Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 36,645,299 | ||
Entity Public Float | $ 344,202,202 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 29,306 | $ 26,132 | $ 36,813 | $ 27,637 |
Accounts receivable, net of allowance of $190 and $146 at December 31, 2018 and December 31, 2017, respectively | 23,264 | 25,236 | ||
Prepaid expenses | 4,866 | 3,991 | ||
Other current assets | 7,070 | 3,045 | ||
Total current assets | 64,506 | 58,404 | ||
Property and equipment, net | 9,703 | 9,143 | ||
Intangible assets, net | 5,919 | 8,236 | ||
Goodwill | 50,776 | 50,776 | ||
Deferred tax asset | 87 | |||
Other assets | 2,452 | 969 | ||
Total assets | 133,356 | 127,615 | ||
Current liabilities: | ||||
Accounts payable | 7,712 | 6,142 | ||
Accrued expenses | 13,746 | 13,621 | ||
Capital lease liability | 236 | 228 | ||
Equipment financing | 26 | |||
Deferred revenue | 39,846 | 39,370 | ||
Total current liabilities | 61,540 | 59,387 | ||
Deferred revenue, net of current portion | 146 | 244 | ||
Deferred tax liability | 28 | |||
Other liabilities | 1,028 | 1,228 | ||
Total liabilities | 62,742 | 60,859 | ||
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; 36,752,469 and 34,933,408 shares issued at December 31, 2018 and 2017, respectively | 37 | 35 | ||
Additional paid-in capital | 251,122 | 238,700 | ||
Treasury stock, at cost; 135,000 shares | (871) | (871) | ||
Accumulated other comprehensive loss | (952) | (809) | ||
Accumulated deficit | (178,722) | (170,299) | ||
Total stockholders' equity | 70,614 | 66,756 | $ 78,196 | $ 78,135 |
Total liabilities and stockholders' equity | $ 133,356 | $ 127,615 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 190 | $ 146 |
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 | 36,752,469 | 34,933,408 |
Treasury stock, shares | 135,000 | 135,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | |||||||||||
Revenue | $ 164,833 | $ 155,913 | $ 150,266 | ||||||||
Cost of revenue: | |||||||||||
Cost of revenue | 66,624 | 64,618 | 55,847 | ||||||||
Gross profit | $ 24,387 | $ 24,803 | $ 25,036 | $ 23,983 | $ 23,783 | $ 22,983 | $ 22,175 | $ 22,354 | 98,209 | 91,295 | 94,419 |
Operating expenses: | |||||||||||
Research and development | 31,716 | 31,850 | 30,171 | ||||||||
Sales and marketing | 55,775 | 57,294 | 54,038 | ||||||||
General and administrative | 23,103 | 21,847 | 19,167 | ||||||||
Merger-related | 716 | 21 | |||||||||
Total operating expenses | 111,310 | 110,991 | 103,397 | ||||||||
Loss from operations | (2,527) | (3,141) | (5,017) | (2,416) | (1,331) | (5,349) | (7,884) | (5,132) | (13,101) | (19,696) | (8,978) |
Other income (expense), net | (326) | 547 | (598) | ||||||||
Loss before income taxes | (13,427) | (19,149) | (9,576) | ||||||||
Provision for income taxes | 601 | 370 | 410 | ||||||||
Net loss | $ (2,617) | $ (3,502) | $ (5,652) | $ (2,257) | $ (1,372) | $ (5,396) | $ (7,678) | $ (5,073) | $ (14,028) | $ (19,519) | $ (9,986) |
Net loss per share - basic and diluted | $ (0.07) | $ (0.10) | $ (0.16) | $ (0.06) | $ (0.04) | $ (0.16) | $ (0.22) | $ (0.15) | $ (0.39) | $ (0.57) | $ (0.30) |
Weighted-average number of common shares used in computing net loss per share - basic and diluted | 35,808 | 34,376 | 33,189 | ||||||||
Subscription and Support Revenue [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | $ 150,941 | $ 143,159 | $ 142,022 | ||||||||
Cost of revenue: | |||||||||||
Cost of revenue | 53,311 | 50,664 | 48,011 | ||||||||
Professional Services and Other Revenue [Member] | |||||||||||
Revenue: | |||||||||||
Revenue | 13,892 | 12,754 | 8,244 | ||||||||
Cost of revenue: | |||||||||||
Cost of revenue | $ 13,313 | $ 13,954 | $ 7,836 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (14,028) | $ (19,519) | $ (9,986) |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (143) | 363 | (284) |
Comprehensive loss | $ (14,171) | $ (19,156) | $ (10,270) |
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 Loss [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2015 | $ 78,135 | $ 33 | $ 220,458 | $ (871) | $ (888) | $ (140,597) |
Beginning Balance, shares at Dec. 31, 2015 | 32,810,631 | |||||
Treasury shares, beginning Balance at Dec. 31, 2015 | (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 | |||||
Return of common stock issued pursuant to settlement agreement | 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 |
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) | |||||
Issuance of common stock upon exercise of stock options | 520 | 520 | ||||
Issuance of common stock upon exercise of stock options, shares | 229,127 | |||||
Issuance of common stock pursuant to restricted stock units | $ 1 | (1) | ||||
Issuance of common stock pursuant to restricted stock units, shares | 561,133 | |||||
Withholding tax on restricted stock units vesting | $ (268) | $ (268) | ||||
Withholding tax on restricted stock units vesting, shares | 0 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | $ 7,464 | $ 7,464 | ||||
Foreign currency translation adjustment | 363 | $ 363 | ||||
Net loss | (19,519) | $ (19,519) | ||||
Ending Balance at Dec. 31, 2017 | $ 66,756 | $ 35 | 238,700 | $ (871) | $ (809) | (170,299) |
Ending Balance, shares at Dec. 31, 2017 | 34,933,408 | |||||
Treasury stock, Ending Balance at Dec. 31, 2017 | (135,000) | (135,000) | ||||
Impact of adoption of new accounting pronouncements | ASU 2016-09 [Member] | 197 | $ (197) | ||||
Issuance of common stock upon exercise of stock options | $ 5,757 | $ 1 | 5,756 | |||
Issuance of common stock upon exercise of stock options, shares | 1,173,288 | |||||
Issuance of common stock pursuant to restricted stock units | $ 1 | (1) | ||||
Issuance of common stock pursuant to restricted stock units, shares | 645,773 | |||||
Withholding tax on restricted stock units vesting | $ (170) | $ (170) | ||||
Withholding tax on restricted stock units vesting, shares | 0 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | $ 6,837 | $ 6,837 | ||||
Foreign currency translation adjustment | (143) | $ (143) | ||||
Net loss | (14,028) | $ (14,028) | ||||
Ending Balance at Dec. 31, 2018 | 70,614 | $ 37 | $ 251,122 | $ (871) | $ (952) | (178,722) |
Ending Balance (Accounting Standards Update 2014-09 [Member]) at Dec. 31, 2018 | $ 70,614 | |||||
Ending Balance, shares at Dec. 31, 2018 | 36,752,469 | |||||
Treasury stock, Ending Balance at Dec. 31, 2018 | (135,000) | (135,000) | ||||
Impact of adoption of new accounting pronouncements | Accounting Standards Update 2014-09 [Member] | $ 5,605 | $ 5,605 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net loss | $ (14,028) | $ (19,519) | $ (9,986) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 6,796 | 7,257 | 7,796 |
Stock-based compensation | 6,649 | 7,243 | 6,012 |
Deferred income taxes | 118 | 38 | (47) |
Provision for reserves on accounts receivable | 199 | 203 | 230 |
Loss on disposal of equipment | 155 | ||
Changes in assets and liabilities: | |||
Accounts receivable | 2,791 | (3,811) | (559) |
Prepaid expenses and other current assets | 294 | (1,484) | (894) |
Other assets | (536) | 56 | (299) |
Accounts payable | 1,197 | 1,758 | 733 |
Accrued expenses | 326 | (2,930) | 3,172 |
Deferred revenue | (1,256) | 4,748 | 4,764 |
Net cash provided by (used in) operating activities | 2,550 | (6,441) | 11,077 |
Investing activities | |||
Cash paid for purchase of intangible asset | (300) | ||
Purchases of property and equipment, net of returns (Note 2) | (1,538) | (1,102) | (1,307) |
Capitalized internal-use software costs | (2,993) | (3,010) | (3,887) |
Decrease in restricted cash | 201 | ||
Net cash used in investing activities | (4,531) | (4,112) | (5,293) |
Financing activities | |||
Proceeds from exercise of stock options | 5,757 | 520 | 4,555 |
Payments of withholding tax on RSU vesting | (170) | (268) | (405) |
Proceeds from equipment financing | 604 | ||
Payments on equipment financing (Note 9) | (26) | (307) | (271) |
Payments under capital lease obligation | (311) | (489) | (850) |
Net cash provided by (used in) financing activities | 5,250 | (544) | 3,633 |
Effect of exchange rate changes on cash and cash equivalents | (95) | 416 | (241) |
Net increase (decrease) in cash and cash equivalents | 3,174 | (10,681) | 9,176 |
Cash and cash equivalents at beginning of period | 26,132 | 36,813 | 27,637 |
Cash and cash equivalents at end of period | 29,306 | 26,132 | 36,813 |
Supplemental disclosure of cash flow information | |||
Cash paid for income taxes | 384 | 500 | 351 |
Cash paid for interest | 8 | 26 | 63 |
Supplemental disclosure of non-cash operating activities | |||
Capitalization of stock-based compensation related to internal use software | 188 | 221 | 169 |
Supplemental disclosure of non-cash investing and financing activities | |||
Unpaid internal-use software costs | 28 | 20 | |
Unpaid purchases of property and equipment | $ 160 | $ 138 | $ 83 |
Business Description
Business Description | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | 1. Business Description Brightcove Inc. (the Company) is a 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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, contingent liabilities, intangible asset valuations, amortization periods, expected future cash flows used to evaluate the recoverability of long-lived assets, the determination of the fair value of stock awards issued, and the recoverability of the Company’s deferred tax assets and related valuation allowance. 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, other than as reported herein and described below, there are no material recognized or unrecognized subsequent events. On February 13, 2019, the Company entered into a definitive agreement to acquire a significant portion of the assets of Ooyala, Inc. and certain of its subsidiaries, or “Ooyala”, a provider of cloud video ad insertion technology, in exchange for 1,056,763 unregistered shares of common stock of Brightcove Inc. and approximately $6.25 million of cash, which includes up to $500 as a reimbursement of Ooyala’s audit fees incurred in connection with the transaction. Pursuant to the purchase agreement, approximately $2.65 million of the cash will be placed into an escrow account to settle certain claims for indemnification for breaches or inaccuracies in Ooyala’s representations and warranties, covenants, and agreements. The escrow amount is the equivalent of 18% of the purchase price, and this amount will remain in escrow for 20 months. The expected acquisition will be accounted for as a purchase transaction, and as such the results of operations from the acquired assets will be consolidated with the Company beginning on the closing date of the acquisition. In connection with the acquisition of Ooyala, the Company incurred $716 of merger-related costs during 2018, which the Company recorded as an expense in its consolidated statements of operations for the year ended December 31, 2018. At this time, the Company has not completed its evaluation of the purchase accounting related to this transaction. 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, 2018 and 2017 consist of the following: December 31, 2018 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Cash Demand $ 21,007 $ 21,007 $ 21,007 Money market funds Demand 8,299 8,299 8,299 Total cash and cash equivalents $ 29,306 $ 29,306 $ 29,306 December 31, 2017 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Cash Demand $ 17,972 $ 17,972 $ 17,972 Money market funds Demand 8,160 8,160 8,160 Total cash and cash equivalents $ 26,132 $ 26,132 $ 26,132 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, 2018 and 2017, 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 The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers 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, 2018, 2017 and 2016: Balance at Provision Write-offs Balance at Year ended December 31, 2018 $ 146 $ 199 $ (155 ) $ 190 Year ended December 31, 2017 154 203 (211 ) 146 Year ended December 31, 2016 332 230 (408 ) 154 Off-Balance The Company has no significant off-balance For the years ended December 31, 2018, 2017 and 2016, no individual customer accounted for more than 10% of total revenue. As of December 31, 2018 and 2017, no individual customer accounted for more than 10% of accounts receivable, net. 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, 2018, 2017 and 2016, the Company capitalized $3,152, $3,239 and $4,038, 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, 2018 2017 Computer equipment 3 $ 14,076 $ 17,157 Software 3 - 6 21,208 17,996 Furniture and fixtures 5 2,929 2,396 Leasehold improvements Shorter of lease 1,665 1,366 39,878 38,915 Less accumulated depreciation and amortization 30,175 29,772 $ 9,703 $ 9,143 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. 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, 2018, 2017 and 2016, 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. Conditions that could trigger a more frequent impairment assessment include, but are not limited to, a significant adverse change in certain agreements, significant underperformance relative to historical or projected future operating results, an economic downturn in customers’ industries, increased competition, a significant reduction in our stock price for a sustained period or a reduction of our market capitalization relative to net book value. The Company has determined, based on its organizational structure, that it had one reporting unit as of December 31, 2018 and 2017. The Company evaluates impairment by comparing the estimated fair value of its reporting unit to its carrying value. The Company estimates fair value primarily utilizing the market approach, which calculates fair value based on the market values of comparable companies or comparable transactions. The Company adopted ASU 2017-04 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 outstanding common shares have been excluded from the computation of dilutive net loss per share as of December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 Options outstanding 2,738 4,127 4,291 Restricted stock units outstanding 3,034 2,050 1,668 Warrants — — 19 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, 2018, the Company had five stock-based compensation plans, which are more fully described in Note 7. The Company values its shares of common stock in connection with the issuance of stock-based equity awards using the closing price of the Company’s shares of common stock on the NASDAQ Global Market on the date of the grant. Accounting guidance requires employee stock-based payments to be accounted for under the fair value method. Under this method, the Company is required to record compensation cost based on the estimated fair value for stock-based awards granted over the requisite service periods for the individual awards, which generally equals the vesting periods. The Company uses the straight-line amortization method for recognizing stock-based compensation expense associated with equity awards to employees. 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. For service-based options, the Company recognizes compensation expense on a straight-line basis over the requisite service period of the award. 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. The expected volatility of options granted has been determined using a weighted-average of the historical volatility measures of a peer group of companies that issued options with substantially similar terms 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. The weighted-average fair value of options granted during the years ended December 31, 2018, 2017 and 2016, was $4.11, $3.08 and $4.01 per share, respectively. The weighted-average assumptions utilized to determine such values are presented in the following table: Year Ended December 31, 2018 2017 2016 Risk-free interest rate 2.88 % 2.08 % 1.75 % Expected volatility 43 % 42 % 45 % Expected life (in years) 6.2 6.1 6.2 Expected dividend yield — — — 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. For performance-based awards with service-based vesting conditions, the Company recognizes compensation expense based upon a review of the Company’s expected achievement against the specified targets. As of December 31, 2018, there was $16,967 of total unrecognized stock-based compensation expense related to stock-based awards that is expected to be recognized over a weighted-average period of 2.77 years. The following table summarizes stock-based compensation expense as included in the consolidated statement of operations for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 Cost of subscription and support revenue $ 481 $ 439 $ 324 Cost of professional services and other revenue 242 251 217 Research and development 1,281 1,563 1,275 Sales and marketing 2,377 2,750 2,320 General and administrative 2,268 2,240 1,876 $ 6,649 $ 7,243 $ 6,012 Upon the adoption of ASU 2016-09 2016-09, For the years ended December 31, 2018, 2017 and 2016, stock-based compensation expense for stock options granted to non-employees 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, 2018. Advertising Costs Advertising costs are charged to operations as incurred. The Company incurred advertising costs of $2,657, $2,485 and $2,137 for the years ended December 31, 2018, 2017 and 2016, respectively. Recent Accounting Pronouncements and Standards Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification leases. ASU 2016-02 ASU 2016-02, ASU 2016-02 ASU 2018-11, Leases (Topic 842), Targeted Improvements, ASU 2016-02. ASU 2018-11. Recently Adopted Accounting Standards In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments, ASU 2016-15 is of ASU 2016-15 did not In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash flows. ASU 2016-18 is in ASU 2016-18 using a of ASU 2016-18 did not In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business ASU 2017-01 did not In May 2017 the FASB issued ASU 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting ASU 2017-09 ASU 2017-09 is ASU 2017-09 did On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted in the United States. The Act reduces the U.S. federal corporate tax rate from 34% to 21%, requires companies to pay a one-time Income Tax Accounting Implications of the Tax Cuts and Jobs Act one-time Income Taxes The Company has taken into consideration the other impacts of the Act that became effective in 2018, including the provisions related to Global Intangible Low Taxed Income (“GILTI”), Foreign Derived Intangible Income, Base Erosion Anti-Abuse Tax, as well as other provisions which would limit the deductibility of future expenses. Interpretive guidance on the accounting for GILTI states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. For the year ended December 31, 2018, the Company made the accounting policy election to recognize GILTI as a period expense. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers 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 and customization In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers cumulative catch-up adjustment to Revenue Recognition cumulative catch-up 1) Identify the contract with a customer 2) Identify the performance obligations in the contract 3) Determine the transaction price 4) Allocate the transaction price to performance obligations in the contract 5) Recognize revenue when or as the Company satisfies a performance obligation The Company satisfies performance obligations as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a customer. Disaggregation of Revenue The Company classifies its customers by including them in either premium or volume offerings. For premium offerings, the Company organizes its go-to-market approach by The following table summarizes revenue from contracts with customers by business unit for the years ended December 31, 2018, 2017 and 2016. Year Ended December 31, 2018 2017 2016 Revenue by Business Unit Media $ 88,748 $ 85,562 $ 84,380 Enterprise 71,537 64,742 58,460 Volume 4,548 5,609 7,426 Total 164,833 155,913 150,266 Subscription and Support 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. Contracts for premium customers generally have a term of one year and are non-cancellable. These contracts generally provide the customer with a maximum annual level of entitlement, and provide the rate at which the customer must pay for actual usage above the annual entitlement allowance. These subscription arrangements are considered stand ready obligations that are providing a series of distinct services that are substantially the same and are transferred with the same pattern to the customer. As such, these subscription arrangements are treated as a single performance obligation and the related fees are recognized as revenue ratably over the term of the underlying arrangement. Under ASC 605, if usage exceeded the annual allowance level for a particular customer arrangement, the associated revenue was recognized in the period that the additional usage occurred. Under ASC 606, when the transaction price includes a variable amount of consideration, an entity is required to estimate the consideration that is expected to be received for a particular customer arrangement. The Company evaluates variable consideration for usage-based fees at contract inception and re-evaluates quarterly over Contracts with customers that are month-to-month arrangements (volume a pay-as-you-go basis, a pay-as-you-go basis Professional Services and Other Revenue Professional services and other revenue consist of services such as implementation, software customizations and project management for customers who subscribe to our premium editions. These arrangements are priced either on a fixed fee basis with a portion due upon contract signing and the remainder due when the related services have been completed, or on a time and materials basis. 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. Contracts with Multiple Performance Obligations The Company periodically enters into multiple-element service arrangements that include platform subscription fees, support fees, and, in certain cases, other professional services. These contracts include multiple promises that the Company evaluates to determine if the promises are separate performance obligations. Performance obligations are identified based on services to be transferred to a customer that are both capable of being distinct and are distinct within the context of the contract. Once the Company determines the performance obligations, the Company determines the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. The Company then allocates the transaction price to each performance obligation in the contract based on a relative stand-alone selling price method. The transaction price post allocation is recognized as revenue as the related performance obligation is satisfied. Costs to Obtain a Contract Commissions are paid to internal sales representatives as compensation for obtaining contracts. Under the new guidance, the Company capitalizes commissions that are incremental, as a result of costs incurred to obtain a customer contract, if those costs are not within the scope of another topic within the accounting literature and meet the specified criteria. Assets recognized for costs to obtain a contract are amortized over the period of performance for the underlying customer contracts. The commission expense on contracts with new customers was previously recorded over the respective contract term. Under the new guidance, the commission expense on contracts with new customers will be recorded over the average life of a customer given the commission amount associated with sales to new customers is not commensurate with the commission amount associated with the contract renewal for those same customers. The commission amount associated with the renewal of a contract in addition to any commission amount related to incremental sales was previously recorded as expense in the quarter the commission was earned; however, under ASC 606 these commission amounts are recorded as expense over the term of the renewed contract. These assets are periodically assessed for impairment. Financial Statement Impact of Adoption ASC 606 The cumulative effect of applying the new guidance to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made on the condensed consolidated balance sheet as of January 1, 2018. As Reported Adjustments Adjusted December 31, Subscription Costs to January 1, Assets Current assets: Cash and cash equivalents $ 26,132 $ 26,132 Accounts receivable, net 25,236 926 26,162 Prepaid expenses 3,991 3,991 Other current assets 3,045 1,861 3,384 8,290 Total current assets 58,404 2,787 3,384 64,575 Property and equipment, net 9,143 9,143 Intangible assets, net 8,236 8,236 Goodwill 50,776 50,776 Deferred tax asset 87 87 Other assets 969 978 1,947 Total assets $ 127,615 $ 2,787 $ 4,362 $ 134,764 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 6,142 $ 6,142 Accrued expenses 13,621 13,621 Capital lease liability 228 228 Equipment financing 26 26 Deferred revenue 39,370 1,429 40,799 Total current liabilities 59,387 1,429 — 60,816 Deferred revenue, net of current portion 244 115 359 Other liabilities 1,228 1,228 Total liabilities 60,859 1,544 — 62,403 Commitments and contingencies Stockholders’ equity: Undesignated preferred stock — — Common stock 35 35 Additional paid-in 238,700 238,700 Treasury stock (871 ) (871 ) Accumulated other comprehensive loss (809 ) (809 ) Accumulated deficit (170,299 ) 1,243 4,362 (164,694 ) Total stockholders’ equity 66,756 1,243 4,362 72,361 Total liabilities and stockholders’ equity $ 127,615 $ 2,787 $ 4,362 $ 134,764 Subscription and Support Under ASC 606, the Company estimates the variable consideration to be received and recognizes those amounts, subject to constraint, as the Company satisfies its performance obligation. In conjunction with the January 1, 2018 adoption of ASC 606, the Company reduced accumulated deficit by $1,243 reflecting the recognition of revenue primarily relating to variable consideration, for contracts that still require performance by the entity at the date of adoption. Costs to Obtain a Contract Under the new guidance, the commission expense on contracts with new customers will be recorded over the average life of a customer given the commission amount associated with sales to new customers is not commensurate with the commission amount associated with the contract renewal for those same customers. The commission amount associated with the renewal of a contract in addition to any related incremental sale is recorded as expense over the term of the renewed contract. The net impact of these changes resulted in a $4,362 reduction to accumulated deficit for contracts that still require performance by the Company at the date of adoption. Income Taxes The adoption of ASC 606 primarily resulted in an acceleration of revenue and the reduction of expense as of December 31, 2017, which in turn generated additional deferred tax liabilities. As the Company fully reserves its net deferred tax assets in the jurisdictions impacted by the adoption of ASC 606, this impact was offset by a corresponding reduction to the valuation allowance. Impact of New Revenue Guidance on Financial Statement Line Items The following tables compare the reported condensed consolidated balance sheet, statement of operations and cash flows, as of and for the year ended December 31, 2018, to the pro-forma amounts As of December 31, 2018 Balance Sheet As reported Pro forma as if Assets Current assets: Cash and cash equivalents $ 29,306 29,306 Accounts receivable, net 23,264 22,294 Prepaid expenses 4,866 4,866 Other current assets 7,070 1,857 Total current assets 64,506 58,323 Property and equipment, net 9,703 9,703 Intangible assets, net 5,919 5,919 Goodwill 50,776 50,776 Deferred tax asset — — Other assets 2,452 1,004 Total assets $ 133,356 $ 125,725 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 7,712 $ 7,712 Accrued expenses 13,746 13,746 Capital lease liability 236 236 Equipment financing — — Deferred revenue 39,846 38,422 Total current liabilities 61,540 60,116 Deferred revenue, net of current portion 146 146 Deferred tax liability 28 28 Other liabilities 1,028 1,028 Total liabilities 62,742 61,318 Commitments and contingencies Stockholders’ equity: Undesignated preferred stock — — Common stock 37 37 Additional paid-in 251,122 251,122 Treasury stock (871 ) (871 ) Accumulated other comprehensive loss (952 ) (952 ) Accumulated deficit (178,722 ) (184,929 ) Total stockholders’ equity 70,614 64,407 Total liabilities and stockholders’ equity $ 133,356 $ 125,725 Total reported assets were $7,631 greater than the pro-forma balance Total reported liabilities were $1,424 greater than the pro-forma balance The following summarizes the significant changes on the Company’s condensed consolidated statement of operations for the year ended December 31, 2018 as a result of the adoption of ASC 606 on January 1, 2018 compared to if the Company had continued to recognize revenues under ASC 605. Year Ended December 31, 2018 Statement of Operations As reported Pro forma as if the Revenue: Subscription and support revenue $ 150,941 $ 151,116 Professional services and other revenue 13,892 13,892 Total revenue 164,833 165,008 Cost of revenue: Cost of subscription and support revenue 53,311 53,311 Cost of professional services and other revenue 13,313 13,313 Total cost of revenue 66,624 66,624 Gross profit 98,209 98,384 Operating expenses: Research and development 31,716 31,716 Sales and marketing 55,775 56,552 General and administrative 23,103 23,103 Merger-related 716 716 Total operating expenses 111,310 112,087 Loss from operations (13,101 ) (13,703 ) Other income (expense), net (326 ) (326 ) Loss before income taxes (13,427 ) (14,029 ) Provision for income taxes 601 601 Net loss $ (14,028 ) $ (14,630 ) Net loss per share — basic and diluted $ (0.39 ) $ (0.41 ) Weighted-average number of common shares used in computing net loss per share 35,808 35,808 The primary difference in subscription and support revenue relates to the impacts of applying the variable consideration guidance under ASC 606. Under the previous guidance, subscription and support revenue would have been approximately $175 higher, for the year ended December 31, 2018 as revenue for usage based fees, for contracts with annual entitlement allowances, was recognized in the month of such usage. Under ASC 606, usage based fees, for contracts with annual entitlement allowances, are recognized as revenue over the term of the underlying arrangement. Sales and marketing expense, under the previous guidance, would have increased by approximately $777 for the year ended December 31, 2018. Sales and marketing expense would have increased by $777 for the year ended December 31, 2018, due to a portion of the commission payments being recorded immediately to expense at the time a liability was recorded. In addition, certain commission amounts that were amortized to expense over the underlying term of the arrangement are now amortized over the average customer life under ASC 606. The net impact of accounting for revenue under the new guidance decreased net loss per share by $0.02 per basic and diluted share for the year ended December 31, 2018. Year Ended December 31, 2018 Statement of Cash Flows As reported Pro forma as if the Operating activities Net loss $ (14,028 ) $ (14,630 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 6,796 6,796 Stock-based compensation 6,649 6,649 Deferred income taxes 118 118 Provision for reserves on accounts receivable 199 199 Changes in assets and liabilities: Accounts receivable 2,791 2,835 Prepaid expenses and other current assets 294 262 Other assets (536 ) (65 ) Accounts payable 1,197 1,197 Accrued expenses 326 326 Deferred revenue (1,256 ) (1,137 ) Net cash provided by operating activities $ 2,550 $ 2,550 The adoption of ASC 606 had no impact on the Company’s cash flows from operations. The aforementioned impacts resulted in offsetting shifts in cash flows between net loss and various working capital balances. The following summarizes the opening and closing balances of receivables, contract assets and contract liabilities from contracts with customers. Accounts Contract Deferred Deferred (non-current) Total Balance at January 1, 2018 $ 26,162 $ 3,124 $ 40,799 $ 359 $ 41,158 Balance at December 31, 2018 23,264 1,640 39,846 146 39,992 Revenue recognized during the year ended December 31, 2018 from amounts included in deferred revenue at the beginning of the period was approximately $40.5 million. During the year ended December 31, 2018, the Company did not recognize revenue from performance obligations satisfied or partially satisfied in previous periods. The assets recognized for costs to obtain a contract were $5.9 million and $5.4 million as of December 31, 2018 and January 1, 2018, respectively. Amortization expense recognized during the year ended December 31, 2018 related to costs to obtain a contract was $7.2 million. Transaction Price Allocated to Future Performance Obligations ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as December 31, 2018. ASC 606 provides certain practical expedients that limit the requirement to disclose the aggregate amount of transaction price allocated to unsatisfied performance obligations. Subscription and Support Revenue As of December 31, 2018, the total aggregate transaction price allocated to the unsatisfied performance obligations for subscription and support contracts was approximately $109.4 million, of which approximately $90.7 million is expected to be recognized over the next 12 months. The Company expects to recognize substantially all of the remaining unsatisfied performance obligations by the end of 2020. The Company applied the practical expedient to not disclose the amount of transaction price allocated to unsatisfied performance obligations for variable consideration that the Company is able to allocate to one or more of the performance obligations in its contracts. Professional Services The Company applied the practical expedient to not disclose the amount of transaction price allocated to unsatisfied performance obligations when the performance obligation is part of a contract that has an original expected duration of one year or less. The Company does not have material future obligations associated with professional services that extend beyond one year. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 4. Intangible Assets and Goodwill Finite-lived intangible assets consist of the following as of December 31, 2018: Description Weighted Gross Accumulated Net Developed technology 7 $ 14,223 $ 11,082 $ 3,141 Customer relationships 11 6,257 3,479 2,778 Non-compete 3 1,912 1,912 — Tradename 3 368 368 — Total $ 22,760 $ 16,841 $ 5,919 Finite-lived intangible assets consist of the following as of December 31, 2017: Description Weighted Gross Accumulated Net Developed technology 7 $ 14,223 $ 9,431 $ 4,792 Customer relationships 11 6,257 2,813 3,444 Non-compete 3 1,912 1,912 — Tradename 3 368 368 — Total $ 22,760 $ 14,524 $ 8,236 The following table summarizes amortization expense related to intangible assets for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 Cost of subscription and support revenue $ 1,651 $ 2,031 $ 2,031 Research and development — 11 126 Sales and marketing 666 692 959 $ 2,317 $ 2,734 $ 3,116 The estimated remaining amortization expense for each of the five succeeding years and thereafter is as follows: Year Ending December 31, Amount 2019 $ 1,603 2020 1,584 2021 1,328 2022 370 2023 285 2024 and thereafter 749 Total $ 5,919 The carrying amount of goodwill was $50,776 as of December 31, 2018 and 2017. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017: December 31, 2018 Quoted Active Markets for Identical (Level 1) Significant Observable (Level 2) Significant Unobservable (Level 3) Total Assets: Money market funds $ 8,299 $ — $ — $ 8,299 Total assets $ 8,299 $ — $ — $ 8,299 December 31, 2017 Quoted Active Markets for Identical (Level 1) Significant Observable (Level 2) Significant Unobservable (Level 3) Total Assets: Money market funds $ 8,160 $ — $ — $ 8,160 Total assets $ 8,160 $ — $ — $ 8,160 Realized gains and losses from sales of the Company’s investments are included in “Other income (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, 2018 or 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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 2019 $ 6,752 2020 5,355 2021 5,122 2022 2,192 2023 1,108 2024 and thereafter 988 $ 21,517 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 $2.4 million. 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, 2018 and 2017, the Company had deferred rent and rent incentives of $1,264 and $1,464, respectively, of which $876 and $1,102, respectively, is classified as a long-term liability in the accompanying consolidated balance sheets. Rent expense for the years ended December 31, 2018, 2017 and 2016 was $7,857, $6,608 and $6,334, respectively. Income from sublease rental activity amounted to $92, $285 and $219, respectively, for the years ended December 31, 2018, 2017 and 2016. The Company’s existing sublease agreement expired in June 2018, and as of December 31, 2018, the Company was not party to any sublease agreements. Capital Lease Commitments The Company leases certain computer equipment and support under non-cancelable Year Ending December 31, Capital Lease 2019 $ 243 2020 $ 34 Less – interest on capital leases 7 $ 270 At December 31, 2018, total assets under capital leases were $353 and related accumulated amortization was $83. In addition to the operating lease and capital lease commitments discussed above, as of December 31, 2018, the Company had non-cancelable Legal Matters On May 22, 2017, a lawsuit was filed against Brightcove and two individuals by Ooyala, Inc. (“Ooyala”) and Ooyala Mexico S. de R.L. de C.V. (“Ooyala Mexico”). The lawsuit, which was filed in the United States District Court for the District of Massachusetts, concerned allegations that the two individuals, who were former employees of Ooyala Mexico, misappropriated customer information and other trade secrets and used that information in working for Brightcove. The complaint was amended on June 1, 2017 to remove claims against the two former employees of Ooyala Mexico. The remaining claims against Brightcove were for violation of the Defend Trade Secrets Act of 2016 (18 U.S.C. §1836), violation of the Massachusetts trade secret statute (M.G.L. c. 93, §42), violation of Massachusetts Chapter 93A (M.G.L. c. 93A, §11), and tortious interference with advantageous business relationships. Ooyala and Ooyala Mexico also filed a motion for preliminary injunction (amended at the same time the complaint was amended), seeking to enjoin Brightcove from using any of the allegedly misappropriated information or communicating with customers whose information was taken, and seeking the return of any information that was allegedly taken. On June 16, 2017, Brightcove filed an opposition to the motion for preliminary injunction, and also moved to dismiss the lawsuit. The motion to dismiss was denied on September 6, 2017. The court issued a preliminary injunction on July 10, 2018. The injunction required Brightcove to delete any Ooyala confidential information obtained from the former Ooyala employees and prohibited Brightcove from using such information to pursue business with twenty-two On October 26, 2017, Realtime Adaptive Streaming LLC filed a complaint against Brightcove and its subsidiary Brightcove Holdings, Inc. in the United States District Court for the District of Delaware. The complaint alleged that Brightcove infringed five patents related to file compression technology. The complaint sought monetary damages and injunctive relief. On December 1, 2017, Realtime filed an amended complaint, adding two additional patents to its claims. Brightcove filed a motion to dismiss on January 26, 2018. The plaintiff filed an opposition to the motion to dismiss on February 9, 2018 and Brightcove filed a reply on February 16, 2018. A ruling on the motion to dismiss was not issued by the court. On July 31, 2018, Brightcove filed a Motion to Transfer Venue, which motion was opposed by the plaintiff. On October 18, 2018, Brightcove, via its insurer, entered into a Patent License Agreement which provides Brightcove a license to the patents-in-suit one-time On January 30, 2019, Uniloc 2017 LLC filed a complaint against the Company and its subsidiary, Brightcove Holdings, Inc. in the United States District Court for the District of Delaware. The complaint alleges that Brightcove infringed four patents and seeks monetary damages and other relief. 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. 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. 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 claims 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, 2018, 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, 2018 | |
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, 2018 and 2017. Equity Incentive Plans At December 31, 2018, the Company had five 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), the Brightcove Inc. 2014 Stock Option Inducement Plan (the 2014 Stock Inducement Plan), and the 2018 Inducement Plan (the 2018 plan). The 2004 Plan and the 2012 Plan provided for the issuance of incentive and non-qualified The number of shares reserved and available for issuance under the 2012 Plan automatically increases each January 1, beginning in 2013, by 4% of the outstanding number of shares of the Company’s common stock on the immediately preceding December 31 or such lesser number of shares as determined by the Company’s compensation committee subject to an overall overhang limit of 30%. This number is subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. In 2012, the Company adopted the RSU Plan 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 in connection with the Unicorn asset purchase agreement. Effective April 11, 2018, the Company adopted the 2018 Plan. The 2018 Plan provides for the issuance of stock options and restricted stock units to the Company’s Chief Executive Officer (“CEO”). During 2018, the Company granted an aggregate of 1,169,000 restricted stock units to certain key executives, which contain both performance-based and service-based vesting conditions. The Company measures compensation expense for these performance-based awards based upon a review of the Company’s expected achievement against specified financial performance targets. Compensation cost is recognized on a ratable basis over the requisite service period for each series of grants to the extent management has deemed that such awards are probable of vesting based upon the expected achievement against the specified targets. On a periodic basis, management reviews the Company’s expected performance and adjusts the compensation cost, if needed, at such time. At December 31, 2018, 2,105,806 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, 2018: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (1) Outstanding at December 31, 2017 3,924,313 $ 7.33 Granted 1,234,184 8.99 Exercised (1,173,288 ) 4.91 $ 4,897 Cancelled (1,247,554 ) 8.54 Outstanding at December 31, 2018 2,737,655 $ 8.57 6.84 $ 678 Exercisable at December 31, 2018 1,413,875 $ 8.36 4.83 $ 545 (1) 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, 2018 of $7.04 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, 2017 and 2016 was $1,243 and $5,159, 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, 2018: Shares Weighted Average Date Fair Unvested by December 31, 2017 2,218,704 $ 7.44 Granted 2,218,036 8.43 Vested and issued (645,773 ) 7.33 Cancelled (757,385 ) 7.44 Unvested by December 31, 2018 3,033,582 $ 8.07 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. 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, 2018, the Company has reserved the following shares of common stock for future issuance: December 31, Common stock options outstanding 2,737,655 Restricted stock unit awards outstanding 3,033,582 Shares available for issuance under all stock-based compensation plans 2,105,806 Total shares of authorized common stock reserved for future issuance 7,877,043 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Loss before the provision for income taxes consists of the following: Year Ended December 31, 2018 2017 2016 Domestic $ (15,026 ) $ (20,528 ) $ (10,756 ) Foreign 1,599 1,379 1,180 Total $ (13,427 ) $ (19,149 ) $ (9,576 ) The provision for income taxes in the accompanying consolidated financial statements consists of the following: Year Ended December 31, 2018 2017 2016 Current provision: Federal $ — $ — $ — State 19 21 33 Foreign 464 311 424 Total current 483 332 457 Deferred (benefit): Federal — — — State — — — Foreign 118 38 (47 ) Total deferred 118 38 (47 ) Total provision $ 601 $ 370 $ 410 A reconciliation of the U.S. federal statutory rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2018 2017 2016 Tax at statutory rates (21.0 )% (34.0 )% (34.0 )% State income taxes (5.5 ) (4.1 ) (6.1 ) Change in tax rate — 103.9 0.1 Permanent differences 7.0 7.1 11.7 Foreign rate differential 1.4 (0.7 ) (1.1 ) Research and development credits (6.1 ) (3.7 ) (6.7 ) Change in valuation allowance 29.2 (66.3 ) 40.8 Other, net (0.5 ) (0.3 ) (0.4 ) Effective tax rate 4.5 % 1.9 % 4.3 % The income tax effect of each type of temporary difference and carryforward as of December 31, 2018 and 2017 is as follows: As of December 31, 2018 2017 Deferred tax assets: Net operating loss carry-forwards $ 41,440 $ 37,964 Tax credit carry-forwards 10,327 9,173 Stock-based compensation 974 1,856 Fixed Assets 179 267 Account receivable reserves 136 189 Accrued compensation 910 851 Capitalized start-up 92 138 Other temporary differences 325 371 Total deferred tax assets 54,383 50,809 Deferred tax liabilities: Other deferred tax liabilities (1,520 ) — Intangible assets (3,100 ) (3,611 ) Total deferred tax liabilities (4,620 ) (3,611 ) Valuation allowance (49,791 ) (47,111 ) Net deferred tax asset (liability) $ (28 ) $ 87 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, 2018 and 2017, 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 2017 to 2018 of $2.7 million principally relates to the current year taxable loss. The Company maintains net deferred tax liabilities for temporary differences related to its foreign subsidiaries. As of December 31, 2018, the Company had federal and state net operating losses of approximately $161.8 million and $76.8 million, respectively, which are available to offset future taxable income, if any, through 2038. The Company had federal and state net operating losses of approximately $13.8 million and $0.7 million, respectively, which are available to offset future taxable income, if any, indefinitely. The Company also had federal and state research and development tax credits of $6.9 million and $4.4 million, respectively, which expire in various amounts through 2038. The net operating loss and tax credit amounts are subject to annual limitations under Section 382 change of ownership rules under the U.S. Internal Revenue Code of 1986, as amended. This could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company has not conducted an assessment to determine whether there may have been a Section 382 ownership change from June 30, 2014, the date of the most recent completed study, through December 31, 2018. If a change in ownership were to have occurred during that period, and resulted in the restriction of net operating loss and tax credit carryforwards, the reduction in the related deferred tax asset would be offset with a corresponding reduction in the valuation allowance. On January 1, 2009, the Company adopted the provision for uncertain tax positions under ASC 740, Income Taxes At December 31, 2018 and 2017, 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 2015 through 2018. 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. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted in the United States. The Act reduces the U.S. federal corporate tax rate from 34% to 21%, requires companies to pay a one-time As of December 31, 2018, the Company had completed its accounting for all of the tax effects of the enactment of the Act, including the effects on its existing deferred tax balances and the one-time No additional U.S. income taxes or foreign withholding taxes have been provided for any additional outside basis differences inherent in the Company’s foreign entities as these amounts continue to be indefinitely reinvested in foreign operations based on management’s current intentions. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities (i.e., basis difference in excess of that subject to the one-time |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt On December 14, 2018, we entered into an amended and restated loan and security agreement with a lender (the “Loan Agreement”) providing for up to a $30.0 million asset based line of credit (the “Line of Credit”). Under the Line of Credit, we can borrow up to $30.0 million. Borrowings under the Line of Credit are secured by substantially all of our assets, excluding our intellectual property. Outstanding amounts under the Line of Credit accrue interest at a rate as follows; (i) for prime rate advances, the greater of (A) the prime rate and (B) 4%, and (ii) for LIBOR advances, the greater of (A) the LIBOR rate plus 225 basis points (the “LIBOR rate margin”) and (B) 4%. Under the Loan Agreement, we must comply with certain financial covenants, including maintaining a minimum asset coverage ratio. If the outstanding principal during any month is at least $15.0 million, the Company must also maintain a minimum net income threshold based on non-GAAP operating |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 10. Accrued Expenses Accrued expenses consist of the following: December 31, 2018 2017 Accrued payroll and related benefits $ 4,777 $ 4,436 Accrued sales and other taxes 1,639 1,363 Accrued professional fees and outside contractors 1,253 2,021 Accrued content delivery 2,979 2,390 Accrued other liabilities 3,098 3,411 Total $ 13,746 $ 13,621 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Revenue: North America $ 88,778 $ 91,358 $ 92,912 Europe 27,754 24,425 25,196 Japan 21,960 16,881 15,230 Asia Pacific 25,766 22,539 15,617 Other 575 710 1,311 Total revenue $ 164,833 $ 155,913 $ 150,266 North America is comprised of revenue from the United States, Canada and Mexico. Revenue from customers located in the United States was $83,435, $85,459 and $87,302 during the years ended December 31, 2018, 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 years ended December 31, 2018 and 2017. As of December 31, 2018 and December 31, 2017, 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, 2018 | |
Retirement Benefits [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, 2018, 2017 and 2016, the Company has made contributions to the plan of $424, $425 and $336, respectively. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 13. Quarterly Financial Data (unaudited) The following table presents certain unaudited quarterly financial information for the eight quarters in the period ended December 31, 2018. This information has been prepared on the same basis as the audited financial statements and includes all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the unaudited quarterly results of operations set forth herein. For the three months ended: Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Revenue $ 40,864 $ 41,121 $ 41,654 $ 41,194 $ 40,101 $ 39,487 $ 38,753 $ 37,572 Gross profit 24,387 24,803 25,036 23,983 23,783 22,983 22,175 22,354 Loss from operations (2,527 ) (3,141 ) (5,017 ) (2,416 ) (1,331 ) (5,349 ) (7,884 ) (5,132 ) Net loss (2,617 ) (3,502 ) (5,652 ) (2,257 ) (1,372 ) (5,396 ) (7,678 ) (5,073 ) Basic and diluted net loss per share (0.07 ) (0.10 ) (0.16 ) (0.06 ) (0.04 ) (0.16 ) (0.22 ) (0.15 ) |
Business Description (Policies)
Business Description (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Business Description | Brightcove Inc. (the Company) is a 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. |
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, contingent liabilities, intangible asset valuations, amortization periods, expected future cash flows used to evaluate the recoverability of long-lived assets, the determination of the fair value of stock awards issued, and the recoverability of the Company’s deferred tax assets and related valuation allowance. 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, other than as reported herein and described below, there are no material recognized or unrecognized subsequent events. On February 13, 2019, the Company entered into a definitive agreement to acquire a significant portion of the assets of Ooyala, Inc. and certain of its subsidiaries, or “Ooyala”, a provider of cloud video ad insertion technology, in exchange for 1,056,763 unregistered shares of common stock of Brightcove Inc. and approximately $6.25 million of cash, which includes up to $500 as a reimbursement of Ooyala’s audit fees incurred in connection with the transaction. Pursuant to the purchase agreement, approximately $2.65 million of the cash will be placed into an escrow account to settle certain claims for indemnification for breaches or inaccuracies in Ooyala’s representations and warranties, covenants, and agreements. The escrow amount is the equivalent of 18% of the purchase price, and this amount will remain in escrow for 20 months. The expected acquisition will be accounted for as a purchase transaction, and as such the results of operations from the acquired assets will be consolidated with the Company beginning on the closing date of the acquisition. In connection with the acquisition of Ooyala, the Company incurred $716 of merger-related costs during 2018, which the Company recorded as an expense in its consolidated statements of operations for the year ended December 31, 2018. At this time, the Company has not completed its evaluation of the purchase accounting related to this transaction. |
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, 2018 and 2017 consist of the following: December 31, 2018 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Cash Demand $ 21,007 $ 21,007 $ 21,007 Money market funds Demand 8,299 8,299 8,299 Total cash and cash equivalents $ 29,306 $ 29,306 $ 29,306 December 31, 2017 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Cash Demand $ 17,972 $ 17,972 $ 17,972 Money market funds Demand 8,160 8,160 8,160 Total cash and cash equivalents $ 26,132 $ 26,132 $ 26,132 |
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, 2018 and 2017, 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 | Revenue The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers |
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, 2018, 2017 and 2016: Balance at Provision Write-offs Balance at Year ended December 31, 2018 $ 146 $ 199 $ (155 ) $ 190 Year ended December 31, 2017 154 203 (211 ) 146 Year ended December 31, 2016 332 230 (408 ) 154 |
Off-Balance Sheet Risk and Concentration of Credit Risk | Off-Balance The Company has no significant off-balance For the years ended December 31, 2018, 2017 and 2016, no individual customer accounted for more than 10% of total revenue. As of December 31, 2018 and 2017, no individual customer accounted for more than 10% of accounts receivable, net. |
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, 2018, 2017 and 2016, the Company capitalized $3,152, $3,239 and $4,038, 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, 2018 2017 Computer equipment 3 $ 14,076 $ 17,157 Software 3 - 6 21,208 17,996 Furniture and fixtures 5 2,929 2,396 Leasehold improvements Shorter of lease 1,665 1,366 39,878 38,915 Less accumulated depreciation and amortization 30,175 29,772 $ 9,703 $ 9,143 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. |
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, 2018, 2017 and 2016, 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. Conditions that could trigger a more frequent impairment assessment include, but are not limited to, a significant adverse change in certain agreements, significant underperformance relative to historical or projected future operating results, an economic downturn in customers’ industries, increased competition, a significant reduction in our stock price for a sustained period or a reduction of our market capitalization relative to net book value. The Company has determined, based on its organizational structure, that it had one reporting unit as of December 31, 2018 and 2017. The Company evaluates impairment by comparing the estimated fair value of its reporting unit to its carrying value. The Company estimates fair value primarily utilizing the market approach, which calculates fair value based on the market values of comparable companies or comparable transactions. The Company adopted ASU 2017-04 |
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 outstanding common shares have been excluded from the computation of dilutive net loss per share as of December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 Options outstanding 2,738 4,127 4,291 Restricted stock units outstanding 3,034 2,050 1,668 Warrants — — 19 |
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, 2018, the Company had five stock-based compensation plans, which are more fully described in Note 7. The Company values its shares of common stock in connection with the issuance of stock-based equity awards using the closing price of the Company’s shares of common stock on the NASDAQ Global Market on the date of the grant. Accounting guidance requires employee stock-based payments to be accounted for under the fair value method. Under this method, the Company is required to record compensation cost based on the estimated fair value for stock-based awards granted over the requisite service periods for the individual awards, which generally equals the vesting periods. The Company uses the straight-line amortization method for recognizing stock-based compensation expense associated with equity awards to employees. 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. For service-based options, the Company recognizes compensation expense on a straight-line basis over the requisite service period of the award. 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. The expected volatility of options granted has been determined using a weighted-average of the historical volatility measures of a peer group of companies that issued options with substantially similar terms 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. The weighted-average fair value of options granted during the years ended December 31, 2018, 2017 and 2016, was $4.11, $3.08 and $4.01 per share, respectively. The weighted-average assumptions utilized to determine such values are presented in the following table: Year Ended December 31, 2018 2017 2016 Risk-free interest rate 2.88 % 2.08 % 1.75 % Expected volatility 43 % 42 % 45 % Expected life (in years) 6.2 6.1 6.2 Expected dividend yield — — — 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. For performance-based awards with service-based vesting conditions, the Company recognizes compensation expense based upon a review of the Company’s expected achievement against the specified targets. As of December 31, 2018, there was $16,967 of total unrecognized stock-based compensation expense related to stock-based awards that is expected to be recognized over a weighted-average period of 2.77 years. The following table summarizes stock-based compensation expense as included in the consolidated statement of operations for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 Cost of subscription and support revenue $ 481 $ 439 $ 324 Cost of professional services and other revenue 242 251 217 Research and development 1,281 1,563 1,275 Sales and marketing 2,377 2,750 2,320 General and administrative 2,268 2,240 1,876 $ 6,649 $ 7,243 $ 6,012 Upon the adoption of ASU 2016-09 2016-09, For the years ended December 31, 2018, 2017 and 2016, stock-based compensation expense for stock options granted to non-employees 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, 2018. |
Advertising Costs | Advertising Costs Advertising costs are charged to operations as incurred. The Company incurred advertising costs of $2,657, $2,485 and $2,137 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Recent Accounting Pronouncements and Standards | Recent Accounting Pronouncements and Standards Recently Issued Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification leases. ASU 2016-02 ASU 2016-02, ASU 2016-02 ASU 2018-11, Leases (Topic 842), Targeted Improvements, ASU 2016-02. ASU 2018-11. Recently Adopted Accounting Standards In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments, ASU 2016-15 is of ASU 2016-15 did not In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash flows. ASU 2016-18 is in ASU 2016-18 using a of ASU 2016-18 did not In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business ASU 2017-01 did not In May 2017 the FASB issued ASU 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting ASU 2017-09 ASU 2017-09 is ASU 2017-09 did On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted in the United States. The Act reduces the U.S. federal corporate tax rate from 34% to 21%, requires companies to pay a one-time Income Tax Accounting Implications of the Tax Cuts and Jobs Act one-time Income Taxes The Company has taken into consideration the other impacts of the Act that became effective in 2018, including the provisions related to Global Intangible Low Taxed Income (“GILTI”), Foreign Derived Intangible Income, Base Erosion Anti-Abuse Tax, as well as other provisions which would limit the deductibility of future expenses. Interpretive guidance on the accounting for GILTI states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. For the year ended December 31, 2018, the Company made the accounting policy election to recognize GILTI as a period expense. |
Accounting Standards Update 2014-09 [Member] | |
Revenue | In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers cumulative catch-up adjustment to Revenue Recognition cumulative catch-up 1) Identify the contract with a customer 2) Identify the performance obligations in the contract 3) Determine the transaction price 4) Allocate the transaction price to performance obligations in the contract 5) Recognize revenue when or as the Company satisfies a performance obligation |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents as of December 31, 2018 and 2017 consist of the following: December 31, 2018 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Cash Demand $ 21,007 $ 21,007 $ 21,007 Money market funds Demand 8,299 8,299 8,299 Total cash and cash equivalents $ 29,306 $ 29,306 $ 29,306 December 31, 2017 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Cash Demand $ 17,972 $ 17,972 $ 17,972 Money market funds Demand 8,160 8,160 8,160 Total cash and cash equivalents $ 26,132 $ 26,132 $ 26,132 |
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, 2018, 2017 and 2016: Balance at Provision Write-offs Balance at Year ended December 31, 2018 $ 146 $ 199 $ (155 ) $ 190 Year ended December 31, 2017 154 203 (211 ) 146 Year ended December 31, 2016 332 230 (408 ) 154 |
Property and Equipment | Property and equipment consists of the following: Estimated Useful Life (in Years) December 31, 2018 2017 Computer equipment 3 $ 14,076 $ 17,157 Software 3 - 6 21,208 17,996 Furniture and fixtures 5 2,929 2,396 Leasehold improvements Shorter of lease 1,665 1,366 39,878 38,915 Less accumulated depreciation and amortization 30,175 29,772 $ 9,703 $ 9,143 |
Oustanding Common Shares Excluded from Computation of Dilutive Net Loss per Share | The following outstanding common shares have been excluded from the computation of dilutive net loss per share as of December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 Options outstanding 2,738 4,127 4,291 Restricted stock units outstanding 3,034 2,050 1,668 Warrants — — 19 |
Weighted Average Assumptions Utilized | The weighted-average fair value of options granted during the years ended December 31, 2018, 2017 and 2016, was $4.11, $3.08 and $4.10 per share, respectively. The weighted-average assumptions utilized to determine such values are presented in the following table: Year Ended December 31, 2018 2017 2016 Risk-free interest rate 2.88 % 2.08 % 1.75 % Expected volatility 43 % 42 % 45 % Expected life (in years) 6.2 6.1 6.2 Expected dividend yield — — — |
Summary of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense as included in the consolidated statement of operations for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 Cost of subscription and support revenue $ 481 $ 439 $ 324 Cost of professional services and other revenue 242 251 217 Research and development 1,281 1,563 1,275 Sales and marketing 2,377 2,750 2,320 General and administrative 2,268 2,240 1,876 $ 6,649 $ 7,243 $ 6,012 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Revenue from Contracts with Customers by Business Unit | The following table summarizes revenue from contracts with customers by business unit for the years ended December 31, 2018, 2017 and 2016. Year Ended December 31, 2018 2017 2016 Revenue by Business Unit Media $ 88,748 $ 85,562 $ 84,380 Enterprise 71,537 64,742 58,460 Volume 4,548 5,609 7,426 Total 164,833 155,913 150,266 |
Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers | The following summarizes the opening and closing balances of receivables, contract assets and contract liabilities from contracts with customers. Accounts Contract Deferred Deferred (non-current) Total Balance at January 1, 2018 $ 26,162 $ 3,124 $ 40,799 $ 359 $ 41,158 Balance at December 31, 2018 23,264 1,640 39,846 146 39,992 |
Balance Sheet [Member] | |
Schedule of Changes in Condensed Consolidated Financial Statement | As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made on the condensed consolidated balance sheet as of January 1, 2018. As Reported Adjustments Adjusted December 31, Subscription Costs to January 1, Assets Current assets: Cash and cash equivalents $ 26,132 $ 26,132 Accounts receivable, net 25,236 926 26,162 Prepaid expenses 3,991 3,991 Other current assets 3,045 1,861 3,384 8,290 Total current assets 58,404 2,787 3,384 64,575 Property and equipment, net 9,143 9,143 Intangible assets, net 8,236 8,236 Goodwill 50,776 50,776 Deferred tax asset 87 87 Other assets 969 978 1,947 Total assets $ 127,615 $ 2,787 $ 4,362 $ 134,764 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 6,142 $ 6,142 Accrued expenses 13,621 13,621 Capital lease liability 228 228 Equipment financing 26 26 Deferred revenue 39,370 1,429 40,799 Total current liabilities 59,387 1,429 — 60,816 Deferred revenue, net of current portion 244 115 359 Other liabilities 1,228 1,228 Total liabilities 60,859 1,544 — 62,403 Commitments and contingencies Stockholders’ equity: Undesignated preferred stock — — Common stock 35 35 Additional paid-in 238,700 238,700 Treasury stock (871 ) (871 ) Accumulated other comprehensive loss (809 ) (809 ) Accumulated deficit (170,299 ) 1,243 4,362 (164,694 ) Total stockholders’ equity 66,756 1,243 4,362 72,361 Total liabilities and stockholders’ equity $ 127,615 $ 2,787 $ 4,362 $ 134,764 The following tables compare the reported condensed consolidated balance sheet, statement of operations and cash flows, as of and for the year ended December 31, 2018, to the pro-forma amounts As of December 31, 2018 Balance Sheet As reported Pro forma as if Assets Current assets: Cash and cash equivalents $ 29,306 29,306 Accounts receivable, net 23,264 22,294 Prepaid expenses 4,866 4,866 Other current assets 7,070 1,857 Total current assets 64,506 58,323 Property and equipment, net 9,703 9,703 Intangible assets, net 5,919 5,919 Goodwill 50,776 50,776 Deferred tax asset — — Other assets 2,452 1,004 Total assets $ 133,356 $ 125,725 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 7,712 $ 7,712 Accrued expenses 13,746 13,746 Capital lease liability 236 236 Equipment financing — — Deferred revenue 39,846 38,422 Total current liabilities 61,540 60,116 Deferred revenue, net of current portion 146 146 Deferred tax liability 28 28 Other liabilities 1,028 1,028 Total liabilities 62,742 61,318 Commitments and contingencies Stockholders’ equity: Undesignated preferred stock — — Common stock 37 37 Additional paid-in 251,122 251,122 Treasury stock (871 ) (871 ) Accumulated other comprehensive loss (952 ) (952 ) Accumulated deficit (178,722 ) (184,929 ) Total stockholders’ equity 70,614 64,407 Total liabilities and stockholders’ equity $ 133,356 $ 125,725 |
Statements of Operations [Member] | |
Schedule of Changes in Condensed Consolidated Financial Statement | The following summarizes the significant changes on the Company’s condensed consolidated statement of operations for the year ended December 31, 2018 as a result of the adoption of ASC 606 on January 1, 2018 compared to if the Company had continued to recognize revenues under ASC 605. Year Ended December 31, 2018 Statement of Operations As reported Pro forma as if the Revenue: Subscription and support revenue $ 150,941 $ 151,116 Professional services and other revenue 13,892 13,892 Total revenue 164,833 165,008 Cost of revenue: Cost of subscription and support revenue 53,311 53,311 Cost of professional services and other revenue 13,313 13,313 Total cost of revenue 66,624 66,624 Gross profit 98,209 98,384 Operating expenses: Research and development 31,716 31,716 Sales and marketing 55,775 56,552 General and administrative 23,103 23,103 Merger-related 716 716 Total operating expenses 111,310 112,087 Loss from operations (13,101 ) (13,703 ) Other income (expense), net (326 ) (326 ) Loss before income taxes (13,427 ) (14,029 ) Provision for income taxes 601 601 Net loss $ (14,028 ) $ (14,630 ) Net loss per share — basic and diluted $ (0.39 ) $ (0.41 ) Weighted-average number of common shares used in computing net loss per share 35,808 35,808 |
Cash Flow Statement [Member] | |
Schedule of Changes in Condensed Consolidated Financial Statement | The net impact of accounting for revenue under the new guidance decreased net loss per share by $0.02 per basic and diluted share for the year ended December 31, 2018. Year Ended December 31, 2018 Statement of Cash Flows As reported Pro forma as if the Operating activities Net loss $ (14,028 ) $ (14,630 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 6,796 6,796 Stock-based compensation 6,649 6,649 Deferred income taxes 118 118 Provision for reserves on accounts receivable 199 199 Changes in assets and liabilities: Accounts receivable 2,791 2,835 Prepaid expenses and other current assets 294 262 Other assets (536 ) (65 ) Accounts payable 1,197 1,197 Accrued expenses 326 326 Deferred revenue (1,256 ) (1,137 ) Net cash provided by operating activities $ 2,550 $ 2,550 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite Lived Intangible Assets | Finite-lived intangible assets consist of the following as of December 31, 2018: Description Weighted Gross Accumulated Net Developed technology 7 $ 14,223 $ 11,082 $ 3,141 Customer relationships 11 6,257 3,479 2,778 Non-compete 3 1,912 1,912 — Tradename 3 368 368 — Total $ 22,760 $ 16,841 $ 5,919 Finite-lived intangible assets consist of the following as of December 31, 2017: Description Weighted Gross Accumulated Net Developed technology 7 $ 14,223 $ 9,431 $ 4,792 Customer relationships 11 6,257 2,813 3,444 Non-compete 3 1,912 1,912 — Tradename 3 368 368 — Total $ 22,760 $ 14,524 $ 8,236 |
Amortization Expense Related to Intangible Assets | The following table summarizes amortization expense related to intangible assets for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 Cost of subscription and support revenue $ 1,651 $ 2,031 $ 2,031 Research and development — 11 126 Sales and marketing 666 692 959 $ 2,317 $ 2,734 $ 3,116 |
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 2019 $ 1,603 2020 1,584 2021 1,328 2022 370 2023 285 2024 and thereafter 749 Total $ 5,919 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017: December 31, 2018 Quoted Active Markets for Identical (Level 1) Significant Observable (Level 2) Significant Unobservable (Level 3) Total Assets: Money market funds $ 8,299 $ — $ — $ 8,299 Total assets $ 8,299 $ — $ — $ 8,299 December 31, 2017 Quoted Active Markets for Identical (Level 1) Significant Observable (Level 2) Significant Unobservable (Level 3) Total Assets: Money market funds $ 8,160 $ — $ — $ 8,160 Total assets $ 8,160 $ — $ — $ 8,160 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Commitments Under Operating Leases | Future minimum rental commitments under operating leases at December 31, 2018 are as follows: Year Ending December 31, Operating 2019 $ 6,752 2020 5,355 2021 5,122 2022 2,192 2023 1,108 2024 and thereafter 988 $ 21,517 |
Future Minimum Rental Commitments Under Capital Leases | Future minimum rental commitments under capital leases at December 31, 2018 are as follows: Year Ending December 31, Capital Lease 2019 $ 243 2020 $ 34 Less – interest on capital leases 7 $ 270 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (1) Outstanding at December 31, 2017 3,924,313 $ 7.33 Granted 1,234,184 8.99 Exercised (1,173,288 ) 4.91 $ 4,897 Cancelled (1,247,554 ) 8.54 Outstanding at December 31, 2018 2,737,655 $ 8.57 6.84 $ 678 Exercisable at December 31, 2018 1,413,875 $ 8.36 4.83 $ 545 (1) 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, 2018 of $7.04 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, 2018: Shares Weighted Average Date Fair Unvested by December 31, 2017 2,218,704 $ 7.44 Granted 2,218,036 8.43 Vested and issued (645,773 ) 7.33 Cancelled (757,385 ) 7.44 Unvested by December 31, 2018 3,033,582 $ 8.07 |
Schedule of Shares of Common Stock Reserved for Future Issuance | At December 31, 2018, the Company has reserved the following shares of common stock for future issuance: December 31, Common stock options outstanding 2,737,655 Restricted stock unit awards outstanding 3,033,582 Shares available for issuance under all stock-based compensation plans 2,105,806 Total shares of authorized common stock reserved for future issuance 7,877,043 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Domestic $ (15,026 ) $ (20,528 ) $ (10,756 ) Foreign 1,599 1,379 1,180 Total $ (13,427 ) $ (19,149 ) $ (9,576 ) |
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, 2018 2017 2016 Current provision: Federal $ — $ — $ — State 19 21 33 Foreign 464 311 424 Total current 483 332 457 Deferred (benefit): Federal — — — State — — — Foreign 118 38 (47 ) Total deferred 118 38 (47 ) Total provision $ 601 $ 370 $ 410 |
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, 2018 2017 2016 Tax at statutory rates (21.0 )% (34.0 )% (34.0 )% State income taxes (5.5 ) (4.1 ) (6.1 ) Change in tax rate — 103.9 0.1 Permanent differences 7.0 7.1 11.7 Foreign rate differential 1.4 (0.7 ) (1.1 ) Research and development credits (6.1 ) (3.7 ) (6.7 ) Change in valuation allowance 29.2 (66.3 ) 40.8 Other, net (0.5 ) (0.3 ) (0.4 ) Effective tax rate 4.5 % 1.9 % 4.3 % |
Schedule of Income Tax Effect of Each Type of Temporary Difference and Carryforward | The income tax effect of each type of temporary difference and carryforward as of December 31, 2018 and 2017 is as follows: As of December 31, 2018 2017 Deferred tax assets: Net operating loss carry-forwards $ 41,440 $ 37,964 Tax credit carry-forwards 10,327 9,173 Stock-based compensation 974 1,856 Fixed Assets 179 267 Account receivable reserves 136 189 Accrued compensation 910 851 Capitalized start-up 92 138 Other temporary differences 325 371 Total deferred tax assets 54,383 50,809 Deferred tax liabilities: Other deferred tax liabilities (1,520 ) — Intangible assets (3,100 ) (3,611 ) Total deferred tax liabilities (4,620 ) (3,611 ) Valuation allowance (49,791 ) (47,111 ) Net deferred tax asset (liability) $ (28 ) $ 87 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses | Accrued expenses consist of the following: December 31, 2018 2017 Accrued payroll and related benefits $ 4,777 $ 4,436 Accrued sales and other taxes 1,639 1,363 Accrued professional fees and outside contractors 1,253 2,021 Accrued content delivery 2,979 2,390 Accrued other liabilities 3,098 3,411 Total $ 13,746 $ 13,621 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Revenue: North America $ 88,778 $ 91,358 $ 92,912 Europe 27,754 24,425 25,196 Japan 21,960 16,881 15,230 Asia Pacific 25,766 22,539 15,617 Other 575 710 1,311 Total revenue $ 164,833 $ 155,913 $ 150,266 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | The following table presents certain unaudited quarterly financial information for the eight quarters in the period ended December 31, 2018. This information has been prepared on the same basis as the audited financial statements and includes all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the unaudited quarterly results of operations set forth herein. For the three months ended: Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Revenue $ 40,864 $ 41,121 $ 41,654 $ 41,194 $ 40,101 $ 39,487 $ 38,753 $ 37,572 Gross profit 24,387 24,803 25,036 23,983 23,783 22,983 22,175 22,354 Loss from operations (2,527 ) (3,141 ) (5,017 ) (2,416 ) (1,331 ) (5,349 ) (7,884 ) (5,132 ) Net loss (2,617 ) (3,502 ) (5,652 ) (2,257 ) (1,372 ) (5,396 ) (7,678 ) (5,073 ) Basic and diluted net loss per share (0.07 ) (0.10 ) (0.16 ) (0.06 ) (0.04 ) (0.16 ) (0.22 ) (0.15 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | Feb. 13, 2019USD ($)shares | Dec. 31, 2018USD ($)Customer$ / sharesPlans | Dec. 31, 2017USD ($)Customer$ / shares | Dec. 31, 2016USD ($)Customer$ / shares |
Accounting Policies [Line Items] | ||||
Merger-related costs | $ 716,000 | $ 21,000 | ||
Short-term investments | 0 | $ 0 | ||
Long-term investments | $ 0 | $ 0 | ||
Number of customers accounted for more than 10% of total revenue | Customer | 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 | ||
Capitalized software development costs | $ 3,152,000 | $ 3,239,000 | $ 4,038,000 | |
Amortization of capitalized internal-use software development costs | 2,962,000 | 1,867,000 | 690,000 | |
Depreciation and amortization, expense | 4,479,000 | 4,523,000 | $ 4,860,000 | |
Recorded liabilities for uncertain tax position | $ 0 | $ 0 | ||
Number of stock-based compensation plans | Plans | 5 | |||
Expected dividend yield | $ 0 | |||
Weighted-average fair value of options granted | $ / shares | $ 4.11 | $ 3.08 | $ 4.01 | |
Unrecognized stock-based compensation expense | $ 16,967,000 | |||
Unrecognized compensation cost, recognition period | 2 years 9 months 7 days | |||
Advertising costs | $ 2,657,000 | $ 2,485,000 | $ 2,137,000 | |
Federal corporate tax rate | 21.00% | 34.00% | 34.00% | |
Ooyala [Member] | Subsequent Event [Member] | ||||
Accounting Policies [Line Items] | ||||
Unregistered shares of common stock | shares | 1,056,763 | |||
Business combination, cash payment | $ 6,250,000 | |||
Business combination, remaining cash payment | $ 2,650,000 | |||
Business combination, percentage of purchase price | 18.00% | |||
Business combination, purchase price to be in escrow remaining month | 20 months | |||
Ooyala [Member] | Subsequent Event [Member] | Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Reimbursement of audit fees | $ 500,000 | |||
Unicorn [Member] | ||||
Accounting Policies [Line Items] | ||||
Merger-related costs | $ 716,000 | |||
Software [Member] | ||||
Accounting Policies [Line Items] | ||||
Estimated Useful Life (in Years) | 3 years | |||
Software [Member] | Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Estimated Useful Life (in Years) | 6 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investment Holdings [Line Items] | ||
Amortized Cost | $ 29,306 | $ 26,132 |
Fair Market Value | 29,306 | 26,132 |
Balance Per Balance Sheet | 29,306 | 26,132 |
Cash [Member] | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 21,007 | 17,972 |
Fair Market Value | 21,007 | 17,972 |
Balance Per Balance Sheet | 21,007 | 17,972 |
Money Market Funds [Member] | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 8,299 | 8,160 |
Fair Market Value | 8,299 | 8,160 |
Balance Per Balance Sheet | $ 8,299 | $ 8,160 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Changes in Company's Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Balance at Beginning of Period | $ 146 | $ 154 | $ 332 |
Provision | 199 | 203 | 230 |
Write-offs | (155) | (211) | (408) |
Balance at End of Period | $ 190 | $ 146 | $ 154 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 39,878 | $ 38,915 |
Less accumulated depreciation and amortization | 30,175 | 29,772 |
Property and equipment, net | $ 9,703 | 9,143 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in Years) | 3 years | |
Property and equipment, gross | $ 14,076 | 17,157 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in Years) | 3 years | |
Property and equipment, gross | $ 21,208 | 17,996 |
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 | $ 2,929 | 2,396 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,665 | $ 1,366 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Outstanding Common Shares Excluded from Computation of Dilutive Net Loss per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 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 | 2,738 | 4,127 | 4,291 |
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 | 3,034 | 2,050 | 1,668 |
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 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Weighted Average Assumptions Utilized (Detail) - Stock Compensation Plan [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.88% | 2.08% | 1.75% |
Expected volatility | 43.00% | 42.00% | 45.00% |
Expected life (in years) | 6 years 2 months 12 days | 6 years 1 month 6 days | 6 years 2 months 12 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summarizes Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 6,649 | $ 7,243 | $ 6,012 |
Subscription and Support Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 481 | 439 | 324 |
Professional Services and Other Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 242 | 251 | 217 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 1,281 | 1,563 | 1,275 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 2,377 | 2,750 | 2,320 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 2,268 | $ 2,240 | $ 1,876 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Revenue from Contracts with Customers by Business Unit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue by Business Unit | |||||||||||
Revenues | $ 40,864 | $ 41,121 | $ 41,654 | $ 41,194 | $ 40,101 | $ 39,487 | $ 38,753 | $ 37,572 | $ 164,833 | $ 155,913 | $ 150,266 |
Media [Member] | |||||||||||
Revenue by Business Unit | |||||||||||
Revenues | 88,748 | 85,562 | 84,380 | ||||||||
Enterprise [Member] | |||||||||||
Revenue by Business Unit | |||||||||||
Revenues | 71,537 | 64,742 | 58,460 | ||||||||
Volume [Member] | |||||||||||
Revenue by Business Unit | |||||||||||
Revenues | $ 4,548 | $ 5,609 | $ 7,426 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2018 | Jan. 01, 2018 |
Total reported assets | $ 127,615,000 | $ 133,356,000 | |
Total reported liabilities | 60,859,000 | 62,742,000 | |
Deferred revenue recognized | $ 40,500,000 | 0 | |
Assets recognized to obtain a contract | 5,900,000 | $ 5,400,000 | |
Amortization expense recognized to obtain a contract | $ 7,200,000 | ||
Professional Services [Member] | Maximum [Member] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | ||
Subscription and Support Revenue [Member] | |||
Revenue, performance obligation, description of timing | 2,020 | ||
Unsatisfied performance obligations | $ 109,400,000 | ||
Subscription and Support Revenue [Member] | Next Twelve Months [Member] | |||
Unsatisfied performance obligations | $ 90,700,000 | ||
Accounting Standards Update 2014-09 [Member] | |||
Subscription term for premium customers | 1 year | ||
Reduced accumulated deficit | $ 5,605,000 | ||
Total reported assets | 133,356,000 | 134,764,000 | |
Total reported liabilities | $ 62,742,000 | 62,403,000 | |
Net impact of accounting for revenue, basic and diluted | $ 0.02 | ||
Accounting Standards Update 2014-09 [Member] | Pro Forma [Member] | |||
Total reported assets | $ 125,725,000 | ||
Total reported liabilities | 61,318,000 | ||
Accounting Standards Update 2014-09 [Member] | Minimum [Member] | Pro Forma [Member] | |||
Total reported assets | 7,631,000 | ||
Total reported liabilities | 1,424,000 | ||
Accounting Standards Update 2014-09 [Member] | Accumulated Deficit [Member] | |||
Reduced accumulated deficit | 5,605,000 | $ (1,243,000) | |
Accounting Standards Update 2014-09 [Member] | Sales and Marketing [Member] | |||
New accounting pronouncement or change in accounting principle, effect of change on operating results | 777,000 | ||
Accounting Standards Update 2014-09 [Member] | Subscription Arrangement [Member] | |||
New accounting pronouncement or change in accounting principle, effect of change on operating results | 175,000 | ||
Accounting Standards Update 2014-09 [Member] | Costs to Obtain Contract [Member] | |||
Reduced accumulated deficit | $ (4,362,000) |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Changes in Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | |||||
Cash and cash equivalents | $ 29,306 | $ 26,132 | $ 36,813 | $ 27,637 | |
Accounts receivable, net | 23,264 | 25,236 | |||
Prepaid expenses | 4,866 | 3,991 | |||
Other current assets | 7,070 | 3,045 | |||
Total current assets | 64,506 | 58,404 | |||
Property and equipment, net | 9,703 | 9,143 | |||
Intangible assets, net | 5,919 | 8,236 | |||
Goodwill | 50,776 | 50,776 | |||
Deferred tax asset | 87 | ||||
Other assets | 2,452 | 969 | |||
Total assets | 133,356 | 127,615 | |||
Current liabilities: | |||||
Accounts payable | 7,712 | 6,142 | |||
Accrued expenses | 13,746 | 13,621 | |||
Capital lease liability | 236 | 228 | |||
Equipment financing | 26 | ||||
Deferred revenue | 39,846 | 39,370 | |||
Total current liabilities | 61,540 | 59,387 | |||
Deferred revenue, net of current portion | 146 | 244 | |||
Deferred tax liability | 28 | ||||
Other liabilities | 1,028 | 1,228 | |||
Total liabilities | 62,742 | 60,859 | |||
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Undesignated preferred stock | |||||
Common stock | 37 | 35 | |||
Additional paid-in capital | 251,122 | 238,700 | |||
Treasury stock | (871) | (871) | |||
Accumulated other comprehensive loss | (952) | (809) | |||
Accumulated deficit | (178,722) | (170,299) | |||
Total stockholders' equity | 70,614 | 66,756 | $ 78,196 | $ 78,135 | |
Total liabilities and stockholders' equity | 133,356 | $ 127,615 | |||
Accounting Standards Update 2014-09 [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 29,306 | $ 26,132 | |||
Accounts receivable, net | 23,264 | 26,162 | |||
Prepaid expenses | 4,866 | 3,991 | |||
Other current assets | 7,070 | 8,290 | |||
Total current assets | 64,506 | 64,575 | |||
Property and equipment, net | 9,703 | 9,143 | |||
Intangible assets, net | 5,919 | 8,236 | |||
Goodwill | 50,776 | 50,776 | |||
Deferred tax asset | 87 | ||||
Other assets | 2,452 | 1,947 | |||
Total assets | 133,356 | 134,764 | |||
Current liabilities: | |||||
Accounts payable | 7,712 | 6,142 | |||
Accrued expenses | 13,746 | 13,621 | |||
Capital lease liability | 236 | 228 | |||
Equipment financing | 26 | ||||
Deferred revenue | 39,846 | 40,799 | |||
Total current liabilities | 61,540 | 60,816 | |||
Deferred revenue, net of current portion | 146 | 359 | |||
Deferred tax liability | 28 | ||||
Other liabilities | 1,028 | 1,228 | |||
Total liabilities | 62,742 | 62,403 | |||
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Undesignated preferred stock | |||||
Common stock | 37 | 35 | |||
Additional paid-in capital | 251,122 | 238,700 | |||
Treasury stock | (871) | (871) | |||
Accumulated other comprehensive loss | (952) | (809) | |||
Accumulated deficit | (178,722) | (164,694) | |||
Total stockholders' equity | 70,614 | 72,361 | |||
Total liabilities and stockholders' equity | 133,356 | 134,764 | |||
Accounting Standards Update 2014-09 [Member] | Pro Forma [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 29,306 | ||||
Accounts receivable, net | 22,294 | ||||
Prepaid expenses | 4,866 | ||||
Other current assets | 1,857 | ||||
Total current assets | 58,323 | ||||
Property and equipment, net | 9,703 | ||||
Intangible assets, net | 5,919 | ||||
Goodwill | 50,776 | ||||
Other assets | 1,004 | ||||
Total assets | 125,725 | ||||
Current liabilities: | |||||
Accounts payable | 7,712 | ||||
Accrued expenses | 13,746 | ||||
Capital lease liability | 236 | ||||
Deferred revenue | 38,422 | ||||
Total current liabilities | 60,116 | ||||
Deferred revenue, net of current portion | 146 | ||||
Deferred tax liability | 28 | ||||
Other liabilities | 1,028 | ||||
Total liabilities | 61,318 | ||||
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Undesignated preferred stock | |||||
Common stock | 37 | ||||
Additional paid-in capital | 251,122 | ||||
Treasury stock | (871) | ||||
Accumulated other comprehensive loss | (952) | ||||
Accumulated deficit | (184,929) | ||||
Total stockholders' equity | 64,407 | ||||
Total liabilities and stockholders' equity | $ 125,725 | ||||
Accounting Standards Update 2014-09 [Member] | Previously Reported [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 26,132 | ||||
Accounts receivable, net | 25,236 | ||||
Prepaid expenses | 3,991 | ||||
Other current assets | 3,045 | ||||
Total current assets | 58,404 | ||||
Property and equipment, net | 9,143 | ||||
Intangible assets, net | 8,236 | ||||
Goodwill | 50,776 | ||||
Deferred tax asset | 87 | ||||
Other assets | 969 | ||||
Total assets | 127,615 | ||||
Current liabilities: | |||||
Accounts payable | 6,142 | ||||
Accrued expenses | 13,621 | ||||
Capital lease liability | 228 | ||||
Equipment financing | 26 | ||||
Deferred revenue | 39,370 | ||||
Total current liabilities | 59,387 | ||||
Deferred revenue, net of current portion | 244 | ||||
Other liabilities | 1,228 | ||||
Total liabilities | 60,859 | ||||
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Undesignated preferred stock | |||||
Common stock | 35 | ||||
Additional paid-in capital | 238,700 | ||||
Treasury stock | (871) | ||||
Accumulated other comprehensive loss | (809) | ||||
Accumulated deficit | (170,299) | ||||
Total stockholders' equity | 66,756 | ||||
Total liabilities and stockholders' equity | 127,615 | ||||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | Subscription Arrangement [Member] | |||||
Current assets: | |||||
Accounts receivable, net | 926 | ||||
Other current assets | 1,861 | ||||
Total current assets | 2,787 | ||||
Total assets | 2,787 | ||||
Current liabilities: | |||||
Deferred revenue | 1,429 | ||||
Total current liabilities | 1,429 | ||||
Deferred revenue, net of current portion | 115 | ||||
Total liabilities | 1,544 | ||||
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Undesignated preferred stock | |||||
Accumulated deficit | 1,243 | ||||
Total stockholders' equity | 1,243 | ||||
Total liabilities and stockholders' equity | 2,787 | ||||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | Costs to Obtain Contract [Member] | |||||
Current assets: | |||||
Other current assets | 3,384 | ||||
Total current assets | 3,384 | ||||
Other assets | 978 | ||||
Total assets | 4,362 | ||||
Current liabilities: | |||||
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Undesignated preferred stock | |||||
Accumulated deficit | 4,362 | ||||
Total stockholders' equity | 4,362 | ||||
Total liabilities and stockholders' equity | $ 4,362 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Schedule of Changes in Condensed Consolidated Statement of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | |||||||||||
Total revenue | $ 164,833 | $ 155,913 | $ 150,266 | ||||||||
Cost of revenue: | |||||||||||
Total cost of revenue | 66,624 | 64,618 | 55,847 | ||||||||
Gross profit | $ 24,387 | $ 24,803 | $ 25,036 | $ 23,983 | $ 23,783 | $ 22,983 | $ 22,175 | $ 22,354 | 98,209 | 91,295 | 94,419 |
Operating expenses: | |||||||||||
Research and development | 31,716 | 31,850 | 30,171 | ||||||||
Sales and marketing | 55,775 | 57,294 | 54,038 | ||||||||
General and administrative | 23,103 | 21,847 | 19,167 | ||||||||
Merger-related | 716 | 21 | |||||||||
Total operating expenses | 111,310 | 110,991 | 103,397 | ||||||||
Loss from operations | (2,527) | (3,141) | (5,017) | (2,416) | (1,331) | (5,349) | (7,884) | (5,132) | (13,101) | (19,696) | (8,978) |
Other income (expense), net | (326) | 547 | (598) | ||||||||
Loss before income taxes | (13,427) | (19,149) | (9,576) | ||||||||
Provision for income taxes | 601 | 370 | 410 | ||||||||
Net loss | $ (2,617) | $ (3,502) | $ (5,652) | $ (2,257) | $ (1,372) | $ (5,396) | $ (7,678) | $ (5,073) | $ (14,028) | $ (19,519) | $ (9,986) |
Net loss per share-basic and diluted | $ (0.07) | $ (0.10) | $ (0.16) | $ (0.06) | $ (0.04) | $ (0.16) | $ (0.22) | $ (0.15) | $ (0.39) | $ (0.57) | $ (0.30) |
Weighted-average number of common shares used in computing net loss per share | 35,808,000 | 34,376,000 | 33,189,000 | ||||||||
Subscription and Support Revenue [Member] | |||||||||||
Revenue: | |||||||||||
Total revenue | $ 150,941 | $ 143,159 | $ 142,022 | ||||||||
Cost of revenue: | |||||||||||
Total cost of revenue | 53,311 | 50,664 | 48,011 | ||||||||
Professional Services and Other Revenue [Member] | |||||||||||
Revenue: | |||||||||||
Total revenue | 13,892 | 12,754 | 8,244 | ||||||||
Cost of revenue: | |||||||||||
Total cost of revenue | 13,313 | $ 13,954 | $ 7,836 | ||||||||
Accounting Standards Update 2014-09 [Member] | |||||||||||
Revenue: | |||||||||||
Total revenue | 164,833 | ||||||||||
Cost of revenue: | |||||||||||
Total cost of revenue | 66,624 | ||||||||||
Gross profit | 98,209 | ||||||||||
Operating expenses: | |||||||||||
Research and development | 31,716 | ||||||||||
Sales and marketing | 55,775 | ||||||||||
General and administrative | 23,103 | ||||||||||
Merger-related | 716 | ||||||||||
Total operating expenses | 111,310 | ||||||||||
Loss from operations | (13,101) | ||||||||||
Other income (expense), net | (326) | ||||||||||
Loss before income taxes | (13,427) | ||||||||||
Provision for income taxes | 601 | ||||||||||
Net loss | $ (14,028) | ||||||||||
Net loss per share-basic and diluted | $ (0.39) | ||||||||||
Weighted-average number of common shares used in computing net loss per share | 35,808 | ||||||||||
Accounting Standards Update 2014-09 [Member] | Subscription and Support Revenue [Member] | |||||||||||
Revenue: | |||||||||||
Total revenue | $ 150,941 | ||||||||||
Cost of revenue: | |||||||||||
Total cost of revenue | 53,311 | ||||||||||
Accounting Standards Update 2014-09 [Member] | Professional Services and Other Revenue [Member] | |||||||||||
Revenue: | |||||||||||
Total revenue | 13,892 | ||||||||||
Cost of revenue: | |||||||||||
Total cost of revenue | 13,313 | ||||||||||
Accounting Standards Update 2014-09 [Member] | Pro Forma [Member] | |||||||||||
Revenue: | |||||||||||
Total revenue | 165,008 | ||||||||||
Cost of revenue: | |||||||||||
Total cost of revenue | 66,624 | ||||||||||
Gross profit | 98,384 | ||||||||||
Operating expenses: | |||||||||||
Research and development | 31,716 | ||||||||||
Sales and marketing | 56,552 | ||||||||||
General and administrative | 23,103 | ||||||||||
Merger-related | 716 | ||||||||||
Total operating expenses | 112,087 | ||||||||||
Loss from operations | (13,703) | ||||||||||
Other income (expense), net | (326) | ||||||||||
Loss before income taxes | (14,029) | ||||||||||
Provision for income taxes | 601 | ||||||||||
Net loss | $ (14,630) | ||||||||||
Net loss per share-basic and diluted | $ (0.41) | ||||||||||
Weighted-average number of common shares used in computing net loss per share | 35,808 | ||||||||||
Accounting Standards Update 2014-09 [Member] | Pro Forma [Member] | Subscription and Support Revenue [Member] | |||||||||||
Revenue: | |||||||||||
Total revenue | $ 151,116 | ||||||||||
Cost of revenue: | |||||||||||
Total cost of revenue | 53,311 | ||||||||||
Accounting Standards Update 2014-09 [Member] | Pro Forma [Member] | Professional Services and Other Revenue [Member] | |||||||||||
Revenue: | |||||||||||
Total revenue | 13,892 | ||||||||||
Cost of revenue: | |||||||||||
Total cost of revenue | $ 13,313 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Schedule of Changes in Condensed Consolidated Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||||||||||
Net loss | $ (2,617) | $ (3,502) | $ (5,652) | $ (2,257) | $ (1,372) | $ (5,396) | $ (7,678) | $ (5,073) | $ (14,028) | $ (19,519) | $ (9,986) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 6,796 | 7,257 | 7,796 | ||||||||
Stock-based compensation | 6,649 | 7,243 | 6,012 | ||||||||
Deferred income taxes | (118) | (38) | 47 | ||||||||
Provision for reserves on accounts receivable | 199 | 203 | 230 | ||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | (2,791) | 3,811 | 559 | ||||||||
Prepaid expenses and other current assets | (294) | 1,484 | 894 | ||||||||
Other assets | 536 | (56) | 299 | ||||||||
Accounts payable | 1,197 | 1,758 | 733 | ||||||||
Accrued expenses | 326 | (2,930) | 3,172 | ||||||||
Deferred revenue | (1,256) | 4,748 | 4,764 | ||||||||
Net cash provided by operating activities | 2,550 | $ (6,441) | $ 11,077 | ||||||||
Accounting Standards Update 2014-09 [Member] | |||||||||||
Operating activities | |||||||||||
Net loss | (14,028) | ||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 6,796 | ||||||||||
Stock-based compensation | 6,649 | ||||||||||
Deferred income taxes | 118 | ||||||||||
Provision for reserves on accounts receivable | 199 | ||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | 2,791 | ||||||||||
Prepaid expenses and other current assets | 294 | ||||||||||
Other assets | (536) | ||||||||||
Accounts payable | 1,197 | ||||||||||
Accrued expenses | 326 | ||||||||||
Deferred revenue | (1,256) | ||||||||||
Net cash provided by operating activities | 2,550 | ||||||||||
Accounting Standards Update 2014-09 [Member] | Pro Forma [Member] | |||||||||||
Operating activities | |||||||||||
Net loss | (14,630) | ||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 6,796 | ||||||||||
Stock-based compensation | 6,649 | ||||||||||
Deferred income taxes | 118 | ||||||||||
Provision for reserves on accounts receivable | 199 | ||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | 2,835 | ||||||||||
Prepaid expenses and other current assets | 262 | ||||||||||
Other assets | (65) | ||||||||||
Accounts payable | 1,197 | ||||||||||
Accrued expenses | 326 | ||||||||||
Deferred revenue | (1,137) | ||||||||||
Net cash provided by operating activities | $ 2,550 |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 23,264 | $ 25,236 | |
Deferred Revenue (current) | 39,846 | 39,370 | |
Deferred Revenue (non- current) | 146 | $ 244 | |
Accounting Standards Update 2014-09 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 23,264 | $ 26,162 | |
Contract Assets (current) | 1,640 | 3,124 | |
Deferred Revenue (current) | 39,846 | 40,799 | |
Deferred Revenue (non- current) | 146 | 359 | |
Total Deferred Revenue | $ 39,992 | $ 41,158 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Finite Lived Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Gross Carrying Value | $ 22,760 | $ 22,760 |
Finite Lived Intangible Assets Accumulated Amortization | 16,841 | 14,524 |
Finite Lived Intangible Assets Net Carrying Value | $ 5,919 | $ 8,236 |
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 | 11,082 | 9,431 |
Finite Lived Intangible Assets Net Carrying Value | $ 3,141 | $ 4,792 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Weighted Average Estimated Useful Life (in years) | 11 years | 11 years |
Finite Lived Intangible Assets Gross Carrying Value | $ 6,257 | $ 6,257 |
Finite Lived Intangible Assets Accumulated Amortization | 3,479 | 2,813 |
Finite Lived Intangible Assets Net Carrying Value | $ 2,778 | $ 3,444 |
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 | $ 1,912 | $ 1,912 |
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 Goodwil_3
Intangible Assets and Goodwill - Summarizes Amortization Expense Related Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amortization Of Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | $ 2,317 | $ 2,734 | $ 3,116 |
Cost of Subscription and Support Revenue [Member] | |||
Amortization Of Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | 1,651 | 2,031 | 2,031 |
Research and Development [Member] | |||
Amortization Of Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | 11 | 126 | |
Sales and Marketing [Member] | |||
Amortization Of Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | $ 666 | $ 692 | $ 959 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Estimated Remaining Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,019 | $ 1,603 | |
2,020 | 1,584 | |
2,021 | 1,328 | |
2,022 | 370 | |
2,023 | 285 | |
2024 and thereafter | 749 | |
Total | $ 5,919 | $ 8,236 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 50,776 | $ 50,776 |
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, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 8,299 | $ 8,160 |
Total assets | 8,299 | 8,160 |
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 | 8,299 | 8,160 |
Total assets | $ 8,299 | $ 8,160 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Rental Commitments Under Operating Lease (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,019 | $ 6,752 |
2,020 | 5,355 |
2,021 | 5,122 |
2,022 | 2,192 |
2,023 | 1,108 |
2024 and thereafter | 988 |
Total | $ 21,517 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) | Jan. 30, 2019Patents | Dec. 01, 2017Patents | Oct. 26, 2017Patents | Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
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 | $ 1,264,000 | $ 1,464,000 | ||||
Deferred rent and rent incentives, noncurrent | 876,000 | 1,102,000 | ||||
Rent expense | 7,857,000 | 6,608,000 | $ 6,334,000 | |||
Income from sublease rental | $ 92,000 | 285,000 | $ 219,000 | |||
Operating sublease agreement expiration date | 2018-06 | |||||
Total assets under incremental capital leases | $ 353,000 | |||||
Accumulated amortization related to capital leases | 83,000 | |||||
Non-cancelable commitments due in 2019 | 17,415,000 | |||||
Non-cancelable commitments due in 2020 | 3,000,000 | |||||
Cost for Guarantees and indemnities | $ 0 | |||||
Latin America [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Number of prospective customers | Customer | 22 | |||||
Realtime Adaptive Streaming LLC [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Complaint filed against patents allegedly infringed | Patents | 2 | 5 | ||||
Uniloc 2017 LLC [Member] | Subsequent Event [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Complaint filed against patents allegedly infringed | Patents | 4 | |||||
Letter of Credit [Member] | ||||||
Commitment And Contingencies [Line Items] | ||||||
Debt instrument, face amount | $ 2,400,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Future Minimum Rental Commitments Under Capital Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,019 | $ 243 |
2,020 | 34 |
Less - interest on capital leases | 7 |
Capital Lease Commitments | $ 270 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | Dec. 31, 2018shares | Dec. 31, 2017shares | Aug. 31, 2016shares | Sep. 30, 2006Lenders$ / sharesshares | Dec. 31, 2018Plansshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of stock-based compensation plans | Plans | 5 | ||||||
Number of shares available for issuance | 2,105,806 | 2,105,806 | |||||
Aggregate Intrinsic Value, Exercised | $ | $ 1,243 | $ 5,159 | |||||
Shares exercised during period | 28,028 | ||||||
Shares issued during period, share-based compensation | 20,528 | ||||||
RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock units, Granted | 2,218,036 | ||||||
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 | |||||
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 | ||||||
Number of lenders to whom warrants issued | Lenders | 2 | ||||||
2012 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
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 | ||||||
Two Thousand and Eighteen Plan [Member] | RSUs [Member] | Key Executives [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock units, Granted | 1,169,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding at December 31, 2018 | 2,737,655 | ||
Aggregate Intrinsic Value, Exercised | $ 1,243 | $ 5,159 | |
Options Outstanding [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding at December 31, 2017 | 3,924,313 | ||
Shares, Granted | 1,234,184 | ||
Shares, Exercised | (1,173,288) | ||
Shares, Cancelled | (1,247,554) | ||
Shares, Outstanding at December 31, 2018 | 2,737,655 | 3,924,313 | |
Shares, Exercisable at December 31, 2018 | 1,413,875 | ||
Weighted-Average Exercise Price, Outstanding at December 31, 2017 | $ 7.33 | ||
Weighted-Average Exercise Price, Granted | 8.99 | ||
Weighted-Average Exercise Price, Exercised | 4.91 | ||
Weighted-Average Exercise Price, Cancelled | 8.54 | ||
Weighted-Average Exercise Price, Outstanding at December 31, 2018 | 8.57 | $ 7.33 | |
Weighted-Average Exercise Price, Exercisable at December 31, 2018 | $ 8.36 | ||
Weighted-Average Remaining Contractual Term, Outstanding at December 31, 2018 | 6 years 10 months 2 days | ||
Weighted-Average Remaining Contractual Term, Exercisable at December 31, 2018 | 4 years 9 months 29 days | ||
Aggregate Intrinsic Value, Exercised | $ 4,897 | ||
Aggregate Intrinsic Value, Outstanding at December 31, 2018 | 678 | ||
Aggregate Intrinsic Value, Exercisable at December 31, 2018 | $ 545 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Parenthetical) (Detail) | Dec. 31, 2018$ / 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 | $ 7.04 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of RSU Activity (Detail) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Unvested Shares, Ending Balance | 3,033,582 |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Unvested Shares, Beginning Balance | 2,218,704 |
Granted | 2,218,036 |
Vested and issued | (645,773) |
Cancelled | (757,385) |
Unvested Shares, Ending Balance | 3,033,582 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 7.44 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 8.43 |
Weighted Average Grant Date Fair Value, Vested and issued | $ / shares | 7.33 |
Weighted Average Grant Date Fair Value, Cancelled | $ / shares | 7.44 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 8.07 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Shares of Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Common stock options outstanding | 2,737,655 |
Restricted stock unit awards outstanding | 3,033,582 |
Shares available for issuance under all stock-based compensation plans | 2,105,806 |
Total shares of authorized common stock reserved for future issuance | 7,877,043 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure By Jurisdiction [Abstract] | |||
Domestic | $ (15,026) | $ (20,528) | $ (10,756) |
Foreign | 1,599 | 1,379 | 1,180 |
Loss before income taxes | $ (13,427) | $ (19,149) | $ (9,576) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current provision: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 19 | 21 | 33 |
Foreign | 464 | 311 | 424 |
Total current | 483 | 332 | 457 |
Deferred (benefit): | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | 118 | 38 | (47) |
Total deferred | 118 | 38 | (47) |
Total provision | $ 601 | $ 370 | $ 410 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax at statutory rates | (21.00%) | (34.00%) | (34.00%) |
State income taxes | (5.50%) | (4.10%) | (6.10%) |
Change in tax rate | 103.90% | 0.10% | |
Permanent differences | 7.00% | 7.10% | 11.70% |
Foreign rate differential | 1.40% | (0.70%) | (1.10%) |
Research and development credits | (6.10%) | (3.70%) | (6.70%) |
Change in valuation allowance | 29.20% | (66.30%) | 40.80% |
Other, net | (0.50%) | (0.30%) | (0.40%) |
Effective tax rate | 4.50% | 1.90% | 4.30% |
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, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carry-forwards | $ 41,440 | $ 37,964 |
Tax credit carry-forwards | 10,327 | 9,173 |
Stock-based compensation | 974 | 1,856 |
Fixed Assets | 179 | 267 |
Account receivable reserves | 136 | 189 |
Accrued compensation | 910 | 851 |
Capitalized start-up costs | 92 | 138 |
Other temporary differences | 325 | 371 |
Total deferred tax assets | 54,383 | 50,809 |
Deferred tax liabilities: | ||
Other deferred tax liabilities | (1,520) | |
Intangible assets | (3,100) | (3,611) |
Total deferred tax liabilities | (4,620) | (3,611) |
Valuation allowance | (49,791) | (47,111) |
Net deferred tax asset | $ 87 | |
Net deferred tax liability | $ (28) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Increase in valuation allowance | $ 2,700,000 | ||
Net operating losses carried forward, expiration date | Dec. 31, 2038 | ||
Research and development tax credit, expiration date | Dec. 31, 2038 | ||
Recorded liabilities for uncertain tax position | $ 0 | $ 0 | |
Accrued interest or penalties related to uncertain tax positions | $ 0 | $ 0 | |
Federal corporate tax rate | 21.00% | 34.00% | 34.00% |
Federal [Member] | |||
Income Taxes [Line Items] | |||
Net operating losses | $ 161,800,000 | ||
Research and development tax credits | 6,900,000 | ||
Federal [Member] | Tax Year 2018 [Member] | |||
Income Taxes [Line Items] | |||
Net operating losses | 13,800,000 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Net operating losses | 76,800,000 | ||
Research and development tax credits | 4,400,000 | ||
State [Member] | Tax Year 2018 [Member] | |||
Income Taxes [Line Items] | |||
Net operating losses | $ 700,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
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 operatingmeasures. |
Secured Line of Credit [Member] | |
Debt Instrument [Line Items] | |
Line of credit, agreement start date | Dec. 14, 2018 |
Line of credit maximum borrowing capacity | $ 30,000,000 |
Percentage points added to prime rate or LIBOR | 4.00% |
Borrowings outstanding | $ 0 |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Minimum outstanding principal threshold limit | $ 15,000,000 |
Minimum [Member] | Secured Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Percentage points added to prime rate or LIBOR | 2.25% |
Accrued Expenses - Components o
Accrued Expenses - Components of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities, Current [Abstract] | ||
Accrued payroll and related benefits | $ 4,777 | $ 4,436 |
Accrued sales and other taxes | 1,639 | 1,363 |
Accrued professional fees and outside contractors | 1,253 | 2,021 |
Accrued content delivery | 2,979 | 2,390 |
Accrued other liabilities | 3,098 | 3,411 |
Total | $ 13,746 | $ 13,621 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Number of operating segment | Segment | 1 | ||||||||||
Revenues from customers | $ 40,864 | $ 41,121 | $ 41,654 | $ 41,194 | $ 40,101 | $ 39,487 | $ 38,753 | $ 37,572 | $ 164,833 | $ 155,913 | $ 150,266 |
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 | $ 83,435 | $ 85,459 | $ 87,302 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 40,864 | $ 41,121 | $ 41,654 | $ 41,194 | $ 40,101 | $ 39,487 | $ 38,753 | $ 37,572 | $ 164,833 | $ 155,913 | $ 150,266 |
North America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 88,778 | 91,358 | 92,912 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 27,754 | 24,425 | 25,196 | ||||||||
Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 21,960 | 16,881 | 15,230 | ||||||||
Asia Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 25,766 | 22,539 | 15,617 | ||||||||
Other [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 575 | $ 710 | $ 1,311 |
401(k) Savings Plan - Additiona
401(k) Savings Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Contribution made under the plan | $ 424 | $ 425 | $ 336 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 40,864 | $ 41,121 | $ 41,654 | $ 41,194 | $ 40,101 | $ 39,487 | $ 38,753 | $ 37,572 | $ 164,833 | $ 155,913 | $ 150,266 |
Gross profit | 24,387 | 24,803 | 25,036 | 23,983 | 23,783 | 22,983 | 22,175 | 22,354 | 98,209 | 91,295 | 94,419 |
Loss from operations | (2,527) | (3,141) | (5,017) | (2,416) | (1,331) | (5,349) | (7,884) | (5,132) | (13,101) | (19,696) | (8,978) |
Net loss | $ (2,617) | $ (3,502) | $ (5,652) | $ (2,257) | $ (1,372) | $ (5,396) | $ (7,678) | $ (5,073) | $ (14,028) | $ (19,519) | $ (9,986) |
Basic and diluted net loss per share | $ (0.07) | $ (0.10) | $ (0.16) | $ (0.06) | $ (0.04) | $ (0.16) | $ (0.22) | $ (0.15) | $ (0.39) | $ (0.57) | $ (0.30) |