ServiceSource International (SREV) 10-Q 8 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
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		88,610,811

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 50,345	$ 47,692
Short-term investments	138,701	137,881
Accounts receivable, net	53,190	63,289
Prepaid expenses and other	5,783	7,607
Total current assets	248,019	256,469
Property and equipment, net	38,186	38,180
Deferred income taxes, net of current portion	65	64
Goodwill and intangibles, net	7,554	7,932
Other assets, net	3,447	3,445
Total assets	297,271	306,090
Current liabilities:
Accounts payable	1,803	1,916
Accrued taxes	1,051	1,388
Accrued compensation and benefits	17,514	21,579
Deferred revenue	5,286	4,152
Accrued expenses	6,983	5,891
Other current liabilities	1,456	2,958
Total current liabilities	34,093	37,884
Convertible notes, net	137,016	134,775
Other long-term liabilities	7,061	6,495
Total liabilities	178,170	179,154
Commitments and contingencies (Note 7)
Stockholders’ equity:
Common stock; $0.0001 par value; 1,000,000 shares authorized; 88,645 shares issued and 88,524 shares outstanding as of March 31, 2017; 88,304 shares issued and 88,183 shares outstanding as of December 31, 2016	8	8
Treasury stock	(441)	(441)
Additional paid-in capital	348,367	344,521
Accumulated deficit	(227,985)	(216,361)
Accumulated other comprehensive income	(848)	(791)
Total stockholders’ equity	119,101	126,936
Total liabilities and stockholders’ equity	$ 297,271	$ 306,090

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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)	88,645,000	88,304,000
Common stock, shares outstanding (in shares)	88,524,000	88,183,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net revenue	$ 56,708	$ 59,750
Cost of revenue	41,409	41,434
Gross profit	15,299	18,316
Operating expenses:
Sales and marketing	8,340	10,454
Research and development	2,243	2,163
General and administrative	13,980	12,043
Total operating expenses	24,563	24,660
Loss from operations	(9,264)	(6,344)
Interest expense and other, net	(2,070)	(1,509)
Loss before income taxes	(11,334)	(7,853)
Income tax provision	290	1,288
Net loss	$ (11,624)	$ (9,141)
Net loss per share, basic and diluted (in dollars per share)	$ (0.13)	$ (0.11)
Weighted average common shares outstanding, basic and diluted (in shares)	88,385	86,081

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (11,624)	$ (9,141)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(130)	765
Unrealized gain on short-term investments, net of tax	73	345
Other comprehensive income (loss), net of tax	(57)	1,110
Total comprehensive loss, net of tax	$ (11,681)	$ (8,031)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net loss	$ (11,624)	$ (9,141)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	4,731	3,737
Amortization of debt discount and issuance costs	2,241	2,103
Accretion of premium on short-term investments	(94)	405
Deferred income taxes	95	1,097
Stock-based compensation	3,218	2,859
Changes in operating assets and liabilities:
Accounts receivable, net	10,470	2,029
Deferred revenue	1,134	85
Prepaid expenses and other	1,888	1,034
Accounts payable	(104)	1,702
Accrued taxes	(337)	(434)
Accrued compensation and benefits	(4,176)	(4,427)
Accrued expenses	1,021	1,584
Other liabilities	(1,095)	(920)
Net cash provided by operating activities	7,368	1,713
Cash flows from investing activities
Acquisition of property and equipment	(4,432)	(5,279)
Purchases of short-term investments	(18,059)	(30,999)
Sales of short-term investments	16,513	31,155
Maturities of short-term investments	925	0
Net cash used in investing activities	(5,053)	(5,123)
Cash flows from financing activities
Repayment on capital leases obligations	(16)	(66)
Repurchase of common stock	0	(7,260)
Proceeds from common stock issuances	616	691
Minimum tax withholding requirement	(131)	(51)
Net cash provided by (used in) financing activities	469	(6,686)
Net increase (decrease) in cash and cash equivalents	2,784	(10,096)
Effect of exchange rate changes on cash and cash equivalents	(131)	(844)
Cash and cash equivalents at beginning of period	47,692	72,334
Cash and cash equivalents at end of period	$ 50,345	$ 61,394

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
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 outsourced, performance-based customer success and revenue growth solutions. Through the Company’s people, processes and technology, the Company grows and retain revenue on behalf of its clients - some of the world’s leading business-to-business companies-in more than 35 languages. The Company’s solutions help its clients strengthen their customer relationships, drive improved customer adoption, expansion and retention and minimize churn. The Company’s technology platform and best-practice business processes combined with its highly-trained, client-focused revenue delivery professionals and data from over 15 years of operating experience enable the Company to provide its clients greater value for its customer success services than attained by its clients' in-house customer success teams. The Company’s pay-for-performance model allows its clients to pay for the services through either flat-rate or variable commissions based on the revenue generated by the Company on their behalf. Fixed-fee arrangements are typically used in quick deployments to address discrete target areas of our clients’ needs. The Company also generates revenue through its professional services teams, who assist clients with data optimization, as well as through supporting select existing clients with the Company’s Renew OnDemand application The Company’s corporate headquarters is located in Denver, Colorado. The Company has additional U.S. offices in California and Tennessee, and international offices in Bulgaria, Ireland, Japan, Malaysia, 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, 2016 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, 2016 filed with the Securities and Exchange Commission ("SEC") on March 6, 2017. 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, 2016 , 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. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) which amended the existing FASB Accounting Standards Codification. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The standard also specifies that the incremental costs of obtaining a contract with a customer and the costs of fulfilling a contract with a customer (if those costs are not within the scope of another Topic or Sub-Topic) would be deferred and recognized over the appropriate period of contract performance if they are expected to be recovered. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The FASB recently issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method, also known as the cumulative catch-up transition method). The updates are effective for the Company for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for annual periods beginning after December 15, 2016. The Company continues to assess the impacts of the standard, and has not yet determined whether the standard will have a material impact on our consolidated financial statements. However, we currently believe the most significant impact is from the timing of recognition of sales commission expenses, which upon adoption will be recognized as costs over a period of time instead of immediately. We are also in the process of assessing the impact of the new standard on certain of our contracts that include performance-based fees. We currently recognize such fees in the period when the performance criteria have been met; however, under the new standard we would estimate the variable fees and recognize amounts for which it is probable that a significant reversal would not occur. For certain contracts, this could result in acceleration of recognition of the performance-based fees. We do not currently expect our recurring revenue management fees, based on a fixed percentage of overall sales value associated with the service contracts, to be significantly impacted by the new standard. We will adopt the standard in the first quarter of 2018 and preliminarily expect to use the modified prospective method. However, we are continuing to evaluate the impact of the standard, and our adoption method is subject to change. We expect to complete our assessment process, including impacts on our processes, systems and financial statement disclosures, by the end of the third quarter of 2017. In February 2016, the FASB issued ASU No. 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 continues to assess the impact of the adoption of this authoritative guidance on its consolidated financial statements. Reclassifications Amounts shown in Financing activities - Minimum tax withholding requirement in the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2016 have been reclassified from Operating activities - Prepaid expenses and other, to reflect the current period presentation as a result of the adoption of ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which requires shares withheld for employee taxes to be reclassified from operating activities to financing activities.

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-Term Investments	3 Months Ended
	Mar. 31, 2017
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. 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 and are available for use in the Company's daily operations. 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, 2017 and 2016 were insignificant. Cash and cash equivalents and short-term investments consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 49,835 $ — $ — $ 49,835 Cash equivalents: Money market mutual funds 510 — — 510 Total cash and cash equivalents 50,345 — — 50,345 Short-term investments: Corporate bonds 55,010 43 (139 ) 54,914 U.S. agency securities 34,653 1 (257 ) 34,397 Asset-backed securities 24,207 12 (27 ) 24,192 U.S. Treasury securities 25,462 1 (265 ) 25,198 Total short-term investments 139,332 57 (688 ) 138,701 Cash, cash equivalents and short-term investments $ 189,677 $ 57 $ (688 ) $ 189,046 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 47,060 $ — $ — $ 47,060 Cash equivalents: Money market mutual funds 632 — — 632 Total cash and cash equivalents 47,692 — — 47,692 Short-term investments: Corporate bonds 54,827 19 (188 ) 54,658 U.S. agency securities 34,658 — (281 ) 34,377 Asset-backed securities 26,431 25 (23 ) 26,433 U.S. Treasury securities 22,701 — (288 ) 22,413 Total short-term investments 138,617 44 (780 ) 137,881 Cash, cash equivalents and short-term investments $ 186,309 $ 44 $ (780 ) $ 185,573 The following table summarizes the amortized cost and estimated fair value of money market mutual funds and short-term fixed income securities classified as short-term investments based on stated maturities as of March 31, 2017 (in thousands): Amortized Cost Estimated Fair Value Less than 1 year $ 20,667 $ 20,656 Due in 1 to 3 years 119,175 118,555 Total $ 139,842 $ 139,211 As of March 31, 2017 , 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, 2017
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, 2017 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 $ 510 $ 510 $ — Total cash equivalents 510 510 — Short-term investments: Corporate bonds 54,914 — 54,914 U.S. agency securities 34,397 — 34,397 Asset-backed securities 24,192 — 24,192 U.S. Treasury securities 25,198 — 25,198 Total short-term investments 138,701 — 138,701 Cash equivalents and short-term investments $ 139,211 $ 510 $ 138,701 The Company has restricted cash of $1.2 million within Other assets, net as of March 31, 2017 and December 31, 2016 . 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, 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 $ 632 $ 632 $ — Total cash equivalents 632 632 — Short-term investments: Corporate bonds 54,658 — 54,658 U.S. agency securities 34,377 — 34,377 Asset-backed securities 26,433 — 26,433 U.S. Treasury securities 22,413 — 22,413 Total short-term investments 137,881 — 137,881 Cash equivalents and short-term investments $ 138,513 $ 632 $ 137,881 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 issuance costs, and are not marked to market each period. The approximate fair value of the convertible notes as of March 31, 2017 and December 31, 2016 was $144.8 million and $143.8 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, 2017 and December 31, 2016 .

Other Assets, Net

Other Assets, Net	3 Months Ended
	Mar. 31, 2017
Other Assets, Noncurrent Disclosure [Abstract]
Other Assets, Net	Other Assets, Net Other assets, net balances were comprised of the following (in thousands): March 31, December 31, Restricted Cash $ 1,244 $ 1,244 Long-term deposits and other 2,203 2,201 Total $ 3,447 $ 3,445 On February 3, 2015, the Company issued a $1.2 million letter of credit in connection with a leased 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 condensed consolidated balance sheets.

Other Current Liabilities

Other Current Liabilities	3 Months Ended
	Mar. 31, 2017
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 $ 938 Deferred Rent 795 1,359 ESPP Withholding 286 661 Total $ 1,456 $ 2,958

Debt

Debt	3 Months Ended
	Mar. 31, 2017
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 shares 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 scheduled 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 conversion or repurchase at March 31, 2017 . 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. As a result of the adoption of ASU No. 2015-03 in Q1 2016, Simplifying the Presentation of Debt Issuance Cost, these costs were reclassified to Convertible Notes, net, as of December 31, 2016. 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, 2017 December 31, 2016 Principal amount $ 150,000 $ 150,000 Unamortized debt discount (11,878 ) (13,928 ) Unamortized debt issuance costs (1,106 ) (1,297 ) Net carrying amount $ 137,016 $ 134,775 The following table presents the interest expense recognized related to the Notes (in thousands): Three Months Ended March 31, 2017 2016 Contractual interest expense at 1.5% per annum $ 563 $ 563 Amortization of debt issuance costs 191 179 Accretion of debt discount 2,050 1,924 Total $ 2,804 $ 2,666 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, 2017
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, 2017 and 2016 was $2.8 million and $2.6 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. Litigation The Company is subject to various legal proceedings and claims arising in the ordinary course of our business, including the cases discussed below. 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. As of March 31, 2017, the Company has accrued a $1.5 million reserve relating to our potential liability for currently pending disputes, reflected in Accrued Expenses in the accompanying condensed consolidated balance sheets. On August 23, 2016, the United States District Court for the Middle District of Tennessee granted conditional class certification in a lawsuit originally filed on September 21, 2015 by three former senior sales representatives. The lawsuit, Sarah Patton, et al v. ServiceSource Delaware, Inc., asserts a claim under the Fair Labor Standards Act alleging that certain sales account representatives and senior sales representatives in our Nashville location were not paid for all hours worked and were not properly paid for overtime hours worked. The complaint also asserts claims under Tennessee state law for breach of contract and unjust enrichment; however, the plaintiffs have not yet filed a motion to certify the state law breach of contract and unjust enrichment claims as a class action. The Company will continue to vigorously defend itself against these claims.

Share Repurchase Program, Stock

Share Repurchase Program, Stock-Based Compensation and ESPP	3 Months Ended
	Mar. 31, 2017
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 $19.9 million as of March 31, 2017 . The share repurchase program does not obligate the Company 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. No shares were repurchased under the program during the quarter ended March 31, 2017. The following table summarizes the consolidated stock-based compensation expense included in the condensed consolidated statements of operations (in thousands): Three Months Ended 2017 2016 Cost of revenue $ 291 $ 468 Sales and marketing 882 862 Research and development 99 197 General and administrative 1,946 1,332 Total stock-based compensation $ 3,218 $ 2,859 The above table does not include $0.1 million and $0.2 million of capitalized stock-based compensation related to internal-use software during the three months ended March 31, 2017 and 2016, respectively. 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. 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. The stock price volatility assumption is determined by examining a blend of the historical volatilities for industry peers and the trading history for the Company’s common stock. 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 actual forfeitures during the period 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 actual forfeitures during the period is recognized on a straight-line basis over the vesting period. Equity Incentive Plan During the third quarter of 2016, the Company granted performance-based restricted stock unit awards under the Company’s 2011 Equity Incentive Plan to certain key executives (the “2016 PSU Awards”). For each 2016 PSU Award, a number of restricted stock units became eligible to vest based on the levels of achievement of the performance-based conditions, and those restricted stock units that became eligible to vest will vest 50% on the first anniversary of the grant date and 50% on the second anniversary of the grant date, except as otherwise provided under certain termination and change-in-control provisions in each award agreement. The aggregate target number of restricted stock units subject to the 2016 PSU Awards was 1.0 million with an aggregate grant date fair value of $5.1 million . Upon the filing of the Company’s 2016 Form 10-K on March 6, 2017, an additional 0.2 million shares with a grant date fair value of $1.2 million became eligible to vest under the awards. The $6.3 million grant date fair value is being expensed over the two years vesting term using the accelerated attribution method. Option and restricted stock activity under the 2011 Equity Incentive Plan for the three months ended March 31, 2017 was as follows (shares in thousands): Options Outstanding Restricted Stock Shares and Units Number Weighted- Number December 31, 2016 10,406 7,495 $ 4.63 4,643 Additional shares reserved under the 2011 equity incentive plan 3,527 — — — Granted (190 ) 67 3.99 123 PSU Additional Goal Shares Achieved (243 ) — — 243 Options exercised/ Restricted stock released — (10 ) 5.45 (196 ) RSU shares withheld for taxes 26 — — 26 Canceled/Forfeited 215 (156 ) 6.45 (59 ) March 31, 2017 13,741 7,396 $ 4.58 4,780 The weighted average grant-date fair value of employee stock options granted during the three months ended March 31, 2017 and 2016 was $2.09 and $2.08 per share, respectively. The unamortized grant date fair value of both stock options and restricted stock awards totaled $19.2 million at March 31, 2017 . 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 3.4 million and 11.3 million shares for the three months ended March 31, 2017 and 2016, respectively. 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 12 -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, 2017, approximately 0.9 million additional shares were reserved under the ESPP pursuant to the plan's automatic increase provision. As of March 31, 2017 , 2.0 million total shares had been issued under the ESPP and 3.8 million shares were available for future issuance.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
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 2017 remain subject to examination by federal, state and foreign tax authorities. For the three months ended March 31, 2017 , the Company recorded income tax expense of $0.3 million . This amount primarily consists of income and withholding taxes for foreign and state jurisdictions where the Company has profitable operations, as well as valuation allowance adjustments for certain U.S. tax jurisdictions. No tax benefit was provided for losses incurred in United States 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, 2017 and December 31, 2016 , none of which, if recognized, would affect the Company’s effective tax rate.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events During the second quarter of 2017, the Company initiated several strategic changes across the organization intended to better align its cost structure with current business and market conditions, including a headcount reduction and the reduction of office space in two locations. The Company expects to complete the majority of these actions in the second and third quarters of 2017. The Company estimates total one-time costs related to these changes incurred during the second and third quarters of 2017 will be between $4.5 million and $5.2 million , including approximately $1.2 million of non-cash impairment charges for certain leasehold improvements and other property and equipment, approximately $3.0 million of cash charges relating to employee severance and other benefits and approximately $0.7 million of cash charges relating to facility lease costs.

Description of Business and B17

Description of Business and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	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, 2016 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, 2016 filed with the Securities and Exchange Commission ("SEC") on March 6, 2017. 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, 2016 , 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) which amended the existing FASB Accounting Standards Codification. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The standard also specifies that the incremental costs of obtaining a contract with a customer and the costs of fulfilling a contract with a customer (if those costs are not within the scope of another Topic or Sub-Topic) would be deferred and recognized over the appropriate period of contract performance if they are expected to be recovered. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The FASB recently issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method, also known as the cumulative catch-up transition method). The updates are effective for the Company for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for annual periods beginning after December 15, 2016. The Company continues to assess the impacts of the standard, and has not yet determined whether the standard will have a material impact on our consolidated financial statements. However, we currently believe the most significant impact is from the timing of recognition of sales commission expenses, which upon adoption will be recognized as costs over a period of time instead of immediately. We are also in the process of assessing the impact of the new standard on certain of our contracts that include performance-based fees. We currently recognize such fees in the period when the performance criteria have been met; however, under the new standard we would estimate the variable fees and recognize amounts for which it is probable that a significant reversal would not occur. For certain contracts, this could result in acceleration of recognition of the performance-based fees. We do not currently expect our recurring revenue management fees, based on a fixed percentage of overall sales value associated with the service contracts, to be significantly impacted by the new standard. We will adopt the standard in the first quarter of 2018 and preliminarily expect to use the modified prospective method. However, we are continuing to evaluate the impact of the standard, and our adoption method is subject to change. We expect to complete our assessment process, including impacts on our processes, systems and financial statement disclosures, by the end of the third quarter of 2017. In February 2016, the FASB issued ASU No. 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 continues to assess the impact of the adoption of this authoritative guidance on its consolidated financial statements.
Reclassifications	Reclassifications Amounts shown in Financing activities - Minimum tax withholding requirement in the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2016 have been reclassified from Operating activities - Prepaid expenses and other, to reflect the current period presentation as a result of the adoption of ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which requires shares withheld for employee taxes to be reclassified from operating activities to financing activities.
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. 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 and are available for use in the Company's daily operations. 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.
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.
Debt	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.
Commitments and Contingencies	The Company is subject to various legal proceedings and claims arising in the ordinary course of our business, including the cases discussed below. 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.
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 2017 remain subject to examination by federal, state and foreign tax authorities.

Cash, Cash Equivalents and Sh18

Cash, Cash Equivalents and Short-Term Investments (Tables)	3 Months Ended
	Mar. 31, 2017
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, 2017 and December 31, 2016 (in thousands): March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 49,835 $ — $ — $ 49,835 Cash equivalents: Money market mutual funds 510 — — 510 Total cash and cash equivalents 50,345 — — 50,345 Short-term investments: Corporate bonds 55,010 43 (139 ) 54,914 U.S. agency securities 34,653 1 (257 ) 34,397 Asset-backed securities 24,207 12 (27 ) 24,192 U.S. Treasury securities 25,462 1 (265 ) 25,198 Total short-term investments 139,332 57 (688 ) 138,701 Cash, cash equivalents and short-term investments $ 189,677 $ 57 $ (688 ) $ 189,046 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash $ 47,060 $ — $ — $ 47,060 Cash equivalents: Money market mutual funds 632 — — 632 Total cash and cash equivalents 47,692 — — 47,692 Short-term investments: Corporate bonds 54,827 19 (188 ) 54,658 U.S. agency securities 34,658 — (281 ) 34,377 Asset-backed securities 26,431 25 (23 ) 26,433 U.S. Treasury securities 22,701 — (288 ) 22,413 Total short-term investments 138,617 44 (780 ) 137,881 Cash, cash equivalents and short-term investments $ 186,309 $ 44 $ (780 ) $ 185,573
Summary of Cost and Estimated Fair Value of Short-Term Fixed Income Securities	The following table summarizes the amortized cost and estimated fair value of money market mutual funds and short-term fixed income securities classified as short-term investments based on stated maturities as of March 31, 2017 (in thousands): Amortized Cost Estimated Fair Value Less than 1 year $ 20,667 $ 20,656 Due in 1 to 3 years 119,175 118,555 Total $ 139,842 $ 139,211

Fair Value of Financial Instr19

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
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, 2017 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 $ 510 $ 510 $ — Total cash equivalents 510 510 — Short-term investments: Corporate bonds 54,914 — 54,914 U.S. agency securities 34,397 — 34,397 Asset-backed securities 24,192 — 24,192 U.S. Treasury securities 25,198 — 25,198 Total short-term investments 138,701 — 138,701 Cash equivalents and short-term investments $ 139,211 $ 510 $ 138,701 The following table presents information about the Company’s financial instruments that are measured at fair value as of December 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 $ 632 $ 632 $ — Total cash equivalents 632 632 — Short-term investments: Corporate bonds 54,658 — 54,658 U.S. agency securities 34,377 — 34,377 Asset-backed securities 26,433 — 26,433 U.S. Treasury securities 22,413 — 22,413 Total short-term investments 137,881 — 137,881 Cash equivalents and short-term investments $ 138,513 $ 632 $ 137,881

Other Assets, Net (Tables)

Other Assets, Net (Tables)	3 Months Ended
	Mar. 31, 2017
Other Assets, Noncurrent Disclosure [Abstract]
Schedule of Other Assets, Net	Other assets, net balances were comprised of the following (in thousands): March 31, December 31, Restricted Cash $ 1,244 $ 1,244 Long-term deposits and other 2,203 2,201 Total $ 3,447 $ 3,445

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
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 $ 938 Deferred Rent 795 1,359 ESPP Withholding 286 661 Total $ 1,456 $ 2,958

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2017
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, 2017 December 31, 2016 Principal amount $ 150,000 $ 150,000 Unamortized debt discount (11,878 ) (13,928 ) Unamortized debt issuance costs (1,106 ) (1,297 ) Net carrying amount $ 137,016 $ 134,775
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, 2017 2016 Contractual interest expense at 1.5% per annum $ 563 $ 563 Amortization of debt issuance costs 191 179 Accretion of debt discount 2,050 1,924 Total $ 2,804 $ 2,666

Share Repurchase Program, Sto23

Share Repurchase Program, Stock-Based Compensation and ESPP (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
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 2017 2016 Cost of revenue $ 291 $ 468 Sales and marketing 882 862 Research and development 99 197 General and administrative 1,946 1,332 Total stock-based compensation $ 3,218 $ 2,859
Summary of Option and Restricted Stock Activity	Option and restricted stock activity under the 2011 Equity Incentive Plan for the three months ended March 31, 2017 was as follows (shares in thousands): Options Outstanding Restricted Stock Shares and Units Number Weighted- Number December 31, 2016 10,406 7,495 $ 4.63 4,643 Additional shares reserved under the 2011 equity incentive plan 3,527 — — — Granted (190 ) 67 3.99 123 PSU Additional Goal Shares Achieved (243 ) — — 243 Options exercised/ Restricted stock released — (10 ) 5.45 (196 ) RSU shares withheld for taxes 26 — — 26 Canceled/Forfeited 215 (156 ) 6.45 (59 ) March 31, 2017 13,741 7,396 $ 4.58 4,780

Description of Business and B24

Description of Business and Basis of Presentation Description of Business and Basis of Presentation - Narrative (Details)	3 Months Ended
	Mar. 31, 2017language
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of languages	35
Years of operating experience	15 years

Cash, Cash Equivalents and Sh25

Cash, Cash Equivalents and Short-Term Investments - Summary of Cash and Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Total cash and cash equivalents, Amortized Cost	$ 50,345	$ 47,692	$ 61,394	$ 72,334
Total short-term investments, Amortized Cost	139,332	138,617
Total short-term investments, Unrealized Gains	57	44
Total short-term investments, Unrealized Losses	(688)	(780)
Total short-term investments, Estimated Fair Value	138,701	137,881
Cash, cash equivalents and short-term investments, Amortized Cost	189,677	186,309
Cash, cash equivalents and short-term investments, Unrealized Gains	57	44
Cash, cash equivalents and short-term investments, Unrealized Losses	(688)	(780)
Cash, cash equivalents and short-term investments, Estimated Fair Value	189,046	185,573
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Total short-term investments, Amortized Cost	55,010	54,827
Total short-term investments, Unrealized Gains	43	19
Total short-term investments, Unrealized Losses	(139)	(188)
Total short-term investments, Estimated Fair Value	54,914	54,658
U.S. agency securities
Schedule of Available-for-sale Securities [Line Items]
Total short-term investments, Amortized Cost	34,653	34,658
Total short-term investments, Unrealized Gains	1	0
Total short-term investments, Unrealized Losses	(257)	(281)
Total short-term investments, Estimated Fair Value	34,397	34,377
Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Total short-term investments, Amortized Cost	24,207	26,431
Total short-term investments, Unrealized Gains	12	25
Total short-term investments, Unrealized Losses	(27)	(23)
Total short-term investments, Estimated Fair Value	24,192	26,433
U.S. Treasury securities
Schedule of Available-for-sale Securities [Line Items]
Total short-term investments, Amortized Cost	25,462	22,701
Total short-term investments, Unrealized Gains	1	0
Total short-term investments, Unrealized Losses	(265)	(288)
Total short-term investments, Estimated Fair Value	25,198	22,413
Cash
Schedule of Available-for-sale Securities [Line Items]
Total cash and cash equivalents, Amortized Cost	49,835	47,060
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	49,835	47,060
Money market mutual funds
Schedule of Available-for-sale Securities [Line Items]
Total cash and cash equivalents, Amortized Cost	510	632
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	510	632
Total cash and cash equivalents
Schedule of Available-for-sale Securities [Line Items]
Total cash and cash equivalents, Amortized Cost	50,345	47,692
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	$ 50,345	$ 47,692

Cash, Cash Equivalents and Sh26

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, 2017USD ($)
Amortized Cost
Less than 1 year	$ 20,667
Due in 1 to 3 years	119,175
Total	139,842
Estimated Fair Value
Less than 1 year	20,656
Due in 1 to 3 years	118,555
Total	$ 139,211

Fair Value of Financial Instr27

Fair Value of Financial Instruments - Summary of Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Short-term investments:
Total short-term investments	$ 138,701	$ 137,881
Fair Value, Measurements, Recurring
Cash equivalents:
Total cash equivalents	510	632
Short-term investments:
Total short-term investments	138,701	137,881
Cash equivalents and short-term investments	139,211	138,513
Fair Value, Measurements, Recurring | Money market mutual funds
Cash equivalents:
Total cash equivalents	510	632
Fair Value, Measurements, Recurring | Corporate bonds
Short-term investments:
Total short-term investments	54,914	54,658
Fair Value, Measurements, Recurring | U.S. agency securities
Short-term investments:
Total short-term investments	34,397	34,377
Fair Value, Measurements, Recurring | Asset-backed securities
Short-term investments:
Total short-term investments	24,192	26,433
Fair Value, Measurements, Recurring | U.S. Treasury securities
Short-term investments:
Total short-term investments	25,198	22,413
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Cash equivalents:
Total cash equivalents	510	632
Short-term investments:
Total short-term investments	0	0
Cash equivalents and short-term investments	510	632
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market mutual funds
Cash equivalents:
Total cash equivalents	510	632
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	138,701	137,881
Cash equivalents and short-term investments	138,701	137,881
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	54,914	54,658
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. agency securities
Short-term investments:
Total short-term investments	34,397	34,377
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities
Short-term investments:
Total short-term investments	24,192	26,433
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities
Short-term investments:
Total short-term investments	$ 25,198	$ 22,413

Fair Value of Financial Instr28

Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
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	$ 144.8	$ 143.8
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 Assets, Net - Schedule of

Other Assets, Net - Schedule of Other Assets, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Other Assets, Noncurrent Disclosure [Abstract]
Restricted Cash	$ 1,244	$ 1,244
Long-term deposits and other	2,203	2,201
Total	$ 3,447	$ 3,445

Other Assets, Net - Narrative (

Other Assets, Net - Narrative (Details) - Letter of Credit $ in Millions	Feb. 03, 2015USD ($)
Debt Instrument [Line Items]
Letter of credit	$ 1.2
Letter of credit, collateral	$ 1.2

Other Current Liabilities - Sch

Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued Interest - Convertible Notes	$ 375	$ 938
Deferred Rent	795	1,359
ESPP Withholding	286	661
Total	$ 1,456	$ 2,958

Debt - Narrative (Details)

Debt - Narrative (Details) $ / shares in Units, shares in Thousands	1 Months Ended
	Aug. 31, 2013USD ($)d$ / sharesshares	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
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	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	98.00%
Threshold business days	5 days
Cash repurchase price (as a percent)	100.00%
Minimum percent held in principal amount of outstanding notes to declare all notes to be due and payable	25.00%
Debt	$ 111,500,000	$ 137,016,000	$ 134,775,000
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 | Other Assets
Debt Instrument [Line Items]
Debt component of transaction costs, gross	3,600,000
Senior Convertible Notes | Additional Paid-in Capital
Debt Instrument [Line Items]
Transaction costs, additional paid in capital	$ 1,300,000
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	130.00%

Debt - Schedule of Net Carrying

Debt - Schedule of Net Carrying Amount of Liability Component (Details) - Senior Convertible Notes - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Aug. 31, 2013
Liability Component
Principal amount	$ 150,000	$ 150,000
Unamortized debt discount	(11,878)	(13,928)
Unamortized debt issuance costs	(1,106)	(1,297)
Net carrying amount	$ 137,016	$ 134,775	$ 111,500

Debt - Schedule of Interest Exp

Debt - Schedule of Interest Expense on Notes Recognized (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Aug. 31, 2013
Interest Expense
Total	$ 2,070	$ 1,509
Senior Convertible Notes
Interest Expense
Interest rate	1.50%		1.50%
Contractual interest expense at 1.5% per annum	$ 563	563
Amortization of debt issuance costs	191	179
Accretion of debt discount	2,050	1,924
Total	$ 2,804	$ 2,666

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Millions	Aug. 23, 2016plaintiff	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)
Operating Leased Assets [Line Items]
Operating lease payment of non-cancelable agreement expiration period		through November 30, 2022
Rent expense		$ 2.8	$ 2.6
Loss contingency accrual		$ 1.5
Sarah Patton, et al v. ServiceSource Delaware, Inc | Pending Litigation
Operating Leased Assets [Line Items]
Number of plaintiffs | plaintiff	3

Share Repurchase Program, Sto36

Share Repurchase Program, Stock-Based Compensation and ESPP - Narrative (Details) - USD ($)	Mar. 06, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Jan. 01, 2016	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		$ 19,900,000
Stock repurchased during period (in shares)		0
Capitalized stock-based compensation related to internal-use software		$ 100,000	$ 200,000
Performance-based restricted stock units granted, fair value		$ 6,300,000
Weighted average grant-date fair value of stock options granted (in dollars per share)		$ 2.09	$ 2.08
Grant date fair value		$ 19,200,000
Antidilutive shares excluded from diluted earnings per share calculation (in shares)		3,400,000	11,300,000
Percentage of payroll deductions (up to)		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		12 months
Shares issued (in shares)		2,000,000
Shares available for future issuance (in shares)		13,741,000		10,406,000
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)		1,500,000
Percentage of outstanding shares		1.00%
Shares available for future issuance (in shares)		3,800,000			900,000
Stock Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service period		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		4 years
Performance Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award, award vesting period		2 years
Performance-based restricted stock units subject for PSU award (in shares)	200,000	1,000,000
Performance-based restricted stock units granted, fair value	$ 1,200,000	$ 5,100,000
Year One | Performance Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage		50.00%
Year Two | Performance Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage		50.00%

Share Repurchase Program, Sto37

Share Repurchase Program, Stock-Based Compensation and ESPP - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 3,218	$ 2,859
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	291	468
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	882	862
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	99	197
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,946	$ 1,332

Share Repurchase Program, Sto38

Share Repurchase Program, Stock-Based Compensation and ESPP - Summary of Option and Restricted Stock Activity (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Options Outstanding, Number of Shares
Shares and Units Available for Grant, Beginning balance (in shares)	10,406
Additional shares reserved under the 2011 equity incentive plan (in shares)	3,527
Shares and units available for grant, granted (in shares)	(190)
Shares and Units Available for Grant, PSU Additional Goal Shares Achieved (in shares)	(243)
Shares and Units Available for Grant, Options exercised/ Restricted stock released (in shares)	0
Shares and Units Available for Grant, RSU shares withheld for taxes (in shares)	26
Shares and Units Available for Grant, Options Outstanding, Number of Shares (in shares)	0
Shares and Units Available for Grant, Canceled/Forfeited (in shares)	215
Shares and Units Available for Grant, Ending balance (in shares)	13,741
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 (in shares)	7,495
Additional shares reserved under the 2011 equity incentive plan (in shares)	0
Options Outstanding, Number of Shares, Granted (in shares)	67
Options Outstanding, Number of Shares, PSU Additional Goal Shares Achieved (in shares)	0
Options Outstanding, Number of Shares, Options exercised/ Restricted stock released (in shares)	(10)
Options Outstanding, Number of Shares, Canceled /Forfeited (in shares)	(156)
Options Outstanding, Number of Shares, Ending Balance (in shares)	7,396
Options Outstanding, Options, Weighted Average Exercise Price
Options Outstanding, Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ / shares	$ 4.63
Options Outstanding, Weighted Average Exercise Price, Granted (in dollars per share) | $ / shares	3.99
Options Outstanding, Weighted Average Exercise Price, Options exercised/ Restricted stock released (in dollars per share) | $ / shares	5.45
Options Outstanding, Weighted Average Exercise Price, Canceled/Forfeited (in dollars per share) | $ / shares	6.45
Options Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ / shares	$ 4.58
Restricted Stock Outstanding
Options Outstanding, Number of Shares
Restricted Stock Outstanding Number of Shares, Beginning balance (in shares)	4,643
Additional shares reserved under the 2011 equity incentive plan (in shares)	0
Restricted Stock Outstanding Number of Shares, Granted (in shares)	123
Restricted Stock Outstanding, Number of Shares, PSU Additional Goal Shares Achieved (in shares)	243
Restricted Stock Outstanding Number of Shares, Options exercised/ Restricted stock released (in shares)	(196)
Shares and Units Available for Grant, Restricted Stock Outstanding, Number of Shares (in shares)	26
Restricted Stock Outstanding Number of Shares, Canceled /Forfeited (in shares)	(59)
Restricted Stock Outstanding Number of Shares, Ending balance (in shares)	4,780

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income tax provision	$ 290	$ 1,288
Unrecognized tax benefits	$ 900		$ 900

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event	1 Months Ended
	May 08, 2017USD ($)location
Subsequent Event [Line Items]
Number of locations | location	2
Asset Impairment Charges
Subsequent Event [Line Items]
Expected costs	$ 1,200,000
Employee Severance
Subsequent Event [Line Items]
Expected costs	3,000,000
Facility Closing
Subsequent Event [Line Items]
Expected costs	700,000
Minimum
Subsequent Event [Line Items]
Expected costs	4,500,000
Maximum
Subsequent Event [Line Items]
Expected costs	$ 5,200,000