closing stock price on the date of grant, and compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the vesting period. The fair value of each grant of options during 2015 , 2014 and 2013 was determined by the Company using the methods and assumptions discussed below. The Company stratifies its population of outstanding share options into two relatively homogeneous groups to estimate the expected term and forfeiture rate of options grants. Each of these inputs is subjective and generally requires significant judgment to determine. Expected Term —The expected term represents the period that the Company’s share-based awards are expected to be outstanding. The Company calculated the expected term of share options using four data points: options exercised, options expired, options forfeited and options outstanding. The weighted-average of the four data points were used to calculate the expected term. Expected Volatility —The expected volatility was based on the historical stock volatility of several of the Company’s self-designated publicly listed comparable companies over a period equal to the expected terms of the options, as the Company has limited trading history to use the volatility of its own common shares. Risk-Free Interest Rate —The risk-free interest rate was based on the implied yield on U.S. Treasury zero-coupon issues for each option grant date with maturities approximately equal to the option’s contractual term. Expected Dividend Yield —The Company has not paid dividends on its common shares nor does it expect to pay dividends in the foreseeable future. Forfeiture Rate —The Company estimated its forfeiture rate based on an analysis of its actual forfeitures and will continue to evaluate the adequacy of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior, and other factors. The impact from a forfeiture-rate adjustment will be recognized in full in the period of adjustment, if the actual number of future forfeitures differs from that estimated by the Company. The weighted average Black-Scholes option-pricing model assumptions for years ended 2015 , 2014 and 2013 were as follows: Years Ended December 31, 2015 2014 2013 Expected term (in years) 5.0 5.0 5.0 Expected volatility 34 % 37 % 43 % Risk-free interest rate 1.64 % 1.57 % 1.19 % Expected dividend yield — % — % — % Employee Stock Purchase Plan The Company’s 2011 Employee Stock Purchase Plan (the “ESPP”) is intended to qualify under Section 423 of the Internal Revenue Code of 1986. Under the ESPP, employees are eligible to purchase common stock through payroll deductions of up to 10% of their eligible compensation, subject to any plan limitations. The purchase price of the shares on each purchase date is equal to 85% of the lower of the fair market value of the Company’s common stock on the first and last trading days of each six -month offering period. The Company estimates the fair value of purchase rights under the ESPP using the Black-Scholes option-pricing model. The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes option valuation model and the straight-line attribution approach with the following weighted-average assumptions: Years Ended December 31, 2015 2014 2013 Expected term (in years) 0.5 -1.0 0.5 -1.0 0.5 -1.0 Expected volatility 35 % 32 % 27 % Risk-free interest rate 0.24%-0.37% 0.05%-0.09% 0.13%-0.17% Expected dividend yield — % — % — % The expected term represents the period of time from the beginning of the offering period to the purchase date. The Company uses its peer market volatility for a period equivalent to the expected term of the options to estimate the expected volatility. The risk-free interest rate that the Company uses in the Black-Scholes option valuation model is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term. The Company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future, and, therefore, used an expected dividend yield of zero in the valuation model. The ESPP provides that additional shares are reserved under the plan annually on the first day of each fiscal year in an amount equal to the lesser of (i) 1.5 million shares, (ii) one percent of the outstanding shares of common stock on the last day of the immediately preceding fiscal year, or (iii) an amount determined by the board of directors and/or the compensation committee of the board of directors. As of December 31, 2015 , 1,483,429 shares had been issued under the ESPP and 2,559,144 shares were available for future issuance. On January 1, 2016, 0.9 million additional shares were reserved under the 2011 Employee Stock Purchase Plan. Stock Awards Issued to Employees Option and RSU activity under the Option Plans for 2015 , 2014 and 2013 was as follows (shares and aggregate intrinsic value in thousands): Options Outstanding Restricted Stock Outstanding Shares Available for Grant Number of Shares Weighted- Average Exercise Price Number of Shares Outstanding—January 1, 2013 4,024 15,189 6.98 3,928 Additional shares reserved under the 2011 equity incentive plan 3,025 — — — Granted (6,565 ) 3,023 7.43 3,542 Options exercised/ Restricted stock released — (5,147 ) 4.47 (920 ) Canceled/Forfeited 5,271 (4,157 ) 12.77 (1,119 ) Outstanding — December 31, 2013 5,755 8,908 5.89 5,431 Additional shares reserved under the 2011 equity incentive plan 3,279 — — — Granted (8,554 ) 4,345 4.46 4,209 Options exercised/ Restricted stock released — (518 ) 5.13 (1,332 ) Canceled/Forfeited 5,502 (2,665 ) 6.77 (2,832 ) Outstanding — December 31, 2014 5,982 10,070 5.08 5,476 Additional shares reserved under the 2011 equity incentive plan 3,364 — — — Granted (6,696 ) 4,206 4.45 2,490 Options exercised/ Restricted stock released — (1,126 ) 4.13 (1,966 ) RSU shares withheld for taxes 212 212 Canceled/Forfeited 4,193 (2,534 ) 5.65 (1,660 ) Outstanding — December 31, 2015 7,055 10,616 4.79 4,552 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Options vested and expected to vest—December 31, 2015 9,770 $ 4.82 6.54 $ 2,868 Options exercisable—December 31, 2015 4,520 5.18 3.57 775 Restricted stock expected to vest- December 31, 2015 3,514 — 1.36 16,201 The weighted-average grant date fair value of options granted during 2015 , 2014 and 2013 was $1.45 , $1.56 and $3.18 , respectively. The weighted average grant date fair values of restricted stock units granted during 2015 , 2014 and 2013 was $5.03 , $4.62 and $8.26 , respectively. The aggregate intrinsic value of options exercised under the Option Plans was $1.3 million , $1.7 million and $23.9 million , in 2015 , 2014 and 2013 , respectively, determined as of the date of option exercise. The intrinsic value is calculated as the difference between the fair value of the common shares on the exercise date and the exercise price of the option shares. The total estimated fair value of options shares vested in 2015 , 2014 and 2013 was $11.0 million , $4.8 million and $15.9 million , respectively. Stock-based compensation expense is based on applying estimated fair values determined at the grant date to those options granted in the year that are ultimately expected to vest. Accordingly, the fair values calculated on the total population of grants have been reduced for estimated forfeitures expected to occur in the future. The table below summarizes stock-based compensation expense as allocated within the Company’s consolidated statements of operations (in thousands): Years Ended December 31, 2015 2014 2013 (in thousands) Includes stock-based compensation of: Cost of revenue $ 2,666 $ 3,995 $ 3,303 Sales and marketing 3,393 6,193 9,831 Research and development 1,299 2,800 2,414 General and administrative 6,029 7,911 8,072 Restructuring and other 2,579 $ — $ — Total stock-based compensation $ 15,966 $ 20,899 $ 23,620 The above table does not include $0.4 million of stock-based compensation that was capitalized related to internal-use software in 2015. There was no capitalized stock-based compensation related to internal-use software in 2014 or 2013. As of December 31, 2015 there was $20.3 million of unrecognized compensation expense related to non-vested share-based compensation arrangements granted under the 2011 Plan, which is expected to be recognized over a weighted-average period of 3.07 years. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company maintains a 401(k) defined contribution benefit plan that covers domestic employees who have attained 21 years of age and provide at least 20 hours of service per week. This plan allows U.S. employees to contribute up to 90% of their pre-tax salary in certain investments at the discretion of the employee, up to maximum annual contribution limits established by the U.S. Department of Treasury. During 2015 , 2014 and 2013 , the Company matched up to 50% of employee contributions up to an annual limit of $2,000 . Matching contributions by the Company are fully vested upon completion of the first year of employment. Employer matching contributions, which may be discontinued at the Company’s discretion, amounted to $2.1 million , $1.9 million and $1.3 million , during 2015 , 2014 and 2013 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss from continuing operations before provision for income taxes for the Company’s domestic and international operations was as follows (in thousands): Years Ended December 31, 2015 2014 2013 U.S. $ (40,720 ) $ (88,616 ) $ (20,124 ) International 1,711 (6,241 ) (1,857 ) Loss before provision for income taxes $ (39,009 ) $ (94,857 ) $ (21,981 ) The income tax provision consisted of the following (in thousands): Years Ended December 31, 2015 2014 2013 Current: Federal $ — $ (16 ) $ — Foreign 632 517 501 State and local (32 ) 424 153 Total current income tax provision 600 925 654 Deferred: Foreign 52 (97 ) (90 ) State and local 752 (526 ) 307 Total deferred income tax provision (benefit) 804 (623 ) 217 Income tax provision $ 1,404 $ 302 $ 871 The following table provides a reconciliation of income taxes provided at the federal statutory rate of 34% to the income tax provision (in thousands): Years Ended December 31, 2015 2014 2013 U.S. income tax at federal statutory rate $ (13,388 ) $ (32,246 ) $ (7,464 ) State income taxes, net of federal benefit 342 758 544 Foreign tax rate differential (85 ) 1,882 1,000 Permanent differences 254 464 231 Non-deductible impairment charges — 7,702 — Tax credits (405 ) (1,769 ) (1,824 ) Valuation allowance 14,349 23,645 8,366 Other, net 337 (134 ) 18 Income tax provision $ 1,404 $ 302 $ 871 In November 2015, the Philippine Economic Zone Authority granted a four year tax holiday to the Company's Philippine affiliate, commencing with its fiscal year beginning January 1, 2016. The earnings per share benefit for 2015 is not material. In December 2013, Malaysia granted a ten year tax holiday to the Company’s Malaysia affiliate, commencing with its fiscal year beginning January 1, 2014. This resulted in a tax benefit in fiscal 2013 of approximately $0.2 million from the elimination of the Malaysia subsidiary’s deferred tax liabilities. The earnings per share benefit in 2015, 2014 and 2013 is not material. The following table provides the effect of temporary differences that created deferred income taxes as of December 31, 2015 and 2014 . Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective periods (in thousands): December 31, 2015 2014 Current: Accrued liabilities $ 2,390 $ 4,290 State taxes 1 1 Current deferred tax assets 2,391 4,291 Non-current: Share-based compensation expense 12,823 14,177 Net operating loss carryforwards 66,541 48,594 Tax credits 5,692 5,325 Amortization of tax intangibles 7,639 5,210 Other, net 26 22 Non-current deferred tax assets 92,721 73,328 Total current and non-current deferred tax assets 95,112 77,619 Deferred tax liabilities: Property & equipment (6,122 ) (902 ) Convertible debt costs (1,635 ) (2,146 ) Net deferred tax assets 87,355 74,571 Less: Valuation allowance (85,524 ) (71,935 ) Net deferred tax assets $ 1,831 $ 2,636 As of December 31, 2015 and 2014, management assessed the realizability of deferred tax assets. Management evaluated the need for an amount of any valuation allowance for deferred tax assets on a jurisdictional basis. This evaluation utilizes the framework contained in ASC 740, Income Taxes, wherein management analyzes all positive and negative evidence available at the balance sheet date to determine whether all or some portion of our deferred tax assets will not be realized. Under this guidance, a valuation allowance must be established for deferred tax assets when it is more likely than not (a probability level of more than 50 percent) that they will not be realized. In assessing the realization of our deferred tax assets, we consider all available evidence, both positive and negative. In concluding on the evaluation, management placed significant emphasis on guidance in ASC 740, which states that “a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome.” Based upon available evidence, it was concluded on a more-likely-than-not basis that most of our U.S. deferred tax assets were not realizable as of December 31, 2015. Significant negative evidence included U.S. pretax losses (as calculated consistent with ASC 740) in each of the Company’s 2015 quarters and for the cumulative twelve-quarter period ended December 31, 2015. Additionally, Company forecasts indicated a continuation of U.S pretax losses for calendar 2016. Management also assessed the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use our existing state deferred tax assets. A significant piece of objective negative evidence evaluated was a state tax law change that occurred during the second quarter ended June 30, 2015 and impacts the manner in which the Company apportions revenue. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. On the basis of this evaluation as of December 31, 2015, the Company has recorded a valuation allowance of approximately $0.5 million to reflect only the portion of the state deferred tax asset that is more likely than not to be realized. Note that changes in tax laws and rates may affect other deferred tax assets and liabilities recorded in the future. These changes are accounted for in the period of enactment and thus are reflected in the Company’s December 31, 2015 financial results. As a result of the state tax law change discussed above, the Company has also recorded approximately $0.3 million in our tax provision for the year ended December 31, 2015. Management also concluded on a more-likely-than-not basis that our Singapore deferred tax assets were not realizable, using the analysis prescribed in ASC 740. Other factors were considered but provided neither positive nor negative objectively-verifiable evidence as to the realization of our deferred tax assets. The remaining deferred tax assets at December 31, 2015 relate to jurisdictions in which we have net adjusted historical pretax profits and sufficient forecast profitability to assure future realization of such deferred tax assets Based upon available evidence, it was concluded on a more-likely-than-not basis that most of our U.S. deferred tax assets were not realizable in 2014. Significant negative evidence included U.S. pretax losses (as calculated consistent with ASC 740) in each of the Company’s 2014 quarters and for the cumulative twelve-quarter period ended December 31, 2014. Additionally, Company forecasts indicated a continuation of U.S pretax losses for calendar 2015. Management also concluded on a more- likely-than-not basis that our Singapore and Ireland deferred tax assets were not realizable, using the analysis prescribed in ASC 740. Other factors were considered but provided neither positive nor negative objectively-verifiable evidence as to the realization of our deferred tax assets. The remaining deferred tax assets in 2014 relate to jurisdictions in which we have net adjusted historical pretax profits and sufficient forecast profitability to assure future realization of such defer red tax assets. The change in the valuation allowance for the years ended December 31, 2015 and 2014 was an increase of $13.6 million and $29.8 million , respectively. The change in valuation allowance for the year ended December 31, 2015 of $13.6 million includes a net addition charged to expense of approximately $16.1 million offset by a write-off of approximately $2.5 million related to the effect of stock-based compensation shortfalls. As of December 31, 2015 , the Company had net operating loss carryforwards of approximately $225.2 million for federal income tax purposes and approximately $120.9 million for California income tax purposes. These losses are available to reduce taxable income and expire at various dates beginning in 2017 . Approximately $50.2 million of federal net operating loss carryforwards and $35.2 million of California net operating loss carryforwards are related to excess tax benefits from stock-based compensation. The tax benefits associated with net operating losses attributed to stock-based compensation will be credited to additional paid-in capital when realized. The Company uses a “with and without” approach to determine the utilization of excess tax benefits from stock-based compensation. The Company considers only the direct impact of stock option awards when calculating the amount of windfalls or shortfalls attributable to stock-based compensation. At December 31, 2015 , the Company had $2.5 million of U.S. federal research and development credits which expire beginning in 2031 , and $3.5 million of California research and development credits which do not expire. The Company also has $0.4 million of California Enterprise Zone Credits which expire beginning in 2023 if not utilized, and $2.2 million of other state tax credits which expire beginning in 2024 if not utilized. Utilization of the Company’s net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration or elimination of the net operating loss and tax credit carryforwards before utilization. Management believes that the limitation will not limit utilization of the carryforwards prior to their expiration. The Company acquired U.S. federal net operating loss carryforwards of Scout Analytics, Inc. upon the acquisition of that entity in January 2014, subject to the ownership change limitations. Acquired U.S. federal net operating losses from Scout total approximately $30.2 million , net of amounts unavailable due to ownership change limitations, which amount is included in the total U.S. federal net operating loss above. The Company’s income taxes payable has been adjusted for the tax benefits associated with employee stock option transactions. These adjustments to stockholders’ equity amounted to less than $0.1 million credit and $0.1 million credit for the years ended December 31, 2015 and 2014 , respectively. The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. In the normal course of business the Company is subject to examination by taxing authorities throughout the world. These audits could include examining the timing and amount of deductions, the allocation of income among various tax jurisdictions and compliance with federal, state, local and foreign tax laws. The Company is currently under audit by the state of California for its 2008 through 2010 tax years. The 2005 through 2014 tax years generally remain subject to examination by federal, state and foreign tax authorities. The Company has implemented the provisions of ASC 740-10, Accounting for Uncertainty in Income Taxes. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): December 31, Years Ended 2015 2014 2013 Beginning balance $ 948 $ 880 $ 433 Additions based on tax positions related to the current year 62 169 317 Additions for tax position of prior years — — 130 Reductions for tax positions of prior years (73 ) (101 ) — Ending balance $ 937 $ 948 $ 880 At December 31, 2015 , the Company had a liability for unrecognized tax benefits of $0.9 million , none of which, if recognized, would affect the Company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the year ended December 31, 2015 , the interest and penalties recognized were not material. During the years ended December 31, 2014 and 2013, the Company recognized and accrued an insignificant amount of interest or penalties related to unrecognized tax benefits. The Company considers its undistributed earnings of its foreign subsidiaries permanently reinvested in foreign operations and has not provided for U.S. income taxes on such earnings. As of December 31, 2015 the Company’s unremitted earnings from its foreign subsidiaries was $6.9 million . The determination of the unrecognized deferred U.S. income tax liability, if any, is not practicable due to the complexities associated with its hypothetical calculation. |
Segment and Geographical Inform
Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information Segment Information Managed Services- The Company’s managed services solution consists of end-to-end management and optimization of the recurring revenue process, including quoting, selling and business intelligence. The Company's managed services business is built on its pay-for-performance model, whereby clients pay the Company a commission based on renewal sales that it generates on their behalf. The Company’s managed services offerings include quoting and selling services, in which dedicated service teams have specific expertise in the clients’ businesses, are deployed under the Company's clients’ brands and follow a sales process tailored specifically to improve client retention and increase service contract renewals. Cloud and Business Intelligence- The Company’s cloud and business intelligence solution consist of its subscription sales and professional services to deploy the Company's solutions. Subscription sales consists of selling subscriptions to Renew OnDemand and Scout Analytics, both SaaS applications. The foundation of the Company’s cloud solution is Renew OnDemand, a SaaS-based renewal management system based on its data warehouse of transactional, analytical and industry data that grows with each service renewal transaction and client. The Company does not allocate sales and marketing, research and development, or general and administrative expenses to its operating segments because management does not include the information in its measurement of the performance of the operating segments. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM. No client represented 10% or more of the Company's revenues in 2015. One client represented 12% and 14% of the Company's revenue in 2014 and 2013, respectively. The following tables provide summary financial information by reportable segment (in thousands): Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Managed Services Cloud and Business Intelligence Managed Services Cloud and Business Intelligence Managed Services Cloud and Business Intelligence Net Revenue $ 227,645 $ 24,558 $ 240,573 $ 31,607 $ 255,547 $ 16,935 Cost of Revenue 155,898 15,471 170,820 23,189 147,278 15,171 Gross Profit $ 71,747 $ 9,087 $ 69,753 $ 8,418 $ 108,269 $ 1,764 Geographical Information The Company’s business is geographically diverse. During 2015 , 66% of our net revenue was earned in North America and Latin America (“NALA”), 24% in Europe, Middle East and Africa (“EMEA”) and 10% in Asia Pacific-Japan (“APJ”). Net revenue for a particular geography generally reflects commissions earned from sales of service contracts managed from sales centers in that geography and subscription sales and professional services to deploy the Company's solutions. Predominantly all of the service contracts sold and managed by the sales centers relate to end customers located in the same geography. All of NALA net revenue represents revenue generated in the United States. Net revenue by geographic region, is summarized as follows (in thousands): Year Ended December 31, 2015 2014 2013 Net revenue NALA $ 166,511 $ 176,928 $ 173,188 EMEA 59,708 70,425 73,839 APJ 25,984 24,827 25,455 Total net revenue $ 252,203 $ 272,180 $ 272,482 The majority of the Company’s assets at December 31, 2015 and 2014 were attributable to its U.S. operations. Property and equipment information is based on the physical location of the assets. The following table presents the long-lived assets, consisting of property and equipment, by geographic location (in thousands): December 31, 2015 2014 NALA $ 21,626 $ 21,682 EMEA 732 1,207 APJ 3,545 2,769 Total property and equipment, net $ 25,903 $ 25,658 |
Restructuring and Other
Restructuring and Other | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | Restructuring and Other The Company announced at the beginning of the third quarter of 2014 a restructuring effort to better align its cost structure with current revenue levels. The restructuring plans are accounted for in accordance with ASC 420, Exit or Disposal Cost Obligations. Restructuring and other charges during the years ended December 31, 2015 and 2014, was $3.7 million and $3.3 million , respectively. Restructuring charges in 2015 consisted of $1.1 million of separation payments and related employee benefits and $2.6 million of stock compensation related to the accelerated vesting of certain equity awards granted to the Company’s former interim CFO and CEO. Restructuring charges in 2014 consisted of $2.8 million of separation payments and related employee benefits and $0.5 million of charges related to cancellation of contracts with outside vendors. Restructuring and other reserve activities for the twelve months ended December 31, 2015 and 2014 are summarized as follows (in thousands): Restructuring Other Total Restructuring and other liability at January 1, 2014 $ — $ — $ — Charges to expense and other adjustments 2,054 1,260 3,314 Cash paid (1,690 ) (1,009 ) (2,699 ) Restructuring and other liability at December 31, 2014 364 251 615 Charges to expense and other adjustments 353 3,309 3,662 Cash paid (717 ) (886 ) (1,603 ) Acceleration of stock-based compensation expense in additional paid-in capital — (2,579 ) (2,579 ) Restructuring and other liability at December 31, 2015 $ — $ 95 $ 95 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Richard Campione was elected to the Company’s Board of Directors (the “Board”) on November 29, 2012. On December 19, 2012, the Company entered into a consulting agreement with Mr. Campione under which Mr. Campione provides certain software consulting services to the Company. The Audit Committee of the Board pre-approved this consulting agreement in accordance with the Company’s formal policy regarding related party transactions. The Company paid Mr. Campione $0.3 million for consulting services provided during the term of the agreement, which ended April 30, 2013. On November 13, 2014, the Company entered into an agreement with Altai Capital Management, L.P. (Altai) whereby the Company expanded the number of seats of its Board of directors to 9 from 8 and granted a seat to Altai as long as it holds a 10% or greater equity ownership in the Company. At the Company’s 2015 Annual Meeting, Altai Capital voted all of its shares of common stock of the Company in favor of each of the Company's nominees for director. In addition , the Company and Altai Capital entered into a Registration Rights Agreement. Altai Capital is entitled to demand registration rights. If Altai Capital requests in writing that the Company effect a registration that has an anticipated aggregate offering price to the public of at least $15.0 million , then the Company will be required to register all registrable securities that Altai Capital requests to be registered, subject to certain conditions and limitations. The Company is required to effect only one registration if on a long-form registration statement and up to four registrations if on a short-form registration statement. Depending on certain conditions, however, the Company may defer any such registration for a specified number of days. Altai Capital is entitled to piggyback registration rights. If the Company registers any of its securities either for its own account or for the account of other security holders, Altai Capital is entitled to include all or part of its shares in the registration, subject to certain conditions and limitations. Generally, all of the Company's fees, costs and expenses of registrations will be borne by the Company. However, certain costs of any shelf registration statements, in addition to underwriting discounts and commissions, will be borne by Altai Capital. The parties shall provide customary indemnification of each other in connection with any registered offering pursuant to the terms of the Registration Rights Agreement. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following table sets forth data derived from our unaudited quarterly Condensed Consolidated Statement of Operations data for each of the eight quarters ended December 31, 2015 . In management’s opinion, the data has been prepared on the same basis as the audited Consolidated Financial Statements included in this report, and reflects all necessary adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of this data. Three Months Ended Dec. 31, 2015 Sep. 30, 2015 Jun. 30, 2015 Mar. 31, 2015 Dec. 31, 2014 (1) Sep. 30, 2014 (2) Jun. 30, 2014 Mar. 31, 2014 (in thousands, except per share amounts) Net revenue $ 64,960 $ 59,432 $ 61,613 $ 66,197 $ 74,654 $ 64,713 $ 65,997 $ 66,816 Gross profit 24,667 16,864 18,921 20,382 25,976 15,495 17,479 19,221 Loss from operations (3,736 ) (8,187 ) (9,579 ) (8,191 ) (9,829 ) (39,119 ) (18,870 ) (16,031 ) Loss before provision for income taxes (5,954 ) (10,700 ) (12,318 ) (10,036 ) (13,200 ) (41,986 ) (21,066 ) (18,605 ) Net loss $ (5,978 ) $ (10,858 ) $ (13,407 ) $ (10,170 ) $ (13,541 ) $ (41,786 ) $ (21,092 ) $ (18,740 ) Net loss per common share: Basic and diluted $ (0.07 ) $ (0.13 ) $ (0.16 ) $ (0.12 ) $ (0.16 ) $ (0.50 ) $ (0.25 ) $ (0.23 ) (1) During the three months ended December 31, 2014, the Company recorded a goodwill impairment charge of $1.7 million and an intangible asset impairment charge of $2.5 million . (2) During the three months ended September 30, 2014, the Company recorded a goodwill impairment charge of $21.0 million . |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The accompanying consolidated financial statements of ServiceSource include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of net revenue and expenses during the reporting period. The Company’s significant accounting judgments and estimates include, but are not limited to: revenue recognition, the valuation and recognition of stock-based compensation, recognition and measurement of current and deferred income tax assets and liabilities and uncertain tax positions and the provision for bad debts. The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. However, future events are subject to change and estimates and judgments routinely require adjustment. Actual results may differ from these estimates, and these differences may be material. |
Segment Reporting | Segment Reporting The Company operates its business as two reportable segments, Managed Services and Cloud and Business Intelligence ("CBI"). Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and is evaluated by the chief operating decision maker (CODM) (which for ServiceSource is its Chief Executive Officer) in deciding how to allocate resources and assess performance. |
Significant Risks and Uncertainties | Significant Risks and Uncertainties The Company is subject to certain risks and uncertainties that could have a material and adverse effect on its future financial position or results of operations. The Company’s clients are primarily high technology companies and any downturn in these industries, changes in clients’ sales strategies, or widespread shift away from end customers purchasing maintenance and support contracts could have an adverse impact on the Company’s consolidated results of operations and financial condition. Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, short-term investments, accounts receivable and the Note Hedges (Note 10). The Company is also exposed to a variety of market risks, including the effects of changes in foreign currency exchange rates and interest rates. Cash is maintained in demand deposit accounts at U.S., European and Asian financial institutions that management believes are credit worthy. Deposits in these institutions may exceed the amount of insurance provided on these deposits. Accounts receivable are derived from services performed for clients located primarily in the U.S., Europe and Asia. The Company attempts to mitigate the credit risk in its trade receivables through its ongoing credit evaluation process and historical collection experience. The Company maintains an allowance for doubtful accounts based upon the expected collectability of its accounts receivable, which takes into consideration an analysis of historical bad debts and other available information. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company accounts for certain assets and liabilities at fair value. As defined in the authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. An asset or liability’s level is based on the lowest level of input that is significant to the fair value measurement. The guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; Level 3: Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. Financial instruments not measured at fair value on a recurring basis include cash, restricted cash recorded in other assets, accounts receivable, accounts payable, accrued taxes, accrued expenses and other accrued liabilities and convertible notes. With the exception of the convertible notes and the financial instruments discussed in Note 6 - Fair Value of Financial Instruments, the fair value of the Company’s financial instruments approximate carrying value due to their short maturities. |
Foreign Currency Translation and Remeasurement | Foreign Currency Translation and Remeasurement Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date. Net revenue and expenses are translated at monthly average exchange rates. The Company accumulates net translation adjustments in equity as a component of accumulated other comprehensive income (loss). For non-U.S. subsidiaries whose functional currency is the U.S. dollar, transactions that are denominated in foreign currencies have been remeasured in U.S. dollars, and any resulting gains and losses are reported in the accompanying consolidated statements of operations. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at their carrying values net of an allowance for doubtful accounts. The Company evaluates the ongoing collectability of its accounts receivable based on a number of factors such as the credit quality of its clients, the age of accounts receivable balances, collections experience, current economic conditions and other factors that may affect a client’s ability to pay. In circumstances where the Company is aware of a specific client’s inability to meet its financial obligations to the Company, a specific allowance for doubtful accounts is estimated and recorded, which reduces the recognized receivable to the estimated amount that management believes will ultimately be collected. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. |
Property and Equipment | Property and Equipment The Company records property and equipment at cost, less accumulated depreciation and amortization. Depreciation is recorded using the straight-line method over estimated useful lives of seven years for office furniture and equipment, two to three years for computer hardware and three to seven years for software. Leasehold improvements are amortized on a straight-line basis over the lesser of the lease term or the estimated useful life of the related assets, ranging from three to fifteen years. When assets are retired, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses. When assets are otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from their respective accounts and any gain or loss on such sale or disposal is reflected in interest expense and other, net. |
Asset Retirement Obligations | Asset Retirement Obligations The fair value of a liability for an asset retirement obligation (“ARO”) is recognized in the period in which it is incurred. The Company’s asset retirement obligations are primarily associated with leasehold improvements in APJ, which, at the end of a lease, are contractually obligated to be removed in order to comply with the lease agreement. At the inception of a lease with such conditions, the Company records an ARO liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. These assets and liabilities are reflected in other liabilities and other assets in the accompanying Consolidated Balance Sheets. The associated retirement costs are capitalized and included as part of the carrying value of the long-lived asset and amortized over the useful life of the asset. Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement costs incurred is recognized as an operating gain or loss in the consolidated statements of earnings. |
Capitalized Internal-Use Software | Capitalized Internal-Use Software Expenditures related to software developed or obtained for internal use are capitalized and amortized over a period of two to five years on a straight-line basis. The Company capitalizes direct external costs associated with developing or obtaining internal-use software. In addition, the Company also capitalizes certain payroll and payroll-related costs for employees or professional fees for consultants who are directly associated with the development of such applications. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred and are recorded in research and development on the accompanying consolidated statements of operations. Capitalized costs related to internal-use software under development are treated as construction-in-progress until the program, feature or functionality is ready for its intended use, at which time amortization commences. |
Goodwill | Goodwill Goodwill assets have indefinite useful lives and are not amortized, but are tested for impairment at least annually or as circumstances indicate their value may no longer be recoverable. The Company does not have intangible assets with indefinite useful lives other than goodwill. The Company tests for goodwill impairment at the reporting unit level on an annual basis in the fourth quarter of each of its fiscal years, and at any other time at which events occur or circumstances indicate that the carrying amount of goodwill may exceed its fair value. To assess if goodwill is impaired a qualitative assessment, referred to as the simplified method, is first performed to determine whether further quantitative impairment testing is necessary. This qualitative analysis evaluates factors including, but not limited to, macro-economic conditions such as deterioration in the entity's operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as an expectation that a reporting unit will be sold or a sustained decrease in the stock price on either an absolute basis or relative to peers. If, as a result of the qualitative assessment, the Company considers it more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then a two-step quantitative impairment test is performed. The first step requires comparing the fair value of the reporting unit to its net book value, including goodwill. A potential impairment exists if the fair value of the reporting unit is lower than its net book value. The second step of the process, which is performed only if a potential impairment exists, involves determining the difference between the fair value of the reporting unit's net assets other than goodwill and the fair value of the reporting unit. If this difference is less than the net book value of goodwill, impairment exists and is recorded. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows and determining appropriate discount rates, growth rates and other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value of each reporting unit which could trigger impairment. If a two-step quantitative impairment test is required, the fair value of each reporting unit is determined based upon the income approach. Under the income approach, the Company estimates the fair value of the reporting unit based upon the present value of estimated future cash flows. Cash flow projections are determined by management to be commensurate with the risk inherent in current business model. Key assumptions used to estimate the fair value of the reporting units include the discount rate, compounded annual revenue growth rates, operating expense assumptions, and terminal value capitalization rate. The discount rate used is based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting unit's ability to execute on the projected cash flows. The discount rate and terminal value capitalization rate are derived from the use of market data which are Level 3 inputs within the fair value hierarchy. The guidance for goodwill impairment testing based on reporting units. |
Senior Convertible Notes | Senior Convertible Notes In accounting for the senior convertible notes (the “Notes”) at issuance, the Company separated the Notes into debt and equity components pursuant to the accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion. The fair value of the debt component was estimated using an interest rate for nonconvertible debt, with terms similar to the Notes, excluding the conversion feature. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The excess of the principal amount of the Notes over the fair value of the debt component was recorded as a debt discount and a corresponding increase in additional paid-in capital. The debt discount is accreted to interest expense over the term of the Notes using the effective interest method. The amount recorded to additional paid-in capital is not to be remeasured as long as it continues to meet the conditions for equity classification. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates the recoverability of its long-lived assets, which include tangible assets and amortizable intangible such as internal-use software. Acquired intangible assets are amortized over their useful lives on a straight line basis which represents the pattern in which the Company derives benefit from the asset. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. The Company recognizes such impairment in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to such assets. |
Operating Leases | Operating Leases The Company’s operating lease agreements for office facilities include provisions for certain rent holidays, tenant incentives and escalations in the base price of the rent payment. The Company records rent holidays and rent escalations on a straight-line basis over the lease term and records the difference between expense and cash payments as deferred rent. Tenant incentives are recorded as deferred rent and amortized on a straight-line basis over the lease term. Deferred rent is included in other accrued liabilities in the accompanying consolidated balance sheets. |
Deferred Debt Issuance Costs | Deferred Debt Issuance Costs The Company defers debt issuance costs, which primarily consists of the debt discount on the convertible debt and issuance costs related to the convertible debt. Such costs primarily relates to convertible notes (Note 10) and is amortized using the effective interest method over the term of the debt instrument. The amortization of deferred debt issuance costs is recorded as interest expense. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses recorded as an element of equity but are excluded from net income (loss). The Company’s other comprehensive income (loss) consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency and unrealized gains and losses on available-for-sale securities. The Company has disclosed accumulated comprehensive other income (loss) as a separate component of stockholders' equity. |
Revenue Recognition | Revenue Recognition The Company’s revenue is derived primarily from recurring revenue management. Other revenues include subscriptions to the Company’s cloud applications and professional services Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured from clients and no significant obligations remain unfulfilled by the Company. Recurring Revenue Management Revenue from recurring revenue management consists of fees earned from the sales of services contracts on behalf of the Company’s customers, which are referred to as clients, or assisting in their sales process. The Company’s contract obligations include administering and managing the sales and/or renewal processes for client contracts; providing adequately trained staff; reporting; and holding periodic business reviews with clients. Client obligations include providing a detailed listing of sales prospects, access to their databases or systems and sales or marketing materials. Fees are generally based on a fixed percentage of the overall sales value associated with the service contracts. However some client contracts include performance-based fees determined by the achievement of specified performance metrics. Recurring revenue management contracts entitle the Company to additional fees and adjustments which are invoked in various circumstances including a client’s failure to provide the Company with a specified minimum value of sales prospects, untimely delivery of client sales prospect data or other obligations inhibiting the Company’s ability to perform its obligations. In addition, many client contracts contain early termination fees. Recurring revenue management services are deemed delivered when clients accept purchased orders from their sales prospects (the end customer) and no significant post-delivery obligations remain for the Company. Fees from recurring revenue management services are recognized on a net basis since the Company acts as an agent on behalf of its clients. The Company does not provide the services being renewed by the end customers, nor does it determine pricing, terms or scope of services to the end customers. Performance incentive fees and early termination fees are recorded in the period when either the performance criteria have been met or a triggering event has occurred. Subscriptions Subscription revenue is comprised of subscriptions fees to access the Company’s cloud based applications. Subscription revenue is recognized ratably over the contract term, generally over a period of one to three years , commencing when the cloud applications are made available. The Company's subscription service arrangements are generally non-cancelable and do not contain refund-type provisions. Professional Services Professional services revenue is generated from implementation services. Professional services are deemed delivered upon the successful completion of implementation projects or when project milestones have been achieved and accepted by the client. Multiple Element Arrangements The Company enters into multiple element arrangements when clients utilize a combination of recurring revenue management services, subscriptions and professional services. Deliverables are separated at the inception of the arrangement if each deliverable has stand-alone value to the client. The Company believes that it has stand-alone value for professional services. Arrangement consideration is allocated based on the relative best selling prices of each deliverable. However, most fees earned from recurring revenue management services are contingent in nature as the fees earned by the Company are based on performance against the specific terms of each contract. Therefore, contingent fees from recurring revenue management services are excluded from the allocation of relative best selling prices at inception of multiple element arrangements. Selling prices for each deliverable is determined based on the selling price hierarchy of vendor-specific objective evidence (VSOE), third-party evidence (TPE), and best estimated selling price (BESP). Generally, the Company has not been able to establish VSOE for its deliverables as the items have not been sold separately. The Company has not been able to reliably determine the stand-alone selling prices of competitors’ products and services, and therefore cannot rely on TPE for its deliverables. Therefore, the Company utilizes BESP to determine the selling prices of its deliverables. The objective of BESP is to determine the price at which the Company would price a product or service if it were sold on a stand-alone basis. BESP is generally used for offerings that are not typically sold separately or for new offerings including Renew OnDemand. BESP is determined by considering multiple factors including, but not limited to, pricing practices, market conditions, competitive landscape, internal costs, geographies and gross margin. The determination of BESP is made through consultation with and formal approval with management, taking into consideration the Company’s marketing strategy. As these marketing strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to selling prices. Once arrangement consideration is allocated to the various deliverables in a multiple element arrangement, revenue is recognized when all other revenue recognition criteria has been achieved. |
Advertising Costs | Advertising Costs Advertising is expensed as incurred as a component of sales and marketing expenses on the consolidated statements of operations. |
Income Taxes | Income Taxes The Company accounts for income taxes using an asset and liability method, which requires the recognition of taxes payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences of temporary differences that currently exist between the tax basis and the financial reporting basis of our taxable subsidiaries’ assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. In the normal course of business the Company is subject to examination by taxing authorities throughout the world. These audits include questioning the timing and amount of deductions, the allocation of income among various tax jurisdictions and compliance with federal, state, local and foreign tax laws. The Company accounts for unrecognized tax benefits using a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. The Company records an income tax liability, if any, for the difference between the benefit recognized and measured and the tax position taken or expected to be taken on our tax returns. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision. |
Stock-Based Compensation | Stock-Based Compensation The Company measures and recognizes compensation expense for all share-based awards made to employees and directors based on estimated fair values. The fair value of employee and director options is estimated on the date of grant using the Black-Scholes option-pricing model. The value of awards that are ultimately expected to vest is recognized as an expense over the requisite service periods. Since share-based compensation expense is based on awards ultimately expected to vest, it is reduced for expected forfeitures. For awards that are expected to result in a tax deduction, a deferred tax asset is established as the Company recognizes compensation expense. If the tax deduction exceeds the cumulative recorded compensation expense, the tax benefit associated with the excess deduction is considered a windfall benefit. The excess tax benefit from share compensation plans is recorded in members’ equity and classified as a financing cash flow on the consolidated statements of cash flows. |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic net income (loss) per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested restricted stock units (“RSUs”). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standard Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in the FASB's Accounting Standards Codification ("ASC") 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB approved a one year deferral of the effective date to December 15, 2017, and early application would be permitted, but not before the original effective date of December 15, 2016, so the effective date will be the first quarter of fiscal year 2018 using one of two retrospective application methods. The Company is currently evaluating the impact ASU No. 2014-09 will have on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Cost, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance is effective for the Company beginning in the first quarter of fiscal year 2017, with early adoption permitted. The Company is currently evaluating the impact that adoption of ASU No. 2015-03 will have on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other - Internal Use Software, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the update specifies that the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. The update further specifies that the customer should account for a cloud computing arrangement as a service contract if the arrangement does not include a software license. ASU No. 2015- 05 will be effective for the Company in fiscal year 2016. Early adoption is permitted. An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The Company is currently evaluating the impact that adoption of ASU No. 2015-03 will have on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17 Balance Sheet Classification of Deferred Taxes, which requires that deferred tax assets and liabilities to be classified as noncurrent in the consolidated balance sheet. The standard will be effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for financial statements that have not been previously issued. The standard may be applied either prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company is currently evaluating the impact that adoption of ASU No. 2015-17 will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842).” This standard requires entities that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The standard is effective for fiscal years and the interim periods within those fiscal years beginning after December 15, 2018. The guidance is required to be applied by the modified retrospective transition approach. Early adoption is permitted. The Company is currently assessing the impact of the adoption of this authoritative guidance on our consolidated financial statements. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Changes in Allowance for Doubtful Accounts | The following are changes in the allowance for doubtful accounts during 2015 , 2014 and 2013 (in thousands): December 31, 2015 2014 2013 Balance, beginning of year $ 37 $ 128 $ 253 Charged to expense 137 37 123 Recoveries (37 ) (128 ) (248 ) Balance, end of year $ 137 $ 37 $ 128 |
Summary of Asset Retirement Obligation Liability | The following table summarizes the activity of the Company’s asset retirement obligation liability (in thousands): Asset retirement obligations as of December 31, 2013 $ 778 Additions 267 Accretion expense 28 Asset retirement obligations as of December 31, 2014 1,073 Revisions in estimated cash flows (229 ) Accretion expense 46 Asset retirement obligations as of December 31, 2015 $ 890 |
Net Income (Loss) Per Common 28
Net Income (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income (Loss) per Share Calculations | The basic and diluted net income (loss) per share calculations are presented below (in thousands, except for per share amounts): Years Ended December 31, 2015 2014 2013 Basic net loss per common share Net loss $ (40,413 ) $ (95,159 ) $ (22,852 ) Weighted-average common shares outstanding 85,417 82,872 78,408 Basic net loss per share $ (0.47 ) $ (1.15 ) $ (0.29 ) Years Ended December 31, 2015 2014 2013 Diluted net loss per common share Net loss used to determine diluted earnings per common shares $ (40,413 ) $ (95,159 ) $ (22,852 ) Weighted-average common shares outstanding used in basic calculation 85,417 82,872 78,408 Adjustment for dilutive potential shares — — — Weighted-average common shares for diluted net loss per share 85,417 82,872 78,408 Diluted net loss per share $ (0.47 ) $ (1.15 ) $ (0.29 ) |
Goodwill and Other Intangible29
Goodwill and Other Intangibles Impairment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill by Reporting Units | The changes in the carrying amount of goodwill by reporting units are as follows: Managed Services Cloud and Business Intelligence Total (in thousands) Balance as of December 31, 2013 $ 6,334 $ — $ 6,334 Addition due to acquisition $ — $ 22,653 $ 22,653 Impairment $ — $ (22,653 ) $ (22,653 ) Balance as of December 31, 2014 $ 6,334 $ — $ 6,334 Addition due to acquisition $ — $ — $ — Impairment $ — $ — $ — Balance as of December 31, 2015 $ 6,334 $ — $ 6,334 |
Summary of Intangible Assets | Intangible Assets Intangible Assets consisted of the following: Gross Carrying Amount Accumulated Amortization Net (in thousands) Balance as of December 31, 2013 $ — $ — $ — Addition $ 9,020 $ — $ 9,020 Amortization expenses $ — $ (1,940 ) $ (1,940 ) Impairment $ (2,970 ) $ 513 $ (2,457 ) Balance as of December 31, 2014 $ 6,050 $ (1,427 ) $ 4,623 Addition $ — $ — $ — Amortization expenses $ — $ (1,513 ) $ (1,513 ) Impairment $ — $ — $ — Balance as of December 31, 2015 $ 6,050 $ (2,940 ) $ 3,110 |
Summary of Estimated Future Amortization Expense of Purchased Intangible Assets | The estimated future amortization expense of purchased intangible assets as of December 31, 2015 was as follows: December 31, 2015 (in thousands) 2016 $ 1,513 2017 1,513 2018 84 Total $ 3,110 |
Cash, Cash Equivalents and Sh30
Cash, Cash Equivalents and Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash and Cash Equivalents and Short-Term Investments | Cash and cash equivalents and short-term investments consisted of the following as of December 31, 2015 and 2014 (in thousands): December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 72,105 $ — $ — $ 72,105 Cash equivalents: Money market mutual funds 229 — — 229 Total cash and cash equivalents 72,334 — — 72,334 Short-term investments: Corporate bonds 54,434 — (389 ) 54,045 U.S. agency securities 36,010 — (187 ) 35,823 Asset-backed securities 30,665 — (132 ) 30,533 U.S. Treasury securities 16,024 — (47 ) 15,977 Total short-term investments 137,133 — (755 ) 136,378 Cash, cash equivalents and short-term investments $ 209,467 $ — $ (755 ) $ 208,712 December 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 89,589 $ — $ — $ 89,589 Cash equivalents: Money market mutual funds 793 — — 793 Total cash and cash equivalents 90,382 — — 90,382 Short-term investments: Corporate bonds 49,110 29 (120 ) 49,019 U.S. agency securities 42,004 56 (17 ) 42,043 Asset-backed securities 21,083 8 (34 ) 21,057 U.S. Treasury securities 12,859 27 (5 ) 12,881 Total short-term investments 125,056 120 (176 ) 125,000 Cash, cash equivalents and short-term investments $ 215,438 $ 120 $ (176 ) $ 215,382 |
Summary of Cost and Estimated Fair Value of Short-Term Fixed Income Securities | The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of December 31, 2015 (in thousands): Amortized Cost Estimated Fair Value Less than 1 year $ 12,527 $ 12,498 Due in 1 to 5 years 124,835 124,109 Total $ 137,362 $ 136,607 |
Fair Value of Financial Instr31
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Measurement of Financial Instruments | The following table presents information about the Company’s financial instruments that are measured at fair value as of December 31, 2015 and indicates the fair value hierarchy of the valuation (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Description Cash equivalents: Money market mutual funds $ 229 $ 229 $ — Total cash equivalents 229 229 — Short-term investments: Corporate bonds 54,045 — 54,045 U.S. agency securities 35,823 — 35,823 Asset-backed securities 30,533 — 30,533 U.S. Treasury securities 15,977 — 15,977 Total short-term investments 136,378 — 136,378 Cash equivalents and short-term investments $ 136,607 $ 229 $ 136,378 The following table presents information about the Company’s financial instruments that are measured at fair value as of December 31, 2014 and indicates the fair value hierarchy of the valuation (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Description Cash equivalents: Money market mutual funds $ 793 $ 793 $ — Total cash equivalents 793 793 — Short-term investments: Corporate bonds 49,019 — 49,019 U.S. agency securities 42,043 — 42,043 Asset-backed securities 21,057 — 21,057 U.S. Treasury securities 12,881 — 12,881 Total short-term investments 125,000 — 125,000 Cash equivalents and short-term investments $ 125,793 $ 793 $ 125,000 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment balances were comprised of the following (in thousands): December 31, 2015 2014 Computers and equipment $ 18,471 $ 16,335 Software 46,142 38,273 Leasehold improvements 12,338 12,643 Furniture and fixtures 8,853 9,584 85,804 76,835 Less: accumulated depreciation and amortization (59,901 ) (51,177 ) $ 25,903 $ 25,658 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Other Current Accrued Liabilities | Other current accrued liabilities balances were comprised of the following (in thousands): December 31, 2015 2014 Accrued Interest - Convertible Notes $ 948 $ 938 Deferred rent 738 855 ESPP Withholding 641 776 Total $ 2,327 $ 2,569 |
Credit Facility and Capital L34
Credit Facility and Capital Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Future Contractual Maturities of Capital Lease Obligations | The future contractual maturities of capital lease obligations as of December 31, 2015 are as follows (in thousands): Years Ending 2016 $ 119 2017 80 2018 67 2019 51 2020 — Total $ 317 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Net Carrying Amount of Liability Component of Notes | The net carrying amount of the liability component of the Notes as of December 31, 2015 and 2014 consists of the following (in thousands): December 31, 2015 2014 Principal amount $ 150,000 $ 150,000 Unamortized debt discount (21,908 ) (29,270 ) Net carrying amount $ 128,092 $ 120,730 |
Schedule of Interest Expense Recognized on Notes | The following table presents the interest expense recognized related to the Notes for the year ended December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Contractual interest expense at 1.5% per annum $ 2,250 $ 2,250 Amortization of debt issuance costs 686 635 Accretion of debt discount 7,362 6,815 Total $ 10,298 $ 9,700 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Annual Minimum Lease Payments Under All Noncancelable Operating Leases | Future annual minimum lease payments under all non-cancelable operating leases as of December 31, 2015 were as follows (in thousands): Fiscal Year 2016 $ 9,375 2017 9,167 2018 8,556 2019 7,209 2020 6,034 Thereafter 8,778 Total $ 49,119 |
Share Repurchase Program and 37
Share Repurchase Program and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Shares of Common Stock Repurchased | The following shares of common stock were repurchased under the above-described repurchase plan: Period Shares (in thousands) Weighted-average price per share Amount (includes commissions) (in thousands) For the three months ended September 30, 2015 159 4.12 $ 655 For the three months ended December 31, 2015 136 4.09 557 Total for the year ended December 31, 2015 295 $ 1,212 |
Summary of Option and RSU Activity | Option and RSU activity under the Option Plans for 2015 , 2014 and 2013 was as follows (shares and aggregate intrinsic value in thousands): Options Outstanding Restricted Stock Outstanding Shares Available for Grant Number of Shares Weighted- Average Exercise Price Number of Shares Outstanding—January 1, 2013 4,024 15,189 6.98 3,928 Additional shares reserved under the 2011 equity incentive plan 3,025 — — — Granted (6,565 ) 3,023 7.43 3,542 Options exercised/ Restricted stock released — (5,147 ) 4.47 (920 ) Canceled/Forfeited 5,271 (4,157 ) 12.77 (1,119 ) Outstanding — December 31, 2013 5,755 8,908 5.89 5,431 Additional shares reserved under the 2011 equity incentive plan 3,279 — — — Granted (8,554 ) 4,345 4.46 4,209 Options exercised/ Restricted stock released — (518 ) 5.13 (1,332 ) Canceled/Forfeited 5,502 (2,665 ) 6.77 (2,832 ) Outstanding — December 31, 2014 5,982 10,070 5.08 5,476 Additional shares reserved under the 2011 equity incentive plan 3,364 — — — Granted (6,696 ) 4,206 4.45 2,490 Options exercised/ Restricted stock released — (1,126 ) 4.13 (1,966 ) RSU shares withheld for taxes 212 212 Canceled/Forfeited 4,193 (2,534 ) 5.65 (1,660 ) Outstanding — December 31, 2015 7,055 10,616 4.79 4,552 |
Summary of Aggregate Intrinsic Value of Option Activities | Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Options vested and expected to vest—December 31, 2015 9,770 $ 4.82 6.54 $ 2,868 Options exercisable—December 31, 2015 4,520 5.18 3.57 775 Restricted stock expected to vest- December 31, 2015 3,514 — 1.36 16,201 |
Summary of Stock-Based Compensation Expense | The table below summarizes stock-based compensation expense as allocated within the Company’s consolidated statements of operations (in thousands): Years Ended December 31, 2015 2014 2013 (in thousands) Includes stock-based compensation of: Cost of revenue $ 2,666 $ 3,995 $ 3,303 Sales and marketing 3,393 6,193 9,831 Research and development 1,299 2,800 2,414 General and administrative 6,029 7,911 8,072 Restructuring and other 2,579 $ — $ — Total stock-based compensation $ 15,966 $ 20,899 $ 23,620 |
Stock Option Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Weighted Average Assumptions | The weighted average Black-Scholes option-pricing model assumptions for years ended 2015 , 2014 and 2013 were as follows: Years Ended December 31, 2015 2014 2013 Expected term (in years) 5.0 5.0 5.0 Expected volatility 34 % 37 % 43 % Risk-free interest rate 1.64 % 1.57 % 1.19 % Expected dividend yield — % — % — % |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Weighted Average Assumptions | The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes option valuation model and the straight-line attribution approach with the following weighted-average assumptions: Years Ended December 31, 2015 2014 2013 Expected term (in years) 0.5 -1.0 0.5 -1.0 0.5 -1.0 Expected volatility 35 % 32 % 27 % Risk-free interest rate 0.24%-0.37% 0.05%-0.09% 0.13%-0.17% Expected dividend yield — % — % — % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss from Continuing Operations Before Provision for Income Taxes | Loss from continuing operations before provision for income taxes for the Company’s domestic and international operations was as follows (in thousands): Years Ended December 31, 2015 2014 2013 U.S. $ (40,720 ) $ (88,616 ) $ (20,124 ) International 1,711 (6,241 ) (1,857 ) Loss before provision for income taxes $ (39,009 ) $ (94,857 ) $ (21,981 ) |
Summary of Income Tax Provision | The income tax provision consisted of the following (in thousands): Years Ended December 31, 2015 2014 2013 Current: Federal $ — $ (16 ) $ — Foreign 632 517 501 State and local (32 ) 424 153 Total current income tax provision 600 925 654 Deferred: Foreign 52 (97 ) (90 ) State and local 752 (526 ) 307 Total deferred income tax provision (benefit) 804 (623 ) 217 Income tax provision $ 1,404 $ 302 $ 871 |
Schedule of Reconciliation of Income Taxes Provided at Federal Statutory Rate to Income Tax Provision | The following table provides a reconciliation of income taxes provided at the federal statutory rate of 34% to the income tax provision (in thousands): Years Ended December 31, 2015 2014 2013 U.S. income tax at federal statutory rate $ (13,388 ) $ (32,246 ) $ (7,464 ) State income taxes, net of federal benefit 342 758 544 Foreign tax rate differential (85 ) 1,882 1,000 Permanent differences 254 464 231 Non-deductible impairment charges — 7,702 — Tax credits (405 ) (1,769 ) (1,824 ) Valuation allowance 14,349 23,645 8,366 Other, net 337 (134 ) 18 Income tax provision $ 1,404 $ 302 $ 871 |
Schedule of Effect of Temporary Differences that Created Deferred Income Taxes | The following table provides the effect of temporary differences that created deferred income taxes as of December 31, 2015 and 2014 . Deferred tax assets and liabilities represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective periods (in thousands): December 31, 2015 2014 Current: Accrued liabilities $ 2,390 $ 4,290 State taxes 1 1 Current deferred tax assets 2,391 4,291 Non-current: Share-based compensation expense 12,823 14,177 Net operating loss carryforwards 66,541 48,594 Tax credits 5,692 5,325 Amortization of tax intangibles 7,639 5,210 Other, net 26 22 Non-current deferred tax assets 92,721 73,328 Total current and non-current deferred tax assets 95,112 77,619 Deferred tax liabilities: Property & equipment (6,122 ) (902 ) Convertible debt costs (1,635 ) (2,146 ) Net deferred tax assets 87,355 74,571 Less: Valuation allowance (85,524 ) (71,935 ) Net deferred tax assets $ 1,831 $ 2,636 |
Schedule of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): December 31, Years Ended 2015 2014 2013 Beginning balance $ 948 $ 880 $ 433 Additions based on tax positions related to the current year 62 169 317 Additions for tax position of prior years — — 130 Reductions for tax positions of prior years (73 ) (101 ) — Ending balance $ 937 $ 948 $ 880 |
Segment and Geographical Info39
Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of Financial Information by Reportable Segment | The following tables provide summary financial information by reportable segment (in thousands): Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 Managed Services Cloud and Business Intelligence Managed Services Cloud and Business Intelligence Managed Services Cloud and Business Intelligence Net Revenue $ 227,645 $ 24,558 $ 240,573 $ 31,607 $ 255,547 $ 16,935 Cost of Revenue 155,898 15,471 170,820 23,189 147,278 15,171 Gross Profit $ 71,747 $ 9,087 $ 69,753 $ 8,418 $ 108,269 $ 1,764 |
Schedule of Net Revenue and Long-Lived Assets by Geographic Region | Net revenue by geographic region, is summarized as follows (in thousands): Year Ended December 31, 2015 2014 2013 Net revenue NALA $ 166,511 $ 176,928 $ 173,188 EMEA 59,708 70,425 73,839 APJ 25,984 24,827 25,455 Total net revenue $ 252,203 $ 272,180 $ 272,482 The majority of the Company’s assets at December 31, 2015 and 2014 were attributable to its U.S. operations. Property and equipment information is based on the physical location of the assets. The following table presents the long-lived assets, consisting of property and equipment, by geographic location (in thousands): December 31, 2015 2014 NALA $ 21,626 $ 21,682 EMEA 732 1,207 APJ 3,545 2,769 Total property and equipment, net $ 25,903 $ 25,658 |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Other Reserve Activities | Restructuring and other reserve activities for the twelve months ended December 31, 2015 and 2014 are summarized as follows (in thousands): Restructuring Other Total Restructuring and other liability at January 1, 2014 $ — $ — $ — Charges to expense and other adjustments 2,054 1,260 3,314 Cash paid (1,690 ) (1,009 ) (2,699 ) Restructuring and other liability at December 31, 2014 364 251 615 Charges to expense and other adjustments 353 3,309 3,662 Cash paid (717 ) (886 ) (1,603 ) Acceleration of stock-based compensation expense in additional paid-in capital — (2,579 ) (2,579 ) Restructuring and other liability at December 31, 2015 $ — $ 95 $ 95 |
Selected Quarterly Financial 41
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Summary of Unaudited Quarterly Consolidated Statement of Operations Data | The following table sets forth data derived from our unaudited quarterly Condensed Consolidated Statement of Operations data for each of the eight quarters ended December 31, 2015 . In management’s opinion, the data has been prepared on the same basis as the audited Consolidated Financial Statements included in this report, and reflects all necessary adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of this data. Three Months Ended Dec. 31, 2015 Sep. 30, 2015 Jun. 30, 2015 Mar. 31, 2015 Dec. 31, 2014 (1) Sep. 30, 2014 (2) Jun. 30, 2014 Mar. 31, 2014 (in thousands, except per share amounts) Net revenue $ 64,960 $ 59,432 $ 61,613 $ 66,197 $ 74,654 $ 64,713 $ 65,997 $ 66,816 Gross profit 24,667 16,864 18,921 20,382 25,976 15,495 17,479 19,221 Loss from operations (3,736 ) (8,187 ) (9,579 ) (8,191 ) (9,829 ) (39,119 ) (18,870 ) (16,031 ) Loss before provision for income taxes (5,954 ) (10,700 ) (12,318 ) (10,036 ) (13,200 ) (41,986 ) (21,066 ) (18,605 ) Net loss $ (5,978 ) $ (10,858 ) $ (13,407 ) $ (10,170 ) $ (13,541 ) $ (41,786 ) $ (21,092 ) $ (18,740 ) Net loss per common share: Basic and diluted $ (0.07 ) $ (0.13 ) $ (0.16 ) $ (0.12 ) $ (0.16 ) $ (0.50 ) $ (0.25 ) $ (0.23 ) (1) During the three months ended December 31, 2014, the Company recorded a goodwill impairment charge of $1.7 million and an intangible asset impairment charge of $2.5 million . (2) During the three months ended September 30, 2014, the Company recorded a goodwill impairment charge of $21.0 million . |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)customerSegment | Dec. 31, 2014USD ($)customer | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Equity investment in a private company | $ 4,500,000 | ||||
Percent of outstanding equity, less than | 5.00% | ||||
Reduction to the cost basis of equity investment | $ 0 | ||||
Goodwill | $ 6,334,000 | $ 6,334,000 | $ 6,334,000 | $ 6,334,000 | 6,334,000 |
Impairment of intangibles | 2,500,000 | 0 | 2,457,000 | ||
Unamortized deferred debt issuance cost | 32,000,000 | 23,900,000 | 32,000,000 | 23,900,000 | |
Amortization of deferred debt issuance cost | 8,000,000 | 7,500,000 | 2,800,000 | ||
Estimated future amortization of deferred debt issuance costs expense, in 2016 | 8,700,000 | 8,700,000 | |||
Estimated future amortization of deferred debt issuance costs expense, in 2017 | 9,400,000 | 9,400,000 | |||
Estimated future amortization of deferred debt issuance costs expense, in 2018 | 5,800,000 | 5,800,000 | |||
Advertising expense | 100,000 | 100,000 | 100,000 | ||
Managed Services | |||||
Property, Plant and Equipment [Line Items] | |||||
Goodwill | 6,334,000 | 6,334,000 | 6,334,000 | 6,334,000 | 6,334,000 |
Cloud and Business Intelligence | |||||
Property, Plant and Equipment [Line Items] | |||||
Goodwill | $ 0 | 0 | 0 | 0 | $ 0 |
Impairment of intangibles | $ 0 | 2,500,000 | |||
Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Subscription revenue period of recognition | 1 year | ||||
Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Subscription revenue period of recognition | 3 years | ||||
Office Furniture and Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, estimated useful lives | 7 years | ||||
Computer Hardware | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, estimated useful lives | 2 years | ||||
Computer Hardware | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, estimated useful lives | 3 years | ||||
Software Costs [Member] | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, estimated useful lives | 3 years | ||||
Software Costs [Member] | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, estimated useful lives | 7 years | ||||
Software and Software Development Costs [Member] | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, estimated useful lives | 2 years | ||||
Software and Software Development Costs [Member] | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, estimated useful lives | 5 years | ||||
Leasehold Improvements | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, estimated useful lives | 3 years | ||||
Leasehold Improvements | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, estimated useful lives | 15 years | ||||
Other (Expense) Income, Net | |||||
Property, Plant and Equipment [Line Items] | |||||
Foreign currency transaction losses | $ (900,000) | $ 800,000 | $ 1,000,000 | ||
Accounts Receivable | Customer Concentration Risk | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of customers | customer | 2 | 1 | |||
Concentration risk | 12.00% | ||||
Customer 1 | Accounts Receivable | Customer Concentration Risk | |||||
Property, Plant and Equipment [Line Items] | |||||
Concentration risk | 13.00% | ||||
Customer 2 | Accounts Receivable | Customer Concentration Risk | |||||
Property, Plant and Equipment [Line Items] | |||||
Concentration risk | 12.00% |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Schedule of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance, beginning of period | $ 37 | $ 128 | $ 253 |
Charged to expense | 137 | 37 | 123 |
Recoveries | (37) | (128) | (248) |
Balance, end of period | $ 137 | $ 37 | $ 128 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Summary of Asset Retirement Obligation Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligations Beginning Balance | $ 1,073 | $ 778 |
Additions | 267 | |
Revisions in estimated cash flows | (229) | |
Accretion expense | 46 | 28 |
Asset retirement obligations as of Ending Balance | $ 890 | $ 1,073 |
Net Income (Loss) Per Common 45
Net Income (Loss) Per Common Share - Schedule of Basic and Diluted Net Income (Loss) per Share Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic net loss per common share | |||||||||||
Net loss | $ (5,978) | $ (10,858) | $ (13,407) | $ (10,170) | $ (13,541) | $ (41,786) | $ (21,092) | $ (18,740) | $ (40,413) | $ (95,159) | $ (22,852) |
Weighted-average common shares outstanding (in shares) | 85,417 | 82,872 | 78,408 | ||||||||
Basic net loss per share (in dollars per share) | $ (0.47) | $ (1.15) | $ (0.29) | ||||||||
Diluted net loss per common share | |||||||||||
Net loss used to determine diluted earnings per common shares | $ (5,978) | $ (10,858) | $ (13,407) | $ (10,170) | $ (13,541) | $ (41,786) | $ (21,092) | $ (18,740) | $ (40,413) | $ (95,159) | $ (22,852) |
Weighted-average common shares outstanding (in shares) | 85,417 | 82,872 | 78,408 | ||||||||
Adjustment for dilutive potential shares (in shares) | 0 | 0 | 0 | ||||||||
Weighted-average common shares for diluted net loss per share (in shares) | 85,417 | 82,872 | 78,408 | ||||||||
Diluted net loss per share (in dollars per share) | $ (0.47) | $ (1.15) | $ (0.29) |
Net Income (Loss) Per Common 46
Net Income (Loss) Per Common Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Potential shares of common stock, with anti-dilutive effect (in shares) | 9.5 | 6.4 | 2 |
Goodwill and Other Intangible47
Goodwill and Other Intangibles Impairment - Narrative (Details) - USD ($) | Jan. 22, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 6,334,000 | $ 6,334,000 | $ 6,334,000 | $ 6,334,000 | ||
Other intangible assets | 6,050,000 | 6,050,000 | 6,050,000 | 0 | ||
Goodwill impairment charge | 1,700,000 | $ 21,000,000 | 0 | 22,653,000 | ||
Impairment of intangibles | 2,500,000 | 0 | 2,457,000 | |||
Amortization expense for intangible assets | 1,513,000 | 1,940,000 | 0 | |||
Finite-lived intangible assets | 3,110,000 | |||||
Cloud and Business Intelligence | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | 0 | 0 | $ 0 | 0 | ||
Assumed forecasted cash flow period | 9 years | |||||
Long-term annual growth rate | 4.00% | |||||
Discount rate | 16.00% | |||||
Goodwill impairment charge | 1,700,000 | $ 21,000,000 | 0 | $ 22,653,000 | ||
Impairment of intangibles | 0 | 2,500,000 | ||||
Managed Services | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 6,334,000 | 6,334,000 | 6,334,000 | $ 6,334,000 | ||
Goodwill impairment charge | 0 | $ 0 | ||||
Developed technology | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets | 1,500,000 | |||||
Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets | 1,100,000 | |||||
Trade name | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets | $ 500,000 | |||||
Scout | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Purchase consideration, net of cash acquired | $ 32,500,000 | |||||
Goodwill | 22,700,000 | |||||
Other intangible assets | $ 9,000,000 |
Goodwill and Other Intangible48
Goodwill and Other Intangibles Impairment - Schedule of Changes in Carrying Amount of Goodwill by Reporting Units (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||||
Beginning Balance | $ 6,334 | $ 6,334 | ||
Addition due to acquisition | 0 | 22,653 | ||
Impairment | $ (1,700) | $ (21,000) | 0 | (22,653) |
Ending Balance | 6,334 | 6,334 | 6,334 | |
Managed Services | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 6,334 | 6,334 | ||
Addition due to acquisition | 0 | 0 | ||
Impairment | 0 | 0 | ||
Ending Balance | 6,334 | 6,334 | 6,334 | |
Cloud and Business Intelligence | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 0 | 0 | ||
Addition due to acquisition | 0 | 22,653 | ||
Impairment | (1,700) | $ (21,000) | 0 | (22,653) |
Ending Balance | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible49
Goodwill and Other Intangibles Impairment - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets [Roll Forward] | ||||
Gross Carrying Amount, Beginning balance | $ 6,050 | $ 0 | ||
Gross Carrying Amount, Addition | 0 | 9,020 | ||
Gross Carrying Amount, Impairment | 0 | (2,970) | ||
Gross Carrying Amount, Ending balance | $ 6,050 | 6,050 | 6,050 | $ 0 |
Accumulated Amortization, Beginning balance | (1,427) | 0 | ||
Amortization expense for intangible assets | (1,513) | (1,940) | 0 | |
Accumulated Amortization, Impairment | 0 | 513 | ||
Accumulated Amortization, Ending balance | (1,427) | (2,940) | (1,427) | 0 |
Net, beginning balance | 4,623 | 0 | ||
Net, Addition | 0 | 9,020 | ||
Net, Impairment | (2,500) | 0 | (2,457) | |
Net, ending balance | $ 4,623 | $ 3,110 | $ 4,623 | $ 0 |
Goodwill and Other Intangible50
Goodwill and Other Intangibles Impairment - Summary of Estimated Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 1,513 |
2,017 | 1,513 |
2,018 | 84 |
Total | $ 3,110 |
Cash, Cash Equivalents and Sh51
Cash, Cash Equivalents and Short-term Investments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents held by third party | $ 0.8 | $ 0.9 |
Cash, Cash Equivalents and Sh52
Cash, Cash Equivalents and Short-term Investments - Summary of Cash and Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash and cash equivalents, Amortized Cost | $ 72,334 | $ 90,382 | $ 170,132 | $ 76,568 |
Short-term investments, Amortized Cost | 137,133 | 125,056 | ||
Short-term investments, Unrealized Gains | 0 | 120 | ||
Short-term investments, Unrealized Losses | (755) | (176) | ||
Total short-term investments, Estimated Fair Value | 136,378 | 125,000 | ||
Cash, cash equivalents and short-term investments, Amortized Cost | 209,467 | 215,438 | ||
Cash, cash equivalents and short-term investments, Unrealized Gains | 0 | 120 | ||
Cash, cash equivalents and short-term investments, Unrealized Losses | (755) | (176) | ||
Cash, cash equivalents and short-term investments, Estimated Fair Value | 208,712 | 215,382 | ||
Corporate bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments, Amortized Cost | 54,434 | 49,110 | ||
Short-term investments, Unrealized Gains | 0 | 29 | ||
Short-term investments, Unrealized Losses | (389) | (120) | ||
Total short-term investments, Estimated Fair Value | 54,045 | 49,019 | ||
U.S. agency securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments, Amortized Cost | 36,010 | 42,004 | ||
Short-term investments, Unrealized Gains | 0 | 56 | ||
Short-term investments, Unrealized Losses | (187) | (17) | ||
Total short-term investments, Estimated Fair Value | 35,823 | 42,043 | ||
Asset-backed securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments, Amortized Cost | 30,665 | 21,083 | ||
Short-term investments, Unrealized Gains | 0 | 8 | ||
Short-term investments, Unrealized Losses | (132) | (34) | ||
Total short-term investments, Estimated Fair Value | 30,533 | 21,057 | ||
U.S. Treasury securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Short-term investments, Amortized Cost | 16,024 | 12,859 | ||
Short-term investments, Unrealized Gains | 0 | 27 | ||
Short-term investments, Unrealized Losses | (47) | (5) | ||
Total short-term investments, Estimated Fair Value | 15,977 | 12,881 | ||
Cash | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash and cash equivalents, Amortized Cost | 72,105 | 89,589 | ||
Total cash and cash equivalents, Unrealized Gains | 0 | 0 | ||
Total cash and cash equivalents, Unrealized Losses | 0 | 0 | ||
Total cash and cash equivalents, Estimated Fair Value | 72,105 | 89,589 | ||
Money market mutual funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash and cash equivalents, Amortized Cost | 229 | 793 | ||
Total cash and cash equivalents, Unrealized Gains | 0 | 0 | ||
Total cash and cash equivalents, Unrealized Losses | 0 | 0 | ||
Total cash and cash equivalents, Estimated Fair Value | 229 | 793 | ||
Total cash and cash equivalents | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash and cash equivalents, Amortized Cost | 72,334 | 90,382 | ||
Total cash and cash equivalents, Unrealized Gains | 0 | 0 | ||
Total cash and cash equivalents, Unrealized Losses | 0 | 0 | ||
Total cash and cash equivalents, Estimated Fair Value | $ 72,334 | $ 90,382 |
Cash, Cash Equivalents and Sh53
Cash, Cash Equivalents and Short-term Investments - Summary of Cost and Estimated Fair Values of Short Term Fixed Income Securities (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Amortized Cost | |
Less than 1 year | $ 12,527 |
Due in 1 to 5 years | 124,835 |
Short-term investments, Amortized Cost | 137,362 |
Estimated Fair Value | |
Less than 1 year | 12,498 |
Due in 1 to 5 years | 124,109 |
Short-term investments, Estimated Fair Value | $ 136,607 |
Fair Value of Financial Instr54
Fair Value of Financial Instruments - Summary of Fair Value Measurement of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term investments: | ||
Total short-term investments | $ 136,378 | $ 125,000 |
Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Total cash equivalents | 229 | 793 |
Short-term investments: | ||
Total short-term investments | 136,378 | 125,000 |
Cash equivalents and short-term investments | 136,607 | 125,793 |
Fair Value, Measurements, Recurring | Money market mutual funds | ||
Cash equivalents: | ||
Total cash equivalents | 229 | 793 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Short-term investments: | ||
Total short-term investments | 54,045 | 49,019 |
Fair Value, Measurements, Recurring | U.S. agency securities | ||
Short-term investments: | ||
Total short-term investments | 35,823 | 42,043 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Short-term investments: | ||
Total short-term investments | 30,533 | 21,057 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Short-term investments: | ||
Total short-term investments | 15,977 | 12,881 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Total cash equivalents | 229 | 793 |
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Cash equivalents and short-term investments | 229 | 793 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Money market mutual funds | ||
Cash equivalents: | ||
Total cash equivalents | 229 | 793 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Corporate bonds | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | U.S. agency securities | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Asset-backed securities | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Total cash equivalents | 0 | 0 |
Short-term investments: | ||
Total short-term investments | 136,378 | 125,000 |
Cash equivalents and short-term investments | 136,378 | 125,000 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Money market mutual funds | ||
Cash equivalents: | ||
Total cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate bonds | ||
Short-term investments: | ||
Total short-term investments | 54,045 | 49,019 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | U.S. agency securities | ||
Short-term investments: | ||
Total short-term investments | 35,823 | 42,043 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Asset-backed securities | ||
Short-term investments: | ||
Total short-term investments | 30,533 | 21,057 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Short-term investments: | ||
Total short-term investments | $ 15,977 | $ 12,881 |
Fair Value of Financial Instr55
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Convertible notes | Significant Other Observable Inputs (Level 2) | ||
Debt Instrument [Line Items] | ||
Convertible notes approximate fair value | $ 126 | $ 111.2 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 85,804 | $ 76,835 |
Less: accumulated depreciation and amortization | (59,901) | (51,177) |
Property and equipment, net | 25,903 | 25,658 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,471 | 16,335 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 46,142 | 38,273 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 12,338 | 12,643 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 8,853 | $ 9,584 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense related to property and equipment | $ 13.7 | $ 13.2 | $ 11.7 |
Property and equipment under capital lease | 3.3 | 3.3 | |
Accumulated depreciation related to assets under capital lease | 3.2 | 3.1 | |
Internal-use software development costs capitalized | 7.2 | 3 | 0 |
Carrying value of internal-use software, net of accumulated amortization | 11.7 | 8.5 | |
Amortization of capitalized costs related to internal-use software | $ 5 | $ 2.9 | $ 4.4 |
Other Accrued Liabilities - Sch
Other Accrued Liabilities - Schedule of Other Current Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued Interest - Convertible Notes | $ 948 | $ 938 |
Deferred rent | 738 | 855 |
ESPP Withholding | 641 | 776 |
Total | $ 2,327 | $ 2,569 |
Credit Facility and Capital L59
Credit Facility and Capital Leases - Narrative (Details) - USD ($) | Jul. 05, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 03, 2015 | May. 05, 2014 |
Line of Credit Facility [Line Items] | ||||||
Underlying property and equipment expiration period | September 2,019 | |||||
Weighted-average imputed interest rates for the capital lease agreements | 4.40% | 5.80% | 2.60% | |||
Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit agreement period | 3 years | |||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility maximum borrowing capacity | $ 30,000,000 | $ 10,000,000 | ||||
Letter of Credit Sublimit | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility maximum borrowing capacity | $ 2,000,000 | |||||
Letter of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Letter of credit | $ 1,200,000 | |||||
Letter of Credit | Money Market Account | ||||||
Line of Credit Facility [Line Items] | ||||||
Collateral on letter of credit | $ 1,200,000 |
Credit Facility and Capital L60
Credit Facility and Capital Leases - Summary of Future Contractual Maturities of Capital Lease Obligations (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 119 |
2,017 | 80 |
2,018 | 67 |
2,019 | 51 |
2,020 | 0 |
Total | $ 317 |
Convertible Notes - Narrative (
Convertible Notes - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2013USD ($)d$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Debt Instrument [Line Items] | ||||
Net carrying amount | $ 317 | |||
Payments of convertible note hedges | $ 31,400 | 0 | $ 0 | $ 31,408 |
Proceeds from the issuance of warrants | $ 0 | $ 0 | $ 21,763 | |
Shares covered under note hedges | shares | 9,250 | |||
Common stock strike price | $ / shares | $ 16.21 | |||
Warrant | ||||
Debt Instrument [Line Items] | ||||
Proceeds from the issuance of warrants | $ 21,800 | |||
Warrants sold to acquire shares | shares | 9,250 | |||
Exercise price of warrant | $ / shares | $ 21.02 | |||
Senior Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Proceeds from issuance of debt | $ 150,000 | |||
Interest rate | 1.50% | 1.50% | 1.50% | |
Conversion ratio | 0.061677 | |||
Conversion price | $ / shares | $ 16.21 | |||
Threshold consecutive trading days | 5 days | |||
Threshold percentage of stock price trigger | 98.00% | |||
Threshold business days | 5 days | |||
Cash repurchase price, percent | 100.00% | |||
Minimum percent held in principal amount of outstanding notes to declare all notes to be due and payable | 25.00% | |||
Net carrying amount | $ 111,500 | $ 128,092 | $ 120,730 | |
Additional paid in capital | 38,500 | |||
Transaction costs | 4,900 | |||
Debt component of transaction costs, gross | 3,600 | |||
Transaction costs, additional paid in capital | 1,300 | |||
Net proceeds from the Notes | 145,100 | |||
Senior Convertible Notes | Note Hedges | ||||
Debt Instrument [Line Items] | ||||
Payments of convertible note hedges | 31,400 | |||
Senior Convertible Notes | Warrant | ||||
Debt Instrument [Line Items] | ||||
Proceeds from the issuance of warrants | $ 21,800 | |||
Senior Convertible Notes | After December 31, 2013 | ||||
Debt Instrument [Line Items] | ||||
Threshold trading days | d | 20 | |||
Threshold consecutive trading days | 30 days | |||
Threshold percentage of stock price trigger | 130.00% |
Convertible Notes - Schedule of
Convertible Notes - Schedule of Net Carrying Amount of Liability Component of Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2013 |
Liability Component | |||
Total | $ 317 | ||
Senior Convertible Notes | |||
Liability Component | |||
Principal amount | 150,000 | $ 150,000 | |
Unamortized debt discount | (21,908) | (29,270) | |
Total | $ 128,092 | $ 120,730 | $ 111,500 |
Convertible Notes - Schedule 63
Convertible Notes - Schedule of Interest Expense Recognized on Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Expense | |||
Amortization of debt issuance costs | $ 8,000 | $ 7,500 | $ 2,800 |
Senior Convertible Notes | |||
Interest Expense | |||
Contractual interest expense at 1.5% per annum | 2,250 | 2,250 | |
Amortization of debt issuance costs | 686 | 635 | |
Accretion of debt discount | 7,362 | 6,815 | |
Total | $ 10,298 | $ 9,700 |
Convertible Notes - Schedule 64
Convertible Notes - Schedule of Interest Expense Recognized on Notes (Parenthetical) (Details) | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2013 |
Senior Convertible Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.50% | 1.50% | 1.50% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015USD ($)ft² | Oct. 31, 2015USD ($)ft² | May. 31, 2015USD ($)ft² | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Operating Leased Assets [Line Items] | ||||||
Operating lease payment of non-cancelable agreement expiration period | through November 2022 | |||||
Rent expenses | $ 9,400 | $ 9,200 | $ 8,600 | |||
Total future annual minimum lease payment | $ 49,119 | 49,119 | ||||
Non-cancelable purchase commitments | $ 11,100 | 11,100 | ||||
California | ||||||
Operating Leased Assets [Line Items] | ||||||
Lease term | 7 years | |||||
Area of space (in square feet) | ft² | 24,394 | |||||
Total future annual minimum lease payment | $ 13,300 | |||||
Philippines | ||||||
Operating Leased Assets [Line Items] | ||||||
Lease term | 6 years | |||||
Area of space (in square feet) | ft² | 46,134 | |||||
Total future annual minimum lease payment | $ 7,000 | |||||
Bulgaria | ||||||
Operating Leased Assets [Line Items] | ||||||
Lease term | 5 years | |||||
Area of space (in square feet) | ft² | 22,104 | |||||
Total future annual minimum lease payment | $ 1,800 | $ 1,800 |
Commitments and Contingencies66
Commitments and Contingencies - Summary of Future Annual Minimum Lease Payments Under All Noncancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 9,375 |
2,017 | 9,167 |
2,018 | 8,556 |
2,019 | 7,209 |
2,020 | 6,034 |
Thereafter | 8,778 |
Total | $ 49,119 |
Share Repurchase Program and 67
Share Repurchase Program and Stock-Based Compensation - Narrative (Details) - USD ($) | Jan. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2015 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock repurchase program, maximum repurchase authorization | $ 30,000,000 | |||||
Stock repurchase program, aggregate amount available | $ 28,800,000 | |||||
Common stock reserved but unissued (in shares) | 3,364,000 | 3,279,000 | 3,025,000 | |||
Value of stock options and awards granted | $ 18,600,000 | $ 19,400,000 | $ 29,300,000 | |||
Percentage of payroll deductions | 10.00% | |||||
Percentage of purchase price of the shares on each purchase date is equal to the fair market value | 85.00% | |||||
Common stock on the first and last trading days on offering period | 6 months | |||||
Share issued under employee stock purchase plan (in shares) | 1,483,429 | |||||
Shares available for future issuance (in shares) | 7,055,000 | 5,982,000 | 5,755,000 | 4,024,000 | ||
Aggregate intrinsic value of options exercised | $ 1,300,000 | $ 1,700,000 | $ 23,900,000 | |||
Estimated fair value of share options vested | 11,000,000 | 4,800,000 | 15,900,000 | |||
Stock-based compensation capitalization costs | $ 400,000 | $ 0 | $ 0 | |||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock conversion ratio | 1 | |||||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved but unissued (in shares) | 0 | 0 | 0 | |||
Weighted-average grant date fair value of options granted | $ 1.45 | $ 1.56 | $ 3.18 | |||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Common stock reserved but unissued (in shares) | 0 | 0 | 0 | |||
Common stock, par value (in dollars per share) | $ 0.0001 | |||||
Weighted average grant date fair values of restricted stock units granted | $ 5.03 | $ 4.62 | $ 8.26 | |||
2011 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of common stock outstanding | 4.00% | |||||
Common stock reserved but unissued (in shares) | 3,840,000 | |||||
Unrecognized compensation expense | $ 20,300,000 | |||||
Unrecognized compensation expense, weighted-average period recognized | 3 years 26 days | |||||
2011 Plan | Subsequent Event | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved but unissued (in shares) | 3,500,000 | |||||
2011 Plan | Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Vested option expiring period | 10 years | |||||
Vested but unexercised option expiring period | 90 days | |||||
2011 Plan | Employee Stock Option | Tranche 1 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Vesting percent | 25.00% | |||||
2011 Plan | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Vesting percent | 25.00% | |||||
ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share issued under employee stock purchase plan (in shares) | 1,500,000 | |||||
Percentage of outstanding common stock shares | 1.00% | |||||
Shares available for future issuance (in shares) | 2,559,144 | |||||
ESPP | Subsequent Event | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future issuance (in shares) | 900,000 |
Share Repurchase Program and 68
Share Repurchase Program and Stock-Based Compensation - Schedule of Shares of Common Stock Repurchased (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Shares (in thousands) (in shares) | 136 | 159 | 295 |
Weighted-average price per share (in dollars per share) | $ 4.09 | $ 4.12 | |
Amount (includes commissions) (in thousands) | $ 557 | $ 655 | $ 1,212 |
Share Repurchase Program and 69
Share Repurchase Program and Stock-Based Compensation - Summary of Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years | 5 years | 5 years |
Expected volatility | 34.00% | 37.00% | 43.00% |
Risk-free interest rate | 1.64% | 1.57% | 1.19% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 35.00% | 32.00% | 27.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
ESPP | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Risk-free interest rate | 0.24% | 0.05% | 0.13% |
ESPP | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 1 year | 1 year | 1 year |
Risk-free interest rate | 0.37% | 0.09% | 0.17% |
Share Repurchase Program and 70
Share Repurchase Program and Stock-Based Compensation - Summary of Option and RSU Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares Available for Grant [Roll Forward] | |||
Beginning balance | 5,982 | 5,755 | 4,024 |
Additional shares reserved under the 2011 equity incentive plan | 3,364 | 3,279 | 3,025 |
Granted | (6,696) | (8,554) | (6,565) |
Options exercised/ Restricted stock released | 0 | 0 | 0 |
RSU shares withheld for taxes | 212 | ||
Canceled/Forfeited | 4,193 | 5,502 | 5,271 |
Ending balance | 7,055 | 5,982 | 5,755 |
Employee Stock Option | |||
Shares Available for Grant [Roll Forward] | |||
Additional shares reserved under the 2011 equity incentive plan | 0 | 0 | 0 |
Options Outstanding, Number of Shares [Roll Forward] | |||
Beginning balance | 10,070 | 8,908 | 15,189 |
Granted | 4,206 | 4,345 | 3,023 |
Options exercised/ Restricted stock released | (1,126) | (518) | (5,147) |
Canceled/Forfeited | (2,534) | (2,665) | (4,157) |
Ending balance | 10,616 | 10,070 | 8,908 |
Options Outstanding, Weighted-Average Exercise Price [Roll Forward] | |||
Beginning balance (in dollars per share) | $ 5.08 | $ 5.89 | $ 6.98 |
Additional shares reserved under the 2011 equity incentive plan (in dollars per share) | 0 | 0 | 0 |
Granted (in dollars per share) | 4.45 | 4.46 | 7.43 |
Options exercised/ Restricted stock released (in dollars per share) | 4.13 | 5.13 | 4.47 |
Canceled/Forfeited (in dollars per share) | 5.65 | 6.77 | 12.77 |
Ending balance (in dollars per share) | $ 4.79 | $ 5.08 | $ 5.89 |
Restricted Stock Units | |||
Shares Available for Grant [Roll Forward] | |||
Additional shares reserved under the 2011 equity incentive plan | 0 | 0 | 0 |
Restricted Stock Outstanding, Number of Shares [Roll Forward] | |||
Beginning balance | 5,476 | 5,431 | 3,928 |
Granted | 2,490 | 4,209 | 3,542 |
Options exercised/ Restricted stock released | (1,966) | (1,332) | (920) |
RSU shares withheld for taxes | 212 | ||
Canceled/Forfeited | (1,660) | (2,832) | (1,119) |
Ending balance | 4,552 | 5,476 | 5,431 |
Share Repurchase Program and 71
Share Repurchase Program and Stock-Based Compensation - Summary of Aggregate Intrinsic Value of Option Activities (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Class of Stock [Line Items] | |
Options vested and expected to vest, Number of Shares (in shares) | shares | 9,770 |
Options vested and expected to vest, Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 4.82 |
Options vested and expected to vest, Weighted-Average Remaining Contractual Life (Years) | 6 years 6 months 15 days |
Options vested and expected to vest, Aggregate Intrinsic Value | $ | $ 2,868 |
Options exercisable, Number of Shares (in shares) | shares | 4,520 |
Options exercisable, Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 5.18 |
Options exercisable, Weighted-Average Remaining Contractual Life (Years) | 3 years 6 months 26 days |
Options exercisable, Aggregate Intrinsic Value | $ | $ 775 |
Restricted Stock | |
Class of Stock [Line Items] | |
Restricted stock expected to vest, Number of Shares (in shares) | shares | 3,514 |
Restricted stock expected to vest, Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 0 |
Restricted stock expected to vest, Weighted-Average Remaining Contractual Life (Years) | 1 year 4 months 10 days |
Restricted stock expected to vest, Aggregate Intrinsic Value | $ | $ 16,201 |
Share Repurchase Program and 72
Share Repurchase Program and Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 15,966 | $ 20,899 | $ 23,620 |
Cost of Revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 2,666 | 3,995 | 3,303 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 3,393 | 6,193 | 9,831 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 1,299 | 2,800 | 2,414 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 6,029 | 7,911 | 8,072 |
Restructuring and other | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 2,579 | $ 0 | $ 0 |
Employee Benefit Plan - Narrati
Employee Benefit Plan - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum percentage of employee contributions matched up by the company | 50.00% | 50.00% | 50.00% |
Defined benefit plan, annual limit company's matching contribution, amount | $ 2,000 | $ 2,000 | $ 2,000 |
Defined benefit plan, employers' discretionary contribution, amount | $ 2,100,000 | $ 1,900,000 | $ 1,300,000 |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, eligible domestic employees attainable age | 21 years | ||
Defined benefit plan, hours of services per week eligible for contribution | 20 hours | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, employee contribution of pre-tax salary percentage | 90.00% |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss from Continuing Operations Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ (40,720) | $ (88,616) | $ (20,124) | ||||||||
International | 1,711 | (6,241) | (1,857) | ||||||||
Loss before income taxes | $ (5,954) | $ (10,700) | $ (12,318) | $ (10,036) | $ (13,200) | $ (41,986) | $ (21,066) | $ (18,605) | $ (39,009) | $ (94,857) | $ (21,981) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 0 | $ (16) | $ 0 |
Foreign | 632 | 517 | 501 |
State and local | (32) | 424 | 153 |
Total current income tax provision | 600 | 925 | 654 |
Deferred: | |||
Foreign | 52 | (97) | (90) |
State and local | 752 | (526) | 307 |
Total deferred income tax provision (benefit) | 804 | (623) | 217 |
Income tax provision | $ 1,404 | $ 302 | $ 871 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2015 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 | Dec. 31, 2012 | |
Operating Loss Carryforwards [Line Items] | |||||||
Federal statutory rate | 34.00% | ||||||
Tax provision (benefit) | $ 1,404 | $ 302 | $ 871 | ||||
Valuation allowance reflecting only the portion of state deferred tax asset | 85,524 | 71,935 | |||||
Change in the valuation allowance | $ 13,600 | 29,800 | |||||
Net operating loss carryforwards, expiration year | 2,017 | ||||||
Excess tax benefits from exercise of stock options | $ 100 | 100 | |||||
Unrecognized tax benefits | $ 880 | 937 | $ 948 | 880 | $ 433 | ||
Unremitted earning of foreign subsidiaries considered as permanently reinvested in foreign operations | 6,900 | ||||||
Net Addition Charged to Expense [Member] | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Change in the valuation allowance | (16,100) | ||||||
Stock-Based Compensation Shortfall [Member] | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Change in the valuation allowance | 2,500 | ||||||
Domestic Tax Authority | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Valuation allowance reflecting only the portion of state deferred tax asset | 500 | ||||||
Net operating loss carryforwards | 225,200 | ||||||
Net operating loss carryforward related to excess tax benefits from stock based compensation | 50,200 | ||||||
Domestic Tax Authority | Scout | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Net operating loss carryforwards | $ 30,200 | ||||||
Domestic Tax Authority | Research And Development Tax Credit Carryforward | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Tax credits carryforward | $ 2,500 | ||||||
Tax credits carryforward, expiration Year | 2,031 | ||||||
State and Local Jurisdiction | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Tax provision (benefit) | $ 300 | ||||||
Net operating loss carryforwards | 120,900 | ||||||
Net operating loss carryforward related to excess tax benefits from stock based compensation | 35,200 | ||||||
State and Local Jurisdiction | California Enterprise Zone Credits Expiring 2024 | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Tax credits carryforward | 400 | ||||||
State and Local Jurisdiction | Research And Development Tax Credit Carryforward | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Tax credits carryforward | 3,500 | ||||||
State and Local Jurisdiction | Other Tax Credit Carryforward | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Tax credits carryforward | $ 2,200 | ||||||
Malaysia | Foreign Tax Authority | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Income tax holiday period | 10 years | ||||||
Tax provision (benefit) | $ (200) | ||||||
Philippine Economic Zone Authority [Member] | Foreign Tax Authority | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Income tax holiday period | 4 years |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes Provided at Federal Statutory Rate to Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. income tax at federal statutory rate | $ (13,388) | $ (32,246) | $ (7,464) |
State income taxes, net of federal benefit | 342 | 758 | 544 |
Foreign tax rate differential | (85) | 1,882 | 1,000 |
Permanent differences | 254 | 464 | 231 |
Non-deductible impairment charges | 0 | 7,702 | 0 |
Tax credits | (405) | (1,769) | (1,824) |
Valuation allowance | 14,349 | 23,645 | 8,366 |
Other, net | 337 | (134) | 18 |
Income tax provision | $ 1,404 | $ 302 | $ 871 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effect of Temporary Differences that Created Deferred Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current: | ||
Accrued liabilities | $ 2,390 | $ 4,290 |
State taxes | 1 | 1 |
Current deferred tax assets | 2,391 | 4,291 |
Non-current: | ||
Share-based compensation expense | 12,823 | 14,177 |
Net operating loss carryforwards | 66,541 | 48,594 |
Tax credits | 5,692 | 5,325 |
Amortization of tax intangibles | 7,639 | 5,210 |
Other, net | 26 | 22 |
Non-current deferred tax assets | 92,721 | 73,328 |
Total current and non-current deferred tax assets | 95,112 | 77,619 |
Deferred tax liabilities: | ||
Property & equipment | (6,122) | (902) |
Convertible debt costs | (1,635) | (2,146) |
Net deferred tax assets | 87,355 | 74,571 |
Less: Valuation allowance | (85,524) | (71,935) |
Net deferred tax assets | $ 1,831 | $ 2,636 |
Income Taxes - Schedule of Re79
Income Taxes - Schedule of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 948 | $ 880 | $ 433 |
Additions based on tax positions related to the current year | 62 | 169 | 317 |
Additions for tax position of prior years | 0 | 0 | 130 |
Reductions for tax positions of prior years | (73) | (101) | 0 |
Ending balance | $ 937 | $ 948 | $ 880 |
Segment and Geographical Info80
Segment and Geographical Information - Narrative (Details) - Sales Revenue, Net - customer | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Number of customers | 0 | 1 | 1 |
Concentration risk | 12.00% | 14.00% | |
Geographic Concentration Risk | NALA | |||
Segment Reporting Information [Line Items] | |||
Concentration risk | 66.00% | ||
Geographic Concentration Risk | EMEA | |||
Segment Reporting Information [Line Items] | |||
Concentration risk | 24.00% | ||
Geographic Concentration Risk | APJ | |||
Segment Reporting Information [Line Items] | |||
Concentration risk | 10.00% |
Segment and Geographical Info81
Segment and Geographical Information - Summary of Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $ 64,960 | $ 59,432 | $ 61,613 | $ 66,197 | $ 74,654 | $ 64,713 | $ 65,997 | $ 66,816 | $ 252,203 | $ 272,180 | $ 272,482 |
Cost of revenue | 171,369 | 194,009 | 162,449 | ||||||||
Gross profit | $ 24,667 | $ 16,864 | $ 18,921 | $ 20,382 | $ 25,976 | $ 15,495 | $ 17,479 | $ 19,221 | 80,834 | 78,171 | 110,033 |
Operating Segments | Managed Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 227,645 | 240,573 | 255,547 | ||||||||
Cost of revenue | 155,898 | 170,820 | 147,278 | ||||||||
Gross profit | 71,747 | 69,753 | 108,269 | ||||||||
Operating Segments | Cloud and Business Intelligence | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 24,558 | 31,607 | 16,935 | ||||||||
Cost of revenue | 15,471 | 23,189 | 15,171 | ||||||||
Gross profit | $ 9,087 | $ 8,418 | $ 1,764 |
Segment and Geographical Info82
Segment and Geographical Information - Schedule of Net Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | $ 64,960 | $ 59,432 | $ 61,613 | $ 66,197 | $ 74,654 | $ 64,713 | $ 65,997 | $ 66,816 | $ 252,203 | $ 272,180 | $ 272,482 |
Reportable Geographical Components | NALA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 166,511 | 176,928 | 173,188 | ||||||||
Reportable Geographical Components | EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 59,708 | 70,425 | 73,839 | ||||||||
Reportable Geographical Components | APJ | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | $ 25,984 | $ 24,827 | $ 25,455 |
Segment and Geographical Info83
Segment and Geographical Information - Schedule of Long-Lived Assets by Geographic Location (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 25,903 | $ 25,658 |
Reportable Geographical Components | NALA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 21,626 | 21,682 |
Reportable Geographical Components | EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 732 | 1,207 |
Reportable Geographical Components | APJ | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 3,545 | $ 2,769 |
Restructuring and Other - Narra
Restructuring and Other - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Charges to expense and other adjustments | $ 3,662 | $ 3,314 | $ 0 |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges to expense and other adjustments | 2,800 | ||
Cancellation of Contracts | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges to expense and other adjustments | $ 500 | ||
Former Interim CFO and CEO | Accelerated Stock Based Compensation | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges to expense and other adjustments | 2,600 | ||
Former Interim CFO and CEO | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges to expense and other adjustments | $ 1,100 |
Restructuring and Other - Sched
Restructuring and Other - Schedule of Restructuring and Other Reserve Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $ 615 | $ 0 | |
Charges to expense and other adjustments | 3,662 | 3,314 | $ 0 |
Cash paid | (1,603) | (2,699) | |
Acceleration of stock-based compensation expense in additional paid-in capital | (2,579) | ||
Ending Balance | 95 | 615 | 0 |
Restructuring | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 364 | 0 | |
Charges to expense and other adjustments | 353 | 2,054 | |
Cash paid | (717) | (1,690) | |
Acceleration of stock-based compensation expense in additional paid-in capital | 0 | ||
Ending Balance | 0 | 364 | 0 |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 251 | 0 | |
Charges to expense and other adjustments | 3,309 | 1,260 | |
Cash paid | (886) | (1,009) | |
Acceleration of stock-based compensation expense in additional paid-in capital | (2,579) | ||
Ending Balance | $ 95 | $ 251 | $ 0 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | Nov. 13, 2014director | Nov. 12, 2014director | Apr. 30, 2013USD ($) | Dec. 31, 2015USD ($) |
Altai Capital Management | Registration Rights Agreement | ||||
Related Party Transaction [Line Items] | ||||
Aggregate offering to trigger registration rights (at least) | $ 15,000,000 | |||
Altai Capital Management | ServiceSource | Expanded Board Seats | ||||
Related Party Transaction [Line Items] | ||||
Number of board of directors | director | 9 | 8 | ||
Minimum equity required to obtain seat on board | 10.00% | |||
Director | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction payment for consulting services | $ 300,000 |
Selected Quarterly Financial 87
Selected Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Consolidated Statement of Operations Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Net revenue | $ 64,960 | $ 59,432 | $ 61,613 | $ 66,197 | $ 74,654 | $ 64,713 | $ 65,997 | $ 66,816 | $ 252,203 | $ 272,180 | $ 272,482 |
Gross profit | 24,667 | 16,864 | 18,921 | 20,382 | 25,976 | 15,495 | 17,479 | 19,221 | 80,834 | 78,171 | 110,033 |
Loss from operations | (3,736) | (8,187) | (9,579) | (8,191) | (9,829) | (39,119) | (18,870) | (16,031) | (29,693) | (83,849) | (17,561) |
Loss before provision for income taxes | (5,954) | (10,700) | (12,318) | (10,036) | (13,200) | (41,986) | (21,066) | (18,605) | (39,009) | (94,857) | (21,981) |
Net loss | $ (5,978) | $ (10,858) | $ (13,407) | $ (10,170) | $ (13,541) | $ (41,786) | $ (21,092) | $ (18,740) | $ (40,413) | $ (95,159) | $ (22,852) |
Net loss per common share: | |||||||||||
Basic and diluted (in dollars per share) | $ (0.07) | $ (0.13) | $ (0.16) | $ (0.12) | $ (0.16) | $ (0.50) | $ (0.25) | $ (0.23) |
Selected Quarterly Financial 88
Selected Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Consolidated Statement of Operations Data (Footnote) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Selected Quarterly Financial Information [Abstract] | ||||
Goodwill impairment charge | $ 1,700 | $ 21,000 | $ 0 | $ 22,653 |
Impairment of intangibles | $ 2,500 | $ 0 | $ 2,457 |