Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SREV | |
Entity Registrant Name | SERVICESOURCE INTERNATIONAL, INC. | |
Entity Central Index Key | 1,310,114 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common stock, shares outstanding | 85,376,414 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 61,394 | $ 72,334 |
Short-term investments | 136,917 | 136,378 |
Accounts receivable, net | 55,044 | 56,563 |
Deferred income taxes | 97 | 97 |
Prepaid expenses and other | 7,158 | 8,167 |
Total current assets | 260,610 | 273,539 |
Property and equipment, net | 29,293 | 25,903 |
Deferred income taxes, net of current portion | 662 | 1,759 |
Goodwill and intangibles, net | 9,066 | 9,444 |
Other assets, net | 7,075 | 6,919 |
Total assets | 306,706 | 317,564 |
Current liabilities: | ||
Accounts payable | 2,746 | 1,067 |
Accrued taxes | 692 | 1,112 |
Accrued compensation and benefits | 17,872 | 22,116 |
Deferred revenue | 5,886 | 5,770 |
Accrued expenses | 7,636 | 4,716 |
Other current liabilities | 1,500 | 2,327 |
Total current liabilities | 36,332 | 37,108 |
Obligations under capital leases, net of current portion | 173 | 198 |
Convertible notes, net | 128,155 | 126,051 |
Other long-term liabilities | 4,083 | 4,113 |
Total liabilities | $ 168,743 | $ 167,470 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock; $0.0001 par value; 1,000,000 shares authorized; 85,473 shares issued and 85,352 shares outstanding as of March 31, 2016; 86,893 shares issued and 86,772 shares outstanding as of December 31, 2015 | $ 8 | $ 8 |
Treasury stock | (441) | (441) |
Additional paid-in capital | 328,247 | 331,922 |
Accumulated deficit | (190,961) | (181,822) |
Accumulated other comprehensive income | 1,110 | 427 |
Total stockholders’ equity | 137,963 | 150,094 |
Total liabilities and stockholders’ equity | $ 306,706 | $ 317,564 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 85,473,000 | 86,893,000 |
Common stock, shares outstanding (in shares) | 85,352,000 | 86,772,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Net revenue | $ 59,750 | $ 66,197 |
Cost of revenue | 41,434 | 45,815 |
Gross profit | 18,316 | 20,382 |
Operating expenses: | ||
Sales and marketing | 10,454 | 10,835 |
Research and development | 2,163 | 4,822 |
General and administrative | 12,043 | 12,165 |
Restructuring and other | 0 | 751 |
Total operating expenses | 24,660 | 28,573 |
Loss from operations | (6,344) | (8,191) |
Interest expense and other, net | (1,509) | (1,845) |
Loss before income taxes | (7,853) | (10,036) |
Income tax provision | 1,288 | 134 |
Net loss | $ (9,141) | $ (10,170) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.11) | $ (0.12) |
Weighted average common shares outstanding, basic and diluted (in shares) | 86,081 | 84,252 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (9,141) | $ (10,170) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | 765 | (247) |
Unrealized gain on short-term investments, net of tax | 345 | 375 |
Other comprehensive income (loss), net of tax | 1,110 | 128 |
Total comprehensive loss | $ (8,031) | $ (10,042) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (9,141) | $ (10,170) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 3,737 | 3,500 |
Amortization of Debt Issuance Costs and Discounts | 2,103 | 1,924 |
Accretion of premium on short-term investments and other | 405 | (37) |
Deferred income taxes | 1,097 | 8 |
Stock-based compensation | 2,859 | 4,568 |
Restructuring and other | 0 | (689) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 2,029 | 4,075 |
Deferred revenue | 85 | 463 |
Prepaid expenses and other | 983 | 92 |
Accounts payable | 1,702 | 485 |
Accrued taxes | (434) | (781) |
Accrued compensation and benefits | (4,427) | (1,870) |
Accrued expenses | 1,584 | (3,675) |
Other liabilities | (920) | (359) |
Net cash provided by (used in) operating activities | 1,662 | (2,466) |
Cash flows from investing activities | ||
Acquisition of property and equipment | (5,279) | (2,669) |
Restricted cash | 0 | (1,244) |
Purchases of short-term investments | (30,999) | (17,035) |
Sales of short-term investments | 31,155 | 16,630 |
Net cash used in investing activities | (5,123) | (4,318) |
Cash flows from financing activities | ||
Repayment on capital leases obligations | (66) | (45) |
Repurchase of common stock | (7,260) | 0 |
Proceeds from common stock issuances | 691 | 648 |
Net cash (used in) provided by financing activities | (6,635) | 603 |
Net decrease in cash and cash equivalents | (10,096) | (6,181) |
Effect of exchange rate changes on cash and cash equivalents | (844) | 1,034 |
Cash and cash equivalents at beginning of period | 72,334 | 90,382 |
Cash and cash equivalents at end of period | $ 61,394 | $ 85,235 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation ServiceSource International, Inc. (together with its subsidiaries, 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 provides 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 are 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, the Philippines, Singapore and the United Kingdom. The accompanying unaudited interim condensed consolidated financial statements (“condensed consolidated financial statements”) include the accounts of ServiceSource International, Inc. and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP” or “GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X, without audit. Accordingly, they do not include all of the information required by U.S. GAAP for annual financial statements. The unaudited condensed consolidated balance sheet as of December 31, 2015 has been derived from the Company's audited annual consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission ("SEC") on March 8, 2016. These condensed consolidated financial statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and the notes thereto for the year ended December 31, 2015 , included in our Annual Report on Form 10-K. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments, management considers necessary for a fair statement of the Company's financial position, operating results, and cash flows for the interim periods presented. Preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Also, the results for the interim periods are not necessarily indicative of results for the entire year. The Company’s Chief Executive Officer ("CEO") is its chief operating decision maker. The CEO historically managed the Company as two reportable segments: Managed Services and Cloud and Business Intelligence ("CBI") based on the discrete financial information available for each segment. However, during the second half of 2015, the Company began implementing a series of actions to emphasize a one-company, single go-to-market strategy for its services offering that resulted in the reorganization of its CBI personnel and sales team delivery structure. The objective of these actions was to more closely integrate and support the Managed Services organization with the Company’s cloud technologies and to eliminate new stand-alone CBI cloud offerings. Further, due to this reorganization and shift to a single go-to-market strategy, discrete cost information was no longer separately available for the former CBI segment. Consequently, as of the first quarter of 2016, the CEO manages and allocates resources on a company-wide basis as a single segment that is focused on service offerings which integrate data, processes and cloud technologies. 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. 2015-05, 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 is effective for the Company in fiscal year 2016. 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 has historically accounted for its cloud computing arrangements as a service contract. Consequently, adoption of ASU No. 2015-03 had no impact on the Company's 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 its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting". This standard simplifies and clarifies certain aspects of share-based payment accounting and presentation. The standard is effective for fiscal years and the interim periods within those fiscal years beginning after December 15, 2016 with early adoption permitted. The Company is currently assessing the impact that adoption of ASU 2016-09 will have on its consolidated financial statements. Reclassifications Amounts shown in Other assets, net, caption in the Consolidated Balance Sheet as of December 31, 2015 have been reclassified to Convertible notes, net, to reflect the current period presentation as a result of the adoption of 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. See Note 6 - Debt. |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-term Investments | 3 Months Ended |
Mar. 31, 2016 | |
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, including money market funds. The Company has cash and cash equivalents held on its behalf by a third party of $0.5 million and $0.8 million as of March 31, 2016 and December 31, 2015 , 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 other-than-temporary declines in fair value have 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 three months ended March 31, 2016 and 2015 were insignificant. Cash and cash equivalents and short-term investments consisted of the following as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 60,173 $ — $ — $ 60,173 Cash equivalents: Money market mutual funds 1,221 — — 1,221 Total cash and cash equivalents 61,394 — — 61,394 Short-term investments: Corporate bonds 54,782 134 (92 ) 54,824 U.S. agency securities 36,286 159 — 36,445 Asset-backed securities 28,060 44 (12 ) 28,092 U.S. Treasury securities 17,444 112 — 17,556 Total short-term investments 136,572 449 (104 ) 136,917 Cash, cash equivalents and short-term investments $ 197,966 $ 449 $ (104 ) $ 198,311 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 The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated maturities as of March 31, 2016 (in thousands): Amortized Cost Estimated Fair Value Less than 1 year $ 15,655 $ 15,648 Due in 1 to 3 years 122,138 122,490 Total $ 137,793 $ 138,138 As of March 31, 2016 , 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 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) Cash equivalents: Money market mutual funds $ 1,221 $ 1,221 $ — Total cash equivalents 1,221 1,221 — Short-term investments: Corporate bonds 54,824 — 54,824 U.S. agency securities 36,445 — 36,445 Asset-backed securities 28,092 — 28,092 U.S. Treasury securities 17,556 — 17,556 Total short-term investments 136,917 — 136,917 Cash equivalents and short-term investments $ 138,138 $ 1,221 $ 136,917 The Company has restricted cash of $1.2 million within Other assets as of March 31, 2016 and December 31, 2015 . The restricted cash is classified within Level 1. 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) 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 convertible notes issued by the Company in August 2013 are shown on 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 as of March 31, 2016 and December 31, 2015 was $118.9 million and $126.0 million , 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 March 31, 2016 and December 31, 2015 . |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities balances were comprised of the following (in thousands): March 31, December 31, Accrued Interest - Convertible Notes $ 375 $ 948 Deferred Rent 782 738 ESPP Withholding 343 641 Total $ 1,500 $ 2,327 |
Credit Facility and Capital Lea
Credit Facility and Capital Leases | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facility and Capital Leases | Credit Facility and Capital Leases 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 facility. The letter of credit is secured by $1.2 million of a money market account which is classified as restricted cash on the accompanying condensed consolidated balance sheets. 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 the capital lease agreements were 3.6% and 5.7% at March 31, 2016 and 2015 , respectively. Future minimum annual payments under capital lease obligations as of March 31, 2016 were as follows (in thousands): March 31, Years Ending December 31, 2016 (remaining nine months) $ 72 2017 67 2018 69 2019 54 2020 — Total $ 262 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Convertible Notes In August 2013, the Company issued senior convertible notes (the “Notes”) in exchange for 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, beginning 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 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, or the holders of at least 25% in principal amount of the outstanding Notes may 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. The Notes were not subject to repurchase at March 31, 2016 . 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 were recorded as a deferred asset in other assets, net, 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 net carrying amount of the liability component of the Notes consists of the following (in thousands): March 31, 2016 December 31, 2015 Principal amount $ 150,000 $ 150,000 Unamortized debt discount (19,984 ) (21,908 ) Unamortized debt issuance costs (1,861 ) (2,041 ) Net carrying amount $ 128,155 $ 126,051 The following table presents the interest expense recognized related to the Notes (in thousands): Three Months Ended March 31, 2016 2015 Contractual interest expense at 1.5% per annum $ 563 $ 563 Amortization of debt issuance costs 179 164 Accretion of debt discount 1,924 1,755 Total $ 2,666 $ 2,482 The net proceeds from the Notes were approximately $145.1 million after payment of the initial purchasers' discount and 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 | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company leases its office space and certain equipment under noncancelable operating lease agreements with various expiration dates through November 30, 2022 . Rent expense for the three months ended March 31, 2016 and 2015 was $2.6 million and $2.2 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 April 2016, the Company signed a 6 -year office lease expiring in July 2022, for a new international sales center in Singapore to occupy 17,626 square feet. The total minimum lease payments are estimated to be approximately $4.8 million over the lease term. Future annual minimum lease payments under all noncancelable operating leases as of March 31, 2016 were as follows (in thousands): March 31, 2016 Years Ending December 31, 2016 (remaining nine months) $ 7,632 2017 10,037 2018 9,420 2019 8,065 2020 6,888 Thereafter 10,162 Total $ 52,204 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 a 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 it's 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, Stock
Share Repurchase Program, Stock-Based Compensation and ESPP | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Repurchase Program, Stock-Based Compensation and ESPP | Share Repurchase Program, Stock-Based Compensation and ESPP In August 2015, the Board authorized a stock repurchase program ("the program") with a maximum authorization 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 $21.5 million as of March 31, 2016. 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: Number of Shares (in thousands) Weighted Average Repurchase Price Per Share Amount (includes commissions) (in thousands) 2016: First quarter 1,835 $ 3.96 $ 7,260 2015: Fourth quarter 136 $ 4.09 $ 557 Third Quarter 159 $ 4.12 655 Total common stock repurchases 2,130 $ 8,472 The following table summarizes the consolidated stock-based compensation expense included in the condensed consolidated statements of operations (in thousands): Three Months Ended 2016 2015 Cost of revenue $ 468 $ 836 Sales and marketing 862 931 Research and development 197 548 General and administrative 1,332 2,253 Total stock-based compensation $ 2,859 $ 4,568 The above table does not include $0.2 million of capitalized stock-based compensation related to internal-use software during the three months ended March 31, 2016 . There was no capitalized stock-based compensation related to internal-use software during the three months ended March 31, 2015 . Determining Fair Value of Stock Awards 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, upon vesting, entitles the holder to one share of common stock for each restricted stock unit or award, and has a purchase price of $ 0.0001 per share, which is equal to the par value of the Company’s common stock, and vests over four years . 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. We estimate the fair value of stock options granted using the Black-Scholes option-pricing model. This model requires us to make estimates and assumptions including, among other things, estimates regarding the length of time an employee will retain vested stock options before exercising them, the estimated volatility of our common stock price using peer company volatility and the number of options that will be forfeited prior to vesting. Prior to January 1, 2016, the expected stock price volatility assumption was determined by examining the historical volatilities for industry peers. Effective January 1, 2016, the stock price volatility assumption was determined by examining a blend of the historical volatilities for industry peers and the trading history for the Company’s common stock. Option and restricted stock activity under the 2011 Plan for the three months ended March 31, 2016 was as follows (shares in thousands): Options Outstanding Restricted Stock Shares and Units Number Weighted- Number Outstanding — December 31, 2015 7,055 10,616 $ 4.79 4,552 Additional shares reserved under the 2011 equity incentive plan 3,478 — — — Granted (476 ) 302 3.90 174 Options exercised/ Restricted stock released (24 ) 3.93 (242 ) RSU shares withheld for taxes 13 — — 13 Canceled/Forfeited 762 (312 ) 5.42 (450 ) Outstanding — March 31, 2016 10,832 10,582 $ 4.75 4,047 The weighted average grant-date fair value of employee stock options granted during the three months ended March 31, 2016 and 2015 was $2.08 and $1.12 per share, respectively. The unamortized grant date fair value of both stock options and restricted stock awards totaled $18.2 million at March 31, 2016. 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 twelve month offering period. 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. On January 1, 2016, approximately 0.9 million additional shares were reserved under the ESPP pursuant to the plan's automatic increase provision. As of March 31, 2016, 1.6 million total shares had been issued under the ESPP and 3.3 million shares were available for future issuance. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to taxation in the United States and various state and foreign jurisdictions. Earnings from non-U.S. activities are subject to local country income tax. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. The primary difference between the effective tax rate and the federal statutory tax rate relates to the valuation allowances on the Company’s net operating losses and foreign tax rate differences. The tax years 2010 through 2015 remain subject to examination by federal, state and foreign tax authorities. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely outside the U.S. 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 aggregate dollar and earnings per share impact is not material. Consistent with the Company’s practice in prior periods for assessing realization of deferred tax assets, management believes that based on the available objective evidence it is more likely than not that the tax benefits of the U.S. and Singapore losses will not be realized. As a result, the Company provided a valuation allowance for all U.S. federal net deferred tax assets, for all Singapore net deferred tax assets, and for substantially all of the Company’s state deferred tax assets other than those as described below. The Company continues to record valuation allowance 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 March 31, 2016 financial results. For the first quarter of 2016 , the Company recorded income tax expense of $1.3 million . This amount primarily represents $0.7 million of anticipated taxes in jurisdictions where the Company has profitable operations, including certain U.S. states and foreign jurisdictions and approximately $0.6 million related to an increase in valuation allowance which reflects the portion of certain state deferred tax assets that are more likely than not to be realized. No benefit was provided for losses incurred in U.S. and Singapore because those losses are offset by a full valuation allowance. The gross amount of the Company's unrecognized tax benefits was $0.9 million as of March 31, 2016 and December 31, 2015 , none of which, if recognized, would affect the Company’s effective tax rate. |
Description of Business and B16
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | These condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP” or “GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X, without audit. Accordingly, they do not include all of the information required by U.S. GAAP for annual financial statements. The unaudited condensed consolidated balance sheet as of December 31, 2015 has been derived from the Company's audited annual consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission ("SEC") on March 8, 2016. These condensed consolidated financial statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and the notes thereto for the year ended December 31, 2015 , included in our Annual Report on Form 10-K. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments, management considers necessary for a fair statement of the Company's financial position, operating results, and cash flows for the interim periods presented. Preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Also, the results for the interim periods are not necessarily indicative of results for the entire year. The Company’s Chief Executive Officer ("CEO") is its chief operating decision maker. The CEO historically managed the Company as two reportable segments: Managed Services and Cloud and Business Intelligence ("CBI") based on the discrete financial information available for each segment. However, during the second half of 2015, the Company began implementing a series of actions to emphasize a one-company, single go-to-market strategy for its services offering that resulted in the reorganization of its CBI personnel and sales team delivery structure. The objective of these actions was to more closely integrate and support the Managed Services organization with the Company’s cloud technologies and to eliminate new stand-alone CBI cloud offerings. Further, due to this reorganization and shift to a single go-to-market strategy, discrete cost information was no longer separately available for the former CBI segment. Consequently, as of the first quarter of 2016, the CEO manages and allocates resources on a company-wide basis as a single segment that is focused on service offerings which integrate data, processes and cloud technologies. |
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. 2015-05, 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 is effective for the Company in fiscal year 2016. 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 has historically accounted for its cloud computing arrangements as a service contract. Consequently, adoption of ASU No. 2015-03 had no impact on the Company's 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 its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting". This standard simplifies and clarifies certain aspects of share-based payment accounting and presentation. The standard is effective for fiscal years and the interim periods within those fiscal years beginning after December 15, 2016 with early adoption permitted. The Company is currently assessing the impact that adoption of ASU 2016-09 will have on its consolidated financial statements. |
Cash and Cash Equivalents | Cash equivalents consist of highly liquid fixed-income investments with original maturities of three months or less at the time of purchase, including money market funds. The Company has cash and cash equivalents held on its behalf by a third party of $0.5 million and $0.8 million as of March 31, 2016 and December 31, 2015 , 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 other-than-temporary declines in fair value have 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. |
Income Taxes | The Company is subject to taxation in the United States and various state and foreign jurisdictions. Earnings from non-U.S. activities are subject to local country income tax. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. The primary difference between the effective tax rate and the federal statutory tax rate relates to the valuation allowances on the Company’s net operating losses and foreign tax rate differences. The tax years 2010 through 2015 remain subject to examination by federal, state and foreign tax authorities. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely outside the U.S. |
Reclassification, Policy [Policy Text Block] | Reclassifications Amounts shown in Other assets, net, caption in the Consolidated Balance Sheet as of December 31, 2015 have been reclassified to Convertible notes, net, to reflect the current period presentation as a result of the adoption of 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. |
Cash, Cash Equivalents and Sh17
Cash, Cash Equivalents and Short-term Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 60,173 $ — $ — $ 60,173 Cash equivalents: Money market mutual funds 1,221 — — 1,221 Total cash and cash equivalents 61,394 — — 61,394 Short-term investments: Corporate bonds 54,782 134 (92 ) 54,824 U.S. agency securities 36,286 159 — 36,445 Asset-backed securities 28,060 44 (12 ) 28,092 U.S. Treasury securities 17,444 112 — 17,556 Total short-term investments 136,572 449 (104 ) 136,917 Cash, cash equivalents and short-term investments $ 197,966 $ 449 $ (104 ) $ 198,311 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 |
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 maturities as of March 31, 2016 (in thousands): Amortized Cost Estimated Fair Value Less than 1 year $ 15,655 $ 15,648 Due in 1 to 3 years 122,138 122,490 Total $ 137,793 $ 138,138 |
Fair Value of Financial Instr18
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments Measured at Fair Value | The following table presents information about the Company’s financial instruments that are measured at fair value as of March 31, 2016 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) Cash equivalents: Money market mutual funds $ 1,221 $ 1,221 $ — Total cash equivalents 1,221 1,221 — Short-term investments: Corporate bonds 54,824 — 54,824 U.S. agency securities 36,445 — 36,445 Asset-backed securities 28,092 — 28,092 U.S. Treasury securities 17,556 — 17,556 Total short-term investments 136,917 — 136,917 Cash equivalents and short-term investments $ 138,138 $ 1,221 $ 136,917 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) 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 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities balances were comprised of the following (in thousands): March 31, December 31, Accrued Interest - Convertible Notes $ 375 $ 948 Deferred Rent 782 738 ESPP Withholding 343 641 Total $ 1,500 $ 2,327 |
Credit Facility and Capital L20
Credit Facility and Capital Leases (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Future Minimum Annual Payments Under Capital Lease Obligations | Future minimum annual payments under capital lease obligations as of March 31, 2016 were as follows (in thousands): March 31, Years Ending December 31, 2016 (remaining nine months) $ 72 2017 67 2018 69 2019 54 2020 — Total $ 262 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Net Carrying Amount of Liability Component | The net carrying amount of the liability component of the Notes consists of the following (in thousands): March 31, 2016 December 31, 2015 Principal amount $ 150,000 $ 150,000 Unamortized debt discount (19,984 ) (21,908 ) Unamortized debt issuance costs (1,861 ) (2,041 ) Net carrying amount $ 128,155 $ 126,051 |
Schedule of Interest Expense on Notes Recognized | The following table presents the interest expense recognized related to the Notes (in thousands): Three Months Ended March 31, 2016 2015 Contractual interest expense at 1.5% per annum $ 563 $ 563 Amortization of debt issuance costs 179 164 Accretion of debt discount 1,924 1,755 Total $ 2,666 $ 2,482 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Annual Minimum Lease Payments Under All Noncancelable Operating Leases | Future annual minimum lease payments under all noncancelable operating leases as of March 31, 2016 were as follows (in thousands): March 31, 2016 Years Ending December 31, 2016 (remaining nine months) $ 7,632 2017 10,037 2018 9,420 2019 8,065 2020 6,888 Thereafter 10,162 Total $ 52,204 |
Share Repurchase Program, Sto23
Share Repurchase Program, Stock-Based Compensation and ESPP (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Common Stock Repurchase | The following shares of common stock were repurchased under the above-described repurchase plan: Number of Shares (in thousands) Weighted Average Repurchase Price Per Share Amount (includes commissions) (in thousands) 2016: First quarter 1,835 $ 3.96 $ 7,260 2015: Fourth quarter 136 $ 4.09 $ 557 Third Quarter 159 $ 4.12 655 Total common stock repurchases 2,130 $ 8,472 |
Summary of Stock-Based Compensation Expense | The following table summarizes the consolidated stock-based compensation expense included in the condensed consolidated statements of operations (in thousands): Three Months Ended 2016 2015 Cost of revenue $ 468 $ 836 Sales and marketing 862 931 Research and development 197 548 General and administrative 1,332 2,253 Total stock-based compensation $ 2,859 $ 4,568 |
Summary of Option and Restricted Stock Activity | Option and restricted stock activity under the 2011 Plan for the three months ended March 31, 2016 was as follows (shares in thousands): Options Outstanding Restricted Stock Shares and Units Number Weighted- Number Outstanding — December 31, 2015 7,055 10,616 $ 4.79 4,552 Additional shares reserved under the 2011 equity incentive plan 3,478 — — — Granted (476 ) 302 3.90 174 Options exercised/ Restricted stock released (24 ) 3.93 (242 ) RSU shares withheld for taxes 13 — — 13 Canceled/Forfeited 762 (312 ) 5.42 (450 ) Outstanding — March 31, 2016 10,832 10,582 $ 4.75 4,047 |
Description of Business and B24
Description of Business and Basis of Presentation (Details) - segment | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||
Number of segments managed by CEO | 1 | 2 |
Cash, Cash Equivalents and Sh25
Cash, Cash Equivalents and Short-term Investments - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents held by third party | $ 0.5 | $ 0.8 |
Cash, Cash Equivalents and Sh26
Cash, Cash Equivalents and Short-term Investments - Summary of Cash and Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash and cash equivalents, Amortized Cost | $ 61,394 | $ 72,334 | $ 85,235 | $ 90,382 |
Total short-term investments, Amortized Cost | 136,572 | 137,133 | ||
Total short-term investments, Unrealized Gains | 449 | 0 | ||
Total short-term investments, Unrealized Losses | (104) | (755) | ||
Total short-term investments, Estimated Fair Value | 136,917 | 136,378 | ||
Cash, cash equivalents and short-term investments, Amortized Cost | 197,966 | 209,467 | ||
Cash, cash equivalents and short-term investments, Unrealized Gains | 449 | 0 | ||
Cash, cash equivalents and short-term investments, Unrealized Losses | (104) | (755) | ||
Cash, cash equivalents and short-term investments, Estimated Fair Value | 198,311 | 208,712 | ||
Corporate bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total short-term investments, Amortized Cost | 54,782 | 54,434 | ||
Total short-term investments, Unrealized Gains | 134 | 0 | ||
Total short-term investments, Unrealized Losses | (92) | (389) | ||
Total short-term investments, Estimated Fair Value | 54,824 | 54,045 | ||
U.S. agency securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total short-term investments, Amortized Cost | 36,286 | 36,010 | ||
Total short-term investments, Unrealized Gains | 159 | 0 | ||
Total short-term investments, Unrealized Losses | 0 | (187) | ||
Total short-term investments, Estimated Fair Value | 36,445 | 35,823 | ||
Asset-backed securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total short-term investments, Amortized Cost | 28,060 | 30,665 | ||
Total short-term investments, Unrealized Gains | 44 | 0 | ||
Total short-term investments, Unrealized Losses | (12) | (132) | ||
Total short-term investments, Estimated Fair Value | 28,092 | 30,533 | ||
U.S. Treasury securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total short-term investments, Amortized Cost | 17,444 | 16,024 | ||
Total short-term investments, Unrealized Gains | 112 | 0 | ||
Total short-term investments, Unrealized Losses | 0 | (47) | ||
Total short-term investments, Estimated Fair Value | 17,556 | 15,977 | ||
Cash | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash and cash equivalents, Amortized Cost | 60,173 | 72,105 | ||
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 | 60,173 | 72,105 | ||
Money market mutual funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash and cash equivalents, Amortized Cost | 1,221 | 229 | ||
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 | 1,221 | 229 | ||
Total cash and cash equivalents | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash and cash equivalents, Amortized Cost | 61,394 | 72,334 | ||
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 | $ 61,394 | $ 72,334 |
Cash, Cash Equivalents and Sh27
Cash, Cash Equivalents and Short-term Investments - Summary of Cost and Estimated Fair Values of Short Term Fixed Income Securities (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Amortized Cost | |
Less than 1 year | $ 15,655 |
Due in 1 to 3 years | 122,138 |
Total | 137,793 |
Estimated Fair Value | |
Less than 1 year | 15,648 |
Due in 1 to 3 years | 122,490 |
Total | $ 138,138 |
Fair Value of Financial Instr28
Fair Value of Financial Instruments - Summary of Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Short-term investments: | ||
Total short-term investments | $ 136,917 | $ 136,378 |
Fair Value, Measurements, Recurring | ||
Cash equivalents: | ||
Total cash equivalents | 1,221 | 229 |
Short-term investments: | ||
Total short-term investments | 136,917 | 136,378 |
Cash equivalents and short-term investments | 138,138 | 136,607 |
Fair Value, Measurements, Recurring | Money market mutual funds | ||
Cash equivalents: | ||
Total cash equivalents | 1,221 | 229 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Short-term investments: | ||
Total short-term investments | 54,824 | 54,045 |
Fair Value, Measurements, Recurring | U.S. agency securities | ||
Short-term investments: | ||
Total short-term investments | 36,445 | 35,823 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Short-term investments: | ||
Total short-term investments | 28,092 | 30,533 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Short-term investments: | ||
Total short-term investments | 17,556 | 15,977 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Cash equivalents: | ||
Total cash equivalents | 1,221 | 229 |
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Cash equivalents and short-term investments | 1,221 | 229 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market mutual funds | ||
Cash equivalents: | ||
Total cash equivalents | 1,221 | 229 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. agency securities | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Short-term investments: | ||
Total short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Cash equivalents: | ||
Total cash equivalents | 0 | 0 |
Short-term investments: | ||
Total short-term investments | 136,917 | 136,378 |
Cash equivalents and short-term investments | 136,917 | 136,378 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Money market mutual funds | ||
Cash equivalents: | ||
Total cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Short-term investments: | ||
Total short-term investments | 54,824 | 54,045 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. agency securities | ||
Short-term investments: | ||
Total short-term investments | 36,445 | 35,823 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Short-term investments: | ||
Total short-term investments | 28,092 | 30,533 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Short-term investments: | ||
Total short-term investments | $ 17,556 | $ 15,977 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Significant Other Observable Inputs (Level 2) | Convertible Notes Payable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of convertible notes | $ 118.9 | $ 126 |
Other Assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash | $ 1.2 | $ 1.2 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued Interest - Convertible Notes | $ 375 | $ 948 |
Deferred Rent | 782 | 738 |
ESPP Withholding | 343 | 641 |
Total | $ 1,500 | $ 2,327 |
Credit Facility and Capital L31
Credit Facility and Capital Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Feb. 03, 2015 | |
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 | 3.60% | 5.70% | |
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Letter of credit | $ 1.2 | ||
Letter of Credit | Money market mutual funds | |||
Line of Credit Facility [Line Items] | |||
Letter of credit, collateral | $ 1.2 |
Credit Facility and Capital L32
Credit Facility and Capital Leases - Schedule of Future Minimum Annual Payments Under Capital Lease Obligations (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2016 (remaining nine months) | $ 72 |
2,017 | 67 |
2,018 | 69 |
2,019 | 54 |
2,020 | 0 |
Net carrying amount | $ 262 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ / shares in Units, shares in Thousands | 1 Months Ended | |||
Aug. 31, 2013USD ($)d$ / sharesshares | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Debt | $ 262,000 | |||
Payments of convertible note hedges | $ 31,400,000 | |||
Shares covered under note hedges (in shares) | shares | 9,250 | |||
Common stock strike price (in dollars per share) | $ / shares | $ 16.21 | |||
Warrant | ||||
Debt Instrument [Line Items] | ||||
Proceeds from the issuance of warrants | $ 21,800,000 | |||
Warrants sold to acquire shares (in shares) | shares | 9,250 | |||
Exercise price of warrant (in dollars per share) | $ / shares | $ 21.02 | |||
Senior Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Proceeds from issuance of debt | $ 150,000,000 | |||
Interest rate (percent) | 1.50% | 1.50% | 1.50% | |
Conversion ratio | 0.061677 | |||
Conversion price (in dollars per share) | $ / shares | $ 16.21 | |||
Threshold consecutive trading days | 5 days | |||
Threshold percentage of stock price trigger (percent) | 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 (percent) | 25.00% | |||
Debt | $ 111,500,000 | $ 128,155,000 | $ 126,051,000 | |
Additional paid in capital | 38,500,000 | |||
Transaction costs, additional paid in capital | 4,900,000 | |||
Net proceeds from the Notes | 145,100,000 | |||
Senior Convertible Notes | Note Hedges | ||||
Debt Instrument [Line Items] | ||||
Payments of convertible note hedges | 31,400,000 | |||
Senior Convertible Notes | Warrant | ||||
Debt Instrument [Line Items] | ||||
Proceeds from the issuance of warrants | $ 21,800,000 | |||
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 (percent) | 130.00% | |||
Other Assets | Senior Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Debt component of transaction costs, gross | $ 3,600,000 | |||
Additional Paid-in Capital [Member] | Senior Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Transaction costs, additional paid in capital | $ 1,300,000 |
Debt - Schedule of Net Carrying
Debt - Schedule of Net Carrying Amount of Liability Component (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Aug. 31, 2013 |
Liability Component | |||
Net carrying amount | $ 262 | ||
Senior Convertible Notes | |||
Liability Component | |||
Principal amount | 150,000 | $ 150,000 | |
Unamortized debt discount | (19,984) | (21,908) | |
Unamortized debt issuance costs | (1,861) | (2,041) | |
Net carrying amount | $ 128,155 | $ 126,051 | $ 111,500 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense on Notes Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Aug. 31, 2013 | |
Interest Expense | |||
Total | $ 1,509 | $ 1,845 | |
Senior Convertible Notes | |||
Interest Expense | |||
Interest rate (percent) | 1.50% | 1.50% | 1.50% |
Contractual interest expense at 1.5% per annum | $ 563 | $ 563 | |
Amortization of debt issuance costs | 179 | 164 | |
Accretion of debt discount | 1,924 | 1,755 | |
Total | $ 2,666 | $ 2,482 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2016USD ($)ft² | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Operating Leased Assets [Line Items] | |||
Operating lease payment of non-cancelable agreement expiration period | through November 30, 2022 | ||
Rent expense | $ 2,600 | $ 2,200 | |
Total future annual minimum lease payment | $ 52,204 | ||
SINGAPORE | Subsequent Event | |||
Operating Leased Assets [Line Items] | |||
Lease term (in years) | 6 years | ||
Area of space (in square feet) | ft² | 17,626 | ||
Total future annual minimum lease payment | $ 4,800 |
Commitments and Contingencies37
Commitments and Contingencies - Schedule of Future Annual Minimum Lease Payments Under All Noncancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2016 (remaining nine months) | $ 7,632 |
2,017 | 10,037 |
2,018 | 9,420 |
2,019 | 8,065 |
2,020 | 6,888 |
Thereafter | 10,162 |
Total | $ 52,204 |
Share Repurchase Program, Sto38
Share Repurchase Program, Stock-Based Compensation and ESPP - Schedule Of Common Stock Repurchase (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Number of Shares (in shares) | 1,835 | 136 | 159 | 2,130 |
Weighted Average Repurchase Price Per Share (in dollars per share) | $ 3.96 | $ 4.09 | $ 4.12 | |
Amount (includes commissions) | $ 7,260 | $ 557 | $ 655 | $ 8,472 |
Share Repurchase Program, Sto39
Share Repurchase Program, Stock-Based Compensation and ESPP - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 2,859 | $ 4,568 |
Cost of revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 468 | 836 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 862 | 931 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 197 | 548 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 1,332 | $ 2,253 |
Share Repurchase Program, Sto40
Share Repurchase Program, Stock-Based Compensation and ESPP - Summary of Option and Restricted Stock Activity (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Options Outstanding, Number of Shares | |
Shares and Units Available for Grant, Beginning balance | 7,055 |
Additional shares reserved under the 2011 equity incentive plan | 3,478 |
Shares and Units Available for Grant, Granted | (476) |
Shares and Units Available for Grant, Options exercised/ Restricted stock released | |
Shares and Units Available for Grant, RSU shares withheld for taxes | 13 |
Shares and Units Available for Grant, Options Outstanding, Number of Shares | 0 |
Shares and Units Available for Grant, Canceled/Forfeited | 762 |
Shares and Units Available for Grant, Ending balance | 10,832 |
Options Outstanding, Options, Weighted Average Exercise Price | |
Options Outstanding, Weighted Average Exercise Price, RSU shares withheld for taxes (in dollars per share) | $ / shares | $ 0 |
Employee Stock Option | |
Options Outstanding, Number of Shares | |
Options Outstanding, Number of Shares, Beginning Balance | 10,616 |
Additional shares reserved under the 2011 equity incentive plan | 0 |
Options Outstanding, Number of Shares, Granted | 302 |
Options Outstanding, Number of Shares, Options exercised/ Restricted stock released | (24) |
Options Outstanding, Number of Shares, Canceled /Forfeited | (312) |
Options Outstanding, Number of Shares, Ending Balance | 10,582 |
Options Outstanding, Options, Weighted Average Exercise Price | |
Options Outstanding, Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ / shares | $ 4.79 |
Options Outstanding, Weighted Average Exercise Price, Granted (in dollars per share) | $ / shares | 3.90 |
Options Outstanding, Weighted Average Exercise Price, Options exercised/ Restricted stock released (in dollars per share) | $ / shares | 3.93 |
Options Outstanding, Weighted Average Exercise Price, Canceled/Forfeited (in dollars per share) | $ / shares | 5.42 |
Options Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ / shares | $ 4.75 |
Restricted Stock Outstanding | |
Options Outstanding, Number of Shares | |
Restricted Stock Outstanding Number of Shares, Beginning balance | 4,552 |
Additional shares reserved under the 2011 equity incentive plan | 0 |
Restricted Stock Outstanding Number of Shares, Granted | 174 |
Restricted Stock Outstanding Number of Shares, Options exercised/ Restricted stock released | (242) |
Shares and Units Available for Grant, Restricted Stock Outstanding, Number of Shares | 13 |
Restricted Stock Outstanding Number of Shares, Canceled /Forfeited | (450) |
Restricted Stock Outstanding Number of Shares, Ending balance | 4,047 |
Share Repurchase Program, Sto41
Share Repurchase Program, Stock-Based Compensation and ESPP - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Jan. 01, 2016 | Dec. 31, 2015 | Aug. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount (up to) | $ 30,000,000 | ||||
Stock repurchase program, remaining authorized amount | $ 21,500,000 | ||||
Capitalized stock-based compensation related to internal-use software | $ 200,000 | $ 0 | |||
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ 2.08 | $ 1.12 | |||
Grant date fair value | $ 18,200,000 | ||||
Percentage of payroll deductions (percent) | 10.00% | ||||
Percentage of purchase price of the shares on each purchase date is equal to the fair market value (percent) | 85.00% | ||||
Common stock on the first and last trading days on offering period (in months) | 12 months | ||||
Shares issued (in shares) | 1,600 | ||||
Shares available for future issuance (in shares) | 10,832 | 7,055 | |||
Stock Compensation Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
requisite service period (in years) | 4 years | ||||
Restricted Stock Outstanding | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercise price (in dollars per share) | $ 0.0001 | ||||
Share-based payment award, award vesting period (in years) | 4 years | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued (in shares) | 1,500 | ||||
Percentage of outstanding shares (percent) | 1.00% | ||||
Shares available for future issuance (in shares) | 3,300 | 900 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Gross amount of unrecognized tax benefits, which, if recognized, would affect effective tax rate | $ 0 | $ 0 | |
Income tax provision | 1,288,000 | $ 134,000 | |
Income tax expense in domestic and foreign jurisdictions | 700,000 | ||
Change in valuation allowance | 600,000 | ||
Unrecognized tax benefits | $ 900,000 | $ 900,000 |