Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 24, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BCOV | ||
Entity Registrant Name | BRIGHTCOVE INC. | ||
Entity Central Index Key | 0001313275 | ||
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 Interactive Data Current | Yes | ||
Entity Address, State or Province | MA | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Common Stock | ||
Entity Public Float | $ 390,496,282 | ||
Entity Common Stock, Shares Outstanding | 38,957,059 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 22,759 | $ 29,306 |
Accounts receivable, net of allowance of $904 and $190 at December 31, 2019 and December 31, 2018, respectively | 31,181 | 23,264 |
Prepaid expenses | 5,171 | 4,866 |
Other current assets | 6,713 | 7,070 |
Total current assets | 65,824 | 64,506 |
Property and equipment, net | 12,086 | 9,703 |
Operating lease right-of-use asset | 16,912 | |
Intangible assets, net | 13,875 | 5,919 |
Goodwill | 60,902 | 50,776 |
Other assets | 3,268 | 2,452 |
Total assets | 172,867 | 133,356 |
Current liabilities: | ||
Accounts payable | 9,917 | 7,712 |
Accrued expenses | 20,925 | 13,982 |
Operating lease liability | 6,174 | |
Deferred revenue | 49,260 | 39,846 |
Total current liabilities | 86,276 | 61,540 |
Operating lease liability, net of current portion | 11,701 | |
Other liabilities | 767 | 1,202 |
Total liabilities | 98,744 | 62,742 |
Commitments and contingencies (Note 7) | ||
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; 39,042,787 and 36,752,469 shares issued at December 31, 2019 and 2018, respectively | 39 | 37 |
Additional paid-in capital | 276,365 | 251,122 |
Treasury stock, at cost; 135,000 shares | (871) | (871) |
Accumulated other comprehensive loss | (785) | (952) |
Accumulated deficit | (200,625) | (178,722) |
Total stockholders' equity | 74,123 | 70,614 |
Total liabilities and stockholders' equity | $ 172,867 | $ 133,356 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 904 | $ 190 |
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 | 39,042,787 | 36,752,469 |
Treasury stock, shares | 135,000 | 135,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||
Revenue | $ 184,455 | $ 164,833 | $ 155,913 |
Cost of revenue: | |||
Cost of revenue | 75,469 | 66,624 | 64,618 |
Gross profit | 108,986 | 98,209 | 91,295 |
Operating expenses: | |||
Research and development | 32,535 | 31,716 | 31,850 |
Sales and marketing | 60,375 | 55,775 | 57,294 |
General and administrative | 25,692 | 23,103 | 21,847 |
Merger-related | 11,447 | 716 | |
Total operating expenses | 130,049 | 111,310 | 110,991 |
Loss from operations | (21,063) | (13,101) | (19,696) |
Other (expense) income, net | (280) | (326) | 547 |
Loss before income taxes | (21,343) | (13,427) | (19,149) |
Provision for income taxes | 560 | 601 | 370 |
Net loss | $ (21,903) | $ (14,028) | $ (19,519) |
Net loss per share — basic and diluted | $ (0.58) | $ (0.39) | $ (0.57) |
Weighted-average number of common shares used in computing net loss per share — basic and diluted | 38,028 | 35,808 | 34,376 |
Subscription and Support Revenue [Member] | |||
Revenue: | |||
Revenue | $ 173,818 | $ 150,941 | $ 143,159 |
Cost of revenue: | |||
Cost of revenue | 67,064 | 53,311 | 50,664 |
Professional Services and Other Revenue [Member] | |||
Revenue: | |||
Revenue | 10,637 | 13,892 | 12,754 |
Cost of revenue: | |||
Cost of revenue | $ 8,405 | $ 13,313 | $ 13,954 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (21,903) | $ (14,028) | $ (19,519) |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | 167 | (143) | 363 |
Comprehensive loss | $ (21,736) | $ (14,171) | $ (19,156) |
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, 2016 | $ 34 | $ 230,788 | $ (871) | $ (1,172) | $ (150,583) | |
Beginning Balance, shares at Dec. 31, 2016 | 34,143,148 | |||||
Treasury shares, beginning Balance at Dec. 31, 2016 | (135,000) | |||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | $ 1 | 251 | ||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, shares | 790,260 | |||||
Stock-based compensation expense | 7,464 | |||||
Foreign currency translation adjustment | $ 363 | 363 | ||||
Net loss | (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) | |||||
Impact of adoption of new accounting pronouncements | ASU 2016-09 [Member] | 197 | |||||
Impact of adoption of new accounting pronouncements | Accounting Standards Update 2014-09 [Member] | (197) | |||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | $ 2 | 5,585 | ||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, shares | 1,819,061 | |||||
Stock-based compensation expense | 6,837 | |||||
Foreign currency translation adjustment | (143) | (143) | ||||
Net loss | (14,028) | |||||
Ending Balance at Dec. 31, 2018 | $ 70,614 | $ 37 | 251,122 | $ (871) | (952) | (178,722) |
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 | |||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | $ 1 | 3,413 | ||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, shares | 1,003,472 | |||||
Issuance of common stock upon acquisition | $ 1 | 12,248 | ||||
Issuance of common stock upon acquisition (shares) | 1,286,846 | |||||
Stock-based compensation expense | 9,582 | |||||
Foreign currency translation adjustment | 167 | 167 | ||||
Net loss | (21,903) | |||||
Ending Balance at Dec. 31, 2019 | $ 74,123 | $ 39 | $ 276,365 | $ (871) | $ (785) | (200,625) |
Ending Balance, shares at Dec. 31, 2019 | 39,042,787 | |||||
Treasury stock, Ending Balance at Dec. 31, 2019 | (135,000) | (135,000) | ||||
Impact of adoption of new accounting pronouncements | Accounting Standards Update 2014-09 [Member] | $ 1,243 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net loss | $ (21,903) | $ (14,028) | $ (19,519) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 8,422 | 6,796 | 7,257 |
Stock-based compensation | 9,259 | 6,649 | 7,243 |
Provision for reserves on accounts receivable | 1,137 | 199 | 203 |
Loss on disposal of equipment | |||
Changes in assets and liabilities: | |||
Accounts receivable | (5,537) | 2,791 | (3,811) |
Prepaid expenses and other current assets | 1,213 | 294 | (1,484) |
Other assets | (758) | (418) | 94 |
Accounts payable | 1,682 | 1,197 | 1,758 |
Accrued expenses | 6,749 | 326 | (2,930) |
Operating leases | (302) | ||
Deferred revenue | 2,746 | (1,256) | 4,748 |
Net cash provided by (used in) operating activities | 2,708 | 2,550 | (6,441) |
Investing activities | |||
Cash paid for acquisition, net of cash acquired | (5,339) | ||
Purchases of property and equipment, net of returns (Note 2) | (1,047) | (1,538) | (1,102) |
Capitalized internal-use software costs | (6,232) | (2,993) | (3,010) |
Net cash used in investing activities | (12,618) | (4,531) | (4,112) |
Financing activities | |||
Proceeds from exercise of stock options | 3,473 | 5,757 | 520 |
Other financing activities | (296) | (507) | (1,064) |
Net cash provided by (used in) financing activities | 3,177 | 5,250 | (544) |
Effect of exchange rate changes on cash and cash equivalents | 186 | (95) | 416 |
Net (decrease) increase in cash and cash equivalents | (6,547) | 3,174 | (10,681) |
Cash and cash equivalents at beginning of period | 29,306 | 26,132 | 36,813 |
Cash and cash equivalents at end of period | 22,759 | 29,306 | 26,132 |
Supplemental disclosure of cash flow information | |||
Cash paid for operating lease liabilities | 7,382 | ||
Cash paid for income taxes | 555 | 384 | 500 |
Cash paid for interest | 6 | 8 | 26 |
Supplemental disclosure of non-cash operating activities | |||
Capitalization of stock-based compensation related to internal use software | 322 | $ 188 | 221 |
Supplemental disclosure of non-cash investing and financing activities | |||
Unpaid internal-use software costs | 20 | $ 28 | |
Fair value of shares issued for acquisition of a business | $ 12,250 |
Business Description
Business Description | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 | |
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). The Company adopted ASC 842 using the additional transition method introduced by ASU 2018-11 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, and the realizability of the Company’s deferred tax assets. 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. 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, 2019 and 2018 consist of the following: December 31, 2019 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Cash Demand $ 22,718 $ 22,718 $ 22,718 Money market funds Demand 41 41 41 Total cash and cash equivalents $ 22,759 $ 22,759 $ 22,759 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 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, 2019 and 2018, 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 6 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, 2019, 2018 and 2017: Balance at Provision Write-offs Balance at Year ended December 31, 2019 $ 190 $ 1,137 $ (423 ) $ 904 Year ended December 31, 2018 146 199 (155 ) 190 Year ended December 31, 2017 154 203 (211 ) 146 Off-Balance The Company has no significant off-balance For the years ended December 31, 2019, 2018 and 2017, no individual customer accounted for more than 10% of total revenue. As of December 31, 2019 and 2018, 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, 2019, 2018 and 2017, the Company capitalized $6,574, $3,152 and $3,239, 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, 2019 2018 Computer equipment 3 $ 14,807 $ 14,076 Software 3 - 6 27,882 21,208 Furniture and fixtures 5 2,965 2,929 Leasehold improvements Shorter of lease 1,821 1,665 47,475 39,878 Less accumulated depreciation and amortization 35,389 30,175 $ 12,086 $ 9,703 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. Right-of-Use The Company accounts for its right-of-use Leases 2018-11. right-of-use 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, 2019, 2018 and 2017, 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. For further discussion of the Company’s accounting policies related to business combinations, see Note 3. 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, 2019 and 2018. 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. 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 number of common shares outstanding during the period. The Company has excluded other potentially dilutive shares, which include warrants to purchase common stock and outstanding common stock options and unvested restricted stock units, from the 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, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Options outstanding 2,479 2,738 4,127 Restricted stock units outstanding 3,626 3,034 2,050 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, 2019, the Company had five stock-based compensation plans, which are more fully described in Note 8. 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, 2019, 2018 and 2017, was $4.49, $4.11 and $3.08 per share, respectively. The weighted-average assumptions utilized to determine such values are presented in the following table: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 2.25 % 2.88 % 2.08 % Expected volatility 44 % 43 % 42 % Expected life (in years) 6.2 6.2 6.1 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. The Company recognized $2.9 million of stock-based compensation expense relating to performance-based awards for the year ended December 31, 2019. As of December 31, 2019, there was $22,423 of total unrecognized stock-based compensation expense related to stock-based awards that is expected to be recognized over a weighted-average period of 2.15 years. The following table summarizes stock-based compensation expense as included in the consolidated statement of operations for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Cost of subscription and support revenue $ 683 $ 481 $ 439 Cost of professional services and other revenue 289 242 251 Research and development 1,444 1,281 1,563 Sales and marketing 2,713 2,377 2,750 General and administrative 4,130 2,268 2,240 $ 9,259 $ 6,649 $ 7,243 Upon the adoption of ASU 2016-09 ASU 2016-09, See Note 8 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, 2019. Advertising Costs Advertising costs are charged to operations as incurred. The Company incurred advertising costs of $2,658, $2,657and $2,485 for the years ended December 31, 2019, 2018 and 2017, respectively. Merger-related Costs Merger-related costs consist of expenses related to mergers and acquisitions, integration costs and general corporate development activities. In 2019, merger-related costs incurred were primarily in connection with the entry into a definitive agreement in February 2019 to acquire the online video player related assets from Ooyala, Inc. and certain of its subsidiaries and costs related to the transition of Ooyala customers to the Company’s technology. The Company incurred merger-related costs of $11,447, $716 and $0 for the years ended December 31, 2019, 2018 and 2017, respectively. Recent Accounting Pronouncements and Standards Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | 3. Business Combinations Ooyala On April 1, 2019, pursuant to an Asset Purchase and Sale Agreement (the “Purchase Agreement”), the Company completed its acquisition of the online video platform assets of Ooyala, Inc. and certain of its subsidiaries (“Ooyala”), a provider of cloud video technology, in exchange for common stock of the Company and cash (the “Ooyala Acquisition”). At the closing, the Company issued 1,056,763 unregistered shares of common stock of the Company valued at $8.9 million and paid $2.6 million in cash Pursuant to the Purchase Agreement, approximately $2.65 million of the cash consideration was placed into an escrow account to secure payment of any claims of indemnification for breaches or inaccuracies in the Sellers’ representations and warranties, covenants and agreements. The Ooyala Acquisition was accounted for using the purchase method of accounting in accordance with Accounting Standards Codification 805 — Business Combinations. Accordingly, the results of operations of Ooyala have been included in the accompanying condensed consolidated financial statements since the date of acquisition. The purchase price has been allocated to the tangible and intangible assets acquired and liabilities assumed based upon the respective estimates of fair value as of the date of the Ooyala Acquisition, which are final as of December 31, 2019, and using assumptions that the Company’s management believes are reasonable given the information currently available. The process for estimating the fair values of identifiable intangible assets and certain tangible assets requires the use of significant estimates and assumptions, including estimating future cash flows and developing appropriate discount rates. The fair value of the intangible assets has been estimated using the income approach in which the after-tax cash During the year ended December 31, 2019, the Company incurred $3.4 million of costs incurred related to the closing of the Ooyala Acquisition. The excess of the purchase price over the estimated amounts of net assets as of the effective date of the acquisition was allocated to goodwill in accordance with the accounting guidance. The factors contributing to the recognition of the amount of goodwill are based on several strategic and synergistic benefits that are expected to be realized from the Ooyala Acquisition. These benefits include the acquired workforce and with the Company’s direct sales force and larger channel coverage, the Company anticipates significant cross-selling opportunities. The goodwill is expected to be deductible for tax purposes. The total purchase price for Ooyala has been allocated as follows: Accounts receivable $ 3,175 Other tangible assets $ 811 Identifiable intangible assets $ 9,636 Goodwill $ 4,585 Deferred revenue $ (6,633 ) Other liabilities $ (196 ) Total estimated purchase price $ 11,378 The following are the identifiable intangible assets acquired and their respective useful lives, as determined based on valuations: Amount Useful Life Customer relationships $ 8,998 7 Developed technology 638 1 Total $ 9,636 The fair value of the intangible assets has been estimated using the income approach in which the after-tax cash The estimated amortization expense for 2019 and for each of the five succeeding years and thereafter is as follows: Year Ending December 31, Amount 2019 $ 1,443 2020 1,445 2021 1,286 2022 1,285 2023 1,285 2024 and thereafter 2,892 Total $ 9,636 Pro Forma Financial Information (Unaudited) The unaudited financial information in the table below summarizes the combined results of operations of the Company and Ooyala, on a pro forma basis, as though the Company had acquired Ooyala at the beginning of the periods presented. The pro forma information for all periods presented also includes the effects of business combination accounting resulting from the acquisition. Year Ended December 31, 2019 2018 Total revenue $ 192,070 $ 195,293 Net loss (20,616 ) (16,955 ) Earnings per share — basic and diluted (0.54 ) (0.46 ) Revenue and net loss attributable to the Ooyala Acquisition since the date of the acquisition was $17.9 million and $3.0 million, respectively, for the year ended December 31, 2019. Revenue comprised revenue recognized for customers that were acquired as part of the transaction, including customers who have since migrated onto the company’s technology. Net loss does not reflect any expenses for resources or vendors that were not acquired as part of the transaction but may have supported acquired customers. Other Business Combinations On August 1, 2019, pursuant to a Share Purchase Agreement (the “SPA”), the Company completed its acquisition of a company and its subsidiary (the “August Acquisition”) in exchange for common stock of the Company and cash. Consideration was comprised of: (a) 270,686 unregistered shares of common stock of the Company valued at $3.4 million, of which 40,603 were held back to secure payment of any claims of indemnification for breaches or inaccuracies in the sellers’ representations and warranties, covenants and agreements, (b) approximately $3.3 million in cash, of which $488 was held back to secure payment of any claims of indemnification for breaches or inaccuracies in the Sellers’ representations and warranties, covenants and agreements, and (c) approximately $1 million in cash for cash acquired as part of the transaction. The August Acquisition was accounted for using the purchase method of accounting in accordance with Accounting Standards Codification 805 — Business Combinations. Accordingly, the results of operations of the acquired company have been included in the accompanying condensed consolidated financial statements since the date of acquisition. The purchase price has been allocated to the tangible and intangible assets acquired and liabilities assumed based upon the respective estimates of fair value as of the date of the August Acquisition and using assumptions that the Company’s management believes are reasonable given the information currently available. During the year ended December 31, 2019, the Company incurred $400 of merger-related costs related to the August Acquisition. The excess of the purchase price over the estimated amounts of net assets as of the effective date of the acquisition was allocated to goodwill in accordance with the accounting guidance. The factors contributing to the recognition of the amount of goodwill are based on several strategic and synergistic benefits that are expected to be realized from the August Acquisition. These benefits include the acquired workforce and opportunities to expand the Company’s offerings in target market segments. The goodwill is expected to be non-deductible The total purchase price for the August Acquisition has been allocated as follows: Cash $ 981 Accounts receivable $ 393 Other tangible assets $ 210 Identifiable intangible assets $ 1,525 Goodwill $ 5,541 Accounts payable $ (177 ) Deferred revenue $ (138 ) Accrued expenses $ (322 ) Deferred tax liability $ (333 ) Total estimated purchase price $ 7,680 The following are the identifiable intangible assets acquired and their respective useful lives, as determined based on the Amount Useful Life Developed technology $ 232 4 Customer relationships 1,293 4 Total $ 1,525 The fair value of the intangible assets has been estimated using the income approach in which the after-tax cash The estimated remaining amortization expense for 2019 and for each of the five succeeding years and thereafter is as follows: Year Ending December 31, Amount 2019 $ 160 2020 381 2021 381 2022 381 2023 222 2024 and thereafter — Total $ 1,525 Pro forma results of operations for the August Acquisition have not been presented because the effect of the acquisition is not material to the Company’s consolidated financial results. Revenue and earnings attributable to acquired operations since the date of the acquisition are included in the Company’s consolidated statements of operations. The changes in the carrying amount of goodwill for the year ended December 31, 2019 were as follows: Balance as of January 1, 2019 $ 50,776 Goodwill from acquisitions 10,126 Balance as of December 31, 2019 $ 60,902 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 4. 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 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 a cumulative catch-up adjustment to the Revenue Recognition a cumulative catch-up adjustment 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. The transaction price is the total amount of consideration to which the Company expects to be entitled in exchange for transferring the promised services to the customer. The Company has elected to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer (e.g. sales and use tax). Disaggregation of Revenue 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. 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 the Contracts with customers that are month-to-month arrangements (volume customers) on a pay-as-you-go basis, where on a pay-as-you-go basis are 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. 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 December 31, 2018 $ 23,264 $ 1,640 $ 39,846 $ 146 $ 39,992 Balance at December 31, 2019 31,181 1,871 49,260 299 49,559 Revenue recognized during the year ended December 31, 2019 from amounts included in deferred revenue at the beginning of the period was approximately $39.6 million. During the year ended December 31, 2019, 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 $5.9 million as of December 31, 2019 and December 31, 2018, respectively. Amortization expense recognized for costs to obtain a contract was $7.3 million and $7.2 million during the year ended December 31, 2019 and December 31, 2018, respectively. Transaction Price Allocated to Future Performance Obligations As of December 31, 2019, the total aggregate transaction price allocated to the unsatisfied performance obligations for subscription and support contracts was approximately $128.9 million, of which approximately $100.6 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 December 2022. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 5. Intangible Assets and Goodwill Finite-lived intangible assets consist of the following as of December 31, 2019: Description Weighted Gross Accumulated Net Developed technology 7 $ 16,154 $ 12,714 $ 3,440 Customer relationships 9 15,487 5,052 10,435 Non-compete 3 1,912 1,912 — Tradename 3 368 368 — Total $ 33,921 $ 20,046 $ 13,875 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 The following table summarizes amortization expense related to intangible assets for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Cost of subscription and support revenue $ 1,621 $ 1,651 $ 2,031 Research and development — — 11 Sales and marketing 1,584 666 692 $ 3,205 $ 2,317 $ 2,734 The estimated remaining amortization expense for each of the five succeeding years and thereafter is as follows: Year Ending December 31, Amount 2020 $ 3,410 2021 2,994 2022 2,037 2023 1,793 2024 1,571 2025 and thereafter 2,070 Total $ 13,875 The carrying amount of goodwill was $60,902 and 50,776 as of December 31, 2019 and 2018, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 6. 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, 2019 and 2018: December 31, 2019 Quoted Active Markets for Identical (Level 1) Significant Observable (Level 2) Significant Unobservable (Level 3) Total Assets: Money market funds $ 41 $ — $ — $ 41 Total assets $ 41 $ — $ — $ 41 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 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, 2019 or 2018. |
Right-of-Use Asset and Lease Li
Right-of-Use Asset and Lease Liability | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Right-of-Use Asset and Lease Liability | 7. Right-of-Use Effective January 1, 2019, the Company adopted ASC 842, which replaced the existing guidance for leases using the transition method introduced by ASU 2018-11, Under ASC 842, a right-of-use right-of-use catch-up The new standard provided various practical expedients, which were assessed to determine the ultimate impact of the new standard upon adoption. The Company elected the package of practical expedients, which permits the Company to not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases and (3) any initial direct costs for any existing leases as of the effective date. The Company also elected the practical expedients to not apply the recognition requirements in the standard to a lease that at commencement date has a lease term of twelve months or less and does not contain a purchase option that it is reasonably certain to exercise and to not separate lease and related non-lease The Company leases its facilities under non-cancelable Right-of-use Right-of-use The Company’s rent m , million $ 6.6 The Company entered into three operating lease agreements in the current year, resulting in the recording of an initial liability and corresponding right-of-use asset 3.5 The weighted-average remaining non-cancelable three December 31, . The Company’s operating leases expire at various dates through 2025. The following shows the undiscounted cash flows for the remaining years under operating leases at December 31, 2019: Year Ending December 31, Operating 2020 $ 6,786 2021 6,186 2022 2,840 2023 1,644 2024 1,525 2025 and thereafter 210 Total operating lease commitments 19,191 Less imputed interest (1,316 ) Total lease liabilities $ 17,875 Legal Matters The Company, from time to time, is party to litigation arising in the ordinary course of business. Management does not believe that the outcome of these claims will have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company based on the status of proceedings at this time. 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, 2019, 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, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 8. 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, 2019 and 2018. Equity Incentive Plans At December 31, 2019, 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 2019 and 2018, the Company granted an aggregate of 641,000 and 1,169,000 restricted stock units, respectively, 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. The Company determined that a portion of the performance-based restricted stock units are probable of vesting in the first quarter of 2020. As such, the Company recognized $2.9 million of stock-based compensation expense relating to performance-based awards for the year ended December 31, 2019. The following is a summary of the stock option activity for all stock option plans during the year ended December 31, 2019: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (1) Outstanding at December 31, 2018 2,737,655 $ 8.57 Granted 770,038 9.89 Exercised (466,110 ) 7.45 $ 1,286 Cancelled (562,160 ) 9.57 Outstanding at December 31, 2019 2,479,423 $ 8.96 7.24 $ 1,558 Exercisable at December 31, 2019 1,117,747 $ 8.32 5.37 $ 1,291 (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, 2019 of $8.69 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, 2018 and 2017 was $4,897 and $1,243, 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, 2019: Shares Weighted Average Date Fair Unvested by December 31, 2018 3,033,582 $ 8.07 Granted 2,032,072 10.59 Vested and issued (537,362 ) 7.91 Cancelled (901,928 ) 8.45 Unvested by December 31, 2019 3,626,364 $ 9.03 The aggregate fair value of vested and issued RSUs for the years ended December 31, 2019, 2018 and 2017 was $5.9 million, $5.5 million and $4.2 million, respectively. Common Stock Reserved for Future Issuance At December 31, 2019, the Company has reserved the following shares of common stock for future issuance: December 31, Common stock options outstanding 2,479,423 Restricted stock unit awards outstanding 3,626,364 Shares available for issuance under all stock-based compensation plans 2,136,689 Total shares of authorized common stock reserved for future issuance 8,242,476 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes Loss before the provision for income taxes consists of the following: Year Ended December 31, 2019 2018 2017 Domestic $ (23,388 ) $ (15,026 ) $ (20,528 ) Foreign 2,045 1,599 1,379 Total $ (21,343 ) $ (13,427 ) $ (19,149 ) The provision for income taxes in the accompanying consolidated financial statements consists of the following: Year Ended December 31, 2019 2018 2017 Current provision: Federal $ — $ — $ — State 18 19 21 Foreign 626 464 311 Total current 644 483 332 Deferred (benefit): Federal 7 — — State 8 — — Foreign (99 ) 118 38 Total deferred (84 ) 118 38 Total provision $ 560 $ 601 $ 370 A reconciliation of the U.S. federal statutory rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2019 2018 2017 Tax at statutory rates (21.0 )% (21.0 )% (34.0 )% State income taxes (4.2 ) (5.5 ) (4.1 ) Change in tax rate (0.1 ) — 103.9 Permanent differences 5.0 7.0 7.1 Foreign rate differential 0.7 1.4 (0.7 ) Research and development credits (4.4 ) (6.1 ) (3.7 ) Change in valuation allowance 26.8 29.2 (66.3 ) Other, net (0.2 ) (0.5 ) (0.3 ) Effective tax rate 2.6 % 4.5 % 1.9 % The income tax effect of each type of temporary difference and carryforward as of December 31, 2019 and 2018 is as follows: As of December 31, 2019 2018 Deferred tax assets: Net operating loss carry-forwards $ 43,886 $ 41,440 Tax credit carry-forwards 11,602 10,327 Stock-based compensation 1,364 974 Fixed Assets 213 179 Account receivable reserves 420 136 Accrued compensation 1,026 910 Lease Liability 4,005 — Capitalized start-up 46 92 Other temporary differences 1,479 325 Total deferred tax assets 64,041 54,383 Deferred tax liabilities: Other deferred tax liabilities (1,422 ) (1,520 ) ROU Asset (3,951 ) — Intangible assets (3,435 ) (3,100 ) Total deferred tax liabilities (8,808 ) (4,620 ) Valuation allowance (55,507 ) (49,791 ) Net deferred tax asset (liability) $ (274 ) $ (28 ) 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 substantially all of its remaining U.S. net deferred tax assets as of December 31, 2019 and all of its net deferred tax assets as of December 31, 2018, 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 2018 to 2019 of $5.7 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, 2019, the Company had federal net operating losses of approximately $185.6 million, of which $161.8 million are available to offset future taxable income, if any, through 2037 and $23.8 million which are available to offset future taxable income indefinitely. As of December 31, 2019, the Company had state net operating losses of approximately $84.1 million, of which $82.4 million are available to offset future taxable income, if any, through 2039 and $1.7 million which are available to offset future taxable income indefinitely. The Company also had federal and state research and development tax credits of $7.8 million and $4.8 million, respectively, which expire in various amounts through 2039. 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, 2019. 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, 2019 and 2018, 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 2016 through 2019. 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, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt On December 14, 2018, the Company 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, the Company can borrow up to $30.0 million. Borrowings under the Line of Credit are secured by substantially all of the Company’s assets, excluding its 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 and (B) 4%. Under the Loan Agreement, the Company must comply with certain financial covenants, including maintaining a minimum asset coverage ratio. If the outstanding principal during any month is at least $15.0 million, the Company must also maintain a minimum net income threshold based on non-GAAP |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 11. Accrued Expenses Accrued expenses consist of the following: December 31, 2019 2018 Accrued payroll and related benefits $ 7,195 $ 4,777 Accrued sales and other taxes 2,323 1,639 Accrued professional fees and outside contractors 3,638 1,253 Accrued content delivery 3,821 2,979 Accrued other liabilities 3,948 3,334 Total $ 20,925 $ 13,982 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 12. 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, 2019 2018 2017 Revenue: North America $ 97,309 $ 88,778 $ 91,358 Europe 31,587 27,754 24,425 Japan 22,150 21,960 16,881 Asia Pacific 32,391 25,766 22,539 Other 1,018 575 710 Total revenue $ 184,455 $ 164,833 $ 155,913 North America is comprised of revenue from the United States, Canada and Mexico. Revenue from customers located in the United States was $90,515, $83,435 and $85,459 during the years ended December 31, 2019, 2018 and 2017, 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, 2019 and 2018. As of December 31, 2019 and December 31, 2018, 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, 2019 | |
Retirement Benefits [Abstract] | |
401(k) Savings Plan | 13. 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, 2019, 2018 and 2017, the Company has made contributions to the plan of $392, $424 and $425, respectively. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 14. Quarterly Financial Data (unaudited) The following table presents certain unaudited quarterly financial information for the eight quarters in the period ended December 31, 2019. 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 $ 47,603 $ 47,434 $ 47,582 $ 41,836 $ 40,864 $ 41,121 $ 41,654 $ 41,194 Gross profit 28,803 29,120 25,973 25,090 24,387 24,803 25,036 23,983 Loss from operations (6,870 ) (2,358 ) (7,082 ) (4,753 ) (2,527 ) (3,141 ) (5,017 ) (2,416 ) Net loss (6,712 ) (2,970 ) (7,238 ) (4,983 ) (2,617 ) (3,502 ) (5,652 ) (2,257 ) Basic and diluted net loss per share (0.17 ) (0.08 ) (0.19 ) (0.14 ) (0.07 ) (0.10 ) (0.16 ) (0.06 ) |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 15. Restructuring During the second quarter of 2019, the Company committed to an action to restructure certain parts of the Company with the intent of aligning skills with the Company’s strategy and facilitating cost efficiencies and savings. As a result, certain headcount reductions were necessary. The Company incurred approximately $752 in restructuring charges during the second quarter of 2019. The restructuring charges reflect post-employment benefits and are reflected in the Condensed Consolidated Statements of Operations as follows: $186 – Cost of subscription and support revenue; $107 – Cost of professional services and other revenue; $421 – Sales and Marketing; and $38 – Research and Development. The Company has paid all amounts due relating to the restructuring and does not expect to incur any additional restructuring charges related to this action. |
Business Description (Policies)
Business Description (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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). The Company adopted ASC 842 using the additional transition method introduced by ASU 2018-11 |
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, and the realizability of the Company’s deferred tax assets. 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. |
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, 2019 and 2018 consist of the following: December 31, 2019 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Cash Demand $ 22,718 $ 22,718 $ 22,718 Money market funds Demand 41 41 41 Total cash and cash equivalents $ 22,759 $ 22,759 $ 22,759 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 |
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, 2019 and 2018, 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 6 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, 2019, 2018 and 2017: Balance at Provision Write-offs Balance at Year ended December 31, 2019 $ 190 $ 1,137 $ (423 ) $ 904 Year ended December 31, 2018 146 199 (155 ) 190 Year ended December 31, 2017 154 203 (211 ) 146 |
Off-Balance Sheet Risk and Concentration of Credit Risk | Off-Balance The Company has no significant off-balance For the years ended December 31, 2019, 2018 and 2017, no individual customer accounted for more than 10% of total revenue. As of December 31, 2019 and 2018, 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, 2019, 2018 and 2017, the Company capitalized $6,574, $3,152 and $3,239, 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, 2019 2018 Computer equipment 3 $ 14,807 $ 14,076 Software 3 - 6 27,882 21,208 Furniture and fixtures 5 2,965 2,929 Leasehold improvements Shorter of lease 1,821 1,665 47,475 39,878 Less accumulated depreciation and amortization 35,389 30,175 $ 12,086 $ 9,703 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. |
Right-of-Use Asset and Lease Liability | Right-of-Use The Company accounts for its right-of-use Leases 2018-11. right-of-use |
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, 2019, 2018 and 2017, 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. For further discussion of the Company’s accounting policies related to business combinations, see Note 3. |
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, 2019 and 2018. 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. 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 number of common shares outstanding during the period. The Company has excluded other potentially dilutive shares, which include warrants to purchase common stock and outstanding common stock options and unvested restricted stock units, from the 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, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Options outstanding 2,479 2,738 4,127 Restricted stock units outstanding 3,626 3,034 2,050 |
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, 2019, the Company had five stock-based compensation plans, which are more fully described in Note 8. 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, 2019, 2018 and 2017, was $4.49, $4.11 and $3.08 per share, respectively. The weighted-average assumptions utilized to determine such values are presented in the following table: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 2.25 % 2.88 % 2.08 % Expected volatility 44 % 43 % 42 % Expected life (in years) 6.2 6.2 6.1 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. The Company recognized $2.9 million of stock-based compensation expense relating to performance-based awards for the year ended December 31, 2019. As of December 31, 2019, there was $22,423 of total unrecognized stock-based compensation expense related to stock-based awards that is expected to be recognized over a weighted-average period of 2.15 years. The following table summarizes stock-based compensation expense as included in the consolidated statement of operations for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Cost of subscription and support revenue $ 683 $ 481 $ 439 Cost of professional services and other revenue 289 242 251 Research and development 1,444 1,281 1,563 Sales and marketing 2,713 2,377 2,750 General and administrative 4,130 2,268 2,240 $ 9,259 $ 6,649 $ 7,243 Upon the adoption of ASU 2016-09 ASU 2016-09, See Note 8 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, 2019. |
Advertising Costs | Advertising Costs Advertising costs are charged to operations as incurred. The Company incurred advertising costs of $2,658, $2,657and $2,485 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Merger-related Costs | Merger-related Costs Merger-related costs consist of expenses related to mergers and acquisitions, integration costs and general corporate development activities. In 2019, merger-related costs incurred were primarily in connection with the entry into a definitive agreement in February 2019 to acquire the online video player related assets from Ooyala, Inc. and certain of its subsidiaries and costs related to the transition of Ooyala customers to the Company’s technology. The Company incurred merger-related costs of $11,447, $716 and $0 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Recent Accounting Pronouncements and Standards | Recent Accounting Pronouncements and Standards Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, |
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 a cumulative catch-up adjustment to the Revenue Recognition a cumulative catch-up adjustment 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, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents as of December 31, 2019 and 2018 consist of the following: December 31, 2019 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Cash Demand $ 22,718 $ 22,718 $ 22,718 Money market funds Demand 41 41 41 Total cash and cash equivalents $ 22,759 $ 22,759 $ 22,759 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 |
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, 2019, 2018 and 2017: Balance at Provision Write-offs Balance at Year ended December 31, 2019 $ 190 $ 1,137 $ (423 ) $ 904 Year ended December 31, 2018 146 199 (155 ) 190 Year ended December 31, 2017 154 203 (211 ) 146 |
Property and Equipment | Property and equipment consists of the following: Estimated Useful Life (in Years) December 31, 2019 2018 Computer equipment 3 $ 14,807 $ 14,076 Software 3 - 6 27,882 21,208 Furniture and fixtures 5 2,965 2,929 Leasehold improvements Shorter of lease 1,821 1,665 47,475 39,878 Less accumulated depreciation and amortization 35,389 30,175 $ 12,086 $ 9,703 |
Outstanding 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, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Options outstanding 2,479 2,738 4,127 Restricted stock units outstanding 3,626 3,034 2,050 |
Weighted Average Assumptions Utilized | The weighted-average fair value of options granted during the years ended December 31, 2019, 2018 and 2017, was $4.49, $4.11 and $3.08 per share, respectively. The weighted-average assumptions utilized to determine such values are presented in the following table: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 2.25 % 2.88 % 2.08 % Expected volatility 44 % 43 % 42 % Expected life (in years) 6.2 6.2 6.1 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, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Cost of subscription and support revenue $ 683 $ 481 $ 439 Cost of professional services and other revenue 289 242 251 Research and development 1,444 1,281 1,563 Sales and marketing 2,713 2,377 2,750 General and administrative 4,130 2,268 2,240 $ 9,259 $ 6,649 $ 7,243 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Acquisition [Line Items] | |
Schedule of Total Purchase Price | The total purchase price for Ooyala has been allocated as follows: Accounts receivable $ 3,175 Other tangible assets $ 811 Identifiable intangible assets $ 9,636 Goodwill $ 4,585 Deferred revenue $ (6,633 ) Other liabilities $ (196 ) Total estimated purchase price $ 11,378 |
Schedule of Identifiable Intangible Assets Acquired and Their respective Useful Lives | The following are the identifiable intangible assets acquired and their respective useful lives, as determined based on preliminary valuations: Amount Useful Life Customer relationships $ 8,998 7 Developed technology 638 1 Total $ 9,636 |
Schedule of Estimated Remaining Amortization Expense | The estimated amortization expense for 2019 and for each of the five succeeding years and thereafter is as follows: Year Ending December 31, Amount 2019 $ 1,443 2020 1,445 2021 1,286 2022 1,285 2023 1,285 2024 and thereafter 2,892 Total $ 9,636 |
Schedule of Pro Forma Financial Information | The pro forma information for all periods presented also includes the effects of business combination accounting resulting from the acquisition. Year Ended December 31, 2019 2018 Total revenue $ 192,070 $ 195,293 Net loss (20,616 ) (16,955 ) Earnings per share—basic and diluted (0.54 ) (0.46 ) |
Other Business Combinations [Member] | |
Business Acquisition [Line Items] | |
Schedule of Total Purchase Price | The total purchase price for the August Acquisition has been allocated as follows: Cash $ 981 Accounts receivable $ 393 Other tangible assets $ 210 Identifiable intangible assets $ 1,525 Goodwill $ 5,541 Accounts payable $ (177 ) Deferred revenue $ (138 ) Accrued expenses $ (322 ) Deferred tax liability $ (333 ) Total estimated purchase price $ 7,680 |
Schedule of Identifiable Intangible Assets Acquired and Their respective Useful Lives | The following are the identifiable intangible assets acquired and their respective useful lives, as determined based on preliminary valuations: Amount Useful Life Developed technology $ 232 4 Customer relationships 1,293 4 Total $ 1,525 |
Schedule of Estimated Remaining Amortization Expense | The estimated remaining amortization expense for 2019 and for each of the five succeeding years and thereafter is as follows: Year Ending December 31, Amount 2019 $ 160 2020 381 2021 381 2022 381 2023 222 2024 and thereafter — Total $ 1,525 |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the year ended December 31, 2019 were as follows: Balance as of January 1, 2019 $ 50,776 Goodwill from acquisitions 10,126 Balance as of December 31, 2019 $ 60,902 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
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 December 31, 2018 $ 23,264 $ 1,640 $ 39,846 $ 146 $ 39,992 Balance at December 31, 2019 31,181 1,871 49,260 299 49,559 |
Balance Sheet [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
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 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite Lived Intangible Assets | Finite-lived intangible assets consist of the following as of December 31, 2019: Description Weighted Gross Accumulated Net Developed technology 7 $ 16,154 $ 12,714 $ 3,440 Customer relationships 9 15,487 5,052 10,435 Non-compete 3 1,912 1,912 — Tradename 3 368 368 — Total $ 33,921 $ 20,046 $ 13,875 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 |
Amortization Expense Related to Intangible Assets | The following table summarizes amortization expense related to intangible assets for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Cost of subscription and support revenue $ 1,621 $ 1,651 $ 2,031 Research and development — — 11 Sales and marketing 1,584 666 692 $ 3,205 $ 2,317 $ 2,734 |
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 2020 $ 3,410 2021 2,994 2022 2,037 2023 1,793 2024 1,571 2025 and thereafter 2,070 Total $ 13,875 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018: December 31, 2019 Quoted Active Markets for Identical (Level 1) Significant Observable (Level 2) Significant Unobservable (Level 3) Total Assets: Money market funds $ 41 $ — $ — $ 41 Total assets $ 41 $ — $ — $ 41 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 |
Right-of-Use Asset and Lease _2
Right-of-Use Asset and Lease Liability (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Maturity Analysis of Undiscounted Cash Flows of Operating Lease | The following shows the undiscounted cash flows for the remaining years under operating leases at December 31, 2019: Year Ending December 31, Operating 2020 $ 6,786 2021 6,186 2022 2,840 2023 1,644 2024 1,525 2025 and thereafter 210 Total operating lease commitments 19,191 Less imputed interest (1,316 ) Total lease liabilities $ 17,875 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (1) Outstanding at December 31, 2018 2,737,655 $ 8.57 Granted 770,038 9.89 Exercised (466,110 ) 7.45 $ 1,286 Cancelled (562,160 ) 9.57 Outstanding at December 31, 2019 2,479,423 $ 8.96 7.24 $ 1,558 Exercisable at December 31, 2019 1,117,747 $ 8.32 5.37 $ 1,291 (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, 2019 of $8.69 per share, or the date of exercise, as appropriate, and the exercise price of the underlying options. |
Restricted Stock Units Activity | The following table summarizes the RSU activity during the year ended December 31, 2019: Shares Weighted Average Date Fair Unvested by December 31, 2018 3,033,582 $ 8.07 Granted 2,032,072 10.59 Vested and issued (537,362 ) 7.91 Cancelled (901,928 ) 8.45 Unvested by December 31, 2019 3,626,364 $ 9.03 |
Schedule of Shares of Common Stock Reserved for Future Issuance | At December 31, 2019, the Company has reserved the following shares of common stock for future issuance: December 31, Common stock options outstanding 2,479,423 Restricted stock unit awards outstanding 3,626,364 Shares available for issuance under all stock-based compensation plans 2,136,689 Total shares of authorized common stock reserved for future issuance 8,242,476 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Domestic $ (23,388 ) $ (15,026 ) $ (20,528 ) Foreign 2,045 1,599 1,379 Total $ (21,343 ) $ (13,427 ) $ (19,149 ) |
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, 2019 2018 2017 Current provision: Federal $ 0 $ — $ — State 18 19 21 Foreign 626 464 311 Total current 644 483 332 Deferred (benefit): Federal 7 — — State 8 — — Foreign (99 ) 118 38 Total deferred (84 ) 118 38 Total provision $ 560 $ 601 $ 370 |
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, 2019 2018 2017 Tax at statutory rates (21.0 )% (21.0 )% (34.0 )% State income taxes (4.2 ) (5.5 ) (4.1 ) Change in tax rate (0.1 ) — 103.9 Permanent differences 5.0 7.0 7.1 Foreign rate differential 0.7 1.4 (0.7 ) Research and development credits (4.4 ) (6.1 ) (3.7 ) Change in valuation allowance 26.8 29.2 (66.3 ) Other, net (0.2 ) (0.5 ) (0.3 ) Effective tax rate 2.6 % 4.5 % 1.9 % |
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, 2019 and 2018 is as follows: As of December 31, 2019 2018 Deferred tax assets: Net operating loss carry-forwards $ 43,886 $ 41,440 Tax credit carry-forwards 11,602 10,327 Stock-based compensation 1,364 974 Fixed Assets 213 179 Account receivable reserves 420 136 Accrued compensation 1,026 910 Lease Liability 4,005 — Capitalized start-up 46 92 Other temporary differences 1,479 325 Total deferred tax assets 64,041 54,383 Deferred tax liabilities: Other deferred tax liabilities (1,422 ) (1,520 ) ROU Asset (3,951 ) — Intangible assets (3,435 ) (3,100 ) Total deferred tax liabilities (8,808 ) (4,620 ) Valuation allowance (55,507 ) (49,791 ) Net deferred tax asset (liability) $ (274 ) $ (28 ) |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses | Accrued expenses consist of the following: December 31, 2019 2018 Accrued payroll and related benefits $ 7,195 $ 4,777 Accrued sales and other taxes 2,323 1,639 Accrued professional fees and outside contractors 3,638 1,253 Accrued content delivery 3,821 2,979 Accrued other liabilities 3,948 3,334 Total $ 20,925 $ 13,982 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 Revenue: North America $ 97,309 $ 88,778 $ 91,358 Europe 31,587 27,754 24,425 Japan 22,150 21,960 16,881 Asia Pacific 32,391 25,766 22,539 Other 1,018 575 710 Total revenue $ 184,455 $ 164,833 $ 155,913 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019. 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 $ 47,603 $ 47,434 $ 47,582 $ 41,836 $ 40,864 $ 41,121 $ 41,654 $ 41,194 Gross profit 28,803 29,120 25,973 25,090 24,387 24,803 25,036 23,983 Loss from operations (6,870 ) (2,358 ) (7,082 ) (4,753 ) (2,527 ) (3,141 ) (5,017 ) (2,416 ) Net loss (6,712 ) (2,970 ) (7,238 ) (4,983 ) (2,617 ) (3,502 ) (5,652 ) (2,257 ) Basic and diluted net loss per share (0.17 ) (0.08 ) (0.19 ) (0.14 ) (0.07 ) (0.10 ) (0.16 ) (0.06 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Customer$ / sharesPlans | Dec. 31, 2018USD ($)Customer$ / shares | Dec. 31, 2017USD ($)Customer$ / shares | |
Accounting Policies [Line Items] | |||
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 | $ 6,574,000 | $ 3,152,000 | $ 3,239,000 |
Amortization of capitalized internal-use software development costs | 3,784,000 | 2,962,000 | 1,867,000 |
Depreciation and amortization, expense | 5,217,000 | 4,479,000 | $ 4,523,000 |
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 | $ 4.49 | $ 4.11 | $ 3.08 |
Unrecognized stock-based compensation expense | $ 22,423,000 | ||
Recongnized stock-based compensation | $ 2,900,000 | ||
Unrecognized compensation cost, recognition period | 2 years 1 month 24 days | ||
Advertising costs | $ 2,658,000 | $ 2,657,000 | $ 2,485,000 |
Merger related costs | $ 11,447,000 | $ 716,000 | $ 0 |
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, 2019 | Dec. 31, 2018 |
Investment Holdings [Line Items] | ||
Amortized Cost | $ 22,759 | $ 29,306 |
Fair Market Value | 22,759 | 29,306 |
Balance Per Balance Sheet | 22,759 | 29,306 |
Cash [Member] | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 22,718 | 21,007 |
Fair Market Value | 22,718 | 21,007 |
Balance Per Balance Sheet | 22,718 | 21,007 |
Money Market Funds [Member] | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 41 | 8,299 |
Fair Market Value | 41 | 8,299 |
Balance Per Balance Sheet | $ 41 | $ 8,299 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Balance at Beginning of Period | $ 190 | $ 146 | $ 154 |
Provision | 1,137 | 199 | 203 |
Write-offs | (423) | (155) | (211) |
Balance at End of Period | $ 904 | $ 190 | $ 146 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 47,475 | $ 39,878 |
Less accumulated depreciation and amortization | 35,389 | 30,175 |
Property and equipment, net | $ 12,086 | 9,703 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in Years) | 3 years | |
Property and equipment, gross | $ 14,807 | 14,076 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life (in Years) | 3 years | |
Property and equipment, gross | $ 27,882 | 21,208 |
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 | $ 2,965 | 2,929 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,821 | $ 1,665 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Outstanding Common Shares Excluded from Computation of Dilutive Net Loss per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 2,479 | 2,738 | 4,127 |
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 | 3,626 | 3,034 | 2,050 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Weighted Average Assumptions Utilized (Detail) - Stock Compensation Plan [Member] | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.25% | 2.88% | 2.08% |
Expected volatility | 44.00% | 43.00% | 42.00% |
Expected life (in years) | 6 years 2 months 12 days | 6 years 2 months 12 days | 6 years 1 month 6 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 9,259 | $ 6,649 | $ 7,243 |
Subscription and Support Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 683 | 481 | 439 |
Professional Services and Other Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 289 | 242 | 251 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 1,444 | 1,281 | 1,563 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 2,713 | 2,377 | 2,750 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 4,130 | $ 2,268 | $ 2,240 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 01, 2019 | Apr. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||
Merger related costs | $ 11,447 | $ 716 | $ 0 | ||
Ooyala [Member] | |||||
Subsequent Event [Line Items] | |||||
Business Combination Revenue Actual | 17,900 | ||||
Business Combination Gross profit Actual | 3,000 | ||||
Ooyala [Member] | Asset Purchase and Sale Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Unregistered shares of common stock | 1,056,763 | ||||
Unregistered shares of common stock, value | $ 8,900 | ||||
Business acquisition, cash paid | 2,600 | ||||
Cash consideration, escrow amount | $ 2,650 | ||||
Merger related costs | 3,400 | ||||
Other Business Combination [Member] | |||||
Subsequent Event [Line Items] | |||||
Merger related costs | $ 400,000 | ||||
Other Business Combination [Member] | Share Purchase Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Unregistered shares of common stock | 270,686 | ||||
Unregistered shares of common stock, value | $ 3,400 | ||||
Business acquisition, cash paid | 3,300 | ||||
Cash consideration, escrow amount | $ 488 | ||||
Unregistered shares of common stock ,escrow account | 40,603 | ||||
Business acquisition, cash paid for cash acquired | $ 1,000 |
Business Combinations - Schedul
Business Combinations - Schedule of Total Purchase Price (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Goodwill | $ 60,902 | $ 50,776 |
Other Business Combination [Member] | ||
Business Acquisition [Line Items] | ||
Cash | 981 | |
Accounts receivable | 393 | |
Other tangible assets | 210 | |
Identifiable intangible assets | 1,525 | |
Goodwill | 5,541 | |
Accounts payable | (177) | |
Deferred revenue | (138) | |
Accrued expenses | (322) | |
Deferred tax liability | (333) | |
Total estimated purchase price | 7,680 | |
Ooyala, Inc [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 3,175 | |
Other tangible assets | 811 | |
Identifiable intangible assets | 9,636 | |
Goodwill | 4,585 | |
Deferred revenue | (6,633) | |
Other liabilites | (196) | |
Total estimated purchase price | $ 11,378 |
Business Combinations - Sched_2
Business Combinations - Schedule of Identifiable Intangible Assets Acquired and Their respective Useful Lives (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Ooyala Inc [Member] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 9,636 |
Other Business Combination [Member] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1,525 |
Customer Relationships [Member] | Ooyala Inc [Member] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 8,998 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years |
Customer Relationships [Member] | Other Business Combination [Member] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 1,293 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years |
Developed Technology Rights [Member] | Ooyala Inc [Member] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 638 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year |
Developed Technology Rights [Member] | Other Business Combination [Member] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 232 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years |
Business Combinations - Sched_3
Business Combinations - Schedule of Estimated Remaining Amortization Expense (Details 2) $ in Thousands | Dec. 31, 2019USD ($) |
2020 | $ 2,994 |
2021 | 2,037 |
2022 | 1,793 |
2023 | 1,571 |
2024 and thereafter | 2,070 |
Ooyala Inc [Member] | |
2019 | 1,443 |
2020 | 1,445 |
2021 | 1,286 |
2022 | 1,285 |
2023 | 1,285 |
2024 and thereafter | 2,892 |
Total | 9,636 |
Other Business Combination [Member] | |
2019 | 160 |
2020 | 381 |
2021 | 381 |
2022 | 381 |
2023 | 222 |
Total | $ 1,525 |
Business Combinations - Sched_4
Business Combinations - Schedule of Pro Forma Financial Information (Details 3) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Combinations [Abstract] | ||
Total revenue | $ 192,070 | $ 195,293 |
Net loss | $ (20,616) | $ (16,955) |
Earnings per share - basic and diluted | $ (0.54) | $ (0.46) |
Business Combinations - Sched_5
Business Combinations - Schedule of Goodwill (Details 4) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Business Combinations [Abstract] | |
Beginning balance | $ 50,776 |
Goodwill from acquisitions | 10,126 |
Ending balance | $ 60,902 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Changes in Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | |||||
Cash and cash equivalents | $ 22,759 | $ 29,306 | $ 26,132 | $ 36,813 | |
Accounts receivable, net | 31,181 | 23,264 | |||
Prepaid expenses | 5,171 | 4,866 | |||
Other current assets | 6,713 | 7,070 | |||
Total current assets | 65,824 | 64,506 | |||
Property and equipment, net | 12,086 | 9,703 | |||
Intangible assets, net | 13,875 | 5,919 | |||
Goodwill | 60,902 | 50,776 | |||
Other assets | 3,268 | 2,452 | |||
Total assets | 172,867 | 133,356 | |||
Current liabilities: | |||||
Accounts payable | 9,917 | 7,712 | |||
Accrued expenses | 20,925 | 13,982 | |||
Deferred revenue | 49,260 | 39,846 | |||
Total current liabilities | 86,276 | 61,540 | |||
Other liabilities | 767 | 1,202 | |||
Total liabilities | 98,744 | 62,742 | |||
Commitments and contingencies | |||||
Stockholders' equity: | |||||
Undesignated preferred stock | |||||
Common stock | 39 | 37 | |||
Additional paid-in capital | 276,365 | 251,122 | |||
Treasury stock | 871 | 871 | |||
Accumulated other comprehensive loss | (785) | (952) | |||
Accumulated deficit | (200,625) | (178,722) | |||
Total stockholders' equity | 74,123 | 70,614 | $ 66,756 | ||
Total liabilities and stockholders' equity | 172,867 | 133,356 | |||
Accounting Standards Update 2014-09 [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | $ 26,132 | ||||
Accounts receivable, net | 31,181 | 23,264 | 26,162 | ||
Prepaid expenses | 3,991 | ||||
Other current assets | 8,290 | ||||
Total current assets | 64,575 | ||||
Property and equipment, net | 9,143 | ||||
Intangible assets, net | 8,236 | ||||
Goodwill | 50,776 | ||||
Deferred tax asset | 87 | ||||
Other assets | 1,947 | ||||
Total assets | 134,764 | ||||
Current liabilities: | |||||
Accounts payable | 6,142 | ||||
Accrued expenses | 13,621 | ||||
Capital lease liability | 228 | ||||
Equipment financing | 26 | ||||
Deferred revenue | 49,260 | 39,846 | 40,799 | ||
Total current liabilities | 60,816 | ||||
Deferred revenue, net of current portion | $ 299 | $ 146 | 359 | ||
Other liabilities | 1,228 | ||||
Total liabilities | 62,403 | ||||
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 | (164,694) | ||||
Total stockholders' equity | 72,361 | ||||
Total liabilities and stockholders' equity | 134,764 | ||||
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_4
Revenue from Contracts with Customers - Summary of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 31,181 | $ 23,264 | |
Deferred Revenue (current) | 49,260 | 39,846 | |
Accounting Standards Update 2014-09 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 31,181 | 23,264 | $ 26,162 |
Contract Assets (current) | 1,871 | 1,640 | |
Deferred Revenue (current) | 49,260 | 39,846 | 40,799 |
Deferred Revenue (non- current) | 299 | 146 | $ 359 |
Total Deferred Revenue | $ 49,559 | $ 39,992 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred revenue recognized | $ 0 | $ 39,600 | |
Assets recognized to obtain a contract | 5,900 | 5,900 | |
Amortization expense recognized to obtain a contract | 7,300 | 7,200 | |
Accounting Standards Update 2014-09 [Member] | |||
Reduced accumulated deficit | $ 5,605 | $ (197) | |
Accounting Standards Update 2014-09 [Member] | Accumulated Deficit [Member] | |||
Reduced accumulated deficit | $ 1,243 | ||
Subscription and Support Revenue [Member] | |||
Revenue, performance obligation, description of timing | 2022 | ||
Unsatisfied performance obligations | $ 128,900 | ||
Subscription and Support Revenue [Member] | Next Twelve Months [Member] | |||
Unsatisfied performance obligations | $ 100,600 | ||
Professional Services [Member] | Maximum [Member] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | ||
Costs To Obtain Contract [Member] | Accounting Standards Update 2014-09 [Member] | |||
Reduced accumulated deficit | $ 4,362 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Finite Lived Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Gross Carrying Value | $ 33,921 | $ 22,760 |
Finite Lived Intangible Assets Accumulated Amortization | 20,046 | 16,841 |
Finite Lived Intangible Assets Net Carrying Value | $ 13,875 | $ 5,919 |
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 | $ 16,154 | $ 14,223 |
Finite Lived Intangible Assets Accumulated Amortization | 12,714 | 11,082 |
Finite Lived Intangible Assets Net Carrying Value | $ 3,440 | $ 3,141 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Weighted Average Estimated Useful Life (in years) | 9 years | 11 years |
Finite Lived Intangible Assets Gross Carrying Value | $ 15,487 | $ 6,257 |
Finite Lived Intangible Assets Accumulated Amortization | 5,052 | 3,479 |
Finite Lived Intangible Assets Net Carrying Value | $ 10,435 | $ 2,778 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortization Of Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | $ 3,205 | $ 2,317 | $ 2,734 |
Cost of Subscription and Support Revenue [Member] | |||
Amortization Of Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | 1,621 | 1,651 | 2,031 |
Research and Development [Member] | |||
Amortization Of Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | 11 | ||
Sales and Marketing [Member] | |||
Amortization Of Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | $ 1,584 | $ 666 | $ 692 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Estimated Remaining Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 3,410 | |
2021 | 2,994 | |
2022 | 2,037 | |
2023 | 1,793 | |
2024 | 1,571 | |
2025 and thereafter | 2,070 | |
Total | $ 13,875 | $ 5,919 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 60,902 | $ 50,776 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Company's Financial Instruments Carried at Fair Value Using Lowest Level of Input (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 41 | $ 8,299 |
Total assets | 41 | 8,299 |
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 | 41 | 8,299 |
Total assets | $ 41 | $ 8,299 |
Right-of-Use Asset and Lease _3
Right-of-Use Asset and Lease Liability - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Accounting Policies [Line Items] | ||||
Operating lease rent expense | $ 7,900 | $ 7,900 | $ 6,600 | |
Weighted-average remaining non-cancelable lease term | 3 years | |||
Weighted-average discount rate | 4.30% | |||
Right-of-use assets | $ 16,912 | |||
Lease liabilities | 17,875 | |||
Recording of initial liability and corresponding right-of-use asset | $ 3,500 | |||
Accounting Standards Update 2016-02 [Member] | ||||
Accounting Policies [Line Items] | ||||
Reversed deferred rent liability | $ 1,300 | |||
Right-of-use assets | 19,600 | |||
Lease liabilities | $ 20,900 |
Right-of-Use Asset and Lease _4
Right-of-Use Asset and Lease Liability - Undiscounted Cash Flows Under Operating Leases (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Accounting Changes and Error Corrections [Abstract] | |
2020 | $ 6,786 |
2021 | 6,186 |
2022 | 2,840 |
2023 | 1,644 |
2024 | 1,525 |
2025 and thereafter | 210 |
Total operating lease commitments | 19,191 |
Less imputed interest | (1,316) |
Total lease liabilities | $ 17,875 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Plansshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock-based compensation plans | Plans | 5 | ||
Aggregate Intrinsic Value, Exercised | $ 4,897 | $ 1,243 | |
Stock based compensation expense | $ 9,259 | 6,649 | 7,243 |
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units, Granted | shares | 2,032,072 | ||
Aggregate fair value of vested and issued RSUs | $ 5,900 | $ 5,500 | $ 4,200 |
Unicorn Media [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares received in exchange of liabilities released | shares | 135,000 | ||
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 | 400 | ||
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 Nineteen Plan [Member] | RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 2,900 | ||
Two Thousand and Nineteen Plan [Member] | RSUs [Member] | Key Executives [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units, Granted | shares | 641,000 | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding at December 31, 2019 | 2,479,423 | ||
Aggregate Intrinsic Value, Exercised | $ 4,897 | $ 1,243 | |
Options Outstanding [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding at December 31, 2018 | 2,737,655 | ||
Shares, Granted | 770,038 | ||
Shares, Exercised | (466,110) | ||
Shares, Cancelled | (562,160) | ||
Shares, Outstanding at December 31, 2019 | 2,479,423 | 2,737,655 | |
Shares, Exercisable at December 31, 2019 | 1,117,747 | ||
Weighted-Average Exercise Price, Outstanding at December 31, 2018 | $ 8.57 | ||
Weighted-Average Exercise Price, Granted | 9.89 | ||
Weighted-Average Exercise Price, Exercised | 7.45 | ||
Weighted-Average Exercise Price, Cancelled | 9.57 | ||
Weighted-Average Exercise Price, Outstanding at December 31, 2019 | 8.96 | $ 8.57 | |
Weighted-Average Exercise Price, Exercisable at December 31, 2019 | $ 8.32 | ||
Weighted-Average Remaining Contractual Term, Outstanding at December 31, 2019 | 7 years 2 months 26 days | ||
Weighted-Average Remaining Contractual Term, Exercisable at December 31, 2019 | 5 years 4 months 13 days | ||
Aggregate Intrinsic Value, Exercised | $ 1,286 | ||
Aggregate Intrinsic Value, Outstanding at December 31, 2019 | 1,558 | ||
Aggregate Intrinsic Value, Exercisable at December 31, 2019 | $ 1,291 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Parenthetical) (Detail) | Dec. 31, 2019$ / shares |
Options Outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate Intrinsic Value, Estimated per share fair value of common stock | $ 8.69 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of RSU Activity (Detail) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Unvested Shares, Ending Balance | 3,626,364 |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Unvested Shares, Beginning Balance | 3,033,582 |
Granted | 2,032,072 |
Vested and issued | (537,362) |
Cancelled | (901,928) |
Unvested Shares, Ending Balance | 3,626,364 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 8.07 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 10.59 |
Weighted Average Grant Date Fair Value, Vested and issued | $ / shares | 7.91 |
Weighted Average Grant Date Fair Value, Cancelled | $ / shares | 8.45 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 9.03 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Shares of Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Common stock options outstanding | 2,479,423 |
Restricted stock unit awards outstanding | 3,626,364 |
Shares available for issuance under all stock-based compensation plans | 2,136,689 |
Total shares of authorized common stock reserved for future issuance | 8,242,476 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure By Jurisdiction [Abstract] | |||
Domestic | $ (23,388) | $ (15,026) | $ (20,528) |
Foreign | 2,045 | 1,599 | 1,379 |
Loss before income taxes | $ (21,343) | $ (13,427) | $ (19,149) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current provision: | |||
Federal | |||
State | 18 | $ 19 | $ 21 |
Foreign | 626 | 464 | 311 |
Total current | 644 | 483 | 332 |
Deferred (benefit): | |||
Federal | 7 | ||
State | 8 | ||
Foreign | (99) | 118 | 38 |
Total deferred | (84) | 118 | 38 |
Total provision | $ 560 | $ 601 | $ 370 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax at statutory rates | (21.00%) | (21.00%) | (34.00%) |
State income taxes | (4.20%) | (5.50%) | (4.10%) |
Change in tax rate | (0.10%) | 103.90% | |
Permanent differences | 5.00% | 7.00% | 7.10% |
Foreign rate differential | 0.70% | 1.40% | (0.70%) |
Research and development credits | (4.40%) | (6.10%) | (3.70%) |
Change in valuation allowance | 26.80% | 29.20% | (66.30%) |
Other, net | (0.20%) | (0.50%) | (0.30%) |
Effective tax rate | 2.60% | 4.50% | 1.90% |
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, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carry-forwards | $ 43,886 | $ 41,440 |
Tax credit carry-forwards | 11,602 | 10,327 |
Stock-based compensation | 1,364 | 974 |
Fixed Assets | 213 | 179 |
Account receivable reserves | 420 | 136 |
Accrued compensation | 1,026 | 910 |
Lease Liability | 4,005 | |
Capitalized start-up costs | 46 | 92 |
Other temporary differences | 1,479 | 325 |
Total deferred tax assets | 64,041 | 54,383 |
Deferred tax liabilities: | ||
Other deferred tax liabilities | (1,422) | (1,520) |
Intangible assets | (3,435) | (3,100) |
ROU Asset | (3,951) | |
Total deferred tax liabilities | (8,808) | (4,620) |
Valuation allowance | (55,507) | (49,791) |
Net deferred tax asset (liability) | $ (274) | $ (28) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||||||||||
Increase in valuation allowance | $ 5,700 | ||||||||||
Net operating losses carried forward, expiration date | Dec. 31, 2039 | ||||||||||
Research and development tax credit, expiration date | Dec. 31, 2039 | ||||||||||
Federal corporate tax rate | 21.00% | 21.00% | 34.00% | ||||||||
Loss from operations | $ (6,870) | $ (2,358) | $ (7,082) | $ (4,753) | $ (2,527) | $ (3,141) | $ (5,017) | $ (2,416) | $ (21,063) | $ (13,101) | $ (19,696) |
Federal [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Net operating losses | 161,800 | 161,800 | |||||||||
Research and development tax credits | 7,800 | 7,800 | |||||||||
Loss from operations | 185,600 | ||||||||||
Operating Loss Carryforwards Indefinate Carryforward | 23,800 | 23,800 | |||||||||
State [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Net operating losses | 84,100 | 84,100 | |||||||||
Research and development tax credits | 4,800 | 4,800 | |||||||||
State [Member] | Tax Year 2019 [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Net operating losses | 1,700 | 1,700 | |||||||||
State [Member] | Tax Year 2039 [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Net operating losses | $ 82,400 | $ 82,400 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Debt instrument term | If the outstanding principal during any month is at least $15.0 million, the Company must also maintain a minimum net income threshold based on non-GAAP operating measures. |
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 | 225.00% |
Accrued Expenses - Components o
Accrued Expenses - Components of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Accrued payroll and related benefits | $ 7,195 | $ 4,777 |
Accrued sales and other taxes | 2,323 | 1,639 |
Accrued professional fees and outside contractors | 3,638 | 1,253 |
Accrued content delivery | 3,821 | 2,979 |
Accrued other liabilities | 3,948 | 3,334 |
Total | $ 20,925 | $ 13,982 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues from customers | $ 47,603 | $ 47,434 | $ 47,582 | $ 41,836 | $ 40,864 | $ 41,121 | $ 41,654 | $ 41,194 | $ 184,455 | $ 164,833 | $ 155,913 |
Number of operating segment | Segment | 1 | ||||||||||
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 | $ 90,515 | $ 83,435 | $ 85,459 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 47,603 | $ 47,434 | $ 47,582 | $ 41,836 | $ 40,864 | $ 41,121 | $ 41,654 | $ 41,194 | $ 184,455 | $ 164,833 | $ 155,913 |
North America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 97,309 | 88,778 | 91,358 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 31,587 | 27,754 | 24,425 | ||||||||
Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 22,150 | 21,960 | 16,881 | ||||||||
Asia Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | 32,391 | 25,766 | 22,539 | ||||||||
Other [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 1,018 | $ 575 | $ 710 |
401(k) Savings Plan - Additiona
401(k) Savings Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Contribution made under the plan | $ 392 | $ 424 | $ 425 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 47,603 | $ 47,434 | $ 47,582 | $ 41,836 | $ 40,864 | $ 41,121 | $ 41,654 | $ 41,194 | $ 184,455 | $ 164,833 | $ 155,913 |
Gross profit | 28,803 | 29,120 | 25,973 | 25,090 | 24,387 | 24,803 | 25,036 | 23,983 | 108,986 | 98,209 | 91,295 |
Loss from operations | (6,870) | (2,358) | (7,082) | (4,753) | (2,527) | (3,141) | (5,017) | (2,416) | (21,063) | (13,101) | (19,696) |
Net loss | $ (6,712) | $ (2,970) | $ (7,238) | $ (4,983) | $ (2,617) | $ (3,502) | $ (5,652) | $ (2,257) | $ (21,903) | $ (14,028) | $ (19,519) |
Basic and diluted net loss per share | $ (0.17) | $ (0.08) | $ (0.19) | $ (0.14) | $ (0.07) | $ (0.10) | $ (0.16) | $ (0.06) | $ (0.58) | $ (0.39) | $ (0.57) |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | $ 752 |
Cost Of Subscription And Support Revenue [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 186 |
Cost Of Professional Services And Other Revenue [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 107 |
Sales And Marketing [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | 421 |
Research And Development [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Charges | $ 38 |