Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CASA | |
Entity Registrant Name | Casa Systems Inc | |
Entity Central Index Key | 0001333835 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 83,830,152 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 264,411 | $ 280,587 |
Accounts receivable, net of provision for doubtful accounts of $1,665 and $410 as of March 31, 2019 and December 31, 2018, respectively | 50,091 | 81,782 |
Inventory | 67,773 | 50,997 |
Prepaid expenses and other current assets | 4,979 | 3,755 |
Prepaid income taxes | 1,636 | 390 |
Total current assets | 388,890 | 417,511 |
Property and equipment, net | 29,482 | 29,879 |
Accounts receivable, net of current portion | 1,997 | 2,388 |
Deferred tax assets | 23,703 | 21,578 |
Other assets | 3,694 | 3,293 |
Total assets | 447,766 | 474,649 |
Current liabilities: | ||
Accounts payable | 17,814 | 17,776 |
Accrued expenses and other current liabilities | 23,088 | 36,992 |
Accrued income taxes | 1,568 | 958 |
Deferred revenue | 31,319 | 31,206 |
Current portion of long-term debt, net of unamortized debt issuance costs | 2,184 | 2,179 |
Total current liabilities | 75,973 | 89,111 |
Accrued income taxes, net of current portion | 5,124 | 4,923 |
Deferred revenue, net of current portion | 8,504 | 12,479 |
Long-term debt, net of current portion and unamortized debt issuance costs | 292,731 | 293,280 |
Total liabilities | 382,332 | 399,793 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized as of March 31, 2019 and December 31, 2018; no shares issued and outstanding as of March 31, 2019 and December 31, 2018 | ||
Common stock, $0.001 par value; 500,000 shares authorized as of March 31, 2019 and December 31, 2018; 83,734 and 82,961 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 84 | 83 |
Additional paid-in capital | 159,992 | 156,939 |
Accumulated other comprehensive loss | (445) | (1,158) |
Accumulated deficit | (94,197) | (81,008) |
Total stockholders’ equity | 65,434 | 74,856 |
Total liabilities and stockholders’ equity | $ 447,766 | $ 474,649 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Provision for doubtful accounts | $ 1,665 | $ 410 |
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 | 83,734,000 | 82,961,000 |
Common stock, shares outstanding | 83,734,000 | 82,961,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Total revenue | $ 35,486 | $ 89,074 |
Cost of revenue: | ||
Total cost of revenue | 10,989 | 27,119 |
Gross profit | 24,497 | 61,955 |
Operating expenses: | ||
Research and development | 18,405 | 20,530 |
Selling, general and administrative | 20,193 | 18,456 |
Total operating expenses | 38,598 | 38,986 |
(Loss) income from operations | (14,101) | 22,969 |
Other income (expense): | ||
Interest income | 1,652 | 1,095 |
Interest expense | (5,197) | (4,672) |
Loss on foreign currency, net | (92) | (24) |
Other income, net | 229 | 201 |
Total other income (expense), net | (3,408) | (3,400) |
(Loss) income before (benefit from) provision for income taxes | (17,509) | 19,569 |
(Benefit from) provision for income taxes | (2,170) | 1,793 |
Net (loss) income | (15,339) | 17,776 |
Other comprehensive income—foreign currency translation adjustment | 713 | 1,162 |
Comprehensive (loss) income | (14,626) | 18,938 |
Net (loss) income attributable to common stockholders: | ||
Basic and diluted | $ (15,339) | $ 17,776 |
Net (loss) income per share attributable to common stockholders: | ||
Basic | $ (0.18) | $ 0.22 |
Diluted | $ (0.18) | $ 0.19 |
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders: | ||
Basic | 83,323 | 81,629 |
Diluted | 83,323 | 93,594 |
Product | ||
Revenue: | ||
Total revenue | $ 26,653 | $ 80,189 |
Cost of revenue: | ||
Total cost of revenue | 9,429 | 25,780 |
Service | ||
Revenue: | ||
Total revenue | 8,833 | 8,885 |
Cost of revenue: | ||
Total cost of revenue | $ 1,560 | $ 1,339 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | 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, net of shares withheld for employee taxes | 675 | $ 1 | 674 | ||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 758 | ||||
Foreign currency translation adjustment, net of tax | 1,162 | 1,162 | |||
Stock-based compensation | 2,064 | 2,064 | |||
Net (loss) 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 | ||||
Balances at Dec. 31, 2018 | 74,856 | $ 83 | 156,939 | (1,158) | (81,008) |
Balances, shares at Dec. 31, 2018 | 82,961 | ||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | 494 | $ 1 | 493 | ||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 773 | ||||
Foreign currency translation adjustment, net of tax | 713 | 713 | |||
Effect of adopted accounting standards (Note 2) | 2,150 | 2,150 | |||
Stock-based compensation | 2,560 | 2,560 | |||
Net (loss) income | (15,339) | (15,339) | |||
Balances at Mar. 31, 2019 | $ 65,434 | $ 84 | $ 159,992 | $ (445) | $ (94,197) |
Balances, shares at Mar. 31, 2019 | 83,734 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||
Foreign currency translation adjustment, tax | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Cash flows (used in) provided by operating activities: | |||
Net (loss) income | $ (15,339) | $ 17,776 | |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 2,396 | 2,302 | |
Stock-based compensation | 1,900 | 4,230 | |
Deferred income taxes | (2,700) | 1,040 | |
Increase in provision for doubtful accounts | 1,255 | ||
Excess and obsolete inventory valuation adjustment | (613) | (1,043) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 25,289 | 28,470 | |
Inventory | (16,986) | 7,713 | |
Prepaid expenses and other assets | (1,721) | 103 | |
Prepaid income taxes | (1,245) | (1,273) | |
Accounts payable | 1,165 | 1,644 | |
Accrued expenses and other current liabilities | (8,171) | (7,162) | |
Accrued income taxes | 812 | 1,969 | |
Deferred revenue | 109 | (4,626) | |
Net cash (used in) provided by operating activities | (13,849) | 51,143 | |
Cash flows used in investing activities: | |||
Purchases of property and equipment | (1,835) | (2,539) | |
Net cash used in investing activities | (1,835) | (2,539) | |
Cash flows used in financing activities: | |||
Principal repayments of debt | (828) | (826) | |
Proceeds from exercise of stock options | 1,498 | 675 | |
Employee taxes paid related to net share settlement of equity awards | (1,004) | ||
Payments of dividends and equitable adjustments | (761) | (2,241) | |
Payments of initial public offering costs | (976) | ||
Net cash used in financing activities | (1,095) | (3,368) | |
Effect of exchange rate changes on cash and cash equivalents | 609 | 1,039 | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (16,170) | 46,275 | |
Cash, cash equivalents and restricted cash at beginning of period | 281,606 | 260,820 | |
Cash, cash equivalents and restricted cash at end of period | [1] | 265,436 | 307,095 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 4,682 | 4,291 | |
Cash paid for income taxes | 683 | 53 | |
Supplemental disclosures of non-cash operating, investing and financing activities: | |||
Purchases of property and equipment included in accounts payable | 858 | 287 | |
Prepaid expenses and other current assets included in accounts payable | 157 | 241 | |
Deferred offering costs included in accounts payable and accrued expenses and other current liabilities | 171 | ||
Unpaid equitable adjustments included in accrued expenses and other current liabilities | 2,575 | 8,420 | |
Release of customer incentives included in accounts receivable and accrued expenses and other current liabilities | $ 5,389 | $ 5,754 | |
[1] | See Note 2 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash shown in these condensed consolidated statements of cash flows. |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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, Colombia, the Netherlands and Hong Kong. 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. On April 30, 2018, the Company closed its follow-on public offering in which certain stockholders sold 7,350 shares of the Company’s common stock at a price of $25.00 per share, before deducting underwriting discounts and commissions (the “follow-on offering”). The Company did not sell any common stock in the follow-on offering and did not receive any of the proceeds from the sale of the Company’s common stock by the selling stockholders. In connection with the sale of the Company’s common stock in the follow-on offering, certain of the selling stockholders disgorged $3,770 of profits recognized from the sale, after deducting $41 of offering costs, to the Company in accordance with Section 16(b) of the Securities Exchange Act of 1934, as amended, which was recorded as an increase in additional paid-in capital. The Company incurred $856 of transaction costs in connection with the follow-on offering, of which $815 was recorded in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. 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, 2019, the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2019 and 2018, the condensed consolidated statements of cash flows for the three months ended March 31, 2019 and 2018 and the condensed consolidated statements of stockholders’ equity for the three months ended March 31, 2019 and 2018 are unaudited. The financial data and other information disclosed in these notes related to the three months ended March 31, 2019 and 2018 are also unaudited. The accompanying condensed consolidated balance sheet as of December 31, 2018 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 28, 2019 (the “Annual Report on Form 10-K”). 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 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, 2019 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, 2019 | |
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, (benefit from) 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. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all highly liquid investments maturing within three months from the date of purchase. As of March 31, 2019 and December 31, 2018, the Company’s cash and cash equivalents consisted of investments in certificates of deposit and money market mutual funds. Restricted cash, which was included in other assets as of March 31, 2019 and December 31, 2018, consisted of a certificate of deposit of $1,000 pledged as collateral for a stand-by letter of credit required to support a contractual obligation. The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows: March 31, 2019 March 31, 2018 Cash and cash equivalents $ 264,411 $ 307,095 Restricted cash included in other assets 1,025 — $ 265,436 $ 307,095 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 customer contracts 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. In limited instances, for certain customers and/or for certain transactions, the Company provides extended payment terms that are considered significant financing components. These extended payment terms 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. In certain circumstances, the receivables may be collateralized by the underlying assets over the payment period. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. Accounts receivable as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 December 31, 2018 Current portion of accounts receivable, net: Accounts receivable, net $ 48,003 $ 79,526 Accounts receivable, extended payment terms 2,088 2,256 50,091 81,782 Accounts receivable, net of current portion: Accounts receivable, extended payment terms 1,997 2,388 $ 52,088 $ 84,170 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 selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss). As of March 31, 2019 and December 31, 2018, the Company concluded that all amounts due under extended payment terms were collectible and no reserve for credit losses was recorded. During the three months ended March 31, 2019 and 2018, the Company did not provide a reserve for credit losses and did not write off any uncollectible receivables due under extended payment terms. 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, 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 and are set forth in the following tables: Revenue Accounts Receivable, Net Three Months Ended March 31, March 31, December 31, 2019 2018 2019 2018 Customer A 25 % 27 % 16 % 13 % Customer B 12 % 18 % 14 % 15 % Customer C * * * 18 % Customer D * * 28 % 28 % Customer E * 12 % * * * Less than 10% of total Customer B, Liberty Global Affiliates, was a related party prior to October 19, 2018, when it disposed a portion of its ownership of the Company’s stock (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. Revenue Recognition Effective January 1, 2019, the Company adopted ASC Topic 606, Revenue from Contracts with Customers The Company generates revenue from sales of its products, along with associated maintenance, support and extended hardware warranty services, and, to a lesser extent, from sales of professional services. The Company also generates revenue from sales of additional line cards and software-based capacity expansions. Maintenance and support services include telephone support, bug fixes and unspecified software upgrades and updates provided on a when-and-if-available basis and/or extended hardware warranty. In the Company’s condensed consolidated statements of operations and comprehensive income (loss), revenue from sales of broadband products and capacity expansions is classified as product revenue, and revenue from maintenance and support and professional services is classified as service revenue. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised products or services. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to receive in exchange for these products or services. To achieve the core principle of this standard, the Company applies the following five steps: 1) Identify the contract with a customer 2) Identify the performance obligations in the contract 3) Determine the transaction price 4) Allocate the transaction price to performance obligations in the contract 5) Recognize revenue when or as the Company satisfies a performance obligation Performance Obligations The majority of the Company’s contracts with customers contain multiple performance obligations including products and maintenance services, and on a limited basis, professional services. For these contracts, the Company accounts for individual performance obligations separately if they are considered distinct. The Company’s broadband products, Axyom products, maintenance services and professional services are considered distinct performance obligations. When multiple performance obligations exist in a customer contract, the transaction price is allocated to the separate performance obligations on a relative SSP basis. Determination of SSP requires judgment and is based on the best evidence available which may include the standalone selling price of products when sold on a standalone basis to similar customers in similar circumstances, or in the absence of standalone sales, taking into consideration the Company’s historical pricing practices by customer type, selling method (i.e. resellers or direct), and geographic-specific market factors. Product revenue The Company’s broadband products have both software and non-software (i.e., hardware) components that function together to deliver the products’ essential functionality. Broadband hardware products generally cannot be used apart from the embedded software and is considered one distinct performance obligation. Revenue on broadband hardware products with embedded software is recognized at a point in time when control of the products is transferred to the customer, which is typically when risk of loss has transferred and the right to payment is enforceable. This is generally when the product has shipped or been delivered, based on agreed-upon shipping terms. The Company also earns revenue from the sale of software-enabled capacity expansions. Revenue on software-enabled capacity expansions are distinct performance obligations as they are separately identifiable and provide additional bandwidth capacity on hardware products already purchased by the customer. Revenue is recognized on software-enabled capacity expansions when control is transferred, which is typically when risk of loss has transferred and the right to payment is enforceable. This is generally when the software-based capacity expansions are made available to the customer. The Company also generates revenue from the sale of its Axyom software platform and related delivery platform hardware including indoor and outdoor Apex small cells. Perpetual licenses and hardware are distinct performance obligations as they are separately identifiable and the customer can benefit from the licenses and hardware on their own. Revenue is recognized at a point in time when control of the products is transferred to the customer, which is typically when risk of loss has transferred and the right to payment is enforceable. Generally, this occurs when software licenses are made available to customers and hardware products are shipped or delivered, based on agreed-upon shipping terms. When customer contracts require acceptance of product and services, the Company considers the nature of the acceptance provisions to determine if they are substantive or considered a formality that does not impact the timing of revenue recognition. When acceptance provisions are considered substantive, the Company will defer revenue on all performance obligations in the contract subject to acceptance until acceptance has been received. The Company does not defer revenue when acceptance provisions are deemed a formality. Maintenance and support services and professional services revenue The Company’s broadband and Axyom products are sold with maintenance and support services, a distinct performance obligation, that includes the stand-ready obligation to provide telephone support, bug fixes and unspecified software upgrades and updates provided on a when-and-if-available basis and/or extended hardware warranty. After the initial sale, customers may purchase annual renewals of support contracts. The Company’s telephone support and unspecified upgrades and updates are delivered over time and therefore revenue is recognized ratable over the contract term, which is typically one year, but can be as long as three to five years. The Company also generates revenue from sales of professional services, such as installation, configuration and training. Professional services are a distinct performance obligation since the Company’s products are functional without these services and can generally be performed by the customer or a third party. Professional services are generally delivered over time, with revenue recognized as services are performed, which is generally based on labor hours incurred during the period compared to the total estimated labor hours. The sale of the Company’s products generally includes a 90-day warranty on the software and a one-year warranty on the hardware component of the products, which includes repair or replacement of the applicable hardware. These warranties are to ensure the products perform in accordance with the Company’s specifications and are therefore not a performance obligation. The Company records a warranty accrual for the initial software and hardware warranty included with product sales and does not defer revenue. Resellers and Sales Agents The Company markets and sell its products through its direct global sales force, supported by sales agents, and through resellers. The Company’s resellers receive an order from an end customer prior to placing an order with the Company, and the Company confirms the identification of or is aware of the end customer prior to accepting such order. The Company invoices the reseller an amount that reflects a reseller discount and records revenue based on the amount of the discounted transaction value. The Company’s resellers do not stock inventory received from the Company. When the Company transacts with a reseller, the contract is with the reseller and not with the end customer. Whether the Company transacts business with and receives the order from a reseller or directly from an end customer, its revenue recognition policy and resulting pattern of revenue recognition for the order are the same. The Company also uses sales agents that assist in the sales process with certain customers primarily located in the Latin America and Asia-Pacific regions. Sales agents are not resellers. If a sales agent is engaged in the sales process, the Company receives the order directly from and sells the products and services directly to the end customer, and the Company pays a commission to the sales agent, calculated as a percentage of the related transaction value. Accounting considerations related to sales agent commissions are discussed in the “Costs to Obtain or Fulfill a Contract” section below. The Company has assessed whether it is the principal (i.e., reports revenues on a gross basis) or agent (i.e., reports revenues on a net basis) by evaluating whether it has control of the good or service before it is transferred to the customer. Generally, the Company controls the promised good or service before transferring it to the customer and acts as the principal in the transaction. Accordingly, the Company reports revenues on a gross basis. Costs to Obtain or Fulfill a Contract The Company capitalizes commission expenses paid to internal sales personnel and sales agent commissions that are incremental to obtaining customer contracts, for which the related revenue is recognized over a future period. These costs are incurred on initial sales of product, maintenance and professional services and maintenance and support contract renewals. The Company defers these costs and amortizes them over the period of benefit, which the Company generally considers to be the contract term or length of the longest delivery period as contract capitalization costs in the condensed consolidated balance sheets. Commissions paid relating to contract renewals are deferred and amortized on a straight-line basis over the related renewal period as commissions paid on renewals are commensurate with commissions paid on initial sales transactions. The Company periodically reviews the carrying amount of capitalized contract costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. The Company also pays commissions on maintenance and support contract renewals. Commissions paid on renewals are commensurate with commissions paid on the initial maintenance and support contracts. These commissions are deferred and amortized on a straight-line basis over the related renewal period. Costs to obtain a contract for professional services contracts are expensed as incurred in accordance with the practical expedient as the contractual period of our professional services contracts are one year or less. As of January 1, 2019 and March 31, 2019, the Company had short-term capitalized contract costs of $209 and $169, which are included in prepaid assets and other current assets and had long-term capitalized contract costs of $128 and $102, respectively, which are included in other assets in the accompanying condensed consolidated balance sheets. During the three months ended March 31, 2019, amortization expense associated with capitalized contract costs was $66, which was recorded to selling, general and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income (loss). Deferred Revenue Amounts billed in excess of revenue recognized are recorded as deferred revenue. Deferred revenue includes customer deposits, amounts billed for maintenance and support services contracts in advance of services being performed, amounts for trade-in right liabilities and amounts related to contracts that have been deferred as a result of not meeting the required revenue recognition criteria as of the end of the reporting period. Deferred revenue expected to be recognized as revenue more than one year subsequent to the balance sheet date is reported within long-term liabilities in the condensed consolidated balance sheets. The Company defers recognition of direct costs, such as cost of goods and services, until recognition of the related revenue. Such costs are classified as current assets if the related deferred revenue is classified as current, and such costs are classified as non-current assets if the related deferred revenue is classified as non-current. Other Revenue Recognition Policies The Company’s customary payment terms are generally one year or less. The Company has elected to apply the practical expedient that allows an entity to not adjust the promised amount of consideration in customer contracts for the effect of a significant financing component when the period between the transfer of product and services and payment of the related consideration is less than one year. If the Company provides extended payment terms that represent a significant financing component, the Company adjusts the amount of promised consideration for the time value of money using its discounted rate and recognizes interest income separate from the revenue recognized on contracts with customers. During the three months ended March 31, 2019, the Company recorded $26 in interest income in the condensed consolidated statements of operations and comprehensive income (loss). In limited instances, the Company has offered future rebates to customers based on a fixed or variable percentage of actual sales volumes over specified periods. The future rebates earned based on the customer’s purchasing from the Company in one period may be used as credits to be applied by them against accounts receivable due to the Company in later periods. The Company accounts for these future rebates as variable consideration and reduces the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the variable consideration is resolved. The reduction of the transaction price is estimated based on historical activity and other relevant factors and is recognized when the Company recognizes revenue for the transfer of goods and services to the customer on which the future rebate was earned. Other forms of contingent revenue or variable consideration are infrequent. When a customer contract includes future trade-in rights, which are distinct performance obligations, the Company accounts for the customer contract by recognizing the revenue on the products transferred, deferring revenue allocated to the future product based on a relative standalone selling price, and an asset for the value of the trade-in product to be recovered from the customer upon delivery of the future product. The Company assesses and updates these estimates each reporting period, and updates to these estimates may result in either an increase or decrease in the amount of the future product liability and product return asset. The Company recognizes revenue allocated to the future product when the product has shipped or been delivered and control has transferred. As of March 31, 2019, there were no future product liabilities or product return assets. The Company excludes any taxes assessed by a governmental authority that are directly imposed on a revenue-producing transaction (e.g., sales, use and value added taxes) from its transaction price. Billings to customers for reimbursement of out-of-pocket expenses, including travel, lodging and meals, are recorded as revenue, and the associated costs incurred by the Company for those items are recorded as cost of revenue. Revenue related to the reimbursement of out-of-pocket costs are accounted for as variable consideration. The Company accounts for any shipping and handling activities that occur after the customer has taken control of a product as a fulfilment cost rather than an additional promised service. Shipping and handling billed to customers is recorded as an offset to cost of revenue. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue when the Company satisfies its performance obligations, consistent with the above methodology. For the three-month period ended March 31, 2019, the Company recognized $7,269 revenue that was included in deferred revenue as of January 1, 2019. The Company receives payments from customers based upon contractual billing terms. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the Company’s contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced. As of January 1, 2019 and March 31, 2019, the Company included contract assets of $28 and $267, respectively, which is included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets. Transaction price allocated to the remaining performance obligations As of March 31, 2019, the aggregate remaining amount of revenue expected to be recognized related to unsatisfied or partially unsatisfied performance obligations is $39,823. The Company expects approximately 79% of this amount to be recognized in the next twelve months with the remaining to be recognized over the next two to five years. Disaggregation of revenue The Company disaggregates its revenue by product and service in the condensed consolidated statements of operations and comprehensive income (loss). Performance obligations related to product revenue are recognized at a point in time, while performance obligations related to service revenue are recognized over time. The Company also disaggregates its revenue based on geographic locations of its customers, as determined by the customer’s shipping address. See Note 13, Segment Information Transition Disclosures In accordance with the modified retrospective method transition requirements, the Company will present the financial statement line items impacted and adjusted to compare to presentation under ASC 605 for each of the interim and annual periods during the first year of adoption of ASC 606: As of March 31, 2019 Balance Sheet As Reported under ASC 606 Adjustments Without adoption of ASC 606 Assets: Accounts receivable $ 50,091 $ 163 $ 50,254 Inventory 67,773 355 68,128 Prepaid expenses and other current assets 4,979 (169 ) 4,810 Accounts receivable, net of current portion 1,997 40 2,037 Deferred tax assets 23,703 592 24,295 Other assets 3,694 (102 ) 3,592 Total assets $ 447,766 $ 879 $ 448,645 Liabilities: Accrued expenses and other current liabilities $ 23,088 $ (1,010 ) $ 22,078 Deferred revenue 31,319 2,178 33,497 Deferred revenue, net of current portion 8,504 1,856 10,360 Total liabilities 382,332 3,024 385,356 Stockholders’ Equity: Accumulated deficit (94,197 ) (2,145 ) (96,342 ) Total stockholders’ equity 65,434 (2,145 ) 63,289 Total liabilities and stockholders’ equity $ 447,766 $ 879 $ 448,645 Total reported assets under ASC 606 as of March 31, 2019 were $879 less than the total assets without the adoption of ASC 606 largely due to a reduction in deferred tax assets and deferred inventory costs related to contracts for which deferred revenue was adjusted to retained earnings, partially offset by increases in prepaid and other current assets and other assets related to contract costs capitalized under ASC 606 that would have been expensed when incurred under ASC 605. Total reported liabilities under ASC 606 were $3,024 less than the total liabilities without the adoption of ASC 606 primarily driven by the adjustment of deferred revenue related to a customer contract for which revenue was recognized based on receipt of cash payments under ASC 605 that would have been recognized upon product acceptance under ASC 606, offset by an increase in accrued partner commissions in accrued expenses and other current liabilities. These partner commissions were previously being recognized in the period which cash was received and revenue was recognized. Upon the adoption of ASC 606, partner commission are reflected as a cost to obtain a contract and they are expensed consistent with the pattern of revenue recognition on this contract. Three Months Ended March 31, 2019 Statement of Operations and Comprehensive Income (Loss) As Reported under ASC 606 Adjustments Without adoption of ASC 606 Revenue: Product $ 26,653 $ 3 $ 26,656 Service 8,833 9 8,842 Total revenue 35,486 12 35,498 Cost of revenue: Product 9,429 13 9,442 Gross profit 24,497 (1 ) 24,496 Operating expenses: Selling, general and administrative 20,193 (31 ) 20,162 Loss from operations (14,101 ) 30 (14,071 ) Other income (expense): Interest income 1,652 (26 ) 1,626 Loss before benefit from income taxes (17,509 ) 4 (17,505 ) Net loss (15,339 ) 4 (15,335 ) Comprehensive loss $ (14,626 ) $ 4 $ (14,622 ) Net loss per share attributable to common stockholders: Basic and diluted $ (0.18 ) $ — $ (0.18 ) The adoption of ASC 606 had an insignificant impact on product and services revenues and cost of revenue. Selling, general and administrative expenses were higher as reported under ASC 606 compared to selling, general and administrative expenses without the adoption of ASC 606 primarily due to the amortization of contract costs. Three Months Ended March 31, 2019 Statement of Cash Flows As Reported under ASC 606 Adjustments Without adoption of ASC 606 Cash flows (used in) provided by operating activities: Net loss $ (15,339 ) $ 4 $ (15,335 ) Changes in operating assets and liabilities: Accounts receivable 25,289 26 25,315 Inventory (16,986 ) 13 (16,973 ) Prepaid expenses and other assets (1,721 ) (66 ) (1,787 ) Accrued expenses and other current liabilities (8,171 ) 35 (8,136 ) Deferred revenue 109 (12 ) 97 Net cash used in operating activities $ (13,849 ) $ — $ (13,849 ) The adoption of ASC 606 resulted in offsetting changes in operating assets and liabilities and had no impact on net cash flow from operations. Impact In May 2014, the FASB issued ASC 606, which supersedes existing revenue recognition guidance under GAAP. The core principle of this standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASC 606 on January 1, 2019, using the modified retrospective method. Under this method of adoption, the Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. Comparative prior year periods were not adjusted. As a result of applying the modified retrospective method to adopt ASC 606, the following adjustments were made to the condensed consolidated balance sheet as of January 1, 2019: December 31, 2018 January 1, 2019 As reported Adjustments As adjusted Assets: Accounts receivable $ 81,782 $ (153 ) $ 81,629 Inventory 50,997 (368 ) 50,629 Prepaid expenses and other current assets 3,755 209 3,964 Accounts receivable, net of current portion 2,388 (75 ) 2,313 Deferred tax assets 21,578 (592 ) 20,986 Other assets 3,293 128 3,421 Total assets $ 474,649 $ (851 ) $ 473,798 Liabilities: Accrued expenses and other current liabilities $ 36,992 $ 1,045 $ 38,037 Deferred revenue 31,206 (2,190 ) 29,016 Deferred revenue, net of current portion 12,479 (1,856 ) 10,623 Total liabilities 399,793 (3,001 ) 396,792 Stockholders’ equity: Accumulated deficit (81,008 ) 2,150 (78,858 ) Total stockholders’ equity 74,856 2,150 77,006 Total liabilities and stockholders’ equity $ 474,649 $ (851 ) $ 473,798 Upon adoption of ASC 606 on January 1, 2019, the Company recorded a decrease to accumulated deficit of $2,150 as a result of the transition. The impact of the adoption primarily relates to the cumulative effect of a $4,046 total decrease in deferred revenue and deferred revenue, net of current portion primarily related to a customer contract for which revenue was recognized based on receipt of cash payments under ASC 605 that would have been recognized upon product acceptance under ASC 606 and contracts; a $1,045 increase in accrued expenses and other current liabilities related to partner commissions that were previously being recognized in the period which cash was received and revenue was recognized, but would have been reflected as a cost to obtain a contract and expensed consistent with the pattern of revenue recognition on the contract; a $368 decrease in inventory related to the adjustment of deferred cost of goods sold on deferred revenue also adjusted as part of the adoption; a $337 total increase in prepaid expenses and other current assets and other assets for short term and long term capitalized contract costs on open contracts as of the adoption date; a $228 total decrease in accounts receivable and accounts receivable, net of current portion related to a contract with a significant financing component; and a $592 decrease in deferred tax assets related to the above items. Impact of Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases Codification Improvements to Topic 842: Leases Leases (Topic 842), Targeted Improvements Leases (Topic 842) – Narrow-Scope Improvements for Lessors 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. Additionally, in November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2018-19”), which mitigates transition complexity by requi |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | 3. Inventory Inventory as of March 31, 2019 and December 31, 2018 March 31, 2019 December 31, 2018 Raw materials $ 8,805 $ 6,524 Work in process 148 571 Finished goods: Manufactured finished goods 58,040 45,594 Deferred inventory costs 2,938 1,073 69,931 53,762 Valuation adjustment for excess and obsolete inventory (2,158 ) (2,765 ) $ 67,773 $ 50,997 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 December 31, 2018 Computers and purchased software $ 17,059 $ 15,706 Leasehold improvements 1,354 1,340 Furniture and fixtures 1,951 1,949 Machinery and equipment 21,781 21,979 Land 3,091 3,091 Building 4,765 4,765 Building improvements 5,287 5,245 Trial systems at customers’ sites 6,992 7,116 62,280 61,191 Less: Accumulated depreciation and amortization (32,798 ) (31,312 ) $ 29,482 $ 29,879 During the three months ended March 31, 2019 and 2018, the Company transferred trial systems from inventory into (from) property and equipment with values of $(109) and $(65), respectively, net of transfers of trial systems to cost of revenue. In addition, the Company transferred $(411) and $65 of equipment (to) from inventory (from) into property and equipment during the three months ended March 31, 2019 and 2018, respectively. Total depreciation and amortization expense was $2,396 and $2,302 for the three months ended March 31, 2019 and 2018, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 consisted of the following: March 31, 2019 December 31, 2018 Accrued compensation and related taxes $ 11,007 $ 18,301 Accrued warranty 877 926 Dividends and equitable adjustments payable (see Note 10) 2,575 3,336 Accrued customer incentives 358 5,368 Other accrued expenses 8,271 9,061 $ 23,088 $ 36,992 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 condensed 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, 2019 and 2018 is as follows: Three Months Ended March 31, 2019 2018 Warranty reserve at beginning of period $ 926 $ 1,246 Provisions 525 353 Charges (574 ) (468 ) Warranty reserve at end of period $ 877 $ 1,131 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of March 31, 2019 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 20,803 $ — $ 20,803 Certificates of deposit—restricted cash — 1,025 — 1,025 Money market mutual funds 235,132 — — 235,132 Foreign currency forward contracts — 85 — 85 $ 235,132 $ 21,913 $ — $ 257,045 Liabilities: SARs $ — $ — $ 727 $ 727 $ — $ — $ 727 $ 727 Fair Value Measurements as of December 31, 2018 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 19,873 $ — $ 19,873 Certificates of deposit—restricted cash — 1,019 — 1,019 Money market mutual funds 252,963 — — 252,963 Foreign currency forward contracts — 254 — 254 $ 252,963 $ 21,146 $ — $ 274,109 Liabilities: SARs $ — $ — $ 1,387 $ 1,387 Foreign currency forward contracts — 252 — 252 $ — $ 252 $ 1,387 $ 1,639 During the three months ended March 31, 2019 and 2018, there were no 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, 2019 from those included in the Company’s audited consolidated financial statements for the year ended December 31, 2018. The following table provides a summary of changes in the fair values of the Company’s stock appreciation rights (“SARs”) liability, for which fair value is determined by Level 3 inputs: Three Months Ended March 31, 2019 2018 Fair value at beginning of period $ 1,387 $ 2,155 Change in fair value (660 ) 2,166 Exercises — — Fair value at end of period $ 727 $ 4,321 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019, the Company had foreign currency forward contracts outstanding with notional amounts totaling 6,679 Euros maturing in the second and third quarters of 2019. As of December 31, 2018, the Company had foreign currency forward contracts outstanding with notional amounts totaling 25,741 Euros maturing in the second and third quarters of 2019. 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 condensed consolidated statements of operations and comprehensive income (loss) as a component of other income (expense). The Company records all derivative instruments in the condensed consolidated balance sheet at their fair values. As of March 31, 2019 and December 31, 2018, the Company recorded an asset of $85 and $254, respectively, and as of December 31, 2018, the Company recorded a liability of $252 related to outstanding foreign currency forward contracts, which were included in prepaid expenses and other current assets and in accrued expenses and other current liabilities, respectively, in the condensed consolidated balance sheets. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The Company’s effective income tax rate was 12.4% and 9.2% for the three months ended March 31, 2019 and 2018, 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 (benefit from) provision for income taxes was $(2,170) and $1,793 for the three months ended March 31, 2019 and 2018, 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 reflected as discrete adjustments 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, 2019 and 2018 differed from the federal statutory rate due to the foreign tax rate differential, permanent differences, research and development tax credits, foreign tax credits and excess tax benefit from stock-based transactions. Permanent differences primarily included global intangible low-taxed income partially offset by a deduction for foreign-derived intangible income. The change in the (benefit from) provision for income taxes for the three months ended March 31, 2019 compared to the three months ended March 31, 2018 was primarily due to the pre-tax book loss for the three months ended March 31, 2019 compared to pre-tax book income for the three months ended March 31, 2018. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt The aggregate principal amount of debt outstanding as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, 2019 2018 Term loans $ 293,250 $ 294,000 Mortgage loan 6,880 6,958 Total principal amount of debt outstanding $ 300,130 $ 300,958 Current and non-current debt obligations reflected in the condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, 2019 2018 Current liabilities: Term loans $ 3,000 $ 3,000 Mortgage loan 316 314 Current portion of principal payment obligations 3,316 3,314 Unamortized debt issuance costs, current portion (1,132 ) (1,135 ) Current portion of long-term debt, net of unamortized debt issuance costs $ 2,184 $ 2,179 Non-current liabilities: Term loans $ 290,250 $ 291,000 Mortgage loan 6,564 6,644 Non-current portion of principal payment obligations 296,814 297,644 Unamortized debt issuance costs, non-current portion (4,083 ) (4,364 ) Long-term debt, net of current portion and unamortized debt issuance costs $ 292,731 $ 293,280 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, 2019 and December 31, 2018, $293,250 and $294,000 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. 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, 2019, the interest rate on the Term Loans was 6.50% per annum, which was based on a one-month Eurodollar rate of 2.50% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. As of December 31, 2018, the interest rate on the Term Loans was 6.52% per annum, which was based on a one-month Eurodollar rate of 2.52% 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, 2019 and 2018. Interest expense, including the amortization of debt issuance costs, totaled $4,958 and $4,516 for the three months ended March 31, 2019 and 2018, 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, 2019 and 2018, interest expense related to the fee for the unused amount of the revolving credit facility totaled $16 and $15, respectively. 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, 2019 and December 31, 2018, 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 $78 and $76 during the three months ended March 31, 2019 and 2018, respectively. Interest expense, including the amortization of debt issuance costs, totaled $63 and $65 for the three months ended March 31, 2019 and 2018, 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, 2019 and December 31, 2018. As of March 31, 2019, aggregate minimum future principal payments of the Company’s debt are summarized as follows: Year Ending December 31, 2019 $ 2,486 2020 9,644 2021 3,000 2022 3,000 2023 3,000 Thereafter 279,000 $ 300,130 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
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. No dividend payments with respect to this special dividend were payable as of March 31, 2019 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 restricted stock units (“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, 2019 and 2018, the Company paid $122 and $387, respectively, to the holders of such vested equity awards. As of March 31, 2019 and December 31, 2018, equitable adjustment payments to be made as equity awards vest through fiscal year 2021, net of estimated forfeitures, totaled $481 and $603, respectively, and were included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets. 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. Related to this special dividend declared in May 2017, the Company paid no dividends to the common and preferred stockholders during the three months ended March 31, 2019 and 2018. No dividend payments with respect to this special dividend were payable as of March 31, 2019 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, 2019 and 2018 March 31, 2019 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 no dividends to the common and preferred stockholders during the three months ended March 31, 2019 and 2018. No dividend payments with respect to this special dividend were payable as of March 31, 2019 and December 31, 2018. 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, 2019 and 2018 March 31, 2019 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, 2019 and 2018 March 31, 2019 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, 2019 and 2018 March 31, 2019 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, 2019 and 2018 March 31, 2019 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, 2019 and 2018 Stock Repurchase Program On February 21, 2019, the Company announced a stock repurchase program authorizing it to repurchase up to $75,000 of the Company’s common stock. During the three months ended March 31, 2019, the Company did not repurchase any shares. As of March 31, 2019, $75,000 remained authorized for repurchases of the Company’s common stock under the stock repurchase program. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
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 13,500 shares as of , of which 10,833 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, 2019 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding at January 1, 2019 9,566 $ 7.29 6.35 $ 61,561 Granted 38 9.50 Exercised (613 ) 2.44 Forfeited (34 ) 11.37 Outstanding at March 31, 2019 8,957 $ 7.62 6.26 $ 23,351 Options exercisable at March 31, 2019 6,804 $ 5.71 5.64 $ 23,264 Vested or expected to vest at March 31, 2019 8,836 $ 7.52 6.23 $ 23,350 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, 2019 2018 Risk-free interest rate 2.5% 2.7% Expected term (in years) 6.1–6.2 6.0–6.2 Expected volatility 30.5%–30.6% 32.4%–32.6% Expected dividend yield 0.0% 0.0% The weighted-average grant-date fair value of options granted during the three months ended March 31, 2019 and 2018 was $3.33 and $8.88 per share, respectively. Cash proceeds received upon the exercise of options were $1,498 and $675 during the three months ended March 31, 2019 and 2018, respectively. The intrinsic value of stock options exercised during the three months ended March 31, 2019 and 2018 was $4,770 and $5,873, 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, 2019 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2019 759 $ 13.40 Granted 943 11.79 Vested (237 ) 9.06 $ 3,092 Forfeited (25 ) 14.99 Unvested balance at March 31, 2019 1,440 $ 13.03 The Company withheld 76 shares of common stock in settlement of employee tax withholding obligations due upon the vesting of RSUs during the three months ended March 31, 2019. During the three months ended March 31, 2018, the Company withheld no Stock Appreciation Rights In January 2017, the Company granted 110 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, 2019, 240 SARs were outstanding and 27 were unvested. As of March 31, 2019, there were 213 SARs exercisable and the weighted-average fair value was $3.59 per SAR. The fair value of the SAR liability as of March 31, 2019 and December 31, 2018 was $727 and $1,387, respectively, (see Note 6) and was included in accrued expenses and other current liabilities in the accompanying condensed 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, 2019 and 2018 was classified in the condensed consolidated statements of operations and comprehensive income (loss) as follows: Three Months Ended March 31, 2019 2018 Cost of revenue $ 71 $ 209 Research and development expenses 141 2,018 Selling, general and administrative expenses 1,688 2,003 $ 1,900 $ 4,230 As of March 31, 2019, there was $25,500 of unrecognized compensation cost related to outstanding stock options, RSUs and SARs, which is expected to be recognized over a weighted-average period of 2.98 years. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | 12. Net Income (Loss) per Share Basic and diluted net income (loss) per share attributable to common stockholders was calculated as follows: Three Months Ended March 31, 2019 2018 Numerator: Net income (loss) attributable to common stockholders, basic and diluted $ (15,339 ) $ 17,776 Denominator: Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, basic 83,323 81,629 Dilutive effect of stock options — 11,713 Dilutive effect of restricted stock units — 252 Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, diluted 83,323 93,594 Net income (loss) per share attributable to common stockholders: Basic $ (0.18 ) $ 0.22 Diluted $ (0.18 ) $ 0.19 The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the computation of diluted net income (loss) per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended March 31, 2019 2018 Options to purchase common stock 8,957 462 Unvested restricted stock units 1,440 103 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
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 condensed 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, 2019 2018 North America: United States $ 14,558 $ 36,071 Canada 3,873 10,092 Total North America 18,431 46,163 Asia-Pacific 4,724 9,352 Europe, Middle East and Africa: 7,366 24,157 Latin America 4,965 9,402 Total revenue ( 1) $ 35,486 $ 89,074 (1) Other than the United States and Canada, 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, 2019 December 31, 2018 United States $ 24,652 $ 25,088 China 2,626 2,623 Other 2,204 2,168 Total property and equipment, net $ 29,482 $ 29,879 |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2019 | |
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. was 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. Liberty Global Affiliates ceased being a principal stockholder as of October 19, 2018, when it disposed a portion of its ownership of the Company’s stock. During the three months ended March 31, 2018, the Company recognized revenue of $15,731 from transactions with Liberty Global Affiliates and amounts received in cash from Liberty Global Affiliates totaled $13,892. 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 $23 and $79 in total compensation in the three months ended March 31, 2019 and 2018, respectively, for her services as an employee. In February 2019 and June 2018, the Company granted to Rongke Xie 8 and 5 RSUs, respectively, which vest over four annual periods. The grant-date fair value of the awards totaled $200, which will be recorded as stock-based compensation expense over the vesting period of the awards. During the three months ended March 31, 2019, the Company recognized selling, general and administrative expenses of $9 related to these awards. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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, Hong Kong, Spain and Ireland under non-cancelable operating leases that expire in 2021, 2022, 2022, 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, 2019 and 2018 was $327 and $253 respectively. Rent expense is recorded on a straight-line basis, and, as a result, as of March 31, 2019 and December 31, 2018, the Company had a deferred rent liability of $172 and $184, respectively, which is included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets. Future minimum lease payments under non-cancelable operating leases as of March 31, 2019 were as follows: Year Ending December 31, 2019 $ 797 2020 1,075 2021 906 2022 86 2023 5 Thereafter — $ 2,869 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, 2019 and December 31, 2018, 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 condensed 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, 2019, 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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, (benefit from) 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. |
Cash and Cash Equivalents, Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all highly liquid investments maturing within three months from the date of purchase. As of March 31, 2019 and December 31, 2018, the Company’s cash and cash equivalents consisted of investments in certificates of deposit and money market mutual funds. Restricted cash, which was included in other assets as of March 31, 2019 and December 31, 2018, consisted of a certificate of deposit of $1,000 pledged as collateral for a stand-by letter of credit required to support a contractual obligation. The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows: March 31, 2019 March 31, 2018 Cash and cash equivalents $ 264,411 $ 307,095 Restricted cash included in other assets 1,025 — $ 265,436 $ 307,095 |
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 customer contracts 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. In limited instances, for certain customers and/or for certain transactions, the Company provides extended payment terms that are considered significant financing components. These extended payment terms 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. In certain circumstances, the receivables may be collateralized by the underlying assets over the payment period. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. Accounts receivable as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 December 31, 2018 Current portion of accounts receivable, net: Accounts receivable, net $ 48,003 $ 79,526 Accounts receivable, extended payment terms 2,088 2,256 50,091 81,782 Accounts receivable, net of current portion: Accounts receivable, extended payment terms 1,997 2,388 $ 52,088 $ 84,170 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 selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss). As of March 31, 2019 and December 31, 2018, the Company concluded that all amounts due under extended payment terms were collectible and no reserve for credit losses was recorded. During the three months ended March 31, 2019 and 2018, the Company did not provide a reserve for credit losses and did not write off any uncollectible receivables due under extended payment terms. |
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, 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 and are set forth in the following tables: Revenue Accounts Receivable, Net Three Months Ended March 31, March 31, December 31, 2019 2018 2019 2018 Customer A 25 % 27 % 16 % 13 % Customer B 12 % 18 % 14 % 15 % Customer C * * * 18 % Customer D * * 28 % 28 % Customer E * 12 % * * * Less than 10% of total Customer B, Liberty Global Affiliates, was a related party prior to October 19, 2018, when it disposed a portion of its ownership of the Company’s stock (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. |
Revenue Recognition | Revenue Recognition Effective January 1, 2019, the Company adopted ASC Topic 606, Revenue from Contracts with Customers The Company generates revenue from sales of its products, along with associated maintenance, support and extended hardware warranty services, and, to a lesser extent, from sales of professional services. The Company also generates revenue from sales of additional line cards and software-based capacity expansions. Maintenance and support services include telephone support, bug fixes and unspecified software upgrades and updates provided on a when-and-if-available basis and/or extended hardware warranty. In the Company’s condensed consolidated statements of operations and comprehensive income (loss), revenue from sales of broadband products and capacity expansions is classified as product revenue, and revenue from maintenance and support and professional services is classified as service revenue. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised products or services. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to receive in exchange for these products or services. To achieve the core principle of this standard, the Company applies the following five steps: 1) Identify the contract with a customer 2) Identify the performance obligations in the contract 3) Determine the transaction price 4) Allocate the transaction price to performance obligations in the contract 5) Recognize revenue when or as the Company satisfies a performance obligation Performance Obligations The majority of the Company’s contracts with customers contain multiple performance obligations including products and maintenance services, and on a limited basis, professional services. For these contracts, the Company accounts for individual performance obligations separately if they are considered distinct. The Company’s broadband products, Axyom products, maintenance services and professional services are considered distinct performance obligations. When multiple performance obligations exist in a customer contract, the transaction price is allocated to the separate performance obligations on a relative SSP basis. Determination of SSP requires judgment and is based on the best evidence available which may include the standalone selling price of products when sold on a standalone basis to similar customers in similar circumstances, or in the absence of standalone sales, taking into consideration the Company’s historical pricing practices by customer type, selling method (i.e. resellers or direct), and geographic-specific market factors. Product revenue The Company’s broadband products have both software and non-software (i.e., hardware) components that function together to deliver the products’ essential functionality. Broadband hardware products generally cannot be used apart from the embedded software and is considered one distinct performance obligation. Revenue on broadband hardware products with embedded software is recognized at a point in time when control of the products is transferred to the customer, which is typically when risk of loss has transferred and the right to payment is enforceable. This is generally when the product has shipped or been delivered, based on agreed-upon shipping terms. The Company also earns revenue from the sale of software-enabled capacity expansions. Revenue on software-enabled capacity expansions are distinct performance obligations as they are separately identifiable and provide additional bandwidth capacity on hardware products already purchased by the customer. Revenue is recognized on software-enabled capacity expansions when control is transferred, which is typically when risk of loss has transferred and the right to payment is enforceable. This is generally when the software-based capacity expansions are made available to the customer. The Company also generates revenue from the sale of its Axyom software platform and related delivery platform hardware including indoor and outdoor Apex small cells. Perpetual licenses and hardware are distinct performance obligations as they are separately identifiable and the customer can benefit from the licenses and hardware on their own. Revenue is recognized at a point in time when control of the products is transferred to the customer, which is typically when risk of loss has transferred and the right to payment is enforceable. Generally, this occurs when software licenses are made available to customers and hardware products are shipped or delivered, based on agreed-upon shipping terms. When customer contracts require acceptance of product and services, the Company considers the nature of the acceptance provisions to determine if they are substantive or considered a formality that does not impact the timing of revenue recognition. When acceptance provisions are considered substantive, the Company will defer revenue on all performance obligations in the contract subject to acceptance until acceptance has been received. The Company does not defer revenue when acceptance provisions are deemed a formality. Maintenance and support services and professional services revenue The Company’s broadband and Axyom products are sold with maintenance and support services, a distinct performance obligation, that includes the stand-ready obligation to provide telephone support, bug fixes and unspecified software upgrades and updates provided on a when-and-if-available basis and/or extended hardware warranty. After the initial sale, customers may purchase annual renewals of support contracts. The Company’s telephone support and unspecified upgrades and updates are delivered over time and therefore revenue is recognized ratable over the contract term, which is typically one year, but can be as long as three to five years. The Company also generates revenue from sales of professional services, such as installation, configuration and training. Professional services are a distinct performance obligation since the Company’s products are functional without these services and can generally be performed by the customer or a third party. Professional services are generally delivered over time, with revenue recognized as services are performed, which is generally based on labor hours incurred during the period compared to the total estimated labor hours. The sale of the Company’s products generally includes a 90-day warranty on the software and a one-year warranty on the hardware component of the products, which includes repair or replacement of the applicable hardware. These warranties are to ensure the products perform in accordance with the Company’s specifications and are therefore not a performance obligation. The Company records a warranty accrual for the initial software and hardware warranty included with product sales and does not defer revenue. Resellers and Sales Agents The Company markets and sell its products through its direct global sales force, supported by sales agents, and through resellers. The Company’s resellers receive an order from an end customer prior to placing an order with the Company, and the Company confirms the identification of or is aware of the end customer prior to accepting such order. The Company invoices the reseller an amount that reflects a reseller discount and records revenue based on the amount of the discounted transaction value. The Company’s resellers do not stock inventory received from the Company. When the Company transacts with a reseller, the contract is with the reseller and not with the end customer. Whether the Company transacts business with and receives the order from a reseller or directly from an end customer, its revenue recognition policy and resulting pattern of revenue recognition for the order are the same. The Company also uses sales agents that assist in the sales process with certain customers primarily located in the Latin America and Asia-Pacific regions. Sales agents are not resellers. If a sales agent is engaged in the sales process, the Company receives the order directly from and sells the products and services directly to the end customer, and the Company pays a commission to the sales agent, calculated as a percentage of the related transaction value. Accounting considerations related to sales agent commissions are discussed in the “Costs to Obtain or Fulfill a Contract” section below. The Company has assessed whether it is the principal (i.e., reports revenues on a gross basis) or agent (i.e., reports revenues on a net basis) by evaluating whether it has control of the good or service before it is transferred to the customer. Generally, the Company controls the promised good or service before transferring it to the customer and acts as the principal in the transaction. Accordingly, the Company reports revenues on a gross basis. Costs to Obtain or Fulfill a Contract The Company capitalizes commission expenses paid to internal sales personnel and sales agent commissions that are incremental to obtaining customer contracts, for which the related revenue is recognized over a future period. These costs are incurred on initial sales of product, maintenance and professional services and maintenance and support contract renewals. The Company defers these costs and amortizes them over the period of benefit, which the Company generally considers to be the contract term or length of the longest delivery period as contract capitalization costs in the condensed consolidated balance sheets. Commissions paid relating to contract renewals are deferred and amortized on a straight-line basis over the related renewal period as commissions paid on renewals are commensurate with commissions paid on initial sales transactions. The Company periodically reviews the carrying amount of capitalized contract costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. The Company also pays commissions on maintenance and support contract renewals. Commissions paid on renewals are commensurate with commissions paid on the initial maintenance and support contracts. These commissions are deferred and amortized on a straight-line basis over the related renewal period. Costs to obtain a contract for professional services contracts are expensed as incurred in accordance with the practical expedient as the contractual period of our professional services contracts are one year or less. As of January 1, 2019 and March 31, 2019, the Company had short-term capitalized contract costs of $209 and $169, which are included in prepaid assets and other current assets and had long-term capitalized contract costs of $128 and $102, respectively, which are included in other assets in the accompanying condensed consolidated balance sheets. During the three months ended March 31, 2019, amortization expense associated with capitalized contract costs was $66, which was recorded to selling, general and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income (loss). Deferred Revenue Amounts billed in excess of revenue recognized are recorded as deferred revenue. Deferred revenue includes customer deposits, amounts billed for maintenance and support services contracts in advance of services being performed, amounts for trade-in right liabilities and amounts related to contracts that have been deferred as a result of not meeting the required revenue recognition criteria as of the end of the reporting period. Deferred revenue expected to be recognized as revenue more than one year subsequent to the balance sheet date is reported within long-term liabilities in the condensed consolidated balance sheets. The Company defers recognition of direct costs, such as cost of goods and services, until recognition of the related revenue. Such costs are classified as current assets if the related deferred revenue is classified as current, and such costs are classified as non-current assets if the related deferred revenue is classified as non-current. Other Revenue Recognition Policies The Company’s customary payment terms are generally one year or less. The Company has elected to apply the practical expedient that allows an entity to not adjust the promised amount of consideration in customer contracts for the effect of a significant financing component when the period between the transfer of product and services and payment of the related consideration is less than one year. If the Company provides extended payment terms that represent a significant financing component, the Company adjusts the amount of promised consideration for the time value of money using its discounted rate and recognizes interest income separate from the revenue recognized on contracts with customers. During the three months ended March 31, 2019, the Company recorded $26 in interest income in the condensed consolidated statements of operations and comprehensive income (loss). In limited instances, the Company has offered future rebates to customers based on a fixed or variable percentage of actual sales volumes over specified periods. The future rebates earned based on the customer’s purchasing from the Company in one period may be used as credits to be applied by them against accounts receivable due to the Company in later periods. The Company accounts for these future rebates as variable consideration and reduces the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the variable consideration is resolved. The reduction of the transaction price is estimated based on historical activity and other relevant factors and is recognized when the Company recognizes revenue for the transfer of goods and services to the customer on which the future rebate was earned. Other forms of contingent revenue or variable consideration are infrequent. When a customer contract includes future trade-in rights, which are distinct performance obligations, the Company accounts for the customer contract by recognizing the revenue on the products transferred, deferring revenue allocated to the future product based on a relative standalone selling price, and an asset for the value of the trade-in product to be recovered from the customer upon delivery of the future product. The Company assesses and updates these estimates each reporting period, and updates to these estimates may result in either an increase or decrease in the amount of the future product liability and product return asset. The Company recognizes revenue allocated to the future product when the product has shipped or been delivered and control has transferred. As of March 31, 2019, there were no future product liabilities or product return assets. The Company excludes any taxes assessed by a governmental authority that are directly imposed on a revenue-producing transaction (e.g., sales, use and value added taxes) from its transaction price. Billings to customers for reimbursement of out-of-pocket expenses, including travel, lodging and meals, are recorded as revenue, and the associated costs incurred by the Company for those items are recorded as cost of revenue. Revenue related to the reimbursement of out-of-pocket costs are accounted for as variable consideration. The Company accounts for any shipping and handling activities that occur after the customer has taken control of a product as a fulfilment cost rather than an additional promised service. Shipping and handling billed to customers is recorded as an offset to cost of revenue. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue when the Company satisfies its performance obligations, consistent with the above methodology. For the three-month period ended March 31, 2019, the Company recognized $7,269 revenue that was included in deferred revenue as of January 1, 2019. The Company receives payments from customers based upon contractual billing terms. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the Company’s contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced. As of January 1, 2019 and March 31, 2019, the Company included contract assets of $28 and $267, respectively, which is included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets. Transaction price allocated to the remaining performance obligations As of March 31, 2019, the aggregate remaining amount of revenue expected to be recognized related to unsatisfied or partially unsatisfied performance obligations is $39,823. The Company expects approximately 79% of this amount to be recognized in the next twelve months with the remaining to be recognized over the next two to five years. Disaggregation of revenue The Company disaggregates its revenue by product and service in the condensed consolidated statements of operations and comprehensive income (loss). Performance obligations related to product revenue are recognized at a point in time, while performance obligations related to service revenue are recognized over time. The Company also disaggregates its revenue based on geographic locations of its customers, as determined by the customer’s shipping address. See Note 13, Segment Information Transition Disclosures In accordance with the modified retrospective method transition requirements, the Company will present the financial statement line items impacted and adjusted to compare to presentation under ASC 605 for each of the interim and annual periods during the first year of adoption of ASC 606: As of March 31, 2019 Balance Sheet As Reported under ASC 606 Adjustments Without adoption of ASC 606 Assets: Accounts receivable $ 50,091 $ 163 $ 50,254 Inventory 67,773 355 68,128 Prepaid expenses and other current assets 4,979 (169 ) 4,810 Accounts receivable, net of current portion 1,997 40 2,037 Deferred tax assets 23,703 592 24,295 Other assets 3,694 (102 ) 3,592 Total assets $ 447,766 $ 879 $ 448,645 Liabilities: Accrued expenses and other current liabilities $ 23,088 $ (1,010 ) $ 22,078 Deferred revenue 31,319 2,178 33,497 Deferred revenue, net of current portion 8,504 1,856 10,360 Total liabilities 382,332 3,024 385,356 Stockholders’ Equity: Accumulated deficit (94,197 ) (2,145 ) (96,342 ) Total stockholders’ equity 65,434 (2,145 ) 63,289 Total liabilities and stockholders’ equity $ 447,766 $ 879 $ 448,645 Total reported assets under ASC 606 as of March 31, 2019 were $879 less than the total assets without the adoption of ASC 606 largely due to a reduction in deferred tax assets and deferred inventory costs related to contracts for which deferred revenue was adjusted to retained earnings, partially offset by increases in prepaid and other current assets and other assets related to contract costs capitalized under ASC 606 that would have been expensed when incurred under ASC 605. Total reported liabilities under ASC 606 were $3,024 less than the total liabilities without the adoption of ASC 606 primarily driven by the adjustment of deferred revenue related to a customer contract for which revenue was recognized based on receipt of cash payments under ASC 605 that would have been recognized upon product acceptance under ASC 606, offset by an increase in accrued partner commissions in accrued expenses and other current liabilities. These partner commissions were previously being recognized in the period which cash was received and revenue was recognized. Upon the adoption of ASC 606, partner commission are reflected as a cost to obtain a contract and they are expensed consistent with the pattern of revenue recognition on this contract. Three Months Ended March 31, 2019 Statement of Operations and Comprehensive Income (Loss) As Reported under ASC 606 Adjustments Without adoption of ASC 606 Revenue: Product $ 26,653 $ 3 $ 26,656 Service 8,833 9 8,842 Total revenue 35,486 12 35,498 Cost of revenue: Product 9,429 13 9,442 Gross profit 24,497 (1 ) 24,496 Operating expenses: Selling, general and administrative 20,193 (31 ) 20,162 Loss from operations (14,101 ) 30 (14,071 ) Other income (expense): Interest income 1,652 (26 ) 1,626 Loss before benefit from income taxes (17,509 ) 4 (17,505 ) Net loss (15,339 ) 4 (15,335 ) Comprehensive loss $ (14,626 ) $ 4 $ (14,622 ) Net loss per share attributable to common stockholders: Basic and diluted $ (0.18 ) $ — $ (0.18 ) The adoption of ASC 606 had an insignificant impact on product and services revenues and cost of revenue. Selling, general and administrative expenses were higher as reported under ASC 606 compared to selling, general and administrative expenses without the adoption of ASC 606 primarily due to the amortization of contract costs. Three Months Ended March 31, 2019 Statement of Cash Flows As Reported under ASC 606 Adjustments Without adoption of ASC 606 Cash flows (used in) provided by operating activities: Net loss $ (15,339 ) $ 4 $ (15,335 ) Changes in operating assets and liabilities: Accounts receivable 25,289 26 25,315 Inventory (16,986 ) 13 (16,973 ) Prepaid expenses and other assets (1,721 ) (66 ) (1,787 ) Accrued expenses and other current liabilities (8,171 ) 35 (8,136 ) Deferred revenue 109 (12 ) 97 Net cash used in operating activities $ (13,849 ) $ — $ (13,849 ) The adoption of ASC 606 resulted in offsetting changes in operating assets and liabilities and had no impact on net cash flow from operations. |
Impact of Recently Adopted and Issued Accounting Standards | Impact In May 2014, the FASB issued ASC 606, which supersedes existing revenue recognition guidance under GAAP. The core principle of this standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASC 606 on January 1, 2019, using the modified retrospective method. Under this method of adoption, the Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. Comparative prior year periods were not adjusted. As a result of applying the modified retrospective method to adopt ASC 606, the following adjustments were made to the condensed consolidated balance sheet as of January 1, 2019: December 31, 2018 January 1, 2019 As reported Adjustments As adjusted Assets: Accounts receivable $ 81,782 $ (153 ) $ 81,629 Inventory 50,997 (368 ) 50,629 Prepaid expenses and other current assets 3,755 209 3,964 Accounts receivable, net of current portion 2,388 (75 ) 2,313 Deferred tax assets 21,578 (592 ) 20,986 Other assets 3,293 128 3,421 Total assets $ 474,649 $ (851 ) $ 473,798 Liabilities: Accrued expenses and other current liabilities $ 36,992 $ 1,045 $ 38,037 Deferred revenue 31,206 (2,190 ) 29,016 Deferred revenue, net of current portion 12,479 (1,856 ) 10,623 Total liabilities 399,793 (3,001 ) 396,792 Stockholders’ equity: Accumulated deficit (81,008 ) 2,150 (78,858 ) Total stockholders’ equity 74,856 2,150 77,006 Total liabilities and stockholders’ equity $ 474,649 $ (851 ) $ 473,798 Upon adoption of ASC 606 on January 1, 2019, the Company recorded a decrease to accumulated deficit of $2,150 as a result of the transition. The impact of the adoption primarily relates to the cumulative effect of a $4,046 total decrease in deferred revenue and deferred revenue, net of current portion primarily related to a customer contract for which revenue was recognized based on receipt of cash payments under ASC 605 that would have been recognized upon product acceptance under ASC 606 and contracts; a $1,045 increase in accrued expenses and other current liabilities related to partner commissions that were previously being recognized in the period which cash was received and revenue was recognized, but would have been reflected as a cost to obtain a contract and expensed consistent with the pattern of revenue recognition on the contract; a $368 decrease in inventory related to the adjustment of deferred cost of goods sold on deferred revenue also adjusted as part of the adoption; a $337 total increase in prepaid expenses and other current assets and other assets for short term and long term capitalized contract costs on open contracts as of the adoption date; a $228 total decrease in accounts receivable and accounts receivable, net of current portion related to a contract with a significant financing component; and a $592 decrease in deferred tax assets related to the above items. Impact of Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases Codification Improvements to Topic 842: Leases Leases (Topic 842), Targeted Improvements Leases (Topic 842) – Narrow-Scope Improvements for Lessors 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. Additionally, in November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2018-19”), which mitigates transition complexity by requiring that for nonpublic business entities the amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The amendments in ASU 2018-19 also clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20, but instead, should be accounted for in accordance with Topic 842, Leases. The Company 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 In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash in Accompanying Condensed Consolidated Balance Sheets | The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows: March 31, 2019 March 31, 2018 Cash and cash equivalents $ 264,411 $ 307,095 Restricted cash included in other assets 1,025 — $ 265,436 $ 307,095 |
Schedule of Accounts Receivable | Accounts receivable as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 December 31, 2018 Current portion of accounts receivable, net: Accounts receivable, net $ 48,003 $ 79,526 Accounts receivable, extended payment terms 2,088 2,256 50,091 81,782 Accounts receivable, net of current portion: Accounts receivable, extended payment terms 1,997 2,388 $ 52,088 $ 84,170 |
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 and are set forth in the following tables: Revenue Accounts Receivable, Net Three Months Ended March 31, March 31, December 31, 2019 2018 2019 2018 Customer A 25 % 27 % 16 % 13 % Customer B 12 % 18 % 14 % 15 % Customer C * * * 18 % Customer D * * 28 % 28 % Customer E * 12 % * * * Less than 10% of total |
Impact of New Accounting Standards ASC 606 on Financial Statements | In accordance with the modified retrospective method transition requirements, the Company will present the financial statement line items impacted and adjusted to compare to presentation under ASC 605 for each of the interim and annual periods during the first year of adoption of ASC 606: As of March 31, 2019 Balance Sheet As Reported under ASC 606 Adjustments Without adoption of ASC 606 Assets: Accounts receivable $ 50,091 $ 163 $ 50,254 Inventory 67,773 355 68,128 Prepaid expenses and other current assets 4,979 (169 ) 4,810 Accounts receivable, net of current portion 1,997 40 2,037 Deferred tax assets 23,703 592 24,295 Other assets 3,694 (102 ) 3,592 Total assets $ 447,766 $ 879 $ 448,645 Liabilities: Accrued expenses and other current liabilities $ 23,088 $ (1,010 ) $ 22,078 Deferred revenue 31,319 2,178 33,497 Deferred revenue, net of current portion 8,504 1,856 10,360 Total liabilities 382,332 3,024 385,356 Stockholders’ Equity: Accumulated deficit (94,197 ) (2,145 ) (96,342 ) Total stockholders’ equity 65,434 (2,145 ) 63,289 Total liabilities and stockholders’ equity $ 447,766 $ 879 $ 448,645 Three Months Ended March 31, 2019 Statement of Operations and Comprehensive Income (Loss) As Reported under ASC 606 Adjustments Without adoption of ASC 606 Revenue: Product $ 26,653 $ 3 $ 26,656 Service 8,833 9 8,842 Total revenue 35,486 12 35,498 Cost of revenue: Product 9,429 13 9,442 Gross profit 24,497 (1 ) 24,496 Operating expenses: Selling, general and administrative 20,193 (31 ) 20,162 Loss from operations (14,101 ) 30 (14,071 ) Other income (expense): Interest income 1,652 (26 ) 1,626 Loss before benefit from income taxes (17,509 ) 4 (17,505 ) Net loss (15,339 ) 4 (15,335 ) Comprehensive loss $ (14,626 ) $ 4 $ (14,622 ) Net loss per share attributable to common stockholders: Basic and diluted $ (0.18 ) $ — $ (0.18 ) Three Months Ended March 31, 2019 Statement of Cash Flows As Reported under ASC 606 Adjustments Without adoption of ASC 606 Cash flows (used in) provided by operating activities: Net loss $ (15,339 ) $ 4 $ (15,335 ) Changes in operating assets and liabilities: Accounts receivable 25,289 26 25,315 Inventory (16,986 ) 13 (16,973 ) Prepaid expenses and other assets (1,721 ) (66 ) (1,787 ) Accrued expenses and other current liabilities (8,171 ) 35 (8,136 ) Deferred revenue 109 (12 ) 97 Net cash used in operating activities $ (13,849 ) $ — $ (13,849 ) As a result of applying the modified retrospective method to adopt ASC 606, the following adjustments were made to the condensed consolidated balance sheet as of January 1, 2019: December 31, 2018 January 1, 2019 As reported Adjustments As adjusted Assets: Accounts receivable $ 81,782 $ (153 ) $ 81,629 Inventory 50,997 (368 ) 50,629 Prepaid expenses and other current assets 3,755 209 3,964 Accounts receivable, net of current portion 2,388 (75 ) 2,313 Deferred tax assets 21,578 (592 ) 20,986 Other assets 3,293 128 3,421 Total assets $ 474,649 $ (851 ) $ 473,798 Liabilities: Accrued expenses and other current liabilities $ 36,992 $ 1,045 $ 38,037 Deferred revenue 31,206 (2,190 ) 29,016 Deferred revenue, net of current portion 12,479 (1,856 ) 10,623 Total liabilities 399,793 (3,001 ) 396,792 Stockholders’ equity: Accumulated deficit (81,008 ) 2,150 (78,858 ) Total stockholders’ equity 74,856 2,150 77,006 Total liabilities and stockholders’ equity $ 474,649 $ (851 ) $ 473,798 Upon adoption of ASC 606 on January 1, 2019, the Company recorded a decrease to accumulated deficit of $2,150 as a result of the transition. The impact of the adoption primarily relates to the cumulative effect of a $4,046 total decrease in deferred revenue and deferred revenue, net of current portion primarily related to a customer contract for which revenue was recognized based on receipt of cash payments under ASC 605 that would have been recognized upon product acceptance under ASC 606 and contracts; a $1,045 increase in accrued expenses and other current liabilities related to partner commissions that were previously being recognized in the period which cash was received and revenue was recognized, but would have been reflected as a cost to obtain a contract and expensed consistent with the pattern of revenue recognition on the contract; a $368 decrease in inventory related to the adjustment of deferred cost of goods sold on deferred revenue also adjusted as part of the adoption; a $337 total increase in prepaid expenses and other current assets and other assets for short term and long term capitalized contract costs on open contracts as of the adoption date; a $228 total decrease in accounts receivable and accounts receivable, net of current portion related to a contract with a significant financing component; and a $592 decrease in deferred tax assets related to the above items. |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory as of March 31, 2019 and December 31, 2018 March 31, 2019 December 31, 2018 Raw materials $ 8,805 $ 6,524 Work in process 148 571 Finished goods: Manufactured finished goods 58,040 45,594 Deferred inventory costs 2,938 1,073 69,931 53,762 Valuation adjustment for excess and obsolete inventory (2,158 ) (2,765 ) $ 67,773 $ 50,997 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Components of Property and Equipment | Property and equipment as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 December 31, 2018 Computers and purchased software $ 17,059 $ 15,706 Leasehold improvements 1,354 1,340 Furniture and fixtures 1,951 1,949 Machinery and equipment 21,781 21,979 Land 3,091 3,091 Building 4,765 4,765 Building improvements 5,287 5,245 Trial systems at customers’ sites 6,992 7,116 62,280 61,191 Less: Accumulated depreciation and amortization (32,798 ) (31,312 ) $ 29,482 $ 29,879 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 December 31, 2018 Accrued compensation and related taxes $ 11,007 $ 18,301 Accrued warranty 877 926 Dividends and equitable adjustments payable (see Note 10) 2,575 3,336 Accrued customer incentives 358 5,368 Other accrued expenses 8,271 9,061 $ 23,088 $ 36,992 |
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, 2019 and 2018 is as follows: Three Months Ended March 31, 2019 2018 Warranty reserve at beginning of period $ 926 $ 1,246 Provisions 525 353 Charges (574 ) (468 ) Warranty reserve at end of period $ 877 $ 1,131 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of March 31, 2019 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 20,803 $ — $ 20,803 Certificates of deposit—restricted cash — 1,025 — 1,025 Money market mutual funds 235,132 — — 235,132 Foreign currency forward contracts — 85 — 85 $ 235,132 $ 21,913 $ — $ 257,045 Liabilities: SARs $ — $ — $ 727 $ 727 $ — $ — $ 727 $ 727 Fair Value Measurements as of December 31, 2018 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit $ — $ 19,873 $ — $ 19,873 Certificates of deposit—restricted cash — 1,019 — 1,019 Money market mutual funds 252,963 — — 252,963 Foreign currency forward contracts — 254 — 254 $ 252,963 $ 21,146 $ — $ 274,109 Liabilities: SARs $ — $ — $ 1,387 $ 1,387 Foreign currency forward contracts — 252 — 252 $ — $ 252 $ 1,387 $ 1,639 |
Summary of Changes in Fair Values of Stock Appreciation Rights (SARs) Liability | The following table provides a summary of changes in the fair values of the Company’s stock appreciation rights (“SARs”) liability, for which fair value is determined by Level 3 inputs: Three Months Ended March 31, 2019 2018 Fair value at beginning of period $ 1,387 $ 2,155 Change in fair value (660 ) 2,166 Exercises — — Fair value at end of period $ 727 $ 4,321 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Aggregate Principal Amount of Debt Outstanding | The aggregate principal amount of debt outstanding as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, 2019 2018 Term loans $ 293,250 $ 294,000 Mortgage loan 6,880 6,958 Total principal amount of debt outstanding $ 300,130 $ 300,958 |
Schedule of Current and Non-Current Debt Obligations | Current and non-current debt obligations reflected in the condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, December 31, 2019 2018 Current liabilities: Term loans $ 3,000 $ 3,000 Mortgage loan 316 314 Current portion of principal payment obligations 3,316 3,314 Unamortized debt issuance costs, current portion (1,132 ) (1,135 ) Current portion of long-term debt, net of unamortized debt issuance costs $ 2,184 $ 2,179 Non-current liabilities: Term loans $ 290,250 $ 291,000 Mortgage loan 6,564 6,644 Non-current portion of principal payment obligations 296,814 297,644 Unamortized debt issuance costs, non-current portion (4,083 ) (4,364 ) Long-term debt, net of current portion and unamortized debt issuance costs $ 292,731 $ 293,280 |
Schedule of Aggregate Minimum Future Principal Payments of Debt | As of March 31, 2019, aggregate minimum future principal payments of the Company’s debt are summarized as follows: Year Ending December 31, 2019 $ 2,486 2020 9,644 2021 3,000 2022 3,000 2023 3,000 Thereafter 279,000 $ 300,130 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding at January 1, 2019 9,566 $ 7.29 6.35 $ 61,561 Granted 38 9.50 Exercised (613 ) 2.44 Forfeited (34 ) 11.37 Outstanding at March 31, 2019 8,957 $ 7.62 6.26 $ 23,351 Options exercisable at March 31, 2019 6,804 $ 5.71 5.64 $ 23,264 Vested or expected to vest at March 31, 2019 8,836 $ 7.52 6.23 $ 23,350 |
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, 2019 2018 Risk-free interest rate 2.5% 2.7% Expected term (in years) 6.1–6.2 6.0–6.2 Expected volatility 30.5%–30.6% 32.4%–32.6% 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, 2019 is as follows: Number of Shares Weighted- Average Grant Date Fair Value Aggregate Fair Value Unvested balance at January 1, 2019 759 $ 13.40 Granted 943 11.79 Vested (237 ) 9.06 $ 3,092 Forfeited (25 ) 14.99 Unvested balance at March 31, 2019 1,440 $ 13.03 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense related to stock options, RSUs and SARs for the three months ended March 31, 2019 and 2018 was classified in the condensed consolidated statements of operations and comprehensive income (loss) as follows: Three Months Ended March 31, 2019 2018 Cost of revenue $ 71 $ 209 Research and development expenses 141 2,018 Selling, general and administrative expenses 1,688 2,003 $ 1,900 $ 4,230 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Share Attributable to Common Stockholders | Basic and diluted net income (loss) per share attributable to common stockholders was calculated as follows: Three Months Ended March 31, 2019 2018 Numerator: Net income (loss) attributable to common stockholders, basic and diluted $ (15,339 ) $ 17,776 Denominator: Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, basic 83,323 81,629 Dilutive effect of stock options — 11,713 Dilutive effect of restricted stock units — 252 Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, diluted 83,323 93,594 Net income (loss) per share attributable to common stockholders: Basic $ (0.18 ) $ 0.22 Diluted $ (0.18 ) $ 0.19 |
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 (loss) per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended March 31, 2019 2018 Options to purchase common stock 8,957 462 Unvested restricted stock units 1,440 103 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenue Based on Customer's Location Determined by Customer's 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, 2019 2018 North America: United States $ 14,558 $ 36,071 Canada 3,873 10,092 Total North America 18,431 46,163 Asia-Pacific 4,724 9,352 Europe, Middle East and Africa: 7,366 24,157 Latin America 4,965 9,402 Total revenue ( 1) $ 35,486 $ 89,074 (1) Other than the United States and Canada, 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, 2019 December 31, 2018 United States $ 24,652 $ 25,088 China 2,626 2,623 Other 2,204 2,168 Total property and equipment, net $ 29,482 $ 29,879 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 were as follows: Year Ending December 31, 2019 $ 797 2020 1,075 2021 906 2022 86 2023 5 Thereafter — $ 2,869 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - Additional Information (Details) - USD ($) | Apr. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2019 |
Nature Of Business And Basis Of Presentation [Line Items] | |||
Initial public offering of common stock | 6,900,000 | ||
Common stock offering price per share | $ 13 | ||
Additional shares of common stock | 900,000 | ||
Net proceeds after deducting underwriting discounts | $ 79,327,000 | ||
Underwriting discounts and commission amount | 6,279,000 | ||
Offering costs | $ 4,094,000 | ||
Convertible outstanding preferred stock | 4,038,000 | ||
Aggregate shares of common stock | 40,382,000 | ||
Temporary equity to additional paid-in capital | $ 97,439,000 | ||
Temporary equity to common stock | $ 40,000 | ||
Follow-on Offering | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Initial public offering of common stock | 0 | ||
Net proceeds after deducting underwriting discounts | $ 0 | ||
Offering costs | $ 41,000 | ||
Number of shares sold by selling stockholders | 7,350,000 | ||
Sale of stock, price per share | $ 25 | ||
Profit after offering cost amount disgorged by selling shareholders in connection with sale of shares | $ 3,770,000 | ||
Transaction costs incurred on behalf of selling stockholders | 856,000 | ||
Follow-on Offering | Selling, General and Administrative Expenses | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Transaction costs incurred on behalf of selling stockholders | $ 815,000 | ||
Convertible Preferred Stock [Member] | |||
Nature Of Business And Basis Of Presentation [Line Items] | |||
Conversion of preferred stock, description | ten-for-one |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2019 | Jan. 31, 2018 | |
Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 1,025,000 | ||||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | ||
Short-term capitalized contract costs included in prepaid assets and other current assets | $ 209,000 | $ 169,000 | |||
Long-term capitalized contract costs included in included in other assets | 128,000 | $ 102,000 | |||
Amortization of capitalized contract costs recorded to selling, general and administrative expenses | $ 66,000 | ||||
Contract assets included in prepaid expenses and other current assets | 267,000 | $ 28,000 | |||
Revenue remaining performance obligation amount | 39,823,000 | ||||
Assets | 447,766,000 | $ 474,649,000 | |||
Liabilities | 382,332,000 | 399,793,000 | |||
Accumulated deficit | (94,197,000) | (81,008,000) | |||
Accrued expenses and other current liabilities | 23,088,000 | 36,992,000 | |||
Inventory | 67,773,000 | 50,997,000 | |||
Accounts receivable, net | 52,088,000 | 84,170,000 | |||
Deferred tax assets | 23,703,000 | 21,578,000 | |||
Accounting Standards Update 2014-09 | |||||
Significant Accounting Policies [Line Items] | |||||
Assets | 473,798,000 | ||||
Liabilities | 396,792,000 | ||||
Accumulated deficit | (78,858,000) | ||||
Accrued expenses and other current liabilities | 38,037,000 | ||||
Inventory | 50,629,000 | ||||
Deferred tax assets | 20,986,000 | ||||
Accounting Standards Update 2014-09 | Adjustments | |||||
Significant Accounting Policies [Line Items] | |||||
Assets | 879,000 | (851,000) | |||
Liabilities | 3,024,000 | (3,001,000) | |||
Accumulated deficit | (2,145,000) | 2,150,000 | |||
Deferred revenue, net | (4,046,000) | ||||
Accrued expenses and other current liabilities | (1,010,000) | 1,045,000 | |||
Inventory | 355,000 | (368,000) | |||
Prepaid expenses and other current assets and other assets | 337,000 | ||||
Accounts receivable, net | (228,000) | ||||
Deferred tax assets | 592,000 | $ (592,000) | |||
Deferred revenue | |||||
Significant Accounting Policies [Line Items] | |||||
Revenue | 7,269,000 | ||||
Interest Income | |||||
Significant Accounting Policies [Line Items] | |||||
Other revenue | $ 26,000 | ||||
Software | |||||
Significant Accounting Policies [Line Items] | |||||
Warranty period | 90 days | ||||
Hardware | |||||
Significant Accounting Policies [Line Items] | |||||
Warranty period | 1 year | ||||
Accounts Receivable, Extended Payment Terms | |||||
Significant Accounting Policies [Line Items] | |||||
Reserve for credit losses | $ 0 | 0 | |||
Write off of uncollectible receivables | $ 0 | 0 | |||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Extended payment period for certain customers and/or for certain transactions | 1 year | ||||
Maintenance and support services and professional services revenue, recognition period | 3 years | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Extended payment period for certain customers and/or for certain transactions | 5 years | ||||
Maintenance and support services and professional services revenue, recognition period | 5 years | ||||
Certificates of Deposit | |||||
Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 1,000,000 | $ 1,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash in Accompanying Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | ||
Accounting Policies [Abstract] | ||||||
Cash and cash equivalents | $ 264,411 | $ 280,587 | $ 307,095 | |||
Restricted cash included in other assets | $ 1,025 | |||||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | |||
Cash and cash equivalents, restricted cash included in other asstes | $ 265,436 | [1] | $ 281,606 | $ 307,095 | [1] | $ 260,820 |
[1] | See Note 2 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash shown in these condensed consolidated statements of cash flows. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | $ 50,091 | $ 81,782 |
Accounts receivable, net of current portion: | ||
Accounts receivable, net of current portion | 1,997 | 2,388 |
Accounts receivable | 52,088 | 84,170 |
Accounts Receivable, Net | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | 48,003 | 79,526 |
Accounts Receivable, Extended Payment Terms | ||
Current portion of accounts receivable, net: | ||
Current portion of accounts receivable, net | $ 2,088 | $ 2,256 |
Summary of Significant Accoun_7
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 | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Revenue | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 25.00% | 27.00% | |
Revenue | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | 18.00% | |
Revenue | Customer E | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | ||
Accounts Receivable | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.00% | 13.00% | |
Accounts Receivable | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | 15.00% | |
Accounts Receivable | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | ||
Accounts Receivable | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 28.00% | 28.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Additional Information (Details1) | Mar. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Significant Accounting Policies [Line Items] | |
Revenue remaining performance obligation, percentage | 79.00% |
Revenue, remaining performance obligation, expected timing of satisfaction period | 12 months |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction period | 2 years |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction period | 5 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Impact of New Accounting Standards ASC 606 on Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | |||||
Accounts receivable | $ 50,091 | $ 81,782 | |||
Inventory | 67,773 | 50,997 | |||
Prepaid expenses and other current assets | 4,979 | 3,755 | |||
Accounts receivable, net of current portion | 1,997 | 2,388 | |||
Deferred tax assets | 23,703 | 21,578 | |||
Other assets | 3,694 | 3,293 | |||
Total assets | 447,766 | 474,649 | |||
Liabilities: | |||||
Accrued expenses and other current liabilities | 23,088 | 36,992 | |||
Deferred revenue | 31,319 | 31,206 | |||
Deferred revenue, net of current portion | 8,504 | 12,479 | |||
Total liabilities | 382,332 | 399,793 | |||
Stockholders’ equity: | |||||
Accumulated deficit | (94,197) | (81,008) | |||
Total stockholders’ equity | 65,434 | 74,856 | $ 71,833 | $ 50,156 | |
Total liabilities and stockholders’ equity | 447,766 | $ 474,649 | |||
Accounting Standards Update 2014-09 | |||||
Assets | |||||
Accounts receivable | $ 81,629 | ||||
Inventory | 50,629 | ||||
Prepaid expenses and other current assets | 3,964 | ||||
Accounts receivable, net of current portion | 2,313 | ||||
Deferred tax assets | 20,986 | ||||
Other assets | 3,421 | ||||
Total assets | 473,798 | ||||
Liabilities: | |||||
Accrued expenses and other current liabilities | 38,037 | ||||
Deferred revenue | 29,016 | ||||
Deferred revenue, net of current portion | 10,623 | ||||
Total liabilities | 396,792 | ||||
Stockholders’ equity: | |||||
Accumulated deficit | (78,858) | ||||
Total stockholders’ equity | 77,006 | ||||
Total liabilities and stockholders’ equity | 473,798 | ||||
Accounting Standards Update 2014-09 | Adjustments | |||||
Assets | |||||
Accounts receivable | 163 | (153) | |||
Inventory | 355 | (368) | |||
Prepaid expenses and other current assets | (169) | 209 | |||
Accounts receivable, net of current portion | 40 | (75) | |||
Deferred tax assets | 592 | (592) | |||
Other assets | (102) | 128 | |||
Total assets | 879 | (851) | |||
Liabilities: | |||||
Accrued expenses and other current liabilities | (1,010) | 1,045 | |||
Deferred revenue | 2,178 | (2,190) | |||
Deferred revenue, net of current portion | 1,856 | (1,856) | |||
Total liabilities | 3,024 | (3,001) | |||
Stockholders’ equity: | |||||
Accumulated deficit | (2,145) | 2,150 | |||
Total stockholders’ equity | (2,145) | 2,150 | |||
Total liabilities and stockholders’ equity | 879 | $ (851) | |||
Accounting Standards Update 2014-09 | Without adoption of ASC 606 | |||||
Assets | |||||
Accounts receivable | 50,254 | ||||
Inventory | 68,128 | ||||
Prepaid expenses and other current assets | 4,810 | ||||
Accounts receivable, net of current portion | 2,037 | ||||
Deferred tax assets | 24,295 | ||||
Other assets | 3,592 | ||||
Total assets | 448,645 | ||||
Liabilities: | |||||
Accrued expenses and other current liabilities | 22,078 | ||||
Deferred revenue | 33,497 | ||||
Deferred revenue, net of current portion | 10,360 | ||||
Total liabilities | 385,356 | ||||
Stockholders’ equity: | |||||
Accumulated deficit | (96,342) | ||||
Total stockholders’ equity | 63,289 | ||||
Total liabilities and stockholders’ equity | $ 448,645 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Impact of New Accounting Standards ASC 606 on Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Total revenue | $ 35,486 | $ 89,074 |
Cost of revenue: | ||
Total cost of revenue | 10,989 | 27,119 |
Gross profit | 24,497 | 61,955 |
Operating expenses: | ||
Selling, general and administrative | 20,193 | 18,456 |
(Loss) income from operations | (14,101) | 22,969 |
Other income (expense): | ||
Interest income | 1,652 | 1,095 |
(Loss) income before (benefit from) provision for income taxes | (17,509) | 19,569 |
Net (loss) income | (15,339) | 17,776 |
Comprehensive loss | $ (14,626) | 18,938 |
Net (loss) income per share attributable to common stockholders: | ||
Basic and diluted | $ (0.18) | |
Accounting Standards Update 2014-09 | Adjustments | ||
Revenue: | ||
Total revenue | $ 12 | |
Cost of revenue: | ||
Gross profit | (1) | |
Operating expenses: | ||
Selling, general and administrative | (31) | |
(Loss) income from operations | 30 | |
Other income (expense): | ||
Interest income | (26) | |
(Loss) income before (benefit from) provision for income taxes | 4 | |
Net (loss) income | 4 | |
Comprehensive loss | 4 | |
Accounting Standards Update 2014-09 | Without adoption of ASC 606 | ||
Revenue: | ||
Total revenue | 35,498 | |
Cost of revenue: | ||
Gross profit | 24,496 | |
Operating expenses: | ||
Selling, general and administrative | 20,162 | |
(Loss) income from operations | (14,071) | |
Other income (expense): | ||
Interest income | 1,626 | |
(Loss) income before (benefit from) provision for income taxes | (17,505) | |
Net (loss) income | (15,335) | |
Comprehensive loss | $ (14,622) | |
Net (loss) income per share attributable to common stockholders: | ||
Basic and diluted | $ (0.18) | |
Product | ||
Revenue: | ||
Total revenue | $ 26,653 | 80,189 |
Cost of revenue: | ||
Total cost of revenue | 9,429 | 25,780 |
Product | Accounting Standards Update 2014-09 | Adjustments | ||
Revenue: | ||
Total revenue | 3 | |
Cost of revenue: | ||
Total cost of revenue | 13 | |
Product | Accounting Standards Update 2014-09 | Without adoption of ASC 606 | ||
Revenue: | ||
Total revenue | 26,656 | |
Cost of revenue: | ||
Total cost of revenue | 9,442 | |
Service | ||
Revenue: | ||
Total revenue | 8,833 | 8,885 |
Cost of revenue: | ||
Total cost of revenue | 1,560 | $ 1,339 |
Service | Accounting Standards Update 2014-09 | Adjustments | ||
Revenue: | ||
Total revenue | 9 | |
Service | Accounting Standards Update 2014-09 | Without adoption of ASC 606 | ||
Revenue: | ||
Total revenue | $ 8,842 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Impact of New Accounting Standards ASC 606 on Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows (used in) provided by operating activities: | ||
Net (loss) income | $ (15,339) | $ 17,776 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 25,289 | 28,470 |
Inventory | (16,986) | 7,713 |
Prepaid expenses and other assets | (1,721) | 103 |
Accrued expenses and other current liabilities | (8,171) | (7,162) |
Deferred revenue | 109 | (4,626) |
Net cash (used in) provided by operating activities | (13,849) | $ 51,143 |
Accounting Standards Update 2014-09 | Adjustments | ||
Cash flows (used in) provided by operating activities: | ||
Net (loss) income | 4 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 26 | |
Inventory | 13 | |
Prepaid expenses and other assets | (66) | |
Accrued expenses and other current liabilities | 35 | |
Deferred revenue | (12) | |
Accounting Standards Update 2014-09 | Without adoption of ASC 606 | ||
Cash flows (used in) provided by operating activities: | ||
Net (loss) income | (15,335) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 25,315 | |
Inventory | (16,973) | |
Prepaid expenses and other assets | (1,787) | |
Accrued expenses and other current liabilities | (8,136) | |
Deferred revenue | 97 | |
Net cash (used in) provided by operating activities | $ (13,849) |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,805 | $ 6,524 |
Work in process | 148 | 571 |
Finished goods: | ||
Manufactured finished goods | 58,040 | 45,594 |
Deferred inventory costs | 2,938 | 1,073 |
Total finished goods | 69,931 | 53,762 |
Valuation adjustment for excess and obsolete inventory | (2,158) | (2,765) |
Total inventory | $ 67,773 | $ 50,997 |
Property and Equipment - Summar
Property and Equipment - Summary of Components of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 62,280 | $ 61,191 |
Less: Accumulated depreciation and amortization | (32,798) | (31,312) |
Property and equipment, net | 29,482 | 29,879 |
Computers and Purchased Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 17,059 | 15,706 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,354 | 1,340 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,951 | 1,949 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 21,781 | 21,979 |
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 | 5,287 | 5,245 |
Trial Systems at Customers' Sites | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 6,992 | $ 7,116 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property Plant And Equipment [Line Items] | ||
Depreciation and amortization expense | $ 2,396 | $ 2,302 |
Trial Systems | ||
Property Plant And Equipment [Line Items] | ||
Transfers from inventory into (from) property and equipment | (109) | (65) |
Equipment | ||
Property Plant And Equipment [Line Items] | ||
Transfers from inventory into (from) property and equipment | $ (411) | $ 65 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued compensation and related taxes | $ 11,007 | $ 18,301 |
Accrued warranty | 877 | 926 |
Dividends and equitable adjustments payable (see Note 10) | 2,575 | 3,336 |
Accrued customer incentives | 358 | 5,368 |
Other accrued expenses | 8,271 | 9,061 |
Total accrued expenses and other current liabilities | $ 23,088 | $ 36,992 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Standard product warranty description | The Company’s products are covered by warranties for software and hardware for periods ranging from 90 days to one year. |
Extended product warranty description | The Company offers an extended warranty for periods typically of one to three years for agreed-upon fees. |
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 Cu_5
Accrued Expenses and Other Current Liabilities - Summary of Changes in Amount Reserved for Warranty Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Product Warranties Disclosures [Abstract] | ||
Warranty reserve at beginning of period | $ 926 | $ 1,246 |
Provisions | 525 | 353 |
Charges | (574) | (468) |
Warranty reserve at end of period | $ 877 | $ 1,131 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Assets fair value | $ 257,045 | $ 274,109 |
Liabilities: | ||
Liabilities fair value | 727 | 1,639 |
Certificates of Deposit | ||
Assets: | ||
Assets fair value | 20,803 | 19,873 |
Certificates of Deposit—Restricted Cash | ||
Assets: | ||
Assets fair value | 1,025 | 1,019 |
Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 235,132 | 252,963 |
Foreign Currency Forward Contracts | Derivative Financial Instruments, Assets | ||
Assets: | ||
Assets fair value | 85 | 254 |
Foreign Currency Forward Contracts | Derivative Financial Instruments, Liabilities | ||
Liabilities: | ||
Liabilities fair value | 252 | |
SARs | Share Based Compensation Liability | ||
Liabilities: | ||
Liabilities fair value | 727 | 1,387 |
Level 1 | ||
Assets: | ||
Assets fair value | 235,132 | 252,963 |
Level 1 | Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 235,132 | 252,963 |
Level 2 | ||
Assets: | ||
Assets fair value | 21,913 | 21,146 |
Liabilities: | ||
Liabilities fair value | 252 | |
Level 2 | Certificates of Deposit | ||
Assets: | ||
Assets fair value | 20,803 | 19,873 |
Level 2 | Certificates of Deposit—Restricted Cash | ||
Assets: | ||
Assets fair value | 1,025 | 1,019 |
Level 2 | Foreign Currency Forward Contracts | Derivative Financial Instruments, Assets | ||
Assets: | ||
Assets fair value | 85 | 254 |
Level 2 | Foreign Currency Forward Contracts | Derivative Financial Instruments, Liabilities | ||
Liabilities: | ||
Liabilities fair value | 252 | |
Level 3 | ||
Liabilities: | ||
Liabilities fair value | 727 | 1,387 |
Level 3 | SARs | Share Based Compensation Liability | ||
Liabilities: | ||
Liabilities fair value | $ 727 | $ 1,387 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
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 Stock Appreciation Rights (SARs) Liability (Details) - Level 3 - SARs - Share Based Compensation Liability - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value at beginning of period | $ 1,387 | $ 2,155 |
Change in fair value | (660) | 2,166 |
Fair value at end of period | $ 727 | $ 4,321 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - Foreign Currency Forward Contracts $ in Thousands | Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) |
Derivatives Fair Value [Line Items] | ||||
Outstanding notional amounts | € | € 6,679,000 | € 25,741,000 | ||
Prepaid Expenses and Other Current Assets | ||||
Derivatives Fair Value [Line Items] | ||||
Derivatives asset fair value | $ 85 | $ 254 | ||
Accrued Expenses And Other Current Liabilities | ||||
Derivatives Fair Value [Line Items] | ||||
Liability derivatives | $ 252 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 12.40% | 9.20% |
Deferred (benefit from) provision for income taxes | $ (2,170) | $ 1,793 |
Debt - Schedule of Aggregate Pr
Debt - Schedule of Aggregate Principal Amount of Debt Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | $ 300,130 | $ 300,958 |
Term Loans | ||
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | 293,250 | 294,000 |
Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Total principal amount of debt outstanding | $ 6,880 | $ 6,958 |
Debt - Schedule of Current and
Debt - Schedule of Current and Non-Current Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current liabilities: | ||
Current portion of principal payment obligations | $ 3,316 | $ 3,314 |
Unamortized debt issuance costs, current portion | (1,132) | (1,135) |
Current portion of long-term debt, net of unamortized debt issuance costs | 2,184 | 2,179 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | 296,814 | 297,644 |
Unamortized debt issuance costs, non-current portion | (4,083) | (4,364) |
Long-term debt, net of current portion and unamortized debt issuance costs | 292,731 | 293,280 |
Term Loans | ||
Current liabilities: | ||
Current portion of principal payment obligations | 3,000 | 3,000 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | 290,250 | 291,000 |
Mortgage Loan | ||
Current liabilities: | ||
Current portion of principal payment obligations | 316 | 314 |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | $ 6,564 | $ 6,644 |
Debt - Additional Information (
Debt - Additional Information (Details) | Dec. 20, 2016USD ($) | Jul. 01, 2015USD ($)Installment | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 300,130,000 | $ 300,958,000 | ||||
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 | $ 293,250,000 | $ 294,000,000 | ||||
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 | $ 293,250,000 | $ 294,000,000 | ||||
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, 2019, the interest rate on the Term Loans was 6.50% per annum, which was based on a one-month Eurodollar rate of 2.50% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. As of December 31, 2018, the interest rate on the Term Loans was 6.52% per annum, which was based on a one-month Eurodollar rate of 2.52% per annum plus the applicable margin of 4.00% per annum for Eurodollar rate loans. | |||||
Debt instrument, effective interest rate percentage | 6.50% | 6.52% | ||||
Debt issuance costs | $ 7,811,000 | |||||
Debt instrument, principal payment | $ 750,000 | $ 750,000 | ||||
Interest expense, including amortization of debt issuance costs | $ 4,958,000 | 4,516,000 | ||||
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 | 2.50% | 2.52% | ||||
Term Loan Facility | JPMorgan Chase Bank, N. A. | Floor Rate | ||||||
Debt Instrument [Line Items] | ||||||
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 | $ 6,880,000 | $ 6,958,000 | ||||
Debt instrument, interest rate stated percentage | 3.50% | |||||
Debt instrument, principal payment | 78,000 | 76,000 | ||||
Interest expense, including amortization of debt issuance costs | $ 63,000 | 65,000 | ||||
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, 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, 2019 and December 31, 2018. | |||||
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 | $ 16,000 | $ 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% |
Debt - Schedule of Aggregate Mi
Debt - Schedule of Aggregate Minimum Future Principal Payments of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2019 | $ 2,486 | |
2020 | 9,644 | |
2021 | 3,000 | |
2022 | 3,000 | |
2023 | 3,000 | |
Thereafter | 279,000 | |
Aggregate minimum future principal payments of debt | $ 300,130 | $ 300,958 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | May 10, 2017 | Dec. 21, 2016 | Jun. 17, 2016 | Nov. 30, 2014 | Nov. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Feb. 21, 2019 | Dec. 31, 2018 |
Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Stock repurchase program, common stock remaining authorized to be repurchased | $ 75,000,000 | ||||||||
Stock repurchase program, stock repurchased, shares | 0 | ||||||||
Common Stock | Maximum | |||||||||
Class Of Stock [Line Items] | |||||||||
Stock repurchase program, common stock authorized to be repurchased | $ 75,000,000 | ||||||||
November 2017 Special Dividend | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, date declared | Nov. 30, 2017 | ||||||||
Dividends to be paid | $ 0 | $ 0 | |||||||
Equitable adjustment payments of stock option, SARs and RSUs per share | $ 0.5802 | ||||||||
Equitable adjustment payments year of stock option, SARs and RSUs | 2021 | ||||||||
November 2017 Special Dividend | Vested Equity Awards | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | 122,000 | $ 387,000 | |||||||
November 2017 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | |||||||||
Class Of Stock [Line Items] | |||||||||
Equitable adjustment payments, net of estimated forfeitures | $ 481,000 | 603,000 | |||||||
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 | ||||||||
November 2017 Special Dividend | Series C Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 5.8020 | ||||||||
May 2017 Special Dividend | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, date declared | May 10, 2017 | ||||||||
Dividends paid | $ 0 | 0 | |||||||
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 | 2021 | ||||||||
May 2017 Special Dividend | Vested Equity Awards | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | 170,000 | 262,000 | |||||||
May 2017 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | |||||||||
Class Of Stock [Line Items] | |||||||||
Equitable adjustment payments, net of estimated forfeitures | $ 630,000 | 800,000 | |||||||
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 | ||||||||
May 2017 Special Dividend | Series C Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 11.7744 | ||||||||
December 2016 Special Dividend | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, date declared | Dec. 21, 2016 | ||||||||
Dividends to be paid | $ 0 | 0 | |||||||
Equitable adjustment payments of stock option, SARs and RSUs per share | $ 2.3306 | ||||||||
Equitable adjustment payments year of stock option, SARs and RSUs | 2020 | ||||||||
Dividends payable, date of record | Dec. 27, 2016 | ||||||||
December 2016 Special Dividend | Vested Equity Awards | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | $ 391,000 | 592,000 | |||||||
December 2016 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | |||||||||
Class Of Stock [Line Items] | |||||||||
Equitable adjustment payments, net of estimated forfeitures | 1,230,000 | 1,621,000 | |||||||
December 2016 Special Dividend | Common Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends payable, amount per share | $ 2.3306 | ||||||||
Dividends paid | 0 | 0 | |||||||
December 2016 Special Dividend | Preferred Stock | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | $ 0 | 0 | |||||||
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 | 2020 | ||||||||
June 2016 Special Dividend | Vested Equity Awards | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | 77,000 | 119,000 | |||||||
June 2016 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | |||||||||
Class Of Stock [Line Items] | |||||||||
Equitable adjustment payments, net of estimated forfeitures | 219,000 | 296,000 | |||||||
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 | 2018 | ||||||||
November 2014 Special Dividend | Vested Equity Awards | |||||||||
Class Of Stock [Line Items] | |||||||||
Dividends paid | 1,000 | 16,000 | |||||||
Equitable adjustment payments, net of estimated forfeitures | 0 | ||||||||
November 2014 Special Dividend | Vested Equity Awards | Accrued Expenses And Other Current Liabilities | |||||||||
Class Of Stock [Line Items] | |||||||||
Equitable adjustment payments, net of estimated forfeitures | $ 20,000 | ||||||||
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, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Cash proceeds received upon the exercise of options | $ 1,498 | $ 675 | ||
Fair value of SAR liability | 727 | $ 1,639 | ||
Unrecognized compensation cost | $ 25,500 | |||
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 11 months 23 days | |||
Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average grant date fair value per share of options | $ 3.33 | $ 8.88 | ||
Cash proceeds received upon the exercise of options | $ 1,498 | $ 675 | ||
Intrinsic value of stock options exercised | $ 4,770 | $ 5,873 | ||
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 | 27,000 | |||
Number of award exercisable | 213,000 | |||
Fair value of SAR | $ 3.59 | |||
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 | $ 727 | $ 1,387 | ||
2017 Stock Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorized for grant | 13,500,000 | |||
Number of remaining shares available for grant | 10,833,000 | |||
2011 and 2017 Stock Incentive Plan | Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares granted | 943,000 | |||
Grant-date fair value per share | $ 11.79 | |||
Number of award outstanding | 1,440,000 | 759,000 | ||
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 | 76,000 | 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, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | 9,566 | |
Number of Shares, Granted | 38 | |
Number of Shares, Exercised | (613) | |
Number of Shares, Forfeited | (34) | |
Number of Shares, Outstanding, Ending Balance | 8,957 | 9,566 |
Number of Shares, Options exercisable at March 31, 2019 | 6,804 | |
Number of Shares, Vested or expected to at March 31, 2019 | 8,836 | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ 7.29 | |
Weighted-Average Exercise Price, Granted | 9.50 | |
Weighted-Average Exercise Price, Exercised | 2.44 | |
Weighted-Average Exercise Price, Forfeited | 11.37 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance | 7.62 | $ 7.29 |
Weighted-Average Exercise Price, Options exercisable at March 31, 2019 | 5.71 | |
Weighted-Average Exercise Price, Vested or expected to vest at March 31, 2019 | $ 7.52 | |
Weighted-Average Remaining Contractual Term, Outstanding | 6 years 3 months 3 days | 6 years 4 months 6 days |
Weighted-Average Remaining Contractual Term, Options exercisable at March 31, 2019 | 5 years 7 months 20 days | |
Weighted-Average Remaining Contractual Term, Vested or expected to vest at March 31, 2019 | 6 years 2 months 23 days | |
Aggregate Intrinsic Value, Outstanding | $ 23,351 | $ 61,561 |
Aggregate Intrinsic Value, Options exercisable at March 31, 2019 | 23,264 | |
Aggregate Intrinsic Value, Vested or expected to vest at March 31, 2019 | $ 23,350 |
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, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.50% | 2.70% |
Expected volatility, Minimum | 30.50% | 32.40% |
Expected volatility, Maximum | 30.60% | 32.60% |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 1 month 6 days | 6 years |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 2 months 12 days | 6 years 2 months 12 days |
Stock-based Compensation - Su_2
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, 2019USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested, Beginning Balance | shares | 759 |
Number of Shares, Granted | shares | 943 |
Number of Shares, Vested | shares | (237) |
Number of Shares, Forfeited | shares | (25) |
Number of Shares, Unvested, Ending Balance | shares | 1,440 |
Weighted-Average Grant Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 13.40 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 11.79 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 9.06 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 14.99 |
Weighted-Average Grant Date Fair Value, Unvested, Ending Balance | $ / shares | $ 13.03 |
Aggregate Fair Value, Vested | $ | $ 3,092 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1,900 | $ 4,230 |
Cost of Revenue | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 71 | 209 |
Research and Development Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 141 | 2,018 |
Selling, General and Administrative Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1,688 | $ 2,003 |
Net Income (Loss) per Share - S
Net Income (Loss) per Share - Schedule of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income (loss) attributable to common stockholders, basic and diluted | $ (15,339) | $ 17,776 |
Denominator: | ||
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, basic | 83,323 | 81,629 |
Dilutive effect of stock options | 11,713 | |
Dilutive effect of restricted stock units | 252 | |
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, diluted | 83,323 | 93,594 |
Net income (loss) per share attributable to common stockholders: | ||
Basic | $ (0.18) | $ 0.22 |
Diluted | $ (0.18) | $ 0.19 |
Net Income (Loss) per Share -_2
Net Income (Loss) per Share - Schedule of Potential Common Shares Excluded from the Computation of Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | 8,957 | 462 |
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 | 1,440 | 103 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information - Summary o
Segment Information - Summary of Revenue Based on Customer's Location Determined by Customer's Shipping Address (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 35,486 | $ 89,074 |
North America - United States | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 14,558 | 36,071 |
North America - Canada | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 3,873 | 10,092 |
North America | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 18,431 | 46,163 |
Europe, Middle East and Africa | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 7,366 | 24,157 |
Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 4,724 | 9,352 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 4,965 | $ 9,402 |
Segment Information - Summary_2
Segment Information - Summary of Revenue Based on Customer's Location Determined by Customer's Shipping Address (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2019Country | |
Other than United States and Canada | |
Segment Reporting Information [Line Items] | |
Number of countries 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, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 29,482 | $ 29,879 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 24,652 | 25,088 |
China | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 2,626 | 2,623 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 2,204 | $ 2,168 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Liberty Global Affiliates | ||||
Related Party Transaction [Line Items] | ||||
Revenue from transactions with Liberty Global Affiliates | $ 15,731 | |||
Amounts received in cash from Liberty Global Affiliates | 13,892 | |||
Rongke Xie | ||||
Related Party Transaction [Line Items] | ||||
Compensation paid | $ 23 | $ 79 | ||
Rongke Xie | Restricted Stock Units | ||||
Related Party Transaction [Line Items] | ||||
Number of shares granted | 8 | 5 | ||
Vesting period | 4 years | |||
Aggregate fair value vested | $ 200 | |||
Selling, general and administrative expenses recognized | $ 9 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Line Items] | |||
Rent expense | $ 327,000 | $ 253,000 | |
Deferred rent liability | 172,000 | $ 184,000 | |
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 | 2021 | ||
China | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Non-cancelable operating leases expiration year | 2022 | ||
HONG KONG | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Non-cancelable operating leases expiration year | 2022 | ||
Spain | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Non-cancelable operating leases expiration year | 2023 | ||
Ireland | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Non-cancelable operating leases expiration year | 2026 | ||
Termination period of lease | 2021 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-cancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2019 | $ 797 |
2020 | 1,075 |
2021 | 906 |
2022 | 86 |
2023 | 5 |
Total | $ 2,869 |