Brightcove (BCOV) 10-Q 28 Apr 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 25, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	BCOV
Entity Registrant Name	BRIGHTCOVE INC
Entity Central Index Key	1,313,275
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		32,767,729

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 29,292	$ 27,637
Accounts receivable, net of allowance of $281 and $332 at March 31, 2016 and December 31, 2015, respectively	20,675	21,213
Prepaid expenses	4,818	3,320
Other current assets	1,538	1,259
Total current assets	56,323	53,429
Property and equipment, net	9,189	8,689
Intangible assets, net	13,321	13,786
Goodwill	50,776	50,776
Deferred tax asset	80	63
Restricted cash, net of current portion	201	201
Other assets	881	724
Total assets	130,771	127,668
Current liabilities:
Accounts payable	2,786	3,302
Accrued expenses	13,149	12,849
Capital lease liability	726	850
Equipment financing	298
Deferred revenue	32,877	29,836
Total current liabilities	49,836	46,837
Deferred revenue, net of current portion	132	95
Other liabilities	2,688	2,601
Total liabilities	$ 52,656	$ 49,533
Commitments and contingencies (Note 9)
Stockholders' equity:
Undesignated preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued
Common stock, $0.001 par value; 100,000,000 shares authorized; 32,897,875 and 32,810,631 shares issued at March 31, 2016 and December 31, 2015, respectively	$ 33	$ 33
Additional paid-in capital	221,903	220,458
Treasury stock, at cost; 135,000 shares	(871)	(871)
Accumulated other comprehensive loss	(746)	(888)
Accumulated deficit	(142,204)	(140,597)
Total stockholders' equity	78,115	78,135
Total liabilities and stockholders' equity	$ 130,771	$ 127,668

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for accounts receivable	$ 281	$ 332
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	32,897,875	32,810,631
Treasury stock, shares	135,000	135,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Subscription and support revenue	$ 34,653	$ 31,811
Professional services and other revenue	1,639	1,074
Total revenue	36,292	32,885
Cost of revenue:
Cost of subscription and support revenue	11,675	10,346
Cost of professional services and other revenue	1,589	1,246
Total cost of revenue	13,264	11,592
Gross profit	23,028	21,293
Operating expenses:
Research and development	7,426	7,820
Sales and marketing	12,535	10,839
General and administrative	4,577	5,161
Merger-related	21	14
Total operating expenses	24,559	23,834
Loss from operations	(1,531)	(2,541)
Other expense, net	(31)	(224)
Loss before income taxes	(1,562)	(2,765)
Provision for income taxes	45	66
Net loss	$ (1,607)	$ (2,831)
Net loss per share-basic and diluted	$ (0.05)	$ (0.09)
Weighted-average number of common shares used in computing net loss per share- basic and diluted	32,724,850	32,495,685
Cost of Subscription and Support Revenue [Member]
Stock-based compensation included in above line items:
Stock-based compensation	$ 42	$ 20
Amortization of acquired intangible assets included in above line items:
Amortization of acquired intangible assets	508	507
Cost of Professional Services and Other Revenue [Member]
Stock-based compensation included in above line items:
Stock-based compensation	57	33
Research and Development [Member]
Stock-based compensation included in above line items:
Stock-based compensation	389	434
Amortization of acquired intangible assets included in above line items:
Amortization of acquired intangible assets	31	32
Sales and Marketing [Member]
Stock-based compensation included in above line items:
Stock-based compensation	482	458
Amortization of acquired intangible assets included in above line items:
Amortization of acquired intangible assets	226	251
General and Administrative [Member]
Stock-based compensation included in above line items:
Stock-based compensation	$ 489	$ 508

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,607)	$ (2,831)
Other comprehensive (loss) income:
Foreign currency translation adjustments	(142)	55
Comprehensive loss	$ (1,749)	$ (2,776)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities
Net loss	$ (1,607)	$ (2,831)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	2,014	2,429
Stock-based compensation	1,459	1,453
Provision for reserves on accounts receivable	91	76
Changes in assets and liabilities:
Accounts receivable	541	1,993
Prepaid expenses and other current assets	(2,069)	(534)
Other assets	(156)	(226)
Accounts payable	(1,039)	789
Accrued expenses	844	(2,540)
Deferred revenue	2,917	(563)
Net cash provided by operating activities	2,995	46
Investing activities
Cash paid for purchase of intangible asset	(125)
Purchases of property and equipment, net of returns	(843)	(581)
Capitalized internal-use software costs	(810)	(157)
Net cash used in investing activities	(1,778)	(738)
Financing activities
Proceeds from exercise of stock options	43	46
Payments of withholding tax on RSU vesting	(86)
Proceeds from equipment financing	604
Payments on equipment financing	(48)
Payments under capital lease obligation	(278)	(319)
Net cash provided by (used in) financing activities	235	(273)
Effect of exchange rate changes on cash	203	(44)
Net increase (decrease) in cash and cash equivalents	1,655	(1,009)
Cash and cash equivalents at beginning of period	27,637	22,916
Cash and cash equivalents at end of period	$ 29,292	$ 21,907

Business Description and Basis

Business Description and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description and Basis of Presentation	1. Business Description and Basis of Presentation Business Description Brightcove Inc. (the Company) is a leading global provider of cloud services for video which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. At March 31, 2016, the Company had nine wholly-owned subsidiaries: Brightcove UK Ltd, Brightcove Singapore Pte. Ltd., Brightcove Korea, Brightcove Australia Pty Ltd, Brightcove Holdings, Inc., Brightcove Kabushiki Kaisha (Brightcove KK), Zencoder Inc. (Zencoder), Brightcove FZ-LLC, and Cacti Acquisition LLC. On March 10, 2016, the Company purchased an intangible asset for $300 plus a contingent amount of up to an additional $250, which will be determined on the 90 th Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited. These condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and related notes, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements and notes have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2015 contained in the Company’s Annual Report on Form 10-K and include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position for the three months ended March 31, 2016 and 2015. These interim periods are not necessarily indicative of the results to be expected for any other interim period or the full year. The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure, other than those disclosed in this Report on Form 10-Q. The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the condensed consolidated financial statements. As of March 31, 2016, the Company’s significant accounting policies and estimates, which are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, have not changed.

Concentration of Credit Risk

Concentration of Credit Risk	3 Months Ended
	Mar. 31, 2016
Risks and Uncertainties [Abstract]
Concentration of Credit Risk	2. Concentration of Credit Risk The Company has no significant off-balance sheet risk, such as foreign exchange contracts, option contracts or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents and trade accounts receivable. The Company maintains its cash and cash equivalents principally with accredited financial institutions of high credit standing. Although the Company deposits its cash with multiple financial institutions, its deposits, at times, may exceed federally insured limits. The Company routinely assesses the creditworthiness of its customers. The Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable. At March 31, 2016 and December 31, 2015, no individual customer accounted for 10% or more of net accounts receivable. For the three months ended March 31, 2016 and 2015, no individual customer accounted for 10% or more of total revenue.

Concentration of Other Risks

Concentration of Other Risks	3 Months Ended
	Mar. 31, 2016
Text Block [Abstract]
Concentration of Other Risks	3. Concentration of Other Risks The Company is dependent on certain content delivery network providers who provide digital media delivery functionality enabling the Company’s on-demand application service to function as intended for the Company’s customers and ultimate end-users. The disruption of these services could have a material adverse effect on the Company’s business, financial position, and results of operations.

Cash and Cash Equivalents

Cash and Cash Equivalents	3 Months Ended
	Mar. 31, 2016
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	4. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Management determines the appropriate classification of investments at the time of purchase, and re-evaluates such determination at each balance sheet date. The Company did not have any short-term or long-term investments at March 31, 2016 or December 31, 2015. Cash and cash equivalents primarily consist of cash on deposit with banks and amounts held in interest-bearing money market accounts. Cash equivalents are carried at cost, which approximates their fair market value. Cash and cash equivalents as of March 31, 2016 consist of the following: March 31, 2016 Description Contracted Amortized Cost Fair Market Value Balance Per Balance Sheet Cash Demand $ 19,705 $ 19,705 $ 19,705 Money market funds Demand 9,587 9,587 9,587 Total cash and cash equivalents $ 29,292 $ 29,292 $ 29,292 Cash and cash equivalents as of December 31, 2015 consist of the following: December 31, 2015 Description Contracted Amortized Fair Market Value Balance Per Balance Sheet Cash Demand $ 18,057 $ 18,057 $ 18,057 Money market funds Demand 9,580 9,580 9,580 Total cash and cash equivalents $ 27,637 $ 27,637 $ 27,637

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Loss per Share	5. Net Loss per Share The following potentially dilutive common stock equivalent shares have been excluded from the computation of weighted-average shares outstanding as their effect would have been anti-dilutive (in thousands): Three Months Ended March 31, 2016 2015 Options outstanding 4,583 3,086 Restricted stock units outstanding 1,507 1,178 Warrants 28 28

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	6. Fair Value of Financial Instruments The following tables set forth the Company’s financial instruments carried at fair value using the lowest level of input as of March 31, 2016 and December 31, 2015: March 31, 2016 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 9,587 $ — $ — $ 9,587 Restricted cash — 201 — 201 Total assets $ 9,587 $ 201 $ — $ 9,788 December 31, 2015 Quoted Prices in Markets for (Level 1) Significant Other Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 9,580 $ — $ — $ 9,580 Restricted cash — 201 — 201 Total assets $ 9,580 $ 201 $ — $ 9,781

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	7. Stock-based Compensation The fair value of stock options granted was estimated at the date of grant using the following weighted-average assumptions: Three Months Ended March 31, 2016 2015 Expected life in years 6.2 6.3 Risk-free interest rate 1.61 % 1.82 % Volatility 45 % 49 % Dividend yield — — Weighted-average fair value of stock options granted $ 2.67 $ 3.99 The Company recorded stock-based compensation expense of $1,459 and $1,453 for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there was $11,368 of unrecognized stock-based compensation expense related to stock-based awards that is expected to be recognized over a weighted-average period of 2.77 years. The following is a summary of the status of the Company’s stock options as of March 31, 2016 and the stock option activity during the three months ended March 31, 2016. Number of Shares Weighted-Average Weighted-Average Remaining Term (In Years) Aggregate Intrinsic Value (1) Outstanding at December 31, 2015 4,622,886 $ 6.63 Granted 93,250 5.88 Exercised (33,263 ) 1.28 $ 125 Canceled (104,827 ) 9.39 Outstanding at March 31, 2016 4,578,046 $ 6.59 6.78 $ 5,060 Exercisable at March 31, 2016 2,363,903 $ 6.09 4.84 $ 4,695 Vested or expected to vest at March 31, 2016 (2) 4,041,896 $ 6.56 6.48 $ 4,967 (1) The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company’s common stock on March 31, 2016 of $6.24 per share, or the date of exercise, as appropriate, and the exercise price of the underlying options. (2) This represents the number of vested options as of March 31, 2016 plus the number of unvested options expected to vest as of March 31, 2016 based on the unvested options outstanding at March 31, 2016 adjusted for an estimated forfeiture rate. The following table summarizes the restricted stock unit activity during the three months ended March 31, 2016: Shares Weighted Average Grant Date Fair Value Unvested by December 31, 2015 1,503,814 $ 6.69 Granted 162,000 5.88 Vested and issued (53,981 ) 7.21 Canceled (35,305 ) 7.36 Unvested by March 31, 2016 1,576,528 $ 6.57

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes For the three months ended March 31, 2016 and 2015, the Company recorded income tax expense of $45 and $66, respectively. The income tax expense relates principally to the Company’s foreign operations. The Company has evaluated the positive and negative evidence bearing upon the realizability of its U.S. net deferred tax assets. As required by the provisions of Accounting Standards Codification (ASC) 740, Income Taxes

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Legal Matters The Company, from time to time, is party to litigation arising in the ordinary course of business. Management does not believe that the outcome of these claims will have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company based on the status of proceedings at this time. On August 27, 2012, a complaint was filed by Blue Spike, LLC naming the Company in a patent infringement case (Blue Spike, LLC v. Audible Magic Corporation, et al., United States District Court for the Eastern District of Texas). The complaint alleges that the Company has infringed U.S. Patent No. 7,346,472 with a listed issue date of March 18, 2008, entitled “Method and Device for Monitoring and Analyzing Signals,” U.S. Patent No. 7,660,700 with a listed issue date of February 9, 2010, entitled “Method and Device for Monitoring and Analyzing Signals,” U.S. Patent No. 7,949,494 with a listed issue date of May 24, 2011, entitled “Method and Device for Monitoring and Analyzing Signals” and U.S. Patent No. 8,214,175 with a listed issue date of July 3, 2012, entitled “Method and Device for Monitoring and Analyzing Signals.” The complaint seeks an injunction enjoining infringement, damages and pre- and post-judgment costs and interest. The Company answered and filed counterclaims against Blue Spike on December 3, 2012. The Company amended its answer and counterclaims on July 15, 2013. This complaint is subject to indemnification by one of the Company’s vendors. The Company cannot yet determine whether it is probable that a loss will be incurred in connection with this complaint, nor can the Company reasonably estimate the potential loss, if any. Guarantees and Indemnification Obligations The Company typically enters into indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses and costs incurred by the indemnified party, generally the Company’s customers, in connection with patent, copyright, trade secret, or other intellectual property or personal right infringement claim by third parties with respect to the Company’s technology. The term of these indemnification agreements is generally perpetual after execution of the agreement. Based on when customers first subscribe for the Company’s service, the maximum potential amount of future payments the Company could be required to make under certain of these indemnification agreements is unlimited, however, more recently the Company has typically limited the maximum potential value of such potential future payments in relation to the value of the contract. Based on historical experience and information known as of March 31, 2016, the Company has not incurred any costs for the above guarantees and indemnities. The Company has received requests for indemnification from customers in connection with patent infringement suits brought against the customer by a third party. To date, the Company has not agreed that the requested indemnification is required by the Company’s contract with any such customer. In certain circumstances, the Company warrants that its products and services will perform in all material respects in accordance with its standard published specification documentation in effect at the time of delivery of the licensed products and services to the customer for the warranty period of the product or service. To date, the Company has not incurred significant expense under its warranties and, as a result, the Company believes the estimated fair value of these agreements is immaterial.

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt	10. Debt On November 19, 2015, the Company entered into an amended and restated loan and security agreement with a lender (the “Loan Agreement”) providing for up to a $20.0 million asset based line of credit (the “Line of Credit”). Under the Line of Credit, the Company can borrow up to $20.0 million. Borrowings under the Line of Credit are secured by substantially all of the Company’s assets, excluding our intellectual property. Outstanding amounts under the Line of Credit accrue interest at a rate equal to the prime rate or the LIBOR rate plus 2.5%. Under the Loan Agreement, the Company must comply with certain financial covenants, including maintaining a minimum asset coverage ratio. If the outstanding principal during any month is at least $15.0 million, the Company must also maintain a minimum net income threshold based on non-GAAP operating measures. Failure to comply with these covenants, or the occurrence of an event of default, could permit the lender under the Line of Credit to declare all amounts borrowed under the Line of Credit, together with accrued interest and fees, to be immediately due and payable. The Company was in compliance with all covenants under the Line of Credit as of March 31, 2016. On December 31, 2015, the Company entered into an equipment financing agreement with a lender (the “December 2015 Equipment Financing Agreement”) to finance the purchase of $604 in computer equipment. In February 2016, the Company drew down $604 under the December 2015 Equipment Financing Agreement, and the liability was recorded at fair value using a market interest rate. The Company is repaying its obligation over a two year period through January 2018, and the amount outstanding was $556 as of March 31, 2016.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Information	11. Segment Information Geographic Data Total revenue from unaffiliated customers by geographic area, based on the location of the customer, was as follows: Three Months Ended March 31, 2016 2015 Revenue: North America $ 23,040 $ 20,448 Europe 6,077 6,731 Japan 3,466 2,059 Asia Pacific 3,399 3,201 Other 310 446 Total revenue $ 36,292 $ 32,885 North America is comprised of revenue from the United States, Canada and Mexico. During the three months ended March 31, 2016 and 2015, revenue from customers located in the United States was $21,663 and $19,007, respectively. During the three months ended March 31, 2016 and 2015, no other country contributed more than 10% of the Company’s total revenue. As of March 31, 2016 and December 31, 2015, property and equipment at locations outside the U.S. was not material.

Recently Issued and Adopted Acc

Recently Issued and Adopted Accounting Standards	3 Months Ended
	Mar. 31, 2016
Accounting Changes and Error Corrections [Abstract]
Recently Issued and Adopted Accounting Standards	12. Recently Issued and Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board jointly issued Accounting Standards Update (ASU) No. 2014-9, Revenue from Contracts with Customers In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In February 2016 the FASB issued ASU 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification, In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. In April 2015, the FASB, issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs, In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810), Amendments to the Consolidation Analysis

Business Description and Basi19

Business Description and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description	Business Description Brightcove Inc. (the Company) is a leading global provider of cloud services for video which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. At March 31, 2016, the Company had nine wholly-owned subsidiaries: Brightcove UK Ltd, Brightcove Singapore Pte. Ltd., Brightcove Korea, Brightcove Australia Pty Ltd, Brightcove Holdings, Inc., Brightcove Kabushiki Kaisha (Brightcove KK), Zencoder Inc. (Zencoder), Brightcove FZ-LLC, and Cacti Acquisition LLC. On March 10, 2016, the Company purchased an intangible asset for $300 plus a contingent amount of up to an additional $250, which will be determined on the 90 th
Basis of Presentation	Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited. These condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and related notes, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements and notes have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2015 contained in the Company’s Annual Report on Form 10-K and include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position for the three months ended March 31, 2016 and 2015. These interim periods are not necessarily indicative of the results to be expected for any other interim period or the full year. The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure, other than those disclosed in this Report on Form 10-Q. The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the condensed consolidated financial statements. As of March 31, 2016, the Company’s significant accounting policies and estimates, which are detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, have not changed.

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	3 Months Ended
	Mar. 31, 2016
Cash and Cash Equivalents [Abstract]
Schedule of Cash and Cash Equivalents	Cash and cash equivalents as of March 31, 2016 consist of the following: March 31, 2016 Description Contracted Amortized Cost Fair Market Value Balance Per Balance Sheet Cash Demand $ 19,705 $ 19,705 $ 19,705 Money market funds Demand 9,587 9,587 9,587 Total cash and cash equivalents $ 29,292 $ 29,292 $ 29,292 Cash and cash equivalents as of December 31, 2015 consist of the following: December 31, 2015 Description Contracted Amortized Fair Market Value Balance Per Balance Sheet Cash Demand $ 18,057 $ 18,057 $ 18,057 Money market funds Demand 9,580 9,580 9,580 Total cash and cash equivalents $ 27,637 $ 27,637 $ 27,637

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Potentially Dilutive Common Stock Equivalent Shares Excluded from Computation of Weighted-Average Shares Outstanding	The following potentially dilutive common stock equivalent shares have been excluded from the computation of weighted-average shares outstanding as their effect would have been anti-dilutive (in thousands): Three Months Ended March 31, 2016 2015 Options outstanding 4,583 3,086 Restricted stock units outstanding 1,507 1,178 Warrants 28 28

Fair Value of Financial Instr22

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Company's Financial Instruments Carried at Fair Value Using Lowest Level of Input	The following tables set forth the Company’s financial instruments carried at fair value using the lowest level of input as of March 31, 2016 and December 31, 2015: March 31, 2016 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 9,587 $ — $ — $ 9,587 Restricted cash — 201 — 201 Total assets $ 9,587 $ 201 $ — $ 9,788 December 31, 2015 Quoted Prices in Markets for (Level 1) Significant Other Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 9,580 $ — $ — $ 9,580 Restricted cash — 201 — 201 Total assets $ 9,580 $ 201 $ — $ 9,781

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted-Average Assumptions	The fair value of stock options granted was estimated at the date of grant using the following weighted-average assumptions: Three Months Ended March 31, 2016 2015 Expected life in years 6.2 6.3 Risk-free interest rate 1.61 % 1.82 % Volatility 45 % 49 % Dividend yield — — Weighted-average fair value of stock options granted $ 2.67 $ 3.99
Summary of Status of Company's Stock Option Activity	The following is a summary of the status of the Company’s stock options as of March 31, 2016 and the stock option activity during the three months ended March 31, 2016. Number of Shares Weighted-Average Weighted-Average Remaining Term (In Years) Aggregate Intrinsic Value (1) Outstanding at December 31, 2015 4,622,886 $ 6.63 Granted 93,250 5.88 Exercised (33,263 ) 1.28 $ 125 Canceled (104,827 ) 9.39 Outstanding at March 31, 2016 4,578,046 $ 6.59 6.78 $ 5,060 Exercisable at March 31, 2016 2,363,903 $ 6.09 4.84 $ 4,695 Vested or expected to vest at March 31, 2016 (2) 4,041,896 $ 6.56 6.48 $ 4,967 (1) The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company’s common stock on March 31, 2016 of $6.24 per share, or the date of exercise, as appropriate, and the exercise price of the underlying options. (2) This represents the number of vested options as of March 31, 2016 plus the number of unvested options expected to vest as of March 31, 2016 based on the unvested options outstanding at March 31, 2016 adjusted for an estimated forfeiture rate.
Restricted Stock Units Activity	The following table summarizes the restricted stock unit activity during the three months ended March 31, 2016: Shares Weighted Average Grant Date Fair Value Unvested by December 31, 2015 1,503,814 $ 6.69 Granted 162,000 5.88 Vested and issued (53,981 ) 7.21 Canceled (35,305 ) 7.36 Unvested by March 31, 2016 1,576,528 $ 6.57

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Total Revenue from Unaffiliated Customers by Geographic Area, Based on Location of Customer	Total revenue from unaffiliated customers by geographic area, based on the location of the customer, was as follows: Three Months Ended March 31, 2016 2015 Revenue: North America $ 23,040 $ 20,448 Europe 6,077 6,731 Japan 3,466 2,059 Asia Pacific 3,399 3,201 Other 310 446 Total revenue $ 36,292 $ 32,885

Business Description and Basi25

Business Description and Basis of Presentation - Additional Information (Detail) $ in Thousands	Mar. 10, 2016USD ($)	Mar. 31, 2016USD ($)Subsidiaries
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of wholly-owned subsidiaries | Subsidiaries		9
Purchase of intangible assets	$ 300
Purchase of intangible assets, contingent amount		$ 250
Useful life		3 years
Net carrying value of the intangible asset		$ 294

Concentration of Credit Risk -

Concentration of Credit Risk - Additional Information (Detail) - Customer	Mar. 31, 2016	Mar. 31, 2015
Risks and Uncertainties [Abstract]
Number of customers accounted for more than 10% of total revenue	0	0
Number of customers accounted for more than 10% of net accounts receivable	0	0

Cash and Cash Equivalents - Sch

Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Investment Holdings [Line Items]
Amortized Cost	$ 29,292	$ 27,637
Fair Market Value	29,292	27,637
Balance Per Balance Sheet	29,292	27,637
Cash [Member]
Investment Holdings [Line Items]
Amortized Cost	19,705	18,057
Fair Market Value	19,705	18,057
Balance Per Balance Sheet	19,705	18,057
Money Market Funds [Member]
Investment Holdings [Line Items]
Amortized Cost	9,587	9,580
Fair Market Value	9,587	9,580
Balance Per Balance Sheet	$ 9,587	$ 9,580

Net Loss per Share - Potentiall

Net Loss per Share - Potentially Dilutive Common Stock Equivalent Shares Excluded from Computation of Weighted-Average Shares Outstanding (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Options outstanding [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive common shares excluded from the computation of weighted-average shares outstanding	4,583	3,086
RSUs [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive common shares excluded from the computation of weighted-average shares outstanding	1,507	1,178
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive common shares excluded from the computation of weighted-average shares outstanding	28	28

Fair Value of Financial Instr29

Fair Value of Financial Instruments - Company's Financial Instruments Carried at Fair Value Using Lowest Level of Input (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 9,587	$ 9,580
Restricted cash	201	201
Total assets	9,788	9,781
Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	9,587	9,580
Total assets	9,587	9,580
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Restricted cash	201	201
Total assets	$ 201	$ 201

Stock-based Compensation - Weig

Stock-based Compensation - Weighted Average Assumptions (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected life in years	6 years 2 months 12 days	6 years 3 months 18 days
Risk-free interest rate	1.61%	1.82%
Volatility	45.00%	49.00%
Dividend yield	0.00%	0.00%
Weighted-average fair value of stock options granted	$ 2.67	$ 3.99

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unrecognized stock-based compensation expense	$ 11,368
Weighted average period	2 years 9 months 7 days
Stock based compensation expense	$ 1,459	$ 1,453

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Stock Option Activity (Detail) - Options outstanding [Member] - Stock Compensation Plan [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at December 31, 2015 | shares	4,622,886
Shares, Granted | shares	93,250
Shares, Exercised | shares	(33,263)
Shares, Canceled | shares	(104,827)
Shares, Outstanding at March 31, 2016 | shares	4,578,046
Shares, Exercisable at March 31, 2016 | shares	2,363,903
Shares, Vested or expected to vest at March 31, 2016 | shares	4,041,896
Weighted-Average Exercise Price, Outstanding at December 31, 2015 | $ / shares	$ 6.63
Weighted-Average Exercise Price, Granted | $ / shares	5.88
Weighted-Average Exercise Price, Exercised | $ / shares	1.28
Weighted-Average Exercise Price, Canceled | $ / shares	9.39
Weighted-Average Exercise Price, Outstanding at March 31, 2016 | $ / shares	6.59
Weighted-Average Exercise Price, Exercisable at March 31, 2016 | $ / shares	6.09
Weighted-Average Exercise Price, Vested or expected to vest at March 31, 2016 | $ / shares	$ 6.56
Weighted-Average Remaining Contractual Term, Outstanding at March 31, 2016	6 years 9 months 11 days
Weighted-Average Remaining Contractual Term, Exercisable at March 31, 2016	4 years 10 months 2 days
Weighted-Average Remaining Contractual Term, Vested or expected to vest at March 31, 2016	6 years 5 months 23 days
Aggregate Intrinsic Value, Exercised | $	$ 125
Aggregate Intrinsic Value, Outstanding at March 31, 2016 | $	5,060
Aggregate Intrinsic Value, Exercisable at March 31, 2016 | $	4,695
Aggregate Intrinsic Value, Vested or expected to vest at March 31, 2016 | $	$ 4,967

Stock-based Compensation - Su33

Stock-based Compensation - Summary of Stock Option Activity (Parenthetical) (Detail)	Mar. 31, 2016$ / shares
Stock Compensation Plan [Member] | Options outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate Intrinsic Value, Estimated per share fair value of common stock	$ 6.24

Stock-based Compensation - Su34

Stock-based Compensation - Summary of RSU Activity (Detail) - RSUs [Member]	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Unvested Shares, Beginning Balance | shares	1,503,814
Granted | shares	162,000
Vested and issued | shares	(53,981)
Canceled | shares	(35,305)
Unvested Shares, Ending Balance | shares	1,576,528
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 6.69
Weighted Average Grant Date Fair Value, Granted | $ / shares	5.88
Weighted Average Grant Date Fair Value, Vested and issued | $ / shares	7.21
Weighted Average Grant Date Fair Value, Canceled | $ / shares	7.36
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 6.57

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense	$ 45	$ 66

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended
	Feb. 29, 2016	Mar. 31, 2016
Debt Instrument [Line Items]
Debt instrument term		If the outstanding principal during any month is at least $15.0 million, the Company must also maintain a minimum net income threshold based on non-GAAP operating measures.
Repayment of equipment financing		$ 48,000
December Equipment Financing Agreement [Member]
Debt Instrument [Line Items]
Debt issuance date		Dec. 31, 2015
Computer equipment and support purchased		$ 604,000
Debt amount outstanding		$ 556,000
Repayment of equipment financing	$ 604,000
Repayment period of obligation under the agreement		2 years
Secured Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit, agreement start date		Nov. 19, 2015
Line of credit maximum borrowing capacity		$ 20,000,000
Percentage points added to prime rate or LIBOR		2.50%
Minimum [Member]
Debt Instrument [Line Items]
Minimum outstanding principal threshold limit		$ 15,000,000

Segment Information - Total Rev

Segment Information - Total Revenue from Unaffiliated Customers by Geographic Area, Based on Location of Customer (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 36,292	$ 32,885
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	23,040	20,448
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	6,077	6,731
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,466	2,059
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,399	3,201
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 310	$ 446

Segment Information - Additiona

Segment Information - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues from customers	$ 36,292	$ 32,885
Revenue percentage from other country to the company's total revenue	10.00%	10.00%
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues from customers	$ 21,663	$ 19,007