Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 28, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'SREV | ' | ' |
Entity Registrant Name | 'SERVICESOURCE INTERNATIONAL, INC. | ' | ' |
Entity Central Index Key | '0001310114 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 82,583,868 | ' |
Entity Public Float | ' | ' | $360,520,829 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $170,132 | $76,568 |
Short-term investments | 105,001 | 32,874 |
Accounts receivable, net | 73,113 | 65,238 |
Deferred income taxes | 412 | 389 |
Prepaid expenses and other | 6,295 | 5,178 |
Total current assets | 354,953 | 180,247 |
Property and equipment, net | 27,998 | 34,513 |
Deferred income taxes, net of current portion | 2,035 | 2,321 |
Other assets, net | 8,626 | 1,057 |
Goodwill | 6,334 | 6,334 |
Total assets | 399,946 | 224,472 |
Current liabilities: | ' | ' |
Accounts payable | 3,610 | 3,293 |
Accrued taxes | 1,134 | 1,056 |
Accrued compensation and benefits | 19,610 | 15,738 |
Other accrued liabilities | 15,144 | 10,403 |
Obligations under capital leases | 270 | 326 |
Total current liabilities | 39,768 | 30,816 |
Obligations under capital leases, net of current portion | 387 | 638 |
Convertible notes, net | 113,915 | 0 |
Other long-term liabilities | 5,179 | 6,091 |
Total liabilities | 159,249 | 37,545 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.001 par value; 20,000,000 shares authorized and none issued and outstanding | 0 | 0 |
Common stock; $0.0001 par value; 1,000,000 shares authorized, 82,086 shares issued and 81,965 shares outstanding as of December 31, 2013; 75,758 shares issued and 75,637 shares outstanding at December 31, 2012 | 8 | 8 |
Treasury stock | -441 | -441 |
Additional paid-in capital | 286,526 | 210,650 |
Accumulated deficit | -46,250 | -23,398 |
Accumulated other comprehensive income | 854 | 108 |
Total stockholders’ equity | 240,697 | 186,927 |
Total liabilities and stockholders’ equity | $399,946 | $224,472 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0 |
Preferred stock, shares authorized | 20,000 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 82,086 | 75,758 |
Common stock, shares outstanding | 81,965 | 75,637 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net revenue | $272,482 | $243,703 | $205,501 |
Cost of revenue | 162,449 | 136,321 | 113,406 |
Gross profit | 110,033 | 107,382 | 92,095 |
Operating expenses: | ' | ' | ' |
Sales and marketing | 58,826 | 56,925 | 48,520 |
Research and development | 23,855 | 19,255 | 13,073 |
General and administrative | 44,913 | 41,135 | 33,647 |
Total operating expenses | 127,594 | 117,315 | 95,240 |
Loss from operations | -17,561 | -9,933 | -3,145 |
Interest expense | -3,754 | -236 | -503 |
Other, net | -666 | -538 | -624 |
Loss before income taxes | -21,981 | -10,707 | -4,272 |
Income tax provision (benefit) | 871 | 32,107 | -19,383 |
Net income (loss) | ($22,852) | ($42,814) | $15,111 |
Net income (loss) per common share: | ' | ' | ' |
Basic (in dollars per share) | ($0.29) | ($0.58) | $0.23 |
Diluted (in dollars per share) | ($0.29) | ($0.58) | $0.21 |
Weighted-average shares used in computing net income (loss) per common share: | ' | ' | ' |
Basic (in shares) | 78,408 | 74,270 | 66,656 |
Diluted (in shares) | 78,408 | 74,270 | 73,585 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | ($22,852) | ($42,814) | $15,111 |
Other comprehensive income: | ' | ' | ' |
Foreign currency translation adjustments | 579 | -110 | 65 |
Unrealized gain (loss) on short-term investments, net of tax | 167 | -20 | 9 |
Total other comprehensive income (loss), net of tax | 746 | -130 | 74 |
Total comprehensive income (loss) | ($22,106) | ($42,944) | $15,185 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders'/Members' Equity (USD $) | Total | Common Shares | Common Stock | Treasury Shares/Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2010 | $33,884 | $34,161 | $0 | ($441) | $0 | $0 | $164 |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 57,627 | 0 | -121 | ' | ' | ' |
Conversion to corporation (in shares) | ' | -57,760 | 57,760 | ' | ' | ' | ' |
Conversion to corporation | 8,117 | -32,573 | 6 | ' | 40,684 | ' | ' |
Issuance of common stock in connection with initial public offering, net of issuance costs of $10,209 (in shares) | ' | ' | 9,791 | ' | ' | ' | ' |
Issuance of common stock in connection with initial public offering, net of issuance costs of $10,209 | 87,702 | ' | 1 | ' | 87,701 | ' | ' |
Issuance of common stock in connection with follow-on offering, net of issuance costs of $1,055 (in shares) | ' | ' | 1,372 | ' | ' | ' | ' |
Issuance of common stock in connection with follow-on offering, net of issuance costs of $1,055 | 22,956 | ' | ' | ' | 22,956 | ' | ' |
Issuance of common stock from exercise of stock options and employee stock purchase plan (in shares) | ' | 133 | 3,765 | ' | ' | ' | ' |
Issuance of common stock from exercise of stock options and employee stock purchase plan | 15,045 | 476 | ' | ' | 14,569 | ' | ' |
Share-based compensation | 11,599 | 2,241 | ' | ' | 9,358 | ' | ' |
Income tax benefit (deficiency) from stock-based compensation | 2,528 | ' | ' | ' | 2,528 | ' | ' |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 15,111 | -4,305 | ' | ' | ' | 19,416 | ' |
Other comprehensive income (loss) | 74 | ' | ' | ' | ' | ' | 74 |
Total comprehensive income (loss) | 15,185 | ' | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2011 | 197,016 | 0 | 7 | -441 | 177,796 | 19,416 | 238 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 0 | 72,688 | -121 | ' | ' | ' |
Issuance of common stock from exercise of stock options and employee stock purchase plan (in shares) | ' | ' | 2,570 | ' | ' | ' | ' |
Issuance of common stock from exercise of stock options and employee stock purchase plan | 10,484 | ' | 1 | ' | 10,483 | ' | ' |
Share-based compensation | 20,883 | ' | ' | ' | 20,883 | ' | ' |
Income tax benefit (deficiency) from stock-based compensation | 1,488 | ' | ' | ' | 1,488 | ' | ' |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | -42,814 | ' | ' | ' | ' | -42,814 | ' |
Other comprehensive income (loss) | -130 | ' | ' | ' | ' | ' | -130 |
Total comprehensive income (loss) | -42,944 | ' | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2012 | 186,927 | 0 | 8 | -441 | 210,650 | -23,398 | 108 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 0 | 75,258 | -121 | ' | ' | ' |
Issuance of common stock from exercise of stock options and employee stock purchase plan (in shares) | ' | ' | 5,887 | ' | ' | ' | ' |
Issuance of common stock from exercise of stock options and employee stock purchase plan | 24,976 | ' | 0 | ' | 24,976 | ' | ' |
Vested restricted stock units converted to shares | ' | ' | 514 | ' | ' | ' | ' |
Equity component of the convertible notes issuance, net | 37,297 | ' | ' | ' | 37,297 | ' | ' |
Sale of warrants | 21,763 | ' | ' | ' | 21,763 | ' | ' |
Purchase of convertible note hedges | -31,408 | ' | ' | ' | -31,408 | ' | ' |
Share-based compensation | 23,608 | ' | ' | ' | 23,608 | ' | ' |
Income tax benefit (deficiency) from stock-based compensation | -360 | ' | ' | ' | -360 | ' | ' |
Comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | -22,852 | ' | ' | ' | ' | -22,852 | ' |
Other comprehensive income (loss) | 746 | ' | ' | ' | ' | ' | 746 |
Total comprehensive income (loss) | -22,106 | ' | ' | ' | ' | ' | ' |
Ending Balance at Dec. 31, 2013 | $240,697 | $0 | $8 | ($441) | $286,526 | ($46,250) | $854 |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 0 | 81,659 | -121 | ' | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders'/Members' Equity (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2011 |
Issuance of common stock in connection with initial public offering, issuance costs | $10,209 |
Issuance of common stock in connection with follow-on offering, issuance costs | $1,055 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net income (loss) | ($22,852) | ($42,814) | $15,111 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 11,652 | 10,003 | 9,372 |
Amortization of debt discount and issuance costs | 2,761 | 149 | 351 |
Amortization of premium on short-term investments | 750 | 591 | 276 |
Deferred income taxes | 217 | 31,340 | -19,259 |
Stock-based compensation | 23,620 | 20,883 | 11,599 |
Tax benefit (deficit) from stock-based compensation | 360 | -1,488 | -2,835 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable, net | -7,470 | -10,906 | -4,972 |
Prepaid expenses and other | -1,305 | 3,819 | -3,164 |
Accounts payable | 521 | -2,473 | 2,235 |
Accrued taxes | 71 | 115 | 2,064 |
Accrued compensation and benefits | 3,772 | -6,239 | 6,617 |
Accrued liabilities and other | 3,578 | 7,522 | -28,626 |
Net cash (used in) provided by operating activities | 15,675 | 10,502 | -11,231 |
Cash flows from investing activities | ' | ' | ' |
Acquisition of property and equipment | -5,261 | -20,353 | -14,050 |
Investment in privately held company | -4,500 | 0 | 0 |
Purchases of short-term investments | -89,747 | -64,002 | -53,795 |
Sales of short-term investments | 14,436 | 52,051 | 2,113 |
Maturities of short-term investments | 2,600 | 21,415 | 8,190 |
Net cash used in investing activities | -82,472 | -10,889 | -57,542 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from issuance of convertible notes, net | 145,133 | 0 | 0 |
Payments of convertible note hedges | -31,408 | 0 | 0 |
Proceeds from the issuance of warrants | 21,763 | 0 | 0 |
Net proceeds from issuance of common stock in initial public offering and follow-on offering. | 0 | 0 | 110,753 |
Repayment of long-term debt and capital lease obligations | -329 | -710 | -16,252 |
Payment of issuance costs for credit facility | 0 | -141 | -200 |
Proceeds from common stock issuances | 24,966 | 10,455 | 15,045 |
Tax benefit (deficit) from stock-based compensation | -360 | 1,488 | 2,835 |
Net cash provided by financing activities | 159,765 | 11,092 | 112,181 |
Net increase in cash and cash equivalents | 92,968 | 10,705 | 43,408 |
Effect of exchange rate changes on cash and cash equivalents | 596 | -120 | -77 |
Cash and cash equivalents at beginning of period | 76,568 | 65,983 | 22,652 |
Cash and cash equivalents at end of period | 170,132 | 76,568 | 65,983 |
Supplemental disclosure of cash flow information | ' | ' | ' |
Cash paid for interest | 125 | 132 | 518 |
Income taxes (refunded) paid, net | 1,168 | -3,987 | 2,459 |
Supplemental disclosure of non-cash investing and financing activities | ' | ' | ' |
Acquisition of property and equipment under capital leases | 0 | 0 | 271 |
Acquisition of property and equipment through accounts payable and accrued liabilities | $34 | $314 | $1,570 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||
Summary of Significant Accounting Policies | |||||||||||||||
Basis of Consolidation | |||||||||||||||
The accompanying consolidated financial statements include the accounts of ServiceSource International, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||
Use of Estimates | |||||||||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of net revenue and expenses during the reporting period. | |||||||||||||||
The Company’s significant accounting judgments and estimates include, but are not limited to: revenue recognition; the valuation and recognition of stock-based compensation, recognition and measurement of current and deferred income tax assets and liabilities and uncertain tax positions and the provision for bad debts. | |||||||||||||||
The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. However, future events are subject to change and estimates and judgments routinely require adjustment. Actual results may differ from these estimates, and these differences may be material. | |||||||||||||||
Segments | |||||||||||||||
The Company defines an operating segment on the same basis that it uses internally to evaluate performance. Management has determined that the Company has three operating segments, as it reports financial information across three geographic regions to its chief executive officer, who is the Company’s chief operating decision maker. The Company’s three operating and reportable segments are NALA (North America and Latin America), EMEA (Europe, Middle East and Africa) and APJ (Asia Pacific-Japan). The Company's three operating segments are also its three reporting units. | |||||||||||||||
Significant Risks and Uncertainties | |||||||||||||||
The Company is subject to certain risks and uncertainties that could have a material and adverse effect on its future financial position or results of operations. The Company’s customers are primarily high technology | |||||||||||||||
companies and any downturn in these industries, changes in customers’ sales strategies, or widespread shift away from end customers purchasing maintenance and support contracts could have an adverse impact on the Company’s consolidated results of operations and financial condition. | |||||||||||||||
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, short-term investments, accounts receivable and the Note Hedges (Note 9). The Company is also exposed to a variety of market risks, including the effects of changes in foreign currency exchange rates and interest rates. | |||||||||||||||
Cash is maintained in demand accounts at U.S., European and Asian financial institutions that management believes are credit worthy. Deposits in these institutions may exceed the amount of insurance provided on these deposits. | |||||||||||||||
Accounts receivable are derived from services performed for customers located primarily in the U.S., Europe and Asia. The Company attempts to mitigate the credit risk in its trade receivables through its ongoing credit evaluation process and historical collection experience. The Company maintains an allowance for doubtful accounts based upon the expected collectability of its accounts receivable, which takes into consideration an analysis of historical bad debts and other available information. | |||||||||||||||
The following table summarizes net revenue and accounts receivable from customers, in excess of 10% of total net revenue and accounts receivable, respectively, including the related geographic segments as discussed in Note 14. | |||||||||||||||
Revenue | Accounts Receivable | ||||||||||||||
Years Ended December 31, | December 31, | ||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | |||||||||||
VMware, Inc (NALA, EMEA and APJ) | 14 | % | 13 | % | 12 | % | 14 | % | 14 | % | |||||
Fair Value of Financial Instruments | |||||||||||||||
The carrying amounts of certain financial instruments, which include cash equivalents, short-term investments, accounts receivable, accounts payable, accrued payables and other accrued liabilities approximates fair value due to their short-term nature. | |||||||||||||||
Foreign Currency Translation and Remeasurement | |||||||||||||||
Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date. Net revenue and expenses are translated at monthly average exchange rates. The Company accumulates net translation adjustments in equity as a component of accumulated other comprehensive income (loss). For non-U.S. subsidiaries whose functional currency is the U.S. dollar, transactions that are denominated in foreign currencies have been remeasured in U.S. dollars, and any resulting gains and losses are reported in the accompanying consolidated statements of operations. Foreign currency transaction losses of $(1.0) million, $(0.4) million and $(0.7) million, were included in other (expense) income, net during 2013, 2012 and 2011, respectively. | |||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||||||||||||
Accounts receivable are stated at their carrying values net of an allowance for doubtful accounts. The Company evaluates the ongoing collectability of its accounts receivable based on a number of factors such as the credit quality of its customers, the age of accounts receivable balances, collections experience, current economic conditions and other factors that may affect a customer’s ability to pay. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company, a specific allowance for doubtful accounts is estimated and recorded, which reduces the recognized receivable to the estimated amount that management believes will ultimately be collected. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. | |||||||||||||||
The following are changes in the allowance for doubtful accounts during 2013, 2012 and 2011 (in thousands): | |||||||||||||||
December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Balance, beginning of year | $ | 253 | $ | 32 | $ | — | |||||||||
Charged to expense | 123 | 221 | 32 | ||||||||||||
Recoveries | (248 | ) | — | — | |||||||||||
Balance, end of year | $ | 128 | $ | 253 | $ | 32 | |||||||||
Property and Equipment | |||||||||||||||
The Company records property and equipment at cost, less accumulated depreciation and amortization. Depreciation is recorded using the straight-line method over estimated useful lives of seven years for office furniture and equipment, two to three years for computer hardware and two to five years for software. Leasehold improvements are amortized on a straight-line basis over the lesser of the lease term or the estimated useful life of the related assets, ranging from three to ten years. | |||||||||||||||
When assets are retired, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses. When assets are otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from their respective accounts and any gain or loss on such sale or disposal is reflected in other income (expense), net. | |||||||||||||||
Asset Retirement Obligations | |||||||||||||||
The fair value of a liability for an asset retirement obligation (“ARO”) is recognized in the period in which it is incurred. The Company’s asset retirement obligations are primarily associated with leasehold improvements in APJ, which, at the end of a lease, are contractually obligated to be removed in order to comply with the lease agreement. At the inception of a lease with such conditions, the Company records an ARO liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. The associated retirement costs are capitalized and included as part of the carrying value of the long-lived asset and amortized over the useful life of the asset. Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement costs incurred is recognized as an operating gain or loss in the consolidated statements of earnings. The following table summarizes the activity of the Company’s asset retirement obligation liability (in thousands): | |||||||||||||||
Asset retirement obligations as of December 31, 2011 | $ | 596 | |||||||||||||
Additions | 128 | ||||||||||||||
Accretion expense | 28 | ||||||||||||||
Asset retirement obligations as of December 31, 2012 | 752 | ||||||||||||||
Lease settlement | (365 | ) | |||||||||||||
Additions | 366 | ||||||||||||||
Accretion expense | 25 | ||||||||||||||
Asset retirement obligations as of December 31, 2013 | $ | 778 | |||||||||||||
Capitalized Internal-Use Software | |||||||||||||||
Expenditures for software purchases and software developed or obtained for internal use are capitalized and amortized over a period of two to five years on a straight-line basis. For software developed or obtained for internal use, the Company capitalizes direct external costs associated with developing or obtaining internal-use software. In addition, the Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with the development of such applications. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred and are recorded in research and development on the accompanying consolidated statements of operations. Capitalized costs related to internal-use software under development are treated as construction-in-progress until the program, feature or functionality is ready for its intended use, at which time amortization commences. | |||||||||||||||
Goodwill and Intangible Assets | |||||||||||||||
Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually or as circumstances indicate their value may no longer be recoverable. The Company does not have intangible assets with indefinite useful lives other than goodwill. | |||||||||||||||
To assess if goodwill is impaired a qualitative assessment is first performed to determine whether further impairment testing is necessary. If, as a result of the qualitative assessment, the Company considers it more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is performed. This includes a screening for impairment and, in a second step, the measuring of such impairment. The goodwill impairment test is generally performed annually during the fourth fiscal quarter (or earlier if impairment indicators arise). The guidance for goodwill and other intangible assets requires impairment testing based on reporting units. The entire goodwill balance is attributed to the NALA reporting unit. Based on the Company’s results of its qualitative test for goodwill impairment, as of December 31, 2013, it believes that it is more-likely-than-not that the fair value of the NALA reporting unit is greater than its respective carrying value. There was no impairment of goodwill identified during 2013, 2012 and 2011. | |||||||||||||||
Senior Convertible Notes | |||||||||||||||
In accounting for the senior convertible notes (the “Notes”) at issuance, the Company separated the Notes into debt and equity components pursuant to the accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion. The fair value of the debt component was estimated using an interest rate for nonconvertible debt, with terms similar to the Notes, excluding the conversion feature. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The excess of the principal amount of the Notes over the fair value of the debt component was recorded as a debt discount and a corresponding increase in additional paid-in capital. The debt discount is accreted to interest expense over the term of the Notes using the interest method. The amount recorded to additional paid-in capital is not to be remeasured as long as it continues to meet the conditions for equity classification. | |||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||
The Company evaluates the recoverability of its long-lived assets, which include amortizable intangible, including internal-use software and tangible assets. Acquired intangible assets with definite useful lives are amortized over their useful lives on a straight line basis which represents the pattern in which the Company derives benefit from the asset. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. The Company recognizes such impairment in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to such assets. No impairment losses were incurred in the periods presented. | |||||||||||||||
Operating Leases | |||||||||||||||
The Company’s operating lease agreements for office facilities include provisions for certain rent holidays, tenant incentives and escalations in the base price of the rent payment. The Company records rent holidays and rent escalations on a straight-line basis over the lease term and records the difference between expense and cash payments as deferred rent. Tenant incentives are recorded as deferred rent and amortized on a straight-line basis over the lease term. Deferred rent is included in other accrued liabilities on the accompanying consolidated balance sheets. | |||||||||||||||
Deferred Debt Issuance Costs | |||||||||||||||
The Company defers debt issuance costs, which primarily consists of the debt discount on the convertible debt and issuance costs related to the convertible debt. Such costs primarily relates to convertible notes (Note 9) and is amortized using the effective interest method over the term of the convertible debt. The amortization of deferred debt issuance costs is recorded as interest expense. Unamortized deferred debt issuance costs were $39.5 million at December 31, 2013 and $0.1 million as of December 31, 2012. Amortization of deferred debt issuance costs was $2.8 million in 2013, $0.1 million in 2012 and $0.2 million in 2011, respectively. Estimated future amortization of deferred debt issuance costs expense will approximate $7.4 million in 2014 and $8.0 million in 2015 and $8.7 million in 2016. | |||||||||||||||
Comprehensive Income (Loss) | |||||||||||||||
Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses recorded as an element of equity but are excluded from net income (loss). The Company’s other comprehensive income (loss) consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency and unrealized gains and losses on available-for-sale securities. The Company has disclosed accumulated comprehensive other income (loss) as a separate component of stockholders' equity. | |||||||||||||||
Revenue Recognition | |||||||||||||||
The Company’s revenue is derived primary from recurring revenue management. Other revenues which have not been significant, include subscriptions to the Company’s cloud applications and professional services | |||||||||||||||
Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured from customers and no significant obligations remain unfulfilled by the Company. | |||||||||||||||
Recurring Revenue Management | |||||||||||||||
Revenue from recurring revenue management consists of fees earned from the sales of services contracts on behalf of the Company’s customers or assisting in their sales process. The Company’s contract obligations include administering and managing the sales and/or renewal processes for customer contracts; providing adequately trained staff; reporting; and holding periodic business reviews with customers. Customer obligations include providing a detailed listing of sales prospects, access to their databases or systems and sales or marketing materials. Fees are generally based on a fixed percentage of the overall sales value associated with the service contracts. However some customer contracts include performance-based fees determined by the achievement of specified performance metrics. Recurring revenue management contracts entitle the Company to additional fees and adjustments which are invoked in various circumstances including a customer’s failure to provide the Company with a specified minimum value of sales prospects, untimely delivery of customer sales prospect data or other obligations inhibiting the Company’s ability to perform its obligations. In addition, many customer contracts contain early termination fees. | |||||||||||||||
Recurring revenue management services are deemed delivered when customers accept purchased orders from their sales prospects (the end customer) and no significant post-delivery obligations remain for the Company. Fees from recurring revenue management services are recognized on a net basis since the Company acts as an agent on behalf of its customers. The Company does not provide the services being renewed by the end customers, nor does it determine pricing, terms or scope of services to the end customers. Performance incentive fees and early termination fees are recorded in the period when either the performance criteria have been met or a triggering event has occurred. | |||||||||||||||
Subscriptions | |||||||||||||||
Subscription revenue is comprised of subscriptions fees to access the Company’s cloud based applications. Subscription revenue is recognized ratably over the contract term, generally over a period of one to three years, commencing when the cloud applications are made available. The Company's subscription service arrangements are generally non-cancelable and do not contain refund-type provisions. | |||||||||||||||
Professional Services | |||||||||||||||
Professional services revenue is generated from implementation services. Professional services are deemed delivered upon the successful completion of implementation projects or when project milestones have been achieved and accepted by the customer. | |||||||||||||||
Multiple Element Arrangements | |||||||||||||||
The Company enters into multiple element arrangements when customers utilize a combination of recurring revenue management services, subscriptions and professional services. Deliverables are separated at the inception of the arrangement if each deliverable has stand-alone value to the customer. The Company believes that it has stand-alone value for professional services. Arrangement consideration is allocated based on the relative selling prices of each deliverable. However, most fees earned from recurring revenue management services are contingent in nature as the fees earned by the Company are based on performance against the specific terms of each contract. Therefore, contingent fees from revenue management services are excluded from the allocation of relative selling prices at inception of multiple element arrangements. | |||||||||||||||
Selling prices for each deliverable is determined based on the selling price hierarchy of vendor-specific objective evidence (VSOE), third-party evidence (TPE), and best estimated selling price (BESP). Generally, the Company has not been able to establish VSOE for its deliverables as the items have not been sold separately. The Company has not been able to reliably determine the stand-alone selling prices of competitors’ products and services, and therefore cannot rely on TPE for its deliverables. Therefore, the Company utilizes BESP to determine the selling prices of its deliverables. The objective of BESP is to determine the price at which the Company would price a product or service if it were sold on a stand-alone basis. BESP is generally used for offerings that are not typically sold separately or for new offerings including Renew OnDemand. BESP is determined by considering multiple factors including, but not limited to, pricing practices, market conditions, competitive landscape, internal costs, geographies and gross margin. The determination of BESP is made through consultation with and formal approval with management, taking into consideration the Company’s marketing strategy. As these marketing strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to selling prices. | |||||||||||||||
Once arrangement consideration is allocated to the various deliverables in a multiple element arrangement, revenue is recognized when all other revenue recognition criteria has been achieved. | |||||||||||||||
Advertising Costs | |||||||||||||||
Advertising is expensed as incurred as a component of sales and marketing expenses on the consolidated statement of operations. Advertising expense was $0.1 million during 2013, $1.1 million during 2012 and $0.6 million during 2011. | |||||||||||||||
Income Taxes | |||||||||||||||
The Company accounts for income taxes using an asset and liability method, which requires the recognition of taxes payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences of temporary differences that currently exist between the tax basis and the financial reporting basis of our taxable subsidiaries’ assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. | |||||||||||||||
The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. In the normal course of business the Company is subject to examination by taxing authorities throughout the world. These audits include questioning the timing and amount of deductions, the allocation of income among various tax jurisdictions and compliance with federal, state, local and foreign tax laws. The Company accounts for unrecognized tax benefits using a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. The Company records an income tax liability, if any, for the difference between the benefit recognized and measured and the tax position taken or expected to be taken on our tax returns. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision. | |||||||||||||||
Stock-Based Compensation | |||||||||||||||
The Company measures and recognizes compensation expense for all share-based awards made to employees and directors based on estimated fair values. The fair value of employee and director options is estimated on the date of grant using the Black-Scholes option-pricing model. The value of awards that are ultimately expected to vest is recognized as an expense over the requisite service periods. Since share-based compensation expense is based on awards ultimately expected to vest, it is reduced for expected forfeitures. | |||||||||||||||
For awards that are expected to result in a tax deduction, a deferred tax asset is established as the Company recognizes compensation expense. If the tax deduction exceeds the cumulative recorded compensation expense, the tax benefit associated with the excess deduction is considered a windfall benefit. The excess tax benefit from share compensation plans is recorded in members’ equity and classified as a financing cash flow on the consolidated statements of cash flows. | |||||||||||||||
Net Income (Loss) Per Common Share | |||||||||||||||
Basic net income (loss) per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested restricted stock units (“RSUs”). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. | |||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||
In 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. |
The_Company
The Company | 12 Months Ended |
Dec. 31, 2013 | |
Nature of Operations [Abstract] | ' |
The Company | ' |
The Company | |
ServiceSource 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 also offers a purpose-built cloud application to maximize the renewal of subscriptions, maintenance and support contracts and receives subscription fees from its customers for the SaaS product. The Company’s corporate headquarters is located in San Francisco, California. The Company has additional offices in Colorado, Tennessee, the United Kingdom, Ireland, Malaysia, Singapore and Japan. |
Net_Income_Loss_Per_Common_Sha
Net Income (Loss) Per Common Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Income (Loss) Per Common Share | ' | |||||||||||
Net Income (Loss) Per Common Share | ||||||||||||
The basic and diluted net income (loss) per share calculations are presented below (in thousands, except for per share amounts): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Basic net income (loss) per common share | ||||||||||||
Net income (loss) | $ | (22,852 | ) | $ | (42,814 | ) | $ | 15,111 | ||||
Weighted-average common shares outstanding | 78,408 | 74,270 | 66,656 | |||||||||
Basic net income (loss) per share | $ | (0.29 | ) | $ | (0.58 | ) | $ | 0.23 | ||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Diluted net income (loss) per common share | ||||||||||||
Net income (loss) used to determine diluted earnings per common shares | $ | (22,852 | ) | $ | (42,814 | ) | $ | 15,111 | ||||
Weighted-average common shares outstanding used in basic calculation | 78,408 | 74,270 | 66,656 | |||||||||
Adjustment for dilutive potential shares | — | — | 6,929 | |||||||||
Weighted-average common shares for diluted net income (loss) per share | 78,408 | 74,270 | 73,585 | |||||||||
Diluted net income (loss) per share | $ | (0.29 | ) | $ | (0.58 | ) | $ | 0.21 | ||||
Potential shares of common stock that are not included in the determination of diluted net income per share because they are anti-dilutive for the periods presented consist of weighted stock options, non-vested restricted stock, and shares to be purchased under our ESPP having an anti-dilutive effect of 2.0 million, 4.1 million and 0.8 million shares for the years ended December 31, 2013, 2012 and 2011, respectively. |
Cash_cash_equivalents_and_shor
Cash, cash equivalents and short-term investments | 12 Months Ended | |||||||||||||||
Dec. 31, 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. The Company has cash and cash equivalents held on its behalf by a third party of $0.5 million and $0.8 million as of December 31, 2013 and 2012 respectively. Short-term investments consist of readily marketable securities with a remaining maturity of more than three months from time of purchase. The Company classifies all of its cash equivalents and short-term investments as “available for sale,” as these investments are free of trading restrictions. These marketable securities are carried at fair value, with the unrealized gains and losses, net of tax, reported as accumulated other comprehensive income and included as a separate component of stockholders’ equity. Gains and losses are recognized when realized. When the Company determines that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in earnings. Gains and losses are determined using the specific identification method. The Company’s realized gains and losses in the years ended December 31, 2013 and 2012 were insignificant. | ||||||||||||||||
Cash and cash equivalents and short-term investments consisted of the following as of December 31, 2013 and 2012 (in thousands): | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||
Cash | $ | 169,968 | $ | — | $ | — | $ | 169,968 | ||||||||
Cash equivalents: | ||||||||||||||||
Money market mutual funds | 164 | — | — | 164 | ||||||||||||
Total cash and cash equivalents | 170,132 | — | — | 170,132 | ||||||||||||
Short-term investments: | ||||||||||||||||
Corporate bonds | 40,503 | 90 | (10 | ) | 40,583 | |||||||||||
U.S. agency securities | 31,720 | 40 | (13 | ) | 31,747 | |||||||||||
Asset-backed securities | 15,880 | 14 | (12 | ) | 15,882 | |||||||||||
U.S. Treasury securities | 16,742 | 50 | (3 | ) | 16,789 | |||||||||||
Total short-term investments | 104,845 | 194 | (38 | ) | 105,001 | |||||||||||
Cash, cash equivalents and short-term investments | $ | 274,977 | $ | 194 | $ | (38 | ) | $ | 275,133 | |||||||
December 31, 2012 | ||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated 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 effective maturities as of December 31, 2013 (in thousands): | ||||||||||||||||
Amortized | Estimated | |||||||||||||||
Cost | Fair Value | |||||||||||||||
Less than 1 year | $ | 10,168 | $ | 10,174 | ||||||||||||
Due in 1 to 5 years | 94,677 | 94,827 | ||||||||||||||
Total | $ | 104,845 | $ | 105,001 | ||||||||||||
As of December 31, 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 | 12 Months Ended | |||||||||||||||
Dec. 31, 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 December 31, 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 | $ | 164 | $ | 164 | $ | — | ||||||||||
Total cash equivalents | 164 | 164 | — | |||||||||||||
Short-term investments: | ||||||||||||||||
Corporate bonds | 40,583 | — | 40,583 | |||||||||||||
U.S. agency securities | 31,747 | — | 31,747 | |||||||||||||
Asset-backed securities | 15,882 | — | 15,882 | |||||||||||||
U.S. Treasury securities | 16,789 | — | 16,789 | |||||||||||||
Total short-term investments | 105,001 | — | 105,001 | |||||||||||||
Cash equivalents and short-term investments | $ | 105,165 | $ | 164 | $ | 105,001 | ||||||||||
The following table presents the financial instruments that are measured and carried at cost on a nonrecurring basis as of December 31, 2013 (in thousands): | ||||||||||||||||
Carrying Value | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||
Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
Investment in privately held company | $ | 4,500 | $ | — | $ | — | $ | 4,500 | ||||||||
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 approximate fair value of the convertible notes as of December 31, 2013 was $141.2 million. 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 instruments measured at fair value or any long-term debt as of December 31, 2012. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||||
Dec. 31, 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): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Computers and equipment | $ | 14,675 | $ | 14,733 | ||||
Software | 34,467 | 32,982 | ||||||
Leasehold improvements | 11,493 | 10,801 | ||||||
Furniture and fixtures | 9,078 | 8,555 | ||||||
69,713 | 67,071 | |||||||
Less: accumulated depreciation and amortization | (41,715 | ) | (32,558 | ) | ||||
27,998 | 34,513 | |||||||
Depreciation and amortization expense during the year ended December 31, 2013, December 31, 2012 and December 31, 2011, was $11.7 million, $10.0 million and $9.4 million, respectively. | ||||||||
Total property and equipment assets under capital lease at December 31, 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 $2.6 million and $2.1 million, respectively. | ||||||||
The Company capitalized costs of $0, $6.2 million and $6.0 million, during 2013, 2012 and 2011, respectively, related to internal-use software. As of December 31, 2013 and 2012, the carrying value of capitalized costs related to internal-use software, net of accumulated amortization, was $9.3 million and $13.6 million, respectively. Amortization of capitalized costs related to internal-use software was $4.4 million, $3.0 million and $3.9 million during 2013, 2012 and 2011, respectively. |
Other_Accrued_Liabilities
Other Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Other Accrued Liabilities | ' | |||||||
Other Accrued Liabilities | ||||||||
Other current accrued liabilities balances were comprised of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Deferred revenue | $ | 5,905 | $ | 2,295 | ||||
Accrued professional fee | 2,527 | 3,664 | ||||||
Deferred rent obligations | 834 | 986 | ||||||
Other employee related | 374 | 323 | ||||||
ESPP contributions | 892 | 1,059 | ||||||
Accrued other | 4,612 | 2,076 | ||||||
15,144 | 10,403 | |||||||
Credit_Facility_and_Capital_Le
Credit Facility and Capital Leases | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Debt Disclosure [Abstract] | ' | |||
Credit Facility and Capital Leases | ' | |||
Credit Facility and Capital Leases | ||||
Revolving Credit Facility | ||||
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. | ||||
Then, 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 December 31, 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 December 31, 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. | ||||
Capital Leases | ||||
The Company has capital lease agreements that are collateralized by the underlying property and equipment and expire through September 2019. The weighted-average imputed interest rates for capital lease agreements were 2.6%, 2.5% and 3.6% at December 31, 2013, 2012 and 2011, respectively. | ||||
The future contractual maturities of capital lease obligations as of December 31, 2013 are as follows (in thousands): | ||||
Years Ending | ||||
2014 | $ | 270 | ||
2015 | 77 | |||
2016 | 79 | |||
2017 | 81 | |||
2018 | 84 | |||
Thereafter | 66 | |||
Total | $ | 657 | ||
Convertible_Notes_Notes
Convertible Notes (Notes) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Debt Disclosure [Abstract] | ' | |||
Convertible Notes | ' | |||
Convertible Notes | ||||
Senior Convertible Notes | ||||
In August 2013, the Company issued senior convertible notes (the "Notes") raising gross proceeds of $150 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 December 31, 2013 consists of the following (in thousands): | ||||
Principal amount | $ | 150,000 | ||
Unamortized debt discount | (36,085 | ) | ||
Net carrying amount | $ | 113,915 | ||
The following table presents the interest expense recognized related to the Notes for the three months ended December 31, 2013 (in thousands): | ||||
Contractual interest expense at 1.5% per annum | $ | 563 | ||
Amortization of debt issuance costs | 153 | |||
Accretion of debt discount | 1,641 | |||
Total | $ | 2,357 | ||
The net proceeds from the Notes were approximately $145.1 million after payment of the initial purchasers' offering expense. The Company used approximately $31.4 million of the net proceeds from the Notes to pay the cost of the Note Hedges described below, which was partially offset by $21.8 million of the proceeds from the Company's sale of the Warrants also described below. | ||||
Note Hedges | ||||
Concurrent with the issuance of the Notes, the Company entered into note hedges ("Note Hedges") with certain bank counterparties, with respect to its common stock. The Company paid $31.4 million for the Note Hedges. The Note Hedges cover approximately 9.25 million shares of the Company's common stock at a strike price of $16.21 per share. The Note Hedges will expire upon the maturity of the Notes. The Note Hedges are intended to reduce the potential dilution to the Company's common stock upon conversion of the Notes and/or offset the cash payment in excess of the principal amount of the Notes the Company is required to make in the event that the market value per share of the Company's common stock at the time of exercise is greater than the conversion price of the Notes. | ||||
Warrants | ||||
Separately, the Company entered into warrant transactions, whereby it sold warrants to the same bank counterparties as the Note Hedges to acquire approximately 9.25 million shares of the Company's common stock at an initial strike price of $21.02 per share ("Warrants"), subject to anti-dilution adjustments. The Company received proceeds of approximately $21.8 million from the sale of the Warrants. If the fair value per share of the Company's common stock exceeds the strike price of the Warrants, the Warrants will have a dilutive effect on earnings per share, unless the Company elects, subject to certain conditions, to settle the Warrants in cash. | ||||
The amounts paid and received for the Note Hedges and the Warrants have been recorded in additional paid-in capital. The fair value of the Note Hedges and the Warrants are not remeasured through earnings each reporting period. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 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 during 2013, 2012 and 2011 was $8.6 million, $8.5 million and $6.5 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 December 31, 2013 were as follows (in thousands): | ||||
Fiscal Year | ||||
2014 | $ | 8,428 | ||
2015 | 6,362 | |||
2016 | 4,600 | |||
2017 | 4,318 | |||
2018 | 3,756 | |||
Thereafter | 10,820 | |||
Total | $ | 38,284 | ||
Purchase Orders | ||||
The Company had $5.4 million in non-cancelable purchase commitments with our suppliers as of December 31, 2013. | ||||
Litigation | ||||
Bionet Systems, LLC, et al. v. Scout Analytics, Inc., et al., in Superior Court, King County, Washington State | ||||
On January 10, 2014, certain now-former holders of Scout Analytics, Inc. (“Scout”) capital stock filed a lawsuit against Scout and some of its directors and their employers regarding the then-pending acquisition of Scout by the Company. The plaintiffs have asserted claims against all defendants for breach of fiduciary duty, minority shareholder oppression, corporate waste, injunctive relief and unjust enrichment. In their complaint, the plaintiffs seek damages and payment of their attorneys’ fees and costs. | ||||
The costs of such litigation are expected to be covered by Scout’s insurance and/or from the escrow amounts held back from the merger consideration paid for Scout and the other indemnification obligations of the former Scout holders of capital stock. | ||||
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 is remote, not reasonable possibly or not probable of loss and would not materially affect its consolidated financial position, results of operations or cash flows |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||
Dec. 31, 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, by delegation to its compensation committee, administers the 2011 Plan and has authority to determine the directors, officers, employees and consultants to whom options, restricted stock units or restricted stock awards may be granted, the option price or restricted stock purchase price, the timing of when each share is exercisable and the duration of the exercise period and the nature of any restrictions or vesting periods applicable to an option or restricted stock grant | ||||||||||||||||
Under the 2011 Plan, options granted are generally subject to a four-year vesting period whereby 25% of the options become vested after a one-year period and the remainder then vests monthly through the end of the vesting period. Vested options may be exercised up to ten years from the grant date, as defined in the 2011 Plan. Vested but unexercised options expire three months after termination of employment with the Company. The restricted stock units and awards typically vest over four years with annual vesting as to one-fourth of the grant on each anniversary date with vesting contingent upon employment with the Company. | ||||||||||||||||
The Company 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 applied an estimated forfeiture rate to unvested awards when computing the share compensation expenses. The Company estimated the forfeiture rate for unvested awards based on its historical experience on employee turnover behavior and other factors. | ||||||||||||||||
At the end of each fiscal year, the share reserve under the 2011 Plan increases automatically by an amount equal to 4% of the outstanding shares as of the end of that most recently completed fiscal year or 3,840,000 shares, whichever is less. On January 1, 2013, 3.0 million additional shares were reserved under the 2011 Equity Incentive Plan pursuant to the automatic increase. | ||||||||||||||||
Stock Option Exchange Program | ||||||||||||||||
On December 21, 2012, the Company launched a stock option exchange program (the “Offer”) pursuant to which eligible employees were able to exchange certain outstanding out-of-the money stock options with an exercise price greater than $6.03 per share for a lesser amount of new stock options. The Offer expired on January 22, 2013. As a result of the Offer, options to purchase an aggregate of 2.8 million shares of the Company’s common stock were accepted for exchange (representing approximately 80% of the total options eligible for exchange). All surrendered options were cancelled effective as of the expiration of the Offer, and in exchange for those options, the Company issued a total of approximately 1.0 million new stock options. The exercise price per share of each new option granted pursuant to the Offer was $6.03 per share, the closing price of the Company’s common stock on January 22, 2013. The new stock options have the same vesting schedules as the options tendered for exchange and the new options are not exercisable for a one-year period from the Offer’s expiration date. The Offer did not result in any significant incremental stock-based compensation expense. | ||||||||||||||||
Determining Fair Value of Stock Options | ||||||||||||||||
The estimated fair value of stock options and awards granted during 2013, 2012 and 2011, was approximately $29.3 million, $41.7 million and $27.1 million, respectively. The Company estimates the fair value of stock option awards at the date of grant using the Black-Scholes option-pricing model. Options are granted with an exercise price equal to the fair value of the common stock as of the date of grant. Compensation expense is amortized net of estimated forfeitures on a straight-line basis over the requisite service period of the options, which is generally four years. Restricted stock vest over four years and upon vesting, entitles the holder to one share of common stock for each restricted stock and has an exercise price of $0.0001 per share, which is equal to the par value of the Company’s common stock. The fair value of the restricted stock is based on the Company’s closing stock price on the date of grant, and compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the vesting period. | ||||||||||||||||
The fair value of each grant of options during 2013, 2012 and 2011 was determined by the Company using the methods and assumptions discussed below. The Company stratifies its population of outstanding share options into two relatively homogeneous groups to estimate the expected term and forfeiture rate of options grants. Each of these inputs is subjective and generally requires significant judgment to determine. | ||||||||||||||||
Expected Term—The expected term represents the period that the Company’s share-based awards are expected to be outstanding. The Company calculated the expected term of share options using four data points: options exercised, options expired, options forfeited and options outstanding. The weighted-average of the four data points were used to calculate the expected term. | ||||||||||||||||
Expected Volatility—The expected volatility was based on the historical stock volatility of several of the Company’s self-designated publicly listed comparable companies over a period equal to the expected terms of the options, as the Company has limited trading history to use the volatility of its own common shares. | ||||||||||||||||
Risk-Free Interest Rate—The risk-free interest rate was based on the implied yield on U.S. Treasury zero-coupon issues for each option grant date with maturities approximately equal to the option’s contractual term. | ||||||||||||||||
Expected Dividend Yield—The Company has not paid dividends on its common shares nor does it expect to pay dividends in the foreseeable future. | ||||||||||||||||
Forfeiture Rate—The Company estimated its forfeiture rate based on an analysis of its actual forfeitures and will continue to evaluate the adequacy of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior, and other factors. The impact from a forfeiture-rate adjustment will be recognized in full in the period of adjustment, if the actual number of future forfeitures differs from that estimated by the Company. | ||||||||||||||||
The weighted average Black-Scholes option-pricing model assumptions for years ended 2013, 2012 and 2011 were as follows: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Expected term (in years) | 5 | 5.05 | 5.26 | |||||||||||||
Expected volatility | 43 | % | 46 | % | 50 | % | ||||||||||
Risk-free interest rate | 1.19 | % | 0.76 | % | 1.5 | % | ||||||||||
Expected dividend yield | — | % | — | % | — | % | ||||||||||
Employee Stock Purchase Plan | ||||||||||||||||
The Company’s 2011 Employee Stock Purchase Plan (the “ESPP”) is intended to qualify under Section 423 of the Internal Revenue Code of 1986. Under the ESPP, employees are eligible to purchase common stock through payroll deductions of up to 10% of their eligible compensation, subject to any plan limitations. The purchase price of the shares on each purchase date is equal to 85% of the lower of the fair market value of the Company’s common stock on the first and last trading days of each six-month offering period. | ||||||||||||||||
The Company estimates the fair value of purchase rights under the ESPP using the Black-Scholes option-pricing model. The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes option valuation model and the straight-line attribution approach with the following weighted-average assumptions: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Expected term (in years) | 0.5 -1.0 | 0.5 | 0.39-0.50 | |||||||||||||
Expected volatility | 27 | % | 45 | % | 36%-45% | |||||||||||
Risk-free interest rate | 0.13%-0.17% | 0.14 | % | 0.18%-0.07% | ||||||||||||
Expected dividend yield | — | % | — | % | — | % | ||||||||||
The ESPP provides that additional shares are reserved under the plan annually on the first day of each fiscal year in an amount equal to the lesser of (i) 1.5 million shares, (ii) one percent of the outstanding shares of common stock on the last day of the immediately preceding fiscal year, or (iii) an amount determined by the board of directors and/or the compensation committee of the board of directors. As of December 31, 2013, 686,957 shares had been issued under the ESPP and 1,695,089 shares were available for future issuance. | ||||||||||||||||
Stock Awards Issued to Non Employees | ||||||||||||||||
During 2011, the Company granted stock options to purchase 10,000 common shares, to non employees for professional services at exercise prices of $6.20 per share. There were no stock awards issued to non employees in 2013 and 2012. Stock-based compensation expense related to options granted to non employees was $0.1 million during 2011. | ||||||||||||||||
Option and RSU activity under the Option Plans for 2013, 2012 and 2011 was as follows (shares and aggregate intrinsic value in thousands): | ||||||||||||||||
Options Outstanding | Restricted Stock | |||||||||||||||
Outstanding | ||||||||||||||||
Shares | Number | Weighted- | Number | |||||||||||||
Available | of Shares | Average | of Shares | |||||||||||||
for Grant | Exercise | |||||||||||||||
Price | ||||||||||||||||
Outstanding—January 1, 2011 | 2,872 | 17,723 | $ | 4.32 | — | |||||||||||
Additional shares reserved under the 2011 Equity Incentive Plan | 5,760 | — | — | — | ||||||||||||
Granted | (2,996 | ) | 2,186 | 13.44 | 810 | |||||||||||
Exercised | — | (3,808 | ) | 3.75 | — | |||||||||||
Forfeited | 774 | (766 | ) | 5.58 | (8 | ) | ||||||||||
Outstanding—December 31, 2011 | 6,410 | 15,335 | 5.7 | 802 | ||||||||||||
Additional shares reserved under the 2011 Equity Incentive Plan | 2,903 | — | — | — | ||||||||||||
Granted | (6,523 | ) | 2,954 | 12.3 | 3,569 | |||||||||||
Options exercised/ Restricted stock released | — | (2,100 | ) | 3.84 | (209 | ) | ||||||||||
Forfeited | 1,234 | (1,000 | ) | 9.57 | (234 | ) | ||||||||||
Outstanding—December 31, 2012 | 4,024 | 15,189 | 6.98 | 3,928 | ||||||||||||
Additional shares reserved under the 2011 equity incentive plan | 3,025 | — | — | — | ||||||||||||
Granted | (6,565 | ) | 3,023 | 7.43 | 3,542 | |||||||||||
Options exercised/ Restricted stock released | — | (5,147 | ) | 4.47 | (920 | ) | ||||||||||
Canceled/Forfeited | 5,271 | (4,157 | ) | 12.77 | (1,119 | ) | ||||||||||
Outstanding — December 31, 2013 | 5,755 | 8,908 | 5.89 | 5,431 | ||||||||||||
Number | Weighted- | Weighted- | Aggregate | |||||||||||||
of Shares | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | |||||||||||||||
Life (Years) | ||||||||||||||||
Options vested and expected to vest—December 31, 2013 | 8,454 | $ | 5.8 | 6.16 | $ | 23,764 | ||||||||||
Options exercisable—December 31, 2013 | 5,440 | 4.98 | 4.96 | 19,082 | ||||||||||||
Restricted stock expected to vest- December 31, 2013 | 4,159 | — | 1.59 | 34,856 | ||||||||||||
The weighted-average grant date fair value of options granted during 2013, 2012 and 2011 was $3.18, $4.98 and $6.53, respectively. The weighted average grant date fair values of restricted stock units granted during 2013, 2012 and 2011 was $8.26, $11.69 and $15.92, respectively. | ||||||||||||||||
The aggregate intrinsic value of options exercised under the Option Plans was $23.9 million, $21.9 million and $42.2 million, in 2013, 2012 and 2011, respectively, determined as of the date of option exercise. The intrinsic value is calculated as the difference between the fair value of the common shares on the exercise date and the exercise price of the option shares. The total estimated fair value of share options vested in 2013, 2012 and 2011 was $15.9 million, $13.1 million and $11.4 million, respectively. | ||||||||||||||||
Stock-based compensation expense is based on applying estimated fair values determined at the grant date to those options granted in the year that are ultimately expected to vest. Accordingly, the fair values calculated on the total population of grants have been reduced for estimated forfeitures expected to occur in the future. | ||||||||||||||||
The table below summarizes stock-based compensation expense as allocated within the Company’s consolidated statements of operations (in thousands): | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | ||||||||||||||||
Includes stock-based compensation of: | ||||||||||||||||
Cost of revenue | $ | 3,303 | $ | 2,772 | $ | 1,877 | ||||||||||
Sales and marketing | 9,831 | 8,146 | 4,456 | |||||||||||||
Research and development | 2,414 | 1,880 | 1,167 | |||||||||||||
General and administrative | 8,072 | 8,077 | 4,099 | |||||||||||||
Total stock-based compensation | $ | 23,620 | $ | 20,875 | $ | 11,599 | ||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013 (shares in thousands): | ||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number of | Weighted- | Weighted- | Number of | Weighted- | |||||||||||
Shares | Average | Average | Shares | Average | ||||||||||||
Outstanding | Remaining | Exercise | Exercisable | Exercise | ||||||||||||
Contract Life | Price per | Price | ||||||||||||||
(in Years) | Share | |||||||||||||||
$0.20 to $1.49 | 90 | 1.9 | $ | 0.97 | 90 | $ | 0.97 | |||||||||
$4.26 | 2,263 | 3.32 | 4.26 | 2,263 | 4.26 | |||||||||||
$4.60 to $5.10 | 1,804 | 6.37 | 4.74 | 1,524 | 4.69 | |||||||||||
$5.80 to $6.03 | 2,338 | 6.31 | 5.89 | 1,297 | 5.88 | |||||||||||
$6.20 to $17.98 | 2,413 | 9.16 | 8.45 | 266 | 9.84 | |||||||||||
8,908 | 6.29 | 5.89 | 5,440 | 4.98 | ||||||||||||
As of December 31, 2013 and 2012 there was $49.5 million and $55.6 million of unrecognized compensation expense related to nonvested share-based compensation arrangements granted under the 2011 Plan, which is expected to be recognized over a weighted-average period of 2.83 years and 2.49 years, respectively. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ' |
Employee Benefit Plan | ' |
Employee Benefit Plan | |
The Company maintains a 401(k) defined contribution benefit plan that covers domestic employees who have attained 21 years of age and provide at least 20 hours of service per week. This plan allows U.S. employees to contribute up to 90% of their pre-tax salary in certain investments at the discretion of the employee, up to maximum annual contribution limits established by the U.S. Department of Treasury. During 2013, 2012 and 2011, the Company matched up to 50% of employee contributions up to an annual limit of $2,000. Matching contributions by the Company are fully vested upon completion of the first year of employment. Employer matching contributions, which may be discontinued at the Company’s discretion, amounted to $1.3 million, $1.1 million and $1.0 million, during 2013, 2012 and 2011, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Loss from continuing operations before provision for (benefit from) income taxes for the Company’s domestic and international operations was as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Domestic | $ | (20,124 | ) | $ | (10,381 | ) | $ | (3,664 | ) | |||
International | (1,857 | ) | (326 | ) | (608 | ) | ||||||
Loss before provision for income taxes | $ | (21,981 | ) | $ | (10,707 | ) | $ | (4,272 | ) | |||
The income tax provision (benefit) consisted of the following (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | (489 | ) | $ | 1,116 | |||||
Foreign | 501 | 1,112 | 424 | |||||||||
State and local | 153 | 144 | 98 | |||||||||
Total current income tax provision | 654 | 767 | 1,638 | |||||||||
Deferred: | ||||||||||||
Federal | — | 25,779 | (16,756 | ) | ||||||||
Foreign | (90 | ) | 76 | 56 | ||||||||
State and local | 307 | 5,485 | (4,321 | ) | ||||||||
Total deferred income tax provision (benefit) | 217 | 31,340 | (21,021 | ) | ||||||||
Income tax provision (benefit) | $ | 871 | $ | 32,107 | $ | (19,383 | ) | |||||
The following table provides a reconciliation of income taxes provided at the federal statutory rate of 34% to the income tax provision (benefit) (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. income tax at federal statutory rate | $ | (7,464 | ) | $ | (3,640 | ) | $ | (1,452 | ) | |||
Provision from (income) loss attributable to LLC (through February 28, 2011) | — | — | 1,470 | |||||||||
Benefit from change in tax status | — | — | (20,740 | ) | ||||||||
State income taxes, net of federal benefit | 544 | 391 | 52 | |||||||||
Foreign tax rate differential | 1,000 | 674 | 415 | |||||||||
Permanent differences | 231 | 364 | 876 | |||||||||
State tax credits | (1,824 | ) | (1,040 | ) | (228 | ) | ||||||
Valuation allowance | 8,366 | 35,690 | 196 | |||||||||
Other, net | 18 | (332 | ) | 28 | ||||||||
Income tax provision (benefit) | $ | 871 | $ | 32,107 | $ | (19,383 | ) | |||||
Effective March 1, 2011, the parent company elected to be treated as a corporation under Subchapter C of Chapter 1 of the United States Internal Revenue Code, and therefore became subject to federal and state tax expense beginning March 1, 2011. As a result of this tax election, the Company recorded a net deferred tax asset and a one-time non-cash tax benefit of $20.7 million. On March 24, 2011, the LLC converted into a Delaware corporation and merged with two of its corporate equity holders. The Company recorded an additional deferred tax asset of $8.1 million and a corresponding adjustment to paid-in capital as a result of the merger. | ||||||||||||
In December 2013, Malaysia granted a ten year tax holiday to the Company’s Malaysia subsidiary, commencing with its fiscal year beginning January 1, 2014. This resulted in a tax benefit in fiscal 2013 of approximately $0.2 million from the elimination of the Malaysia subsidiary’s deferred tax liabilities. The earnings per share benefit in 2013 is less than $0.01. | ||||||||||||
The following table provides the effect of temporary differences that created deferred income taxes as of December 31, 2013 and 2012. Deferred tax assets and (liabilities) represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective periods (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Current | ||||||||||||
Accrued liabilities | $ | 4,157 | $ | 3,580 | ||||||||
State taxes | — | — | ||||||||||
Allowance for doubtful accounts | 32 | 99 | ||||||||||
Current deferred tax assets | 4,189 | 3,679 | ||||||||||
Non-current | ||||||||||||
Share-based compensation expense | 13,126 | 12,261 | ||||||||||
Net operating loss carryforwards | 16,452 | 9,324 | ||||||||||
State tax credits | 4,634 | 2,487 | ||||||||||
Unrealized loss on foreign exchange transactions | — | 266 | ||||||||||
Amortization of tax intangibles | 9,486 | 11,751 | ||||||||||
Other, net | 194 | (1,805 | ) | |||||||||
Non-current deferred tax assets | 43,892 | 34,284 | ||||||||||
Total current and non-current | 48,081 | 37,963 | ||||||||||
Deferred tax liabilities | ||||||||||||
Property & equipment | (1,204 | ) | (203 | ) | ||||||||
Convertible debt costs | (2,571 | ) | — | |||||||||
Gross deferred tax assets | 44,306 | 37,760 | ||||||||||
Less: Valuation allowance | (42,155 | ) | (35,392 | ) | ||||||||
Net deferred tax assets | $ | 2,151 | $ | 2,368 | ||||||||
As of December 31, 2013 and 2012, management assessed the realizability of deferred tax assets. Management evaluated the need for and amount of any valuation allowance for deferred tax assets on a jurisdictional basis. This evaluation utilizes the framework contained in ASC 740, Income Taxes, wherein management analyzes all positive and negative evidence available at the balance sheet date to determine whether all or some portion of our deferred tax assets will not be realized. Under this guidance, a valuation allowance must be established for deferred tax assets when it is more likely than not (a probability level of more than 50 percent) that they will not be realized. In assessing the realization of our deferred tax assets, we consider all available evidence, both positive and negative. | ||||||||||||
In concluding on the evaluation, management placed significant emphasis on guidance in ASC 740, which states that “[a] cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome.” Based upon available evidence, it was concluded on a more-likely-than-not basis that most of our U.S. deferred tax assets were not realizable as of December 31, 2013. 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 December 31, 2013. Additionally, company forecasts indicated a continuation of U.S adjusted pretax losses for calendar 2013. Management also concluded on a more-likely-than-not basis that our Singapore and Ireland deferred tax assets were not realizable, using the analysis prescribed in ASC 740. Other factors were considered but provided neither positive nor negative objectively-verifiable evidence as to the realization of our deferred tax assets. The remaining deferred tax assets at December 31, 2013 relate to jurisdictions in which we have net adjusted historical pretax profits and sufficient forecast profitability to assure future realization of such deferred tax assets | ||||||||||||
In 2012, management determined that it was not more likely than not that the deferred tax assets will be realized with respect to US federal and state deferred tax assets, except for certain US state deferred tax assets where the Company’s subsidiary has profitable operations. A valuation allowance was also provided in 2012 with respect to net operating loss carryforwards in Singapore and Japan. | ||||||||||||
The net change in the valuation allowance for the years ended December 31, 2013 and 2012 was an increase of $6.8 million and $35.2 million, respectively. | ||||||||||||
As of December 31, 2013, the Company had net operating loss carryforwards of approximately $91.8 million for federal income tax purposes and approximately $66.2 million for California income tax purposes. These losses are available to reduce taxable income and expire at various dates beginning in 2016. Approximately $50 million of federal net operating loss carryforwards and $35.2 million of California net operating loss carryforwards are related to excess tax benefits from stock-based compensation. The tax benefits associated with net operating losses attributed to stock-based compensation will be credited to additional paid-in capital when realized. The Company uses a “with and without” approach to determine the utilization of excess tax benefits from stock-based compensation. The Company considers only the direct impact of stock option awards when calculating the amount of windfalls or shortfalls attributable to stock-based compensation. | ||||||||||||
At December 31, 2013, the Company had $2.4 million of US federal research and development credits which expire beginning in 2031, and $2.6 million of California research and development credits which do not expire. The Company also has $0.2 million of California Enterprise Zone Credits which expire beginning in 2024 if not utilized, and $1.9 million of other state tax credits which expire beginning in 2024 if not utilized. | ||||||||||||
Utilization of the Company’s net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration or elimination of the net operating loss and tax credit carryforwards before utilization. In connection with the conversion of the LLC into a Delaware corporation, two of its equity holders, GA SS Holdings LLC and SSLLC Holdings, Inc were merged with and into ServiceSource International, Inc. As a result, the Company acquired the net operating loss carryforwards of these two entities subject to the ownership change limitations. Management believes that the limitation will not limit utilization of the carryforwards prior to their expiration. | ||||||||||||
The Company’s income taxes payable has been adjusted for the tax benefits associated with employee stock option transactions. These adjustments to stockholders’ equity amounted to $0.4 million debit and $1.5 million credit for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. In the normal course of business the Company is subject to examination by taxing authorities throughout the world. These audits could include examining the timing and amount of deductions, the allocation of income among various tax jurisdictions and compliance with federal, state, local and foreign tax laws. The Company is currently under audit by the state of California for its 2008 through 2010 tax years. The 2008 through 2013 tax years generally remain subject to examination by federal, state and foreign tax authorities. | ||||||||||||
The Company has implemented the provisions of ASC 740-10, Accounting for Uncertainty in Income Taxes. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | ||||||||||||
Balance as of December 31, 2012 | $ | 433 | ||||||||||
Additions based on tax positions related to the current year | 317 | |||||||||||
Additions for tax positions of prior years | 130 | |||||||||||
Reductions for tax positions of prior years | — | |||||||||||
Balance as of December 31, 2013 | $ | 880 | ||||||||||
At December 31, 2013, the Company had a liability for unrecognized tax benefits of $0.9 million, $51,000 of which, if recognized, would affect the company’s effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. | ||||||||||||
The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the year ended December 31, 2013, the Company recognized and accrued approximately $2,000 of interest. During the years ended December 31, 2012 and 2011, the Company recognized $3,000 and zero, respectively, of interest or penalties related to unrecognized tax | ||||||||||||
The Company considers its undistributed earnings of its foreign subsidiaries indefinitely reinvested in foreign operations and has not provided for U.S. income taxes on such earnings. As of December 31, 2013 the Company’s unremitted earnings from its foreign subsidiaries was $3.2 million. The determination of the unrecognized deferred U.S. income tax liability, if any, is not practicable due to the complexities associated with its hypothetical calculation. |
Reportable_Segments
Reportable Segments | 12 Months Ended | |||||||||||
Dec. 31, 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 Kuala Lumpur, Malaysia and Singapore related primarily to end customers in Asia Pacific and Japan. | ||||||||||||
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. | ||||||||||||
As the Company continues to shift its business from managed services to a subscription model with its technology platform, both organically and through acquisition, it expects cloud and data services to represent an increasing percentage of its revenue. The Company expects to present two operating segments consisting of managed services and cloud and data services beginning in the first quarter of 2014 as relevant financial information will be prepared for each of the two operating segments that will be used by the chief operating decision maker to allocate resources among the two segments and to evaluate the financial performance of the two segments. | ||||||||||||
Summarized financial information by geographic location for 2013, 2012 and 2011 based on the Company’s internal management reporting and as utilized by the Company’s CODM, is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net revenue | ||||||||||||
NALA | $ | 173,188 | $ | 150,041 | $ | 127,430 | ||||||
EMEA | 73,839 | 66,902 | 58,344 | |||||||||
APJ | 25,455 | 26,760 | 19,727 | |||||||||
Total net revenue | $ | 272,482 | $ | 243,703 | $ | 205,501 | ||||||
Direct profit contribution | ||||||||||||
NALA | 90,302 | 80,153 | 72,333 | |||||||||
EMEA | 39,040 | 35,517 | 27,756 | |||||||||
APJ | 7,711 | 7,117 | 1,945 | |||||||||
Total direct profit contribution | 137,053 | 122,787 | 102,034 | |||||||||
Adjustments: | ||||||||||||
Stock-based compensation | (3,303 | ) | (2,772 | ) | (1,877 | ) | ||||||
Overhead allocations and other, net | (23,717 | ) | (12,633 | ) | (8,062 | ) | ||||||
Gross Profit | $ | 110,033 | $ | 107,382 | $ | 92,095 | ||||||
The majority of the Company’s assets at December 31, 2013 and 2012 were attributable to its U.S. operations. Property and equipment information is based on the physical location of the assets. The following table presents the long-lived assets, consisting of property and equipment, by geographic location (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
NALA | $ | 22,976 | $ | 29,783 | ||||||||
EMEA | 1,614 | 1,120 | ||||||||||
APJ | 3,408 | 3,610 | ||||||||||
Total property and equipment, net | $ | 27,998 | $ | 34,513 | ||||||||
Additions to long-lived assets in 2013 were $2.9 million, $1.3 million and $1.3 million in NALA, EMEA and APJ, respectively. In 2012, additions to long-lived assets including internally-developed software were $22.7 million, $0.3 million and $2.1 million in NALA, EMEA and APJ, respectively. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ' | |||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | |||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||||||||||||||||||
Selected summarized quarterly financial information for the years ended December 31, 2013 and 2012 is as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | |||||||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
Net revenue | $ | 77,182 | $ | 66,482 | $ | 67,697 | $ | 61,121 | $ | 67,345 | $ | 59,090 | $ | 59,694 | $ | 57,574 | ||||||||||||||||
Gross profit | 31,581 | 26,752 | 29,077 | 22,623 | 32,026 | 24,546 | 25,812 | 24,998 | ||||||||||||||||||||||||
Loss from operations | 384 | 3,656 | 3,867 | 9,655 | 197 | 3,382 | 3,219 | 3,135 | ||||||||||||||||||||||||
Loss before provision for income taxes | 3,307 | 4,749 | 4,162 | 9,762 | 667 | 3,262 | 3,552 | 3,226 | ||||||||||||||||||||||||
Net loss (1) | $ | 1,988 | $ | 5,502 | $ | 4,906 | $ | 10,455 | $ | 1,185 | $ | 3,584 | $ | 36,769 | $ | 1,276 | ||||||||||||||||
Net loss per common share: | ||||||||||||||||||||||||||||||||
Basic and diluted | $ | 0.02 | $ | 0.07 | $ | 0.06 | $ | 0.14 | $ | 0.02 | $ | 0.05 | $ | 0.5 | $ | 0.02 | ||||||||||||||||
-1 | The three months ended June 30, 2012 includes the effect of providing a valuation allowance of $33.1 million for a substantial portion of the Company’s deferred tax assets. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 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. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On January 22, 2014, the Company acquired Scout Analytics, Inc., a leading provider of predictive analytics for subscription businesses, which will become a wholly owned subsidiary of the Company. The total purchase consideration was $32.8 million net of debt, paid in cash. The Company is currently completing the preliminary purchase price allocation and expects the majority of the purchase consideration to be allocated to intangible assets and goodwill. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Consolidation | ' |
Basis of Consolidation | |
The accompanying consolidated financial statements include the accounts of ServiceSource International, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amount of net revenue and expenses during the reporting period. | |
The Company’s significant accounting judgments and estimates include, but are not limited to: revenue recognition; the valuation and recognition of stock-based compensation, recognition and measurement of current and deferred income tax assets and liabilities and uncertain tax positions and the provision for bad debts. | |
The Company bases its estimates and judgments on historical experience and on various assumptions that it believes are reasonable under the circumstances. However, future events are subject to change and estimates and judgments routinely require adjustment. Actual results may differ from these estimates, and these differences may be material. | |
Segments | ' |
Segments | |
The Company defines an operating segment on the same basis that it uses internally to evaluate performance. Management has determined that the Company has three operating segments, as it reports financial information across three geographic regions to its chief executive officer, who is the Company’s chief operating decision maker. The Company’s three operating and reportable segments are NALA (North America and Latin America), EMEA (Europe, Middle East and Africa) and APJ (Asia Pacific-Japan). | |
Significant Risks and Uncertainties | ' |
Significant Risks and Uncertainties | |
The Company is subject to certain risks and uncertainties that could have a material and adverse effect on its future financial position or results of operations. The Company’s customers are primarily high technology | |
companies and any downturn in these industries, changes in customers’ sales strategies, or widespread shift away from end customers purchasing maintenance and support contracts could have an adverse impact on the Company’s consolidated results of operations and financial condition. | |
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, short-term investments, accounts receivable and the Note Hedges (Note 9). The Company is also exposed to a variety of market risks, including the effects of changes in foreign currency exchange rates and interest rates. | |
Cash is maintained in demand accounts at U.S., European and Asian financial institutions that management believes are credit worthy. Deposits in these institutions may exceed the amount of insurance provided on these deposits. | |
Accounts receivable are derived from services performed for customers located primarily in the U.S., Europe and Asia. The Company attempts to mitigate the credit risk in its trade receivables through its ongoing credit evaluation process and historical collection experience. The Company maintains an allowance for doubtful accounts based upon the expected collectability of its accounts receivable, which takes into consideration an analysis of historical bad debts and other available information. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The carrying amounts of certain financial instruments, which include cash equivalents, short-term investments, accounts receivable, accounts payable, accrued payables and other accrued liabilities approximates fair value due to their short-term nature. | |
Foreign Currency Translation and Remeasurement | ' |
Foreign Currency Translation and Remeasurement | |
Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date. Net revenue and expenses are translated at monthly average exchange rates. The Company accumulates net translation adjustments in equity as a component of accumulated other comprehensive income (loss). For non-U.S. subsidiaries whose functional currency is the U.S. dollar, transactions that are denominated in foreign currencies have been remeasured in U.S. dollars, and any resulting gains and losses are reported in the accompanying consolidated statements of operations. | |
Accounts Receivable and Allowance for Doubtful Accounts | ' |
Accounts Receivable and Allowance for Doubtful Accounts | |
Accounts receivable are stated at their carrying values net of an allowance for doubtful accounts. The Company evaluates the ongoing collectability of its accounts receivable based on a number of factors such as the credit quality of its customers, the age of accounts receivable balances, collections experience, current economic conditions and other factors that may affect a customer’s ability to pay. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company, a specific allowance for doubtful accounts is estimated and recorded, which reduces the recognized receivable to the estimated amount that management believes will ultimately be collected. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. | |
Property and Equipment | ' |
Property and Equipment | |
The Company records property and equipment at cost, less accumulated depreciation and amortization. Depreciation is recorded using the straight-line method over estimated useful lives of seven years for office furniture and equipment, two to three years for computer hardware and two to five years for software. Leasehold improvements are amortized on a straight-line basis over the lesser of the lease term or the estimated useful life of the related assets, ranging from three to ten years. | |
When assets are retired, the cost and accumulated depreciation and amortization are removed from their respective accounts and any loss on such retirement is reflected in operating expenses. When assets are otherwise disposed of, the cost and related accumulated depreciation and amortization are removed from their respective accounts and any gain or loss on such sale or disposal is reflected in other income (expense), net. | |
Asset Retirement Obligations | ' |
Asset Retirement Obligations | |
The fair value of a liability for an asset retirement obligation (“ARO”) is recognized in the period in which it is incurred. The Company’s asset retirement obligations are primarily associated with leasehold improvements in APJ, which, at the end of a lease, are contractually obligated to be removed in order to comply with the lease agreement. At the inception of a lease with such conditions, the Company records an ARO liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. The associated retirement costs are capitalized and included as part of the carrying value of the long-lived asset and amortized over the useful life of the asset. Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement costs incurred is recognized as an operating gain or loss in the consolidated statements of earnings. | |
Capitalized Internal-Use Software | ' |
Capitalized Internal-Use Software | |
Expenditures for software purchases and software developed or obtained for internal use are capitalized and amortized over a period of two to five years on a straight-line basis. For software developed or obtained for internal use, the Company capitalizes direct external costs associated with developing or obtaining internal-use software. In addition, the Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with the development of such applications. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred and are recorded in research and development on the accompanying consolidated statements of operations. Capitalized costs related to internal-use software under development are treated as construction-in-progress until the program, feature or functionality is ready for its intended use, at which time amortization commences. | |
Goodwill and Intangible Assets | ' |
Goodwill and Intangible Assets | |
Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually or as circumstances indicate their value may no longer be recoverable. The Company does not have intangible assets with indefinite useful lives other than goodwill. | |
To assess if goodwill is impaired a qualitative assessment is first performed to determine whether further impairment testing is necessary. If, as a result of the qualitative assessment, the Company considers it more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is performed. This includes a screening for impairment and, in a second step, the measuring of such impairment. The goodwill impairment test is generally performed annually during the fourth fiscal quarter (or earlier if impairment indicators arise). The guidance for goodwill and other intangible assets requires impairment testing based on reporting units. The entire goodwill balance is attributed to the NALA reporting unit. | |
Senior Convertible Notes | ' |
Senior Convertible Notes | |
In accounting for the senior convertible notes (the “Notes”) at issuance, the Company separated the Notes into debt and equity components pursuant to the accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion. The fair value of the debt component was estimated using an interest rate for nonconvertible debt, with terms similar to the Notes, excluding the conversion feature. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The excess of the principal amount of the Notes over the fair value of the debt component was recorded as a debt discount and a corresponding increase in additional paid-in capital. The debt discount is accreted to interest expense over the term of the Notes using the interest method. The amount recorded to additional paid-in capital is not to be remeasured as long as it continues to meet the conditions for equity classification. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
The Company evaluates the recoverability of its long-lived assets, which include amortizable intangible, including internal-use software and tangible assets. Acquired intangible assets with definite useful lives are amortized over their useful lives on a straight line basis which represents the pattern in which the Company derives benefit from the asset. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. The Company recognizes such impairment in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to such assets. No impairment losses were incurred in the periods presented. | |
Operating Leases | ' |
Operating Leases | |
The Company’s operating lease agreements for office facilities include provisions for certain rent holidays, tenant incentives and escalations in the base price of the rent payment. The Company records rent holidays and rent escalations on a straight-line basis over the lease term and records the difference between expense and cash payments as deferred rent. Tenant incentives are recorded as deferred rent and amortized on a straight-line basis over the lease term. Deferred rent is included in other accrued liabilities on the accompanying consolidated balance sheets. | |
Deferred Debt Issuance Costs | ' |
Deferred Debt Issuance Costs | |
The Company defers debt issuance costs, which primarily consists of the debt discount on the convertible debt and issuance costs related to the convertible debt. Such costs primarily relates to convertible notes (Note 9) and is amortized using the effective interest method over the term of the convertible debt. The amortization of deferred debt issuance costs is recorded as interest expense. | |
Comprehensive Income (Loss) | ' |
Comprehensive Income (Loss) | |
Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses recorded as an element of equity but are excluded from net income (loss). The Company’s other comprehensive income (loss) consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency and unrealized gains and losses on available-for-sale securities. The Company has disclosed accumulated comprehensive other income (loss) as a separate component of stockholders' equity. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company’s revenue is derived primary from recurring revenue management. Other revenues which have not been significant, include subscriptions to the Company’s cloud applications and professional services | |
Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured from customers and no significant obligations remain unfulfilled by the Company. | |
Recurring Revenue Management | |
Revenue from recurring revenue management consists of fees earned from the sales of services contracts on behalf of the Company’s customers or assisting in their sales process. The Company’s contract obligations include administering and managing the sales and/or renewal processes for customer contracts; providing adequately trained staff; reporting; and holding periodic business reviews with customers. Customer obligations include providing a detailed listing of sales prospects, access to their databases or systems and sales or marketing materials. Fees are generally based on a fixed percentage of the overall sales value associated with the service contracts. However some customer contracts include performance-based fees determined by the achievement of specified performance metrics. Recurring revenue management contracts entitle the Company to additional fees and adjustments which are invoked in various circumstances including a customer’s failure to provide the Company with a specified minimum value of sales prospects, untimely delivery of customer sales prospect data or other obligations inhibiting the Company’s ability to perform its obligations. In addition, many customer contracts contain early termination fees. | |
Recurring revenue management services are deemed delivered when customers accept purchased orders from their sales prospects (the end customer) and no significant post-delivery obligations remain for the Company. Fees from recurring revenue management services are recognized on a net basis since the Company acts as an agent on behalf of its customers. The Company does not provide the services being renewed by the end customers, nor does it determine pricing, terms or scope of services to the end customers. Performance incentive fees and early termination fees are recorded in the period when either the performance criteria have been met or a triggering event has occurred. | |
Subscriptions | |
Subscription revenue is comprised of subscriptions fees to access the Company’s cloud based applications. Subscription revenue is recognized ratably over the contract term, generally over a period of one to three years, commencing when the cloud applications are made available. The Company's subscription service arrangements are generally non-cancelable and do not contain refund-type provisions. | |
Professional Services | |
Professional services revenue is generated from implementation services. Professional services are deemed delivered upon the successful completion of implementation projects or when project milestones have been achieved and accepted by the customer. | |
Multiple Element Arrangements | |
The Company enters into multiple element arrangements when customers utilize a combination of recurring revenue management services, subscriptions and professional services. Deliverables are separated at the inception of the arrangement if each deliverable has stand-alone value to the customer. The Company believes that it has stand-alone value for professional services. Arrangement consideration is allocated based on the relative selling prices of each deliverable. However, most fees earned from recurring revenue management services are contingent in nature as the fees earned by the Company are based on performance against the specific terms of each contract. Therefore, contingent fees from revenue management services are excluded from the allocation of relative selling prices at inception of multiple element arrangements. | |
Selling prices for each deliverable is determined based on the selling price hierarchy of vendor-specific objective evidence (VSOE), third-party evidence (TPE), and best estimated selling price (BESP). Generally, the Company has not been able to establish VSOE for its deliverables as the items have not been sold separately. The Company has not been able to reliably determine the stand-alone selling prices of competitors’ products and services, and therefore cannot rely on TPE for its deliverables. Therefore, the Company utilizes BESP to determine the selling prices of its deliverables. The objective of BESP is to determine the price at which the Company would price a product or service if it were sold on a stand-alone basis. BESP is generally used for offerings that are not typically sold separately or for new offerings including Renew OnDemand. BESP is determined by considering multiple factors including, but not limited to, pricing practices, market conditions, competitive landscape, internal costs, geographies and gross margin. The determination of BESP is made through consultation with and formal approval with management, taking into consideration the Company’s marketing strategy. As these marketing strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to selling prices. | |
Once arrangement consideration is allocated to the various deliverables in a multiple element arrangement, revenue is recognized when all other revenue recognition criteria has been achieved. | |
Advertising Costs | ' |
Advertising Costs | |
Advertising is expensed as incurred as a component of sales and marketing expenses on the consolidated statement of operations. | |
Income Taxes | ' |
Income Taxes | |
The Company accounts for income taxes using an asset and liability method, which requires the recognition of taxes payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences of temporary differences that currently exist between the tax basis and the financial reporting basis of our taxable subsidiaries’ assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. | |
The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. In the normal course of business the Company is subject to examination by taxing authorities throughout the world. These audits include questioning the timing and amount of deductions, the allocation of income among various tax jurisdictions and compliance with federal, state, local and foreign tax laws. The Company accounts for unrecognized tax benefits using a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. The Company records an income tax liability, if any, for the difference between the benefit recognized and measured and the tax position taken or expected to be taken on our tax returns. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax provision. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company measures and recognizes compensation expense for all share-based awards made to employees and directors based on estimated fair values. The fair value of employee and director options is estimated on the date of grant using the Black-Scholes option-pricing model. The value of awards that are ultimately expected to vest is recognized as an expense over the requisite service periods. Since share-based compensation expense is based on awards ultimately expected to vest, it is reduced for expected forfeitures. | |
For awards that are expected to result in a tax deduction, a deferred tax asset is established as the Company recognizes compensation expense. If the tax deduction exceeds the cumulative recorded compensation expense, the tax benefit associated with the excess deduction is considered a windfall benefit. The excess tax benefit from share compensation plans is recorded in members’ equity and classified as a financing cash flow on the consolidated statements of cash flows. | |
Net Income (Loss) Per Common Share | ' |
Net Income (Loss) Per Common Share | |
Basic net income (loss) per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested restricted stock units (“RSUs”). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In 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. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||
Summarizes Net Revenue and Accounts Receivable from Customers | ' | ||||||||||||||
The following table summarizes net revenue and accounts receivable from customers, in excess of 10% of total net revenue and accounts receivable, respectively, including the related geographic segments as discussed in Note 14. | |||||||||||||||
Revenue | Accounts Receivable | ||||||||||||||
Years Ended December 31, | December 31, | ||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | |||||||||||
VMware, Inc (NALA, EMEA and APJ) | 14 | % | 13 | % | 12 | % | 14 | % | 14 | % | |||||
Allowance for Doubtful Accounts | ' | ||||||||||||||
The following are changes in the allowance for doubtful accounts during 2013, 2012 and 2011 (in thousands): | |||||||||||||||
December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Balance, beginning of year | $ | 253 | $ | 32 | $ | — | |||||||||
Charged to expense | 123 | 221 | 32 | ||||||||||||
Recoveries | (248 | ) | — | — | |||||||||||
Balance, end of year | $ | 128 | $ | 253 | $ | 32 | |||||||||
Summary of Asset Retirement Obligation Liability | ' | ||||||||||||||
The following table summarizes the activity of the Company’s asset retirement obligation liability (in thousands): | |||||||||||||||
Asset retirement obligations as of December 31, 2011 | $ | 596 | |||||||||||||
Additions | 128 | ||||||||||||||
Accretion expense | 28 | ||||||||||||||
Asset retirement obligations as of December 31, 2012 | 752 | ||||||||||||||
Lease settlement | (365 | ) | |||||||||||||
Additions | 366 | ||||||||||||||
Accretion expense | 25 | ||||||||||||||
Asset retirement obligations as of December 31, 2013 | $ | 778 | |||||||||||||
Tables
(Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Basic and Diluted Earnings per Common Share Computations | ' | |||||||||||
The basic and diluted net income (loss) per share calculations are presented below (in thousands, except for per share amounts): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Basic net income (loss) per common share | ||||||||||||
Net income (loss) | $ | (22,852 | ) | $ | (42,814 | ) | $ | 15,111 | ||||
Weighted-average common shares outstanding | 78,408 | 74,270 | 66,656 | |||||||||
Basic net income (loss) per share | $ | (0.29 | ) | $ | (0.58 | ) | $ | 0.23 | ||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Diluted net income (loss) per common share | ||||||||||||
Net income (loss) used to determine diluted earnings per common shares | $ | (22,852 | ) | $ | (42,814 | ) | $ | 15,111 | ||||
Weighted-average common shares outstanding used in basic calculation | 78,408 | 74,270 | 66,656 | |||||||||
Adjustment for dilutive potential shares | — | — | 6,929 | |||||||||
Weighted-average common shares for diluted net income (loss) per share | 78,408 | 74,270 | 73,585 | |||||||||
Diluted net income (loss) per share | $ | (0.29 | ) | $ | (0.58 | ) | $ | 0.21 | ||||
Cash_cash_equivalents_and_shor1
Cash, cash equivalents and short-term investments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||||||||||
Summary of Cash and Cash Equivalents and Short-Term Investments | ' | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||
Cash | $ | 169,968 | $ | — | $ | — | $ | 169,968 | ||||||||
Cash equivalents: | ||||||||||||||||
Money market mutual funds | 164 | — | — | 164 | ||||||||||||
Total cash and cash equivalents | 170,132 | — | — | 170,132 | ||||||||||||
Short-term investments: | ||||||||||||||||
Corporate bonds | 40,503 | 90 | (10 | ) | 40,583 | |||||||||||
U.S. agency securities | 31,720 | 40 | (13 | ) | 31,747 | |||||||||||
Asset-backed securities | 15,880 | 14 | (12 | ) | 15,882 | |||||||||||
U.S. Treasury securities | 16,742 | 50 | (3 | ) | 16,789 | |||||||||||
Total short-term investments | 104,845 | 194 | (38 | ) | 105,001 | |||||||||||
Cash, cash equivalents and short-term investments | $ | 274,977 | $ | 194 | $ | (38 | ) | $ | 275,133 | |||||||
December 31, 2012 | ||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated 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 effective maturities as of December 31, 2013 (in thousands): | ||||||||||||||||
Amortized | Estimated | |||||||||||||||
Cost | Fair Value | |||||||||||||||
Less than 1 year | $ | 10,168 | $ | 10,174 | ||||||||||||
Due in 1 to 5 years | 94,677 | 94,827 | ||||||||||||||
Total | $ | 104,845 | $ | 105,001 | ||||||||||||
Fair_value_of_financial_instru1
Fair value of financial instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 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 December 31, 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 | $ | 164 | $ | 164 | $ | — | ||||||||||
Total cash equivalents | 164 | 164 | — | |||||||||||||
Short-term investments: | ||||||||||||||||
Corporate bonds | 40,583 | — | 40,583 | |||||||||||||
U.S. agency securities | 31,747 | — | 31,747 | |||||||||||||
Asset-backed securities | 15,882 | — | 15,882 | |||||||||||||
U.S. Treasury securities | 16,789 | — | 16,789 | |||||||||||||
Total short-term investments | 105,001 | — | 105,001 | |||||||||||||
Cash equivalents and short-term investments | $ | 105,165 | $ | 164 | $ | 105,001 | ||||||||||
The following table presents the financial instruments that are measured and carried at cost on a nonrecurring basis as of December 31, 2013 (in thousands): | ||||||||||||||||
Carrying Value | Quoted Prices | Significant | Significant | |||||||||||||
in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||
Assets | (Level 2) | |||||||||||||||
(Level 1) | ||||||||||||||||
Investment in privately held company | $ | 4,500 | $ | — | $ | — | $ | 4,500 | ||||||||
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) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Summary of Property and Equipment | ' | |||||||
Property and equipment balances were comprised of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Computers and equipment | $ | 14,675 | $ | 14,733 | ||||
Software | 34,467 | 32,982 | ||||||
Leasehold improvements | 11,493 | 10,801 | ||||||
Furniture and fixtures | 9,078 | 8,555 | ||||||
69,713 | 67,071 | |||||||
Less: accumulated depreciation and amortization | (41,715 | ) | (32,558 | ) | ||||
27,998 | 34,513 | |||||||
Other_Accrued_Liabilities_Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Comprised Balance of Other Accrued Liabilities | ' | |||||||
Other current accrued liabilities balances were comprised of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Deferred revenue | $ | 5,905 | $ | 2,295 | ||||
Accrued professional fee | 2,527 | 3,664 | ||||||
Deferred rent obligations | 834 | 986 | ||||||
Other employee related | 374 | 323 | ||||||
ESPP contributions | 892 | 1,059 | ||||||
Accrued other | 4,612 | 2,076 | ||||||
15,144 | 10,403 | |||||||
Credit_Facility_and_Capital_Le1
Credit Facility and Capital Leases (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Debt Disclosure [Abstract] | ' | |||
Future Minimum Annual Payments Under Capital Lease Obligations | ' | |||
The future contractual maturities of capital lease obligations as of December 31, 2013 are as follows (in thousands): | ||||
Years Ending | ||||
2014 | $ | 270 | ||
2015 | 77 | |||
2016 | 79 | |||
2017 | 81 | |||
2018 | 84 | |||
Thereafter | 66 | |||
Total | $ | 657 | ||
Convertible_Notes_Tables
Convertible Notes (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Debt Disclosure [Abstract] | ' | |||
Schedule of Debt | ' | |||
The net carrying amount of the liability component of the Notes as of December 31, 2013 consists of the following (in thousands): | ||||
Principal amount | $ | 150,000 | ||
Unamortized debt discount | (36,085 | ) | ||
Net carrying amount | $ | 113,915 | ||
Schedule of Interest Expense on Notes Recognized [Table Text Block] | ' | |||
The following table presents the interest expense recognized related to the Notes for the three months ended December 31, 2013 (in thousands): | ||||
Contractual interest expense at 1.5% per annum | $ | 563 | ||
Amortization of debt issuance costs | 153 | |||
Accretion of debt discount | 1,641 | |||
Total | $ | 2,357 | ||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 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 December 31, 2013 were as follows (in thousands): | ||||
Fiscal Year | ||||
2014 | $ | 8,428 | ||
2015 | 6,362 | |||
2016 | 4,600 | |||
2017 | 4,318 | |||
2018 | 3,756 | |||
Thereafter | 10,820 | |||
Total | $ | 38,284 | ||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Reconciliation of Option and Restricted Stock Activity | ' | |||||||||||||||
Option and RSU activity under the Option Plans for 2013, 2012 and 2011 was as follows (shares and aggregate intrinsic value in thousands): | ||||||||||||||||
Options Outstanding | Restricted Stock | |||||||||||||||
Outstanding | ||||||||||||||||
Shares | Number | Weighted- | Number | |||||||||||||
Available | of Shares | Average | of Shares | |||||||||||||
for Grant | Exercise | |||||||||||||||
Price | ||||||||||||||||
Outstanding—January 1, 2011 | 2,872 | 17,723 | $ | 4.32 | — | |||||||||||
Additional shares reserved under the 2011 Equity Incentive Plan | 5,760 | — | — | — | ||||||||||||
Granted | (2,996 | ) | 2,186 | 13.44 | 810 | |||||||||||
Exercised | — | (3,808 | ) | 3.75 | — | |||||||||||
Forfeited | 774 | (766 | ) | 5.58 | (8 | ) | ||||||||||
Outstanding—December 31, 2011 | 6,410 | 15,335 | 5.7 | 802 | ||||||||||||
Additional shares reserved under the 2011 Equity Incentive Plan | 2,903 | — | — | — | ||||||||||||
Granted | (6,523 | ) | 2,954 | 12.3 | 3,569 | |||||||||||
Options exercised/ Restricted stock released | — | (2,100 | ) | 3.84 | (209 | ) | ||||||||||
Forfeited | 1,234 | (1,000 | ) | 9.57 | (234 | ) | ||||||||||
Outstanding—December 31, 2012 | 4,024 | 15,189 | 6.98 | 3,928 | ||||||||||||
Additional shares reserved under the 2011 equity incentive plan | 3,025 | — | — | — | ||||||||||||
Granted | (6,565 | ) | 3,023 | 7.43 | 3,542 | |||||||||||
Options exercised/ Restricted stock released | — | (5,147 | ) | 4.47 | (920 | ) | ||||||||||
Canceled/Forfeited | 5,271 | (4,157 | ) | 12.77 | (1,119 | ) | ||||||||||
Outstanding — December 31, 2013 | 5,755 | 8,908 | 5.89 | 5,431 | ||||||||||||
Aggregate intrinsic value of Option Activities | ' | |||||||||||||||
Number | Weighted- | Weighted- | Aggregate | |||||||||||||
of Shares | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | |||||||||||||||
Life (Years) | ||||||||||||||||
Options vested and expected to vest—December 31, 2013 | 8,454 | $ | 5.8 | 6.16 | $ | 23,764 | ||||||||||
Options exercisable—December 31, 2013 | 5,440 | 4.98 | 4.96 | 19,082 | ||||||||||||
Restricted stock expected to vest- December 31, 2013 | 4,159 | — | 1.59 | 34,856 | ||||||||||||
Summary of Stock-Based Compensation Expense | ' | |||||||||||||||
The table below summarizes stock-based compensation expense as allocated within the Company’s consolidated statements of operations (in thousands): | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | ||||||||||||||||
Includes stock-based compensation of: | ||||||||||||||||
Cost of revenue | $ | 3,303 | $ | 2,772 | $ | 1,877 | ||||||||||
Sales and marketing | 9,831 | 8,146 | 4,456 | |||||||||||||
Research and development | 2,414 | 1,880 | 1,167 | |||||||||||||
General and administrative | 8,072 | 8,077 | 4,099 | |||||||||||||
Total stock-based compensation | $ | 23,620 | $ | 20,875 | $ | 11,599 | ||||||||||
Summary of Stock Options Outstanding | ' | |||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2013 (shares in thousands): | ||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number of | Weighted- | Weighted- | Number of | Weighted- | |||||||||||
Shares | Average | Average | Shares | Average | ||||||||||||
Outstanding | Remaining | Exercise | Exercisable | Exercise | ||||||||||||
Contract Life | Price per | Price | ||||||||||||||
(in Years) | Share | |||||||||||||||
$0.20 to $1.49 | 90 | 1.9 | $ | 0.97 | 90 | $ | 0.97 | |||||||||
$4.26 | 2,263 | 3.32 | 4.26 | 2,263 | 4.26 | |||||||||||
$4.60 to $5.10 | 1,804 | 6.37 | 4.74 | 1,524 | 4.69 | |||||||||||
$5.80 to $6.03 | 2,338 | 6.31 | 5.89 | 1,297 | 5.88 | |||||||||||
$6.20 to $17.98 | 2,413 | 9.16 | 8.45 | 266 | 9.84 | |||||||||||
8,908 | 6.29 | 5.89 | 5,440 | 4.98 | ||||||||||||
Stock Option Plan | ' | |||||||||||||||
Weighted average Black-Scholes model assumptions | ' | |||||||||||||||
The weighted average Black-Scholes option-pricing model assumptions for years ended 2013, 2012 and 2011 were as follows: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Expected term (in years) | 5 | 5.05 | 5.26 | |||||||||||||
Expected volatility | 43 | % | 46 | % | 50 | % | ||||||||||
Risk-free interest rate | 1.19 | % | 0.76 | % | 1.5 | % | ||||||||||
Expected dividend yield | — | % | — | % | — | % | ||||||||||
Employee Share Purchase Plan | ' | |||||||||||||||
Weighted average Black-Scholes model assumptions | ' | |||||||||||||||
The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes option valuation model and the straight-line attribution approach with the following weighted-average assumptions: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Expected term (in years) | 0.5 -1.0 | 0.5 | 0.39-0.50 | |||||||||||||
Expected volatility | 27 | % | 45 | % | 36%-45% | |||||||||||
Risk-free interest rate | 0.13%-0.17% | 0.14 | % | 0.18%-0.07% | ||||||||||||
Expected dividend yield | — | % | — | % | — | % |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income from Continuing Operations before Provision for Income Taxes | ' | |||||||||||
Loss from continuing operations before provision for (benefit from) income taxes for the Company’s domestic and international operations was as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Domestic | $ | (20,124 | ) | $ | (10,381 | ) | $ | (3,664 | ) | |||
International | (1,857 | ) | (326 | ) | (608 | ) | ||||||
Loss before provision for income taxes | $ | (21,981 | ) | $ | (10,707 | ) | $ | (4,272 | ) | |||
Income Tax Provision | ' | |||||||||||
The income tax provision (benefit) consisted of the following (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | (489 | ) | $ | 1,116 | |||||
Foreign | 501 | 1,112 | 424 | |||||||||
State and local | 153 | 144 | 98 | |||||||||
Total current income tax provision | 654 | 767 | 1,638 | |||||||||
Deferred: | ||||||||||||
Federal | — | 25,779 | (16,756 | ) | ||||||||
Foreign | (90 | ) | 76 | 56 | ||||||||
State and local | 307 | 5,485 | (4,321 | ) | ||||||||
Total deferred income tax provision (benefit) | 217 | 31,340 | (21,021 | ) | ||||||||
Income tax provision (benefit) | $ | 871 | $ | 32,107 | $ | (19,383 | ) | |||||
Reconciliation of Income Taxes Provided at Federal Statutory Rate | ' | |||||||||||
The following table provides a reconciliation of income taxes provided at the federal statutory rate of 34% to the income tax provision (benefit) (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
U.S. income tax at federal statutory rate | $ | (7,464 | ) | $ | (3,640 | ) | $ | (1,452 | ) | |||
Provision from (income) loss attributable to LLC (through February 28, 2011) | — | — | 1,470 | |||||||||
Benefit from change in tax status | — | — | (20,740 | ) | ||||||||
State income taxes, net of federal benefit | 544 | 391 | 52 | |||||||||
Foreign tax rate differential | 1,000 | 674 | 415 | |||||||||
Permanent differences | 231 | 364 | 876 | |||||||||
State tax credits | (1,824 | ) | (1,040 | ) | (228 | ) | ||||||
Valuation allowance | 8,366 | 35,690 | 196 | |||||||||
Other, net | 18 | (332 | ) | 28 | ||||||||
Income tax provision (benefit) | $ | 871 | $ | 32,107 | $ | (19,383 | ) | |||||
Deferred Tax Assets and Liabilities | ' | |||||||||||
Deferred tax assets and (liabilities) represent the future effects on income taxes resulting from temporary differences and carryforwards at the end of the respective periods (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Current | ||||||||||||
Accrued liabilities | $ | 4,157 | $ | 3,580 | ||||||||
State taxes | — | — | ||||||||||
Allowance for doubtful accounts | 32 | 99 | ||||||||||
Current deferred tax assets | 4,189 | 3,679 | ||||||||||
Non-current | ||||||||||||
Share-based compensation expense | 13,126 | 12,261 | ||||||||||
Net operating loss carryforwards | 16,452 | 9,324 | ||||||||||
State tax credits | 4,634 | 2,487 | ||||||||||
Unrealized loss on foreign exchange transactions | — | 266 | ||||||||||
Amortization of tax intangibles | 9,486 | 11,751 | ||||||||||
Other, net | 194 | (1,805 | ) | |||||||||
Non-current deferred tax assets | 43,892 | 34,284 | ||||||||||
Total current and non-current | 48,081 | 37,963 | ||||||||||
Deferred tax liabilities | ||||||||||||
Property & equipment | (1,204 | ) | (203 | ) | ||||||||
Convertible debt costs | (2,571 | ) | — | |||||||||
Gross deferred tax assets | 44,306 | 37,760 | ||||||||||
Less: Valuation allowance | (42,155 | ) | (35,392 | ) | ||||||||
Net deferred tax assets | $ | 2,151 | $ | 2,368 | ||||||||
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | ||||||||||||
Balance as of December 31, 2012 | $ | 433 | ||||||||||
Additions based on tax positions related to the current year | 317 | |||||||||||
Additions for tax positions of prior years | 130 | |||||||||||
Reductions for tax positions of prior years | — | |||||||||||
Balance as of December 31, 2013 | $ | 880 | ||||||||||
Reportable_Segments_Tables
Reportable Segments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Summarized Financial Information Based Geographic Location | ' | |||||||||||
Summarized financial information by geographic location for 2013, 2012 and 2011 based on the Company’s internal management reporting and as utilized by the Company’s CODM, is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net revenue | ||||||||||||
NALA | $ | 173,188 | $ | 150,041 | $ | 127,430 | ||||||
EMEA | 73,839 | 66,902 | 58,344 | |||||||||
APJ | 25,455 | 26,760 | 19,727 | |||||||||
Total net revenue | $ | 272,482 | $ | 243,703 | $ | 205,501 | ||||||
Direct profit contribution | ||||||||||||
NALA | 90,302 | 80,153 | 72,333 | |||||||||
EMEA | 39,040 | 35,517 | 27,756 | |||||||||
APJ | 7,711 | 7,117 | 1,945 | |||||||||
Total direct profit contribution | 137,053 | 122,787 | 102,034 | |||||||||
Adjustments: | ||||||||||||
Stock-based compensation | (3,303 | ) | (2,772 | ) | (1,877 | ) | ||||||
Overhead allocations and other, net | (23,717 | ) | (12,633 | ) | (8,062 | ) | ||||||
Gross Profit | $ | 110,033 | $ | 107,382 | $ | 92,095 | ||||||
Long-Lived Assets, Consisting of Property and Equipment | ' | |||||||||||
The following table presents the long-lived assets, consisting of property and equipment, by geographic location (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
NALA | $ | 22,976 | $ | 29,783 | ||||||||
EMEA | 1,614 | 1,120 | ||||||||||
APJ | 3,408 | 3,610 | ||||||||||
Total property and equipment, net | $ | 27,998 | $ | 34,513 | ||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ' | |||||||||||||||||||||||||||||||
Summarized quarterly financial information | ' | |||||||||||||||||||||||||||||||
Selected summarized quarterly financial information for the years ended December 31, 2013 and 2012 is as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | |||||||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
Net revenue | $ | 77,182 | $ | 66,482 | $ | 67,697 | $ | 61,121 | $ | 67,345 | $ | 59,090 | $ | 59,694 | $ | 57,574 | ||||||||||||||||
Gross profit | 31,581 | 26,752 | 29,077 | 22,623 | 32,026 | 24,546 | 25,812 | 24,998 | ||||||||||||||||||||||||
Loss from operations | 384 | 3,656 | 3,867 | 9,655 | 197 | 3,382 | 3,219 | 3,135 | ||||||||||||||||||||||||
Loss before provision for income taxes | 3,307 | 4,749 | 4,162 | 9,762 | 667 | 3,262 | 3,552 | 3,226 | ||||||||||||||||||||||||
Net loss (1) | $ | 1,988 | $ | 5,502 | $ | 4,906 | $ | 10,455 | $ | 1,185 | $ | 3,584 | $ | 36,769 | $ | 1,276 | ||||||||||||||||
Net loss per common share: | ||||||||||||||||||||||||||||||||
Basic and diluted | $ | 0.02 | $ | 0.07 | $ | 0.06 | $ | 0.14 | $ | 0.02 | $ | 0.05 | $ | 0.5 | $ | 0.02 | ||||||||||||||||
-1 | The three months ended June 30, 2012 includes the effect of providing a valuation allowance of $33.1 million for a substantial portion of the Company’s deferred tax assets. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment | |||
region | |||
Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of reportable geographic regions | 3 | ' | ' |
Number of operating segments | 3 | ' | ' |
Number of reporting segments | 3 | ' | ' |
Foreign currency transaction losses | ($1,000,000) | ($400,000) | ($700,000) |
Unamortized deferred debt issuance cost | 39,500,000 | 100,000 | ' |
Amortization of deferred debt issuance cost | 2,800,000 | 100,000 | 200,000 |
Estimated future amortization of deferred debt issuance costs expense, in 2013 | 7,400,000 | ' | ' |
Estimated future amortization of deferred debt issuance costs expense, in 2014 | 8,000,000 | ' | ' |
Estimated future amortization of deferred debt issuance costs expense, in 2015 | 8,700,000 | ' | ' |
Advertising expense | $100,000 | $1,100,000 | $600,000 |
Office Furniture And Equipment | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, estimated useful lives | '7 years | ' | ' |
Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Subscription revenue period of recognition | '1 year | ' | ' |
Minimum | Computers and Equipment | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, estimated useful lives | '2 years | ' | ' |
Minimum | Software | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, estimated useful lives | '2 years | ' | ' |
Minimum | Leasehold Improvements | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, estimated useful lives | '3 years | ' | ' |
Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Subscription revenue period of recognition | '3 years | ' | ' |
Maximum | Computers and Equipment | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, estimated useful lives | '3 years | ' | ' |
Maximum | Software | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, estimated useful lives | '5 years | ' | ' |
Maximum | Leasehold Improvements | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, estimated useful lives | '10 years | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Summarizes Net Revenue and Accounts Receivable from Customers (Detail) (VMware, Inc) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
VMware, Inc | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 14.00% | 13.00% | 12.00% |
Accounts Receivable | 14.00% | 14.00% | ' |
Percentage of Accounts Receivable | ' | 10.00% | ' |
Percentage of Segment Revenue | ' | 10.00% | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' |
Balance, beginning of period | $253 | $32 | $0 |
Charged to expense | 123 | 221 | 32 |
Recoveries | -248 | 0 | 0 |
Balance, end of period | $128 | $253 | $32 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Summary of Asset Retirement Obligation Liability (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ' | ' |
Asset retirement obligations Beginning Balance | $752 | $596 |
Lease settlement | -365 | ' |
Additions | 366 | 128 |
Accretion expense | 25 | 28 |
Asset retirement obligations as of Ending Balance | $778 | $752 |
Net_Income_Loss_Per_Common_Sha1
Net Income (Loss) Per Common Share - Additional Information (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Potential shares of common stock, with anti-dilutive effect | 2 | 4.1 | 0.8 |
Net_Income_Loss_Per_Common_Sha2
Net Income (Loss) Per Common Share - Basic and Diluted Earnings per Common Share Computations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Basic net income (loss) per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income (loss) | $1,988 | [1] | $5,502 | [1] | $4,906 | [1] | $10,455 | [1] | $1,185 | [1] | $3,584 | [1] | $36,769 | [1] | $1,276 | [1] | ($22,852) | ($42,814) | $15,111 |
Weighted-average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 78,408 | 74,270 | 66,656 | ||||||||
Basic net income (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ($0.29) | ($0.58) | $0.23 | ||||||||
Diluted net income (loss) per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income (loss) used to determine diluted earnings per common shares | $1,988 | [1] | $5,502 | [1] | $4,906 | [1] | $10,455 | [1] | $1,185 | [1] | $3,584 | [1] | $36,769 | [1] | $1,276 | [1] | ($22,852) | ($42,814) | $15,111 |
Weighted-average common shares outstanding used in basic calculation | ' | ' | ' | ' | ' | ' | ' | ' | 78,408 | 74,270 | 66,656 | ||||||||
Adjustment for dilutive potential shares | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 6,929 | ||||||||
Weighted-average common shares for diluted net income (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | 78,408 | 74,270 | 73,585 | ||||||||
Diluted net income (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ($0.29) | ($0.58) | $0.21 | ||||||||
[1] | The three months ended June 30, 2012 includes the effect of providing a valuation allowance of $33.1 million for a substantial portion of the Company’s deferred tax assets. |
Cash_cash_equivalents_and_shor2
Cash, cash equivalents and short-term investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents held by a third party | $500,000 | $800,000 | ' | ' |
Total cash and cash equivalents, Amortized Cost | 170,132,000 | 76,568,000 | 65,983,000 | 22,652,000 |
Total short-term investments, Amortized Cost | 104,845,000 | 32,885,000 | ' | ' |
Short-term investments, Unrealized Gains | 194,000 | 9,000 | ' | ' |
Short-term investments, Unrealized Losses | -38,000 | -20,000 | ' | ' |
Total short-term investments, Estimated Fair Value | 105,001,000 | 32,874,000 | ' | ' |
Cash, cash equivalents and short-term investments, Amortized Cost | 274,977,000 | 109,453,000 | ' | ' |
Cash, cash equivalents and short-term investments, Unrealized Gains | 194,000 | 9,000 | ' | ' |
Cash, cash equivalents and short-term investments, Unrealized Losses | -38,000 | -20,000 | ' | ' |
Cash, cash equivalents and short-term investments, Estimated Fair Value | 275,133,000 | 109,442,000 | ' | ' |
Money market mutual funds | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents, Amortized Cost | 164,000 | 17,000,000 | ' | ' |
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 | 164,000 | 17,000,000 | ' | ' |
Corporate bonds | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total short-term investments, Amortized Cost | 40,503,000 | 13,389,000 | ' | ' |
Short-term investments, Unrealized Gains | 90,000 | 2,000 | ' | ' |
Short-term investments, Unrealized Losses | -10,000 | -14,000 | ' | ' |
Total short-term investments, Estimated Fair Value | 40,583,000 | 13,377,000 | ' | ' |
U.S. agency securities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total short-term investments, Amortized Cost | 31,720,000 | 11,280,000 | ' | ' |
Short-term investments, Unrealized Gains | 40,000 | 4,000 | ' | ' |
Short-term investments, Unrealized Losses | -13,000 | -1,000 | ' | ' |
Total short-term investments, Estimated Fair Value | 31,747,000 | 11,283,000 | ' | ' |
Asset-backed securities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total short-term investments, Amortized Cost | 15,880,000 | 4,670,000 | ' | ' |
Short-term investments, Unrealized Gains | 14,000 | 1,000 | ' | ' |
Short-term investments, Unrealized Losses | -12,000 | -5,000 | ' | ' |
Total short-term investments, Estimated Fair Value | 15,882,000 | 4,666,000 | ' | ' |
U.S. Treasury securities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total short-term investments, Amortized Cost | 16,742,000 | 3,546,000 | ' | ' |
Short-term investments, Unrealized Gains | 50,000 | 2,000 | ' | ' |
Short-term investments, Unrealized Losses | -3,000 | 0 | ' | ' |
Total short-term investments, Estimated Fair Value | 16,789,000 | 3,548,000 | ' | ' |
Cash | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents, Amortized Cost | 169,968,000 | 59,568,000 | ' | ' |
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 | 169,968,000 | 59,568,000 | ' | ' |
Cash Equivalents | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents, Amortized Cost | 170,132,000 | 76,568,000 | ' | ' |
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 | $170,132,000 | $76,568,000 | ' | ' |
Cash_cash_equivalents_and_shor3
Cash, cash equivalents and short-term investments - Summary of Cost and Estimated Fair Values of Short Term Fixed Income Securities (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Amortized Cost | ' |
Less than 1 year | $10,168 |
Due in 1 to 5 years | 94,677 |
Total | 104,845 |
Estimated Fair Value | ' |
Less than 1 year | 10,174 |
Due in 1 to 5 years | 94,827 |
Total | $105,001 |
Fair_value_of_financial_instru2
Fair value of financial instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term investments: | ' | ' |
Total short-term investments | $105,001,000 | $32,874,000 |
Convertible Notes Payable [Member] | ' | ' |
Short-term investments: | ' | ' |
Convertible notes approximate fair value | 141,200,000 | ' |
Fair Value, Measurements, Recurring | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 105,001,000 | 32,874,000 |
Cash equivalents and short-term investments | 105,165,000 | 49,874,000 |
Fair Value, Measurements, Recurring | Money market mutual funds | ' | ' |
Cash equivalents: | ' | ' |
Total cash equivalents | 164,000 | 17,000,000 |
Fair Value, Measurements, Recurring | Cash Equivalents | ' | ' |
Cash equivalents: | ' | ' |
Total cash equivalents | 164,000 | 17,000,000 |
Fair Value, Measurements, Recurring | Corporate bonds | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 40,583,000 | 13,377,000 |
Fair Value, Measurements, Recurring | U.S. agency securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 31,747,000 | 11,283,000 |
Fair Value, Measurements, Recurring | Asset-backed securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 15,882,000 | 4,666,000 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 16,789,000 | 3,548,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 0 | 0 |
Cash equivalents and short-term investments | 164,000 | 17,000,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Money market mutual funds | ' | ' |
Cash equivalents: | ' | ' |
Total cash equivalents | 164,000 | 17,000,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Cash Equivalents | ' | ' |
Cash equivalents: | ' | ' |
Total cash equivalents | 164,000 | 17,000,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Corporate bonds | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | U.S. agency securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Asset-backed securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | U.S. Treasury securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 105,001,000 | 32,874,000 |
Cash equivalents and short-term investments | 105,001,000 | 32,874,000 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Money market mutual funds | ' | ' |
Cash equivalents: | ' | ' |
Total cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Cash Equivalents | ' | ' |
Cash equivalents: | ' | ' |
Total cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Corporate bonds | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 40,583,000 | 13,377,000 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | U.S. agency securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 31,747,000 | 11,283,000 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | Asset-backed securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 15,882,000 | 4,666,000 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | U.S. Treasury securities | ' | ' |
Short-term investments: | ' | ' |
Total short-term investments | 16,789,000 | 3,548,000 |
Privately Held Company [Member] | Fair Value, Measurements, Nonrecurring | ' | ' |
Short-term investments: | ' | ' |
Investment in privately held company | 4,500,000 | ' |
Privately Held Company [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | ' | ' |
Short-term investments: | ' | ' |
Investment in privately held company | 0 | ' |
Privately Held Company [Member] | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | ' | ' |
Short-term investments: | ' | ' |
Investment in privately held company | 0 | ' |
Privately Held Company [Member] | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ' | ' |
Short-term investments: | ' | ' |
Investment in privately held company | $4,500,000 | ' |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Depreciation expense related to property and equipment | $11,700,000 | $10,000,000 | $9,400,000 |
Property and equipment under capital lease | 3,200,000 | 3,200,000 | ' |
Accumulated depreciation related to assets under capital lease | 2,600,000 | 2,100,000 | ' |
Internal-use software development costs capitalized | 0 | 6,200,000 | 6,000,000 |
Carrying value of internal-use software, net of accumulated amortization | 9,300,000 | 13,600,000 | ' |
Amortization of capitalized costs related to internal-use software | $4,400,000 | $3,000,000 | $3,900,000 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | $69,713 | $67,071 |
Less: accumulated depreciation and amortization | -41,715 | -32,558 |
Property and equipment, net | 27,998 | 34,513 |
Computers and Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | 14,675 | 14,733 |
Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | 34,467 | 32,982 |
Leasehold Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | 11,493 | 10,801 |
Furniture and Fixtures | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | $9,078 | $8,555 |
Other_Accrued_Liabilities_Comp
Other Accrued Liabilities - Comprised Balance of Other Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Deferred revenue | $5,905 | $2,295 |
Accrued professional fee | 2,527 | 3,664 |
Deferred rent obligations | 834 | 986 |
Other employee related | 374 | 323 |
ESPP contributions | 892 | 1,059 |
Accrued other | 4,612 | 2,076 |
Total other accrued liabilities | $15,144 | $10,403 |
Credit_Facility_and_Capital_Le2
Credit Facility and Capital Leases - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2013 | Jun. 29, 2012 | Jun. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 18, 2013 | Dec. 31, 2013 | Jun. 18, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Before July 5, 2013 | Before July 5, 2013 | After July 5, 2013 | After July 5, 2013 | Letter Of Credit Sublimit | Base Rate | LIBOR | |||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Terminated credit facility | ' | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance of revolving credit facility | ' | 850,000 | ' | 575,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit agreement period | ' | ' | ' | '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 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.50% | 2.00% |
Revolving credit facility, maturity date | ' | ' | ' | 5-Jul-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee (as a percent) | 0.30% | ' | 0.45% | 0.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate for borrowings under credit facility | ' | ' | ' | 2.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underlying property and equipment expiration period | ' | ' | ' | 'September 2019 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average imputed interest rates for the capital lease agreements | ' | ' | ' | 2.60% | 2.50% | 3.60% | ' | ' | ' | ' | ' | ' | ' |
Credit_Facility_and_Capital_Le3
Credit Facility and Capital Leases - Future Minimum Annual Payments Under Capital Lease Obligation (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2014 | $270 |
2015 | 77 |
2016 | 79 |
2017 | 81 |
2018 | 84 |
Thereafter | 66 |
Total | $657 |
Convertible_Notes_Details
Convertible Notes (Details) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | |||
Share data in Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 |
Senior Convertible Notes | 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 | ' | 657,000 | ' | ' | 111,500,000 | ' | 113,915,000 | ' | ' | ' | ' |
Additional paid in capital | ' | ' | ' | ' | 38,500,000 | ' | ' | ' | ' | ' | ' |
Transaction costs | ' | ' | ' | ' | ' | 4,900,000 | ' | ' | ' | ' | ' |
Debt component of transaction costs, gross | ' | ' | ' | ' | 3,600,000 | ' | ' | ' | ' | ' | ' |
Transaction costs, additional paid in capital | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' |
Net proceeds from the Notes | ' | ' | ' | ' | ' | 145,100,000 | ' | ' | ' | ' | ' |
Payments of convertible note hedges | 31,400,000 | 31,408,000 | 0 | 0 | ' | ' | ' | 31,400,000 | ' | ' | ' |
Proceeds from the issuance of warrants | ' | $21,763,000 | $0 | $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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible_Notes_Liability_Co
Convertible Notes (Liability Component and Interest Expense) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Aug. 31, 2013 |
Senior Convertible Notes | Senior Convertible Notes | ||||
Liability Component | ' | ' | ' | ' | ' |
Principal amount | ' | ' | ' | $150,000 | ' |
Net carrying amount | ' | ' | ' | -36,085 | ' |
Total | 657 | ' | ' | 113,915 | 111,500 |
Interest Expense | ' | ' | ' | ' | ' |
Contractual interest expense at 1.5% per annum | ' | ' | ' | 563 | ' |
Amortization of debt issuance costs | 2,800 | 100 | 200 | 153 | ' |
Accretion of debt discount | ' | ' | ' | 1,641 | ' |
Total | $3,754 | $236 | $503 | $2,357 | ' |
Interest rate | ' | ' | ' | 1.50% | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Operating lease payment of non-cancelable agreement expiration period | 'through September 30, 2022 | ' | ' |
Rent expenses | $8.60 | $8.50 | $6.50 |
Non-cancelable purchase commitments | $5.40 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Annual Minimum Lease Payments Under All Noncancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 | $8,428 |
2015 | 6,362 |
2016 | 4,600 |
2017 | 4,318 |
2018 | 3,756 |
Thereafter | 10,820 |
Total | $38,284 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Non Employee Awards | Non Employee Awards | Non Employee Awards | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Restricted Stock Outstanding | Restricted Stock Outstanding | Restricted Stock Outstanding | 2011 Plan [Member] | Employee Stock Purchase Plan | 2011 Plan | 25% Percentage of option vesting | Stock Option Exchange Program | Stock Option Exchange Program | |||||
Employee Stock Option [Member] | Minimum | |||||||||||||||||||
To be eligible to exchange out-of-the money stock options | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based payment award, award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | '4 years | ' | '4 years | '1 year | ' | ' |
Percentage of option vesting during the period | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested option expiring period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Vested but unexercised option expiring period | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share issued under Employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,542,000 | 3,569,000 | 810,000 | ' | ' | ' | ' | ' | ' |
Percentage of common stock outstanding | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reserved but unissued | 3,000,000 | 3,025,000 | 2,903,000 | 5,760,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,840,000 | ' | ' | ' |
Option exercise price | ' | ' | ' | ' | ' | ' | ' | $5.89 | $6.98 | $5.70 | $4.32 | ' | ' | ' | ' | ' | ' | ' | ' | $6.03 |
Number of option accepted for exchange and and cancelled | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | ' |
Percentage of option accepted for exchange and and cancelled | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' |
Stock options granted, value | ' | ' | ' | ' | 0 | 0 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Stock options granted, excercise price per share | ' | ' | ' | ' | ' | ' | $6.20 | $7.43 | $12.30 | $13.44 | ' | ' | ' | ' | ' | ' | ' | ' | $6.03 | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period until new options are exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' |
Restricted Stock Units Outstanding Number of Share, Exercised in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -920,000 | -209,000 | ' | ' | ' | ' | ' | ' | ' |
Value of stock options and awards granted | ' | 29.3 | 41.7 | 27.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | ' | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of payroll deductions | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of purchase price of the shares on each purchase date is equal to the fair market value | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock on the first and last trading days on offering period | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share issued under employee stock purchase plan | ' | 686,957 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' |
Percentage of outstanding common stock shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' |
Shares available for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,695,089 | ' | ' | ' | ' |
Weighted-average grant date fair value of options granted | ' | $3.18 | $4.98 | $6.53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair values of restricted stock units granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.26 | $11.69 | $15.92 | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options exercised | ' | 23.9 | 21.9 | 42.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of share options vested | ' | 15.9 | 13.1 | 11.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | ' | $49.50 | $55.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense, weighted-average period recognized | ' | '2 years 9 months 29 days | '2 years 5 months 27 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Weighted_A
Stockholders' Equity - Weighted Average Black-Scholes Model Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Stockholders Equity [Line Items] | ' | ' | ' |
Expected term (in years) | '5 years | '5 years 18 days | '5 years 3 months 4 days |
Expected volatility | 43.00% | 46.00% | 50.00% |
Risk-free interest rate | 1.19% | 0.76% | 1.50% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stockholders_Equity_Fair_Value
Stockholders' Equity - Fair Value of Each Purchase Right Under the ESPP was Estimated on the Date of Grant Using the Black-Scholes Option Valuation Model and the Straight-line Attribution (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected term (in years) | '5 years | '5 years 18 days | '5 years 3 months 4 days |
Expected volatility | 43.00% | 46.00% | 50.00% |
Risk-free interest rate | 1.19% | 0.76% | 1.50% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected term (in years) | ' | '6 months | ' |
Expected volatility | 27.00% | 45.00% | ' |
Risk-free interest rate | ' | 0.14% | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | Employee Stock Purchase Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected term (in years) | '6 months | ' | '4 months 21 days |
Expected volatility | ' | ' | 36.00% |
Risk-free interest rate | 0.13% | ' | 0.18% |
Maximum | Employee Stock Purchase Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected term (in years) | '1 year | ' | '6 months |
Expected volatility | ' | ' | 45.00% |
Risk-free interest rate | 0.17% | ' | 0.07% |
Stockholders_Equity_Option_and
Stockholders' Equity - Option and Restricted Stock Activity (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Options Outstanding, Number of Shares | ' | ' | ' | ' |
Shares Available for Grant, Beginning balance | 4,024,000 | 4,024,000 | 6,410,000 | 2,872,000 |
Additional shares reserved under the 2011 Equity Incentive Plan | 3,000,000 | 3,025,000 | 2,903,000 | 5,760,000 |
Shares Available for Grant, Granted | ' | -6,565,000 | -6,523,000 | -2,996,000 |
Shares Available for Grant, Exercised / Released | ' | 0 | 0 | 0 |
Share-based Payment Award, Options, Forfeitures in Period | ' | -5,271,000 | -1,234,000 | -774,000 |
Shares Available for Grant, Ending balance | ' | 5,755,000 | 4,024,000 | 6,410,000 |
Restricted Stock Outstanding | ' | ' | ' | ' |
Options Outstanding, Number of Shares | ' | ' | ' | ' |
Restricted Stock Units Outstanding Number of Shares, Beginning balance | 3,928,000 | 3,928,000 | 802,000 | ' |
Restricted Stock Units Outstanding Number of Share, Grants in Period | ' | 3,542,000 | 3,569,000 | 810,000 |
Restricted Stock Units Outstanding Number of Share, Exercised in Period | ' | -920,000 | -209,000 | ' |
Restricted Stock Units Outstanding Number of Share, Forfeited in Period | ' | -1,119,000 | -234,000 | -8,000 |
Restricted Stock Units Outstanding Number of Shares, Ending balance | ' | 5,431,000 | 3,928,000 | 802,000 |
Employee Stock Option [Member] | ' | ' | ' | ' |
Options Outstanding, Number of Shares | ' | ' | ' | ' |
Share-based Payment Award, Options, Forfeitures in Period | ' | -4,157,000 | -1,000,000 | -766,000 |
Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 15,189,000 | 15,189,000 | 15,335,000 | 17,723,000 |
Share-based Payment Award, Options, Grants in Period | ' | 3,023,000 | 2,954,000 | 2,186,000 |
Options exercised / Restricted stock released (in shares) | ' | -5,147,000 | -2,100,000 | -3,808,000 |
Share-based Payment Award, Options, Outstanding, Number, Ending Balance | ' | 8,908,000 | 15,189,000 | 15,335,000 |
Share-based Payment Award, Options, Beginning Balance, Weighted Average Exercise Price | 6.98 | 6.98 | 5.7 | 4.32 |
Additional shares reserved under the 2012 Equity Incentive Plan | ' | 0 | 0 | 0 |
Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | ' | 7.43 | 12.3 | 13.44 |
Share-based Payment Award, Options, Exercised in Period, Weighted Average Exercise Price | ' | 4.47 | 3.84 | 3.75 |
Share-based Payment Award, Options, Forfeited in Period, Weighted Average Exercise Price | ' | 12.77 | 9.57 | 5.58 |
Share-based Payment Award, Options, Ending Balance, Weighted Average Exercise Price | ' | 5.89 | 6.98 | 5.7 |
Stockholders_Equity_Aggregate_
Stockholders' Equity - Aggregate intrinsic value of Option Activities (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Class of Stock [Line Items] | ' |
Options vested and expected to vest, Number of Shares | 8,454 |
Options vested and expected to vest, Weighted-Average Exercise Price | $5.80 |
Options vested and expected to vest, Weighted-Average Remaining Contractual Life | '6 years 1 month 28 days |
Options vested and expected to vest, Aggregate Intrinsic Value | $23,764 |
Options exercisable, Number of Shares | 5,440 |
Options exercisable, Weighted-Average Exercise Price | $4.98 |
Options exercisable, Weighted-Average Remaining Contractual Life | '4 years 11 months 16 days |
Options exercisable, Aggregate Intrinsic Value | 19,082 |
Restricted Stock [Member] | ' |
Class of Stock [Line Items] | ' |
Restricted stock expected to vest, Number of Shares | 4,159 |
Restricted stock expected to vest, Weighted Average Exercies Price | $0 |
Restricted stock expected to vest, Weighted Average Remaining Contractual Life (Years) | '1 year 7 months 2 days |
Restricted stock expected to vest, Aggregate Intrinsic Value | $34,856 |
Stockholders_Equity_StockBased
Stockholders' Equity - Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation | $23,620 | $20,875 | $11,599 |
Cost of Revenue | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation | 3,303 | 2,772 | 1,877 |
Sales and marketing | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation | 9,831 | 8,146 | 4,456 |
Research and development | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation | 2,414 | 1,880 | 1,167 |
General and administrative | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation | $8,072 | $8,077 | $4,099 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Stock Options Outstanding (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Reconciliation of Common Stock Outstanding [Line Items] | ' |
Options Outstanding, Number of Shares Outstanding | 8,908 |
Options Outstanding, Weighted-Average Remaining Contract Life | '6 years 3 months 15 days |
Options Outstanding, Weighted-Average Exercise Price per Share | $5.89 |
Options Exercisable, Number of shares Exercisable | 5,440 |
Options Exercisable, Weighted Average Exercise Price | $4.98 |
$0.20 to $1.49 | ' |
Reconciliation of Common Stock Outstanding [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit | $0.20 |
Range of Exercise Prices, Upper Range Limit | $1.49 |
Options Outstanding, Number of Shares Outstanding | 90 |
Options Outstanding, Weighted-Average Remaining Contract Life | '1 year 10 months 24 days |
Options Outstanding, Weighted-Average Exercise Price per Share | $0.97 |
Options Exercisable, Number of shares Exercisable | 90 |
Options Exercisable, Weighted Average Exercise Price | $0.97 |
$4.26 | ' |
Reconciliation of Common Stock Outstanding [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit | $4.26 |
Range of Exercise Prices, Upper Range Limit | $4.26 |
Options Outstanding, Number of Shares Outstanding | 2,263 |
Options Outstanding, Weighted-Average Remaining Contract Life | '3 years 3 months 26 days |
Options Outstanding, Weighted-Average Exercise Price per Share | $4.26 |
Options Exercisable, Number of shares Exercisable | 2,263 |
Options Exercisable, Weighted Average Exercise Price | $4.26 |
$4.60 to $5.10 | ' |
Reconciliation of Common Stock Outstanding [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit | $4.60 |
Range of Exercise Prices, Upper Range Limit | $5.10 |
Options Outstanding, Number of Shares Outstanding | 1,804 |
Options Outstanding, Weighted-Average Remaining Contract Life | '6 years 4 months 13 days |
Options Outstanding, Weighted-Average Exercise Price per Share | $4.74 |
Options Exercisable, Number of shares Exercisable | 1,524 |
Options Exercisable, Weighted Average Exercise Price | $4.69 |
$5.80 to $6.03 | ' |
Reconciliation of Common Stock Outstanding [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit | $5.80 |
Range of Exercise Prices, Upper Range Limit | $6.03 |
Options Outstanding, Number of Shares Outstanding | 2,338 |
Options Outstanding, Weighted-Average Remaining Contract Life | '6 years 3 months 22 days |
Options Outstanding, Weighted-Average Exercise Price per Share | $5.89 |
Options Exercisable, Number of shares Exercisable | 1,297 |
Options Exercisable, Weighted Average Exercise Price | $5.88 |
$6.20 to $17.98 | ' |
Reconciliation of Common Stock Outstanding [Line Items] | ' |
Range of Exercise Prices, Lower Range Limit | $6.20 |
Range of Exercise Prices, Upper Range Limit | $17.98 |
Options Outstanding, Number of Shares Outstanding | 2,413 |
Options Outstanding, Weighted-Average Remaining Contract Life | '9 years 1 month 28 days |
Options Outstanding, Weighted-Average Exercise Price per Share | $8.45 |
Options Exercisable, Number of shares Exercisable | 266 |
Options Exercisable, Weighted Average Exercise Price | $9.84 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (401(k) plan, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Maximum percentage of employee contributions matched up by the company | 50.00% | 50.00% | 50.00% |
Defined benefit plan, annual limit company's matching contribution, amount | $2,000 | $2,000 | $2,000 |
Defined benefit plan, employers' discretionary contribution, amount | $1,300,000 | $1,100,000 | $1,000,000 |
Minimum | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined benefit plan, eligible domestic employees attainable age | '21 years | ' | ' |
Defined benefit plan, hours of services per week eligible for contribution | '20 hours | ' | ' |
Maximum | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined benefit plan, employee contribution of pre-tax salary percentage | 90.00% | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Internal Revenue Service (IRS) | Internal Revenue Service (IRS) | Internal Revenue Service (IRS) | State and Local Jurisdiction | State and Local Jurisdiction | State and Local Jurisdiction | State and Local Jurisdiction | State and Local Jurisdiction | MALAYSIA | MALAYSIA | ||||
Research And Development Tax Credit Carryforward | Excess Tax Benefits from Stock Based Compensation Expense | California Enterprise Zone Credits Expiring 2024 [Member] | Research And Development Tax Credit Carryforward | Other Tax Credit Carryforward | Excess Tax Benefits from Stock Based Compensation Expense | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | ||||||
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal statutory rate | 34.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit from change in tax status | $0 | $0 | $20,740,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax asset as a result of the merger | ' | ' | 8,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
income tax holiday period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' |
Tax benefit | -871,000 | -32,107,000 | 19,383,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 |
Earnings per share benefit (less than $0.01) | ($0.29) | ($0.58) | $0.23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 |
Change in the valuation allowance | 6,800,000 | 35,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carryforwards | ' | ' | ' | 91,800,000 | ' | 50,000,000 | 66,200,000 | ' | ' | ' | 35,200,000 | ' | ' |
Net Operating loss carryforwards, expiration Year | '2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax credits carryforward | ' | ' | ' | ' | 2,400,000 | ' | ' | 200,000 | 2,600,000 | 1,900,000 | ' | ' | ' |
Tax credits carryforward, expiration Year | ' | ' | ' | ' | '2031 | ' | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefits from exercise of stock options | 360,000 | -1,488,000 | -2,528,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits | 880,000 | 433,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross amount of unrecognized tax benefits, which, if recognized, would affect effective tax rate | 51,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued Interest | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized interest or penalties related to unrecognized tax | 3,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unremitted earning of foreign subsidiaries considered as permanently reinvested in foreign operations | $3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Income_from_Conti
Income Taxes - Income from Continuing Operations before Provision for Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | ($20,124) | ($10,381) | ($3,664) |
International | ' | ' | ' | ' | ' | ' | ' | ' | -1,857 | -326 | -608 |
Loss before income taxes | $3,307 | $4,749 | $4,162 | $9,762 | $667 | $3,262 | $3,552 | $3,226 | ($21,981) | ($10,707) | ($4,272) |
Income_Taxes_Income_Tax_Provis
Income Taxes - Income Tax Provision (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $0 | ($489) | $1,116 |
Foreign | 501 | 1,112 | 424 |
State and local | 153 | 144 | 98 |
Total current income tax provision | 654 | 767 | 1,638 |
Deferred: | ' | ' | ' |
Federal | 0 | 25,779 | -16,756 |
Foreign | -90 | 76 | 56 |
State and local | 307 | 5,485 | -4,321 |
Total deferred income tax provision (benefit) | 217 | 31,340 | -21,021 |
Income tax provision (benefit) | $871 | $32,107 | ($19,383) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Income Taxes Provided at Federal Statutory Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. income tax at federal statutory rate | ($7,464) | ($3,640) | ($1,452) |
Provision from (income) loss attributable to LLC (through February 28, 2011) | 0 | 0 | 1,470 |
Benefit from change in tax status | 0 | 0 | -20,740 |
State income taxes, net of federal benefit | 544 | 391 | 52 |
Foreign tax rate differential | 1,000 | 674 | 415 |
Permanent differences | 231 | 364 | 876 |
State tax credits | -1,824 | -1,040 | -228 |
Valuation allowance | 8,366 | 35,690 | 196 |
Other, net | 18 | -332 | 28 |
Income tax provision (benefit) | $871 | $32,107 | ($19,383) |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Income Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Accrued liabilities | $4,157 | $3,580 |
State taxes | 0 | 0 |
Allowance for doubtful accounts | 32 | 99 |
Current deferred tax assets | 4,189 | 3,679 |
Share-based compensation expense | 13,126 | 12,261 |
Net operating loss carryforwards | 16,452 | 9,324 |
State tax credits | 4,634 | 2,487 |
Unrealized loss on foreign exchange transactions | 0 | 266 |
Amortization of tax intangibles | 9,486 | 11,751 |
Other, net | 194 | -1,805 |
Non-current deferred tax assets | 43,892 | 34,284 |
Total current and non-current | 48,081 | 37,963 |
Deferred tax liabilities | ' | ' |
Property & equipment | -1,204 | -203 |
Convertible debt costs | -2,571 | 0 |
Gross deferred tax assets | 44,306 | 37,760 |
Less: Valuation allowance | -42,155 | -35,392 |
Net deferred tax assets | $2,151 | $2,368 |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognzied Tax Benefits (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' |
Balance as of December 31, 2012 | $433 |
Additions based on tax positions related to the current year | 317 |
Additions for tax positions of prior years | 130 |
Reductions for tax positions of prior years | 0 |
Balance as of December 31, 2013 | $880 |
Reportable_Segments_Additional
Reportable Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Reportable_Segments_Summarized
Reportable Segments - Summarized Financial Information Based Geographic Location (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $77,182 | $66,482 | $67,697 | $61,121 | $67,345 | $59,090 | $59,694 | $57,574 | $272,482 | $243,703 | $205,501 |
Total net revenue | 77,182 | 66,482 | 67,697 | 61,121 | 67,345 | 59,090 | 59,694 | 57,574 | 272,482 | 243,703 | 205,501 |
Direct profit contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Direct profit contribution | ' | ' | ' | ' | ' | ' | ' | ' | 137,053 | 122,787 | 102,034 |
Adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | -3,303 | -2,772 | -1,877 |
Overhead allocations and other, net | ' | ' | ' | ' | ' | ' | ' | ' | -23,717 | -12,633 | -8,062 |
Gross profit | 31,581 | 26,752 | 29,077 | 22,623 | 32,026 | 24,546 | 25,812 | 24,998 | 110,033 | 107,382 | 92,095 |
NALA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 173,188 | 150,041 | 127,430 |
Total net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 173,188 | 150,041 | 127,430 |
Direct profit contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Direct profit contribution | ' | ' | ' | ' | ' | ' | ' | ' | 90,302 | 80,153 | 72,333 |
EMEA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 73,839 | 66,902 | 58,344 |
Total net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 73,839 | 66,902 | 58,344 |
Direct profit contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Direct profit contribution | ' | ' | ' | ' | ' | ' | ' | ' | 39,040 | 35,517 | 27,756 |
APJ | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 25,455 | 26,760 | 19,727 |
Total net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 25,455 | 26,760 | 19,727 |
Direct profit contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Direct profit contribution | ' | ' | ' | ' | ' | ' | ' | ' | $7,711 | $7,117 | $1,945 |
Reportable_Segments_LongLived_
Reportable Segments - Long-Lived Assets by Geographic Location (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Total property and equipment, net | $27,998,000 | $34,513,000 |
NALA | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Total property and equipment, net | 22,976,000 | 29,783,000 |
Additions to long-lived assets | 2,900,000 | 22,700,000 |
EMEA | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Total property and equipment, net | 1,614,000 | 1,120,000 |
Additions to long-lived assets | 1,300,000 | 300,000 |
APJ | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Total property and equipment, net | 3,408,000 | 3,610,000 |
Additions to long-lived assets | $1,300,000 | $2,100,000 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Selected Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net revenue | $77,182 | $66,482 | $67,697 | $61,121 | $67,345 | $59,090 | $59,694 | $57,574 | $272,482 | $243,703 | $205,501 | ||||||||
Gross profit | 31,581 | 26,752 | 29,077 | 22,623 | 32,026 | 24,546 | 25,812 | 24,998 | 110,033 | 107,382 | 92,095 | ||||||||
Loss from operations | 384 | 3,656 | 3,867 | 9,655 | 197 | 3,382 | 3,219 | 3,135 | -17,561 | -9,933 | -3,145 | ||||||||
Loss before provision for income taxes | 3,307 | 4,749 | 4,162 | 9,762 | 667 | 3,262 | 3,552 | 3,226 | -21,981 | -10,707 | -4,272 | ||||||||
Net income (loss) | $1,988 | [1] | $5,502 | [1] | $4,906 | [1] | $10,455 | [1] | $1,185 | [1] | $3,584 | [1] | $36,769 | [1] | $1,276 | [1] | ($22,852) | ($42,814) | $15,111 |
Net income (loss) per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Basic and diluted (in dollars per share) | $0.02 | $0.07 | $0.06 | $0.14 | $0.02 | $0.05 | $0.50 | $0.02 | ' | ' | ' | ||||||||
[1] | The three months ended June 30, 2012 includes the effect of providing a valuation allowance of $33.1 million for a substantial portion of the Company’s deferred tax assets. |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data (Unaudited) (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
In Thousands, unless otherwise specified | Deferred Income Tax Valuation Allowances | ||
Quarterly Information [Line Items] | ' | ' | ' |
Valuation allowance of deferred tax assets | $42,155 | $35,392 | $33,100 |
Related_Party_Transactions_Add
Related Party Transactions - Additional information (Detail) (Director, USD $) | 4 Months Ended |
In Millions, unless otherwise specified | Apr. 30, 2013 |
Director | ' |
Transactions with Third Party [Line Items] | ' |
Related party transaction payment for consulting services | $0.30 |
Subsequent_Events_Details
Subsequent Events (Details) (Scout Analytics, Inc. [Member], Subsequent Event [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jan. 22, 2014 |
Scout Analytics, Inc. [Member] | Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Total purchase consideration paid in cash | $32.80 |