Brightcove (BCOV) 10-Q 4 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	BCOV
Entity Registrant Name	BRIGHTCOVE INC
Entity Central Index Key	1,313,275
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		33,783,814

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 29,168	$ 36,813
Accounts receivable, net of allowance of $318 and $154 at March 31, 2017 and December 31, 2016, respectively	22,438	21,575
Prepaid expenses	5,187	3,729
Other current assets	2,999	2,168
Total current assets	59,792	64,285
Property and equipment, net	9,273	9,264
Intangible assets, net	10,259	10,970
Goodwill	50,776	50,776
Deferred tax asset	127	121
Other assets	980	1,008
Total assets	131,207	136,424
Current liabilities:
Accounts payable	6,014	5,327
Accrued expenses	11,956	15,705
Capital lease liability	418	489
Equipment financing	257	307
Deferred revenue	35,909	34,665
Total current liabilities	54,554	56,493
Deferred revenue, net of current portion	62	91
Other liabilities	1,491	1,644
Total liabilities	56,107	58,228
Commitments and contingencies (Note 9)
Stockholders' equity:
Undesignated preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued
Common stock, $0.001 par value; 100,000,000 shares authorized; 34,243,493 and 34,143,148 shares issued at March 31, 2017 and December 31, 2016, respectively	34	34
Additional paid-in capital	232,782	230,788
Treasury stock, at cost; 135,000 shares	(871)	(871)
Accumulated other comprehensive loss	(992)	(1,172)
Accumulated deficit	(155,853)	(150,583)
Total stockholders' equity	75,100	78,196
Total liabilities and stockholders' equity	$ 131,207	$ 136,424

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for accounts receivable	$ 318	$ 154
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	34,243,493	34,143,148
Treasury stock, shares	135,000	135,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Subscription and support revenue	$ 34,242	$ 34,653
Professional services and other revenue	3,330	1,639
Total revenue	37,572	36,292
Cost of revenue:
Cost of subscription and support revenue	12,154	11,675
Cost of professional services and other revenue	3,064	1,589
Total cost of revenue	15,218	13,264
Gross profit	22,354	23,028
Operating expenses:
Research and development	8,194	7,426
Sales and marketing	13,901	12,535
General and administrative	5,391	4,577
Merger-related		21
Total operating expenses	27,486	24,559
Loss from operations	(5,132)	(1,531)
Other income (expense), net	138	(31)
Loss before income taxes	(4,994)	(1,562)
Provision for income taxes	79	45
Net loss	$ (5,073)	$ (1,607)
Net loss per share - basic and diluted	$ (0.15)	$ (0.05)
Weighted-average number of common shares used in computing net loss per share	34,056,104	32,724,850
Cost of Subscription and Support Revenue [Member]
Stock-based compensation included in above line items:
Stock-based compensation	$ 102	$ 42
Amortization of acquired intangible assets included in above line items:
Amortization of acquired intangible assets	508	508
Cost of Professional Services and Other Revenue [Member]
Stock-based compensation included in above line items:
Stock-based compensation	60	57
Research and Development [Member]
Stock-based compensation included in above line items:
Stock-based compensation	407	389
Amortization of acquired intangible assets included in above line items:
Amortization of acquired intangible assets	11	31
Sales and Marketing [Member]
Stock-based compensation included in above line items:
Stock-based compensation	746	482
Amortization of acquired intangible assets included in above line items:
Amortization of acquired intangible assets	193	226
General and Administrative [Member]
Stock-based compensation included in above line items:
Stock-based compensation	$ 475	$ 489

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (5,073)	$ (1,607)
Other comprehensive income:
Foreign currency translation adjustments	180	(142)
Comprehensive loss	$ (4,893)	$ (1,749)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities
Net loss	$ (5,073)	$ (1,607)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	1,734	2,014
Stock-based compensation	1,790	1,459
Provision for reserves on accounts receivable	222	91
Changes in assets and liabilities:
Accounts receivable	(1,011)	541
Prepaid expenses and other current assets	(2,221)	(2,069)
Other assets	37	(156)
Accounts payable	695	(1,039)
Accrued expenses	(3,870)	844
Deferred revenue	1,102	2,917
Net cash (used in) provided by operating activities	(6,595)	2,995
Investing activities
Cash paid for purchase of intangible asset		(125)
Purchases of property and equipment, net of returns	(378)	(843)
Capitalized internal-use software costs	(603)	(810)
Net cash used in investing activities	(981)	(1,778)
Financing activities
Proceeds from exercise of stock options	79	43
Payments of withholding tax on RSU vesting	(118)	(86)
Proceeds from equipment financing		604
Payments on equipment financing	(76)	(48)
Payments under capital lease obligation	(174)	(278)
Net cash (used in) provided by financing activities	(289)	235
Effect of exchange rate changes on cash	220	203
Net (decrease) increase in cash and cash equivalents	(7,645)	1,655
Cash and cash equivalents at beginning of period	36,813	27,637
Cash and cash equivalents at end of period	$ 29,168	$ 29,292

Business Description and Basis

Business Description and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description and Basis of Presentation	1. Business Description and Basis of Presentation Business Description Brightcove Inc. (the Company) is a leading global provider of cloud services for video which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. At March 31, 2017, 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 The accompanying interim condensed consolidated financial statements are unaudited. These condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and related notes, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company’s Annual Report on Form 10-K The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements and notes have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2016 contained in the Company’s Annual Report on Form 10-K The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure, other than those disclosed in this Report on Form 10-Q. The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the condensed consolidated financial statements. As of March 31, 2017, the Company’s significant accounting policies and estimates, which are detailed in the Company’s Annual Report on Form 10-K No. 2016-09, Compensation – Stock Compensation

Concentration of Credit Risk

Concentration of Credit Risk	3 Months Ended
	Mar. 31, 2017
Risks and Uncertainties [Abstract]
Concentration of Credit Risk	2. Concentration of Credit Risk The Company has no significant off-balance At March 31, 2017 and December 31, 2016, no individual customer accounted for 10% or more of net accounts receivable. For the three months ended March 31, 2017 and 2016, no individual customer accounted for 10% or more of total revenue.

Concentration of Other Risks

Concentration of Other Risks	3 Months Ended
	Mar. 31, 2017
Text Block [Abstract]
Concentration of Other Risks	3. Concentration of Other Risks The Company is dependent on certain content delivery network providers who provide digital media delivery functionality enabling the Company’s on-demand end-users.

Cash and Cash Equivalents

Cash and Cash Equivalents	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	4. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Management determines the appropriate classification of investments at the time of purchase, and re-evaluates Cash and cash equivalents primarily consist of cash on deposit with banks and amounts held in interest-bearing money market accounts. Cash equivalents are carried at cost, which approximates their fair market value. Cash and cash equivalents as of March 31, 2017 consist of the following: March 31, 2017 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Sheet Cash Demand $ 16,278 $ 16,278 $ 16,278 Money market funds Demand 12,890 12,890 12,890 Total cash and cash equivalents $ 29,168 $ 29,168 $ 29,168 Cash and cash equivalents as of December 31, 2016 consist of the following: December 31, 2016 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Sheet 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

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Loss per Share	5. Net Loss per Share The following potentially dilutive common stock equivalent shares have been excluded from the computation of weighted-average shares outstanding as their effect would have been anti-dilutive (in thousands): Three Months Ended March 31, 2017 2016 Options outstanding 4,178 4,583 Restricted stock units outstanding 1,864 1,507 Warrants — 28

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	6. Fair Value of Financial Instruments The following tables set forth the Company’s financial instruments carried at fair value using the lowest level of input as of March 31, 2017 and December 31, 2016: March 31, 2017 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 12,890 $ — $ — $ 12,890 Total assets $ 12,890 $ — $ — $ 12,890 December 31, 2016 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 12,871 $ — $ — $ 12,871 Total assets $ 12,871 $ — $ — $ 12,871

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	7. Stock-based Compensation The fair value of stock options granted was estimated at the date of grant using the following weighted-average assumptions: Three Months Ended March 31, 2017 2016 Expected life in years 6.2 6.2 Risk-free interest rate 2.24 % 1.61 % Volatility 43 % 45 % Dividend yield — — Weighted-average fair value of stock options granted $ 3.69 $ 2.67 The Company recorded stock-based compensation expense of $1,790 and $1,459 for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, there was $19,001 of unrecognized stock-based compensation expense related to stock-based awards that is expected to be recognized over a weighted-average period of 2.42 years. On January 1, 2017, the Company adopted ASU No. 2016-09. ASU 2016-09 identifies paid-in-capital The following is a summary of the status of the Company’s stock options as of March 31, 2017 and the stock option activity during the three months ended March 31, 2017. Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (1) Outstanding at December 31, 2016 4,150,584 $ 7.17 Granted 120,916 8.19 Exercised (12,088 ) 6.55 $ 22 Canceled (39,963 ) 7.82 Outstanding at March 31, 2017 4,219,449 $ 7.20 6.95 $ 9,619 Exercisable at March 31, 2017 2,088,026 $ 6.69 5.24 $ 6,109 (1) The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company’s common stock on March 31, 2017 of $8.90 per share, or the date of exercise, as appropriate, and the exercise price of the underlying options. The following table summarizes the restricted stock unit activity during the three months ended March 31, 2017: Shares Weighted Average Grant Date Fair Value Unvested by December 31, 2016 1,902,577 $ 7.84 Granted 115,333 8.54 Vested and issued (88,882 ) 6.65 Canceled (54,180 ) 7.09 Unvested by March 31, 2017 1,874,848 $ 7.96

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes For the three months ended March 31, 2017 and 2016, the Company recorded income tax expense of $79 and $45, respectively. The income tax expense relates principally to the Company’s foreign operations. The Company has evaluated the positive and negative evidence bearing upon the realizability of its U.S. net deferred tax assets. As required by the provisions of Accounting Standards Codification (ASC) 740, Income Taxes more-likely-than-not

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Legal Matters The Company, from time to time, is party to litigation arising in the ordinary course of business. Management does not believe that the outcome of these claims will have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company based on the status of proceedings at this time. On 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, subsequently amended twice by the plaintiff, alleges that Cox Media Group (CMG) engaged in the unlicensed provision of copyrighted videos owned by the plaintiff on CMG websites by using our technology. The amended complaint seeks actual and statutory damages, costs and injunctive relief. The defendants filed two separate motions to dismiss, both of which were granted and resulted in a narrowing of the claims in the amended complaint. The Company answered the amended complaint on April 21, 2017 and discovery is ongoing. The Company cannot yet determine whether it is probable that a loss will be incurred in connection with this complaint, nor can the Company reasonably estimate the potential loss, if any. Guarantees and Indemnification Obligations The Company typically enters into indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses and costs incurred by the indemnified party, generally the Company’s customers, in connection with patent, copyright, trade secret, or other intellectual property or personal right infringement claim by third parties with respect to the Company’s technology. The term of these indemnification agreements is generally perpetual after execution of the agreement. Based on when customers first subscribe for the Company’s service, the maximum potential amount of future payments the Company could be required to make under certain of these indemnification agreements is unlimited, however, more recently the Company has typically limited the maximum potential value of such potential future payments in relation to the value of the contract. Based on historical experience and information known as of March 31, 2017, the Company has not incurred any costs for the above guarantees and indemnities. The Company has received requests for indemnification from customers in connection with patent infringement suits brought against the customer by a third party. To date, the Company has not agreed that the requested indemnification is required by the Company’s contract with any such customer. In certain circumstances, the Company warrants that its products and services will perform in all material respects in accordance with its standard published specification documentation in effect at the time of delivery of the licensed products and services to the customer for the warranty period of the product or service. To date, the Company has not incurred significant expense under its warranties and, as a result, the Company believes the estimated fair value of these agreements is immaterial.

Debt

Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt	10. Debt On November 19, 2015, the Company entered into an amended and restated loan and security agreement with a lender (the “Loan Agreement”) providing for up to a $20.0 million asset based line of credit (the “Line of Credit”). Under the Line of Credit, the Company can borrow up to $20.0 million. Borrowings under the Line of Credit are secured by substantially all of the Company’s assets, excluding our intellectual property. Outstanding amounts under the Line of Credit accrue interest at a rate equal to the prime rate or the LIBOR rate plus 2.5%. Under the Loan Agreement, the Company must comply with certain financial covenants, including maintaining a minimum asset coverage ratio. If the outstanding principal during any month is at least $15.0 million, the Company must also maintain a minimum net income threshold based on non-GAAP 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 $257 as of March 31, 2017.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Information	11. Segment Information Geographic Data Total revenue from unaffiliated customers by geographic area, based on the location of the customer, was as follows: Three Months Ended March 31, 2017 2016 Revenue: North America $ 23,399 $ 23,040 Europe 5,967 6,077 Japan 3,769 3,466 Asia Pacific 4,221 3,399 Other 216 310 Total revenue $ 37,572 $ 36,292 North America is comprised of revenue from the United States, Canada and Mexico. Revenue from customers located in the United States was $22,028 and $21,663 during the three months ended March 31, 2017 and 2016, respectively. Other than the United States and Japan, no other country contributed more than 10% of the Company’s total revenue during the three months ended March 31, 2017 and 2016. As of March 31, 2017 and December 31, 2016, property and equipment at locations outside the U.S. was not material.

Recently Issued and Adopted Acc

Recently Issued and Adopted Accounting Standards	3 Months Ended
	Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract]
Recently Issued and Adopted Accounting Standards	12. Recently Issued and Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which Revenue from Contracts with Customers , ASU 2014-09 outlines ASU 2014-09 may cumulative catch-up adjustment In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date ASU 2014-09 by ASU 2014-09 is ASU 2014-09 will The Company intends to adopt ASU 2014-09 on In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification ASU 2016-02 requires ASU 2016-02, a right-of-use asset ASU 2016-02 must ASU 2016-02 ASU 2016-02 will

Business Description and Basi19

Business Description and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description	1. Business Description and Basis of Presentation Business Description Brightcove Inc. (the Company) is a leading global provider of cloud services for video which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. At March 31, 2017, 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 interim condensed consolidated financial statements are unaudited. These condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and related notes, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company’s Annual Report on Form 10-K The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements and notes have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2016 contained in the Company’s Annual Report on Form 10-K The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure, other than those disclosed in this Report on Form 10-Q. The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the condensed consolidated financial statements. As of March 31, 2017, the Company’s significant accounting policies and estimates, which are detailed in the Company’s Annual Report on Form 10-K No. 2016-09, Compensation – Stock Compensation
Recently Issued and Adopted Accounting Standards	In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which Revenue from Contracts with Customers , ASU 2014-09 outlines ASU 2014-09 may cumulative catch-up adjustment In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date ASU 2014-09 by ASU 2014-09 is ASU 2014-09 will The Company intends to adopt ASU 2014-09 on In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification ASU 2016-02 requires ASU 2016-02, a right-of-use asset ASU 2016-02 must ASU 2016-02 ASU 2016-02 will

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents [Abstract]
Schedule of Cash and Cash Equivalents	Cash and cash equivalents as of March 31, 2017 consist of the following: March 31, 2017 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Sheet Cash Demand $ 16,278 $ 16,278 $ 16,278 Money market funds Demand 12,890 12,890 12,890 Total cash and cash equivalents $ 29,168 $ 29,168 $ 29,168 Cash and cash equivalents as of December 31, 2016 consist of the following: December 31, 2016 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Sheet 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

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Potentially Dilutive Common Stock Equivalent Shares Excluded from Computation of Weighted-Average Shares Outstanding	The following potentially dilutive common stock equivalent shares have been excluded from the computation of weighted-average shares outstanding as their effect would have been anti-dilutive (in thousands): Three Months Ended March 31, 2017 2016 Options outstanding 4,178 4,583 Restricted stock units outstanding 1,864 1,507 Warrants — 28

Fair Value of Financial Instr22

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Company's Financial Instruments Carried at Fair Value Using Lowest Level of Input	The following tables set forth the Company’s financial instruments carried at fair value using the lowest level of input as of March 31, 2017 and December 31, 2016: March 31, 2017 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 12,890 $ — $ — $ 12,890 Total assets $ 12,890 $ — $ — $ 12,890 December 31, 2016 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 12,871 $ — $ — $ 12,871 Total assets $ 12,871 $ — $ — $ 12,871

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted-Average Assumptions	The fair value of stock options granted was estimated at the date of grant using the following weighted-average assumptions: Three Months Ended March 31, 2017 2016 Expected life in years 6.2 6.2 Risk-free interest rate 2.24 % 1.61 % Volatility 43 % 45 % Dividend yield — — Weighted-average fair value of stock options granted $ 3.69 $ 2.67
Summary of Status of Company's Stock Option Activity	The following is a summary of the status of the Company’s stock options as of March 31, 2017 and the stock option activity during the three months ended March 31, 2017. Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (1) Outstanding at December 31, 2016 4,150,584 $ 7.17 Granted 120,916 8.19 Exercised (12,088 ) 6.55 $ 22 Canceled (39,963 ) 7.82 Outstanding at March 31, 2017 4,219,449 $ 7.20 6.95 $ 9,619 Exercisable at March 31, 2017 2,088,026 $ 6.69 5.24 $ 6,109 (1) The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company’s common stock on March 31, 2017 of $8.90 per share, or the date of exercise, as appropriate, and the exercise price of the underlying options.
Restricted Stock Units Activity	The following table summarizes the restricted stock unit activity during the three months ended March 31, 2017: Shares Weighted Average Grant Date Fair Value Unvested by December 31, 2016 1,902,577 $ 7.84 Granted 115,333 8.54 Vested and issued (88,882 ) 6.65 Canceled (54,180 ) 7.09 Unvested by March 31, 2017 1,874,848 $ 7.96

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Total Revenue from Unaffiliated Customers by Geographic Area, Based on Location of Customer	Total revenue from unaffiliated customers by geographic area, based on the location of the customer, was as follows: Three Months Ended March 31, 2017 2016 Revenue: North America $ 23,399 $ 23,040 Europe 5,967 6,077 Japan 3,769 3,466 Asia Pacific 4,221 3,399 Other 216 310 Total revenue $ 37,572 $ 36,292

Business Description and Basi25

Business Description and Basis of Presentation - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017Subsidiaries
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of wholly-owned subsidiaries	9

Concentration of Credit Risk -

Concentration of Credit Risk - Additional Information (Detail) - Customer	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Risks and Uncertainties [Abstract]
Number of customers accounted for more than 10% of net accounts receivable	0	0
Number of customers accounted for more than 10% of total revenue	0	0
Threshold percentage of total revenues required for major customer classification	10.00%	10.00%

Cash and Cash Equivalents - Add

Cash and Cash Equivalents - Additional Information (Detail) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents [Abstract]
Short-term investments	$ 0	$ 0
Long-term investments	$ 0	$ 0

Cash and Cash Equivalents - Sch

Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Investment Holdings [Line Items]
Amortized Cost	$ 29,168	$ 36,813
Fair Market Value	29,168	36,813
Balance Per Balance Sheet	29,168	36,813
Cash [Member]
Investment Holdings [Line Items]
Amortized Cost	16,278	23,942
Fair Market Value	16,278	23,942
Balance Per Balance Sheet	16,278	23,942
Money Market Funds [Member]
Investment Holdings [Line Items]
Amortized Cost	12,890	12,871
Fair Market Value	12,890	12,871
Balance Per Balance Sheet	$ 12,890	$ 12,871

Net Loss per Share - Potentiall

Net Loss per Share - Potentially Dilutive Common Stock Equivalent Shares Excluded from Computation of Weighted-Average Shares Outstanding (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
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	4,178	4,583
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	1,864	1,507
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive common shares excluded from the computation of weighted-average shares outstanding		28

Fair Value of Financial Instr30

Fair Value of Financial Instruments - Company's Financial Instruments Carried at Fair Value Using Lowest Level of Input (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 12,890	$ 12,871
Total assets	12,890	12,871
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	12,890	12,871
Total assets	$ 12,890	$ 12,871

Stock-based Compensation - Weig

Stock-based Compensation - Weighted Average Assumptions (Detail) - Stock Compensation Plan [Member] - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life in years	6 years 2 months 12 days	6 years 2 months 12 days
Risk-free interest rate	2.24%	1.61%
Volatility	43.00%	45.00%
Dividend yield	0.00%	0.00%
Weighted-average fair value of stock options granted	$ 3.69	$ 2.67

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 19,001
Weighted average period	2 years 5 months 1 day
Stock based compensation expense	$ 1,790	$ 1,459
ASU 2016-09 [Member] | Accumulated Deficit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative effect of change due to new accounting pronouncement	197
ASU 2016-09 [Member] | Additional Paid-in Capital [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative effect of change due to new accounting pronouncement	$ 197

Stock-based Compensation - Summ

Stock-based Compensation - Summary of Stock Option Activity (Detail) - Options Outstanding [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at December 31, 2016 | shares	4,150,584
Shares, Granted | shares	120,916
Shares, Exercised | shares	(12,088)
Shares, Canceled | shares	(39,963)
Shares, Outstanding at March 31, 2017 | shares	4,219,449
Shares, Exercisable at March 31, 2017 | shares	2,088,026
Weighted-Average Exercise Price,Outstanding at December 31, 2016 | $ / shares	$ 7.17
Weighted-Average Exercise Price, Granted | $ / shares	8.19
Weighted-Average Exercise Price, Exercised | $ / shares	6.55
Weighted-Average Exercise Price, Canceled | $ / shares	7.82
Weighted-Average Exercise Price,Outstanding at March 31, 2017 | $ / shares	7.20
Weighted-Average Exercise Price,Exercisable at March 31, 2017 | $ / shares	$ 6.69
Weighted-Average Remaining Contractual Term, Outstanding at March 31, 2017	6 years 11 months 12 days
Weighted-Average Remaining Contractual Term, Exercisable at March 31, 2017	5 years 2 months 27 days
Aggregate Intrinsic Value, Exercised | $	$ 22
Aggregate Intrinsic Value, Outstanding at March 31, 2017 | $	9,619
Aggregate Intrinsic Value, Exercisable at March 31, 2017 | $	$ 6,109

Stock-based Compensation - Su34

Stock-based Compensation - Summary of Stock Option Activity (Parenthetical) (Detail)	Mar. 31, 2017$ / 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	$ 8.90

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock Units Activity (Detail) - RSUs [Member]	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Unvested Shares, Beginning Balance | shares	1,902,577
Granted | shares	115,333
Vested and issued | shares	(88,882)
Canceled | shares	(54,180)
Unvested Shares, Ending Balance | shares	1,874,848
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 7.84
Weighted Average Grant Date Fair Value, Granted | $ / shares	8.54
Weighted Average Grant Date Fair Value, Vested and issued | $ / shares	6.65
Weighted Average Grant Date Fair Value, Canceled | $ / shares	7.09
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 7.96

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income tax expense	$ 79	$ 45

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Cost for Guarantees and indemnities	$ 0

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended
	Feb. 29, 2016	Mar. 31, 2017	Mar. 31, 2016
Debt Instrument [Line Items]
Debt instrument term		If the outstanding principal during any month is at least $15.0 million, the Company must also maintain a minimum net income threshold based on non-GAAP operating measures.
Debt amount outstanding		$ 0
Repayment of equipment financing		76,000	$ 48,000
December Equipment Financing Agreement [Member]
Debt Instrument [Line Items]
Debt amount outstanding		$ 257,000
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

Segment Information - Total Rev

Segment Information - Total Revenue from Unaffiliated Customers by Geographic Area, Based on Location of Customer (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 37,572	$ 36,292
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	23,399	23,040
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	5,967	6,077
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,769	3,466
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	4,221	3,399
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 216	$ 310

Segment Information - Additiona

Segment Information - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues from customers	$ 37,572	$ 36,292
Revenue percentage from other countries other than united States and Japan 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	$ 22,028	$ 21,663