Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CASA | |
Entity Registrant Name | Casa Systems Inc | |
Entity Central Index Key | 1,333,835 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 82,373,785 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 307,095 | $ 260,820 |
Accounts receivable, net of provision for doubtful accounts of $692 as of March 31, 2018 and December 31, 2017 | 88,866 | 122,634 |
Inventory | 29,354 | 36,148 |
Prepaid expenses and other current assets | 3,920 | 5,151 |
Prepaid income taxes | 1,811 | 538 |
Total current assets | 431,046 | 425,291 |
Property and equipment, net | 29,166 | 29,363 |
Accounts receivable, net of current portion | 4,326 | 4,710 |
Deferred tax assets | 8,719 | 9,718 |
Other assets | 612 | 615 |
Total assets | 473,869 | 469,697 |
Current liabilities: | ||
Accounts payable | 14,741 | 15,833 |
Accrued expenses and other current liabilities | 34,920 | 48,250 |
Accrued income taxes | 1,818 | 118 |
Deferred revenue | 27,820 | 34,224 |
Current portion of long-term debt, net of unamortized debt issuance costs | 2,161 | 2,156 |
Total current liabilities | 81,460 | 100,581 |
Accrued income taxes, net of current portion | 9,085 | 8,810 |
Deferred revenue, net of current portion | 16,576 | 14,691 |
Long-term debt, net of current portion and unamortized debt issuance costs | 294,915 | 295,459 |
Total liabilities | 402,036 | 419,541 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized as of March 31, 2018 and December 31, 2017; no shares issued and outstanding as of March 31, 2018 and December 31, 2017 | ||
Common stock, $0.001 par value; 500,000 shares authorized as of March 31, 2018 and December 31, 2017; 81,801 and 81,043 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively | 82 | 81 |
Additional paid-in capital | 131,536 | 128,798 |
Accumulated other comprehensive income | 1,356 | 194 |
Accumulated deficit | (61,141) | (78,917) |
Total stockholders’ equity | 71,833 | 50,156 |
Total liabilities and stockholders’ equity | $ 473,869 | $ 469,697 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Provision for doubtful accounts | $ 692 | $ 692 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 81,801,000 | 81,043,000 |
Common stock, shares outstanding | 81,801,000 | 81,043,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Product | $ 80,189 | $ 65,209 |
Service | 8,885 | 7,520 |
Total revenue | 89,074 | 72,729 |
Cost of revenue: | ||
Product | 25,780 | 19,132 |
Service | 1,339 | 1,257 |
Total cost of revenue | 27,119 | 20,389 |
Gross profit | 61,955 | 52,340 |
Operating expenses: | ||
Research and development | 20,530 | 14,468 |
Sales and marketing | 11,268 | 10,080 |
General and administrative | 7,188 | 4,995 |
Total operating expenses | 38,986 | 29,543 |
Income from operations | 22,969 | 22,797 |
Other income (expense): | ||
Interest income | 1,095 | 504 |
Interest expense | (4,672) | (4,193) |
Gain (loss) on foreign currency, net | (24) | 30 |
Other income, net | 201 | 119 |
Total other income (expense), net | (3,400) | (3,540) |
Income before provision for income taxes | 19,569 | 19,257 |
Provision for income taxes | 1,793 | 1,103 |
Net income | 17,776 | 18,154 |
Other comprehensive income—foreign currency translation adjustment | 1,162 | 239 |
Comprehensive income | 18,938 | 18,393 |
Net income attributable to common stockholders: | ||
Basic | 17,776 | 7,588 |
Diluted | $ 17,776 | $ 8,643 |
Net income per share attributable to common stockholders: | ||
Basic | $ 0.22 | $ 0.23 |
Diluted | $ 0.19 | $ 0.20 |
Weighted-average shares used to compute net income per share attributable to common stockholders: | ||
Basic | 81,629 | 33,618 |
Diluted | 93,594 | 43,299 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balances at Dec. 31, 2017 | $ 50,156 | $ 81 | $ 128,798 | $ 194 | $ (78,917) |
Balances, shares at Dec. 31, 2017 | 81,043 | ||||
Exercise of stock options and common stock issued upon vesting of equity awards | 675 | $ 1 | 674 | ||
Exercise of stock options and common stock issued upon vesting of equity awards, shares | 758 | ||||
Foreign currency translation adjustment, net of tax of $0 | 1,162 | 1,162 | |||
Stock-based compensation | 2,064 | 2,064 | |||
Net income | 17,776 | 17,776 | |||
Balances at Mar. 31, 2018 | $ 71,833 | $ 82 | $ 131,536 | $ 1,356 | $ (61,141) |
Balances, shares at Mar. 31, 2018 | 81,801 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Foreign currency translation adjustment, tax | $ 0 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 17,776 | $ 18,154 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,302 | 1,728 |
Stock-based compensation | 4,230 | 1,900 |
Deferred income taxes | 1,040 | 1,815 |
Excess and obsolete inventory valuation adjustment | (1,043) | 162 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 28,470 | 53,134 |
Inventory | 7,713 | (7,495) |
Prepaid expenses and other assets | 103 | 2,090 |
Prepaid income taxes | (1,273) | (4,441) |
Accounts payable | 1,644 | (12,743) |
Accrued expenses and other current liabilities | (7,162) | (10,000) |
Accrued income taxes | 1,969 | (10,746) |
Deferred revenue | (4,626) | (20,142) |
Net cash provided by operating activities | 51,143 | 13,416 |
Cash flows used in investing activities: | ||
Purchases of property and equipment | (2,539) | (1,858) |
Net cash used in investing activities | (2,539) | (1,858) |
Cash flows used in financing activities: | ||
Principal repayments of debt | (826) | (823) |
Proceeds from exercise of stock options | 675 | 40 |
Payments of dividends and equitable adjustments | (2,241) | (96,739) |
Payments of initial public offering costs | (976) | (1,245) |
Employee taxes paid related to net share settlement of equity awards | (3,788) | |
Net cash used in financing activities | (3,368) | (102,555) |
Effect of exchange rate changes on cash and cash equivalents | 1,039 | 65 |
Net increase (decrease) in cash and cash equivalents | 46,275 | (90,932) |
Cash and cash equivalents at beginning of period | 260,820 | 329,554 |
Cash and cash equivalents at end of period | 307,095 | 238,622 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 4,291 | 4,274 |
Cash paid for income taxes | 53 | 14,320 |
Supplemental disclosures of non-cash operating, investing and financing activities: | ||
Purchases of property and equipment included in accounts payable | 287 | 783 |
Prepaid expenses and other current assets included in accounts payable | 241 | 77 |
Deferred offering costs included in accounts payable and accrued expenses and other current liabilities | 171 | 375 |
Unpaid equitable adjustments included in accrued expenses and other current liabilities | 8,420 | 10,770 |
Release of customer incentives included in accounts receivable and accrued expenses and other current liabilities | $ 5,754 | $ 12,619 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | 1. Nature of Business and Basis of Presentation Casa Systems, Inc. (the “Company”) was incorporated under the laws of the State of Delaware on February 28, 2003. The Company is a global communications technology company headquartered in Andover, Massachusetts and has wholly owned subsidiaries in China, France, Canada, Ireland, Spain and the Netherlands. The Company offers solutions for next-generation centralized, distributed and virtualized architectures for cable broadband, fixed-line broadband and wireless networks. The Company’s solutions enable customers to cost-effectively and dynamically increase network speed, add bandwidth capacity and new services for consumers and enterprises, reduce network complexity and reduce operating and capital expenditures. The Company is subject to a number of risks similar to other companies of comparable size and other companies selling and providing services to the communications industry. These risks include, but are not limited to, the level of capital spending by the communications industry, a lengthy sales cycle, dependence on the development of new products and services, unfavorable economic and market conditions, competition from larger and more established companies, limited management resources, dependence on a limited number of contract manufacturers and suppliers, the rapidly changing nature of the technology used by the communications industry and reliance on resellers and sales agents. Failure by the Company to anticipate or to respond adequately to technological developments in its industry, changes in customer or supplier requirements, changes in regulatory requirements or industry standards, or any significant delays in the development or introduction of products could have a material adverse effect on the Company’s operating results, financial condition and cash flows. In December 2017, the Company closed its initial public offering (“IPO”) of 6,900 shares of its common stock at an offering price of $13.00 per share, including 900 shares pursuant to the underwriters’ option to purchase additional shares of the Company’s common stock. The Company received net proceeds of $79,327, after deducting underwriting discounts and commissions of $6,279 and offering costs of $4,094. Upon the closing of the IPO, all 4,038 shares of the Company’s then-outstanding preferred stock automatically converted on a ten-for-one basis into an aggregate of 40,382 shares of the Company’s common stock. Upon conversion of the preferred stock, the Company reclassified $97,439 from temporary equity to additional paid-in capital and $40 from temporary equity to common stock. The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and may remain an emerging growth company until the last day of the fiscal year following the fifth anniversary of the initial public offering, subject to specified conditions. The JOBS Act provides that an emerging growth company can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company has elected not to “opt out” of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company will adopt the new or revised standard at the time private companies adopt the new or revised standard, provided that the Company continues to be an emerging growth company. The JOBS Act provides that the decision to take advantage of the extended transition period for complying with new or revised accounting standards is irrevocable. The accompanying condensed consolidated balance sheet as of March 31, 2018, the condensed consolidated statements of operations and comprehensive income for the three months ended March 31, 2018 and 2017, the condensed consolidated statements of cash flows for the three months ended March 31, 2018 and 2017 and the condensed consolidated statements of stockholders’ equity for the three months ended March 31, 2018 are unaudited. The financial data and other information disclosed in these notes related to the three months ended March 31, 2018 and 2017 are also unaudited. The accompanying condensed consolidated balance sheet as of December 31, 2017 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2017. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 7, 2018 (the “Annual Report on Form 10-K”). There have been no material changes to the Company’s accounting policies from those disclosed in the Annual Report on Form 10-K that would have a material impact on the Company’s condensed consolidated financial statements. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and, in the opinion of management, include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results of operations and cash flows to be anticipated for the full year ending December 31, 2018 or any future period. The accompanying condensed consolidated financial statements include the accounts and results of operations of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon by management in preparing these condensed consolidated financial statements include revenue recognition, provision for doubtful accounts, reserves for excess and obsolete inventory, valuation of inventory and deferred inventory costs, the expensing and capitalization of software-related research and development costs, amortization and depreciation periods, recoverability of net deferred tax assets, valuations of uncertain tax positions, provision for income taxes, warranty allowances, the valuation of the Company’s common stock and other equity instruments, and stock-based compensation expense. Although the Company regularly reassesses the assumptions underlying 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 existing at the time such estimates are made. Accounts Receivable Accounts receivable are presented net of a provision for doubtful accounts, which is an estimate of amounts that may not be collectible. Accounts receivable for arrangements with customary payment terms, which are one year or less, are recorded at invoiced amounts and do not bear interest. The Company generally does not require collateral, but the Company may, in certain instances based on its credit assessment, require full or partial prepayment prior to shipment. For certain customers and/or for certain transactions, the Company provides extended payment arrangements to allow the customer to pay for the purchased equipment in monthly, other periodic or lump-sum payments over a period of one to five years. Certain of these arrangements are collateralized by the underlying assets during the term of the arrangement. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. In addition, amounts recorded as current and non-current accounts receivable for extended payment term arrangements at any balance sheet date have a corresponding amount recorded as deferred revenue because the Company defers the recognition of revenue for all extended payment term arrangements and only recognizes revenue to the extent of the payment amounts that become due from the customer. Although there is no contractual interest rate for customer arrangements with extended payment terms, the Company imputes interest on the accounts receivable related to these arrangements and reduces the arrangement fee that will be recognized as revenue for the amount of the imputed interest, which is recorded as interest income over the payment term using the effective interest method. For the periods presented in the accompanying condensed consolidated financial statements, the impact of imputing interest on revenue and interest income was insignificant. Accounts receivable as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 Current portion of accounts receivable, net: Accounts receivable, net $ 71,164 $ 106,114 Amounts due from related party (see Note 14) 15,067 13,367 Accounts receivable, extended payment arrangements 2,635 3,153 88,866 122,634 Accounts receivable, net of current portion: Accounts receivable, extended payment arrangements 4,326 4,710 $ 93,192 $ 127,344 The Company performs ongoing credit evaluations of its customers and, if necessary, provides a provision for doubtful accounts and expected losses. When assessing and recording its provision for doubtful accounts, the Company evaluates the age of its accounts receivable, current economic trends, creditworthiness of the customers, customer payment history, and other specific customer and transaction information. The Company writes off accounts receivable against the provision when it determines a balance is uncollectible and no longer actively pursues collection of the receivable. Adjustments to the provision for doubtful accounts are recorded as general and administrative expenses in the consolidated statements of operations and comprehensive income. As of March 31, 2018 and December 31, 2017, the Company concluded that all amounts due under extended payment term arrangements were collectible and no reserve for credit losses was recorded. During the three months ended March 31, 2018 and 2017, the Company did not provide a reserve for credit losses and did not write off any uncollectible receivables due under extended payment term arrangements. Concentration of Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash and cash equivalents consist of demand deposits, savings accounts, commercial paper, money market mutual funds, and certificates of deposit with financial institutions, which may exceed Federal Deposit Insurance Corporation limits. The Company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. Significant customers are those that represent 10% or more of revenue or accounts receivable as set forth in the following table: Revenue Accounts Receivable, Net Three Months Ended March 31, March 31, December 31, 2018 2017 2018 2017 Customer A 27 % 13 % 25 % 44 % Customer B 18 % 21 % 16 % 10 % Customer C 12 % * 11 % * Customer D * * * 17 % Customer E * 14 % * * * Less than 10% of total Customer B is a related party, Liberty Global Affiliates (see Note 14). Certain of the components and subassemblies included in the Company’s products are obtained from a single source or a limited group of suppliers. In addition, the Company primarily relies on two third parties to manufacture certain components of its products. Although the Company seeks to reduce dependence on those limited sources of suppliers and manufacturers, the partial or complete loss of certain of these sources could have a material adverse effect on the Company’s operating results, financial condition and cash flows and damage its customer relationships. Impact of Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments This guidance is effective for public companies for annual reporting periods beginning after December 15, 2019 and for interim periods within those fiscal years. This guidance is effective for private companies, and emerging growth companies that choose to take advantage of the extended transition periods, for annual reporting periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Activities |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | 3. Inventory Inventory as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 Raw materials $ 4,753 $ 5,135 Work in process — 7 Finished goods: Manufactured finished goods 31,008 36,321 Deferred inventory costs 1,222 3,344 36,983 44,807 Valuation adjustment for excess and obsolete inventory (7,629 ) (8,659 ) $ 29,354 $ 36,148 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 Computers and purchased software $ 13,377 $ 12,343 Leasehold improvements 1,295 1,268 Furniture and fixtures 1,831 1,752 Machinery and equipment 18,798 17,911 Land 3,091 3,091 Building 4,765 4,765 Building improvements 5,004 4,906 Trial systems at customers’ sites 7,392 7,458 55,553 53,494 Less: Accumulated depreciation and amortization (26,387 ) (24,131 ) $ 29,166 $ 29,363 During the three months ended March 31, 2018 and 2017, the Company transferred trial systems from inventory into property and equipment with values of ($65) and $435, respectively, net of transfers of trial systems to cost of revenue. In addition, the Company transferred $65 and $495 of equipment from inventory into property and equipment during the three months ended March 31, 2018 and 2017, respectively. Total depreciation and amortization expense was $2,302 and $1,728 for the three months ended March 31, 2018 and 2017, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 5. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 Accrued compensation and related taxes $ 14,787 $ 22,465 Accrued warranty 1,131 1,246 Dividends and equitable adjustments payable (see Note 10) 8,420 10,661 Accrued customer incentives 4,428 8,437 Other accrued expenses 6,154 5,441 $ 34,920 $ 48,250 Accrued Warranty Substantially all of the Company’s products are covered by warranties for software and hardware for periods ranging from 90 days to one year. In addition, in conjunction with customers’ renewals of maintenance and support contracts, the Company offers an extended warranty for periods typically of one to three years for agreed-upon fees. In the event of a failure of a hardware product or software covered by these warranties, the Company must repair or replace the software or hardware or, if those remedies are insufficient, and at the discretion of the Company, provide a refund. The Company’s warranty reserve, which is included in accrued expenses and other current liabilities in the consolidated balance sheets, reflects estimated material, labor and other costs related to potential or actual software and hardware warranty claims for which the Company expects to incur an obligation. The Company’s estimates of anticipated rates of warranty claims and the costs associated therewith are primarily based on historical information and future forecasts. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the historical data used to calculate the adequacy of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be required. A summary of changes in the amount reserved for warranty costs for the three months ended March 31, 2018 and 2017 is as follows: Three Months Ended March 31, 2018 2017 Warranty reserve at beginning of period $ 1,246 $ 1,256 Provisions 353 617 Charges (468 ) (467 ) Warranty reserve at end of period $ 1,131 $ 1,406 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: Level 1— Quoted prices in active markets for identical assets and liabilities. Level 2— Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities at the measurement date; quoted prices in markets that are not active for identical or similar assets and liabilities; or other inputs that are observable or can be corroborated by observable market data. Level 3— Unobservable inputs that involve management judgment and are supported by little or no market activity, including pricing models, discounted cash flow methodologies and similar techniques. The following tables present information about the fair value of the Company’s financial assets and liabilities as of March 31, 2018 and December 31, 2017 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of March 31, 2018 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 23,826 $ — $ 23,826 Commercial paper — 48,392 — 48,392 Money market mutual funds 223,111 — — 223,111 $ 223,111 $ 72,218 $ — $ 295,329 Liabilities: SARs $ — $ — $ 4,321 $ 4,321 Foreign currency forward contracts — 217 — 217 $ — $ 217 $ 4,321 $ 4,538 Fair Value Measurements as of December 31, 2017 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 18,905 $ — $ 18,905 Commercial paper — 11,483 — 11,483 Money market mutual funds 224,555 — — 224,555 $ 224,555 $ 30,388 $ — $ 254,943 Liabilities: SARs $ — $ — $ 2,155 $ 2,155 Foreign currency forward contracts — 150 — 150 $ — $ 150 $ 2,155 $ 2,305 During the three months ended March 31, 2018 and 2017 there were no transfers between Level 1, Level 2 and Level 3. There were no changes to the valuation techniques used to measure asset and liability fair values on a recurring basis during the three months ended March 31, 2018 from those included in the Company’s audited consolidated financial statements for the year ended December 31, 2017. The following table provides a summary of changes in the fair values of the Company’s SARs liability, for which fair value is determined by Level 3 inputs: Three Months Ended March 31, 2018 2017 Fair value at beginning of period $ 2,155 $ 1,195 Change in fair value 2,166 (11 ) Exercises — — Fair value at end of period $ 4,321 $ 1,184 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 7. Derivative Instruments The Company has certain international customers that are billed in foreign currencies. To mitigate the volatility related to fluctuations in the foreign exchange rates for accounts receivable denominated in foreign currencies, the Company enters into foreign currency forward contracts. As of March 31, 2018, the Company had foreign currency forward contracts outstanding with notional amounts totaling 10,611 euros maturing in the second, third and fourth quarters of 2018. As of December 31, 2017, the Company had foreign currency forward contracts outstanding with notional amounts totaling 5,924 euros maturing in the first and second quarters of 2018. The Company’s foreign currency forward contracts economically hedge certain risk but are not designated as hedges for financial reporting purposes, and accordingly, all changes in the fair value of these derivative instruments are recorded as unrealized foreign currency transaction gains or losses and are included in the consolidated statements of operations and comprehensive income as a component of other income (expense). The Company records all derivative instruments in the consolidated balance sheet at their fair values. As of March 31, 2018 and December 31, 2017, the Company recorded a liability of $217 and $150, respectively, related to outstanding foreign currency forward contracts, which were included in accrued expenses and other current liabilities in the consolidated balance sheets. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The Company’s effective income tax rate was 9.2% and 5.7% for the three months ended March 31, 2018 and 2017, respectively. The effective income tax rate is based on the estimated annual effective tax rate, adjusted for discrete tax items recorded in the period. The provision for income taxes was $1,793 and $1,103 for the three months ended March 31, 2018 and 2017, respectively. The Company determines its estimated annual effective tax rate at the end of each interim period based on estimated pre-tax income and facts known at that time. The estimated annual effective tax rate is applied to the year-to-date pre-tax income at the end of each interim period with certain adjustments. The tax effects of significant unusual or extraordinary items are discretely reflected in the periods in which they occur. The Company’s estimated annual effective tax rate can change based on the mix of jurisdictional pre-tax income and other factors. The effective income tax rate for the three months ended March 31, 2018 differed from the federal statutory rate due to the foreign tax rate differential, permanent differences, research and development tax credits, excess tax benefit from stock-based transactions, state taxes and impacts of the Tax Cuts and Jobs Act (the “TCJA”). Permanent differences primarily included the nondeductible stock-based compensation expense. As of December 31, 2017, the Company has accounted for the impacts of the TCJA to the extent a reasonable estimate could be made and recognized provisional amounts related to the deemed repatriation tax, offset by the remeasurement of deferred tax assets and liabilities to record the effects of the tax law change in the period of enactment. This treatment is provided for in Staff Accounting Bulletin 118, which allows a company to record a provisional amount when it does not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in the tax law during the measurement period. The measurement period ends when the company has obtained, prepared, and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. During the first quarter of 2018, the Internal Revenue Service issued additional guidance providing clarification on certain aspects of the deemed repatriation tax calculation. The additional guidance did not result in an adjustment to the provisional amounts recorded as of December 31, 2017. The Company will continue to monitor for new guidance related to provisional amounts recorded. The change in the provision for income taxes for the three months ended March 31, 2018 compared to the three months ended March 31, 2017 was primarily due to a decrease in tax benefits from stock-based transactions. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt The aggregate principal amount of debt outstanding as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, December 31, 2018 2017 Term loans $ 296,250 $ 297,000 Mortgage loan 7,186 7,261 Total principal amount of debt outstanding $ 303,436 $ 304,261 Current and non-current debt obligations reflected in the consolidated balance sheets as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, December 31, 2018 2017 Current liabilities: Term loans $ 3,000 $ 3,000 Mortgage loan 306 303 Current portion of principal payment obligations 3,306 3,303 Unamortized debt issuance costs, current portion (1,145 ) (1,147 ) Current portion of long-term debt, net of unamortized debt issuance costs $ 2,161 $ 2,156 Non-current liabilities: Term loans $ 293,250 $ 294,000 Mortgage loan 6,880 6,958 Non-current portion of principal payment obligations 300,130 300,958 Unamortized debt issuance costs, non-current portion (5,215 ) (5,499 ) Long-term debt, net of current portion and unamortized debt issuance costs $ 294,915 $ 295,459 Term Loan and Revolving Credit Facilities On December 20, 2016, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, various lenders and JPMorgan Chase Bank, N.A. and Barclays Bank PLC providing for (i) a term loan facility of $300,000 and (ii) a revolving credit facility of up to $25,000 in revolving credit loans and letters of credit. As of March 31, 2018 and December 31, 2017, $296,250 and $297,000 in principal amount, respectively, was outstanding under the term loan facility (the “Term Loans”) and the Company did not have any outstanding borrowings under the revolving credit facility; however, the Company had used $1,000 under the revolving credit facility for a stand-by letter of credit that serves as collateral for a stand-by letter of credit issued by Bank of America to one of the Company’s customers pursuant to a contractual performance guarantee. In addition, the Company may, subject to certain conditions, including the consent of the administrative agent and the institutions providing such increases, increase the facilities by an unlimited amount so long as the Company is in compliance with specified leverage ratios, or otherwise by up to $70,000. Borrowings under the facilities bear interest at a floating rate, which can be either a Eurodollar rate plus an applicable margin or, at the Company’s option, a base rate (defined as the highest of (x) the JPMorgan Chase, N.A. prime rate, (y) the federal funds effective rate, plus one-half percent (0.50%) per annum and (z) a one-month Eurodollar rate plus 1.00% per annum) plus an applicable margin. The applicable margin for borrowings under the term loan facility is 4.00% per annum for Eurodollar rate loans (subject to a 1.00% per annum interest rate floor) and 3.00% per annum for base rate loans. As a result of the completion of the Company’s IPO in December 2017, the applicable margin for borrowings under the revolving credit facility is 1.75% per annum for Eurodollar rate loans and 0.75% per annum for base rate loans, subject to reduction based on the Company’s maintaining of specified net leverage ratios. The interest rates payable under the facilities are subject to an increase of 2.00% per annum during the continuance of any payment default. For Eurodollar rate loans, the Company may select interest periods of one, two, three or six months or, with the consent of all relevant affected lenders, twelve months. Interest will be payable at the end of the selected interest period, but no less frequently than every three months within the selected interest period. Interest on any base rate loan is not set for any specified period and is payable quarterly. The Company has the right to convert Eurodollar rate loans into base rate loans and the right to convert base rate loans into Eurodollar rate loans at its option, subject, in the case of Eurodollar rate loans, to prepayment penalties if the conversion is effected prior to the end of the applicable interest period. As of March 31, 2018, the interest rate on the Term Loans was 5.88% per annum, which was based on a one-month Eurodollar rate of 1.88% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. As of December 31, 2017, the interest rate on the Term Loans was 5.69% per annum, which was based on a three-month Eurodollar rate of 1.69% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. Upon entering into the term loan facility, the Company incurred debt issuance costs of $7,811, which were initially recorded as a reduction of the debt liability and are amortized to interest expense using the effective interest method from the issuance date of the Term Loan until the maturity date. Principal payments of $750 were made under the term loan facility during each of the three months ended March 31, 2018 and 2017. Interest expense, including the amortization of debt issuance costs, totaled $4,516 and $4,039 for the three months ended March 31, 2018 and 2017, respectively. The revolving credit facility also requires payment of quarterly commitment fees at a rate of 0.25% per annum on the difference between committed amounts and amounts actually borrowed under the facility and customary letter of credit fees. For each of the three months ended March 31, 2018 and 2017, interest expense related to the fee for the unused amount of the revolving credit facility totaled $15. The Term Loans mature on December 20, 2023, and the revolving credit facility matures on December 20, 2021. The Term Loans are subject to amortization in equal quarterly installments, which commenced on March 31, 2017, of principal in an annual aggregate amount equal to 1.0% of the original principal amount of the Term Loans of $300,000, with the remaining outstanding balance payable at the date of maturity. Voluntary prepayments of principal amounts outstanding under the term loan facility are permitted at any time; however, if a prepayment of principal is made with respect to a Eurodollar loan on a date other than the last day of the applicable interest period, the Company is required to compensate the lenders for any funding losses and expenses incurred as a result of the prepayment. Prior to the revolving credit facility maturity date, funds borrowed under the revolving credit facility may be borrowed, repaid and reborrowed, without premium or penalty. In addition, the Company is required to make mandatory prepayments under the facilities with respect to (i) 100% of the net cash proceeds from certain asset dispositions (including casualty and condemnation events) by the Company or certain of its subsidiaries, subject to certain exceptions and reinvestment provisions, (ii) 100% of the net cash proceeds from the issuance or incurrence of any additional debt by the Company or certain of its subsidiaries, subject to certain exceptions, and (iii) 50% of the Company’s excess cash flow, as defined in the credit agreement, subject to reduction upon its achievement of specified performance targets. The facilities are secured by, among other things, a first priority security interest, subject to permitted liens, in substantially all of the Company’s assets and all of the assets of certain of its subsidiaries and a pledge of certain of the stock of certain of its subsidiaries, in each case subject to specified exceptions. The facilities contain customary affirmative and negative covenants, including certain restrictions on the Company’s ability to pay dividends, and, with respect to the revolving credit facility, a financial covenant requiring the Company to maintain a specified total net leverage ratio in the event that on the last day of any fiscal quarter the Company has utilized more than 30% of its borrowing capacity under the facility. As of March 31, 2018 and December 31, 2017, the Company had not utilized more than 30% of its borrowing capacity under the revolving credit facility and compliance with the financial covenant was not applicable. Commercial Mortgage Loan On July 1, 2015, the Company entered into a commercial mortgage loan agreement in the amount of $7,950 (the “Mortgage Loan”). Borrowings under the Mortgage Loan bear interest at a rate of 3.5% per annum and are repayable in 60 monthly installments of $46, consisting of principal and interest based on a 20-year amortization schedule. The remaining amount of unpaid principal under the Mortgage Loan is due on the maturity date of July 1, 2020. Upon entering into the Mortgage Loan, the Company incurred debt issuance costs of $45, which was initially recorded as a direct deduction from the debt liability and are amortized to interest expense using the effective interest method from issuance date of the loan until the maturity date. The Company made principal payments under the Mortgage Loan of $76 and $73 during the three months ended March 31, 2018 and 2017, respectively. Interest expense, including the amortization of debt issuance costs, totaled $65 and $68 for the three months ended March 31, 2018 and 2017, respectively. The Mortgage Loan is secured by the land and building purchased in March 2015 and subjects the Company to various affirmative, negative and financial covenants, including maintenance of a minimum debt service ratio. The Company was in compliance with all covenants of the Mortgage Loan as of March 31, 2018 and December 31, 2017. As of March 31, 2018, aggregate minimum future principal payments of the Company’s debt are summarized as follows: Year Ending December 31, 2018 $ 2,478 2019 3,314 2020 9,644 2021 3,000 2022 3,000 Thereafter 282,000 $ 303,436 |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders’ Equity | 10. Stockholders’ Equity Special Dividends to Holders of Common and Preferred Stock November 2017 Special Dividend On November 30, 2017, the board of directors declared a special dividend to the holders of common stock and preferred stock of record on that date, contingent upon the closing of the Company’s IPO. The cash dividend declared to stockholders was $0.5802 per share of common stock, $5.8020 per share of Series B convertible preferred stock (the “Series B Preferred Stock”) and $5.8020 per share of Series C convertible preferred stock (the “Series C Preferred Stock”). Related to this special dividend declared in November 2017, the Company paid $865 of dividends to the common and preferred stockholders during the three months ended March 31, 2018, and as of December 31, 2017, dividend payments to be made totaled $865 and were included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet. No dividend payments with respect to this special dividend were payable as of March 31, 2018. In connection with this special dividend declared in November 2017, the board of directors also approved, contingent upon the payment of the November 2017 special dividend, cash payments to be made to holders of the Company’s stock options, SARs and RSUs as an equitable adjustment to the holders of such instruments in accordance with the provisions of the Company’s equity incentive plans. The equitable adjustment payments to the holders of the stock options, SARs and RSUs are equal to $0.5802 per share multiplied by the net number of shares subject to outstanding equity awards after applying the treasury stock method. The cash payments to such holders will be made as their equity awards vest through fiscal year 2021. During the three months ended March 31, 2018, the Company paid $387 to the holders of such vested equity awards. As of March 31, 2018 and December 31, 2017, equitable adjustment payments to be made as equity awards vest through fiscal year 2021, net of estimated forfeitures, totaled $1,348 and $1,735, respectively, and were included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. The cash dividends declared to the holders of common stock, Series B Preferred Stock and Series C Preferred Stock totaled $19,572, $1,039 and $22,391, respectively, and the equitable adjustment to the holders of stock options, SARs and RSUs, net of estimated forfeitures, totaled $6,928. The $49,930 aggregate amount of such dividends and equitable adjustments was recorded as a charge to additional paid-in capital during the year ended December 31, 2017. May 2017 Special Dividend On May 10, 2017, the board of directors declared and the stockholders approved a special dividend to the holders of common stock and preferred stock of record on that date. The cash dividend declared to stockholders was $1.1774 per share of common stock, $11.7744 per share of Series B Preferred Stock and $11.7744 per share of Series C Preferred Stock. No dividend payments with respect to this special dividend were payable as of March 31, 2018 and December 31, 2017. In connection with the special dividend declared in May 2017, the board of directors also approved cash payments to be made to holders of the Company’s stock options, SARs and RSUs as an equitable adjustment to the holders of such instruments in accordance with the provisions of the Company’s equity incentive plans. The equitable adjustment payments to the holders of the stock options, SARs and RSUs are equal to $1.1774 per share multiplied by the net number of shares subject to outstanding equity awards after applying the treasury stock method. The cash payments to such holders will be made as their equity awards vest through fiscal year 2021. During the three months ended March 31, 2018, the Company paid $262 to the holders of such vested equity awards. As of March 31, 2018 and December 31, 2017, equitable adjustment payments to be made as equity awards vest through fiscal year 2021, net of estimated forfeitures, totaled $2,030 and $2,292, respectively, and were included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. The cash dividends declared to the holders of common stock, Series B Preferred Stock and Series C Preferred Stock totaled $39,585, $2,108 and $45,440, respectively, and the equitable adjustment to the holders of stock options, SARs and RSUs, net of estimated forfeitures, totaled $12,723. The $99,856 aggregate amount of such dividends and equitable adjustments was recorded as a charge to additional paid-in capital (until reduced to zero) and a charge to accumulated deficit during the year ended December 31, 2017. December 2016 Special Dividend On December 21, 2016, the board of directors declared, and on December 29, 2016 the stockholders approved, a special dividend to the holders of common stock and preferred stock of record on December 27, 2016. The cash dividend declared to stockholders was $2.3306 per share of common stock, $23.3058 per share of Series B Preferred Stock and $23.3058 per share of Series C Preferred Stock. Related to this special dividend declared in December 2016, the Company paid $77,153 of dividends to the common and preferred stockholders during the three months ended March 31, 2017 and no dividend payments with respect to this special dividend were payable as of December 31, 2017. In connection with the special dividend declared in December 2016, the board of directors also approved cash payments to be made to holders of the Company’s stock options, SARs and RSUs as an equitable adjustment to the holders of such instruments in accordance with the provisions of the Company’s equity incentive plans. The equitable adjustment payments to the holders of stock options, SARs and RSUs are equal to $2.3306 per share multiplied by the net number of shares subject to outstanding equity awards after applying the treasury stock method. The cash payments to such holders will be made as their equity awards vest through fiscal year 2020. During the three months ended March 31, 2018 and 2017, the Company paid $592 and $19,369 to the holders of such vested equity awards. As of March 31, 2018 and December 31, 2017, equitable adjustment payments to be made as equity awards vest through fiscal year 2020, net of estimated forfeitures, totaled $4,134 and $4,726, respectively, and were included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet. June 2016 Special Dividend On June 17, 2016, the board of directors declared and the stockholders approved a special dividend to the holders of common stock and preferred stock of record on that date. The cash dividend declared to stockholders was $0.5891 per share of common stock, $5.8910 per share of Series B Preferred Stock, and $5.8910 per share of Series C Preferred Stock. Related to this special dividend declared in June 2016, the Company paid no dividends to the common and preferred stockholders during the three months ended March 31, 2018 and 2017, and, as of March 31, 2018 and December 31, 2017, no dividend payments with respect to this special dividend were payable. In connection with the special dividend declared in June 2016, the board of directors also approved cash payments to be made to holders of the Company’s stock options, SARs and RSUs as an equitable adjustment to the holders of such instruments in accordance with the provisions of the Company’s equity incentive plans. The equitable adjustment payments to the holders of stock options, SARs and RSUs are equal to $0.5891 per share multiplied by the net number of shares subject to outstanding equity awards after applying the treasury stock method. The cash payments to such holders will be made as their equity awards vest through fiscal year 2020. During the three months ended March 31, 2018 and 2017, the Company paid $119 and $177, respectively to the holders of such vested equity awards. As of March 31, 2018 and December 31, 2017, equitable adjustment payments to be made as equity awards vest through fiscal year 2020, net of estimated forfeitures, totaled $861 and $980 and were included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet. November 2014 Special Dividend On November 30, 2014, the board of directors declared and the stockholders approved a special dividend to the holders of common stock and preferred stock of record on that date. The cash dividend declared to stockholders was $0.3835 per share of common stock, $3.8346 per share of Series B Preferred Stock and $3.8346 per share of Series C Preferred Stock. Related to this special dividend declared in November 2014, the Company paid no dividends to the common and preferred stockholders during the three months ended March 31, 2018 and 2017, and, as of March 31, 2018 and December 31, 2017, no dividend payments with respect to this special dividend were payable. In connection with the special dividend declared in November 2014, the board of directors also approved cash payments to be made to holders of the Company’s stock options and SARs as an equitable adjustment to the holders of such instruments in accordance with the provisions of the Company’s equity incentive plans. The equitable adjustment payments to the holders of stock options and SARs are equal to $0.3835 per share multiplied by the net number of shares subject to outstanding equity awards after applying the treasury stock method. The cash payments to the holders of stock options and SARs will be made as equity awards vest through fiscal year 2018. During the three months ended March 31, 2018 and 2017, the Company paid $16 and $40, respectively, to the holders of stock options and SARs for vested equity awards. As of March 31, 2018 and December 31, 2017, equitable adjustment payments to be made as equity awards vest through fiscal year 2018, net of estimated forfeitures, totaled $47 and $63, respectively, and were included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 11. Stock-based Compensation 2017 Stock Incentive Plan The Company’s 2017 Stock Incentive Plan (the “2017 Plan”) provides for the Company to sell or issue common stock or restricted common stock, or to grant qualified incentive stock options, nonqualified stock options, SARs, RSUs or other stock-based awards to the Company’s employees, officers, directors, advisers and outside consultants. The total number of shares authorized for issuance under the 2017 Plan was 10,062 shares as of March 31, 2018, of which 8,857 shares remained available for future grant. Stock Options The following table summarizes the outstanding stock option activity and a summary of information related to stock options as of and for the three months ended March 31, 2018 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding at January 1, 2018 15,579 $ 4.55 6.18 $ 205,717 Granted 462 24.28 Exercised (266 ) 2.53 Forfeited (59 ) 11.40 Outstanding at March 31, 2018 15,716 $ 5.14 6.06 $ 380,263 Options exercisable at March 31, 2018 11,868 $ 3.14 5.27 $ 310,894 Vested or expected to vest at March 31, 2018 15,479 $ 5.02 6.01 $ 376,463 The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model using the following assumptions: Three Months Ended March 31, 2018 2017 Risk-free interest rate 2.7% 2.0%–2.1% Expected term (in years) 6.0–6.2 6.0–6.2 Expected volatility 32.4%–32.6% 38.1%–38.5% Expected dividend yield 0.0% 0.0% The weighted-average grant-date fair value of options granted during the three months ended March 31, 2018 and 2017 was $8.88 and $4.92 per share, respectively. Cash proceeds received upon the exercise of options were $675 and $40 during the three months ended March 31, 2018 and 2017, respectively. The intrinsic value of stock options exercised during the three months ended March 31, 2018 and 2017 was $5,873 and $181, respectively. The aggregate intrinsic value is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock. Restricted Stock Units A summary of RSU activity under the Company’s 2011 Stock Incentive Plan (the “2011 Plan”) and the 2017 Plan for the three months ended March 31, 2018 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2018 896 $ 7.09 Granted 103 24.87 Vested (491 ) 5.46 $ 8,735 Unvested balance at March 31, 2018 508 $ 12.27 The Company withheld 310 shares of common stock in settlement of employee tax withholding obligations due upon the vesting of RSUs during the three months ended March 31, 2017. During the three months ended March 31, 2018, the Company withheld no shares of common stock in settlement of employee tax withholding obligations due upon the vesting of RSUs. Stock Appreciation Rights In January 2017, the Company granted 110 stock appreciation rights (“SARs”) that allow the holder the right, upon exercise, to receive in cash the amount of the difference between the fair value of the Company’s common stock at the date of exercise and the price of the underlying common stock at the date of grant of each SAR. The price of the underlying common stock on the date of grant was $12.24 per share and the grant-date fair value was $4.52 per SAR. The SARs vest over a four-year period from the date of grant and expire ten years from the date of grant. As of March 31, 2018, 240 SARs were outstanding and 60 were unvested. As of March 31, 2018, there were 180 SARs exercisable and the weighted-average fair value was $24.07 per SAR. The fair value of the SAR liability as of March 31, 2018 and December 31, 2017 was $4,321 and $2,155, respectively, (see Note 6) and was included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Stock-Based Compensation Expense Stock-based compensation expense related to stock options, RSUs and SARs for the three months ended March 31, 2018 and 2017 was classified in the condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended March 31, 2018 2017 Cost of revenue $ 209 $ 71 Research and development expenses 2,018 516 Sales and marketing expenses 375 277 General and administrative expenses 1,628 1,036 $ 4,230 $ 1,900 As of March 31, 2018, there was $21,337 of unrecognized compensation cost related to outstanding stock options, RSUs and SARs, which is expected to be recognized over a weighted-average period of 2.79 years. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income per Share | 12. Net Income per Share Basic and diluted net income per share attributable to common stockholders was calculated as follows: Three Months Ended March 31, 2018 2017 Numerator: Net income $ 17,776 $ 18,154 Cumulative dividends on convertible preferred stock — (1,451 ) Undistributed earnings allocated to participating securities — (9,115 ) Net income attributable to common stockholders, basic 17,776 7,588 Undistributed earnings reallocated to dilutive potential common shares — 1,055 Net income attributable to common stockholders, diluted $ 17,776 $ 8,643 Denominator: Weighted-average shares used to compute net income per share attributable to common stockholders, basic 81,629 33,618 Dilutive effect of stock options 11,713 9,279 Dilutive effect of restricted stock units 252 402 Weighted-average shares used to compute net income per share attributable to common stockholders, diluted 93,594 43,299 Net income per share attributable to common stockholders: Basic $ 0.22 $ 0.23 Diluted $ 0.19 $ 0.20 The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended March 31, 2018 2017 Convertible preferred stock (on an as-converted basis) — 40,382 Options to purchase common stock 462 1,399 Unvested restricted stock units 103 — |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the Company’s chief operating decision maker, or decision-making group, in deciding how to allocate resources and assess performance. The Company has determined that its chief operating decision maker is its President and Chief Executive Officer. The Company’s chief operating decision maker reviews the Company’s financial information on a consolidated basis for purposes of allocating resources and assessing financial performance. Since the Company operates as one operating segment, all required financial segment information can be found in these consolidated financial statements. The following table summarizes the Company’s revenue based on the customer’s location, as determined by the customer’s shipping address: Three Months Ended March 31, 2018 2017 North America: United States $ 36,071 $ 15,961 Canada 10,092 13,846 Total North America 46,163 29,807 Europe, Middle East and Africa: Germany 8,134 8,196 Other 16,023 12,877 Total Europe, Middle East and Africa 24,157 21,073 Latin America 9,402 11,967 Asia-Pacific 9,352 9,882 Total revenue (1) $ 89,074 $ 72,729 (1) Other than the United States, Canada and Germany, no individual countries represented 10% or more of the Company’s total revenue for any of the periods presented. The Company’s property and equipment, net by location was as follows: March 31, 2018 December 31, 2017 United States $ 24,415 $ 24,903 China 3,003 2,612 Other 1,748 1,848 Total property and equipment, net $ 29,166 $ 29,363 |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | 14. Related Parties Transactions Involving Liberty Global Ventures Holding B.V. and its Affiliates Liberty Global Ventures Holding B.V. is a principal stockholder of the Company through its ownership of common stock. Affiliates of Liberty Global Ventures Holding B.V. (“Liberty Global Affiliates”) are customers of the Company. During the three months ended March 31, 2018 and 2017, the Company recognized revenue of $15,731 and $14,953, respectively, from transactions with Liberty Global Affiliates and amounts received in cash from Liberty Global Affiliates totaled $13,892 and $12,431, respectively. As of March 31, 2018 and December 31, 2017, amounts due from Liberty Global Affiliates totaled $15,067 and $13,367, respectively. Consulting Agreement with Bill Styslinger In March 2012, the Company entered into a consulting agreement with Bill Styslinger, a member of its board of directors, for the provision of sales management, corporate strategy and advisory services, which was initially scheduled to expire on January 31, 2014. The Company extended the term of the consulting agreement on two occasions, and the consulting agreement expired on December 31, 2016. In connection with Mr. Styslinger’s services as a consultant, in May 2012, the Company granted Mr. Styslinger stock options for the purchase of 600 shares of common stock, at an exercise price of $1.69 per share, which vested as to one-third of the shares under the award on February 1, 2013 and in equal monthly installments thereafter for the following two years. The grant-date fair value of the award totaled $527, which was recorded by the Company as stock-based compensation expense over the vesting period of the award. In connection with special dividends declared by the Company’s board of directors in November 2014, June 2016, December 2016, May 2017 and November 2017 (see Note 10), the board of directors also approved cash payments to be made to holders of the Company’s stock options, SARs and RSUs in accordance with the provisions of the Company’s equity incentive plans. In connection with the special dividends declared in December 2016, the Company paid Mr. Styslinger $616 as equitable adjustments in the three months ended March 31, 2017. The Company made no payments to Mr. Styslinger as equitable adjustments in the three months ended March 31, 2018. In addition, during the three months ended March 31, 2018 and 2017, the Company recognized general and administrative expenses of $51 and $50, respectively, for Mr. Styslinger’s services as a non-employee director. As of March 31, 2018, $51 was due to Mr. Styslinger for his services as a non-employee director. No amount was due to Mr. Styslinger for his services as a non-employee director as of December 31, 2017. Employment of Rongke Xie Rongke Xie, who serves as Deputy General Manager of Guangzhou Casa Communication Technology LTD (“Casa China”), a subsidiary of the Company, is the sister of Lucy Xie, the Company’s Senior Vice President of Operations and a member of the Company’s board of directors. Casa China paid Rongke Xie $79 and $100 in total compensation in the three months ended March 31, 2018 and 2017, respectively, for her services as an employee. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Operating Leases The Company leases manufacturing, warehouse and office space in the United States, China, Spain and Ireland under non-cancelable operating leases that expire in 2021, 2019, 2023 and 2026, respectively. The Ireland lease provides the Company the right to terminate in 2021. Rent expense for the three months ended March 31, 2018 and 2017 was $253 and $210, respectively. Rent expense is recorded on a straight-line basis, and, as a result, as of March 31, 2018 and December 31, 2017, the Company had a deferred rent liability of $251 and $258, respectively, which is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets. Future minimum lease payments under non-cancelable operating leases as of March 31, 2018 were as follows: Year Ending December 31, 2018 $ 708 2019 679 2020 673 2021 476 2022 68 Thereafter 5 $ 2,609 Indemnification The Company has, in the ordinary course of business, agreed to defend and indemnify certain customers against third-party claims asserting infringement of certain intellectual property rights, which may include patents, copyrights, trademarks or trade secrets. As permitted under Delaware law, the Company indemnifies its officers, directors and employees for certain events or occurrences that happen by reason of their relationship with or position held at the Company. As of March 31, 2018 and December 31, 2017, the Company had not experienced any losses related to these indemnification obligations and no material claims were outstanding. The Company does not expect significant claims related to these indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible, and no related liabilities were recorded in its consolidated financial statements. Litigation From time to time, and in the ordinary course of business, the Company may be subject to various claims, charges and litigation. As of March 31, 2018, the Company did not have any pending claims, charges or litigation that it expects would have a material adverse effect on its consolidated financial position, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events On April 30, 2018, the Company closed a follow-on offering in which certain selling stockholders sold 7,350 shares of common stock at a price to the public of $25.00 per share, before deducting underwriting discounts and commissions. The underwriters were granted a 30-day option to purchase up to an additional 1,103 shares from the selling stockholders. The Company did not sell any common stock in this offering and did not receive any of the proceeds from the sale of shares by the selling stockholders. In connection with the sale of shares by the selling stockholders, certain of the selling stockholders disgorged $3,811 to the Company in accordance with Section 16(b) of the Securities Exchange Act of 1934 and the Company incurred approximately $825 in transaction costs related to the offering. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon by management in preparing these condensed consolidated financial statements include revenue recognition, provision for doubtful accounts, reserves for excess and obsolete inventory, valuation of inventory and deferred inventory costs, the expensing and capitalization of software-related research and development costs, amortization and depreciation periods, recoverability of net deferred tax assets, valuations of uncertain tax positions, provision for income taxes, warranty allowances, the valuation of the Company’s common stock and other equity instruments, and stock-based compensation expense. Although the Company regularly reassesses the assumptions underlying 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 existing at the time such estimates are made. |
Accounts Receivable | Accounts Receivable Accounts receivable are presented net of a provision for doubtful accounts, which is an estimate of amounts that may not be collectible. Accounts receivable for arrangements with customary payment terms, which are one year or less, are recorded at invoiced amounts and do not bear interest. The Company generally does not require collateral, but the Company may, in certain instances based on its credit assessment, require full or partial prepayment prior to shipment. For certain customers and/or for certain transactions, the Company provides extended payment arrangements to allow the customer to pay for the purchased equipment in monthly, other periodic or lump-sum payments over a period of one to five years. Certain of these arrangements are collateralized by the underlying assets during the term of the arrangement. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. In addition, amounts recorded as current and non-current accounts receivable for extended payment term arrangements at any balance sheet date have a corresponding amount recorded as deferred revenue because the Company defers the recognition of revenue for all extended payment term arrangements and only recognizes revenue to the extent of the payment amounts that become due from the customer. Although there is no contractual interest rate for customer arrangements with extended payment terms, the Company imputes interest on the accounts receivable related to these arrangements and reduces the arrangement fee that will be recognized as revenue for the amount of the imputed interest, which is recorded as interest income over the payment term using the effective interest method. For the periods presented in the accompanying condensed consolidated financial statements, the impact of imputing interest on revenue and interest income was insignificant. Accounts receivable as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 Current portion of accounts receivable, net: Accounts receivable, net $ 71,164 $ 106,114 Amounts due from related party (see Note 14) 15,067 13,367 Accounts receivable, extended payment arrangements 2,635 3,153 88,866 122,634 Accounts receivable, net of current portion: Accounts receivable, extended payment arrangements 4,326 4,710 $ 93,192 $ 127,344 The Company performs ongoing credit evaluations of its customers and, if necessary, provides a provision for doubtful accounts and expected losses. When assessing and recording its provision for doubtful accounts, the Company evaluates the age of its accounts receivable, current economic trends, creditworthiness of the customers, customer payment history, and other specific customer and transaction information. The Company writes off accounts receivable against the provision when it determines a balance is uncollectible and no longer actively pursues collection of the receivable. Adjustments to the provision for doubtful accounts are recorded as general and administrative expenses in the consolidated statements of operations and comprehensive income. As of March 31, 2018 and December 31, 2017, the Company concluded that all amounts due under extended payment term arrangements were collectible and no reserve for credit losses was recorded. During the three months ended March 31, 2018 and 2017, the Company did not provide a reserve for credit losses and did not write off any uncollectible receivables due under extended payment term arrangements. |
Concentration of Risks | Concentration of Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash and cash equivalents consist of demand deposits, savings accounts, commercial paper, money market mutual funds, and certificates of deposit with financial institutions, which may exceed Federal Deposit Insurance Corporation limits. The Company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. Significant customers are those that represent 10% or more of revenue or accounts receivable as set forth in the following table: Revenue Accounts Receivable, Net Three Months Ended March 31, March 31, December 31, 2018 2017 2018 2017 Customer A 27 % 13 % 25 % 44 % Customer B 18 % 21 % 16 % 10 % Customer C 12 % * 11 % * Customer D * * * 17 % Customer E * 14 % * * * Less than 10% of total Customer B is a related party, Liberty Global Affiliates (see Note 14). Certain of the components and subassemblies included in the Company’s products are obtained from a single source or a limited group of suppliers. In addition, the Company primarily relies on two third parties to manufacture certain components of its products. Although the Company seeks to reduce dependence on those limited sources of suppliers and manufacturers, the partial or complete loss of certain of these sources could have a material adverse effect on the Company’s operating results, financial condition and cash flows and damage its customer relationships. |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments This guidance is effective for public companies for annual reporting periods beginning after December 15, 2019 and for interim periods within those fiscal years. This guidance is effective for private companies, and emerging growth companies that choose to take advantage of the extended transition periods, for annual reporting periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Activities |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 Current portion of accounts receivable, net: Accounts receivable, net $ 71,164 $ 106,114 Amounts due from related party (see Note 14) 15,067 13,367 Accounts receivable, extended payment arrangements 2,635 3,153 88,866 122,634 Accounts receivable, net of current portion: Accounts receivable, extended payment arrangements 4,326 4,710 $ 93,192 $ 127,344 |
Schedule of Significant Customers Represent 10% or More of Revenue or Accounts Receivable | Significant customers are those that represent 10% or more of revenue or accounts receivable as set forth in the following table: Revenue Accounts Receivable, Net Three Months Ended March 31, March 31, December 31, 2018 2017 2018 2017 Customer A 27 % 13 % 25 % 44 % Customer B 18 % 21 % 16 % 10 % Customer C 12 % * 11 % * Customer D * * * 17 % Customer E * 14 % * * * Less than 10% of total |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 Raw materials $ 4,753 $ 5,135 Work in process — 7 Finished goods: Manufactured finished goods 31,008 36,321 Deferred inventory costs 1,222 3,344 36,983 44,807 Valuation adjustment for excess and obsolete inventory (7,629 ) (8,659 ) $ 29,354 $ 36,148 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Summary of Components of Property and Equipment | Property and equipment as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 Computers and purchased software $ 13,377 $ 12,343 Leasehold improvements 1,295 1,268 Furniture and fixtures 1,831 1,752 Machinery and equipment 18,798 17,911 Land 3,091 3,091 Building 4,765 4,765 Building improvements 5,004 4,906 Trial systems at customers’ sites 7,392 7,458 55,553 53,494 Less: Accumulated depreciation and amortization (26,387 ) (24,131 ) $ 29,166 $ 29,363 |
Accrued Expenses and Other Cu28
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, 2018 December 31, 2017 Accrued compensation and related taxes $ 14,787 $ 22,465 Accrued warranty 1,131 1,246 Dividends and equitable adjustments payable (see Note 10) 8,420 10,661 Accrued customer incentives 4,428 8,437 Other accrued expenses 6,154 5,441 $ 34,920 $ 48,250 |
Summary of Changes in Amount Reserved for Warranty Costs | A summary of changes in the amount reserved for warranty costs for the three months ended March 31, 2018 and 2017 is as follows: Three Months Ended March 31, 2018 2017 Warranty reserve at beginning of period $ 1,246 $ 1,256 Provisions 353 617 Charges (468 ) (467 ) Warranty reserve at end of period $ 1,131 $ 1,406 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | The following tables present information about the fair value of the Company’s financial assets and liabilities as of March 31, 2018 and December 31, 2017 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of March 31, 2018 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 23,826 $ — $ 23,826 Commercial paper — 48,392 — 48,392 Money market mutual funds 223,111 — — 223,111 $ 223,111 $ 72,218 $ — $ 295,329 Liabilities: SARs $ — $ — $ 4,321 $ 4,321 Foreign currency forward contracts — 217 — 217 $ — $ 217 $ 4,321 $ 4,538 Fair Value Measurements as of December 31, 2017 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 18,905 $ — $ 18,905 Commercial paper — 11,483 — 11,483 Money market mutual funds 224,555 — — 224,555 $ 224,555 $ 30,388 $ — $ 254,943 Liabilities: SARs $ — $ — $ 2,155 $ 2,155 Foreign currency forward contracts — 150 — 150 $ — $ 150 $ 2,155 $ 2,305 |
Summary of Changes in Fair Values of SARs Liability | Three Months Ended March 31, 2018 2017 Fair value at beginning of period $ 2,155 $ 1,195 Change in fair value 2,166 (11 ) Exercises — — Fair value at end of period $ 4,321 $ 1,184 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Aggregate Principal Amount of Debt Outstanding | The aggregate principal amount of debt outstanding as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, December 31, 2018 2017 Term loans $ 296,250 $ 297,000 Mortgage loan 7,186 7,261 Total principal amount of debt outstanding $ 303,436 $ 304,261 |
Schedule of Current and Non-Current Debt Obligations | Current and non-current debt obligations reflected in the consolidated balance sheets as of March 31, 2018 and December 31, 2017 consisted of the following: March 31, December 31, 2018 2017 Current liabilities: Term loans $ 3,000 $ 3,000 Mortgage loan 306 303 Current portion of principal payment obligations 3,306 3,303 Unamortized debt issuance costs, current portion (1,145 ) (1,147 ) Current portion of long-term debt, net of unamortized debt issuance costs $ 2,161 $ 2,156 Non-current liabilities: Term loans $ 293,250 $ 294,000 Mortgage loan 6,880 6,958 Non-current portion of principal payment obligations 300,130 300,958 Unamortized debt issuance costs, non-current portion (5,215 ) (5,499 ) Long-term debt, net of current portion and unamortized debt issuance costs $ 294,915 $ 295,459 |
Schedule of Aggregate Minimum Future Principal Payments of Debt | As of March 31, 2018, aggregate minimum future principal payments of the Company’s debt are summarized as follows: Year Ending December 31, 2018 $ 2,478 2019 3,314 2020 9,644 2021 3,000 2022 3,000 Thereafter 282,000 $ 303,436 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Outstanding Stock Option and Information Related to Stock Options Activity | The following table summarizes the outstanding stock option activity and a summary of information related to stock options as of and for the three months ended March 31, 2018 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding at January 1, 2018 15,579 $ 4.55 6.18 $ 205,717 Granted 462 24.28 Exercised (266 ) 2.53 Forfeited (59 ) 11.40 Outstanding at March 31, 2018 15,716 $ 5.14 6.06 $ 380,263 Options exercisable at March 31, 2018 11,868 $ 3.14 5.27 $ 310,894 Vested or expected to vest at March 31, 2018 15,479 $ 5.02 6.01 $ 376,463 |
Assumptions of Estimated Fair Value of Option on the Date of Grant Using Black-Scholes Option Pricing Model | The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model using the following assumptions: Three Months Ended March 31, 2018 2017 Risk-free interest rate 2.7% 2.0%–2.1% Expected term (in years) 6.0–6.2 6.0–6.2 Expected volatility 32.4%–32.6% 38.1%–38.5% Expected dividend yield 0.0% 0.0% |
Summary of RSU Activity | A summary of RSU activity under the Company’s 2011 Stock Incentive Plan (the “2011 Plan”) and the 2017 Plan for the three months ended March 31, 2018 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2018 896 $ 7.09 Granted 103 24.87 Vested (491 ) 5.46 $ 8,735 Unvested balance at March 31, 2018 508 $ 12.27 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense related to stock options, RSUs and SARs for the three months ended March 31, 2018 and 2017 was classified in the condensed consolidated statements of operations and comprehensive income as follows: Three Months Ended March 31, 2018 2017 Cost of revenue $ 209 $ 71 Research and development expenses 2,018 516 Sales and marketing expenses 375 277 General and administrative expenses 1,628 1,036 $ 4,230 $ 1,900 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Share Attributable to Common Stockholders | Basic and diluted net income per share attributable to common stockholders was calculated as follows: Three Months Ended March 31, 2018 2017 Numerator: Net income $ 17,776 $ 18,154 Cumulative dividends on convertible preferred stock — (1,451 ) Undistributed earnings allocated to participating securities — (9,115 ) Net income attributable to common stockholders, basic 17,776 7,588 Undistributed earnings reallocated to dilutive potential common shares — 1,055 Net income attributable to common stockholders, diluted $ 17,776 $ 8,643 Denominator: Weighted-average shares used to compute net income per share attributable to common stockholders, basic 81,629 33,618 Dilutive effect of stock options 11,713 9,279 Dilutive effect of restricted stock units 252 402 Weighted-average shares used to compute net income per share attributable to common stockholders, diluted 93,594 43,299 Net income per share attributable to common stockholders: Basic $ 0.22 $ 0.23 Diluted $ 0.19 $ 0.20 |
Schedule of Potential Common Shares Excluded from the Computation of Diluted Net Income Per Share Attributable to Common Stockholders | The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended March 31, 2018 2017 Convertible preferred stock (on an as-converted basis) — 40,382 Options to purchase common stock 462 1,399 Unvested restricted stock units 103 — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Revenue Based on Customers Location Determined by Customers Shipping Address | The following table summarizes the Company’s revenue based on the customer’s location, as determined by the customer’s shipping address: Three Months Ended March 31, 2018 2017 North America: United States $ 36,071 $ 15,961 Canada 10,092 13,846 Total North America 46,163 29,807 Europe, Middle East and Africa: Germany 8,134 8,196 Other 16,023 12,877 Total Europe, Middle East and Africa 24,157 21,073 Latin America 9,402 11,967 Asia-Pacific 9,352 9,882 Total revenue (1) $ 89,074 $ 72,729 (1) Other than the United States, Canada and Germany, no individual countries represented 10% or more of the Company’s total revenue for any of the periods presented. |
Schedule of Property and Equipment, Net by Location | The Company’s property and equipment, net by location was as follows: March 31, 2018 December 31, 2017 United States $ 24,415 $ 24,903 China 3,003 2,612 Other 1,748 1,848 Total property and equipment, net $ 29,166 $ 29,363 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Non-cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of March 31, 2018 were as follows: Year Ending December 31, 2018 $ 708 2019 679 2020 673 2021 476 2022 68 Thereafter 5 $ 2,609 |
Nature of Business and Basis 35
Nature of Business and Basis of Presentation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Mar. 31, 2018 |
Nature Of Business And Basis Of Presentation [Line Items] | ||
Initial public offering of common stock | 6,900 | |
Common stock offering price per share | $ 13 | |
Additional shares of common stock | 900,000 | |
Net proceeds after deducting underwriting discounts | $ 79,327 | |
Underwriting discounts and commission amount | 6,279 | |
Offering costs | $ 4,094 | |
Convertible outstanding preferred stock | 4,038,000 | |
Aggregate shares of common stock | 40,382,000 | |
Temporary equity to additional paid-in capital | $ 97,439 | |
Temporary equity to common stock | $ 40 | |
Convertible Preferred Stock [Member] | ||
Nature Of Business And Basis Of Presentation [Line Items] | ||
Conversion of preferred stock, description | ten-for-one |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Significant Accounting Policies [Line Items] | ||
Reserve for credit losses under extended payment arrangements | $ 0 | $ 0 |
Write off of uncollectible receivables due under extended payment arrangements | $ 0 | $ 0 |
Minimum | ||
Significant Accounting Policies [Line Items] | ||
Extended payment period for certain customers and/or for certain transactions | 1 year | |
Maximum | ||
Significant Accounting Policies [Line Items] | ||
Extended payment period for certain customers and/or for certain transactions | 5 years |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | $ 88,866 | $ 122,634 |
Accounts receivable, net of current portion: | ||
Accounts receivable, net of current portion | 4,326 | 4,710 |
Accounts receivable | 93,192 | 127,344 |
Accounts Receivable, Net | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | 71,164 | 106,114 |
Amounts Due from Related Party | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | 15,067 | 13,367 |
Accounts Receivable, Extended Payment Arrangements | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | 2,635 | 3,153 |
Accounts receivable, net of current portion: | ||
Accounts receivable, net of current portion | $ 4,326 | $ 4,710 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Schedule of Significant Customers Represent 10% or More of Revenue or Accounts Receivable (Details) - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenue | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 27.00% | 13.00% | |
Revenue | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | 21.00% | |
Revenue | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | ||
Revenue | Customer E | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | ||
Accounts Receivable | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 25.00% | 44.00% | |
Accounts Receivable | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.00% | 10.00% | |
Accounts Receivable | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | ||
Accounts Receivable | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 17.00% |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,753 | $ 5,135 |
Work in process | 7 | |
Finished goods: | ||
Manufactured finished goods | 31,008 | 36,321 |
Deferred inventory costs | 1,222 | 3,344 |
Total finished goods | 36,983 | 44,807 |
Valuation adjustment for excess and obsolete inventory | (7,629) | (8,659) |
Total inventory | $ 29,354 | $ 36,148 |
Property and Equipment - Summar
Property and Equipment - Summary of Components of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 55,553 | $ 53,494 |
Less: Accumulated depreciation and amortization | (26,387) | (24,131) |
Property and equipment, net | 29,166 | 29,363 |
Computers and Purchased Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 13,377 | 12,343 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,295 | 1,268 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,831 | 1,752 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 18,798 | 17,911 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 3,091 | 3,091 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,765 | 4,765 |
Building Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 5,004 | 4,906 |
Trial Systems at Customers’ Sites | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 7,392 | $ 7,458 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Depreciation and amortization expense | $ 2,302 | $ 1,728 |
Trial Systems | ||
Property Plant And Equipment [Line Items] | ||
Transfers from inventory into property and equipment | (65) | 435 |
Equipment | ||
Property Plant And Equipment [Line Items] | ||
Transfers from inventory into property and equipment | $ 65 | $ 495 |
Accrued Expenses and Other Cu42
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||||
Accrued compensation and related taxes | $ 14,787 | $ 22,465 | ||
Accrued warranty | 1,131 | 1,246 | $ 1,406 | $ 1,256 |
Dividends and equitable adjustments payable (see Note 10) | 8,420 | 10,661 | ||
Accrued customer incentives | 4,428 | 8,437 | ||
Other accrued expenses | 6,154 | 5,441 | ||
Total accrued expenses and other current liabilities | $ 34,920 | $ 48,250 |
Accrued Expenses and Other Cu43
Accrued Expenses and Other Current Liabilities - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Minimum | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Product warranties period for software and hardware | 90 days |
Extended product warranty period for renewals of maintenance and support contracts | 1 year |
Maximum | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Product warranties period for software and hardware | 1 year |
Extended product warranty period for renewals of maintenance and support contracts | 3 years |
Accrued Expenses and Other Cu44
Accrued Expenses and Other Current Liabilities - Summary of Changes in Amount Reserved for Warranty Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Product Warranties Disclosures [Abstract] | ||
Warranty reserve at beginning of period | $ 1,246 | $ 1,256 |
Provisions | 353 | 617 |
Charges | (468) | (467) |
Warranty reserve at end of period | $ 1,131 | $ 1,406 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Assets fair value | $ 295,329 | $ 254,943 |
Liabilities: | ||
Liabilities fair value | 4,538 | 2,305 |
Certificates of Deposit | ||
Assets: | ||
Assets fair value | 23,826 | 18,905 |
Commercial Paper | ||
Assets: | ||
Assets fair value | 48,392 | 11,483 |
Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 223,111 | 224,555 |
Foreign Currency Forward Contracts | Derivative Financial Instruments, Liabilities | ||
Liabilities: | ||
Liabilities fair value | 217 | 150 |
SARs | Share Based Compensation Liability | ||
Liabilities: | ||
Liabilities fair value | 4,321 | 2,155 |
Level 1 | ||
Assets: | ||
Assets fair value | 223,111 | 224,555 |
Level 1 | Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 223,111 | 224,555 |
Level 2 | ||
Assets: | ||
Assets fair value | 72,218 | 30,388 |
Liabilities: | ||
Liabilities fair value | 217 | 150 |
Level 2 | Certificates of Deposit | ||
Assets: | ||
Assets fair value | 23,826 | 18,905 |
Level 2 | Commercial Paper | ||
Assets: | ||
Assets fair value | 48,392 | 11,483 |
Level 2 | Foreign Currency Forward Contracts | Derivative Financial Instruments, Liabilities | ||
Liabilities: | ||
Liabilities fair value | 217 | 150 |
Level 3 | ||
Liabilities: | ||
Liabilities fair value | 4,321 | 2,155 |
Level 3 | SARs | Share Based Compensation Liability | ||
Liabilities: | ||
Liabilities fair value | $ 4,321 | $ 2,155 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair value, assets, transfers from Level 1 to Level 2 | $ 0 | $ 0 |
Fair value, assets, transfers from Level 2 to Level 1 | 0 | 0 |
Fair value, liabilities, transfers from Level 1 to Level 2 | 0 | 0 |
Fair value, liabilities, transfers from Level 2 to Level 1 | 0 | 0 |
Fair value, assets, transfers into Level 3 | 0 | 0 |
Fair value, assets, transfers out of Level 3 | 0 | 0 |
Fair value, liabilities, transfers into Level 3 | 0 | 0 |
Fair value, liabilities, transfers out of Level 3 | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Values of SARs Liability (Details) - Level 3 - SARs - Share Based Compensation Liability - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value at beginning of period | $ 2,155 | $ 1,195 |
Change in fair value | 2,166 | (11) |
Fair value at end of period | $ 4,321 | $ 1,184 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - Foreign Currency Forward Contracts $ in Thousands | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) |
Derivatives Fair Value [Line Items] | ||||
Outstanding notional amounts | € | € 10,611,000 | € 5,924,000 | ||
Liability derivatives | $ | $ 217 | $ 150 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 9.20% | 5.70% |
Deferred provision for income taxes | $ 1,793 | $ 1,103 |
Debt - Schedule of Aggregate Pr
Debt - Schedule of Aggregate Principal Amount of Debt Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | $ 303,436 | $ 304,261 |
Term Loans | ||
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | 296,250 | 297,000 |
Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | $ 7,186 | $ 7,261 |
Debt - Schedule of Current and
Debt - Schedule of Current and Non-Current Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current liabilities: | ||
Current portion of principal payment obligations | $ 3,306 | $ 3,303 |
Unamortized debt issuance costs, current portion | (1,145) | (1,147) |
Current portion of long-term debt, net of unamortized debt issuance costs | 2,161 | 2,156 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | 300,130 | 300,958 |
Unamortized debt issuance costs, non-current portion | (5,215) | (5,499) |
Long-term debt, net of current portion and unamortized debt issuance costs | 294,915 | 295,459 |
Term Loans | ||
Current liabilities: | ||
Current portion of principal payment obligations | 3,000 | 3,000 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | 293,250 | 294,000 |
Mortgage Loan | ||
Current liabilities: | ||
Current portion of principal payment obligations | 306 | 303 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | $ 6,880 | $ 6,958 |
Debt - Additional Information (
Debt - Additional Information (Details) | Dec. 20, 2016USD ($) | Jul. 01, 2015USD ($)Installment | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 303,436,000 | $ 304,261,000 | |||
JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | Maximum | |||||
Debt Instrument [Line Items] | |||||
Maximum amount of increase in facilities | $ 70,000,000 | ||||
JPMorgan Chase Bank, N. A. | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate description | Borrowings under the facilities bear interest at a floating rate, which can be either a Eurodollar rate plus an applicable margin or, at the Company’s option, a base rate (defined as the highest of (x) the JPMorgan Chase, N.A. prime rate, (y) the federal funds effective rate, plus one-half percent (0.50%) per annum and (z) a one-month Eurodollar rate plus 1.00% per annum) plus an applicable margin. The applicable margin for borrowings under the term loan facility is 4.00% per annum for Eurodollar rate loans (subject to a 1.00% per annum interest rate floor) and 3.00% per annum for base rate loans. As a result of the completion of the Company’s IPO in December 2017, the applicable margin for borrowings under the revolving credit facility is 1.75% per annum for Eurodollar rate loans and 0.75% per annum for base rate loans, subject to reduction based on the Company’s maintaining of specified net leverage ratios. The interest rates payable under the facilities are subject to an increase of 2.00% per annum during the continuance of any payment default | ||||
Debt instrument prepayment description | In addition, the Company is required to make mandatory prepayments under the facilities with respect to (i) 100% of the net cash proceeds from certain asset dispositions (including casualty and condemnation events) by the Company or certain of its subsidiaries, subject to certain exceptions and reinvestment provisions, (ii) 100% of the net cash proceeds from the issuance or incurrence of any additional debt by the Company or certain of its subsidiaries, subject to certain exceptions, and (iii) 50% of the Company’s excess cash flow, as defined in the credit agreement, subject to reduction upon its achievement of specified performance targets. | ||||
Percentage of net proceeds from asset dispositions to be used for mandatory prepayment | 100.00% | ||||
Percentage of net cash proceeds from issuances or incurrence of additional Debt to be used for mandatory prepayment | 100.00% | ||||
Percentage on excess cash flow for mandatory prepayments of debt | 50.00% | ||||
JPMorgan Chase Bank, N. A. | Minimum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility borrowing capacity utilized percentage | 30.00% | ||||
Line of credit facility borrowing capacity not utilized percentage | 30.00% | 30.00% | |||
Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 296,250,000 | $ 297,000,000 | |||
Term Loan Facility | JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing amount under facility | $ 300,000,000 | ||||
Outstanding borrowings | $ 296,250,000 | $ 297,000,000 | |||
Term Loan Facility | JPMorgan Chase Bank, N. A. | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate stated percentage | 4.00% | ||||
Debt instrument, interest rate description | As of March 31, 2018, the interest rate on the Term Loans was 5.88% per annum, which was based on a one-month Eurodollar rate of 1.88% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. As of December 31, 2017, the interest rate on the Term Loans was 5.69% per annum, which was based on a three-month Eurodollar rate of 1.69% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. | ||||
Debt instrument, effective interest rate percentage | 5.88% | 5.69% | |||
Debt issuance costs | $ 7,811,000 | ||||
Debt instrument, principal payment | $ 750,000 | $ 750,000 | |||
Interest expense, including amortization of debt issuance costs | $ 4,516,000 | 4,039,000 | |||
Debt instrument, maturity date | Dec. 20, 2023 | ||||
Original principal amount of term loan amortization percentage | 1.00% | ||||
Principal amount of loan | $ 300,000,000 | ||||
Term Loan Facility | JPMorgan Chase Bank, N. A. | Eurodollar Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable interest rate percentage | 4.00% | 4.00% | |||
Debt instrument, effective interest rate percentage | 1.69% | ||||
Term Loan Facility | JPMorgan Chase Bank, N. A. | Floor Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable interest rate percentage | 1.88% | ||||
Debt instrument, interest rate stated percentage | 1.00% | ||||
Term Loan Facility | JPMorgan Chase Bank, N. A. | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate stated percentage | 3.00% | ||||
Commercial Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 7,186,000 | $ 7,261,000 | |||
Debt instrument, interest rate stated percentage | 3.50% | ||||
Interest expense, including amortization of debt issuance costs | 65,000 | 68,000 | |||
Debt instrument, maturity date | Jul. 1, 2020 | ||||
Principal amount of loan | $ 7,950,000 | ||||
Debt instrument, number of periodic payment installments | Installment | 60 | ||||
Debt instrument, principal and interest payment | $ 46,000 | ||||
Debt instrument payment, amortization period | 20 years | ||||
Debt issuance costs | $ 45,000 | ||||
Debt instrument, principal payment | $ 76,000 | 73,000 | |||
Debt instrument, Covenant description | The Mortgage Loan is secured by the land and building purchased in March 2015 and subjects the Company to various affirmative, negative and financial covenants, including maintenance of a minimum debt service ratio. The Company was in compliance with all covenants of the Mortgage Loan as of March 31, 2018 and December 31, 2017. | ||||
Revolving Credit Facility | JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing amount under facility | $ 25,000,000 | ||||
Outstanding borrowings | $ 0 | $ 0 | |||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate increase | 2.00% | ||||
Payment of quarterly commitment fees percentage | 0.25% | ||||
Interest expense related to the fee for the unused amount | $ 15,000 | $ 15,000 | |||
Debt instrument, maturity date | Dec. 20, 2021 | ||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | Federal Funds Effective Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable interest rate percentage | 0.50% | ||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | Eurodollar Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, variable interest rate percentage | 1.00% | ||||
Debt instrument, interest rate stated percentage | 1.75% | ||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate stated percentage | 0.75% | ||||
Stand-by Letter of Credit | JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, used as collateral amount | $ 1,000,000 |
Debt - Schedule of Aggregate Mi
Debt - Schedule of Aggregate Minimum Future Principal Payments of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,018 | $ 2,478 | |
2,019 | 3,314 | |
2,020 | 9,644 | |
2,021 | 3,000 | |
2,022 | 3,000 | |
Thereafter | 282,000 | |
Aggregate minimum future principal payments of debt | $ 303,436 | $ 304,261 |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Details) - USD ($) | May 10, 2017 | Dec. 21, 2016 | Jun. 17, 2016 | Nov. 30, 2014 | Nov. 30, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
November 2017 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, date declared | Nov. 30, 2017 | |||||||
Dividends to be paid | $ 0 | |||||||
Equitable adjustment payments of stock option, SARs and RSUs per share | $ 0.5802 | |||||||
Equitable adjustment payments year of stock option, SARs and RSUs | 2,021 | |||||||
Equitable adjustment payments, net of estimated forfeitures | $ 6,928,000 | |||||||
Common stock cash dividends declared | 19,572,000 | |||||||
Dividends and equitable adjustments | 49,930,000 | |||||||
November 2017 Special Dividend | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends paid | 387,000 | |||||||
November 2017 Special Dividend | Accrued Expenses And Other Current Liabilities | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends to be paid | 865,000 | |||||||
November 2017 Special Dividend | Accrued Expenses And Other Current Liabilities | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Equitable adjustment payments, net of estimated forfeitures | 1,348,000 | 1,735,000 | ||||||
November 2017 Special Dividend | Common Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | $ 0.5802 | |||||||
Dividends paid | 865,000 | |||||||
November 2017 Special Dividend | Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends paid | $ 865,000 | |||||||
November 2017 Special Dividend | Series B Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | 5.8020 | |||||||
Preferred stock cash dividends declared | 1,039,000 | |||||||
November 2017 Special Dividend | Series C Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | $ 5.8020 | |||||||
Preferred stock cash dividends declared | 22,391,000 | |||||||
May 2017 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, date declared | May 10, 2017 | |||||||
Dividends to be paid | $ 0 | 0 | ||||||
Equitable adjustment payments of stock option, SARs and RSUs per share | $ 1.1774 | |||||||
Equitable adjustment payments year of stock option, SARs and RSUs | 2,021 | |||||||
Equitable adjustment payments, net of estimated forfeitures | 12,723,000 | |||||||
Common stock cash dividends declared | 39,585,000 | |||||||
Dividends and equitable adjustments | 99,856,000 | |||||||
May 2017 Special Dividend | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends paid | 262,000 | |||||||
May 2017 Special Dividend | Accrued Expenses And Other Current Liabilities | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Equitable adjustment payments, net of estimated forfeitures | $ 2,030,000 | 2,292,000 | ||||||
May 2017 Special Dividend | Common Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | $ 1.1774 | |||||||
May 2017 Special Dividend | Series B Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | 11.7744 | |||||||
Preferred stock cash dividends declared | 2,108,000 | |||||||
May 2017 Special Dividend | Series C Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | $ 11.7744 | |||||||
Preferred stock cash dividends declared | 45,440,000 | |||||||
December 2016 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, date declared | Dec. 21, 2016 | |||||||
Dividends to be paid | 0 | |||||||
Equitable adjustment payments of stock option, SARs and RSUs per share | $ 2.3306 | |||||||
Equitable adjustment payments year of stock option, SARs and RSUs | 2,020 | |||||||
Dividends payable, date of record | Dec. 27, 2016 | |||||||
December 2016 Special Dividend | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends paid | $ 592,000 | $ 19,369,000 | ||||||
December 2016 Special Dividend | Accrued Expenses And Other Current Liabilities | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Equitable adjustment payments, net of estimated forfeitures | 4,134,000 | 4,726,000 | ||||||
December 2016 Special Dividend | Common Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | $ 2.3306 | |||||||
Dividends paid | 77,153,000 | |||||||
December 2016 Special Dividend | Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends paid | $ 77,153,000 | |||||||
December 2016 Special Dividend | Series B Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | 23.3058 | |||||||
December 2016 Special Dividend | Series C Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | $ 23.3058 | |||||||
June 2016 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, date declared | Jun. 17, 2016 | |||||||
Dividends to be paid | $ 0 | 0 | ||||||
Equitable adjustment payments of stock option, SARs and RSUs per share | $ 0.5891 | |||||||
Equitable adjustment payments year of stock option, SARs and RSUs | 2,020 | |||||||
June 2016 Special Dividend | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends paid | 119,000 | 177,000 | ||||||
June 2016 Special Dividend | Accrued Expenses And Other Current Liabilities | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Equitable adjustment payments, net of estimated forfeitures | 861,000 | 980,000 | ||||||
June 2016 Special Dividend | Common Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | $ 0.5891 | |||||||
Dividends paid | 0 | 0 | ||||||
June 2016 Special Dividend | Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends paid | $ 0 | 0 | ||||||
June 2016 Special Dividend | Series B Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | 5.8910 | |||||||
June 2016 Special Dividend | Series C Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | $ 5.8910 | |||||||
November 2014 Special Dividend | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, date declared | Nov. 30, 2014 | |||||||
Dividends to be paid | $ 0 | 0 | ||||||
Equitable adjustment payments of stock option and SARs per share | $ 0.3835 | |||||||
Equitable adjustment payments year of stock option and SARs | 2,018 | |||||||
November 2014 Special Dividend | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends paid | 16,000 | 40,000 | ||||||
November 2014 Special Dividend | Accrued Expenses And Other Current Liabilities | Vested Equity Awards | ||||||||
Class Of Stock [Line Items] | ||||||||
Equitable adjustment payments, net of estimated forfeitures | 47,000 | $ 63,000 | ||||||
November 2014 Special Dividend | Common Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | $ 0.3835 | |||||||
Dividends paid | 0 | 0 | ||||||
November 2014 Special Dividend | Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends paid | $ 0 | $ 0 | ||||||
November 2014 Special Dividend | Series B Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | 3.8346 | |||||||
November 2014 Special Dividend | Series C Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividends payable, amount per share | $ 3.8346 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Cash proceeds received upon the exercise of options | $ 675 | $ 40 | ||
Fair value of SAR liability | 4,538 | $ 2,305 | ||
Unrecognized compensation cost | $ 21,337 | |||
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 9 months 14 days | |||
Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average grant date fair value per share of options | $ 8.88 | $ 4.92 | ||
Cash proceeds received upon the exercise of options | $ 675 | $ 40 | ||
Intrinsic value of stock options exercised | $ 5,873 | $ 181 | ||
Stock Appreciation Rights | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares granted | 110,000 | |||
Grant-date price per share | $ 12.24 | |||
Grant-date fair value per share | $ 4.52 | |||
Award vesting period | 4 years | |||
Award expiration period | 10 years | |||
Number of award outstanding | 240,000 | |||
Number of award unvested | 60,000 | |||
Number of award exercisable | 180,000 | |||
Fair value of SAR | $ 24.07 | |||
Stock Appreciation Rights | Accrued Expenses And Other Current Liabilities | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Fair value of SAR liability | $ 4,321 | $ 2,155 | ||
2017 Stock Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorized for grant | 10,062,000 | |||
Number of remaining shares available for grant | 8,857,000 | |||
2011 and 2017 Stock Incentive Plan | Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares vested | 491,000 | |||
Number of shares granted | 103,000 | |||
Grant-date fair value per share | $ 24.87 | |||
Number of award outstanding | 508,000 | 896,000 | ||
2011 and 2017 Stock Incentive Plan | Restricted Stock Units | Common Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares of common stock in settlement of employee tax withholding obligations | 310,000 | |||
Shares vested | 0 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Outstanding Stock Option and Information Related to Stock Options Activity (Details) - 2003, 2011 and 2017 Stock Incentive Plan - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | 15,579 | |
Number of Shares, Granted | 462 | |
Number of shares, Exercised | (266) | |
Number of Shares, Forfeited | (59) | |
Number of Shares, Outstanding, Ending Balance | 15,716 | 15,579 |
Number of Shares, Options exercisable at March 31, 2018 | 11,868 | |
Number of Shares, Vested or expected to vest at March 31, 2018 | 15,479 | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ 4.55 | |
Weighted-Average Exercise Price, Granted | 24.28 | |
Weighted-Average Exercise Price, Exercised | 2.53 | |
Weighted-Average Exercise Price, Forfeited | 11.40 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance | 5.14 | $ 4.55 |
Weighted-Average Exercise Price, Options exercisable at March 31, 2018 | 3.14 | |
Weighted-Average Exercise Price, Vested or expected to vest at March 31, 2018 | $ 5.02 | |
Weighted-Average Remaining Contractual Term, Outstanding | 6 years 22 days | 6 years 2 months 5 days |
Weighted-Average Remaining Contractual Term, Options exercisable at March 31, 2018 | 5 years 3 months 8 days | |
Weighted-Average Remaining Contractual Term, Vested or expected to vest at March 31, 2018 | 6 years 4 days | |
Aggregate Intrinsic Value, Outstanding | $ 380,263 | $ 205,717 |
Aggregate Intrinsic Value, Options exercisable at March 31, 2018 | 310,894 | |
Aggregate Intrinsic Value, Vested or expected to vest at March 31, 2018 | $ 376,463 |
Stock-based Compensation - Assu
Stock-based Compensation - Assumptions of Estimated Fair Value of Option on the Date of Grant Using Black-Scholes Option Pricing Model (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.70% | |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.00% | |
Expected term (in years) | 6 years | 6 years |
Expected volatility | 32.40% | 38.10% |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.10% | |
Expected term (in years) | 6 years 2 months 12 days | 6 years 2 months 12 days |
Expected volatility | 32.60% | 38.50% |
Stock-based Compensation - Su58
Stock-based Compensation - Summary of RSU Activity (Details) - 2011 and 2017 Stock Incentive Plan - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested, Beginning Balance | shares | 896 |
Number of Shares, Granted | shares | 103 |
Number of Shares, Vested | shares | (491) |
Number of Shares, Unvested, Ending Balance | shares | 508 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 7.09 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 24.87 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 5.46 |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 12.27 |
Aggregate Fair Value, Vested | $ | $ 8,735 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 4,230 | $ 1,900 |
Cost of Revenue | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 209 | 71 |
Research and Development Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 2,018 | 516 |
Sales and Marketing Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 375 | 277 |
General and Administrative Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1,628 | $ 1,036 |
Net Income per Share - Schedule
Net Income per Share - Schedule of Basic and Diluted Net Income Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net income | $ 17,776 | $ 18,154 |
Cumulative dividends on convertible preferred stock | (1,451) | |
Undistributed earnings allocated to participating securities | (9,115) | |
Net income attributable to common stockholders, basic | 17,776 | 7,588 |
Undistributed earnings reallocated to dilutive potential common shares | 1,055 | |
Net income attributable to common stockholders, diluted | $ 17,776 | $ 8,643 |
Denominator: | ||
Weighted-average shares used to compute net income per share attributable to common stockholders, basic | 81,629 | 33,618 |
Dilutive effect of stock options | 11,713 | 9,279 |
Dilutive effect of restricted stock units | 252 | 402 |
Weighted-average shares used to compute net income per share attributable to common stockholders, diluted | 93,594 | 43,299 |
Net income per share attributable to common stockholders: | ||
Basic | $ 0.22 | $ 0.23 |
Diluted | $ 0.19 | $ 0.20 |
Net Income per Share - Schedu61
Net Income per Share - Schedule of Potential Common Shares Excluded from the Computation of Diluted Net Income Per Share Attributable to Common Stockholders (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Convertible Preferred Stock (on an as-converted basis) | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from computation of diluted net income per share | 40,382 | |
Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from computation of diluted net income per share | 462 | 1,399 |
Unvested Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from computation of diluted net income per share | 103 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information - Summary o
Segment Information - Summary of Revenue Based on Customers Location Determined by Customers Shipping Address (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 89,074 | $ 72,729 |
North America - United States | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 36,071 | 15,961 |
North America - Canada | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 10,092 | 13,846 |
North America | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 46,163 | 29,807 |
Europe, Middle East and Africa - Germany | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 8,134 | 8,196 |
Europe, Middle East and Africa - Other | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 16,023 | 12,877 |
Europe, Middle East and Africa | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 24,157 | 21,073 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 9,402 | 11,967 |
Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 9,352 | $ 9,882 |
Segment Information - Summary64
Segment Information - Summary of Revenue Based on Customers Location Determined by Customers Shipping Address (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2018Customer | |
Segment Reporting Information [Line Items] | |
Number of customers represents 10% or more of total revenue | 0 |
Revenue | Geographic Concentration Risk | |
Segment Reporting Information [Line Items] | |
Concentration risk percentage | 10.00% |
Segment Information - Schedule
Segment Information - Schedule of Property and Equipment, Net by Location (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 29,166 | $ 29,363 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 24,415 | 24,903 |
China | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 3,003 | 2,612 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 1,748 | $ 1,848 |
Related Parties - Additional In
Related Parties - Additional Information (Details) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | |||
May 31, 2012USD ($)$ / sharesshares | Mar. 31, 2012Occasion | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Consulting Agreement for Provision of Sales Management, Corporate Strategy and Advisory Services | Bill Styslinger Services as Non-Employee Director | |||||
Related Party Transaction [Line Items] | |||||
Amounts due to Mr. Styslinger | $ 51,000 | $ 0 | |||
Liberty Global Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Revenue from transactions with Liberty Global Affiliates | 15,731,000 | $ 14,953,000 | |||
Amounts received in cash from Liberty Global Affiliates | 13,892,000 | 12,431,000 | |||
Amounts due from Liberty Global Affiliates | 15,067,000 | $ 13,367,000 | |||
Bill Styslinger | Consulting Agreement for Provision of Sales Management, Corporate Strategy and Advisory Services | |||||
Related Party Transaction [Line Items] | |||||
Consulting agreement, initial expiration date | Jan. 31, 2014 | ||||
Consulting agreement, extended term, number of occasions | Occasion | 2 | ||||
Consulting agreement, extended expiration date | Dec. 31, 2016 | ||||
Stock options granted for purchase of common stock | shares | 600 | ||||
Weighted-Average Exercise Price, Granted | $ / shares | $ 1.69 | ||||
Grant-date fair value of award recorded as stock-based compensation expense over vesting period | $ 527,000 | ||||
Dividends paid | 0 | 616,000 | |||
Selling, general and administrative expenses recognized | $ 51,000 | 50,000 | |||
Bill Styslinger | Consulting Agreement for Provision of Sales Management, Corporate Strategy and Advisory Services | Special Dividends Declared on November 2014 | |||||
Related Party Transaction [Line Items] | |||||
Special dividends declared by board of directors, month and year | 2014-11 | ||||
Bill Styslinger | Consulting Agreement for Provision of Sales Management, Corporate Strategy and Advisory Services | Special Dividends Declared on June 2016 | |||||
Related Party Transaction [Line Items] | |||||
Special dividends declared by board of directors, month and year | 2016-06 | ||||
Bill Styslinger | Consulting Agreement for Provision of Sales Management, Corporate Strategy and Advisory Services | Special Dividends Declared on December 2016 | |||||
Related Party Transaction [Line Items] | |||||
Special dividends declared by board of directors, month and year | 2016-12 | ||||
Bill Styslinger | Consulting Agreement for Provision of Sales Management, Corporate Strategy and Advisory Services | Special Dividends Declared on May 2017 | |||||
Related Party Transaction [Line Items] | |||||
Special dividends declared by board of directors, month and year | 2017-05 | ||||
Bill Styslinger | Consulting Agreement for Provision of Sales Management, Corporate Strategy and Advisory Services | Special Dividends Declared on November 2017 | |||||
Related Party Transaction [Line Items] | |||||
Special dividends declared by board of directors, month and year | 2017-11 | ||||
Bill Styslinger | Consulting Agreement for Provision of Sales Management, Corporate Strategy and Advisory Services | Stock Options | |||||
Related Party Transaction [Line Items] | |||||
Stock options, vesting rights description | vested as to one-third of the shares under the award on February 1, 2013 and in equal monthly installments thereafter for the following two years. The grant-date fair value of the award totaled $527, which was recorded by the Company as stock-based compensation expense over the vesting period of the award. | ||||
Stock options, vesting period | 2 years | ||||
Bill Styslinger | Consulting Agreement for Provision of Sales Management, Corporate Strategy and Advisory Services | Stock Options | February 1, 2013 | |||||
Related Party Transaction [Line Items] | |||||
Stock options, vesting percentage | 33.33% | ||||
Rongke Xie | |||||
Related Party Transaction [Line Items] | |||||
Compensation paid | $ 79,000 | $ 100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Line Items] | |||
Rent expense | $ 253,000 | $ 210,000 | |
Deferred rent liability | 251,000 | $ 258,000 | |
Indemnification obligations material claims, outstanding | 0 | $ 0 | |
Pending Litigation | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Pending claims, charges or litigation | $ 0 | ||
United States | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Non-cancelable operating leases expiration year | 2,021 | ||
China | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Non-cancelable operating leases expiration year | 2,019 | ||
Spain | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Non-cancelable operating leases expiration year | 2,023 | ||
Ireland | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Non-cancelable operating leases expiration year | 2,026 | ||
Termination period of lease | 2,021 |
Commitments and Contingencies68
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-cancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 708 |
2,019 | 679 |
2,020 | 673 |
2,021 | 476 |
2,022 | 68 |
Thereafter | 5 |
Total | $ 2,609 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Follow-on Offering - Common Stock - Subsequent Event | Apr. 30, 2018USD ($)$ / sharesshares |
Subsidiary Sale Of Stock [Line Items] | |
Number of sares sold by selling stockholders | shares | 7,350,000 |
Sale of stock, price per share | $ / shares | $ 25 |
Period granted to underwriters to purchase additional shares | 30 days |
Number of shares that can be purchased by underwriters from selling stockholdeers | shares | 1,103,000 |
Number of selling stockholders shares sold by company | shares | 0 |
Proceeds from sale of shares of selling Stockholders | $ | $ 0 |
Amount disgorged by selling shareholders in connection with sale of shares | $ | 3,811,000 |
Selling, General and Administrative Expenses | |
Subsidiary Sale Of Stock [Line Items] | |
Transaction costs incurred on behalf of selling stockholders | $ | $ 825,000 |