Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 15, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BCOV | ||
Entity Registrant Name | BRIGHTCOVE INC | ||
Entity Central Index Key | 1,313,275 | ||
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 | 34,060,039 | ||
Entity Public Float | $ 211,869,522 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 36,813 | $ 27,637 |
Accounts receivable, net of allowance of $154 and $332 at December 31, 2016 and December 31, 2015, respectively | 21,575 | 21,213 |
Prepaid expenses | 3,729 | 3,320 |
Other current assets | 2,168 | 1,259 |
Total current assets | 64,285 | 53,429 |
Property and equipment, net | 9,264 | 8,689 |
Intangible assets, net | 10,970 | 13,786 |
Goodwill | 50,776 | 50,776 |
Deferred tax asset | 121 | 63 |
Restricted cash, net of current portion | 201 | |
Other assets | 1,008 | 724 |
Total assets | 136,424 | 127,668 |
Current liabilities: | ||
Accounts payable | 5,327 | 3,302 |
Accrued expenses | 15,705 | 12,849 |
Capital lease liability | 489 | 850 |
Equipment financing | 307 | |
Deferred revenue | 34,665 | 29,836 |
Total current liabilities | 56,493 | 46,837 |
Deferred revenue, net of current portion | 91 | 95 |
Other liabilities | 1,644 | 2,601 |
Total liabilities | 58,228 | 49,533 |
Commitments and contingencies (Note 6) | ||
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; 34,143,148 and 32,810,631 shares issued at December 31, 2016 and 2015, respectively | 34 | 33 |
Additional paid-in capital | 230,788 | 220,458 |
Treasury stock, at cost; 135,000 shares | (871) | (871) |
Accumulated other comprehensive loss | (1,172) | (888) |
Accumulated deficit | (150,583) | (140,597) |
Total stockholders' equity | 78,196 | 78,135 |
Total liabilities and stockholders' equity | $ 136,424 | $ 127,668 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 154 | $ 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 | 34,143,148 | 32,810,631 |
Treasury stock, shares | 135,000 | 135,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | |||
Subscription and support revenue | $ 142,022 | $ 131,010 | $ 120,324 |
Professional services and other revenue | 8,244 | 3,696 | 4,693 |
Total revenue | 150,266 | 134,706 | 125,017 |
Cost of revenue: | |||
Cost of subscription and support revenue | 48,011 | 41,735 | 38,015 |
Cost of professional services and other revenue | 7,836 | 4,742 | 5,718 |
Total cost of revenue | 55,847 | 46,477 | 43,733 |
Gross profit | 94,419 | 88,229 | 81,284 |
Operating expenses: | |||
Research and development | 30,171 | 29,302 | 28,252 |
Sales and marketing | 54,038 | 45,795 | 46,014 |
General and administrative | 19,167 | 19,862 | 19,136 |
Merger-related | 21 | 201 | 3,075 |
Total operating expenses | 103,397 | 95,160 | 96,477 |
Loss from operations | (8,978) | (6,931) | (15,193) |
Other income (expense): | |||
Interest income | 99 | 6 | 11 |
Interest expense | (63) | (96) | (96) |
Other expense, net | (634) | (168) | (1,355) |
Total other expense, net | (598) | (258) | (1,440) |
Loss before income taxes | (9,576) | (7,189) | (16,633) |
Provision for income taxes | 410 | 391 | 260 |
Net loss | $ (9,986) | $ (7,580) | $ (16,893) |
Net loss per share - basic and diluted | $ (0.30) | $ (0.23) | $ (0.53) |
Weighted-average number of common shares used in computing net loss per share - basic and diluted | 33,189 | 32,598 | 31,949 |
Amortization of acquired intangible assets included in above line items: | |||
Amortization of acquired intangible assets | $ 3,116 | $ 3,112 | $ 3,200 |
Cost of Subscription and Support Revenue [Member] | |||
Stock-based compensation included in above line items: | |||
Stock-based compensation | 324 | 181 | 218 |
Amortization of acquired intangible assets included in above line items: | |||
Amortization of acquired intangible assets | 2,031 | 2,031 | 1,946 |
Cost of Professional Services and Other Revenue [Member] | |||
Stock-based compensation included in above line items: | |||
Stock-based compensation | 217 | 181 | 141 |
Research and Development [Member] | |||
Stock-based compensation included in above line items: | |||
Stock-based compensation | 1,275 | 1,392 | 1,399 |
Amortization of acquired intangible assets included in above line items: | |||
Amortization of acquired intangible assets | 126 | 126 | 140 |
Sales and Marketing [Member] | |||
Stock-based compensation included in above line items: | |||
Stock-based compensation | 2,320 | 2,155 | 2,193 |
Amortization of acquired intangible assets included in above line items: | |||
Amortization of acquired intangible assets | 959 | 955 | 1,114 |
General and Administrative [Member] | |||
Stock-based compensation included in above line items: | |||
Stock-based compensation | $ 1,876 | $ 2,105 | $ 2,436 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (9,986) | $ (7,580) | $ (16,893) |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (284) | (112) | (323) |
Comprehensive loss | $ (10,270) | $ (7,692) | $ (17,216) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2013 | $ 60,380 | $ 29 | $ 176,928 | $ (453) | $ (116,124) | |
Beginning Balance, shares at Dec. 31, 2013 | 29,034,919 | |||||
Issuance of common stock upon exercise of stock options | 597 | 597 | ||||
Issuance of common stock upon exercise of stock options, shares | 210,735 | |||||
Issuance of common stock pursuant to restricted stock units, shares | 328,353 | |||||
Issuance of common stock upon acquisition | 30,615 | $ 3 | 30,612 | |||
Issuance of common stock upon acquisition, shares | 2,850,547 | |||||
Stock-based compensation expense | 6,387 | 6,387 | ||||
Foreign currency translation adjustment | (323) | (323) | ||||
Net loss | (16,893) | (16,893) | ||||
Ending Balance at Dec. 31, 2014 | 80,763 | $ 32 | 214,524 | $ (776) | $ (133,017) | |
Ending Balance, shares at Dec. 31, 2014 | 32,424,554 | |||||
Treasury stock, Ending Balance at Dec. 31, 2014 | (135,000) | |||||
Issuance of common stock upon exercise of stock options | 129 | 129 | ||||
Issuance of common stock upon exercise of stock options, shares | 58,449 | |||||
Issuance of common stock pursuant to restricted stock units | 1 | $ 1 | ||||
Issuance of common stock pursuant to restricted stock units, shares | 327,628 | |||||
Return of common stock issued pursuant to settlement agreement | (871) | $ (871) | ||||
Withholding tax on restricted stock units vesting | $ (209) | $ (209) | ||||
Withholding tax on restricted stock units vesting, shares | 0 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | $ 6,014 | $ 6,014 | ||||
Foreign currency translation adjustment | (112) | $ (112) | ||||
Net loss | (7,580) | $ (7,580) | ||||
Ending Balance at Dec. 31, 2015 | $ 78,135 | $ 33 | 220,458 | $ (871) | $ (888) | $ (140,597) |
Ending Balance, shares at Dec. 31, 2015 | 32,810,631 | |||||
Treasury stock, Ending Balance at Dec. 31, 2015 | (135,000) | (135,000) | ||||
Issuance of common stock upon exercise of stock options | $ 4,555 | $ 1 | 4,554 | |||
Issuance of common stock upon exercise of stock options, shares | 886,085 | |||||
Issuance of common stock pursuant to restricted stock units, shares | 425,904 | |||||
Withholding tax on restricted stock units vesting | $ (405) | $ (405) | ||||
Withholding tax on restricted stock units vesting, shares | 0 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | $ 6,181 | $ 6,181 | ||||
Issuance of common stock upon net exercise of stock warrants | 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 |
Issuance of common stock upon net exercise of stock warrants, shares | 20,528 | |||||
Foreign currency translation adjustment | (284) | (284) | ||||
Net loss | (9,986) | (9,986) | ||||
Ending Balance at Dec. 31, 2016 | $ 78,196 | $ 34 | $ 230,788 | $ (871) | $ (1,172) | $ (150,583) |
Ending Balance, shares at Dec. 31, 2016 | 34,143,148 | |||||
Treasury stock, Ending Balance at Dec. 31, 2016 | (135,000) | (135,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||
Net loss | $ (9,986) | $ (7,580) | $ (16,893) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 7,796 | 8,687 | 8,587 |
Stock-based compensation | 6,012 | 6,014 | 6,387 |
Deferred income taxes | (47) | (27) | |
Provision for reserves on accounts receivable | 230 | 408 | 118 |
Amortization of premium on investments | 1 | ||
Loss on disposal of equipment | 155 | 68 | 86 |
Gain from settlement of escrow claim | (871) | ||
Changes in assets and liabilities: | |||
Accounts receivable | (559) | (157) | 409 |
Prepaid expenses and other current assets | (894) | 680 | (199) |
Other assets | (299) | (256) | 1,140 |
Accounts payable | 733 | 1,751 | (2,324) |
Accrued expenses | 3,172 | 137 | (1,902) |
Deferred revenue | 4,764 | 227 | 6,075 |
Net cash provided by operating activities | 11,077 | 9,081 | 1,485 |
Investing activities | |||
Cash paid for acquisition, net of cash acquired | (9,100) | ||
Maturities of investments | 3,060 | ||
Cash paid for purchase of intangible asset | (300) | ||
Purchases of property and equipment, net of returns (Note 2) | (1,307) | (1,390) | (3,518) |
Capitalized internal-use software costs | (3,887) | (1,456) | (1,034) |
Decrease in restricted cash | 201 | 121 | |
Net cash used in investing activities | (5,293) | (2,846) | (10,471) |
Financing activities | |||
Proceeds from exercise of stock options | 4,555 | 129 | 597 |
Payments of withholding tax on RSU vesting | (405) | (209) | |
Proceeds from equipment financing | 604 | 1,704 | |
Payments on equipment financing (Note 9) | (271) | (1,704) | |
Payments under capital lease obligation | (850) | (1,332) | (1,399) |
Net cash provided by (used in) financing activities | 3,633 | (1,412) | (802) |
Effect of exchange rate changes on cash and cash equivalents | (241) | (102) | (343) |
Net increase (decrease) in cash and cash equivalents | 9,176 | 4,721 | (10,131) |
Cash and cash equivalents at beginning of period | 27,637 | 22,916 | 33,047 |
Cash and cash equivalents at end of period | 36,813 | 27,637 | 22,916 |
Supplemental disclosure of cash flow information | |||
Cash paid for income taxes | 351 | 263 | 184 |
Cash paid for interest | 63 | 96 | 96 |
Supplemental disclosure of non-cash operating activities | |||
Capitalization of stock-based compensation related to internal use software | 169 | ||
Supplemental disclosure of non-cash investing and financing activities | |||
Unpaid internal-use software costs | 20 | 38 | 6 |
Unpaid purchases of property and equipment | $ 83 | $ 1,177 | 559 |
Supplemental disclosure of cash flow related to acquisitions in connection with the asset purchase agreement with Unicorn Media, Inc. on January 31, 2014, the following transactions occurred: | |||
Fair value of assets acquired | 44,373 | ||
Liabilities assumed related to acquisition | (4,645) | ||
Total purchase price | 39,728 | ||
Less fair value of common stock issued in connection with acquisition | (30,615) | ||
Less cash and cash equivalents | (13) | ||
Cash paid for acquisition, net of cash acquired | $ 9,100 |
Business Description
Business Description | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | 1. 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 December 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, |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the consolidated financial statements. The Company believes that a significant accounting policy is one that is both important to the portrayal of the Company’s financial condition and results, and requires management’s most difficult, subjective, or complex judgments, often as the result of the need to make estimates about the effect of matters that are inherently uncertain. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). Use of Estimates and Uncertainties The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts expensed during the reporting period. Significant estimates relied upon in preparing these consolidated financial statements include revenue recognition and revenue reserves, allowances for doubtful accounts, contingent liabilities, the expensing and capitalization of research and development costs for internal-use Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. The Company is subject to a number of risks and uncertainties common to companies in similar industries and stages of development including, but not limited to, rapid technological changes, competition from substitute products and services from larger companies, customer concentration, management of international activities, protection of proprietary rights, patent litigation, and dependence on key individuals. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Subsequent Events Considerations 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. Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s foreign subsidiaries is the local currency of each subsidiary. All assets and liabilities in the balance sheets of entities whose functional currency is a currency other than the U.S. dollar are translated into U.S. dollar equivalents at exchange rates as follows: (1) asset and liability accounts at period-end 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 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 December 31, 2016 and 2015 consist of the following: December 31, 2016 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Cash Demand $ 23,942 $ 23,942 $ 23,942 Money market funds Demand 12,871 12,871 12,871 Total cash and cash equivalents $ 36,813 $ 36,813 $ 36,813 December 31, 2015 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance 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 Restricted Cash At December 31, 2015, restricted cash was $201 and was held in certificates of deposit as collateral for letters of credit related to the contractual provisions of the Company’s corporate credit cards. During 2016, the collateral for the letter of credit related to the contractual provisions of the Company’s corporate credit cards was released, which eliminated the restricted cash balance. Disclosure of Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, which include cash, cash equivalents, accounts receivable, accounts payable, accrued expenses, capital lease liabilities and equipment financing, approximated their fair values at December 31, 2016 and 2015, due to the short-term nature of these instruments. The Company has evaluated the estimated fair value of financial instruments using available market information and management’s estimates. The use of different market assumptions and/or estimation methodologies could have a significant impact on the estimated fair value amounts. See Note 5 for further discussion. Revenue Recognition The Company primarily derives revenue from the sale of its online video platform, which enables its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. Revenue is derived from three primary sources: (1) the subscription to its technology and related support; (2) hosting, bandwidth and encoding services; and (3) professional services, which include initiation, set-up The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service has been provided to the customer; (3) the collection of fees is probable; and (4) the amount of fees to be paid by the customer is fixed or determinable. The Company’s subscription arrangements provide customers the right to access its hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement. Accordingly, the Company recognizes revenue in accordance with ASC 605, Revenue Recognition non-cancellable. month-to-month Revenue recognition commences upon the later of when the application is placed in a production environment, or when all revenue recognition criteria have been met. Professional services and other revenue sold on a stand-alone basis are recognized as the services are performed, subject to any refund or other obligation. Deferred revenue includes amounts billed to customers for which revenue has not been recognized, and primarily consists of the unearned portion of annual software subscription and support fees, and deferred professional service fees. Revenue is presented net of any taxes collected from customers. Multiple-Element Arrangements The Company periodically enters into multiple-element service arrangements that include platform subscription fees, support fees, and, in certain cases, other professional services. The Company assesses arrangements with multiple deliverables under ASU No. 2009-13, Revenue Recognition (Topic 605), Multiple-Deliverable Revenue Arrangements — a Consensus of the FASB Emerging Issues Task Force, 2009-13, In order to treat deliverables in a multiple-element arrangement as separate units of accounting, the deliverables must have stand-alone value upon delivery. If the deliverables have stand-alone value upon delivery, the Company accounts for each deliverable separately. Subscription services have stand-alone value as such services are often sold separately. In determining whether professional services have stand-alone value, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription service start date, and the contractual dependence of the subscription service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that all of the professional services included in multiple-element arrangements executed have stand-alone value. When multiple deliverables included in an arrangement are separated into different units of accounting, the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The Company determines the relative selling price for a deliverable based on its vendor-specific objective evidence of fair value (VSOE), if available, or its best estimate of selling price (BESP), if VSOE is not available. The Company has determined that third-party evidence of selling price (TPE) is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. The amount of revenue allocated to delivered items is limited by contingent revenue, if any. The Company has not established VSOE for its offerings due to the lack of pricing consistency, the introduction of new services and other factors. Accordingly, the Company uses its BESP to determine the relative selling price. The Company determines BESP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the geographic area where services are sold, price lists, historical contractually stated prices and prior relationships and future subscription service sales with certain classes of customers. The determination of BESP is made through consultation with and approval by the Company’s management, taking into consideration the go-to-market go-to-market Cost of Revenue Cost of revenue primarily consists of costs related to supporting and hosting the Company’s product offerings and delivering professional services. These costs include salaries, benefits, incentive compensation and stock-based compensation expense related to the management of the Company’s data centers, customer support team and the Company’s professional services staff, in addition to third-party service provider costs such as data center and networking expenses, allocated overhead, amortization of capitalized internal-use Allowance for Doubtful Accounts The Company offsets gross trade accounts receivable with an allowance for doubtful accounts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and is based upon historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with specific accounts. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Provisions for allowances for doubtful accounts are recorded in general and administrative expense. Below is a summary of the changes in the Company’s allowance for doubtful accounts for the years ended December 31, 2016, 2015 and 2014: Balance at Provision Write-offs Balance at Year ended December 31, 2016 $ 332 $ 230 $ (408 ) $ 154 Year ended December 31, 2015 181 408 (257 ) 332 Year ended December 31, 2014 461 118 (398 ) 181 Off-Balance The Company has no significant off-balance For the years ended December 31, 2016, 2015 and 2014, no individual customer accounted for more than 10% of total revenue. As of December 31, 2016 and 2015, no individual customer accounted for more than 10% of net accounts receivable. 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 end-users. Software Development Costs Costs incurred to develop software applications used in the Company’s on-demand internal-use internal-use internal-use During the years ended December 31, 2016, 2015 and 2014, the Company capitalized $4,038, $1,488 and $474, respectively, of internal-use internal-use Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost of assets disposed of, and the related accumulated depreciation, are removed from the accounts, and any resulting gain or loss is included in the determination of net income or loss in the period of retirement. Property and equipment consists of the following: Estimated Useful Life (in Years) December 31, 2016 2015 Computer equipment 3 $ 18,750 $ 20,459 Software 3 - 6 14,648 10,766 Furniture and fixtures 5 1,995 1,942 Leasehold improvements Shorter of lease 1,202 1,059 36,595 34,226 Less accumulated depreciation and amortization 27,331 25,537 $ 9,264 $ 8,689 Depreciation and amortization expense, which includes amortization expense associated with capitalized internal-use Expenditures for maintenance and repairs are charged to expense as incurred, whereas major improvements are capitalized as additions to property and equipment. 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. Refer to Note 9 for a discussion of the equipment financing. On December 31, 2016, the Company disposed of a cost value of $1.9 million in computer equipment in connection with the closure of certain facilities for the purpose of consolidating its data centers. The Company recorded cost of revenue of $845, of which $695 represented the settlement amount due upon signing a termination agreement relating to the facilities and $150 represented a loss on disposal of assets in connection with the closure of the facilities. Long-Lived Assets The Company reviews long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During this review, the Company re-evaluates For the years ended December 31, 2016, 2015 and 2014, the Company has not identified any impairment of its long-lived assets. Business Combinations The Company records tangible and intangible assets acquired and liabilities assumed in business combinations under the purchase method of accounting. Amounts paid for each acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. The Company then allocates the purchase price in excess of net tangible assets acquired to identifiable intangible assets based on detailed valuations that use information and assumptions provided by management. Any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed is allocated to goodwill. If the fair value of the assets acquired exceeds the purchase price, the excess is recognized as a gain. Significant management judgments and assumptions are required in determining the fair value of acquired assets and liabilities, particularly acquired intangible assets. The valuation of purchased intangible assets is based upon estimates of the future performance and cash flows from the acquired business. Each asset is measured at fair value from the perspective of a market participant. If different assumptions are used, it could materially impact the purchase price allocation and adversely affect our results of operations, financial condition and cash flows. Intangible Assets and Goodwill Intangible assets that have finite lives are amortized over their estimated useful lives based on the pattern of consumption of the economic benefit or, if that pattern cannot be readily determined, on a straight-line basis and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, as discussed above. Goodwill is not amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In assessing the recoverability of goodwill, the Company must make assumptions regarding the estimated future cash flows, and other factors, to determine the fair value of these assets. If these estimates or their related assumptions change in the future, the Company may be required to record impairment charges against these assets in the reporting period in which the impairment is determined. The Company has determined, based on its organizational structure, that it had one reporting unit as of December 31, 2016 and 2015. For goodwill, the impairment evaluation includes a comparison of the carrying value of the reporting unit to the fair value of the reporting unit. If the reporting unit’s estimated fair value exceeds the reporting unit’s carrying value, no impairment of goodwill exists. If the fair value of the reporting unit does not exceed its carrying value, then further analysis would be required to determine the amount of the impairment, if any. In accordance with ASU No. 2011-08, Intangibles — Goodwill and Other (Topic 350) Testing Goodwill for Impairment two-phase Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions, other events, and circumstances from non-owner Net Loss per Share The Company calculates basic and diluted net loss per common share by dividing the net loss by the weighted-average number of common shares outstanding during the period. The Company has excluded (a) all unvested restricted shares that are subject to repurchase and (b) the Company’s other potentially dilutive shares, which include warrants to purchase common stock and outstanding common stock options and unvested restricted stock units, from the weighted-average number of common shares outstanding as their inclusion in the computation for all periods would be anti-dilutive due to net losses incurred. The following potentially dilutive common shares have been excluded from the computation of dilutive net loss per share as of December 31, 2016, 2015 and 2014, as their effect would have been antidilutive: Year Ended December 31, 2016 2015 2014 Options outstanding 4,291 4,139 3,805 Restricted stock units outstanding 1,668 1,043 990 Warrants 19 28 28 Income Taxes The Company accounts for income taxes in accordance with the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax bases of assets and liabilities using statutory rates. In addition, this method requires a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions recognized in the consolidated financial statements by prescribing a more-likely-than-not Stock-Based Compensation At December 31, 2016, the Company had four stock-based compensation plans, which are more fully described in Note 7. For stock options issued under the Company’s stock-based compensation plans, the fair value of each option grant is estimated on the date of grant, and an estimated forfeiture rate is used when calculating stock-based compensation expense for the period. For service-based options, the Company recognizes compensation expense on a straight-line basis over the requisite service period of the award. For restricted stock units issued under the Company’s stock-based compensation plans, the fair value of each grant is calculated based on the Company’s stock price on the date of grant. The fair value of each option grant issued under the Company’s stock-based compensation plans was estimated using the Black-Scholes option-pricing model. Prior to 2015, as there was no public market for its common stock prior to February 17, 2012, the effective date of the Company’s IPO, and as the trading history of the Company’s common stock was limited through December 31, 2014, the Company determined the volatility for options granted based on an analysis of reported data for a peer group of companies that issued options with substantially similar terms. The expected volatility of options granted had been determined using a weighted average of the historical volatility measures of this peer group of companies. Beginning in 2015, as there was at least three years of trading history of the Company’s common stock, the expected volatility of options granted has been determined using a weighted-average of the historical volatility measures of this peer group of companies as well as the historical volatility of the Company’s own common stock. The expected life of options has been determined utilizing the “simplified method”. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the stock options. The Company has not paid, and does not anticipate paying, cash dividends on its common stock; therefore, the expected dividend yield is assumed to be zero. In addition, based on an analysis of the historical actual forfeitures, the Company applied an estimated forfeiture rate of approximately 17% for each of the years ended December 31, 2016, 2015 and 2014 in determining the expense recorded in the accompanying consolidated statements of operations. The weighted-average fair value of options granted during the years ended December 31, 2016, 2015 and 2014, was $4.01, $3.10 and $4.21 per share, respectively. The weighted-average assumptions utilized to determine such values are presented in the following table: Year Ended December 31, 2016 2015 2014 Risk-free interest rate 1.75 % 1.96 % 2.16 % Expected volatility 45 % 46 % 52 % Expected life (in years) 6.2 6.2 6.2 Expected dividend yield — — — As of December 31, 2016, there was $13,327 of total unrecognized stock-based compensation expense related to stock based awards that is expected to be recognized over a weighted-average period of 2.48 years. The total unrecognized stock-based compensation expense will be adjusted for future changes in estimated forfeitures. The Company accounts for transactions in which services are received from non-employees non-employee Equity-Based Payments to Non-Employees, non-employees For the years ended December 31, 2016, 2015 and 2014, stock-based compensation expense for stock options granted to non-employees For the years ended December 31, 2016, 2015 and 2014, total stock-based compensation expense was $6,012, $6,014 and $6,387, respectively. See Note 7 for a summary of the stock option and restricted stock activity under the Company’s stock-based compensation plans for the year ended December 31, 2016. Advertising Costs Advertising costs are charged to operations as incurred. The Company incurred advertising costs of $2,137, $2,081 and $3,515 for the years ended December 31, 2016, 2015 and 2014, respectively. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09”), Revenue from Contracts with Customers , 2014-09 2014-09 catch-up In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date 2014-09 2014-09 2014-09 The Company intends to adopt ASU 2014-09 In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09 2016-09 In February 2016 the FASB issued ASU 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification 2016-02 2016-02, right-of-use 2016-02 2016-02 2016-02 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | 3. Business Combinations Unicorn Media, Inc. On January 31, 2014, the Company acquired substantially all of the assets of Unicorn Media, Inc. and certain of its subsidiaries, or Unicorn, a provider of cloud video ad insertion technology, for total consideration of approximately $39.7 million, which was funded by cash on hand of $9.1 million and the issuance of 2,850,547 shares of common stock (the Acquisition). This transaction was accounted for under the purchase method of accounting in accordance with ASC 805 — Business Combinations Pursuant to the asset purchase agreement, 1,285,715 shares were placed into an escrow account to settle certain claims for indemnification for breaches or inaccuracies in Unicorn’s representations and warranties, covenants and agreements. Prior to the expiration of the indemnity period, the Company posted claims against the escrow account related to liabilities discovered after the date of the acquisition and related matters. In December 2015, the Company entered into a settlement agreement with the Securityholders’ Representative, on behalf of the former stockholders of Unicorn Media, Inc., and received 135,000 shares in exchange for settling the escrow matters and releasing the counterparty from all future liabilities relating to the claims. The Company accounted for the settlement of shares as treasury stock and recorded a corresponding gain of $871 to other expense, net in the consolidated statement of operations. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 4. Intangible Assets and Goodwill On March 10, 2016, the Company purchased an intangible asset for $300 plus a contingent amount of up to an additional $250 to be determined on the 90 th Finite-lived intangible assets consist of the following as of December 31, 2016. Description Weighted Gross Accumulated Net Developed technology 7 $ 14,223 $ 7,400 $ 6,823 Customer relationships 11 6,257 2,147 4,110 Non-compete 3 1,912 1,875 37 Tradename 3 368 368 — Total $ 22,760 $ 11,790 $ 10,970 Finite-lived intangible assets consist of the following as of December 31, 2015: Description Weighted Gross Accumulated Net Developed technology 7 $ 14,223 $ 5,369 $ 8,854 Customer relationships 12 5,957 1,500 4,457 Non-compete 3 1,912 1,437 475 Tradename 3 368 368 — Total $ 22,460 $ 8,674 $ 13,786 Amortization expense related to intangible assets for the years ended December 31, 2016, 2015 and 2014 was $3,116, $3,112 and $3,200, respectively. The estimated remaining amortization expense for each of the five succeeding years and thereafter is as follows: Year Ending December 31, Amount 2017 $ 2,733 2018 2,317 2019 1,604 2020 1,585 2021 1,327 2022 and thereafter 1,404 Total $ 10,970 The carrying amount of goodwill was $50,776 as of December 31, 2016 and 2015. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures ASC 820 identifies fair value as an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: • Level 1: • Level 2: • Level 3: The valuation techniques that may be used to measure fair value are as follows: A. Market approach B. Income approach C. Cost approach The following tables set forth the Company’s financial instruments carried at fair value using the lowest level of input as of December 31, 2016 and 2015: December 31, 2016 Quoted Active Markets for Identical Items (Level 1) Significant Other Observable (Level 2) Significant Unobservable Inputs Total Assets: Money market funds $ 12,871 $ — $ — $ 12,871 Total assets $ 12,871 $ — $ — $ 12,871 December 31, 2015 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable (Level 3) Total Assets: Money market funds $ 9,580 $ — $ — $ 9,580 Restricted cash — 201 — 201 Total assets $ 9,580 $ 201 $ — $ 9,781 Realized gains and losses from sales of the Company’s investments are included in “Other expense, net”. The Company measures eligible assets and liabilities at fair value, with changes in value recognized in earnings. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets or liabilities, and did not elect the fair value option for any financial assets and liabilities transacted in the years ended December 31, 2016 or 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Operating Lease Commitments The Company leases its facilities under non-cancelable Year Ending December 31, Operating 2017 $ 6,006 2018 5,337 2019 4,983 2020 4,179 2021 3,968 2022 and thereafter 1,029 $ 25,502 Certain amounts included in the table above relating to co-location The Company’s primary office lease has the option to renew the lease for two successive periods of five years each. In connection with the office lease, the Company entered into a letter of credit in the amount of $2,404. Certain of the Company’s operating leases include escalating payment amounts and lease incentives. The Company is recognizing the related rent expense on a straight-line basis over the term of the lease. The lease incentives are considered an inseparable part of the lease agreement, and are recognized as a reduction of rent expense on a straight-line basis over the term of the lease. As of December 31, 2016 and 2015, the Company had deferred rent and rent incentives of $1,579 and $1,653, respectively, of which $1,320 and $1,565, respectively, is classified as a long-term liability in the accompanying consolidated balance sheets. Rent expense for the years ended December 31, 2016, 2015 and 2014 was $6,334, $6,831 and $6,280, respectively. Income from sublease rental activity amounted to $219, $185 and $0, respectively, for the years ended December 31, 2016, 2015 and 2014. In addition to the operating obligations noted in the table above, as of December 31, 2016, the Company recorded cost of revenue of $845 of which $695 represented the settlement amount due upon signing a termination agreement relating to the facilities and $150 represented a loss on disposal of assets in connection with the closure of the facilities for the purpose of consolidating data centers. Capital Lease Commitments The Company leases certain computer equipment and support under non-cancelable Year Ending December 31, Capital Lease 2017 $ 508 2018 231 Less – interest on capital leases 21 $ 718 At December 31, 2016, total assets under capital leases were $1.2 million and related accumulated amortization was $557,000. In addition to the operating lease and capital lease commitments discussed above, as of December 31, 2016, the Company had non-cancelable 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 July 8, 2016, a complaint was filed by Brand Technologies, Inc. naming the Company, along with several others, as a defendant in a case alleging copyright infringement, violations of the Lanham Act, unfair competition and related claims (Brand Technologies, Inc. v. Cox Enterprises, Inc., et al., United States District Court for the Central District of California). The complaint alleges that Cox Media Group (CMG) engaged in the unlicensed provision of copyrighted videos, acquired from AOL and owned by the plaintiff, on CMG websites by using a Brightcove technology. The complaint seeks actual and statutory damages, costs and injunctive relief. Brightcove is being indemnified in this matter. 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. On July 30, 2016, a complaint was filed by Autumn Cloud LLC naming the Company as a defendant in a patent infringement case (Autumn Cloud LLC v. Brightcove Inc., United States District Court for the Eastern District of Texas). The complaint alleged that Brightcove infringed U.S. Patent 7,606,843 with an issue date of October 20, 2009, entitled “System and Method for Customizing the Storage and Management of Device Data in a Networked Environment,” and U.S. Patent 8,239,347 with an issue date of August 7, 2012, entitled “System and Method for Customizing the Storage and Management of Device Data in a Networked Environment.” The complaint sought monetary damages and declarations of infringement. Brightcove acquired a license to the patents-in-suit 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 December 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. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 7. Stockholders’ Equity Common Stock Common stockholders are entitled to one vote per share. Holders of common stock are entitled to receive dividends, when and if declared by the Board. Treasury Stock The Company has recorded 135,000 shares as treasury stock as of December 31, 2016 and 2015 with a cost of $871. See Note 3 for additional information. Equity Incentive Plans At December 31, 2016, the Company had four stock-based compensation plans, the Amended and Restated 2004 Stock Option and Incentive Plan (the 2004 Plan), the 2012 Stock Incentive Plan (the 2012 Plan), the Brightcove Inc. 2012 RSU Inducement Plan (the RSU Plan), and the Brightcove Inc. 2014 Stock Option Inducement Plan (the 2014 Stock Inducement Plan). The 2004 Plan provided for the issuance of incentive and non-qualified Sub-Plan In 2012, the Board and stockholders adopted the 2012 Plan, which became effective on February 16, 2012. The 2012 Plan provides for the issuance of incentive and non-qualified non-employee In 2012, the Company adopted the RSU Plan and made awards of restricted stock units pursuant to the RSU Plan to 15 new employees in connection with the acquisition of Zencoder. The awards of restricted stock units cover an aggregate of 77,100 shares of the Company’s common stock and were made as a material inducement to the employees entering into employment with the Company in connection with the acquisition of Zencoder. The restricted stock units were settled in shares of the Company’s common stock upon vesting. In 2014, the Company adopted the 2014 Stock Inducement Plan and made awards of options pursuant to the 2014 Stock Inducement Plan to 61 new employees in connection with the asset purchase agreement. The awards of options cover an aggregate of 578,350 shares of the Company’s common stock in the form of options to purchase shares of the Company’s common stock as an inducement to the employees entering into employment with the Company in connection with the asset purchase agreement. At December 31, 2016, 945,238 shares were available for issuance under all stock-based compensation plans. The following is a summary of the stock option activity for all stock option plans during the year ended December 31, 2016: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (2) Outstanding at December 31, 2015 4,622,886 $ 6.63 Granted 816,902 8.83 Exercised (886,085 ) 5.14 $ 5,159 Cancelled (403,119 ) 8.84 Outstanding at December 31, 2016 4,150,584 $ 7.17 7.14 $ 7,107 Exercisable at December 31, 2016 1,923,596 $ 6.49 5.37 $ 4,867 Vested or expected to vest at December 31, 2016 (1) 3,612,724 $ 7.08 6.87 $ 6,577 (1) This represents the number of vested options as of December 31, 2016 plus the number of unvested options expected to vest as of December 31, 2016, based on the unvested options outstanding at December 31, 2016 and adjusted for the estimated forfeiture rate. (2) The aggregate intrinsic value was calculated based on the positive difference between the estimated fair value of the Company’s common stock on December 31, 2016 of $8.05 per share, or the date of exercise, as appropriate, and the exercise price of the underlying options. The aggregate intrinsic value for options exercised during the years ended December 31, 2015 and 2014 was $281 and $1,499, respectively. The Company has entered into restricted stock unit (RSU) agreements with certain of its employees pursuant to the 2012 Plan and the RSU Plan. Vesting occurs periodically at specified time intervals, ranging from three months to four years, and in specified percentages. Upon vesting, the holder will receive one share of the Company’s common stock for each unit vested. The following table summarizes the RSU activity during the year ended December 31, 2016: Shares Weighted Average Grant Date Fair Value Unvested by December 31, 2015 1,503,814 $ 6.69 Granted 1,061,958 9.77 Vested and issued (425,898 ) 7.35 Cancelled (237,297 ) 7.59 Unvested by December 31, 2016 1,902,577 $ 7.84 Warrants In September 2006, the Company issued fully vested warrants to purchase an aggregate of 46,713 shares of Series B Preferred Stock, at a purchase price of $3.21 per share, to two lenders in connection with a line of credit agreement. The warrants were exercisable at any time up until the expiration date of August 31, 2016. The fair value of the warrants was recorded as a discount on the related debt, and was amortized to interest expense over the life of the debt. The debt was fully repaid in March 2007. The warrant liability was reported at fair value until completion of the Company’s IPO in February 2012, whereupon the warrants automatically converted into warrants to purchase shares of the Company’s common stock. At the time of conversion of the warrants in connection with the Company’s IPO, the fair value of the warrants was $395, which was reclassified as a component of additional paid-in During 2012, 18,685 shares exercisable under the warrants were exercised pursuant to a net exercise provision, which resulted in the issuance of 15,781 common shares. In August 2016, the remaining 28,028 shares exercisable under the warrants were exercised pursuant to a net exercise provision, which resulted in the issuance of 20,528 common shares. Common Stock Reserved for Future Issuance At December 31, 2016, the Company has reserved the following shares of common stock for future issuance: December 31, Common stock options outstanding 4,150,584 Restricted stock unit awards outstanding 1,902,577 Shares available for issuance under all stock-based compensation plans 945,238 Total shares of authorized common stock reserved for future issuance 6,998,399 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Loss before the provision for income taxes consists of the following: Year Ended December 31, 2016 2015 2014 Domestic $ (10,756 ) $ (8,028 ) $ (17,492 ) Foreign 1,180 839 859 Total $ (9,576 ) $ (7,189 ) $ (16,633 ) The provision for income taxes in the accompanying consolidated financial statements consists of the following: Year Ended December 31, 2016 2015 2014 Current provision: Federal $ — $ — $ — State 33 29 41 Foreign 424 389 219 Total current 457 418 260 Deferred (benefit): Federal — — — State — — — Foreign (47 ) (27 ) — Total deferred (47 ) (27 ) — Total provision $ 410 $ 391 $ 260 A reconciliation of the U.S. federal statutory rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2016 2015 2014 Tax at statutory rates (34.0 )% (34.0 )% (34.0 )% State income taxes (6.1 ) 3.4 (2.0 ) Change in tax rate 0.1 3.0 (1.6 ) Permanent differences 11.7 34.7 16.2 Foreign rate differential (1.1 ) (1.2 ) (0.4 ) Research and development credits (6.7 ) (9.6 ) (7.9 ) Change in valuation allowance 40.8 7.7 31.2 Other, net (0.3 ) 1.4 0.1 Effective tax rate 4.3 % 5.4 % 1.6 % The approximate income tax effect of each type of temporary difference and carryforward as of December 31, 2016 and 2015 is as follows: As of December 31, 2016 2015 Net operating loss carry-forwards $ 45,850 $ 42,666 Tax credit carry-forwards 7,654 6,646 Stock-based compensation 2,236 2,283 Intangible assets (5,962 ) (5,799 ) Fixed assets 154 49 Account receivable reserves 219 1,071 Accrued compensation 2,232 1,422 Capitalized start-up 279 346 Other temporary differences 761 777 Deferred tax assets 53,423 49,461 Valuation allowance (53,302 ) (49,398 ) Net deferred tax assets $ 121 $ 63 The Company is required to compute income tax expense in each jurisdiction in which it operates. This process requires the Company to project its current tax liability and estimate its deferred tax assets and liabilities, including net operating loss (NOL) and tax credit carry-forwards. In assessing the ability to realize the net deferred tax assets, management considers whether it is more likely than not that some portion or all of the net deferred tax assets will not be realized. The Company has provided a valuation allowance against its remaining U.S. net deferred tax assets as of December 31, 2016 and 2015, as based upon the level of historical U.S. losses and future projections over the period in which the net deferred tax assets are deductible, at this time, management believes it is more likely than not that the Company will not realize the benefits of these deductible differences. The increase in the valuation allowance from 2015 to 2016 of $3.9 million principally relates to the current year taxable loss. Based upon the level of historical income in Japan and future projections, the Company believes it is probable it will realize the benefits of its future deductible differences. As such, the Company has not recorded a valuation allowance against its net deferred tax assets in Japan as of December 31, 2016 and 2015. As of December 31, 2016, the Company had federal and state net operating losses of approximately $155.5 million and $57.4 million, respectively, which are available to offset future taxable income, if any, through 2035. Included in the federal and state net operating losses are deductions attributable to excess tax benefits from the exercise of non-qualified more-likely-than-not On January 1, 2009, the Company adopted the provision for uncertain tax positions under ASC 740, Income Taxes At December 31, 2016 and 2015, the Company had no accrued interest or penalties related to uncertain tax positions. The Company files income tax returns in the U.S. federal tax jurisdiction, various state and various foreign jurisdictions. The Company is currently open to examination under the statute of limitations by the Internal Revenue Service and state jurisdictions for the tax years ended 2012 through 2016. Since the Company is in a U.S. loss carryforward position, carryforward tax attributes generated in prior years may still be adjusted upon future examination if they have or will be used in a future period. Additionally, certain non-U.S. The Company’s current intention is to reinvest the total amount of its unremitted earnings in the local international tax jurisdiction or to repatriate the earnings only when tax effective. As such, the Company has not provided for U.S. taxes on the unremitted earnings of its international subsidiaries. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company may be subject to U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. Determination of the amount of the unrecognized deferred U.S. income tax liability is not practical due to the complexity associated with this hypothetical calculation. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 9. 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 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 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 $333 as of December 31, 2016. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 10. Accrued Expenses Accrued expenses consist of the following: December 31, 2016 2015 Accrued payroll and related benefits $ 7,089 $ 5,393 Accrued sales and other taxes 2,275 1,728 Accrued professional fees and outside contractors 1,082 1,023 Accrued content delivery 2,013 2,112 Accrued other liabilities 3,246 2,593 Total $ 15,705 $ 12,849 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 11. Segment Information Disclosure requirements about segments of an enterprise and related information establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in interim financial reports issued to stockholders. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company’s chief decision maker is its chief executive officer. The Company and the chief decision maker view the Company’s operations and manage its business as one operating segment. Geographic Data Total revenue to unaffiliated customers by geographic area, based on the location of the customer, was as follows: Year Ended December 31, 2016 2015 2014 Revenue: North America $ 92,912 $ 86,106 $ 75,419 Europe 25,196 25,380 30,624 Japan 15,230 9,061 7,902 Asia Pacific 15,617 12,380 10,109 Other 1,311 1,779 963 Total revenue $ 150,266 $ 134,706 $ 125,017 North America is comprised of revenue from the United States, Canada and Mexico. Revenue from customers located in the United States was $87,302, $80,455 and $69,778 during the years ended December 31, 2016, 2015 and 2014, respectively. Revenue from customers located in Japan was $15,230, $9,061 and $7,902 during the years ended December 31, 2016, 2015 and 2014, respectively. During the years ended December 31, 2016 and 2015, no other country contributed more than 10% of the Company’s total revenue. As of December 31, 2016 and December 31, 2015, property and equipment at locations outside the U.S. was not material. |
401(k) Savings Plan
401(k) Savings Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
401(k) Savings Plan | 12. 401(k) Savings Plan The Company maintains a defined contribution savings plan covering all eligible U.S. employees under Section 401(k) of the Internal Revenue Code. Company contributions to the plan may be made at the discretion of the Board. During the years ended December 31, 2016, 2015 and 2014, the Company has made contributions to the plan of $336, $276 and $199, respectively. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 13. Quarterly Financial Data (unaudited) For the three months ended: Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Revenue $ 38,625 $ 38,389 $ 36,960 $ 36,292 $ 35,136 $ 33,837 $ 32,848 $ 32,885 Gross profit 23,272 24,612 23,507 23,028 23,321 22,325 21,290 21,293 Loss from operations (3,684 ) (1,552 ) (2,211 ) (1,531 ) (214 ) (1,025 ) (3,151 ) (2,541 ) Net income (loss) (4,363 ) (1,618 ) (2,398 ) (1,607 ) 172 (1,275 ) (3,646 ) (2,831 ) Basic net income (loss) per share (0.13 ) (0.05 ) (0.07 ) (0.05 ) 0.01 (0.04 ) (0.11 ) (0.09 ) Diluted net income (loss) per share (0.13 ) (0.05 ) (0.07 ) (0.05 ) 0.01 (0.04 ) (0.11 ) (0.09 ) |
Business Description (Policies)
Business Description (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [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 December 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, |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB). |
Use of Estimates and Uncertainties | Use of Estimates and Uncertainties The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts expensed during the reporting period. Significant estimates relied upon in preparing these consolidated financial statements include revenue recognition and revenue reserves, allowances for doubtful accounts, contingent liabilities, the expensing and capitalization of research and development costs for internal-use Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. The Company is subject to a number of risks and uncertainties common to companies in similar industries and stages of development including, but not limited to, rapid technological changes, competition from substitute products and services from larger companies, customer concentration, management of international activities, protection of proprietary rights, patent litigation, and dependence on key individuals. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Subsequent Events Considerations | Subsequent Events Considerations 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. |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s foreign subsidiaries is the local currency of each subsidiary. All assets and liabilities in the balance sheets of entities whose functional currency is a currency other than the U.S. dollar are translated into U.S. dollar equivalents at exchange rates as follows: (1) asset and liability accounts at period-end |
Cash and Cash Equivalents | 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 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 December 31, 2016 and 2015 consist of the following: December 31, 2016 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Cash Demand $ 23,942 $ 23,942 $ 23,942 Money market funds Demand 12,871 12,871 12,871 Total cash and cash equivalents $ 36,813 $ 36,813 $ 36,813 December 31, 2015 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance 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 |
Restricted Cash | Restricted Cash At December 31, 2015, restricted cash was $201 and was held in certificates of deposit as collateral for letters of credit related to the contractual provisions of the Company’s corporate credit cards. During 2016, the collateral for the letter of credit related to the contractual provisions of the Company’s corporate credit cards was released, which eliminated the restricted cash balance. |
Disclosure of Fair Value of Financial Instruments | Disclosure of Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, which include cash, cash equivalents, accounts receivable, accounts payable, accrued expenses, capital lease liabilities and equipment financing, approximated their fair values at December 31, 2016 and 2015, due to the short-term nature of these instruments. The Company has evaluated the estimated fair value of financial instruments using available market information and management’s estimates. The use of different market assumptions and/or estimation methodologies could have a significant impact on the estimated fair value amounts. See Note 5 for further discussion. |
Revenue Recognition | Revenue Recognition The Company primarily derives revenue from the sale of its online video platform, which enables its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. Revenue is derived from three primary sources: (1) the subscription to its technology and related support; (2) hosting, bandwidth and encoding services; and (3) professional services, which include initiation, set-up The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service has been provided to the customer; (3) the collection of fees is probable; and (4) the amount of fees to be paid by the customer is fixed or determinable. The Company’s subscription arrangements provide customers the right to access its hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement. Accordingly, the Company recognizes revenue in accordance with ASC 605, Revenue Recognition non-cancellable. month-to-month Revenue recognition commences upon the later of when the application is placed in a production environment, or when all revenue recognition criteria have been met. Professional services and other revenue sold on a stand-alone basis are recognized as the services are performed, subject to any refund or other obligation. Deferred revenue includes amounts billed to customers for which revenue has not been recognized, and primarily consists of the unearned portion of annual software subscription and support fees, and deferred professional service fees. Revenue is presented net of any taxes collected from customers. Multiple-Element Arrangements The Company periodically enters into multiple-element service arrangements that include platform subscription fees, support fees, and, in certain cases, other professional services. The Company assesses arrangements with multiple deliverables under ASU No. 2009-13, Revenue Recognition (Topic 605), Multiple-Deliverable Revenue Arrangements — a Consensus of the FASB Emerging Issues Task Force, 2009-13, In order to treat deliverables in a multiple-element arrangement as separate units of accounting, the deliverables must have stand-alone value upon delivery. If the deliverables have stand-alone value upon delivery, the Company accounts for each deliverable separately. Subscription services have stand-alone value as such services are often sold separately. In determining whether professional services have stand-alone value, the Company considers the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription service start date, and the contractual dependence of the subscription service on the customer’s satisfaction with the professional services work. To date, the Company has concluded that all of the professional services included in multiple-element arrangements executed have stand-alone value. When multiple deliverables included in an arrangement are separated into different units of accounting, the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The Company determines the relative selling price for a deliverable based on its vendor-specific objective evidence of fair value (VSOE), if available, or its best estimate of selling price (BESP), if VSOE is not available. The Company has determined that third-party evidence of selling price (TPE) is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. The amount of revenue allocated to delivered items is limited by contingent revenue, if any. The Company has not established VSOE for its offerings due to the lack of pricing consistency, the introduction of new services and other factors. Accordingly, the Company uses its BESP to determine the relative selling price. The Company determines BESP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company’s discounting practices, the size and volume of the Company’s transactions, the geographic area where services are sold, price lists, historical contractually stated prices and prior relationships and future subscription service sales with certain classes of customers. The determination of BESP is made through consultation with and approval by the Company’s management, taking into consideration the go-to-market go-to-market |
Cost of Revenue | Cost of Revenue Cost of revenue primarily consists of costs related to supporting and hosting the Company’s product offerings and delivering professional services. These costs include salaries, benefits, incentive compensation and stock-based compensation expense related to the management of the Company’s data centers, customer support team and the Company’s professional services staff, in addition to third-party service provider costs such as data center and networking expenses, allocated overhead, amortization of capitalized internal-use |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company offsets gross trade accounts receivable with an allowance for doubtful accounts. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and is based upon historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with specific accounts. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Provisions for allowances for doubtful accounts are recorded in general and administrative expense. Below is a summary of the changes in the Company’s allowance for doubtful accounts for the years ended December 31, 2016, 2015 and 2014: Balance at Provision Write-offs Balance at Year ended December 31, 2016 $ 332 $ 230 $ (408 ) $ 154 Year ended December 31, 2015 181 408 (257 ) 332 Year ended December 31, 2014 461 118 (398 ) 181 |
Off-Balance Sheet Risk and Concentration of Credit Risk | Off-Balance The Company has no significant off-balance For the years ended December 31, 2016, 2015 and 2014, no individual customer accounted for more than 10% of total revenue. As of December 31, 2016 and 2015, no individual customer accounted for more than 10% of net accounts receivable. |
Concentration of Other Risks | 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 end-users. |
Software Development Costs | Software Development Costs Costs incurred to develop software applications used in the Company’s on-demand internal-use internal-use internal-use During the years ended December 31, 2016, 2015 and 2014, the Company capitalized $4,038, $1,488 and $474, respectively, of internal-use internal-use |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost of assets disposed of, and the related accumulated depreciation, are removed from the accounts, and any resulting gain or loss is included in the determination of net income or loss in the period of retirement. Property and equipment consists of the following: Estimated Useful Life (in Years) December 31, 2016 2015 Computer equipment 3 $ 18,750 $ 20,459 Software 3 - 6 14,648 10,766 Furniture and fixtures 5 1,995 1,942 Leasehold improvements Shorter of lease 1,202 1,059 36,595 34,226 Less accumulated depreciation and amortization 27,331 25,537 $ 9,264 $ 8,689 Depreciation and amortization expense, which includes amortization expense associated with capitalized internal-use Expenditures for maintenance and repairs are charged to expense as incurred, whereas major improvements are capitalized as additions to property and equipment. 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. Refer to Note 9 for a discussion of the equipment financing. On December 31, 2016, the Company disposed of a cost value of $1.9 million in computer equipment in connection with the closure of certain facilities for the purpose of consolidating its data centers. The Company recorded cost of revenue of $845, of which $695 represented the settlement amount due upon signing a termination agreement relating to the facilities and $150 represented a loss on disposal of assets in connection with the closure of the facilities. |
Long-Lived Assets | Long-Lived Assets The Company reviews long-lived assets and certain identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. During this review, the Company re-evaluates For the years ended December 31, 2016, 2015 and 2014, the Company has not identified any impairment of its long-lived assets. |
Business Combinations | Business Combinations The Company records tangible and intangible assets acquired and liabilities assumed in business combinations under the purchase method of accounting. Amounts paid for each acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. The Company then allocates the purchase price in excess of net tangible assets acquired to identifiable intangible assets based on detailed valuations that use information and assumptions provided by management. Any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed is allocated to goodwill. If the fair value of the assets acquired exceeds the purchase price, the excess is recognized as a gain. Significant management judgments and assumptions are required in determining the fair value of acquired assets and liabilities, particularly acquired intangible assets. The valuation of purchased intangible assets is based upon estimates of the future performance and cash flows from the acquired business. Each asset is measured at fair value from the perspective of a market participant. If different assumptions are used, it could materially impact the purchase price allocation and adversely affect our results of operations, financial condition and cash flows. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets that have finite lives are amortized over their estimated useful lives based on the pattern of consumption of the economic benefit or, if that pattern cannot be readily determined, on a straight-line basis and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, as discussed above. Goodwill is not amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In assessing the recoverability of goodwill, the Company must make assumptions regarding the estimated future cash flows, and other factors, to determine the fair value of these assets. If these estimates or their related assumptions change in the future, the Company may be required to record impairment charges against these assets in the reporting period in which the impairment is determined. The Company has determined, based on its organizational structure, that it had one reporting unit as of December 31, 2016 and 2015. For goodwill, the impairment evaluation includes a comparison of the carrying value of the reporting unit to the fair value of the reporting unit. If the reporting unit’s estimated fair value exceeds the reporting unit’s carrying value, no impairment of goodwill exists. If the fair value of the reporting unit does not exceed its carrying value, then further analysis would be required to determine the amount of the impairment, if any. In accordance with ASU No. 2011-08, Intangibles — Goodwill and Other (Topic 350) Testing Goodwill for Impairment two-phase |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions, other events, and circumstances from non-owner |
Net Loss per Share | Net Loss per Share The Company calculates basic and diluted net loss per common share by dividing the net loss by the weighted-average number of common shares outstanding during the period. The Company has excluded (a) all unvested restricted shares that are subject to repurchase and (b) the Company’s other potentially dilutive shares, which include warrants to purchase common stock and outstanding common stock options and unvested restricted stock units, from the weighted-average number of common shares outstanding as their inclusion in the computation for all periods would be anti-dilutive due to net losses incurred. The following potentially dilutive common shares have been excluded from the computation of dilutive net loss per share as of December 31, 2016, 2015 and 2014, as their effect would have been antidilutive: Year Ended December 31, 2016 2015 2014 Options outstanding 4,291 4,139 3,805 Restricted stock units outstanding 1,668 1,043 990 Warrants 19 28 28 |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax bases of assets and liabilities using statutory rates. In addition, this method requires a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions recognized in the consolidated financial statements by prescribing a more-likely-than-not |
Stock-Based Compensation | Stock-Based Compensation At December 31, 2016, the Company had four stock-based compensation plans, which are more fully described in Note 7. For stock options issued under the Company’s stock-based compensation plans, the fair value of each option grant is estimated on the date of grant, and an estimated forfeiture rate is used when calculating stock-based compensation expense for the period. For service-based options, the Company recognizes compensation expense on a straight-line basis over the requisite service period of the award. For restricted stock units issued under the Company’s stock-based compensation plans, the fair value of each grant is calculated based on the Company’s stock price on the date of grant. The fair value of each option grant issued under the Company’s stock-based compensation plans was estimated using the Black-Scholes option-pricing model. Prior to 2015, as there was no public market for its common stock prior to February 17, 2012, the effective date of the Company’s IPO, and as the trading history of the Company’s common stock was limited through December 31, 2014, the Company determined the volatility for options granted based on an analysis of reported data for a peer group of companies that issued options with substantially similar terms. The expected volatility of options granted had been determined using a weighted average of the historical volatility measures of this peer group of companies. Beginning in 2015, as there was at least three years of trading history of the Company’s common stock, the expected volatility of options granted has been determined using a weighted-average of the historical volatility measures of this peer group of companies as well as the historical volatility of the Company’s own common stock. The expected life of options has been determined utilizing the “simplified method”. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the stock options. The Company has not paid, and does not anticipate paying, cash dividends on its common stock; therefore, the expected dividend yield is assumed to be zero. In addition, based on an analysis of the historical actual forfeitures, the Company applied an estimated forfeiture rate of approximately 17% for each of the years ended December 31, 2016, 2015 and 2014 in determining the expense recorded in the accompanying consolidated statements of operations. The weighted-average fair value of options granted during the years ended December 31, 2016, 2015 and 2014, was $4.01, $3.10 and $4.21 per share, respectively. The weighted-average assumptions utilized to determine such values are presented in the following table: Year Ended December 31, 2016 2015 2014 Risk-free interest rate 1.75 % 1.96 % 2.16 % Expected volatility 45 % 46 % 52 % Expected life (in years) 6.2 6.2 6.2 Expected dividend yield — — — As of December 31, 2016, there was $13,327 of total unrecognized stock-based compensation expense related to stock based awards that is expected to be recognized over a weighted-average period of 2.48 years. The total unrecognized stock-based compensation expense will be adjusted for future changes in estimated forfeitures. The Company accounts for transactions in which services are received from non-employees non-employee Equity-Based Payments to Non-Employees, non-employees For the years ended December 31, 2016, 2015 and 2014, stock-based compensation expense for stock options granted to non-employees For the years ended December 31, 2016, 2015 and 2014, total stock-based compensation expense was $6,012, $6,014 and $6,387, respectively. See Note 7 for a summary of the stock option and restricted stock activity under the Company’s stock-based compensation plans for the year ended December 31, 2016. |
Advertising Costs | Advertising Costs Advertising costs are charged to operations as incurred. The Company incurred advertising costs of $2,137, $2,081 and $3,515 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09”), Revenue from Contracts with Customers , 2014-09 2014-09 catch-up In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date 2014-09 2014-09 2014-09 The Company intends to adopt ASU 2014-09 In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09 2016-09 In February 2016 the FASB issued ASU 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification 2016-02 2016-02, right-of-use 2016-02 2016-02 2016-02 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents as of December 31, 2016 and 2015 consist of the following: December 31, 2016 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Cash Demand $ 23,942 $ 23,942 $ 23,942 Money market funds Demand 12,871 12,871 12,871 Total cash and cash equivalents $ 36,813 $ 36,813 $ 36,813 December 31, 2015 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance 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 |
Summary of Changes in Company's Allowance for Doubtful Accounts | Below is a summary of the changes in the Company’s allowance for doubtful accounts for the years ended December 31, 2016, 2015 and 2014: Balance at Provision Write-offs Balance at Year ended December 31, 2016 $ 332 $ 230 $ (408 ) $ 154 Year ended December 31, 2015 181 408 (257 ) 332 Year ended December 31, 2014 461 118 (398 ) 181 |
Property and Equipment | Property and equipment consists of the following: Estimated Useful Life (in Years) December 31, 2016 2015 Computer equipment 3 $ 18,750 $ 20,459 Software 3 - 6 14,648 10,766 Furniture and fixtures 5 1,995 1,942 Leasehold improvements Shorter of lease 1,202 1,059 36,595 34,226 Less accumulated depreciation and amortization 27,331 25,537 $ 9,264 $ 8,689 |
Potentially Dilutive Common Shares Excluded from Computation of Dilutive Net Loss per Share | The following potentially dilutive common shares have been excluded from the computation of dilutive net loss per share as of December 31, 2016, 2015 and 2014, as their effect would have been antidilutive: Year Ended December 31, 2016 2015 2014 Options outstanding 4,291 4,139 3,805 Restricted stock units outstanding 1,668 1,043 990 Warrants 19 28 28 |
Weighted Average Assumptions Utilized | The weighted-average fair value of options granted during the years ended December 31, 2016, 2015 and 2014, was $4.01, $3.10 and $4.21 per share, respectively. The weighted-average assumptions utilized to determine such values are presented in the following table: Year Ended December 31, 2016 2015 2014 Risk-free interest rate 1.75 % 1.96 % 2.16 % Expected volatility 45 % 46 % 52 % Expected life (in years) 6.2 6.2 6.2 Expected dividend yield — — — |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite Lived Intangible Assets | Finite-lived intangible assets consist of the following as of December 31, 2016. Description Weighted Gross Accumulated Net Developed technology 7 $ 14,223 $ 7,400 $ 6,823 Customer relationships 11 6,257 2,147 4,110 Non-compete 3 1,912 1,875 37 Tradename 3 368 368 — Total $ 22,760 $ 11,790 $ 10,970 Finite-lived intangible assets consist of the following as of December 31, 2015: Description Weighted Gross Accumulated Net Developed technology 7 $ 14,223 $ 5,369 $ 8,854 Customer relationships 12 5,957 1,500 4,457 Non-compete 3 1,912 1,437 475 Tradename 3 368 368 — Total $ 22,460 $ 8,674 $ 13,786 |
Estimated Remaining Amortization Expense | The estimated remaining amortization expense for each of the five succeeding years and thereafter is as follows: Year Ending December 31, Amount 2017 $ 2,733 2018 2,317 2019 1,604 2020 1,585 2021 1,327 2022 and thereafter 1,404 Total $ 10,970 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 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 December 31, 2016 and 2015: December 31, 2016 Quoted Active Markets for Identical Items (Level 1) Significant Other Observable (Level 2) Significant Unobservable Inputs Total Assets: Money market funds $ 12,871 $ — $ — $ 12,871 Total assets $ 12,871 $ — $ — $ 12,871 December 31, 2015 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable (Level 3) Total Assets: Money market funds $ 9,580 $ — $ — $ 9,580 Restricted cash — 201 — 201 Total assets $ 9,580 $ 201 $ — $ 9,781 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Commitments Under Operating Leases | Future minimum rental commitments under operating leases at December 31, 2016 are as follows: Year Ending December 31, Operating 2017 $ 6,006 2018 5,337 2019 4,983 2020 4,179 2021 3,968 2022 and thereafter 1,029 $ 25,502 |
Future Minimum Rental Commitments Under Capital Leases | Future minimum rental commitments under capital leases at December 31, 2016 are as follows: Year Ending December 31, Capital Lease 2017 $ 508 2018 231 Less – interest on capital leases 21 $ 718 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Summary of Stock Option Activity | The following is a summary of the stock option activity for all stock option plans during the year ended December 31, 2016: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (2) Outstanding at December 31, 2015 4,622,886 $ 6.63 Granted 816,902 8.83 Exercised (886,085 ) 5.14 $ 5,159 Cancelled (403,119 ) 8.84 Outstanding at December 31, 2016 4,150,584 $ 7.17 7.14 $ 7,107 Exercisable at December 31, 2016 1,923,596 $ 6.49 5.37 $ 4,867 Vested or expected to vest at December 31, 2016 (1) 3,612,724 $ 7.08 6.87 $ 6,577 (1) This represents the number of vested options as of December 31, 2016 plus the number of unvested options expected to vest as of December 31, 2016, based on the unvested options outstanding at December 31, 2016 and adjusted for the estimated forfeiture rate. (2) The aggregate intrinsic value was calculated based on the positive difference between the estimated fair value of the Company’s common stock on December 31, 2016 of $8.05 per share, or the date of exercise, as appropriate, and the exercise price of the underlying options. |
Summary of RSU Activity | The following table summarizes the RSU activity during the year ended December 31, 2016: Shares Weighted Average Grant Date Fair Value Unvested by December 31, 2015 1,503,814 $ 6.69 Granted 1,061,958 9.77 Vested and issued (425,898 ) 7.35 Cancelled (237,297 ) 7.59 Unvested by December 31, 2016 1,902,577 $ 7.84 |
Schedule of Shares of Common Stock Reserved for Future Issuance | At December 31, 2016, the Company has reserved the following shares of common stock for future issuance: December 31, Common stock options outstanding 4,150,584 Restricted stock unit awards outstanding 1,902,577 Shares available for issuance under all stock-based compensation plans 945,238 Total shares of authorized common stock reserved for future issuance 6,998,399 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss before Provision for Income Taxes | Loss before the provision for income taxes consists of the following: Year Ended December 31, 2016 2015 2014 Domestic $ (10,756 ) $ (8,028 ) $ (17,492 ) Foreign 1,180 839 859 Total $ (9,576 ) $ (7,189 ) $ (16,633 ) |
Schedule of Provision for Income Taxes | The provision for income taxes in the accompanying consolidated financial statements consists of the following: Year Ended December 31, 2016 2015 2014 Current provision: Federal $ — $ — $ — State 33 29 41 Foreign 424 389 219 Total current 457 418 260 Deferred (benefit): Federal — — — State — — — Foreign (47 ) (27 ) — Total deferred (47 ) (27 ) — Total provision $ 410 $ 391 $ 260 |
Schedule of Reconciliation of U.S. Federal Statutory Rate to Effective Tax Rate | A reconciliation of the U.S. federal statutory rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2016 2015 2014 Tax at statutory rates (34.0 )% (34.0 )% (34.0 )% State income taxes (6.1 ) 3.4 (2.0 ) Change in tax rate 0.1 3.0 (1.6 ) Permanent differences 11.7 34.7 16.2 Foreign rate differential (1.1 ) (1.2 ) (0.4 ) Research and development credits (6.7 ) (9.6 ) (7.9 ) Change in valuation allowance 40.8 7.7 31.2 Other, net (0.3 ) 1.4 0.1 Effective tax rate 4.3 % 5.4 % 1.6 % |
Schedule of Income Tax Effect of Each Type of Temporary Difference and Carryforward | The approximate income tax effect of each type of temporary difference and carryforward as of December 31, 2016 and 2015 is as follows: As of December 31, 2016 2015 Net operating loss carry-forwards $ 45,850 $ 42,666 Tax credit carry-forwards 7,654 6,646 Stock-based compensation 2,236 2,283 Intangible assets (5,962 ) (5,799 ) Fixed assets 154 49 Account receivable reserves 219 1,071 Accrued compensation 2,232 1,422 Capitalized start-up 279 346 Other temporary differences 761 777 Deferred tax assets 53,423 49,461 Valuation allowance (53,302 ) (49,398 ) Net deferred tax assets $ 121 $ 63 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses | Accrued expenses consist of the following: December 31, 2016 2015 Accrued payroll and related benefits $ 7,089 $ 5,393 Accrued sales and other taxes 2,275 1,728 Accrued professional fees and outside contractors 1,082 1,023 Accrued content delivery 2,013 2,112 Accrued other liabilities 3,246 2,593 Total $ 15,705 $ 12,849 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Total Revenue to Unaffiliated Customers by Geographic Area, Based on Location of Customer | Total revenue to unaffiliated customers by geographic area, based on the location of the customer, was as follows: Year Ended December 31, 2016 2015 2014 Revenue: North America $ 92,912 $ 86,106 $ 75,419 Europe 25,196 25,380 30,624 Japan 15,230 9,061 7,902 Asia Pacific 15,617 12,380 10,109 Other 1,311 1,779 963 Total revenue $ 150,266 $ 134,706 $ 125,017 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | For the three months ended: Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Revenue $ 38,625 $ 38,389 $ 36,960 $ 36,292 $ 35,136 $ 33,837 $ 32,848 $ 32,885 Gross profit 23,272 24,612 23,507 23,028 23,321 22,325 21,290 21,293 Loss from operations (3,684 ) (1,552 ) (2,211 ) (1,531 ) (214 ) (1,025 ) (3,151 ) (2,541 ) Net income (loss) (4,363 ) (1,618 ) (2,398 ) (1,607 ) 172 (1,275 ) (3,646 ) (2,831 ) Basic net income (loss) per share (0.13 ) (0.05 ) (0.07 ) (0.05 ) 0.01 (0.04 ) (0.11 ) (0.09 ) Diluted net income (loss) per share (0.13 ) (0.05 ) (0.07 ) (0.05 ) 0.01 (0.04 ) (0.11 ) (0.09 ) |
Business Description - Addition
Business Description - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Subsidiaries | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly-owned subsidiaries | 9 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Additional Information (Detail) | Dec. 31, 2016USD ($)Customer | Feb. 29, 2016USD ($) | Dec. 31, 2016USD ($)Customer$ / sharesPlans | Dec. 31, 2015USD ($)Customer$ / shares | Dec. 31, 2014USD ($)Customer$ / shares |
Accounting Policies [Line Items] | |||||
Short-term investments | $ 0 | $ 0 | $ 0 | ||
Long-term investments | $ 0 | $ 0 | 0 | ||
Restricted cash | $ 201,000 | ||||
Number of customers accounted for more than 10% of total revenue | Customer | 0 | 0 | 0 | 0 | |
Threshold percentage of total revenues required for major customer classification | 10.00% | 10.00% | 10.00% | ||
Number of customers accounted for more than 10% of net accounts receivable | Customer | 0 | 0 | 0 | ||
Capitalized software development costs | $ 4,038,000 | $ 4,038,000 | $ 1,488,000 | $ 474,000 | |
Amortization of capitalized internal-use software development costs | 690,000 | 469,000 | 397,000 | ||
Depreciation and amortization, expense | 4,680,000 | 5,575,000 | $ 5,387,000 | ||
Repayment of equipment financing | $ 271,000 | $ 1,704,000 | |||
Number of stock-based compensation plans | Plans | 4 | ||||
Expected dividend yield | $ 0 | ||||
Estimated forfeiture rate | 17.00% | 17.00% | 17.00% | ||
Weighted-average fair value of options granted | $ / shares | $ 4.01 | $ 3.10 | $ 4.21 | ||
Unrecognized stock-based compensation expense | 13,327,000 | $ 13,327,000 | |||
Unrecognized compensation cost, recognition period | 2 years 5 months 23 days | ||||
Stock-based compensation | $ 6,012,000 | $ 6,014,000 | $ 6,387,000 | ||
Advertising costs | $ 2,137,000 | $ 2,081,000 | $ 3,515,000 | ||
December Equipment Financing Agreement [Member] | |||||
Accounting Policies [Line Items] | |||||
Debt issuance date | Dec. 31, 2015 | ||||
Computer equipment and support purchased | $ 604,000 | ||||
Repayment of equipment financing | $ 604,000 | ||||
Facility Closing [Member] | |||||
Accounting Policies [Line Items] | |||||
Loss on disposal of assets | 150,000 | ||||
Settlement amount under termination agreement upon facility closure | 695,000 | ||||
Disposal group, cost of revenue | 845,000 | ||||
Software [Member] | |||||
Accounting Policies [Line Items] | |||||
Estimated Useful Life (in Years) | 3 years | ||||
Computer Equipment [Member] | |||||
Accounting Policies [Line Items] | |||||
Estimated Useful Life (in Years) | 3 years | ||||
Computer Equipment [Member] | Facility Closing [Member] | |||||
Accounting Policies [Line Items] | |||||
Disposal of computer equipment | $ 1,900,000 | $ 1,900,000 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investment Holdings [Line Items] | ||
Amortized Cost | $ 36,813 | $ 27,637 |
Fair Market Value | 36,813 | 27,637 |
Balance Per Balance Sheet | 36,813 | 27,637 |
Cash [Member] | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 23,942 | 18,057 |
Fair Market Value | 23,942 | 18,057 |
Balance Per Balance Sheet | 23,942 | 18,057 |
Money Market Funds [Member] | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 12,871 | 9,580 |
Fair Market Value | 12,871 | 9,580 |
Balance Per Balance Sheet | $ 12,871 | $ 9,580 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Summary of Changes in Company's Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Balance at Beginning of Period | $ 332 | $ 181 | $ 461 |
Provision | 230 | 408 | 118 |
Write-offs | (408) | (257) | (398) |
Balance at End of Period | $ 154 | $ 332 | $ 181 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 36,595 | $ 34,226 |
Less accumulated depreciation and amortization | 27,331 | 25,537 |
Property and equipment, net | $ 9,264 | 8,689 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in Years) | 3 years | |
Property and equipment, gross | $ 18,750 | 20,459 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in Years) | 3 years | |
Property and equipment, gross | $ 14,648 | 10,766 |
Software [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in Years) | 3 years | |
Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in Years) | 6 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in Years) | 5 years | |
Property and equipment, gross | $ 1,995 | 1,942 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,202 | $ 1,059 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Potentially Dilutive Common Shares Excluded from Computation of Dilutive Net Loss per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 4,291 | 4,139 | 3,805 |
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 | 1,668 | 1,043 | 990 |
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 | 19 | 28 | 28 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Weighted Average Assumptions Utilized (Detail) - Stock Compensation Plan [Member] | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.75% | 1.96% | 2.16% |
Expected volatility | 45.00% | 46.00% | 52.00% |
Expected life (in years) | 6 years 2 months 12 days | 6 years 2 months 12 days | 6 years 2 months 12 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Total purchase price | $ 39,728 | ||||
Cash paid for acquisition, net of cash acquired | $ 9,100 | ||||
Shares placed into escrow account | 1,285,715 | ||||
Unicorn Media [Member] | |||||
Business Acquisition [Line Items] | |||||
Shares received in exchange of liabilities released | 135,000 | 135,000 | 135,000 | ||
Unicorn Media [Member] | Other Expense [Member] | |||||
Business Acquisition [Line Items] | |||||
Gain on settlement of future liabilities | $ 871 | $ 871 | $ 871 | ||
Unicorn [Member] | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 39,700 | $ 39,700 | |||
Business acquisition date | Jan. 31, 2014 | ||||
Cash paid for acquisition, net of cash acquired | $ 9,100 | ||||
Common stock issued in acquisition | 2,850,547 |
Intangible Assets and Goodwil39
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 10, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Aggregate Amortization Expense Acquired Intangible Assets [Line Items] | ||||
Purchase of intangible assets | $ 300 | |||
Purchase of intangible assets, contingent amount | $ 250 | |||
Useful life | 3 years | |||
Net carrying value of the intangible asset | $ 10,970 | $ 13,786 | ||
Amortization expense related to intangible assets | 3,116 | 3,112 | $ 3,200 | |
Goodwill | 50,776 | $ 50,776 | ||
Additional Purchase [Member] | ||||
Aggregate Amortization Expense Acquired Intangible Assets [Line Items] | ||||
Net carrying value of the intangible asset | $ 219 |
Intangible Assets and Goodwil40
Intangible Assets and Goodwill - Finite Lived Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Gross Carrying Value | $ 22,760 | $ 22,460 |
Finite Lived Intangible Assets Accumulated Amortization | 11,790 | 8,674 |
Finite Lived Intangible Assets Net Carrying Value | $ 10,970 | $ 13,786 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Weighted Average Estimated Useful Life (in years) | 7 years | 7 years |
Finite Lived Intangible Assets Gross Carrying Value | $ 14,223 | $ 14,223 |
Finite Lived Intangible Assets Accumulated Amortization | 7,400 | 5,369 |
Finite Lived Intangible Assets Net Carrying Value | $ 6,823 | $ 8,854 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Weighted Average Estimated Useful Life (in years) | 11 years | 12 years |
Finite Lived Intangible Assets Gross Carrying Value | $ 6,257 | $ 5,957 |
Finite Lived Intangible Assets Accumulated Amortization | 2,147 | 1,500 |
Finite Lived Intangible Assets Net Carrying Value | $ 4,110 | $ 4,457 |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Weighted Average Estimated Useful Life (in years) | 3 years | 3 years |
Finite Lived Intangible Assets Gross Carrying Value | $ 1,912 | $ 1,912 |
Finite Lived Intangible Assets Accumulated Amortization | 1,875 | 1,437 |
Finite Lived Intangible Assets Net Carrying Value | $ 37 | $ 475 |
Tradename [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Weighted Average Estimated Useful Life (in years) | 3 years | 3 years |
Finite Lived Intangible Assets Gross Carrying Value | $ 368 | $ 368 |
Finite Lived Intangible Assets Accumulated Amortization | $ 368 | $ 368 |
Intangible Assets and Goodwil41
Intangible Assets and Goodwill - Estimated Remaining Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 2,733 | |
2,018 | 2,317 | |
2,019 | 1,604 | |
2,020 | 1,585 | |
2,021 | 1,327 | |
2022 and thereafter | 1,404 | |
Total | $ 10,970 | $ 13,786 |
Fair Value Measurements - Compa
Fair Value Measurements - Company's Financial Instruments Carried at Fair Value Using Lowest Level of Input (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 12,871 | $ 9,580 |
Restricted cash | 201 | |
Total assets | 12,871 | 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 | 12,871 | 9,580 |
Total assets | $ 12,871 | 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 | |
Total assets | $ 201 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Rental Commitments Under Operating Lease (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,017 | $ 6,006 |
2,018 | 5,337 |
2,019 | 4,983 |
2,020 | 4,179 |
2,021 | 3,968 |
2022 and thereafter | 1,029 |
Total | $ 25,502 |
Commitments and Contingencies44
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Jan. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Commitment And Contingencies [Line Items] | |||||
Option to renewal description | The Company's primary office lease has the option to renew the lease for two successive periods of five years each. | ||||
Deferred rent and rent incentives | $ 1,579,000 | $ 1,579,000 | $ 1,653,000 | ||
Deferred rent and rent incentives, noncurrent | 1,320,000 | 1,320,000 | 1,565,000 | ||
Rent expense | 6,334,000 | 6,831,000 | $ 6,280,000 | ||
Income from sublease rental | 219,000 | $ 185,000 | $ 0 | ||
Total assets under incremental capital leases | 1,200,000 | 1,200,000 | |||
Accumulated amortization related to capital leases | 557,000,000 | 557,000,000 | |||
Non-cancelable commitments due in 2017 | 9,876,000 | 9,876,000 | |||
Non-cancelable commitments due in 2018 | 10,996,000 | 10,996,000 | |||
Non-cancelable commitments due in 2019 | 6,942,000 | 6,942,000 | |||
Patent Infringement Case [Member] | Autumn Cloud LLC [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Loss incurred on patent infringement case | 0 | ||||
Facility Closing [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Loss on disposal of assets | 150,000 | ||||
Disposal group, cost of revenue | 845,000 | ||||
Settlement amount under termination agreement upon facility closure | 695,000 | ||||
Subsequent Event [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Non-cancelable commitments | $ 15,800,000 | ||||
Non-cancelable commitments end date | Dec. 31, 2018 | ||||
Letter of Credit [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Debt instrument, face amount | $ 2,404,000 | $ 2,404,000 |
Commitments and Contingencies45
Commitments and Contingencies - Future Minimum Rental Commitments Under Capital Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,017 | $ 508 |
2,018 | 231 |
Less - interest on capital leases | 21 |
Capital Lease Commitments | $ 718 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Aug. 31, 2016shares | Dec. 31, 2015USD ($)shares | Sep. 30, 2006$ / sharesshares | Dec. 31, 2016Plansshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)Employeesshares | Dec. 31, 2012Employeesshares | Feb. 28, 2012USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of stock-based compensation plans | Plans | 4 | |||||||||
Number of shares reserved for issuance under the equity incentive plan | 6,998,399 | 6,998,399 | ||||||||
Restricted stock units, number of common shares called by RSUs | 77,100 | |||||||||
Number of new employees pursuant to the RSU Plan | Employees | 15 | |||||||||
Number of shares available for issuance | 945,238 | 945,238 | ||||||||
Aggregate Intrinsic Value, Exercised | $ | $ 281 | $ 1,499 | ||||||||
Shares exercised during period | 28,028 | 18,685 | ||||||||
Shares issued during period, share-based compensation | 20,528 | 15,781 | ||||||||
Unicorn Media [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares received in exchange of liabilities released | 135,000 | 135,000 | 135,000 | |||||||
Unicorn Media [Member] | Other Expense [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Gain on settlement of future liabilities | $ | $ 871 | $ 871 | $ 871 | |||||||
Series B Redeemable Convertible Preferred Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares called by warrants | 46,713 | |||||||||
Exercise price of warrants | $ / shares | $ 3.21 | |||||||||
Warrants expiration date | Aug. 31, 2016 | |||||||||
Warrants, fair value | $ | $ 395 | |||||||||
2004 Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares reserved for issuance under the equity incentive plan | 7,397,843 | 7,397,843 | ||||||||
Shares transferred in share based compensation plan | 124,703 | |||||||||
2012 Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares reserved for issuance under the equity incentive plan | 1,700,000 | 1,700,000 | ||||||||
Shares reserved for issuance under the equity incentive plan, annual increase as a percentage of outstanding shares at year end | 4.00% | |||||||||
Overhang limit for number of shares reserved for issuance under the equity incentive plan | 30.00% | |||||||||
2012 Plan [Member] | Minimum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock based compensation, vesting period | 3 months | |||||||||
2012 Plan [Member] | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock based compensation, vesting period | 4 years | |||||||||
2014 Stock Inducement Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of new employees pursuant to the RSU Plan | Employees | 61 | |||||||||
Equity incentive plan, shares of common stock authorized | 578,350 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding at December 31, 2016 | 4,150,584 | ||
Aggregate Intrinsic Value, Exercised | $ 281 | $ 1,499 | |
Options Outstanding [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding at December 31, 2015 | 4,622,886 | ||
Shares, Granted | 816,902 | ||
Shares, Exercised | (886,085) | ||
Shares, Cancelled | (403,119) | ||
Shares, Outstanding at December 31, 2016 | 4,150,584 | 4,622,886 | |
Shares, Exercisable at December 31, 2016 | 1,923,596 | ||
Shares, Vested or expected to vest at December 31, 2016 | 3,612,724 | ||
Weighted-Average Exercise Price, Outstanding at December 31, 2015 | $ 6.63 | ||
Weighted-Average Exercise Price, Granted | 8.83 | ||
Weighted-Average Exercise Price, Exercised | 5.14 | ||
Weighted-Average Exercise Price, Cancelled | 8.84 | ||
Weighted-Average Exercise Price, Outstanding at December 31, 2016 | 7.17 | $ 6.63 | |
Weighted-Average Exercise Price, Exercisable at December 31, 2016 | 6.49 | ||
Weighted-Average Exercise Price, Vested or expected to vest at December 31, 2016 | $ 7.08 | ||
Weighted-Average Remaining Contractual Term, Outstanding at December 31, 2016 | 7 years 1 month 21 days | ||
Weighted-Average Remaining Contractual Term, Exercisable at December 31, 2016 | 5 years 4 months 13 days | ||
Weighted-Average Remaining Contractual Term, Vested or expected to vest at December 31, 2016 | 6 years 10 months 13 days | ||
Aggregate Intrinsic Value, Exercised | $ 5,159 | ||
Aggregate Intrinsic Value, Outstanding at December 31, 2016 | 7,107 | ||
Aggregate Intrinsic Value, Exercisable at December 31, 2016 | 4,867 | ||
Aggregate Intrinsic Value,Vested or expected to vest at December 31, 2016 | $ 6,577 |
Stockholders' Equity - Summar48
Stockholders' Equity - Summary of Stock Option Activity (Parenthetical) (Detail) | Dec. 31, 2016$ / shares |
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 | $ 8.05 |
Stockholders' Equity - Summar49
Stockholders' Equity - Summary of RSU Activity (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Unvested Shares, Ending Balance | 1,902,577 |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Unvested Shares, Beginning Balance | 1,503,814 |
Granted | 1,061,958 |
Vested and issued | (425,898) |
Cancelled | (237,297) |
Unvested Shares, Ending Balance | 1,902,577 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 6.69 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 9.77 |
Weighted Average Grant Date Fair Value, Vested and issued | $ / shares | 7.35 |
Weighted Average Grant Date Fair Value, Cancelled | $ / shares | 7.59 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 7.84 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Shares of Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Common stock options outstanding | 4,150,584 |
Restricted stock unit awards outstanding | 1,902,577 |
Shares available for issuance under all stock-based compensation plans | 945,238 |
Total shares of authorized common stock reserved for future issuance | 6,998,399 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure By Jurisdiction [Abstract] | |||
Domestic | $ (10,756) | $ (8,028) | $ (17,492) |
Foreign | 1,180 | 839 | 859 |
Loss before income taxes | $ (9,576) | $ (7,189) | $ (16,633) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current provision: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 33 | 29 | 41 |
Foreign | 424 | 389 | 219 |
Total current | 457 | 418 | 260 |
Deferred (benefit): | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | (47) | (27) | |
Total deferred | (47) | (27) | |
Total provision | $ 410 | $ 391 | $ 260 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of U.S. Federal Statutory Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax at statutory rates | (34.00%) | (34.00%) | (34.00%) |
State income taxes | (6.10%) | 3.40% | (2.00%) |
Change in tax rate | 0.10% | 3.00% | (1.60%) |
Permanent differences | 11.70% | 34.70% | 16.20% |
Foreign rate differential | (1.10%) | (1.20%) | (0.40%) |
Research and development credits | (6.70%) | (9.60%) | (7.90%) |
Change in valuation allowance | 40.80% | 7.70% | 31.20% |
Other, net | (0.30%) | 1.40% | 0.10% |
Effective tax rate | 4.30% | 5.40% | 1.60% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Effect of Each Type of Temporary Difference and Carryforward (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Components of Deferred Tax Assets [Abstract] | ||
Net operating loss carry-forwards | $ 45,850 | $ 42,666 |
Tax credit carry-forwards | 7,654 | 6,646 |
Stock-based compensation | 2,236 | 2,283 |
Intangible assets | (5,962) | (5,799) |
Fixed assets | 154 | 49 |
Account receivable reserves | 219 | 1,071 |
Accrued compensation | 2,232 | 1,422 |
Capitalized start-up costs | 279 | 346 |
Other temporary differences | 761 | 777 |
Deferred tax assets | 53,423 | 49,461 |
Valuation allowance | (53,302) | (49,398) |
Net deferred tax assets | $ 121 | $ 63 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||
Increase in valuation allowance | $ 3,900,000 | |
Valuation allowance | $ 53,302,000 | $ 49,398,000 |
Net operating losses carried forward, expiration date | Dec. 31, 2035 | |
Research and development tax credit, expiration date | Dec. 31, 2035 | |
Recorded liabilities for uncertain tax position | $ 0 | 0 |
Accrued interest or penalties related to uncertain tax positions | 0 | 0 |
Federal [Member] | ||
Income Taxes [Line Items] | ||
Net operating losses | 155,500,000 | |
Excess tax benefits from the exercise of non-qualified stock options | 16,900,000 | |
Research and development tax credits | 5,400,000 | |
Japan [Member] | ||
Income Taxes [Line Items] | ||
Valuation allowance | 0 | $ 0 |
State [Member] | ||
Income Taxes [Line Items] | ||
Net operating losses | 57,400,000 | |
Excess tax benefits from the exercise of non-qualified stock options | 10,200,000 | |
Research and development tax credits | $ 3,500,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 29, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
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. | ||
Debt amount outstanding | $ 0 | ||
Repayment of equipment financing | 271,000 | $ 1,704,000 | |
December Equipment Financing Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Debt amount outstanding | $ 333,000 | ||
Debt issuance date | Dec. 31, 2015 | ||
Computer equipment and support purchased | $ 604,000 | ||
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 |
Accrued Expenses - Components o
Accrued Expenses - Components of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Liabilities, Current [Abstract] | ||
Accrued payroll and related benefits | $ 7,089 | $ 5,393 |
Accrued sales and other taxes | 2,275 | 1,728 |
Accrued professional fees and outside contractors | 1,082 | 1,023 |
Accrued content delivery | 2,013 | 2,112 |
Accrued other liabilities | 3,246 | 2,593 |
Total | $ 15,705 | $ 12,849 |
Segment Information - Total Rev
Segment Information - Total Revenue to Unaffiliated Customers by Geographic Area, Based on Location of Customer (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 38,625 | $ 38,389 | $ 36,960 | $ 36,292 | $ 35,136 | $ 33,837 | $ 32,848 | $ 32,885 | $ 150,266 | $ 134,706 | $ 125,017 |
North America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 92,912 | 86,106 | 75,419 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 25,196 | 25,380 | 30,624 | ||||||||
Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 15,230 | 9,061 | 7,902 | ||||||||
Asia Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 15,617 | 12,380 | 10,109 | ||||||||
Other [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 1,311 | $ 1,779 | $ 963 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from customers | $ 38,625 | $ 38,389 | $ 36,960 | $ 36,292 | $ 35,136 | $ 33,837 | $ 32,848 | $ 32,885 | $ 150,266 | $ 134,706 | $ 125,017 |
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 | $ 87,302 | $ 80,455 | 69,778 | ||||||||
Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from customers | $ 15,230 | $ 9,061 | $ 7,902 |
401(k) Savings Plan - Additiona
401(k) Savings Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Contribution made under the plan | $ 336 | $ 276 | $ 199 |
Quarterly Financial Data - Summ
Quarterly Financial Data - Summary of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 38,625 | $ 38,389 | $ 36,960 | $ 36,292 | $ 35,136 | $ 33,837 | $ 32,848 | $ 32,885 | $ 150,266 | $ 134,706 | $ 125,017 |
Gross profit | 23,272 | 24,612 | 23,507 | 23,028 | 23,321 | 22,325 | 21,290 | 21,293 | 94,419 | 88,229 | 81,284 |
Loss from operations | (3,684) | (1,552) | (2,211) | (1,531) | (214) | (1,025) | (3,151) | (2,541) | (8,978) | (6,931) | (15,193) |
Net income (loss) | $ (4,363) | $ (1,618) | $ (2,398) | $ (1,607) | $ 172 | $ (1,275) | $ (3,646) | $ (2,831) | $ (9,986) | $ (7,580) | $ (16,893) |
Basic net income (loss) per share | $ (0.13) | $ (0.05) | $ (0.07) | $ (0.05) | $ 0.01 | $ (0.04) | $ (0.11) | $ (0.09) | |||
Diluted net income (loss) per share | $ (0.13) | $ (0.05) | $ (0.07) | $ (0.05) | $ 0.01 | $ (0.04) | $ (0.11) | $ (0.09) |