Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'SREV | ' |
Entity Registrant Name | 'SERVICESOURCE INTERNATIONAL, INC. | ' |
Entity Central Index Key | '0001310114 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 81,095,945 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $174,674 | $76,568 |
Short-term investments | 103,604 | 32,874 |
Accounts receivable, net | 63,889 | 65,238 |
Deferred income taxes | 286 | 389 |
Prepaid expenses and other | 5,245 | 5,178 |
Total current assets | 347,698 | 180,247 |
Property and equipment, net | 28,150 | 34,513 |
Deferred debt issuance costs, net | 3,535 | 71 |
Deferred income taxes, net of current portion | 1,921 | 2,321 |
Other assets, net | 761 | 986 |
Goodwill | 6,334 | 6,334 |
Total assets | 388,399 | 224,472 |
Current liabilities: | ' | ' |
Accounts payable | 5,698 | 3,293 |
Accrued taxes | 2,168 | 1,056 |
Accrued compensation and benefits | 16,988 | 15,738 |
Accrued liabilities and other | 12,932 | 10,403 |
Obligations under capital leases | 333 | 326 |
Total current liabilities | 38,119 | 30,816 |
Convertible notes, net | 112,302 | 0 |
Obligations under capital leases, net of current portion | 398 | 638 |
Other long-term liabilities | 4,692 | 6,091 |
Total liabilities | 155,511 | 37,545 |
Commitments and contingencies (Note 7) | ' | ' |
Stockholders’ equity: | ' | ' |
Common stock; $0.0001 par value; 1,000,000 shares authorized; 81,072 shares issued and 80,951 shares outstanding as of September 30, 2013; 75,758 shares issued and 75,637 shares outstanding as of December 31, 2012 | 8 | 8 |
Treasury stock | -441 | -441 |
Additional paid-in capital | 277,309 | 210,650 |
Accumulated deficit | -44,261 | -23,398 |
Accumulated other comprehensive income | 273 | 108 |
Total stockholders’ equity | 232,888 | 186,927 |
Total liabilities and stockholders’ equity | $388,399 | $224,472 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 81,072,000 | 75,758,000 |
Common stock, shares outstanding | 80,951,000 | 75,637,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net revenue | $66,482 | $59,090 | $195,300 | $176,358 |
Cost of revenue | 39,730 | 34,544 | 116,848 | 101,002 |
Gross profit | 26,752 | 24,546 | 78,452 | 75,356 |
Operating expenses: | ' | ' | ' | ' |
Sales and marketing | 13,731 | 13,512 | 43,906 | 41,158 |
Research and development | 5,500 | 4,416 | 18,542 | 13,295 |
General and administrative | 11,177 | 10,000 | 33,182 | 30,639 |
Total operating expenses | 30,408 | 27,928 | 95,630 | 85,092 |
Loss from operations | -3,656 | -3,382 | -17,178 | -9,736 |
Interest expense | -1,272 | -70 | -1,376 | -180 |
Other, net | 179 | 190 | -119 | -124 |
Loss before income taxes | -4,749 | -3,262 | -18,673 | -10,040 |
Income tax provision | 753 | 322 | 2,190 | 31,589 |
Net loss | ($5,502) | ($3,584) | ($20,863) | ($41,629) |
Net loss per share, basic and diluted (in dollars per share) | ($0.07) | ($0.05) | ($0.27) | ($0.56) |
Weighted average common shares outstanding, basic and diluted (in shares) | 79,740 | 74,667 | 77,557 | 73,994 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss | ($5,502) | ($3,584) | ($20,863) | ($41,629) |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | -180 | -119 | 32 | -192 |
Unrealized gain on short-term investments, net of tax | 254 | -36 | 134 | -10 |
Other comprehensive income, net of tax | 74 | -155 | 166 | -202 |
Total comprehensive loss, net of tax | ($5,428) | ($3,739) | ($20,697) | ($41,831) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' |
Net loss | ($20,863) | ($41,629) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 9,010 | 7,092 |
Amortization of debt discount and issuance costs | 960 | 135 |
Accretion of premium on short-term investments | 569 | 577 |
Deferred income taxes | 504 | 32,534 |
Stock-based compensation | 17,301 | 15,260 |
Income tax charge (benefit) from stock-based compensation | 249 | -266 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | 1,527 | -4,237 |
Prepaid expenses and other | -174 | 734 |
Accounts payable | 2,581 | -1,087 |
Accrued taxes | 1,110 | 85 |
Accrued compensation and benefits | 1,227 | -5,094 |
Accrued liabilities and other | 763 | 5,050 |
Net cash provided by operating activities | 14,764 | 9,154 |
Cash flows from investing activities | ' | ' |
Acquisition of property and equipment | -3,108 | -17,049 |
Purchases of short-term investments | -78,502 | -31,100 |
Sales of short-term investments | 5,336 | 52,050 |
Maturities of short-term investments | 2,000 | 21,415 |
Net cash used in (provided by) investing activities | -74,274 | 25,316 |
Cash flows from financing activities | ' | ' |
Proceeds from issuance of convertible notes | 150,000 | 0 |
Issuance costs related to the issuance of convertible senior notes | -4,350 | 0 |
Payments of convertible note hedges | -31,408 | 0 |
Proceeds from the issuance of warrants | 21,763 | 0 |
Repayment on capital leases obligations | -245 | -234 |
Proceeds from common stock issuances | 21,969 | 10,279 |
Income tax charge (benefit) from stock-based compensation | -249 | 266 |
Net cash provided by financing activities | 157,480 | 10,311 |
Net increase in cash and cash equivalents | 97,970 | 44,781 |
Effect of exchange rate changes on cash and cash equivalents | 136 | -487 |
Cash and cash equivalents at beginning of period | 76,568 | 65,983 |
Cash and cash equivalents at end of period | $174,674 | $110,277 |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
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 recurring revenue management, partnering with technology and technology-enabled companies to optimize maintenance, support and subscription revenue streams, while also improving customer relationships and loyalty. The Company delivers these results via a cloud-based solution, with dedicated service teams, leveraging benchmarks and best practices derived from their rich database of service and renewal behavior. By integrating software, managed services and data, the Company provides end-to-end management and optimization of the service-contract renewals process, including data management, quoting, selling and recurring revenue business intelligence. The Company receives commissions from its customers based on renewal sales that the Company generates on their behalf under a pay-for-performance model. In addition, the Company recently began to offer a purpose-built Software-As-A-Service (SaaS) application to maximize the renewal of subscriptions, maintenance and support contracts. The Company’s corporate headquarters are located in San Francisco, California. The Company has offices in Colorado, Tennessee, the United Kingdom, Ireland, Malaysia and Singapore. | |
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, rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements, and accounting policies, consistent in all material respects with those applied in preparing our audited annual consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012. 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, 2012, 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 our financial position, operating results, and cash flows for the interim periods presented. The results for the interim periods are not necessarily indicative of results for the entire year. | |
The December 31, 2012 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes for the year ended December 31, 2012 included in the Company’s Annual Report on Form 10-K. | |
Recent Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-2 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU No. 2013-2 requires an entity to disaggregate the total change of each component of other comprehensive income either on the face of the income statement or as a separate disclosure in the notes. The new guidance became effective for the Company’s interim period ended March 31, 2013. The Company adopted this guidance and the adoption did not have any impact on its financial position, results of operations or cash flows as the amounts reclassified out of accumulated other comprehensive income is not material. | |
In June 2013, the FASB determined that an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward or other tax credit carryforward when settlement in this manner is available under applicable tax law. This guidance is effective for the Company’s interim and annual periods beginning January 1, 2014. The Company does not believe the adoption of this guidance will have a material impact on its consolidated financial statements. |
Cash_cash_equivalents_and_shor
Cash, cash equivalents and short-term investments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
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. These marketable securities are carried at fair value, with the unrealized gains and losses, net of tax, reported as accumulated other comprehensive income and included as a separate component of stockholders’ equity. Gains and losses are recognized when realized. When the Company determines that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in earnings. Gains and losses are determined using the specific identification method. The Company’s realized gains and losses in the three and nine months ended September 30, 2013 and 2012 were insignificant. | ||||||||||||||||
Cash and cash equivalents and short-term investments consisted of the following as of September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Cash | $ | 31,706 | $ | — | $ | — | $ | 31,706 | ||||||||
Cash equivalents: | ||||||||||||||||
Money market mutual funds | 142,968 | — | — | 142,968 | ||||||||||||
Total cash and cash equivalents | 174,674 | — | — | 174,674 | ||||||||||||
Short-term investments: | ||||||||||||||||
Corporate bonds | 39,518 | 57 | (20 | ) | 39,555 | |||||||||||
U.S. agency securities | 32,235 | 45 | (6 | ) | 32,274 | |||||||||||
Asset-backed securities | 13,968 | 9 | (20 | ) | 13,957 | |||||||||||
U.S. Treasury securities | 17,760 | 58 | — | 17,818 | ||||||||||||
Total short-term investments | 103,481 | 169 | (46 | ) | 103,604 | |||||||||||
Cash, cash equivalents and short-term investments | $ | 278,155 | $ | 169 | $ | (46 | ) | $ | 278,278 | |||||||
December 31, 2012 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Cash | $ | 59,568 | $ | — | $ | — | $ | 59,568 | ||||||||
Cash equivalents: | ||||||||||||||||
Money market mutual funds | 17,000 | — | — | 17,000 | ||||||||||||
Total cash and cash equivalents | 76,568 | — | — | 76,568 | ||||||||||||
Short-term investments: | ||||||||||||||||
Corporate bonds | 13,389 | 2 | (14 | ) | 13,377 | |||||||||||
U.S. agency securities | 11,280 | 4 | (1 | ) | 11,283 | |||||||||||
Asset-backed securities | 4,670 | 1 | (5 | ) | 4,666 | |||||||||||
U.S. Treasury securities | 3,546 | 2 | — | 3,548 | ||||||||||||
Total short-term investments | 32,885 | 9 | (20 | ) | 32,874 | |||||||||||
Cash, cash equivalents and short-term investments | $ | 109,453 | $ | 9 | $ | (20 | ) | $ | 109,442 | |||||||
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 September 30, 2013: | ||||||||||||||||
Amortized | Estimated | |||||||||||||||
Cost | Fair Value | |||||||||||||||
Less than 1 year | $ | 8,828 | $ | 8,834 | ||||||||||||
Due in 1 to 5 years | 94,653 | 94,770 | ||||||||||||||
Total | $ | 103,481 | $ | 103,604 | ||||||||||||
As of September 30, 2013, the Company did not consider any of its investments to be other-than-temporarily impaired. |
Fair_value_of_financial_instru
Fair value of financial instruments | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
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 September 30, 2013 and indicates the fair value hierarchy of the valuation (in thousands): | ||||||||||||
Total | Quoted Prices | Significant | ||||||||||
in Active | Other | |||||||||||
Markets for | Observable | |||||||||||
Identical | Inputs | |||||||||||
Assets | (Level 2) | |||||||||||
(Level 1) | ||||||||||||
Description | ||||||||||||
Cash equivalents: | ||||||||||||
Money market mutual funds | $ | 142,968 | $ | 142,968 | $ | — | ||||||
Total cash equivalents | 142,968 | 142,968 | — | |||||||||
Short-term investments: | ||||||||||||
Corporate bonds | 39,555 | — | 39,555 | |||||||||
U.S. agency securities | 32,274 | — | 32,274 | |||||||||
Asset-backed securities | 13,957 | — | 13,957 | |||||||||
U.S. Treasury securities | 17,818 | — | 17,818 | |||||||||
Total short-term investments | 103,604 | — | 103,604 | |||||||||
Cash equivalents and short-term investments | $ | 246,572 | $ | 142,968 | $ | 103,604 | ||||||
The following table presents information about the Company’s financial instruments that are measured at fair value as of December 31, 2012 and indicates the fair value hierarchy of the valuation (in thousands): | ||||||||||||
Total | Quoted Prices | Significant | ||||||||||
in Active | Other | |||||||||||
Markets for | Observable | |||||||||||
Identical | Inputs | |||||||||||
Assets | (Level 2) | |||||||||||
(Level 1) | ||||||||||||
Description | ||||||||||||
Cash equivalents: | ||||||||||||
Money market mutual funds | $ | 17,000 | $ | 17,000 | $ | — | ||||||
Total cash equivalents | 17,000 | 17,000 | — | |||||||||
Short-term investments: | ||||||||||||
Corporate bonds | 13,377 | — | 13,377 | |||||||||
U.S. agency securities | 11,283 | — | 11,283 | |||||||||
Asset-backed securities | 4,666 | — | 4,666 | |||||||||
U.S. Treasury securities | 3,548 | — | 3,548 | |||||||||
Total short-term investments | 32,874 | — | 32,874 | |||||||||
Cash equivalents and short-term investments | $ | 49,874 | $ | 17,000 | $ | 32,874 | ||||||
The convertible notes issued by the Company in August 2013 are shown in the accompanying consolidated balance sheets at their original issuance value, net of unamortized discount, and are not marked to market each period. The fair value of the convertible notes approximates the notes carrying value as of September 30, 2013. 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 financial liabilities measured at fair value as of December 31, 2012. |
Property_and_Equipment_Net
Property and Equipment, Net | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment, Net | ' | |||||||
Property and Equipment, Net | ||||||||
Property and equipment balances were comprised of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Computers and equipment | $ | 16,672 | $ | 14,733 | ||||
Software | 33,603 | 32,982 | ||||||
Furniture and fixtures | 8,670 | 8,555 | ||||||
Leasehold improvements | 10,911 | 10,801 | ||||||
69,856 | 67,071 | |||||||
Less: accumulated depreciation and amortization | (41,706 | ) | (32,558 | ) | ||||
Property and equipment – net | $ | 28,150 | $ | 34,513 | ||||
Depreciation and amortization expense during the three and nine months ended September 30, 2013 and the three and nine months ended September 30, 2012, was $3.0 million, $9.0 million, $2.5 million and $7.1 million respectively. | ||||||||
Total property and equipment assets under capital lease at September 30, 2013 and December 31, 2012, was $3.2 million and $3.2 million, respectively. Accumulated depreciation related to assets under capital lease as of these dates were $2.5 million and $2.1 million, respectively. | ||||||||
The Company capitalized internal-use software development costs of $0 and $1.5 million during the three months ended September 30, 2013 and 2012, respectively and $0 and $6.6 million during the nine months ended September 30, 2013 and 2012, respectively. As of September 30, 2013 and December 31, 2012, the net value of capitalized costs related to internal-use software, net of accumulated amortization, was $9.8 million and $13.6 million, respectively. Amortization of capitalized costs related to internal-use software for the three months ended September 30, 2013 and 2012 was $1.3 million and $0.8 million, respectively, and for the nine months ended September 30, 2013 and 2012 was $3.8 million and $2.1 million, respectively. |
Accrued_Liabilities_and_Other
Accrued Liabilities and Other | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Liabilities and Other | ' | |||||||
Accrued Liabilities and Other | ||||||||
Accrued liabilities and other balances were comprised of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Deferred revenue | $ | 4,519 | $ | 2,295 | ||||
Accrued operating expenses | 3,128 | 3,664 | ||||||
Deferred rent obligations | 861 | 986 | ||||||
Other employee related | 482 | 323 | ||||||
Accrued other (includes ESPP contributions of $330 and $1,059 at September 30, 2013 and December 31, 2012, respectively) | 3,942 | 3,135 | ||||||
$ | 12,932 | $ | 10,403 | |||||
Credit_Facility_and_Capital_Le
Credit Facility and Capital Leases | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Debt Disclosure [Abstract] | ' | |||
Credit Facility and Capital Leases | ' | |||
Credit Facility and Capital Leases | ||||
Revolving Credit Facility | ||||
On July 5, 2012, the Company, entered into a three-year credit agreement which provides for a secured revolving line of credit based on eligible accounts receivable of up to $25.0 million on and before July 5, 2013 and up to $30.0 million thereafter, in each case with a $2.0 million letter of credit sublimit. On June 18, 2013, the Company elected to maintain the revolving commitment at $25.0 million rather than have it increase to $30.0 million on July 5, 2013. Proceeds available under the credit agreement may be used for working capital and other general corporate purposes. The Company may prepay borrowing under the agreement in whole or in part at any time without premium or penalty. The Company may terminate the commitments under the credit agreement in whole at any time, and may reduce the commitments by up to $10.0 million between July 1, 2013 and June 30, 2014. On June 30, 2013, the Company amended the credit agreement to reduce the quarterly commitment fee, payable in arrears, based on the available commitments from the existing 0.45% rate to 0.30%. | ||||
On August 6, 2013, the Company entered into a second amendment ("Amendment No. 2") to the credit agreement. Amendment No. 2, among other things, allowed the Company to issue certain unsecured convertible notes and enter into related agreements. | ||||
Amounts outstanding on the facility at September 30, 2013 consisted of a letter of credit for $575,000 required under an operating lease agreement for office space at the Company’s San Francisco headquarters. The loans bear interest, at the Company’s option, at a base rate determined in accordance with the credit agreement, minus 0.5%, or at a LIBOR rate plus 2.0%. Principal, together with all accrued and unpaid interest, is due and payable on July 5, 2015, the maturity date. The Company is also obligated to pay a quarterly commitment fee, payable in arrears, based on the available commitments at a rate of 0.30%. At September 30, 2013, the interest rate for borrowings under the facility was 2.2%. | ||||
The credit agreement contains customary affirmative and negative covenants, as well as financial covenants. Affirmative covenants include, among others, delivery of financial statements, compliance certificates and notices of specified events, maintenance of properties and insurance, preservation of existence, and compliance with applicable laws and regulations. Negative covenants include, among others, limitations on the ability of the Company to grant liens, incur indebtedness, engage in mergers, consolidations, sales of assets and affiliate transactions. The credit agreement requires the Company to maintain a maximum leverage ratio and a minimum liquidity amount, each as defined in the credit agreement. | ||||
The credit agreement also contains customary events of default including, among other things, payment defaults, breaches of covenants or representations and warranties, cross-defaults with certain other indebtedness, bankruptcy and insolvency events and a change in control of the Company, subject to grace periods in certain instances. Upon an event of default, the lender may declare the outstanding obligations of the Company under the credit agreement to be immediately due and payable and exercise other rights and remedies provided for under the credit agreement. | ||||
The Company’s obligations under the credit agreement are guaranteed by its subsidiary, ServiceSource Delaware, Inc. (the “Guarantor”) and are collateralized by substantially all of the assets of the Company and the Guarantor. | ||||
Effective June 29, 2012, the Company terminated a $20.0 million credit facility. At the time of the termination, no borrowings were outstanding other than a letter of credit in the face amount of $850,000. | ||||
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 2.6% and 3.8% at September 30, 2013 and 2012, respectively. | ||||
Future minimum annual payments under capital lease obligations as of September 30, 2013 were as follows (in thousands): | ||||
September 30, | ||||
2013 | ||||
Years Ending | ||||
2013 (remaining three months) | $ | 82 | ||
2014 | 269 | |||
2015 | 76 | |||
2016 | 78 | |||
2017 | 80 | |||
Thereafter | 146 | |||
Total | $ | 731 | ||
Debt
Debt | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Debt Disclosure [Abstract] | ' | |||
Debt | ' | |||
Debt | ||||
Senior Convertible Notes | ||||
In August 2013, the Company issued senior convertible notes (the "Notes") raising gross proceeds of $150 million. | ||||
The Notes are governed by an Indenture, dated August 13, 2013 (the "Indenture"), between the Company and Wells Fargo Bank, National Association, as trustee. The Notes will mature on August 1, 2018, unless earlier repurchased or converted, and bear interest at a rate of 1.50% per year payable semi-annually in arrears on February 1 and August 1 of each year, commencing February 1, 2014. | ||||
The Notes are convertible at an initial conversion rate of 61.6770 of common stock per $1,000 principal amount of Notes, which represents an initial conversion price of approximately $16.21 per share of common stock, subject to anti-dilution adjustments upon certain specified events, including in certain circumstances, upon a make-whole fundamental change (as defined in the Indenture). Upon conversion, the Notes will be settled in cash, shares of the Company’s common stock, or any combination thereof, at the Company’s option. | ||||
Prior to February 1, 2018, the Notes are convertible only upon the following circumstances: | ||||
• | during any calendar quarter commencing after December 31, 2013, (and only during such calendar quarter), if for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter, the last reported sale price of common stock on such trading day is greater than or equal to 130% of the applicable conversion price on such trading day. | |||
• | during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each trading day of that five consecutive trading day period was less than 98% of the product of the last reported sale price of common stock and the applicable conversion rate on each such trading day; or | |||
•upon the occurrence of specified corporate events described in the Indenture. | ||||
Holders of the Notes may convert their Notes at anytime on or after February 1, 2018, until the close of business on the second schedule trading day immediately preceding the maturity date, regardless of the foregoing circumstances. | ||||
The holders of the Notes may require the Company to repurchase all or a portion of their Notes at a cash repurchase price equal to 100% of the principal amount of the Notes being repurchased, plus accrued and unpaid interest, if any, upon a fundamental change (as defined in the Indenture). In addition, upon certain events of default (as defined in the Indenture), the trustee by notice to the Company, or the holders of at least 25% in principal amount of the outstanding Notes by notice to the Company and the trustee, may, and the trustee at the request of such holders shall, declare 100% of the principal amount of the Notes, plus accrued and unpaid interest, if any, on all the Notes to be due and payable. In case of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal of and accrued and unpaid interest on the Notes will automatically become due and payable. | ||||
To account for the Notes at issuance, the Company separated the Notes into debt and equity components pursuant to the accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion. The fair value of debt component was estimated using an interest rate for nonconvertible debt, with terms similar to the Notes, excluding the conversion feature. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The excess of the principal amount of the Notes over the fair value of the debt component was recorded as a debt discount and a corresponding increase in additional paid-in capital. The debt discount is accreted to interest expense over the term of the Notes using the interest method. The amount recorded to additional paid-in capital is not to be remeasured as long as it continues to meet the conditions of equity classification. Upon issuance of the $150.0 million of Notes, the Company recorded $111.5 million to debt and $38.5 million to additional paid-in capital. | ||||
The Company incurred transaction costs of approximately $4.9 million related to the issuance of the Notes. In accounting for these costs, the Company allocated the costs to the debt and equity components in proportion to the allocation of proceeds from the issuance of the Notes to such components. Transaction costs allocated to the debt component of $3.6 million are deferred as an asset and amortized to interest expense over the term of the Notes. The transaction costs allocated to the equity component of $1.3 million were recorded to additional paid-in capital. The transactions costs allocated to the debt component were recorded as deferred offering costs in other non-current assets. | ||||
The net carrying amount of the liability component of the Notes as of September 30, 2013 consists of the following (in thousands): | ||||
Principal amount | $ | 150,000 | ||
Unamortized debt discount | (37,698 | ) | ||
Net carrying amount | $ | 112,302 | ||
The following table presents the interest expense recognized related to the Notes for the three months ended September 30, 2013 (in thousands): | ||||
Contractual interest expense at 1.5% per annum | $ | 296 | ||
Amortization of debt issuance costs | 79 | |||
Accretion of debt discount | 845 | |||
Total | $ | 1,220 | ||
The net proceeds from the Notes were approximately $145.1 million after payment of the initial purchasers' offering expense. The Company used approximately $31.4 million of the net proceeds from the Notes to pay the cost of the Note Hedges described below, which was partially offset by $21.8 million of the proceeds from the Company's sale of the Warrants also described below. | ||||
Note Hedges | ||||
Concurrent with the issuance of the Notes, the Company entered into note hedges ("Note Hedges") with certain bank counterparties, with respect to its common stock. The Company paid $31.4 million for the Note Hedges. The Note Hedges cover approximately 9.25 million shares of the Company's common stock at a strike price of $16.21 per share. The Note Hedges will expire upon the maturity of the Notes. The Note Hedges are intended to reduce the potential dilution to the Company's common stock upon conversion of the Notes and/or offset the cash payment in excess of the principal amount of the Notes the Company is required to make in the event that the market value per share of the Company's common stock at the time of exercise is greater than the conversion price of the Notes. | ||||
Warrants | ||||
Separately, the Company entered into warrant transactions, whereby it sold warrants to the same bank counterparties as the Note Hedges to acquire approximately 9.25 million shares of the Company's common stock at an initial strike price of $21.02 per share ("Warrants"), subject to anti-dilution adjustments. The Company received proceeds of approximately $21.8 million from the sale of the Warrants. If the fair value per share of the Company's common stock exceeds the strike price of the Warrants, the Warrants will have a dilutive effect on earnings per share, unless the Company elects, subject to certain conditions, to settle the Warrants in cash. | ||||
The amounts paid and received for the Note Hedges and the Warrants have been recorded in additional paid-in capital. The fair value of the Note Hedges and the Warrants are not remeasured through earnings each reporting period. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||
Sep. 30, 2013 | ||||
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 September 30, 2022. Rent expense for the three months ended September 30, 2013 and 2012 was $2.0 million and $2.1 million, respectively, and for the nine months ended September 30, 2013 and 2012 was $6.4 million and $6.4 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. | ||||
Future annual minimum lease payments under all noncancelable operating leases as of September 30, 2013 were as follows (in thousands): | ||||
30-Sep-13 | ||||
Years Ending December 31, | ||||
2013 (remaining three months). | $ | 2,301 | ||
2014 | 8,188 | |||
2015 | 6,183 | |||
2016 | 4,374 | |||
2017 | 4,093 | |||
Thereafter | 12,526 | |||
Total | $ | 37,665 | ||
Other Contractual Obligations | ||||
In August 2013, the Company issued the Notes raising gross proceeds of $150.0 million. The Notes will mature on August 1, 2018, earlier repurchased or converted, and bear interest at a rate of 1.50% per year payable semi-annually in arrears on February 1 and August 1 of each year, commencing February 1, 2014. | ||||
Litigation | ||||
The Company may be subject to litigation or other claims in the normal course of business. In the opinion of management, the Company’s ultimate liability, if any, related to any currently pending or threatened litigation or claims would not materially affect its consolidated financial position, results of operations or cash flows. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stockholders' Equity | ' | |||||||||||||||
Stockholders’ Equity | ||||||||||||||||
Stock Option Plans | ||||||||||||||||
The Company maintains the following stock plans: the 2011 Equity Incentive Plan (the “2011 Plan”), and the 2011 Employee Stock Purchase Plan. The Company’s board of directors and, as delegated to its compensation committee, administers the 2011 Plan and has authority to determine the directors, officers, employees and consultants to whom options or restricted stock may be granted, the option price or restricted stock purchase price, the timing of when each share is exercisable and the duration of the exercise period and the nature of any restrictions or vesting periods applicable to an option or restricted stock grant | ||||||||||||||||
Under the 2011 Plan, options granted are generally subject to a four-year vesting period whereby options become 25% vested after a one-year period and the remainder then vests monthly through the end of the vesting period. Vested options may be exercised up to ten years from the vesting commencement date, as defined in the 2011 Plan. Vested but unexercised options expire three months after termination of employment with the Company. The restricted stock units typically vest over four years with a yearly cliff contingent upon employment with the Company on the applicable vesting dates. | ||||||||||||||||
The Company has elected to recognize the compensation cost of all stock-based awards on a straight-line basis over the vesting period of the award. Further, the Company applies an estimated forfeiture rate to unvested awards when computing the share compensation expenses. The Company estimates the forfeiture rate for unvested awards based on its historical experience on employee turnover behavior and other factors. | ||||||||||||||||
At the end of each fiscal year, the share reserve under the 2011 Plan increases automatically by an amount equal to 4% of the outstanding shares as of the end of that most recently completed fiscal year or 3,840,000 shares, whichever is less. On January 1, 2013, 3.0 million additional shares were reserved under the 2011 Equity Incentive Plan pursuant to the automatic increase. | ||||||||||||||||
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 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. | ||||||||||||||||
The weighted average Black-Scholes model assumptions for the three and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Expected term (in years) | 5 | 5 | 5 | 5.1 | ||||||||||||
Expected volatility | 43 | % | 46 | % | 44 | % | 46 | % | ||||||||
Risk-free interest rate | 1.48 | % | 0.67 | % | 0.95 | % | 0.78 | % | ||||||||
Expected dividend yield | — | — | — | — | ||||||||||||
Option and restricted stock activity under the 2011 Plan for the nine months ended September 30, 2013 was as follows (shares in thousands) | ||||||||||||||||
Options Outstanding | Restricted Stock | |||||||||||||||
Outstanding | ||||||||||||||||
Shares and Units | Number | Weighted- | Number | |||||||||||||
Available | of Shares | Average | of Shares | |||||||||||||
for Grant | Exercise | |||||||||||||||
Price | ||||||||||||||||
Outstanding — December 31, 2012 | 4,024 | 15,189 | $ | 6.98 | 3,928 | |||||||||||
Additional shares reserved under the 2011 equity incentive plan | 3,025 | — | — | — | ||||||||||||
Granted | (4,746 | ) | 2,304 | 7 | 2,442 | |||||||||||
Options exercised/ Restricted stock released | — | (4,494 | ) | 4.45 | (558 | ) | ||||||||||
Canceled/Forfeited | 5,000 | (4,053 | ) | 10.47 | (947 | ) | ||||||||||
Outstanding — September 30, 2013 | 7,303 | 8,946 | 5.57 | 4,865 | ||||||||||||
The weighted average grant-date fair value of employee stock options granted during the three months ended September 30, 2013 and 2012 was $4.86 and $3.41 per share, respectively and for the nine months ended September 30, 2013 and 2012 was $3.03 and $6.07 per share, respectively. | ||||||||||||||||
The following table summarizes the consolidated stock-based compensation expense included in the condensed consolidated statements of operations (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenue | $ | 802 | $ | 763 | $ | 2,222 | $ | 2,050 | ||||||||
Sales and marketing | 2,414 | 2,180 | 7,396 | 5,836 | ||||||||||||
Research and development | 753 | 562 | 1,758 | 1,455 | ||||||||||||
General and administrative | 1,989 | 2,148 | 5,925 | 5,919 | ||||||||||||
Total stock-based compensation | $ | 5,958 | $ | 5,653 | $ | 17,301 | $ | 15,260 | ||||||||
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, 2013, 750,000 additional shares were reserved under the ESPP pursuant to the plan's automatic increase provision. As of September 30, 2013, 686,957 shares had been issued under the ESPP and 1,695,089 shares were available for future issuance. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. In the normal course of business the Company is subject to examination by taxing authorities throughout the world. These audits include questioning the timing and amount of deductions, the allocation of income among various tax jurisdictions and compliance with federal, state, local and foreign tax laws. The Company is currently undergoing examination of the California Franchise Tax Returns relating to California state income taxes of its operating subsidiary for the years 2008 through 2010. The 2008 through 2012 tax years generally remain subject to examination by federal, state and foreign tax authorities. The Company’s gross amount of unrecognized tax benefits increased from $0.4 million as of December 31, 2012 to $0.6 million as of September 30, 2013, $55,000 of which, if recognized, would affect the company’s effective tax rate. It is difficult to predict the final timing and resolution of any particular uncertain tax position. Based on the Company’s assessment of many factors, the Company does not expect that changes in the liability for unrecognized tax benefits for the next twelve months will have a significant impact on the Company’s consolidated financial position or results of operations. | |
During the quarter ended September 30, 2013,, consistent with the Company’s practice in prior periods, management assessed the realizability of deferred tax assets based on the available evidence, including a history of taxable income and estimates of future taxable income. In performing its evaluation, management placed significant emphasis on guidance in ASC 740, which states that “[a] cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome.” Based upon available evidence, management concluded on a more-likely-than-not basis that most of the Company‘s U.S. deferred tax assets were not realizable. Significant negative evidence included U.S. pretax losses (as calculated consistent with ASC 740) in each of the Company‘s 2013 quarters and for the cumulative twelve-quarter period ended September 30, 2013,. Additionally, company forecasts indicated a continuation of U.S adjusted pretax losses for calendar year 2013. The Company also concluded on a more-likely-than-not basis that its Singapore and Ireland deferred tax assets were not realizable, based on cumulative pretax losses incurred for the cumulative twelve-quarter period ended September 30, 2013 and forecast pretax losses for the remainder of the year. | |
Other factors were considered but provided neither positive nor negative objectively-verifiable evidence as to the realization of our deferred tax assets. | |
At September 30, 2013 management concluded that the cumulative losses for the most recent three years, as well as the losses during calendar 2013, represented significant negative evidence as to why a valuation allowance was warranted. Management also considered the Company’s near-term financial forecast on a jurisdictional basis which indicated that three-year cumulative loss estimates in the U.S., Singapore and Ireland would not reverse in the near future. Assessing these factors and the fact that that the most objective and verifiable data were the cumulative three-year losses in each jurisdiction through September 30, 2013, management concluded that, on a more-likely-than-not basis, the Company’s U.S., Singapore and Ireland tax deferred tax assets would not be realized. As a result, the Company provided a valuation allowance for all US federal deferred tax assets, net of liabilities, for all Ireland and Singapore net deferred tax assets, and for substantially all of the Company’s state deferred tax assets. The remaining deferred tax assets at September 30, 2013 relate to jurisdictions in which the Company has net adjusted historical pretax profits and sufficient forecast profitability to assure future realization of such deferred tax assets. | |
Management will continue to assess the realization of the Company’s deferred tax assets at each balance sheet date by applying the provisions of ASC 740. These evaluations will consider all positive and negative factors identified by management at each reporting date. | |
The Company considers the undistributed earnings of its foreign subsidiaries permanently reinvested in foreign operations and has not provided for U.S. income taxes on such earnings. | |
On January 2, 2013, the American Taxpayer Relief Act of 2012 was enacted, which reinstated the federal research tax credit retroactive to January 1, 2012 and extended the credit through December 31, 2013. The 2012 federal research tax credit along with the first nine months of 2013 federal research tax credit, which would otherwise have been recognized in the first nine months of 2013, is fully offset by a valuation allowance. |
Reportable_Segments
Reportable Segments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Reportable Segments | ' | |||||||||||||||
Reportable Segments | ||||||||||||||||
The Company’s operations are principally managed on a geographic basis and are comprised of three reportable and operating segments: NALA, EMEA, and APJ, as defined below. | ||||||||||||||||
The Company reports segment information based on the management approach. The management approach designates the internal reporting used by the Company’s Chief Operating Decision Maker (“CODM”), for making decisions and assessing | ||||||||||||||||
performance as the source of the Company’s reportable segments. The CODM is the Company’s Chief Executive Officer. The CODM allocates resources to and assesses the performance of each of the operating segment using information about its revenue and direct profit contribution, which is management’s measure of segment profitability. Management has determined that the Company’s reportable and operating segments are as follows, based on the information used by the CODM: | ||||||||||||||||
NALA — Includes operations from offices in San Francisco, California; Denver, Colorado and Nashville, Tennessee related primarily to end customers in North America. | ||||||||||||||||
EMEA — Includes operations from offices in Liverpool, United Kingdom and Dublin, Ireland related primarily to end customers in Europe. | ||||||||||||||||
APJ — Includes operations from offices in Singapore related primarily to end customers in Asia Pacific and Japan. Operations in Kuala Lumpur, Malaysia are allocated to the reportable segment of where the customer is located. | ||||||||||||||||
The Company does not allocate sales and marketing, research and development, or general and administrative expenses to its geographic regions because management does not include the information in its measurement of the performance of the operating segments. The Company excludes certain items such as stock-based compensation, overhead allocations and other items from direct profit contribution. Revenue for a particular geography reflects fees the Company earns from its customers for sales and renewals of maintenance, support and subscription contracts on their behalf and managed from the Company’s sales center in that geography. | ||||||||||||||||
Summarized financial information by geographic location based on the Company’s internal management reporting and as utilized by the Company’s CODM, is as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net revenue | ||||||||||||||||
NALA | $ | 45,068 | $ | 37,647 | $ | 125,357 | $ | 110,720 | ||||||||
EMEA | 15,625 | 14,159 | 51,383 | 45,425 | ||||||||||||
APJ | 5,789 | 7,284 | 18,560 | 20,213 | ||||||||||||
Total net revenue | $ | 66,482 | $ | 59,090 | $ | 195,300 | $ | 176,358 | ||||||||
Direct profit contribution | ||||||||||||||||
NALA | $ | 23,612 | $ | 20,928 | $ | 67,222 | $ | 60,101 | ||||||||
EMEA | 7,813 | 6,739 | 25,692 | 23,809 | ||||||||||||
APJ | 2,219 | 873 | 4,927 | 2,627 | ||||||||||||
Total direct profit contribution | 33,644 | 28,540 | 97,841 | 86,537 | ||||||||||||
Adjustments: | ||||||||||||||||
Stock-based compensation | (802 | ) | (763 | ) | (2,222 | ) | (2,050 | ) | ||||||||
Other, net | (6,090 | ) | (3,231 | ) | (17,167 | ) | (9,131 | ) | ||||||||
Gross profit | $ | 26,752 | $ | 24,546 | $ | 78,452 | $ | 75,356 | ||||||||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
Richard Campione was elected to the Company’s Board of Directors (the “Board”) on November 29, 2012. On December 19, 2012, the Company entered into a consulting agreement with Mr. Campione under which Mr. Campione provides certain software consulting services to the Company. The Audit Committee of the Board pre-approved this consulting agreement in accordance with the Company’s formal policy regarding related party transactions. The Company paid Mr. Campione $0.3 million for consulting services provided during the term of the agreement, which ended April 30, 2013. |
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-2 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU No. 2013-2 requires an entity to disaggregate the total change of each component of other comprehensive income either on the face of the income statement or as a separate disclosure in the notes. The new guidance became effective for the Company’s interim period ended March 31, 2013. The Company adopted this guidance and the adoption did not have any impact on its financial position, results of operations or cash flows as the amounts reclassified out of accumulated other comprehensive income is not material. |
Recovered_Sheet1
Cash, Cash Equivalents and Short-term Investments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
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 September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Cash | $ | 31,706 | $ | — | $ | — | $ | 31,706 | ||||||||
Cash equivalents: | ||||||||||||||||
Money market mutual funds | 142,968 | — | — | 142,968 | ||||||||||||
Total cash and cash equivalents | 174,674 | — | — | 174,674 | ||||||||||||
Short-term investments: | ||||||||||||||||
Corporate bonds | 39,518 | 57 | (20 | ) | 39,555 | |||||||||||
U.S. agency securities | 32,235 | 45 | (6 | ) | 32,274 | |||||||||||
Asset-backed securities | 13,968 | 9 | (20 | ) | 13,957 | |||||||||||
U.S. Treasury securities | 17,760 | 58 | — | 17,818 | ||||||||||||
Total short-term investments | 103,481 | 169 | (46 | ) | 103,604 | |||||||||||
Cash, cash equivalents and short-term investments | $ | 278,155 | $ | 169 | $ | (46 | ) | $ | 278,278 | |||||||
December 31, 2012 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Cash | $ | 59,568 | $ | — | $ | — | $ | 59,568 | ||||||||
Cash equivalents: | ||||||||||||||||
Money market mutual funds | 17,000 | — | — | 17,000 | ||||||||||||
Total cash and cash equivalents | 76,568 | — | — | 76,568 | ||||||||||||
Short-term investments: | ||||||||||||||||
Corporate bonds | 13,389 | 2 | (14 | ) | 13,377 | |||||||||||
U.S. agency securities | 11,280 | 4 | (1 | ) | 11,283 | |||||||||||
Asset-backed securities | 4,670 | 1 | (5 | ) | 4,666 | |||||||||||
U.S. Treasury securities | 3,546 | 2 | — | 3,548 | ||||||||||||
Total short-term investments | 32,885 | 9 | (20 | ) | 32,874 | |||||||||||
Cash, cash equivalents and short-term investments | $ | 109,453 | $ | 9 | $ | (20 | ) | $ | 109,442 | |||||||
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 September 30, 2013: | ||||||||||||||||
Amortized | Estimated | |||||||||||||||
Cost | Fair Value | |||||||||||||||
Less than 1 year | $ | 8,828 | $ | 8,834 | ||||||||||||
Due in 1 to 5 years | 94,653 | 94,770 | ||||||||||||||
Total | $ | 103,481 | $ | 103,604 | ||||||||||||
Fair_value_of_financial_instru1
Fair value of financial instruments (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Summary of Fair Value Measurement of Financial Instruments | ' | |||||||||||
The following table presents information about the Company’s financial instruments that are measured at fair value as of September 30, 2013 and indicates the fair value hierarchy of the valuation (in thousands): | ||||||||||||
Total | Quoted Prices | Significant | ||||||||||
in Active | Other | |||||||||||
Markets for | Observable | |||||||||||
Identical | Inputs | |||||||||||
Assets | (Level 2) | |||||||||||
(Level 1) | ||||||||||||
Description | ||||||||||||
Cash equivalents: | ||||||||||||
Money market mutual funds | $ | 142,968 | $ | 142,968 | $ | — | ||||||
Total cash equivalents | 142,968 | 142,968 | — | |||||||||
Short-term investments: | ||||||||||||
Corporate bonds | 39,555 | — | 39,555 | |||||||||
U.S. agency securities | 32,274 | — | 32,274 | |||||||||
Asset-backed securities | 13,957 | — | 13,957 | |||||||||
U.S. Treasury securities | 17,818 | — | 17,818 | |||||||||
Total short-term investments | 103,604 | — | 103,604 | |||||||||
Cash equivalents and short-term investments | $ | 246,572 | $ | 142,968 | $ | 103,604 | ||||||
The following table presents information about the Company’s financial instruments that are measured at fair value as of December 31, 2012 and indicates the fair value hierarchy of the valuation (in thousands): | ||||||||||||
Total | Quoted Prices | Significant | ||||||||||
in Active | Other | |||||||||||
Markets for | Observable | |||||||||||
Identical | Inputs | |||||||||||
Assets | (Level 2) | |||||||||||
(Level 1) | ||||||||||||
Description | ||||||||||||
Cash equivalents: | ||||||||||||
Money market mutual funds | $ | 17,000 | $ | 17,000 | $ | — | ||||||
Total cash equivalents | 17,000 | 17,000 | — | |||||||||
Short-term investments: | ||||||||||||
Corporate bonds | 13,377 | — | 13,377 | |||||||||
U.S. agency securities | 11,283 | — | 11,283 | |||||||||
Asset-backed securities | 4,666 | — | 4,666 | |||||||||
U.S. Treasury securities | 3,548 | — | 3,548 | |||||||||
Total short-term investments | 32,874 | — | 32,874 | |||||||||
Cash equivalents and short-term investments | $ | 49,874 | $ | 17,000 | $ | 32,874 | ||||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Summary of Property and Equipment | ' | |||||||
Property and equipment balances were comprised of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Computers and equipment | $ | 16,672 | $ | 14,733 | ||||
Software | 33,603 | 32,982 | ||||||
Furniture and fixtures | 8,670 | 8,555 | ||||||
Leasehold improvements | 10,911 | 10,801 | ||||||
69,856 | 67,071 | |||||||
Less: accumulated depreciation and amortization | (41,706 | ) | (32,558 | ) | ||||
Property and equipment – net | $ | 28,150 | $ | 34,513 | ||||
Accrued_Liabilities_and_Other_
Accrued Liabilities and Other (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Comprised Balance of Accrued Liabilities and Other | ' | |||||||
Accrued liabilities and other balances were comprised of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Deferred revenue | $ | 4,519 | $ | 2,295 | ||||
Accrued operating expenses | 3,128 | 3,664 | ||||||
Deferred rent obligations | 861 | 986 | ||||||
Other employee related | 482 | 323 | ||||||
Accrued other (includes ESPP contributions of $330 and $1,059 at September 30, 2013 and December 31, 2012, respectively) | 3,942 | 3,135 | ||||||
$ | 12,932 | $ | 10,403 | |||||
Credit_Facility_and_Capital_Le1
Credit Facility and Capital Leases (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Debt Disclosure [Abstract] | ' | |||
Future Minimum Annual Payments Under Capital Lease Obligations | ' | |||
Future minimum annual payments under capital lease obligations as of September 30, 2013 were as follows (in thousands): | ||||
September 30, | ||||
2013 | ||||
Years Ending | ||||
2013 (remaining three months) | $ | 82 | ||
2014 | 269 | |||
2015 | 76 | |||
2016 | 78 | |||
2017 | 80 | |||
Thereafter | 146 | |||
Total | $ | 731 | ||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Debt Disclosure [Abstract] | ' | |||
Schedule of Net Carrying Amount of Liability Component | ' | |||
The net carrying amount of the liability component of the Notes as of September 30, 2013 consists of the following (in thousands): | ||||
Principal amount | $ | 150,000 | ||
Unamortized debt discount | (37,698 | ) | ||
Net carrying amount | $ | 112,302 | ||
Schedule of Interest Expense on Notes Recognized | ' | |||
The following table presents the interest expense recognized related to the Notes for the three months ended September 30, 2013 (in thousands): | ||||
Contractual interest expense at 1.5% per annum | $ | 296 | ||
Amortization of debt issuance costs | 79 | |||
Accretion of debt discount | 845 | |||
Total | $ | 1,220 | ||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
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 September 30, 2013 were as follows (in thousands): | ||||
30-Sep-13 | ||||
Years Ending December 31, | ||||
2013 (remaining three months). | $ | 2,301 | ||
2014 | 8,188 | |||
2015 | 6,183 | |||
2016 | 4,374 | |||
2017 | 4,093 | |||
Thereafter | 12,526 | |||
Total | $ | 37,665 | ||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Weighted Average Black-Scholes Model Assumptions | ' | |||||||||||||||
The weighted average Black-Scholes model assumptions for the three and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Expected term (in years) | 5 | 5 | 5 | 5.1 | ||||||||||||
Expected volatility | 43 | % | 46 | % | 44 | % | 46 | % | ||||||||
Risk-free interest rate | 1.48 | % | 0.67 | % | 0.95 | % | 0.78 | % | ||||||||
Expected dividend yield | — | — | — | — | ||||||||||||
Reconciliation of Option and Restricted Stock Activity | ' | |||||||||||||||
Option and restricted stock activity under the 2011 Plan for the nine months ended September 30, 2013 was as follows (shares in thousands) | ||||||||||||||||
Options Outstanding | Restricted Stock | |||||||||||||||
Outstanding | ||||||||||||||||
Shares and Units | Number | Weighted- | Number | |||||||||||||
Available | of Shares | Average | of Shares | |||||||||||||
for Grant | Exercise | |||||||||||||||
Price | ||||||||||||||||
Outstanding — December 31, 2012 | 4,024 | 15,189 | $ | 6.98 | 3,928 | |||||||||||
Additional shares reserved under the 2011 equity incentive plan | 3,025 | — | — | — | ||||||||||||
Granted | (4,746 | ) | 2,304 | 7 | 2,442 | |||||||||||
Options exercised/ Restricted stock released | — | (4,494 | ) | 4.45 | (558 | ) | ||||||||||
Canceled/Forfeited | 5,000 | (4,053 | ) | 10.47 | (947 | ) | ||||||||||
Outstanding — September 30, 2013 | 7,303 | 8,946 | 5.57 | 4,865 | ||||||||||||
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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenue | $ | 802 | $ | 763 | $ | 2,222 | $ | 2,050 | ||||||||
Sales and marketing | 2,414 | 2,180 | 7,396 | 5,836 | ||||||||||||
Research and development | 753 | 562 | 1,758 | 1,455 | ||||||||||||
General and administrative | 1,989 | 2,148 | 5,925 | 5,919 | ||||||||||||
Total stock-based compensation | $ | 5,958 | $ | 5,653 | $ | 17,301 | $ | 15,260 | ||||||||
Reportable_Segments_Tables
Reportable Segments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Summarized Financial Information Based Geographic Location | ' | |||||||||||||||
Summarized financial information by geographic location based on the Company’s internal management reporting and as utilized by the Company’s CODM, is as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net revenue | ||||||||||||||||
NALA | $ | 45,068 | $ | 37,647 | $ | 125,357 | $ | 110,720 | ||||||||
EMEA | 15,625 | 14,159 | 51,383 | 45,425 | ||||||||||||
APJ | 5,789 | 7,284 | 18,560 | 20,213 | ||||||||||||
Total net revenue | $ | 66,482 | $ | 59,090 | $ | 195,300 | $ | 176,358 | ||||||||
Direct profit contribution | ||||||||||||||||
NALA | $ | 23,612 | $ | 20,928 | $ | 67,222 | $ | 60,101 | ||||||||
EMEA | 7,813 | 6,739 | 25,692 | 23,809 | ||||||||||||
APJ | 2,219 | 873 | 4,927 | 2,627 | ||||||||||||
Total direct profit contribution | 33,644 | 28,540 | 97,841 | 86,537 | ||||||||||||
Adjustments: | ||||||||||||||||
Stock-based compensation | (802 | ) | (763 | ) | (2,222 | ) | (2,050 | ) | ||||||||
Other, net | (6,090 | ) | (3,231 | ) | (17,167 | ) | (9,131 | ) | ||||||||
Gross profit | $ | 26,752 | $ | 24,546 | $ | 78,452 | $ | 75,356 | ||||||||
Cash_Cash_Equivalents_and_Shor1
Cash Cash Equivalents and Short-term Investments (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents, Amortized Cost | $174,674 | $76,568 | $110,277 | $65,983 |
Total short-term investments, Amortized Cost | 103,481 | 32,885 | ' | ' |
Total short-term investments, Unrealized Gains | 169 | 9 | ' | ' |
Total short-term investments, Unrealized Losses | -46 | -20 | ' | ' |
Total short-term investments | 103,604 | 32,874 | ' | ' |
Cash, cash equivalents and short-term investments, Amortized Cost | 278,155 | 109,453 | ' | ' |
Cash, cash equivalents and short-term investments, Unrealized Gains | 169 | 9 | ' | ' |
Cash, cash equivalents and short-term investments, Unrealized Losses | -46 | -20 | ' | ' |
Cash, cash equivalents and short-term investments, Estimated Fair Value | 278,278 | 109,442 | ' | ' |
Corporate bonds | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total short-term investments, Amortized Cost | 39,518 | 13,389 | ' | ' |
Total short-term investments, Unrealized Gains | 57 | 2 | ' | ' |
Total short-term investments, Unrealized Losses | -20 | -14 | ' | ' |
Total short-term investments | 39,555 | 13,377 | ' | ' |
U.S. agency securities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total short-term investments, Amortized Cost | 32,235 | 11,280 | ' | ' |
Total short-term investments, Unrealized Gains | 45 | 4 | ' | ' |
Total short-term investments, Unrealized Losses | -6 | -1 | ' | ' |
Total short-term investments | 32,274 | 11,283 | ' | ' |
Asset-backed securities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total short-term investments, Amortized Cost | 13,968 | 4,670 | ' | ' |
Total short-term investments, Unrealized Gains | 9 | 1 | ' | ' |
Total short-term investments, Unrealized Losses | -20 | -5 | ' | ' |
Total short-term investments | 13,957 | 4,666 | ' | ' |
U.S. Treasury securities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total short-term investments, Amortized Cost | 17,760 | 3,546 | ' | ' |
Total short-term investments, Unrealized Gains | 58 | 2 | ' | ' |
Total short-term investments, Unrealized Losses | 0 | 0 | ' | ' |
Total short-term investments | 17,818 | 3,548 | ' | ' |
Cash | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents, Amortized Cost | 31,706 | 59,568 | ' | ' |
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 | 31,706 | 59,568 | ' | ' |
Money market mutual funds | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents, Amortized Cost | 142,968 | 17,000 | ' | ' |
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 | 142,968 | 17,000 | ' | ' |
Total cash and cash equivalents | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents, Amortized Cost | 174,674 | 76,568 | ' | ' |
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 | $174,674 | $76,568 | ' | ' |
Summary_of_Cost_and_Estimated_
Summary of Cost and Estimated Fair Values of Short Term Fixed Income Securities (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Amortized Cost | ' |
Less than 1 year | $8,828 |
Due in 1 to 5 years | 94,653 |
Total | 103,481 |
Estimated Fair Value | ' |
Less than 1 year | 8,834 |
Due in 1 to 5 years | 94,770 |
Total | $103,604 |
Financial_Instruments_that_are
Financial Instruments that are Measured at Fair Value (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Short-term investments: | ' | ' |
Total short-term investments | $103,604 | $32,874 |
Fair Value, Measurements, Recurring | ' | ' |
Cash equivalents: | ' | ' |
Total cash equivalents | 142,968 | 17,000 |
Short-term investments: | ' | ' |
Total short-term investments | 103,604 | 32,874 |
Cash equivalents and short-term investments | 246,572 | 49,874 |
Fair Value, Measurements, Recurring | Money market mutual funds | ' | ' |
Cash equivalents: | ' | ' |
Total cash equivalents | 142,968 | 17,000 |
Fair Value, Measurements, Recurring | Corporate bonds | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 39,555 | 13,377 |
Fair Value, Measurements, Recurring | U.S. agency securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 32,274 | 11,283 |
Fair Value, Measurements, Recurring | Asset-backed securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 13,957 | 4,666 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 17,818 | 3,548 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ' | ' |
Cash equivalents: | ' | ' |
Total cash equivalents | 142,968 | 17,000 |
Short-term investments: | ' | ' |
Cash equivalents and short-term investments | 142,968 | 17,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Money market mutual funds | ' | ' |
Cash equivalents: | ' | ' |
Total cash equivalents | 142,968 | 17,000 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 103,604 | 32,874 |
Cash equivalents and short-term investments | 103,604 | 32,874 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate bonds | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 39,555 | 13,377 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | U.S. agency securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 32,274 | 11,283 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Asset-backed securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 13,957 | 4,666 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | U.S. Treasury securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | $17,818 | $3,548 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | $69,856 | $67,071 |
Less: accumulated depreciation and amortization | -41,706 | -32,558 |
Property and equipment, net | 28,150 | 34,513 |
Computers and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | 16,672 | 14,733 |
Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | 33,603 | 32,982 |
Furniture and fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | 8,670 | 8,555 |
Leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | $10,911 | $10,801 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' | ' |
Depreciation and amortization expense related to property and equipment | $3 | $2.50 | $9 | $7.10 | ' |
Property and equipment under capital lease | 3.2 | ' | 3.2 | ' | 3.2 |
Accumulated depreciation related to assets under capital lease | 2.5 | ' | 2.5 | ' | 2.1 |
Internal-use software development costs capitalized | 0 | 1.5 | 0 | 6.6 | ' |
Carrying value of internal-use software, net of accumulated amortization | 9.8 | ' | 9.8 | ' | 13.6 |
Amortization of capitalized costs related to internal-use software | $1.30 | $0.80 | $3.80 | $2.10 | ' |
Comprised_Balance_of_Accrued_L
Comprised Balance of Accrued Liabilities and Other (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Deferred revenue | $4,519 | $2,295 |
Accrued operating expenses | 3,128 | 3,664 |
Deferred rent obligations | 861 | 986 |
Other employee related | 482 | 323 |
Accrued other (includes ESPP contributions of $330 and $1,059 at September 30, 2013 and December 31, 2012, respectively) | 3,942 | 3,135 |
Total accrued liabilities and other balance | 12,932 | 10,403 |
ESPP Contributions | $330 | $1,059 |
Credit_Facility_and_Capital_Le2
Credit Facility and Capital Leases - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | |||||||
Jun. 30, 2013 | Jun. 29, 2012 | Jun. 29, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 05, 2012 | Sep. 30, 2013 | Jun. 18, 2013 | Sep. 30, 2013 | Jun. 18, 2013 | Sep. 30, 2013 | |
Minimum | Maximum | Line of Credit | Before July 5, 2013 | Before July 5, 2013 | After July 5, 2013 | After July 5, 2013 | Letter Of Credit Sublimit | |||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit agreement term | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' |
Line of credit facility maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | $25,000,000 | $25,000,000 | $30,000,000 | $30,000,000 | $2,000,000 |
Line of credit facility reduction in commitment | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee | 0.30% | ' | 0.45% | 0.30% | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance of revolving credit facility | ' | 850,000 | ' | 575,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR rate | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, maturity date | ' | ' | ' | 5-Jul-15 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate for borrowings under credit facility | ' | ' | ' | 2.20% | ' | ' | ' | ' | ' | ' | ' | ' |
Terminated credit facility | ' | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underlying property and equipment expiration period | ' | ' | ' | ' | 'September 2019 | ' | ' | ' | ' | ' | ' | ' |
Weighted-average imputed interest rates for the capital lease agreements | ' | ' | ' | ' | 2.60% | 3.80% | ' | ' | ' | ' | ' | ' |
Future_Minimum_Annual_Payments
Future Minimum Annual Payments Under Capital Lease Obligation (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2013 (remaining three months) | $82 |
2014 | 269 |
2015 | 76 |
2016 | 78 |
2017 | 80 |
Thereafter | 146 |
Net carrying amount | $731 |
Debt_Details
Debt (Details) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||
Share data in Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Aug. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Senior Convertible Notes | Senior Convertible Notes | Senior Convertible Notes | Senior Convertible Notes | After December 31, 2013 [Member] | Warrant [Member] | ||||
Note Hedges | Warrant [Member] | Senior Convertible Notes | |||||||
D | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Debt | ' | ' | ' | $150,000,000 | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' |
Conversion ratio | ' | ' | ' | ' | 0.061677 | ' | ' | ' | ' |
Conversion price | ' | ' | ' | ' | $16.21 | ' | ' | ' | ' |
Threshold trading days | ' | ' | ' | ' | ' | ' | ' | 20 | ' |
Threshold consecutive trading days | ' | ' | ' | ' | '5 days | ' | ' | '30 days | ' |
Threshold percentage of stock price trigger | ' | ' | ' | ' | 98.00% | ' | ' | 130.00% | ' |
Threshold business days | ' | ' | ' | ' | '5 days | ' | ' | ' | ' |
Cash repurchase price, percent | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Minimum percent held in principal amount of outstanding notes to declare all notes to be due and payable | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' |
Debt | 731,000 | ' | ' | 111,500,000 | 112,302,000 | ' | ' | ' | ' |
Additional paid in capital | ' | ' | ' | 38,500,000 | ' | ' | ' | ' | ' |
Transaction costs | ' | ' | ' | ' | 4,900,000 | ' | ' | ' | ' |
Debt component of transaction costs, gross | ' | ' | ' | 3,600,000 | ' | ' | ' | ' | ' |
Deferred debt issuance costs, net | 3,535,000 | ' | 71,000 | ' | ' | ' | ' | ' | ' |
Transaction costs, additional paid in capital | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' |
Net proceeds from the Notes | ' | ' | ' | ' | 145,100,000 | ' | ' | ' | ' |
Payments of convertible note hedges | 31,408,000 | 0 | ' | ' | ' | 31,400,000 | ' | ' | ' |
Proceeds from the issuance of warrants | $21,763,000 | $0 | ' | ' | ' | ' | $21,800,000 | ' | $21,800,000 |
Shares covered under note hedges | 9.25 | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants sold to acquire shares | ' | ' | ' | ' | ' | ' | ' | ' | 9.25 |
Exercise price of warrant | ' | ' | ' | ' | ' | ' | ' | ' | 21.02 |
Common stock strike price | $16.21 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Liability_Component_and_I
Debt (Liability Component and Interest Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Aug. 31, 2013 |
Senior Convertible Notes | Senior Convertible Notes | |||||
Liability Component | ' | ' | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | $150,000 | ' |
Unamortized debt discount | ' | ' | ' | ' | -37,698 | ' |
Net carrying amount | 731 | ' | 731 | ' | 112,302 | 111,500 |
Interest Expense | ' | ' | ' | ' | ' | ' |
Contractual interest expense at 1.5% per annum | ' | ' | ' | ' | 296 | ' |
Amortization of debt issuance costs | ' | ' | ' | ' | 79 | ' |
Accretion of debt discount | ' | ' | ' | ' | 845 | ' |
Total | $1,272 | $70 | $1,376 | $180 | $1,220 | ' |
Commitment_and_Contingencies_A
Commitment and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 31, 2013 | Sep. 30, 2013 |
Senior Convertible Notes | Senior Convertible Notes | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Debt | ' | ' | ' | ' | $150 | ' |
Interest rate | ' | ' | ' | ' | ' | 1.50% |
Operating lease payment of non-cancelable agreement expiration period | ' | ' | 'through September 30, 2022 | ' | ' | ' |
Rent expense | $2 | $2.10 | $6.40 | $6.40 | ' | ' |
Future_Annual_Minimum_Lease_Pa
Future Annual Minimum Lease Payments Under All Noncancelable Operating Leases (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2013 (remaining three months). | $2,301 |
2014 | 8,188 |
2015 | 6,183 |
2016 | 4,374 |
2017 | 4,093 |
Thereafter | 12,526 |
Total future annual minimum lease payment | $37,665 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Additional shares authorized for equity awards | 3,000,000 | ' | ' | 3,025,000 | ' | ' |
Common stock, par value | ' | $0.00 | ' | $0.00 | ' | $0.00 |
Weighted average grant-date fair value of stock options granted | ' | $4.86 | $3.41 | $3.03 | $6.07 | ' |
Share issued under employee stock purchase plan | ' | 686,957 | ' | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Annual increase in shares reserved for equity awards, percentage of outstanding shares | ' | 4.00% | ' | ' | ' | ' |
Annual Increase in number of shares reserved for equity awards | ' | 3,840,000 | ' | 3,840,000 | ' | ' |
Employee Stock Option | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Additional shares authorized for equity awards | ' | ' | ' | 0 | ' | ' |
Restricted Stock Outstanding | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Share-based payment award, award vesting period | ' | ' | ' | '4 years | ' | ' |
Additional shares authorized for equity awards | ' | ' | ' | 0 | ' | ' |
Number of shares converted | ' | ' | ' | 1 | ' | ' |
2011 Plan | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Vested option expiring period | ' | ' | ' | '10 years | ' | ' |
Vested but unexercised option expiring period | ' | ' | ' | '3 months | ' | ' |
2011 Plan | Employee Stock Option | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Share-based payment award, award vesting period | ' | ' | ' | '4 years | ' | ' |
Percentage of option vesting during first year | ' | ' | ' | 25.00% | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of payroll deductions | ' | 10.00% | ' | ' | ' | ' |
Percentage of purchase price of the shares on each purchase date is equal to the fair market value | ' | 85.00% | ' | ' | ' | ' |
Share issued under employee stock purchase plan | ' | 1,500,000 | ' | ' | ' | ' |
Percentage of outstanding common stock shares | ' | 1.00% | ' | ' | ' | ' |
Additional Shares reserved | 750,000 | ' | ' | ' | ' | ' |
Shares available for future issuance | ' | 1,695,089 | ' | 1,695,089 | ' | ' |
Weighted_Average_BlackScholes_
Weighted Average Black-Scholes Model Assumptions (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Expected term (in years) | '5 years | '5 years | '5 years | '5 years 1 month 6 days |
Expected volatility | 43.00% | 46.00% | 44.00% | 46.00% |
Risk-free interest rate | 1.48% | 0.67% | 0.95% | 0.78% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Option_and_Restricted_Stock_Ac
Option and Restricted Stock Activity (Detail) (USD $) | 1 Months Ended | 9 Months Ended |
Jan. 31, 2013 | Sep. 30, 2013 | |
Options Outstanding, Number of Shares | ' | ' |
Shares and Units Available for Grant, Beginning balance | 4,024,000 | 4,024,000 |
Additional shares reserved under the 2012 equity incentive plan | 3,000,000 | 3,025,000 |
Shares and Units Available for Grant, Granted | ' | -4,746,000 |
Shares and Units Available for Grant, Options exercised/ Restricted stock released | ' | 0 |
Shares and Units Available for Grant, Canceled/Forfeited | ' | 5,000,000 |
Shares and Units Available for Grant, Ending balance | ' | 7,303,000 |
Employee Stock Option | ' | ' |
Options Outstanding, Number of Shares | ' | ' |
Options Outstanding, Number of Shares, Beginning Balance | 15,189,000 | 15,189,000 |
Additional shares reserved under the 2012 equity incentive plan | ' | 0 |
Options Outstanding, Number of Shares, Granted | ' | 2,304,000 |
Options Outstanding, Number of Shares, Options exercised/ Restricted stock released | ' | -4,494,000 |
Options Outstanding, Number of Shares, Canceled /Forfeited | ' | -4,053,000 |
Options Outstanding, Number of Shares, Ending Balance | ' | 8,946,000 |
Options Outstanding, Options, Weighted Average Exercise Price | ' | ' |
Options Outstanding, Weighted Average Exercise Price, Beginning Balance | 6.98 | 6.98 |
Options Outstanding, Weighted Average Exercise Price, Grants in Period | ' | 7 |
Options Outstanding, Weighted Average Exercise Price, Options exercised/ Restricted stock released in Period | ' | 4.45 |
Options Outstanding, Weighted Average Exercise Price, Forfeitures in Period | ' | 10.47 |
Options Outstanding, Weighted Average Exercise Price, Ending Balance | ' | 5.57 |
Restricted Stock Outstanding | ' | ' |
Options Outstanding, Number of Shares | ' | ' |
Restricted Stock Outstanding Number of Share, Beginning balance | 3,928,000 | 3,928,000 |
Additional shares reserved under the 2012 equity incentive plan | ' | 0 |
Restricted Stock Outstanding Number of Share, Granted | ' | 2,442,000 |
Restricted Stock Outstanding Number of Share, Options exercised/ Restricted stock released | ' | -558,000 |
Restricted Stock Outstanding Number of Share, Canceled /Forfeited | ' | -947,000 |
Restricted Stock Outstanding Number of Share, Ending balance | ' | 4,865,000 |
StockBased_Compensation_Expens
Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $5,958 | $5,653 | $17,301 | $15,260 |
Cost of revenue | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 802 | 763 | 2,222 | 2,050 |
Sales and marketing | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 2,414 | 2,180 | 7,396 | 5,836 |
Research and development | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | 753 | 562 | 1,758 | 1,455 |
General and administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation | $1,989 | $2,148 | $5,925 | $5,919 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Unrecognized tax benefits | $600,000 | $400,000 |
Gross amount of unrecognized tax benefits, which, if recognized, would affect effective tax rate | $55,000 | ' |
Number of most recent years cumulative losses represent significant negative evidence for valuation allowance need | '3 years | ' |
Reportable_Segments_Additional
Reportable Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 3 |
Number of operating segments | 3 |
Reportable_Segments_Summarized
Reportable Segments - Summarized Financial Information Based Geographic Location (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net revenue | ' | ' | ' | ' |
Net revenue | $66,482 | $59,090 | $195,300 | $176,358 |
Total net revenue | 66,482 | 59,090 | 195,300 | 176,358 |
Direct profit contribution | ' | ' | ' | ' |
Direct profit contribution | 33,644 | 28,540 | 97,841 | 86,537 |
Adjustments: | ' | ' | ' | ' |
Stock-based compensation | -802 | -763 | -2,222 | -2,050 |
Other, net | -6,090 | -3,231 | -17,167 | -9,131 |
Gross profit | 26,752 | 24,546 | 78,452 | 75,356 |
NALA | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' |
Net revenue | 45,068 | 37,647 | 125,357 | 110,720 |
Total net revenue | 45,068 | 37,647 | 125,357 | 110,720 |
Direct profit contribution | ' | ' | ' | ' |
Direct profit contribution | 23,612 | 20,928 | 67,222 | 60,101 |
EMEA | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' |
Net revenue | 15,625 | 14,159 | 51,383 | 45,425 |
Total net revenue | 15,625 | 14,159 | 51,383 | 45,425 |
Direct profit contribution | ' | ' | ' | ' |
Direct profit contribution | 7,813 | 6,739 | 25,692 | 23,809 |
APJ | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' |
Net revenue | 5,789 | 7,284 | 18,560 | 20,213 |
Total net revenue | 5,789 | 7,284 | 18,560 | 20,213 |
Direct profit contribution | ' | ' | ' | ' |
Direct profit contribution | $2,219 | $873 | $4,927 | $2,627 |
Related_Party_Transactions_Add
Related Party Transactions - Additional information (Detail) (Director, USD $) | 3 Months Ended | 4 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Apr. 30, 2013 |
Director | ' | ' |
Transactions with Third Party [Line Items] | ' | ' |
Related party transaction payment for consulting services | ' | $0.30 |
Related party transaction, agreement end date | 30-Apr-13 | ' |