Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 08, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | INST | ||
Entity Registrant Name | INSTRUCTURE INC | ||
Entity Central Index Key | 1,355,754 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 227,189,000 | ||
Entity Common Stock, Shares Outstanding | 28,658,145 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 44,539 | $ 90,471 |
Short term marketable securities | 23,895 | 325 |
Accounts receivable—net of allowance of $241 and $225 at December 31, 2016 and 2015, respectively | 18,072 | 9,523 |
Prepaid expenses | 5,434 | 5,010 |
Other current assets | 936 | 614 |
Total current assets | 92,876 | 105,943 |
Property and equipment, net | 14,733 | 11,732 |
Goodwill | 989 | 989 |
Intangible assets, net | 760 | 444 |
Noncurrent prepaid expenses | 984 | 749 |
Other assets | 994 | 1,203 |
Total assets | 111,336 | 121,060 |
Current liabilities: | ||
Accounts payable | 5,374 | 3,912 |
Accrued liabilities | 10,905 | 8,852 |
Deferred rent | 773 | 541 |
Deferred revenue | 72,747 | 49,384 |
Total current liabilities | 89,799 | 62,689 |
Deferred revenue, net of current portion | 3,144 | 2,941 |
Deferred rent, net of current portion | 8,372 | 9,078 |
Warrant liability | 25 | 331 |
Other long-term liabilities | 32 | 402 |
Total liabilities | 101,372 | 75,441 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, par value of $0.0001 per share; 10,000 shares authorized as of December 31, 2016 and 2015; no shares issued and outstanding as of December 31, 2016 and 2015 | ||
Common stock, par value of $0.0001 per share; 200,000 shares authorized as of December 31, 2016 and 2015; 28,554 shares issued and outstanding as of December 31, 2016; 28,368 shares issued and 27,240 shares outstanding at December 31, 2015 | 3 | 4 |
Treasury stock, 0 and 1,128 common shares, at cost, as of December 31, 2016 and 2015, respectively | (1) | |
Additional paid-in capital | 206,442 | 188,517 |
Accumulated other comprehensive income | (12) | |
Accumulated deficit | (196,469) | (142,901) |
Total stockholders’ equity | 9,964 | 45,619 |
Total liabilities and stockholders’ equity | $ 111,336 | $ 121,060 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, net of allowance | $ 241 | $ 225 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 28,553,808 | 28,368,382 |
Common stock, shares outstanding | 28,554,000 | 27,240,000 |
Treasury stock, common shares | 0 | 1,128,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | |||
Subscription and support | $ 97,115 | $ 62,463 | $ 38,093 |
Professional services and other | 13,765 | 10,730 | 6,259 |
Total revenue | 110,880 | 73,193 | 44,352 |
Cost of revenue: | |||
Subscription and support | 24,252 | 17,682 | 12,131 |
Professional services and other | 8,497 | 6,391 | 2,982 |
Total cost of revenue | 32,749 | 24,073 | 15,113 |
Gross profit | 78,131 | 49,120 | 29,239 |
Operating expenses: | |||
Sales and marketing | 69,991 | 53,459 | 35,390 |
Research and development | 35,973 | 24,151 | 21,290 |
General and administrative | 25,542 | 23,482 | 11,268 |
Total operating expenses | 131,506 | 101,092 | 67,948 |
Loss from operations | (53,375) | (51,972) | (38,709) |
Other income (expense): | |||
Interest income | 352 | 39 | 32 |
Interest expense | (87) | (74) | (136) |
Change in fair value of warrant liability | 62 | (653) | (2,518) |
Other income (expense), net | (353) | (201) | (39) |
Total other expense, net | (26) | (889) | (2,661) |
Loss before income taxes | (53,401) | (52,861) | (41,370) |
Income tax expense | (167) | (117) | (57) |
Net loss | (53,568) | (52,978) | (41,427) |
Deemed dividends to investors | (632) | ||
Net loss attributable to common stockholders | $ (53,568) | $ (53,610) | $ (41,427) |
Net loss per common share attributable to common stockholders, basic and diluted | $ (1.92) | $ (6.07) | $ (7.50) |
Weighted average common shares used in computing basic and diluted net loss per common share attributable to common stockholders | 27,838 | 8,838 | 5,525 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (53,568) | $ (52,978) | $ (41,427) |
Other comprehensive loss: | |||
Unrealized loss on marketable securities | (12) | (6) | |
Comprehensive loss | $ (53,580) | $ (52,978) | $ (41,427) |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Redeemable Convertible Preferred Stock | Common Stock | Common Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balances at Dec. 31, 2013 | $ (43,078) | $ 1 | $ (1) | $ 5,413 | $ 5 | $ (48,496) | |
Balances, Shares at Dec. 31, 2013 | 4,911,000 | (1,128,000) | |||||
Balances, Redeemable Convertible Preferred Stock at Dec. 31, 2013 | $ 49,092 | ||||||
Balances, Redeemable Convertible Preferred Stock, Shares at Dec. 31, 2013 | 12,779,000 | ||||||
Exercise of common stock options | 528 | 528 | |||||
Exercise of common stock options, Shares | 2,469,000 | ||||||
Vesting of common stock subject to repurchase | 149 | 149 | |||||
Stock-based compensation | 8,198 | 8,198 | |||||
Grant of restricted stock awards, Shares | 73,000 | ||||||
Issuance of Series E redeemable convertible preferred stock—net of issuance costs of $103 | $ 39,897 | ||||||
Issuance of Series E redeemable convertible preferred stock—net of issuance costs of $103, Shares | 1,825,000 | ||||||
Common stock issued in 12 Spokes acquisition | 104 | 104 | |||||
Common stock issued in 12 Spokes acquisition, Shares | 23,000 | ||||||
Unrealized loss on marketable securities | (6) | (6) | |||||
Reclassification of gain on marketable securities to earnings | 1 | 1 | |||||
Net loss | (41,427) | (41,427) | |||||
Balances at Dec. 31, 2014 | (75,531) | $ 1 | $ (1) | 14,392 | (89,923) | ||
Balances, Shares at Dec. 31, 2014 | 7,476,000 | (1,128,000) | |||||
Balances, Redeemable Convertible Preferred Stock at Dec. 31, 2014 | $ 88,989 | ||||||
Balances, Redeemable Convertible Preferred Stock, Shares at Dec. 31, 2014 | 14,604,000 | ||||||
Exercise of common stock options | 349 | 349 | |||||
Exercise of common stock options, Shares | 223,000 | ||||||
Vesting of common stock subject to repurchase | 48 | 48 | |||||
Stock-based compensation | 9,236 | 9,236 | |||||
Exercise of redeemable convertible preferred stock warrant | $ 4,149 | ||||||
Exercise of redeemable convertible preferred stock warrant, Shares | 373,000 | ||||||
Issuance of common stock in relation to Initial Public Offering, net of offering cost incurred of $3,936 | 71,357 | $ 1 | 71,356 | ||||
Issuance of common stock in relation to Initial Public Offering, net of offering cost incurred of $3,936, Shares | 5,060,000 | ||||||
Conversion of redeemable convertible preferred stock to common stock | 93,770 | $ (93,770) | $ 2 | 93,768 | |||
Conversion of redeemable convertible preferred stock to common stock, Shares | (14,977,000) | 15,652,000 | |||||
Cancellation of restricted stock awards | (43,000) | ||||||
Deemed dividends to investors | $ (632) | $ 632 | (632) | ||||
Retirement of treasury stock, Shares | 1,128,472 | ||||||
Net loss | $ (52,978) | (52,978) | |||||
Balances at Dec. 31, 2015 | 45,619 | $ 4 | $ (1) | 188,517 | (142,901) | ||
Balances, Shares at Dec. 31, 2015 | 28,368,000 | (1,128,000) | |||||
Issuance of common stock under employee stock purchase plans | $ 7,009 | 7,009 | |||||
Issuance of common stock under employee stock purchase plans, Shares | 1,051,000 | ||||||
Exercise of common stock options, Shares | 767,000 | ||||||
Vesting of common stock subject to repurchase | $ 25 | 25 | |||||
Vested restricted stock units, net | 0 | 185,000 | |||||
Shares withheld for tax withholding on vesting of restricted stock | $ (27) | (27) | |||||
Stock-based compensation | 10,674 | 10,674 | |||||
Retirement of treasury stock | $ 0 | $ (1) | $ 1 | ||||
Retirement of treasury stock, Shares | 0 | (1,128,000) | 1,128,000 | ||||
Exercise of common stock warrant | $ 244 | 244 | |||||
Exercise of common stock warrant, Shares | 78,000 | ||||||
Unrealized loss on marketable securities | (12) | (12) | |||||
Net loss | (53,568) | (53,568) | |||||
Balances at Dec. 31, 2016 | $ 9,964 | $ 3 | $ 206,442 | $ (12) | $ (196,469) | ||
Balances, Shares at Dec. 31, 2016 | 28,554,000 |
Consolidated Statements of Red7
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | |
Common Stock | |||
Issuance of common stock in relation to Initial Public Offering, offering cost | $ 3,936 | ||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Redeemable Convertible Preferred Stock | |||
Issuance of Series E redeemable convertible preferred stock, issuance costs | $ 103 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities: | |||
Net loss | $ (53,568,000) | $ (52,978,000) | $ (41,427,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation of property and equipment | 3,981,000 | 2,672,000 | 1,760,000 |
Amortization of intangible assets | 405,000 | 309,000 | 306,000 |
Amortization of deferred financing costs | 46,000 | 54,000 | 61,000 |
Change in fair value of warrant liability | (62,000) | 653,000 | 2,575,000 |
Excess tax benefit for stock-based compensation | (3,040,000) | (872,000) | |
Stock-based compensation | 10,674,000 | 9,236,000 | 8,198,000 |
Other | 92,000 | 193,000 | 200,000 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (8,837,000) | (1,532,000) | (4,335,000) |
Prepaid expenses and other assets | (818,000) | (2,673,000) | (2,296,000) |
Accounts payable and accrued liabilities | 3,732,000 | 3,938,000 | 2,542,000 |
Deferred revenue | 23,566,000 | 20,371,000 | 12,488,000 |
Deferred rent | (474,000) | 719,000 | 515,000 |
Other liabilities | (345,000) | (313,000) | (110,000) |
Net cash used in operating activities | (21,608,000) | (19,351,000) | (20,395,000) |
Investing Activities: | |||
Purchases of property and equipment | (7,021,000) | (6,696,000) | (2,440,000) |
Purchases of intangible assets | (721,000) | (6,000) | |
Proceeds from disposal of property and equipment | 63,000 | 64,000 | 37,000 |
Purchases of marketable securities | (28,752,000) | (1,456,000) | (1,155,000) |
Sale of marketable securities | 10,402,000 | ||
Maturities of marketable securities | 5,125,000 | 1,619,000 | 3,415,000 |
Acquisition of 12 Spokes | (250,000) | ||
Net cash (used in) provided by investing activities | (31,306,000) | (6,469,000) | 10,003,000 |
Financing Activities: | |||
IPO proceeds, net of offering costs paid of $3,261 | 72,032,000 | ||
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs of $0, $0 and $103 in the years ended December 31, 2016, 2015 and 2014, respectively | 39,897,000 | ||
Proceeds from exercise of redeemable convertible preferred stock warrants | 250,000 | ||
Proceeds from issuance of common stock from employee equity plans | 7,009,000 | 349,000 | 751,000 |
Shares repurchased for tax withholdings on vesting of restricted stock | (27,000) | ||
Payments of line of credit financing costs | (32,000) | (80,000) | |
Repayment of capital lease obligations | (223,000) | (271,000) | |
Excess tax benefit for stock-based compensation | 872,000 | ||
Net cash provided by financing activities | 6,982,000 | 72,376,000 | 41,169,000 |
Net increase in cash and cash equivalents | (45,932,000) | 46,556,000 | 30,777,000 |
Cash and cash equivalents, beginning of period | 90,471,000 | 43,915,000 | 13,138,000 |
Cash and cash equivalents, end of period | 44,539,000 | 90,471,000 | 43,915,000 |
Supplemental cash flow disclosure: | |||
Cash paid for taxes | 163,000 | 67,000 | 11,000 |
Cash paid for interest | 19,000 | 51,000 | |
Non-cash investing and financing activities: | |||
Conversion of redeemable convertible preferred stock to common stock | (93,770,000) | ||
Leasehold improvements | 23,000 | ||
Issuance of common stock for exercise of common stock warrant | 244,000 | ||
Capital expenditures incurred but not yet paid | 174,000 | 138,000 | 33,000 |
Line of credit financing costs | 58,000 | ||
Issuance of common stock for acquisition | 104,000 | ||
Deemed dividends to investors | 632,000 | ||
Vesting of common stock subject to repurchase | $ 25,000 | $ 48,000 | $ 149,000 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
IPO | |||
Payments of stock issuance costs | $ 3,261 | ||
Redeemable Convertible Preferred Stock | |||
Payments of stock issuance costs | $ 0 | $ 0 | $ 103 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business and Summary of Significant Accounting Policies Organization Instructure, Inc. provides an innovative, cloud-based learning management platform for academic institutions and companies worldwide. We built our learning management applications, Canvas, for the education market, and Bridge, for the corporate market, to enable our customers to easily develop, deliver and manage engaging face-to-face and online learning experiences. We offer our platform through a Software-as-a-Service, or SaaS, business model. We were incorporated in the state of Delaware in September 2008. We are headquartered in Salt Lake City, Utah, and have wholly-owned subsidiaries in the United Kingdom, Australia, the Netherlands and Hong Kong, all of which commenced operations in 2014 and Sweden and Brazil, which commenced operations in February 2015 and September 2015, respectively. Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP. The accompanying consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. Reverse Stock Split On October 28, 2015, our board of directors and on October 30, 2015, our stockholders, respectively, approved the amendment and restatement of our certificate of incorporation to effect a reverse split of our common stock and redeemable convertible preferred stock at a 1-for-1.5 ratio (the “Reverse Stock Split”). The Reverse Stock Split became effective on October 30, 2015, upon the filing of our amended and restated certificate of incorporation. The par value of the common and redeemable convertible preferred was not adjusted as a result of the Reverse Stock Split. All issued and outstanding common stock, redeemable convertible preferred stock, options for common stock, restricted stock awards, warrants and per share amounts have been retroactively adjusted to reflect this Reverse Stock Split for all periods presented. Initial Public Offering On November 18, 2015, the Company closed its initial public offering (“IPO”) whereby 5,060,000 shares of common stock were sold to the public, including the underwriters’ overallotment option of 660,000 shares of common stock, at a price of $16.00 per share. The Company received aggregate proceeds of approximately $75.3 million from the IPO, net of underwriters’ discounts and commissions, but before deduction of offering expenses of approximately $3.9 million. Upon the closing of the IPO, all shares of the Company’s outstanding redeemable convertible preferred stock automatically converted into 15,652,382 shares of common stock. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Accordingly, Operating Segments We operate in a single operating segment, cloud-based learning management systems. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision makers, or CODMs, which are our chief executive officer and chief financial officer, in deciding how to allocate resources and assess performance. Our CODMs evaluate our financial information and resources and assess the performance of these resources on a consolidated basis. Since we operate in one operating segment, all required financial segment information can be found in the consolidated financial statements. Net Loss Per Share Attributable to Common Stockholders Basic net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period, less the weighted average unvested common stock subject to repurchase or forfeiture. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, common stock and redeemable convertible preferred stock warrants, and redeemable convertible preferred stock are considered to be common stock equivalents. For 2014, we applied the two-class method to calculate our basic and diluted net loss per share of common stock, as our redeemable convertible preferred stock and common stock are participating securities. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. However, the two-class method does not impact the net loss per common share attributable to common stockholders as we were in a loss position for each of the periods presented and the redeemable convertible preferred stockholders do not participate in losses. A reconciliation of the denominator used in the calculation of basic and diluted net loss per share is as follows (in thousands, except per share amounts): Year Ended December 31, 2016 2015 2014 Numerator: Net loss attributable to common stockholders $ (53,568 ) $ (53,610 ) $ (41,427 ) Denominator: Weighted-average common shares outstanding—basic 27,852 8,924 5,750 Less: Weighted-average common stock subject to repurchase (14 ) (86 ) (225 ) Total weighted-average common shares outstanding—basic 27,838 8,838 5,525 Dilutive effect of share equivalents resulting from stock options, unvested restricted stock awards, common stock warrants, common stock subject to repurchase, redeemable convertible preferred stock warrants and redeemable convertible preferred stock (as converted) — — — Weighted-average common shares outstanding-diluted 27,838 8,838 5,525 Net loss per common share attributable to common stockholders, basic and diluted $ (1.92 ) $ (6.07 ) $ (7.50 ) For the years ended December 31, 2016, 2015, and 2014, we incurred net losses and, therefore, the effect of our outstanding stock options, unvested restricted stock, restricted stock units, common stock warrants, common stock subject to repurchase, redeemable convertible preferred stock warrants and redeemable convertible preferred stock was not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. The following table contains share totals with a potentially dilutive impact (in thousands): Year Ended December 31, 2016 2015 2014 Options to purchase common stock 3,106 4,101 2,994 Common stock warrants 17 103 103 Redeemable convertible preferred stock warrants — — 373 Common stock subject to repurchase — 45 135 Redeemable convertible preferred stock (as converted) — — 14,604 Unvested restricted stock awards — — 58 Restricted stock units 1,133 196 — Total 4,256 4,445 18,267 Concentration of Credit Risk, Significant Customers and International Operations Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and accounts receivable. We deposit cash with high credit quality financial institutions, which at times, may exceed federally insured amounts. We have not experienced any losses on our deposits. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from our customers. We review the expected collectability of accounts receivable and record an allowance for doubtful accounts receivable for amounts that we determine are not collectible. There were no customers with revenue as a percentage of total revenue exceeding 10% for the periods presented. The following table depicts the largest customers’ outstanding net accounts receivable balance as a percentage of the total outstanding net accounts receivable balance: Year Ended December 31, 2016 2015 Customer A 14.0 % 21.0 % Customer B — 11.0 % Customer C — 11.0 % Total 14.0 % 43.0 % There were no other customers with outstanding net accounts receivable balances as a percentage of the total outstanding net accounts receivable balance greater than 10% as of December 31, 2016 and 2015. In 2014, we began international operations. Because our long-term growth strategy involves further expansion of our sales to customers outside of the United States, our business will be susceptible to risks associated with international operations. Refer to Note 6— Geographic Data for details. Cash and Cash Equivalents We consider all short-term highly liquid investments purchased with original maturities of three months or less at the time of acquisition to be cash equivalents. Marketable Securities We hold investments in marketable securities, consisting of corporate debt securities and commercial paper. We classify our marketable securities as available-for-sale investments as we neither buy and hold securities for the purpose of selling them in the near future nor intend to hold securities to maturity. We classify our marketable securities as short term on the consolidated balance sheet for all purchased investments with contractual maturities that are less than one year as of the balance sheet date. Our marketable securities are carried at estimated fair value with any unrealized gains and losses, net of taxes, included in accumulated other comprehensive income in stockholders’ equity. Unrealized losses are charged against other income (expense), net when a decline in fair value is determined to be other-than-temporary. We have not recorded any such impairment charge in the periods presented. We determine realized gains or losses on sale or maturity of marketable securities on a specific identification method, and record such gains or losses as other income (expense), net. Accounts Receivable Accounts receivable are carried at the original invoiced amount less an allowance for doubtful accounts based on the probability of future collection. When management becomes aware of circumstances that may decrease the likelihood of collection, it records a specific allowance against amounts due, which reduces the receivable to the amount that management reasonably believes will be collected. For all other customers, management determines the adequacy of the allowance based on historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with specific accounts. Account balances are written off against the allowance for doubtful accounts receivable when the potential for recovery is remote. Recoveries of receivables previously written off are recorded when payment is received. The following is a roll-forward of our allowance for doubtful accounts (in thousands): Balance Charged to Balance at Beginning Costs or End of of Period Expenses Deductions (1) Period Allowance for Doubtful Accounts Year ended December 31, 2016 $ 225 $ 600 $ (584 ) $ 241 Year ended December 31, 2015 $ 135 $ 232 $ (142 ) $ 225 Year ended December 31, 2014 $ 53 $ 109 $ (27 ) $ 135 (1) Deductions include actual accounts written-off, net of recoveries. Property and Equipment and Intangible Assets Property and equipment are stated at cost less accumulated depreciation. Expenditures that materially increase values or capacities or extend useful lives of property and equipment are capitalized. Repairs and maintenance costs that do not extend the useful life or improve the related assets are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets or over the related lease terms (if shorter). The estimated useful life of each asset category is as follows: Estimated Useful Life Computer and office equipment 2-3 years Purchased software 2-3 years Furniture and fixtures 2-5 years Capitalized software development costs 3 years Leasehold improvements and other lesser of lease term or useful life (2-10 years) Certain costs incurred to develop software applications used in the cloud-based learning management system are capitalized and included in property and equipment, net on the balance sheets. Capitalizable costs consist of (1) certain external direct costs of materials and services incurred in developing or obtaining internal-use software; and (2) payroll and payroll-related costs for employees who are directly associated with and who devote time to the project. These costs generally consist of internal labor during configuration, coding and testing activities. Research and development costs incurred during the preliminary project stage, or costs incurred for data conversion activities, training, maintenance and general and administrative or overhead costs, are expensed as incurred. Costs that cannot be separated between the maintenance of, and relatively minor upgrades and enhancements to, internal-use software are also expensed as incurred. Costs incurred during the application development stage that significantly enhance and add new functionality to the cloud-based learning management system are capitalized as capitalized software development costs. Capitalization begins when: (1) the preliminary project stage is complete; (2) management with the relevant authority authorizes and commits to the funding of the software project; (3) it is probable the project will be completed; (4) the software will be used to perform the functions intended; and (5) certain functional and quality standards have been met. Acquired finite-lived intangibles are amortized on a straight-line basis over the estimated useful life of the asset, which is generally five years. When there are indicators of potential impairment, we evaluate recoverability of the carrying values of property and equipment and intangible assets by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds our estimated undiscounted future net cash flows, an impairment charge is recognized based on the amount by which the carrying value of the asset exceeds the fair value of the asset. We did not incur any impairment charges during the periods presented. Leases We lease our facilities under operating leases. For leases that contain rent escalation or rent concession provisions, we record rent expense for the total rent payable during the lease term on a straight-line basis over the term of the lease. We record the difference between the rent paid and the straight-line rent as a deferred rent liability in the accompanying balance sheets. Fair Value Our short-term financial instruments include accounts receivable, accounts payable and accrued liabilities and are carried in the consolidated financial statements as of December 31, 2016 and 2015 at amounts that approximate fair value due to their short-term maturity dates. Goodwill Goodwill represents the excess cost of the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not subject to amortization, but is monitored annually for impairment or more frequently if there are indicators of impairment. Management considers the following potential indicators of impairment: (1) significant underperformance relative to historical or projected future operating results; (2) significant changes in our use of acquired assets or the strategy of our overall business; (3) significant negative industry or economic trends; and (4) a significant decline in our stock price for a sustained period. We perform our annual impairment test on October 31 st . did not result in any impairment of the goodwill balance. Liability for Common Stock Warrants We account for freestanding warrants to purchase shares of our common stock that are not considered indexed to our own stock as warrant liabilities on our consolidated balance sheets. Under Accounting Standards Codification, or ASC, 815, we record the liability-classified common stock warrants issued in conjunction with our credit facility at their estimated fair value because they are free standing and the number of shares exercisable under this warrant to purchase our common stock increases if the loan balance exceeds $7,500,000 (see Note 7— Stockholders’ Equity). At the end of each reporting period, changes in the estimated fair value of the warrants to purchase shares of common stock are recorded as a change in fair value of warrant liability in the consolidated statements of operations. Liability for Redeemable Convertible Preferred Stock Warrants We account for freestanding warrants to purchase shares of our contingently redeemable convertible preferred stock as warrant liability on our consolidated balance sheets. We record the redeemable convertible preferred stock warrants at their estimated fair value because these warrants may contingently obligate us to redeem the underlying redeemable convertible preferred stock at some point in the future. At the end of each reporting period, changes in the estimated fair value of the warrant liability is recorded as change in fair value of warrant liability in the consolidated statements of operations until the earlier of the exercise or expiration of the warrants, or the completion of a qualifying liquidation event including an initial public offering, at which time the redeemable convertible preferred stock issuable upon exercise of the warrants would become common stock and the related liability would be reclassified to common stock, the redeemable convertible preferred stock warrants were exercised in February 2015. In connection with the exercise of the warrant, the warrant liability was marked to market one last time as of the settlement date. The resulting warrant liability of $3,899,000 and the cash received of $250,000 were recorded as redeemable convertible preferred stock, which then converted to common stock upon our IPO. Revenue Recognition We generate revenue primarily from two main sources: (1) subscription and support revenue, which is comprised of SaaS fees from customers accessing our learning management systems and from customers purchasing additional support beyond the standard support that is included in the basic SaaS fees; and (2) related professional services revenue, which is comprised of training, implementation services and other types of professional services. We provide our applications as a service and revenue is recognized when persuasive evidence of an arrangement exists, the fee is fixed or determinable, collection is reasonably assured, and delivery has occurred or services have been rendered. Because we provide our applications as a service and customers do not take possession of the software, these arrangements are accounted for as service contracts. For arrangements with multiple deliverables, we follow the guidance provided in ASC 605-25, Revenue Recognition for Multiple-Element Arrangements. In accordance with this guidance, deliverables in multiple-deliverable arrangements are accounted for as separate units of accounting if the delivered items have standalone value. If the deliverables in a multiple-deliverable arrangement do not have standalone value, the revenue associated with the deliverables is recognized ratably as a single unit of accounting over the period commencing upon delivery of the final deliverable and over the term of that deliverable. We allocate revenue to each deliverable in an arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence, or VSOE, if available, third-party evidence, or TPE, if VSOE is not available, or best estimate of the selling price, or BESP, if neither VSOE nor TPE is available. The total arrangement fee for a multiple-deliverable arrangement is allocated based on the relative VSOE, TPE, or BESP of each element, and the amount of revenue recognized is limited to the amount that is not contingent upon the delivery of future services. We determine BESP by considering our overall pricing objectives and market conditions. Significant pricing practices taken into consideration for our subscription services, which may also include support, training, and professional services, include discounting practices, the size and volume of our transactions, the customer type, price lists, our pricing strategy, and historical stand-alone sales. The determination of BESP is made through consultation with and approval by our pricing committee. As our pricing strategies evolve, we may modify our pricing in the future which could result in changes in relative selling prices. As subscription and support revenue are delivered over the entire length of the arrangement (the service period), they are recognized ratably beginning on the date our service is made available to customers through the end of the service period and all other revenue recognition criteria have been met. Implementation services include training and consulting services that generally take 30 to 90 days to complete. Implementation services have standalone value as the services are often sold separately. Implementation services are recognized upon completion. Implementation services also include nonrefundable upfront fees that do not have standalone value. As such, we defer revenue for the nonrefundable upfront fees and recognize the revenue over the longer of the contract term or estimated customer life. Training and professional services are sold with subscriptions and separately (i.e., not sold contemporaneously with the negotiation of a subscription contract) and we have determined each has standalone value. As a result, these services are recognized as revenue when the related services are delivered, which is generally within two to twelve months from the date of contract. Subscription training was introduced in 2016 and is recognized ratably in the same manner as subscription and support revenue described above. We also derive revenue from fees for separate, project-based custom application development, integrations, content services and change management consulting services. Pricing of these projects is generally either fixed fee or time and material based. We recognize revenue from these service arrangements in accordance with ASC 605. To the extent that adequate project reporting of time incurred and time to complete records exist, we recognize consulting services revenue as the services are performed under the proportionate performance method. In situations where we are unable to utilize the proportional performance method, for example due to either the lack of adequate documentation of time incurred or to be incurred, we recognize revenue based on the milestone method if individual milestones with substantive value to the customer exist. If neither of these two methods is able to be utilized, revenue recognition is deferred until the contract is completed. During the years ended December 31, 2016, 2015, and 2014 there was $383,000, $0 and $0 revenue recognized under the proportionate performance method, respectively. We recognized $184,000, $517,000, and $223,000 in revenue under the milestone method for 2016, 2015, and 2014, respectively. Cost of Revenue Cost of subscription revenue consists primarily of our managed hosting provider and other third-party service providers, employee-related costs including payroll, benefits and stock-based compensation expense for our operations and customer support teams, amortization of capitalized software development costs and acquired technology, and allocated overhead costs, which we define as rent, facilities and costs related to information technology, or IT. Cost of professional services and other revenue consists primarily of personnel costs of our professional services organization, including salaries, benefits, travel, bonuses and stock-based compensation, as well as allocated overhead costs. Service Availability Warranty We warrant to our customers: (1) that commercially reasonable efforts will be made to maintain the online availability of the platform for a minimum availability in a trailing 365-day period (excluding scheduled outages, standard maintenance windows, force majeure, and outages that result from any technology issue originating from any customer or user); (2) the functionality or features of the platform may change but will not materially degrade during any paid term; and (3) that support may change but will not materially degrade during any paid term. To date, we have not experienced any significant losses under these warranties. Advertising Costs Advertising costs are expensed as incurred and are included in sales and marketing expenses. Advertising expenses totaled $8,673,000, $6,965,000, and $3,849,000 for 2016, 2015 and 2014, respectively. Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award granted and recognized as compensation expense using the straight-line method over the period in which the award is expected to vest, which is generally the period from the grant date to the end of the vesting period. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We recognize compensation expense for our 2015 Employee Stock Purchase Plan on a straight-line basis. We use the market closing price of our common stock as reported on the New York Stock Exchange for the fair value of restricted stock units (“RSUs”) granted. We use the Black-Scholes option pricing model to determine the fair value of stock options issued to our employees, as well as purchase rights issued to employees under our 2015 Employee Stock Purchase Plan, or ESPP. The Black-Scholes option pricing model is affected by the unit price and a number of assumptions, including the award’s expected life, risk-free interest rate, the expected volatility of the underlying stock and expected dividends. These assumptions are estimated as follows: • Fair Value of Our Common Stock. Prior to our IPO in November 2015, we were required to estimate the fair value of our common stock. The fair value of the common stock underlying the stock options was determined by our board of directors, which considered numerous objective and subjective factors to determine the fair value of common stock at each grant date. These factors included, but were not limited to: (1) contemporaneous valuations of common stock performed by third-party specialists; (2) the lack of marketability of our common stock; (3) developments in the business; (4) the prices paid in recent transactions involving our equity securities; and (5) the likelihood of achieving a liquidity event, such as an initial public offering or a merger or acquisition, given prevailing market conditions. During aforementioned valuations, the third-party valuation firm would engage in discussions with management, analyze historical and forecasted financial statements, and review corporate documents when performing its analysis. In addition, these valuation studies were based on a number of assumptions, including industry, general economic, market and other conditions that could reasonably be evaluated at the time of the valuation. Now that our stock is publicly traded, we use the market closing price of our common stock as reported on the New York Stock Exchange for the fair value. • Risk-Free Interest Rate. We base the risk-free interest rate used in the Black-Scholes option pricing model on the implied yield available on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options. • Expected Term. We estimate the expected term for stock options using the simplified method due to the lack of historical exercise activity for our company. The simplified method calculates the expected term as the mid-point between the vesting date and the contractual expiration date of the award. For the ESPP, we use an expected term of 0.5 years to match the offering period. • Volatility. We estimate the price volatility factor based on the historical volatilities of our comparable companies as we do not have a sufficient trading history for our common stock. To determine our comparable companies, we consider public enterprise cloud-based application providers and select those that are similar to us in size, stage of life cycle, and financial leverage. We intend to continue to apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of our own common stock share price becomes available, or unless circumstances change such that the identified companies are no longer similar to us, in which case, more suitable companies whose share prices are publicly available would be utilized in the calculation. For the ESPP, we use the trading history of our own common stock to determine expected volatility. • Dividend Yield. We have not paid and do not expect to pay dividends for the foreseeable future. Foreign Currency The functional currency of our foreign subsidiaries is the U.S. dollar. Monetary assets and liabilities denominated in a foreign currency are revalued into U.S. dollars at the exchange rates in effect at the balance sheet dates. Income and expense accounts are revalued on the date of the transaction using the exchange rate in effect on the transaction date. Non-monetary assets, liabilities, and equity transactions are converted at historical exchange rates in effect at the time of the transaction. Foreign currency transaction gains and losses are recorded in other income (expense), net. During 2016, 2015 and 2014, a net foreign currency transaction loss of $339,000, $176,000 and $67,000 was recorded in the consolidated statements of operations, respectively. Research and Development With the exception of capitalized software development costs, research and development costs are expensed as incurred. Commissions We recognize commission expense related to subscriptions in the period in which the contract is signed. Risks and Uncertainties We are subject to all of the risks inherent in an early stage business. These risks include, but are not limited to, a limited operating history, new and rapidly evolving markets, dependence on the development of new services, unfavorable economic and market conditions, changes in level of demand for our services, and the timing of new application introductions. If we fail to anticipate or to respond adequately to technological developments in our industry, changes in customer or supplier requirements, or changes in regulatory requirements or industry standards, or any significant delays in the development or introduction of services, our business could be harmed. Income Taxes Deferred tax assets and liabilities are accounted for using the asset and liability method and represent the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to be in effect when these temporary differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. At December 31, 2016 and 2015, the majority of deferred tax assets are offset by a valuation allowance. We recognize interest and penalties as a component of income tax expense. Recent Accounting Pronouncement In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment transactions. The new guidance requires companies to record excess tax benefits and tax deficiencies as income tax benefit or expense in the statement of operations when the awards vest or are settled, and eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the statement of cash flows. We will adopt the standard in the three months ended March 31, 2017. Upon adoption, we will recognize the previously unrecognized excess tax benefits through a cumulative-effect adjustment to accumulated deficit. The previously unrecognized excess tax effects will be recorded as a deferred tax asset, which will be fully offset by a valuation allowance. We will apply the |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 2. Property and Equipment Property and equipment consist of the following (in thousands): December 31, 2016 2015 Computer and office equipment $ 3,918 $ 2,717 Purchased software 1,074 1,074 Capitalized software development costs 6,947 3,460 Furniture and fixtures 2,701 1,890 Leasehold improvements and other 9,413 8,096 24,053 17,237 Less accumulated depreciation and amortization (9,320 ) (5,505 ) Total $ 14,733 $ 11,732 Accumulated amortization for capitalized software development costs was $2,355,000 and $987,000 at December 31, 2016 and 2015, respectively. Amortization expense for capitalized software development costs for the years ended December 31, 2016, 2015 and 2014 was $1,368,000, $672,000 and $234,000, respectively, and is recorded within cost of revenue on the consolidated statements of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets Goodwill was $989,000 for the years ended December 31, 2016 and 2015. Intangible assets consisted of the following (in thousands): Average December 31, Useful Life 2016 2015 Domain names 15 Months $ 1,268 $ 1,268 Tradenames and trademarks 5 Months 109 109 Non-compete agreements 0 Months 26 26 Software 30 Months 321 — Capitalized Learning Content 58 Months 400 — Accumulated amortization (1,364 ) (959 ) Total $ 760 $ 444 Amortization expense for intangible assets was $405,000, $309,000 and $306,000 for the years ended December 31, 2016, 2015, and 2014, respectively. Amortization expense for capitalized learning content is recorded within cost of revenue on the consolidated statements of operations. Based on the recorded intangible assets at December 31, 2016, estimated amortization expense is expected to be as follows (in thousands): Amortization Years Ending December 31, Expense 2017 $ 292 2018 191 2019 133 2020 80 2021 64 Total $ 760 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities Our investment policy is consistent with the definition of available-for-sale securities. We do not buy and hold securities principally for the purpose of selling them in the near future nor do we intend to hold securities to maturity. Rather, our policy is focused on the preservation of capital, liquidity and return. From time to time, we may sell certain securities but the objectives are generally not to generate profits on short-term differences in price. The following table summarizes, by major security type, our assets that are measured at fair value on a recurring basis (in thousands). December 31, 2016 Amortized Gross Unrealized Gross Unrealized Estimated Fair Cost Gains Losses Value Corporate debt securities $ 23,907 $ — $ (12 ) $ 23,895 December 31, 2015 Amortized Gross Unrealized Gross Unrealized Estimated Fair Cost Gains Losses Value Corporate debt securities $ 325 $ — $ — $ 325 The aggregate fair value of investments in an unrealized loss position was $17,906,000 as of December 31, 2016. Because we do not intend to sell the investments that are in an unrealized loss position and it is not likely that we will be required to sell any investments before recovery of their amortized cost basis, we do not consider these investments with an unrealized loss to be other-than-temporarily impaired as of December 31, 2016. There were no marketable securities in an unrealized loss position as of December 31, 2015. There were gross realized gains of $0, $0 and $9,000 from the sale or maturity of marketable securities included in other income (expense), net during 2016, 2015 and 2014, respectively. There were no gross realized losses from the sale or maturity of marketable securities during the years ended December 31, 2016, 2015 and 2014. During the years ended December 31, 2016, 2015 and 2014, we recognized gross interest income on securities of $281,000, $30,000 and $177,000, respectively. Accretion expense on securities of $42,000, $13,000 and $148,000 during 2016, 2015 and 2014, respectively, and was reported within interest expense on the consolidated statements of operations. The estimated fair value of investments by contractual maturity is as follows (in thousands): December 31, 2016 2015 Due within one year $ 23,895 $ 325 Due after one year and through 5 years — — Due after 5 years and through 10 years — — Due after 10 years — — Total $ 23,895 $ 325 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facility | 5. Credit Facility In November 2012, we entered into a loan and security agreement with a financial institution, or the credit facility, allowing us to incur revolver borrowings of up to $7.0 million, or such lesser amount equal to a percentage of our monthly contracted recurring revenue. Interest on borrowings accrued at a rate equal to the prime rate plus 1.25% to 3.75%, with the exact interest rate determined by reference to a specified operating metric. Accrued interest is payable monthly on the first day of each month with all outstanding borrowings payable on the maturity date. In addition to an upfront facility fee, we are obligated to pay the lender a fee, payable quarterly in arrears, in an amount equal to 0.25% of the average unused portion of the available borrowings. The credit facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict our ability to dispose of assets, change our business, merge with or acquire other entities, incur indebtedness, incur encumbrances, make distributions to holders of our capital stock, make investments or engage in transactions with our affiliates. The agreement also includes a financial covenant requiring the achievement of minimum bookings on a trailing three month basis, tested monthly. During the continuance of an event of default, SVB may accelerate amounts outstanding, terminate the credit facility, and foreclose on the collateral. Amounts borrowed under the credit facility are secured by a first priority security interest in substantially all of our assets other than intellectual property and more than 65% of the capital stock of any of our foreign subsidiaries. In June 2015, we amended the credit facility to (1) increase available aggregate revolver borrowings and (2) decrease the interest rate on borrowings from a rate of prime plus 1.75% to prime plus 0.50%. The aggregate revolver borrowings is $15.0 million (subject to increase to $25.0 million in the lender’s sole discretion) through the maturity date in June 2017 so long as we are in compliance with all terms and conditions under the credit facility. In November 2016, as part of our normal credit facility maintenance, we amended the minimum bookings targets for October 2016 through February 2017. The aggregate revolver borrowings remained at $15.0 million (subject to increase to $25.0 million in the lender’s sole discretion) through the maturity date in June 2017 so long as we are in compliance with all terms and conditions under the credit facility. As of December 31, 2016 and 2015, we had no borrowings under the credit facility. Unamortized deferred financing costs associated with the credit facility were $10,000 and $56,000 as of December 31, 2016 and 2015, respectively. |
Geographic Data
Geographic Data | 12 Months Ended |
Dec. 31, 2016 | |
Geographic Areas Revenues From External Customers [Abstract] | |
Geographic Data | 6. Geographic Data We have one operating segment, which is our cloud-based learning management systems. Revenue by geographic region, based on the physical location of the customer, is (in thousands): Year Ended December 31, 2016 2015 2014 United States $ 100,668 $ 68,704 $ 42,366 Foreign 10,212 4,489 1,986 Total revenue $ 110,880 $ 73,193 $ 44,352 Percentage of revenue generated outside of the United States 9 % 6 % 4 % |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 7. Stockholders’ Equity Common Stock We had 200,000,000 shares of $0.0001 par value common stock authorized as of December 31, 2016 and 2015. There were 28,553,808 and 28,368,382 common shares issued at December 31, 2016 and 2015, respectively. There were 0 and 1,128,472 shares of common stock held in treasury at December 31, 2016 and 2015. Each share of common stock has the right to one vote on all matters submitted to a vote of stockholders. The holders of common stock are also entitled to receive dividends whenever funds are legally available and if declared by the board of directors, subject to prior rights of holders of all classes of stock outstanding having priority rights as to dividends. No dividends have been declared or paid on the common stock through December 31, 2016. Common Stock Warrants In November 2012, we issued a warrant to purchase 70,000 shares of common stock in connection with the credit facility. The warrant was fully exercisable with a ten-year term and an exercise price of $0.99 per share. This warrant is classified as stockholders’ equity on the consolidated balance sheets. In April 2014, we issued the lender a second warrant to purchase up to 33,332 shares of common stock in connection with an amendment of our credit facility at an exercise price of $4.47 per share, of which 16,666 were exercisable without contingency. The fair value of the warrant on the date of grant was $58,000 and was recorded as deferred financing costs and recognized as interest expense over the term of the credit facility. This common stock warrant is classified as a liability and recorded as a warrant liability on the consolidated balance sheets with changes in fair value being recorded each reporting period through the changes in fair value of warrant liability account on the statements of operations. On February 2, 2016, warrants for 86,666 shares were exercised. At the lender’s request, we withheld 8,260 shares to cover the warrant exercise costs and issued 78,406 shares. In connection with the exercise of the warrant, the warrant liability was marked to market as of the settlement date and a portion of the warrant liability equal to $244,000 was reversed and recorded as additional paid-in capital. The remaining warrant to purchase 16,666 d or otherwise disposed, then immediately prior to and contingent upon that acquisition. In the event of an acquisition, the common stock warrant will be automatically net-share settled if such exercise would provide value to the holder. The following table summarizes information about common stock warrants outstanding as of December 31, 2016 and 2015 (in thousands, except per share amounts): Number December 31, Warrants to Purchase Years of Expiration 2016 2015 Exercise Price Common stock 2022 — 70 $ 0.99 Common stock 2018 17 33 4.47 Preferred Stock Upon the closing of the IPO, our amended and restated certificate of incorporation authorized shares of undesignated preferred stock. As of December 31, 2016 and 2015, we had 10,000,000 shares of $0.0001 par value preferred stock authorized, of which no shares were issued or outstanding at December 31, 2016 and 2015. Redeemable Convertible Preferred Stock Upon the closing of the IPO on November 18, 2015, all outstanding convertible preferred stock was converted into 15,652,382 shares of common stock on a one-to-one basis, other than Series E which were converted using a ratio of approximately 1.3701 shares of common stock for each share of Series E preferred stock. No redeemable convertible preferred stock was outstanding as of December 31, 2016 and 2015. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation The 2010 Equity Incentive Plan (the “2010 Plan”) was terminated in connection with our IPO, and accordingly no shares are available for issuance under the 2010 Plan. However, any outstanding options granted under the 2010 Plan will remain outstanding, subject to the terms of the 2010 Plan and stock options agreements, until such outstanding options are exercised or until they terminate or expire by their terms. The 2010 Plan provided for the grant of incentive stock options, nonqualified options, stock appreciation rights, and shares of restricted stock to the Company’s employees, officers, directors and outside consultants. As of December 31, 2016, 2,874,583 options to purchase common stock remained outstanding under the 2010 Plan. Certain stock options granted under the 2010 Plan provide for early exercise of unvested shares. The unvested shares are subject to a repurchase right held by us at the original purchase price. Early exercises of options are not deemed to be substantive exercises for accounting purposes and accordingly, amounts received for early exercises are initially recorded in accrued liabilities or other long-term liabilities and reclassified to additional paid-in capital as the underlying shares vest. At December 31, 2016 and 2015, we had $0 and $26,000 recorded in liabilities related to early exercises of stock options, and the related number of unvested shares subject to repurchase was 0 and 44,541, respectively. In August 2015, our board of directors adopted the 2015 Equity Inventive Plan (the “2015 Plan”) and our stockholders approved the 2015 Plan in October 2015. The 2015 Plan became effective in connection with the IPO and provides for the grant of incentive stock options, nonqualified options, restricted stock units, stock appreciation rights, and shares of restricted stock. As of December 31, 2016, there were 3,225,795 shares of common stock authorized under the 2015 Plan. The 2015 Plan also provides that the number of shares reserved and available for issuance under the plan automatically increases each January 1, beginning on January 1, 2016 and continuing through and including January 1, 2025, by 4.5% of the total number of shares of our capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by our board of directors. This number is subject to adjustment in the event of a stock split, stock dividend or other change in our capital structure. As of December 31, 2016, 1,132,768 RSUs, net of forfeitures, remained outstanding under the 2015 Plan and 1,676,503 shares remaining for future grants. As of December 31, 2016, there were options to purchase 232,155 shares of common stock outstanding under the 2015 Plan. The board of directors determines the terms of each grant. Generally, options have a vesting period ranging from one to four years. Stock options have a ten-year contractual life. Certain stock options have provisions to accelerate vesting upon the occurrence of certain events such as a change in control. Certain stock options provide for early exercise of unvested shares. All options were granted with an exercise price equal to or greater than the estimated fair value of our common stock at the date of grant. The fair value of the common stock that underlies the stock options has historically been determined by the board of directors based, in part, upon periodic valuation studies obtained from a third-party valuation firm. After the IPO, the fair value is determined by the market closing price of our common stock as reported on the New York Stock Exchange on the date of grant. In August 2015, our board of directors adopted the 2015 Employee Stock Purchase Plan (the “ESPP”). Our stockholders approved the ESPP in October 2015, which became effective on the date of the IPO. A total of 333,333 shares of our common stock were initially reserved for issuance under the ESPP. The number of shares reserved for issuance will increase automatically each year, beginning January 1, 2016 through and including January 1, 2025 by the lesser of 1% of the total number of shares of our common stock outstanding on December 31 of the preceding calendar year; 333,333 shares of common stock; or such lesser number as determined by our board of directors. As of December 31, 2016, there were 605,732 shares authorized under the ESPP. The plan allows eligible employees to purchase shares of our common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. Our board of directors approves the ESPP offerings. Each offering need not be identical, but may not exceed 27 months and may specify one or more shorter purchase periods within the offering. On each purchase date, eligible employees will purchase our stock at a price per share equal to 85% of the lesser of (1) the fair market value of our stock on the offering date or (2) the fair market value of our stock on the purchase date. During the year ended December 31, 2016, we issued 284,592 shares under the ESPP, with a weighted average purchase price per share of $14.53. Total cash proceeds from the purchase of shares under the 2015 ESPP in 2016 was $4,136,000. As of December 31, 2016, 321,140 shares are reserved for future issuance under the ESPP. The following table summarizes the assumptions relating to our stock options and ESPP purchase rights used in a Black Scholes option pricing model : Year Ended December 31, 2016 2015 2014 Employee Stock Options Dividend yield None None None Volatility 65.87% 66.15%—70% 70.00%—71.18% Risk-free interest rate 1.4% 1.46%—1.84% 1.65%—1.99% Expected life (years) 6.1 5.1—6.7 5.3—6.1 Fair value of common stock $13.79 $9.195—$14.250 $2.355—$8.430 Employee Stock Purchase Plan Dividend yield None None — Volatility 46.95%—59.71% 54.22% — Risk-free interest rate 0.35%—0.60% 0.35% — Expected life (years) 0.5 0.5 — Fair value of common stock 18.43—20.05 18.99 — We estimate forfeitures at the time of grant for those awards that are expected to vest and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. During 2014, certain investors purchased an aggregate of 648,774 shares of common stock from current and former employees, at a weighted average price per share of $19.72. This transaction resulted in aggregate purchase consideration of $12,797,000. The purchase price per share was in excess of the fair value of such shares. As a result, during 2014, we recorded the incremental purchase price above fair value of $6,898,000 as stock-based compensation expense for the sales by current and former employees. During 2015, certain investors purchased an aggregate of 121,528 shares of common stock from a former employee, at a weighted average price per share of $19.72. In addition, during the year ended December 31, 2015, certain investors also purchased an aggregate of 534,251 shares of Series A redeemable convertible preferred stock from a current employee and another third-party investor, at a weighted average price per share of $21.93. These transactions resulted in aggregate purchase consideration of $14,109,000. The purchase price per share was in excess of the fair value of such shares. As a result, during the year ended December 31, 2015, we recorded the incremental purchase price above fair value of $5,353,000 as stock-based compensation expense for the sales by the current and former employees and $632,000 as a non-cash deemed dividend for the sale by the third-party investor. The following two tables show stock-based compensation expense by award type and where the stock-based compensation expense was recorded in our consolidated statements of operations (in thousands): Year Ended December 31, 2016 2015 2014 Options $ 4,102 $ 3,466 $ 1,233 Vesting of restricted stock awards — 61 67 Restricted stock units 4,561 134 — Employee stock purchase plan 2,011 222 — Employee sale of securities to investors — 5,353 6,898 Total stock-based compensation $ 10,674 $ 9,236 $ 8,198 Year Ended December 31, 2016 2015 2014 Subscription and support cost of revenue $ 488 $ 177 $ 258 Professional services and other cost of revenue 474 166 39 Sales and marketing 3,030 1,228 2,877 Research and development 3,862 1,403 3,971 General and administrative 2,820 6,262 1,053 Total stock-based compensation $ 10,674 $ 9,236 $ 8,198 The following table summarizes the stock option activity for the year ended December 31, 2016 (in thousands, except per share amounts): Weighted- Weighted- Average Shares Average Remaining Aggregate Underlying Exercise Life Intrinsic Options Price (in years) Value Outstanding at January 1, 2016 4,101 $ 6.58 8.3 $ 58,417 Granted 232 13.79 Exercised (767 ) 3.75 Forfeited or cancelled (460 ) 11.15 Outstanding at December 31, 2016 3,106 7.14 7.5 38,558 Vested and expected to vest—December 31, 2016 3,024 7.01 7.4 37,907 Exercisable at December 31, 2016 1,816 4.99 6.9 26,431 The follow table summarizes the activity of our unvested stock options for the year ended December 31, 2016 (in thousands, except per share amounts): Weighted- Average Shares Grant Date Underlying Fair Value Options Per Share Unvested at January 1, 2016 2,460 $ 5.74 Granted 232 8.29 Vested (1,049 ) 4.67 Forfeited (446 ) 6.91 Unvested at December 31, 2016 1,197 6.74 The weighted-average grant-date fair value of each option granted during 2016, 2015 and 2014 was $8.29, $7.26 and $3.75, respectively. The total intrinsic value of options exercised was $12,214,000, $2,328,000, and $10,942,000 during 2016, 2015, and 2014, respectively. The total fair value of options vested during 2016, 2015 and 2014 was $4,877,000, $2,366,000, $735,000, respectively. As of December 31, 2016 and 2015, we had $5,342,000 and $9,721,000, respectively, of unrecognized stock-based compensation costs related to non-vested options that are expected to be recognized over a weighted average period of 2.3 years and 3.0 years, respectively. As of December 31, 2016 and 2015, we had $830,000 and $919,000 of unrecognized stock-based compensation expense related to our ESPP that is expected to be recognized over the remaining term of the current offering period through May 31, 2017. RSUs vest upon achievement of a service condition. As soon as practicable following each vesting date, we will issue to the holder of the RSUs the number of shares of common stock equal to the aggregate number of RSUs that have vested. The The activity for RSUs for the year ended December 31, 2016 is as follows (in thousands, except per share amounts): RSUs Outstanding Weighted- Average Grant Date Fair Shares Value Per Share Unvested and outstanding at January 1, 2016 196 $ 18.42 Granted 1,277 18.04 Vested (186 ) 16.82 Cancelled (154 ) 17.64 Unvested and outstanding at December 31, 2016 1,133 18.36 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes Loss before provision for income taxes was as follows: Year Ended December 31, 2016 2015 2014 (in thousands) United States $ (41,649 ) $ (43,626 ) $ (36,783 ) Foreign (11,752 ) (9,235 ) (4,587 ) Total $ (53,401 ) $ (52,861 ) $ (41,370 ) The components of the provision (benefit) for income taxes were as follows: Year Ended December 31, 2016 2015 2014 (in thousands) Current: Federal $ — $ — $ — State 49 16 22 Foreign 183 65 63 Total 232 81 85 Deferred: Federal 24 41 — State 3 5 — Foreign (92 ) (10 ) (28 ) Total (65 ) 36 (28 ) Provision for income taxes $ 167 $ 117 $ 57 The following reconciles the differences between income taxes computed at the federal statutory rate of 35% and the provision for income taxes: Year Ended December 31, 2016 2015 2014 (in thousands) Expected income tax benefit at the federal statutory rate $ (18,156 ) $ (17,972 ) $ (14,066 ) State tax net of federal benefit (1,767 ) (1,703 ) (904 ) Stock-based compensation 1,101 2,921 2,782 Stock warrant liability (21 ) 222 856 Difference in foreign tax rates 1,553 1,090 1,524 Research and development credits (552 ) (397 ) (314 ) Change in valuation allowance 17,798 15,615 10,114 Other 211 341 65 Income tax provision $ 167 $ 117 $ 57 Deferred Tax Assets and Liabilities Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities were as follows: Year Ended December 31, 2016 2015 2014 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 53,693 $ 37,152 $ 22,626 Research and development credits 2,027 1,372 897 Accruals and reserves 3,614 3,285 2,746 Depreciation 382 157 286 Stock-based compensation 2,310 1,349 611 Total deferred tax assets 62,026 43,315 27,166 Deferred tax liabilities: Intangible assets (73 ) (47 ) (20 ) Capitalized costs (1,774 ) (952 ) (409 ) Total deferred tax liabilities (1,847 ) (999 ) (429 ) Valuation allowance (60,122 ) (42,324 ) (26,709 ) Net deferred tax assets $ 57 $ (8 ) $ 28 At December 31, 2016, we had $53,693,000 in tax-effected federal, state and foreign net operating loss carryforwards that, if unused, begin expiring in 2018. Additionally, we had $3,040,000 of tax-effected carryforwards related to excess tax benefits for stock-based compensation. These operating loss carryforwards, if unused, begin expiring in 2018. Finally, at December 31, 2016, we had $3,395,000 in income tax credits, consisting primarily of federal and state research and development tax credits. These tax credits, if unused, begin expiring in 2023. We review all available evidence to evaluate our recovery of deferred tax assets, including our recent history of accumulated losses in all tax jurisdictions over the most recent three years as well as our ability to generate income in future periods. We have provided a valuation allowance against our U.S. net deferred tax assets as it is more likely than not that these assets will not be realized given the nature of the assets and the likelihood of future utilization. The valuation allowance increased by $17,798,000 and $15,615,000 in 2016 and 2015, respectively, due to the increase in the deferred tax assets primarily due to the increase in the net operating loss carryforwards. U.S. income taxes on the undistributed earnings of our non-U.S. subsidiaries have not been provided for as we currently plan to indefinitely reinvest these amounts and have the ability to do so. Cumulative undistributed foreign earnings were not material at December 31, 2016 and December 31, 2015. We have federal net operating loss carryforwards of $127,438,000 and $91,226,000 at December 31, 2016 and 2015, respectively, which expire at various dates through 2034. We have generated net operating loss carryforwards from stock compensation deductions and the amount of federal and state excess tax benefits totaling $7,869,000 will be credited to additional paid-in capital if realized. We have federal research and development credit carryforwards of $2,580,000 at December 31, 2016 that expire at various dates through 2034. We also have state research and investment credit carryforwards of $815,000 that expire at various dates through 2028. On December 18, 2015, the Tax Increase Prevention Act was signed into law, which contains provisions that permanently extended the federal research credit. The federal research credit provisions had previously expired at the end of 2015. A 2015 federal research credit of $610,000 is reflected in the consolidated financial statements. Uncertain Tax Positions We account for uncertainty in income taxes using a two-step process. We first determine whether it is more likely than not that a tax position will be sustained upon examination by the tax authority, including resolutions of any related appeals or litigation processes, based on technical merit. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The following summarizes activity related to unrecognized tax benefits: Year Ended December 31, 2016 2015 2014 (in thousands) Unrecognized benefit—beginning of the year $ 739 $ 483 $ 280 Gross increases (decreases)—prior period positions — — — Gross increases (decreases)—current period positions 352 256 203 Unrecognized benefit—end of period $ 1,091 $ 739 $ 483 All of the unrecognized tax benefits decrease deferred tax assets with a corresponding decrease to the valuation allowance. None of the unrecognized tax benefits would affect our effective tax rate if recognized in the future. We have elected to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. No interest or penalties have been recorded through December 31, 2016. We do not expect any significant change in our unrecognized tax benefits within the next 12 months. We file tax returns in the United States, the United Kingdom, Australia, the Netherlands, Hong Kong, Sweden, Brazil and various state jurisdictions. All of our tax years remain open to examination by major taxing jurisdictions to which we are subject, as carryforward attributes generated in past years may still be adjusted upon examination by the Internal Revenue Service or state and foreign tax authorities if they have or will be used in future periods. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 10. Fair Value of Financial Instruments The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. The fair value hierarchy prioritizes the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. There were no transfers between Level 1 and Level 2 of the fair value measurement hierarchy during 2016 and 2015. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2016, were as follows (in thousands): December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 17,394 $ — $ — $ 17,394 Corporate debt securities — 23,895 — 23,895 Total assets $ 17,394 $ 23,895 $ — $ 41,289 Liabilities: Common stock warrant liability — — 25 25 Assets and liabilities measured at fair value on a recurring basis as of December 31, 2015, were as follows (in thousands): December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 69,845 $ — $ — $ 69,845 Corporate debt securities — 325 — 325 Total assets $ 69,845 $ 325 $ — $ 70,170 Liabilities: Common stock warrant liability — — 331 331 The following table sets forth a summary of the changes in the estimated fair value of the warrant liabilities, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands): Redeemable Convertible Preferred Stock Common Stock Warrant Warrant Liability Liability Balance at January 1, 2015 $ 3,439 $ 138 Recognized expense 460 193 Exercise of warrant (3,899 ) — Balance at December 31, 2015 $ — $ 331 Recognized gain — (62 ) Exercise of warrant — (244 ) Balance at December 31, 2016 $ — $ 25 The fair values of these outstanding warrants are measured using an option pricing model and probability weighted expect return model. Inputs used to determine estimated fair value include the estimated fair value of the underlying preferred and common stock at the valuation measurement date, the estimated time to exit, risk-free interest rates, expected dividends, probability of contingent event, and estimated volatility. In addition to the above, significant inputs to the common stock warrant also includes the estimated likelihood of the exercise contingency being met. Estimated volatility is based on the volatility of a peer group. We monitor the historical volatility of peer group companies on a quarterly basis and adjusts the estimated volatility when significant changes in the peer group volatilities occur. Generally, increases (decreases) in the fair value of the underlying preferred and common stock would result in a directionally similar impact to the fair value measurement. Fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. The hierarchy level assigned to each security in our marketable securities portfolio and cash equivalents is based on our assessment of the transparency and reliability of the inputs used in the valuation of such instrument at the measurement date. The fair value of cash equivalents included in the Level 1 category is based on quoted prices that are readily and regularly available in an active market. The fair value of the marketable securities included in the Level 2 category is based on observable inputs, such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. These values were obtained from an independent pricing service and were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well-established independent pricing vendors and broker-dealers. See Note 4—Marketable Securities for further information regarding the fair value of our investments. The carrying amount of our cash, receivables, and payables approximates fair value because of the short-term nature of these items. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Litigation We are involved in legal proceedings, including challenges to trademarks, from time to time arising in the normal course of business. Management believes that the outcome of these proceedings will not have a material impact on our financial position, results of operations, or liquidity. Lease Commitments We lease office space under non-cancelable operating leases that contain rent escalation clauses and renewal options. We recognize rent expense on a straight-line basis over the lease period and have accrued for rent expense incurred but not paid. We are also committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. During 2013, we entered into a 12-year non-cancellable operating lease for our corporate headquarters that included a lease incentive allowance of $8,088,000 that we could use for either the payment of leasehold improvements or rent abatement. We utilized $5,629,000 of the lease incentive allowance for leasehold improvements, which were capitalized within property and equipment, net, on the consolidated balance sheets and depreciated over the lesser of the estimated useful life or the lease term. The remaining $2,459,000 was utilized as a rent abatement for the first 13 months of the lease. As part of the lease agreement, we are subject to 3% annual rent escalations. During 2015, we expanded our corporate headquarters and took occupancy of an additional floor. The lease was executed in September 2015 and includes a 3% annual rent escalation. The leasehold improvement allowance, rent abatement and rent escalations were incorporated into our straight-line rent calculation. In order to accommodate current and anticipated future growth, we took occupancy in June 2015 of a leased research and development facility in Chicago, Illinois. The lease for the research and development facility was executed in December 2014 and is a 7.5 year non-cancellable operating lease that included a leasehold improvement allowance of $494,000. These leasehold improvements were capitalized within property and equipment, net, on the consolidated balance sheets and depreciated over the lesser of the estimated useful life or the lease term. The lease also provided a 50% monthly rent abatement for the first 24 months, or approximately $303,000 in total rent abatement. As part of the lease agreement, we are subject to 2.5% annual rent escalations. The leasehold improvement allowance, rent abatement and rent escalations were incorporated into our straight-line rent calculation. With the growth and expansion of sales, marketing, and customer support operations in the United Kingdom, a new non-cancellable operating lease was entered into in June 2015. The leased space in London has an initial term of five years with no rent escalations, and includes a 100% base rent abatement for the first eight months. A new facility was also secured for continued growth and expansion of sales, marketing, and customer support operations in Australia in August 2015. The non-cancellable lease agreement for the Sydney location has an initial term of five years, includes a tenant improvement allowance of $169,000. In September 2016, a new non-cancellable operating lease was entered into to support the growth and expansion of sales, marketing and customer support operations in Sao Paulo, Brazil. The leased space has an initial term of three years with annual rent escalations of 5%, and includes a 100% base rent abatement for the first 4 months. In November 2016, we entered into two new lease agreements in Pleasant Grove, Utah to facilitate the growth of our engineering organization. The first lease is a short-term lease for temporary space while more permanent space is being made available for occupancy. The lease commences when the temporary space is suitable for occupancy, estimated to be February 15, 2017, and ends when the long-term lease is suitable for occupancy, estimated to be February 1, 2018. Total rent payments for the temporary lease is $148,906 due upon occupancy of the short term space. The second lease is a long-term lease with an initial lease term of 11 years from the date the facility is completed and fit for occupancy. We have the option to renew the long-term lease for an additional five-year period. The long-term lease includes two floors with occupancy of the second floor delayed until year two of the lease. Base annual rent payments are subject to annual rent escalations of 2.5% and are $803,000 per floor for the first 3.5 years and increase to $1,045,000 per floor for the remaining years. At December 31, 2016, future minimum lease payments under non-cancellable operating leases were as follows (in thousands): Year Ended December 31: Operating Leases 2017 $ 5,728 2018 6,020 2019 7,376 2020 6,961 2021 6,757 Thereafter 35,105 Total $ 67,947 Rent expense under operating leases for 2016, 2015 and 2014 was $4,680,000, $4,097,000 and $3,317,000, respectively. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | 12. Employee Benefit Plan We sponsor a qualified 401(k) defined contribution plan (the “401(k) Plan”), available to all qualified employees. The 401(k) Plan allows employees to contribute gross salary though payroll deductions up to the legally mandated limit based on their jurisdiction. In 2014, we implemented a matching contribution equal to 50% of each participant’s elective contributions, not to exceed $1,000 per participant annually. Participants vest in matching contributions over a four-year period after a one year cliff vest. The cost recognized for our contributions to the 401(k) Plan for the year ended December 31, 2016, 2015 and 2014 was $619,000, $468,000 and $296,000, respectively. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 13. Related-Party Transactions We incurred $20,000, $40,000 and $40,000 for consulting services provided by a member of our board of directors during 2016, 2015 and 2014, respectively. We owed $0, and $10,000 for such services at December 31, 2016 and 2015, respectively. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (unaudited) | 15. Selected Quarterly Financial Data (unaudited) The following tables set forth selected unaudited quarterly consolidated statements of operations data for each of the eight quarters in 2016 and 2015 (in thousands except per share data): Three Months Ended Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015 March 31, 2015 (unaudited) (in thousands) Total revenues $ 31,546 $ 30,145 $ 25,890 $ 23,299 $ 21,797 $ 20,894 $ 15,877 $ 14,625 Gross profit 22,419 21,507 18,255 15,950 14,961 14,100 10,345 9,714 Loss from operations (12,838 ) (12,267 ) (14,516 ) (13,754 ) (11,912 ) (10,103 ) (13,273 ) (16,684 ) Net loss (12,922 ) (12,317 ) (14,590 ) (13,739 ) (12,122 ) (10,212 ) (13,334 ) (17,310 ) Net loss attributable to common stockholders (12,922 ) (12,317 ) (14,590 ) (13,739 ) (12,122 ) (10,212 ) (13,966 ) (17,310 ) Net loss per common share attributable to common stockholders, basic and diluted (0.46 ) (0.44 ) (0.53 ) (0.50 ) (0.74 ) (1.60 ) (2.21 ) (2.79 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events In January 2017, we granted 149,571 RSUs and options to purchase 166,005 shares of common stock. Total unrecognized stock-based compensation costs was $5,400,000, which is expected to be recognized over a weighted-average period of approximately four years. In February 2017, we granted 12,048 RSUs and options to purchase 19,245 shares of common stock. Total unrecognized stock-based compensation costs was $529,000, which is expected to be recognized over a weighted-average period of approximately four years. In January 2016, the number of shares authorized for the 2015 Equity Incentive Plan and 2015 Employee Stock Purchase Plan increased by 1,284,921 and 285,538, respectively, in connection with the annual automatic increases provided by those plans. |
Description of Business and S25
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Organization | Organization Instructure, Inc. provides an innovative, cloud-based learning management platform for academic institutions and companies worldwide. We built our learning management applications, Canvas, for the education market, and Bridge, for the corporate market, to enable our customers to easily develop, deliver and manage engaging face-to-face and online learning experiences. We offer our platform through a Software-as-a-Service, or SaaS, business model. We were incorporated in the state of Delaware in September 2008. We are headquartered in Salt Lake City, Utah, and have wholly-owned subsidiaries in the United Kingdom, Australia, the Netherlands and Hong Kong, all of which commenced operations in 2014 and Sweden and Brazil, which commenced operations in February 2015 and September 2015, respectively. |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP. The accompanying consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation. |
Reverse Stock Split | Reverse Stock Split On October 28, 2015, our board of directors and on October 30, 2015, our stockholders, respectively, approved the amendment and restatement of our certificate of incorporation to effect a reverse split of our common stock and redeemable convertible preferred stock at a 1-for-1.5 ratio (the “Reverse Stock Split”). The Reverse Stock Split became effective on October 30, 2015, upon the filing of our amended and restated certificate of incorporation. The par value of the common and redeemable convertible preferred was not adjusted as a result of the Reverse Stock Split. All issued and outstanding common stock, redeemable convertible preferred stock, options for common stock, restricted stock awards, warrants and per share amounts have been retroactively adjusted to reflect this Reverse Stock Split for all periods presented. |
Initial Public Offering | Initial Public Offering On November 18, 2015, the Company closed its initial public offering (“IPO”) whereby 5,060,000 shares of common stock were sold to the public, including the underwriters’ overallotment option of 660,000 shares of common stock, at a price of $16.00 per share. The Company received aggregate proceeds of approximately $75.3 million from the IPO, net of underwriters’ discounts and commissions, but before deduction of offering expenses of approximately $3.9 million. Upon the closing of the IPO, all shares of the Company’s outstanding redeemable convertible preferred stock automatically converted into 15,652,382 shares of common stock. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Accordingly, |
Operating Segments | Operating Segments We operate in a single operating segment, cloud-based learning management systems. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision makers, or CODMs, which are our chief executive officer and chief financial officer, in deciding how to allocate resources and assess performance. Our CODMs evaluate our financial information and resources and assess the performance of these resources on a consolidated basis. Since we operate in one operating segment, all required financial segment information can be found in the consolidated financial statements. |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders Basic net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period, less the weighted average unvested common stock subject to repurchase or forfeiture. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, common stock and redeemable convertible preferred stock warrants, and redeemable convertible preferred stock are considered to be common stock equivalents. For 2014, we applied the two-class method to calculate our basic and diluted net loss per share of common stock, as our redeemable convertible preferred stock and common stock are participating securities. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. However, the two-class method does not impact the net loss per common share attributable to common stockholders as we were in a loss position for each of the periods presented and the redeemable convertible preferred stockholders do not participate in losses. A reconciliation of the denominator used in the calculation of basic and diluted net loss per share is as follows (in thousands, except per share amounts): Year Ended December 31, 2016 2015 2014 Numerator: Net loss attributable to common stockholders $ (53,568 ) $ (53,610 ) $ (41,427 ) Denominator: Weighted-average common shares outstanding—basic 27,852 8,924 5,750 Less: Weighted-average common stock subject to repurchase (14 ) (86 ) (225 ) Total weighted-average common shares outstanding—basic 27,838 8,838 5,525 Dilutive effect of share equivalents resulting from stock options, unvested restricted stock awards, common stock warrants, common stock subject to repurchase, redeemable convertible preferred stock warrants and redeemable convertible preferred stock (as converted) — — — Weighted-average common shares outstanding-diluted 27,838 8,838 5,525 Net loss per common share attributable to common stockholders, basic and diluted $ (1.92 ) $ (6.07 ) $ (7.50 ) For the years ended December 31, 2016, 2015, and 2014, we incurred net losses and, therefore, the effect of our outstanding stock options, unvested restricted stock, restricted stock units, common stock warrants, common stock subject to repurchase, redeemable convertible preferred stock warrants and redeemable convertible preferred stock was not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. The following table contains share totals with a potentially dilutive impact (in thousands): Year Ended December 31, 2016 2015 2014 Options to purchase common stock 3,106 4,101 2,994 Common stock warrants 17 103 103 Redeemable convertible preferred stock warrants — — 373 Common stock subject to repurchase — 45 135 Redeemable convertible preferred stock (as converted) — — 14,604 Unvested restricted stock awards — — 58 Restricted stock units 1,133 196 — Total 4,256 4,445 18,267 |
Concentration of Credit Risk, Significant Customers and International Operations | Concentration of Credit Risk, Significant Customers and International Operations Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and accounts receivable. We deposit cash with high credit quality financial institutions, which at times, may exceed federally insured amounts. We have not experienced any losses on our deposits. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from our customers. We review the expected collectability of accounts receivable and record an allowance for doubtful accounts receivable for amounts that we determine are not collectible. There were no customers with revenue as a percentage of total revenue exceeding 10% for the periods presented. The following table depicts the largest customers’ outstanding net accounts receivable balance as a percentage of the total outstanding net accounts receivable balance: Year Ended December 31, 2016 2015 Customer A 14.0 % 21.0 % Customer B — 11.0 % Customer C — 11.0 % Total 14.0 % 43.0 % There were no other customers with outstanding net accounts receivable balances as a percentage of the total outstanding net accounts receivable balance greater than 10% as of December 31, 2016 and 2015. In 2014, we began international operations. Because our long-term growth strategy involves further expansion of our sales to customers outside of the United States, our business will be susceptible to risks associated with international operations. Refer to Note 6— Geographic Data for details. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all short-term highly liquid investments purchased with original maturities of three months or less at the time of acquisition to be cash equivalents. |
Marketable Securities | Marketable Securities We hold investments in marketable securities, consisting of corporate debt securities and commercial paper. We classify our marketable securities as available-for-sale investments as we neither buy and hold securities for the purpose of selling them in the near future nor intend to hold securities to maturity. We classify our marketable securities as short term on the consolidated balance sheet for all purchased investments with contractual maturities that are less than one year as of the balance sheet date. Our marketable securities are carried at estimated fair value with any unrealized gains and losses, net of taxes, included in accumulated other comprehensive income in stockholders’ equity. Unrealized losses are charged against other income (expense), net when a decline in fair value is determined to be other-than-temporary. We have not recorded any such impairment charge in the periods presented. We determine realized gains or losses on sale or maturity of marketable securities on a specific identification method, and record such gains or losses as other income (expense), net. |
Accounts Receivable | Accounts Receivable Accounts receivable are carried at the original invoiced amount less an allowance for doubtful accounts based on the probability of future collection. When management becomes aware of circumstances that may decrease the likelihood of collection, it records a specific allowance against amounts due, which reduces the receivable to the amount that management reasonably believes will be collected. For all other customers, management determines the adequacy of the allowance based on historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with specific accounts. Account balances are written off against the allowance for doubtful accounts receivable when the potential for recovery is remote. Recoveries of receivables previously written off are recorded when payment is received. The following is a roll-forward of our allowance for doubtful accounts (in thousands): Balance Charged to Balance at Beginning Costs or End of of Period Expenses Deductions (1) Period Allowance for Doubtful Accounts Year ended December 31, 2016 $ 225 $ 600 $ (584 ) $ 241 Year ended December 31, 2015 $ 135 $ 232 $ (142 ) $ 225 Year ended December 31, 2014 $ 53 $ 109 $ (27 ) $ 135 (1) Deductions include actual accounts written-off, net of recoveries. |
Property and Equipment and Intangible Assets | Property and Equipment and Intangible Assets Property and equipment are stated at cost less accumulated depreciation. Expenditures that materially increase values or capacities or extend useful lives of property and equipment are capitalized. Repairs and maintenance costs that do not extend the useful life or improve the related assets are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets or over the related lease terms (if shorter). The estimated useful life of each asset category is as follows: Estimated Useful Life Computer and office equipment 2-3 years Purchased software 2-3 years Furniture and fixtures 2-5 years Capitalized software development costs 3 years Leasehold improvements and other lesser of lease term or useful life (2-10 years) Certain costs incurred to develop software applications used in the cloud-based learning management system are capitalized and included in property and equipment, net on the balance sheets. Capitalizable costs consist of (1) certain external direct costs of materials and services incurred in developing or obtaining internal-use software; and (2) payroll and payroll-related costs for employees who are directly associated with and who devote time to the project. These costs generally consist of internal labor during configuration, coding and testing activities. Research and development costs incurred during the preliminary project stage, or costs incurred for data conversion activities, training, maintenance and general and administrative or overhead costs, are expensed as incurred. Costs that cannot be separated between the maintenance of, and relatively minor upgrades and enhancements to, internal-use software are also expensed as incurred. Costs incurred during the application development stage that significantly enhance and add new functionality to the cloud-based learning management system are capitalized as capitalized software development costs. Capitalization begins when: (1) the preliminary project stage is complete; (2) management with the relevant authority authorizes and commits to the funding of the software project; (3) it is probable the project will be completed; (4) the software will be used to perform the functions intended; and (5) certain functional and quality standards have been met. Acquired finite-lived intangibles are amortized on a straight-line basis over the estimated useful life of the asset, which is generally five years. When there are indicators of potential impairment, we evaluate recoverability of the carrying values of property and equipment and intangible assets by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds our estimated undiscounted future net cash flows, an impairment charge is recognized based on the amount by which the carrying value of the asset exceeds the fair value of the asset. We did not incur any impairment charges during the periods presented. |
Leases | Leases We lease our facilities under operating leases. For leases that contain rent escalation or rent concession provisions, we record rent expense for the total rent payable during the lease term on a straight-line basis over the term of the lease. We record the difference between the rent paid and the straight-line rent as a deferred rent liability in the accompanying balance sheets. |
Fair Value | Fair Value Our short-term financial instruments include accounts receivable, accounts payable and accrued liabilities and are carried in the consolidated financial statements as of December 31, 2016 and 2015 at amounts that approximate fair value due to their short-term maturity dates. |
Goodwill | Goodwill Goodwill represents the excess cost of the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not subject to amortization, but is monitored annually for impairment or more frequently if there are indicators of impairment. Management considers the following potential indicators of impairment: (1) significant underperformance relative to historical or projected future operating results; (2) significant changes in our use of acquired assets or the strategy of our overall business; (3) significant negative industry or economic trends; and (4) a significant decline in our stock price for a sustained period. We perform our annual impairment test on October 31 st . did not result in any impairment of the goodwill balance. |
Liability for Common Stock Warrants | Liability for Common Stock Warrants We account for freestanding warrants to purchase shares of our common stock that are not considered indexed to our own stock as warrant liabilities on our consolidated balance sheets. Under Accounting Standards Codification, or ASC, 815, we record the liability-classified common stock warrants issued in conjunction with our credit facility at their estimated fair value because they are free standing and the number of shares exercisable under this warrant to purchase our common stock increases if the loan balance exceeds $7,500,000 (see Note 7— Stockholders’ Equity). At the end of each reporting period, changes in the estimated fair value of the warrants to purchase shares of common stock are recorded as a change in fair value of warrant liability in the consolidated statements of operations. |
Liability for Redeemable Convertible Preferred Stock Warrants | Liability for Redeemable Convertible Preferred Stock Warrants We account for freestanding warrants to purchase shares of our contingently redeemable convertible preferred stock as warrant liability on our consolidated balance sheets. We record the redeemable convertible preferred stock warrants at their estimated fair value because these warrants may contingently obligate us to redeem the underlying redeemable convertible preferred stock at some point in the future. At the end of each reporting period, changes in the estimated fair value of the warrant liability is recorded as change in fair value of warrant liability in the consolidated statements of operations until the earlier of the exercise or expiration of the warrants, or the completion of a qualifying liquidation event including an initial public offering, at which time the redeemable convertible preferred stock issuable upon exercise of the warrants would become common stock and the related liability would be reclassified to common stock, the redeemable convertible preferred stock warrants were exercised in February 2015. In connection with the exercise of the warrant, the warrant liability was marked to market one last time as of the settlement date. The resulting warrant liability of $3,899,000 and the cash received of $250,000 were recorded as redeemable convertible preferred stock, which then converted to common stock upon our IPO. |
Revenue Recognition | Revenue Recognition We generate revenue primarily from two main sources: (1) subscription and support revenue, which is comprised of SaaS fees from customers accessing our learning management systems and from customers purchasing additional support beyond the standard support that is included in the basic SaaS fees; and (2) related professional services revenue, which is comprised of training, implementation services and other types of professional services. We provide our applications as a service and revenue is recognized when persuasive evidence of an arrangement exists, the fee is fixed or determinable, collection is reasonably assured, and delivery has occurred or services have been rendered. Because we provide our applications as a service and customers do not take possession of the software, these arrangements are accounted for as service contracts. For arrangements with multiple deliverables, we follow the guidance provided in ASC 605-25, Revenue Recognition for Multiple-Element Arrangements. In accordance with this guidance, deliverables in multiple-deliverable arrangements are accounted for as separate units of accounting if the delivered items have standalone value. If the deliverables in a multiple-deliverable arrangement do not have standalone value, the revenue associated with the deliverables is recognized ratably as a single unit of accounting over the period commencing upon delivery of the final deliverable and over the term of that deliverable. We allocate revenue to each deliverable in an arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence, or VSOE, if available, third-party evidence, or TPE, if VSOE is not available, or best estimate of the selling price, or BESP, if neither VSOE nor TPE is available. The total arrangement fee for a multiple-deliverable arrangement is allocated based on the relative VSOE, TPE, or BESP of each element, and the amount of revenue recognized is limited to the amount that is not contingent upon the delivery of future services. We determine BESP by considering our overall pricing objectives and market conditions. Significant pricing practices taken into consideration for our subscription services, which may also include support, training, and professional services, include discounting practices, the size and volume of our transactions, the customer type, price lists, our pricing strategy, and historical stand-alone sales. The determination of BESP is made through consultation with and approval by our pricing committee. As our pricing strategies evolve, we may modify our pricing in the future which could result in changes in relative selling prices. As subscription and support revenue are delivered over the entire length of the arrangement (the service period), they are recognized ratably beginning on the date our service is made available to customers through the end of the service period and all other revenue recognition criteria have been met. Implementation services include training and consulting services that generally take 30 to 90 days to complete. Implementation services have standalone value as the services are often sold separately. Implementation services are recognized upon completion. Implementation services also include nonrefundable upfront fees that do not have standalone value. As such, we defer revenue for the nonrefundable upfront fees and recognize the revenue over the longer of the contract term or estimated customer life. Training and professional services are sold with subscriptions and separately (i.e., not sold contemporaneously with the negotiation of a subscription contract) and we have determined each has standalone value. As a result, these services are recognized as revenue when the related services are delivered, which is generally within two to twelve months from the date of contract. Subscription training was introduced in 2016 and is recognized ratably in the same manner as subscription and support revenue described above. We also derive revenue from fees for separate, project-based custom application development, integrations, content services and change management consulting services. Pricing of these projects is generally either fixed fee or time and material based. We recognize revenue from these service arrangements in accordance with ASC 605. To the extent that adequate project reporting of time incurred and time to complete records exist, we recognize consulting services revenue as the services are performed under the proportionate performance method. In situations where we are unable to utilize the proportional performance method, for example due to either the lack of adequate documentation of time incurred or to be incurred, we recognize revenue based on the milestone method if individual milestones with substantive value to the customer exist. If neither of these two methods is able to be utilized, revenue recognition is deferred until the contract is completed. During the years ended December 31, 2016, 2015, and 2014 there was $383,000, $0 and $0 revenue recognized under the proportionate performance method, respectively. We recognized $184,000, $517,000, and $223,000 in revenue under the milestone method for 2016, 2015, and 2014, respectively. |
Cost of Revenue | Cost of Revenue Cost of subscription revenue consists primarily of our managed hosting provider and other third-party service providers, employee-related costs including payroll, benefits and stock-based compensation expense for our operations and customer support teams, amortization of capitalized software development costs and acquired technology, and allocated overhead costs, which we define as rent, facilities and costs related to information technology, or IT. Cost of professional services and other revenue consists primarily of personnel costs of our professional services organization, including salaries, benefits, travel, bonuses and stock-based compensation, as well as allocated overhead costs. |
Service Availability Warranty | Service Availability Warranty We warrant to our customers: (1) that commercially reasonable efforts will be made to maintain the online availability of the platform for a minimum availability in a trailing 365-day period (excluding scheduled outages, standard maintenance windows, force majeure, and outages that result from any technology issue originating from any customer or user); (2) the functionality or features of the platform may change but will not materially degrade during any paid term; and (3) that support may change but will not materially degrade during any paid term. To date, we have not experienced any significant losses under these warranties. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in sales and marketing expenses. Advertising expenses totaled $8,673,000, $6,965,000, and $3,849,000 for 2016, 2015 and 2014, respectively. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award granted and recognized as compensation expense using the straight-line method over the period in which the award is expected to vest, which is generally the period from the grant date to the end of the vesting period. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We recognize compensation expense for our 2015 Employee Stock Purchase Plan on a straight-line basis. We use the market closing price of our common stock as reported on the New York Stock Exchange for the fair value of restricted stock units (“RSUs”) granted. We use the Black-Scholes option pricing model to determine the fair value of stock options issued to our employees, as well as purchase rights issued to employees under our 2015 Employee Stock Purchase Plan, or ESPP. The Black-Scholes option pricing model is affected by the unit price and a number of assumptions, including the award’s expected life, risk-free interest rate, the expected volatility of the underlying stock and expected dividends. These assumptions are estimated as follows: • Fair Value of Our Common Stock. Prior to our IPO in November 2015, we were required to estimate the fair value of our common stock. The fair value of the common stock underlying the stock options was determined by our board of directors, which considered numerous objective and subjective factors to determine the fair value of common stock at each grant date. These factors included, but were not limited to: (1) contemporaneous valuations of common stock performed by third-party specialists; (2) the lack of marketability of our common stock; (3) developments in the business; (4) the prices paid in recent transactions involving our equity securities; and (5) the likelihood of achieving a liquidity event, such as an initial public offering or a merger or acquisition, given prevailing market conditions. During aforementioned valuations, the third-party valuation firm would engage in discussions with management, analyze historical and forecasted financial statements, and review corporate documents when performing its analysis. In addition, these valuation studies were based on a number of assumptions, including industry, general economic, market and other conditions that could reasonably be evaluated at the time of the valuation. Now that our stock is publicly traded, we use the market closing price of our common stock as reported on the New York Stock Exchange for the fair value. • Risk-Free Interest Rate. We base the risk-free interest rate used in the Black-Scholes option pricing model on the implied yield available on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options. • Expected Term. We estimate the expected term for stock options using the simplified method due to the lack of historical exercise activity for our company. The simplified method calculates the expected term as the mid-point between the vesting date and the contractual expiration date of the award. For the ESPP, we use an expected term of 0.5 years to match the offering period. • Volatility. We estimate the price volatility factor based on the historical volatilities of our comparable companies as we do not have a sufficient trading history for our common stock. To determine our comparable companies, we consider public enterprise cloud-based application providers and select those that are similar to us in size, stage of life cycle, and financial leverage. We intend to continue to apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of our own common stock share price becomes available, or unless circumstances change such that the identified companies are no longer similar to us, in which case, more suitable companies whose share prices are publicly available would be utilized in the calculation. For the ESPP, we use the trading history of our own common stock to determine expected volatility. • Dividend Yield. We have not paid and do not expect to pay dividends for the foreseeable future. |
Foreign Currency | Foreign Currency The functional currency of our foreign subsidiaries is the U.S. dollar. Monetary assets and liabilities denominated in a foreign currency are revalued into U.S. dollars at the exchange rates in effect at the balance sheet dates. Income and expense accounts are revalued on the date of the transaction using the exchange rate in effect on the transaction date. Non-monetary assets, liabilities, and equity transactions are converted at historical exchange rates in effect at the time of the transaction. Foreign currency transaction gains and losses are recorded in other income (expense), net. During 2016, 2015 and 2014, a net foreign currency transaction loss of $339,000, $176,000 and $67,000 was recorded in the consolidated statements of operations, respectively. |
Research and Development | Research and Development With the exception of capitalized software development costs, research and development costs are expensed as incurred. |
Commissions | Commissions We recognize commission expense related to subscriptions in the period in which the contract is signed. |
Risks and Uncertainties | Risks and Uncertainties We are subject to all of the risks inherent in an early stage business. These risks include, but are not limited to, a limited operating history, new and rapidly evolving markets, dependence on the development of new services, unfavorable economic and market conditions, changes in level of demand for our services, and the timing of new application introductions. If we fail to anticipate or to respond adequately to technological developments in our industry, changes in customer or supplier requirements, or changes in regulatory requirements or industry standards, or any significant delays in the development or introduction of services, our business could be harmed. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are accounted for using the asset and liability method and represent the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to be in effect when these temporary differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. At December 31, 2016 and 2015, the majority of deferred tax assets are offset by a valuation allowance. We recognize interest and penalties as a component of income tax expense. |
Recent Accounting Pronouncement | Recent Accounting Pronouncement In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment transactions. The new guidance requires companies to record excess tax benefits and tax deficiencies as income tax benefit or expense in the statement of operations when the awards vest or are settled, and eliminates the requirement to reclassify cash flows related to excess tax benefits from operating activities to financing activities on the statement of cash flows. We will adopt the standard in the three months ended March 31, 2017. Upon adoption, we will recognize the previously unrecognized excess tax benefits through a cumulative-effect adjustment to accumulated deficit. The previously unrecognized excess tax effects will be recorded as a deferred tax asset, which will be fully offset by a valuation allowance. We will apply the change in presentation to the statements of cash flows retrospectively and no longer classify the excess tax benefits from employee stock plans as a reduction from operating cash flows for all periods presented. In February 2016, the FASB issued ASU No. 2016-02, Leases, requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. Lessors will continue to classify leases as operating, direct financing or sales-type leases. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. The updated standard is effective for us beginning in the first quarter of 2019. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as noncurrent on the balance sheet. The classification change for all deferred taxes as noncurrent simplifies entities’ processes as it eliminates the need to separately identify the net current and net noncurrent deferred tax asset or liability in each jurisdiction and allocate valuation allowances. We elected to prospectively adopt the accounting standard in the beginning of our fourth quarter of 2015. Prior periods in our consolidated financial statements were not retrospectively adjusted. In April 2015, the FASB issued ASU No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. This guidance simplifies entities’ processes as it provides criteria to determine whether cloud computing arrangements contain a software license and should be account for as internal-use-software under ASC 350-40. We elected to prospectively adopt the accounting standard in the beginning of our first quarter of 2016. Prior periods in our consolidated financial statements were not retrospectively adjusted. Starting in our first quarter of 2016, i f an arrangement included a software license, as defined by this ASU, then we accounted for the software license element of the arrangement in the intangible assets, net line item of the consolidated balance sheets rather than recording the amount in property and equipment, net. Implementation costs associated with software licenses were expensed as incurred. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers: Topic 606”, as amended, (“ASU 2014-09”). The standard supersedes nearly all existing revenue recognition guidance under GAAP. The core principle of the standard is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The standard defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under existing GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation, among others. The standard also provides guidance on the recognition of costs related to obtaining customer contracts. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017. We will adopt the new standard effective January 1, 2018. The new standard permits adoption using either of two methods: (1) full retrospective application of the standard to each prior reporting period presented with the option to elect certain practical expedients as defined within the standard, or (2) modified retrospective application of the standard with the cumulative effect of initially applying the standard recognized at the date of initial application and providing certain additional disclosures as defined per the standard. We are currently considering adopting the new standard using the full retrospective method. Our ability to adopt using the full retrospective method is dependent on several factors, including the significance of the impact of the new standard to the Company’s financial results, system readiness and our ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. We are in the initial stages of our evaluation of the impact of the new standard on our accounting policies, processes, and system requirements. We have assigned internal resources in addition to the engagement of third party service providers to assist in the evaluation. Furthermore, we have made and will continue to make investments in systems to enable timely and accurate reporting under the new standard. Under the current revenue recognition guidance, we have historically concluded that nonrefundable upfront fees do not have standalone value, and accordingly, we have recognized those fees over the longer of the contract term or customer life. Under the new standard, we have preliminarily concluded that nonrefundable upfront fees are not considered a separate performance obligation. As such, the consideration related to the nonrefundable upfront fees would be allocated across the other performance obligations included in the contract. Furthermore, under the current revenue recognition guidance we limit the amount of revenue recognition for delivered elements to the amount that is not contingent on the delivery of future services. Under the new standard, the concept of contingent revenue no longer exists. Depending on the outcome of our evaluation, the timing of when revenue is recognized could change significantly for nonrefundable upfront fees and our multi-year subscription agreements. As part of our preliminary evaluation, we have also considered the impact of the standard’s requirements with respect to capitalization and amortization of incremental costs of obtaining a contract. Under our current accounting policy, incremental costs of obtaining a contract are expensed as incurred. The new standard requires the capitalization of all incremental costs that we incur to obtain a contract with a customer that would not have been incurred if the contract had not been obtained, provided we expect to recover those costs. While we continue to assess all potential impacts under the new standard, including the areas described above, and anticipate this standard could have a material impact on our consolidated financial statements, we do not know or cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements at this time. |
Description of Business and S26
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Reconciliation of the Denominator Used in the Calculation of Basic and Diluted Net Loss Per Share | A reconciliation of the denominator used in the calculation of basic and diluted net loss per share is as follows (in thousands, except per share amounts): Year Ended December 31, 2016 2015 2014 Numerator: Net loss attributable to common stockholders $ (53,568 ) $ (53,610 ) $ (41,427 ) Denominator: Weighted-average common shares outstanding—basic 27,852 8,924 5,750 Less: Weighted-average common stock subject to repurchase (14 ) (86 ) (225 ) Total weighted-average common shares outstanding—basic 27,838 8,838 5,525 Dilutive effect of share equivalents resulting from stock options, unvested restricted stock awards, common stock warrants, common stock subject to repurchase, redeemable convertible preferred stock warrants and redeemable convertible preferred stock (as converted) — — — Weighted-average common shares outstanding-diluted 27,838 8,838 5,525 Net loss per common share attributable to common stockholders, basic and diluted $ (1.92 ) $ (6.07 ) $ (7.50 ) |
Summary of Shares Excluded from Calculation of Diluted Net Loss Per Share with a Potential Dilutive Impact | The following table contains share totals with a potentially dilutive impact (in thousands): Year Ended December 31, 2016 2015 2014 Options to purchase common stock 3,106 4,101 2,994 Common stock warrants 17 103 103 Redeemable convertible preferred stock warrants — — 373 Common stock subject to repurchase — 45 135 Redeemable convertible preferred stock (as converted) — — 14,604 Unvested restricted stock awards — — 58 Restricted stock units 1,133 196 — Total 4,256 4,445 18,267 |
Summary of Estimated Useful Life of Each Asset Category | The estimated useful life of each asset category is as follows: Estimated Useful Life Computer and office equipment 2-3 years Purchased software 2-3 years Furniture and fixtures 2-5 years Capitalized software development costs 3 years Leasehold improvements and other lesser of lease term or useful life (2-10 years) |
Allowance for Doubtful Accounts | |
Summary of Allowance for Doubtful Accounts | The following is a roll-forward of our allowance for doubtful accounts (in thousands): Balance Charged to Balance at Beginning Costs or End of of Period Expenses Deductions (1) Period Allowance for Doubtful Accounts Year ended December 31, 2016 $ 225 $ 600 $ (584 ) $ 241 Year ended December 31, 2015 $ 135 $ 232 $ (142 ) $ 225 Year ended December 31, 2014 $ 53 $ 109 $ (27 ) $ 135 (1) Deductions include actual accounts written-off, net of recoveries. |
Accounts Receivable Net | |
Summary of the Largest Customers’ Outstanding Net Accounts Receivable as a Percentage of Total Outstanding Net Accounts Receivable | The following table depicts the largest customers’ outstanding net accounts receivable balance as a percentage of the total outstanding net accounts receivable balance: Year Ended December 31, 2016 2015 Customer A 14.0 % 21.0 % Customer B — 11.0 % Customer C — 11.0 % Total 14.0 % 43.0 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following (in thousands): December 31, 2016 2015 Computer and office equipment $ 3,918 $ 2,717 Purchased software 1,074 1,074 Capitalized software development costs 6,947 3,460 Furniture and fixtures 2,701 1,890 Leasehold improvements and other 9,413 8,096 24,053 17,237 Less accumulated depreciation and amortization (9,320 ) (5,505 ) Total $ 14,733 $ 11,732 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets consisted of the following (in thousands): Average December 31, Useful Life 2016 2015 Domain names 15 Months $ 1,268 $ 1,268 Tradenames and trademarks 5 Months 109 109 Non-compete agreements 0 Months 26 26 Software 30 Months 321 — Capitalized Learning Content 58 Months 400 — Accumulated amortization (1,364 ) (959 ) Total $ 760 $ 444 |
Estimated Amortization Expense | Based on the recorded intangible assets at December 31, 2016, estimated amortization expense is expected to be as follows (in thousands): Amortization Years Ending December 31, Expense 2017 $ 292 2018 191 2019 133 2020 80 2021 64 Total $ 760 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Major Security Type Assets Measured at Fair Value on Recurring Basis | The following table summarizes, by major security type, our assets that are measured at fair value on a recurring basis (in thousands). December 31, 2016 Amortized Gross Unrealized Gross Unrealized Estimated Fair Cost Gains Losses Value Corporate debt securities $ 23,907 $ — $ (12 ) $ 23,895 December 31, 2015 Amortized Gross Unrealized Gross Unrealized Estimated Fair Cost Gains Losses Value Corporate debt securities $ 325 $ — $ — $ 325 |
Schedule of Estimated Fair Value of Investments by Contractual Maturity | The estimated fair value of investments by contractual maturity is as follows (in thousands): December 31, 2016 2015 Due within one year $ 23,895 $ 325 Due after one year and through 5 years — — Due after 5 years and through 10 years — — Due after 10 years — — Total $ 23,895 $ 325 |
Geographic Data (Tables)
Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Geographic Areas Revenues From External Customers [Abstract] | |
Schedule of Revenue by Geographic Region | Revenue by geographic region, based on the physical location of the customer, is (in thousands): Year Ended December 31, 2016 2015 2014 United States $ 100,668 $ 68,704 $ 42,366 Foreign 10,212 4,489 1,986 Total revenue $ 110,880 $ 73,193 $ 44,352 Percentage of revenue generated outside of the United States 9 % 6 % 4 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders Equity Note [Abstract] | |
Summary of Common Stock Warrants Outstanding | The following table summarizes information about common stock warrants outstanding as of December 31, 2016 and 2015 (in thousands, except per share amounts): Number December 31, Warrants to Purchase Years of Expiration 2016 2015 Exercise Price Common stock 2022 — 70 $ 0.99 Common stock 2018 17 33 4.47 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Assumptions Relating to Stock Options and ESPP Purchase Rights | The following table summarizes the assumptions relating to our stock options and ESPP purchase rights used in a Black Scholes option pricing model : Year Ended December 31, 2016 2015 2014 Employee Stock Options Dividend yield None None None Volatility 65.87% 66.15%—70% 70.00%—71.18% Risk-free interest rate 1.4% 1.46%—1.84% 1.65%—1.99% Expected life (years) 6.1 5.1—6.7 5.3—6.1 Fair value of common stock $13.79 $9.195—$14.250 $2.355—$8.430 Employee Stock Purchase Plan Dividend yield None None — Volatility 46.95%—59.71% 54.22% — Risk-free interest rate 0.35%—0.60% 0.35% — Expected life (years) 0.5 0.5 — Fair value of common stock 18.43—20.05 18.99 — |
Summary of Stock-Based Compensation Expense by Award Type | stock-based compensation expense by award type Year Ended December 31, 2016 2015 2014 Options $ 4,102 $ 3,466 $ 1,233 Vesting of restricted stock awards — 61 67 Restricted stock units 4,561 134 — Employee stock purchase plan 2,011 222 — Employee sale of securities to investors — 5,353 6,898 Total stock-based compensation $ 10,674 $ 9,236 $ 8,198 |
Summary of Stock-Based Compensation Expense Recorded in Consolidated Statement of Operations | the stock-based compensation expense was recorded in our consolidated statements of operations (in thousands): Year Ended December 31, 2016 2015 2014 Subscription and support cost of revenue $ 488 $ 177 $ 258 Professional services and other cost of revenue 474 166 39 Sales and marketing 3,030 1,228 2,877 Research and development 3,862 1,403 3,971 General and administrative 2,820 6,262 1,053 Total stock-based compensation $ 10,674 $ 9,236 $ 8,198 |
Summary of Stock Option Activity | The following table summarizes the stock option activity for the year ended December 31, 2016 (in thousands, except per share amounts): Weighted- Weighted- Average Shares Average Remaining Aggregate Underlying Exercise Life Intrinsic Options Price (in years) Value Outstanding at January 1, 2016 4,101 $ 6.58 8.3 $ 58,417 Granted 232 13.79 Exercised (767 ) 3.75 Forfeited or cancelled (460 ) 11.15 Outstanding at December 31, 2016 3,106 7.14 7.5 38,558 Vested and expected to vest—December 31, 2016 3,024 7.01 7.4 37,907 Exercisable at December 31, 2016 1,816 4.99 6.9 26,431 |
Summary of Activity of Unvested Stock Options | The follow table summarizes the activity of our unvested stock options for the year ended December 31, 2016 (in thousands, except per share amounts): Weighted- Average Shares Grant Date Underlying Fair Value Options Per Share Unvested at January 1, 2016 2,460 $ 5.74 Granted 232 8.29 Vested (1,049 ) 4.67 Forfeited (446 ) 6.91 Unvested at December 31, 2016 1,197 6.74 |
Summary of Restricted Stock Units Activity | The activity for RSUs for the year ended December 31, 2016 is as follows (in thousands, except per share amounts): RSUs Outstanding Weighted- Average Grant Date Fair Shares Value Per Share Unvested and outstanding at January 1, 2016 196 $ 18.42 Granted 1,277 18.04 Vested (186 ) 16.82 Cancelled (154 ) 17.64 Unvested and outstanding at December 31, 2016 1,133 18.36 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Provision for Income Taxes | Loss before provision for income taxes was as follows: Year Ended December 31, 2016 2015 2014 (in thousands) United States $ (41,649 ) $ (43,626 ) $ (36,783 ) Foreign (11,752 ) (9,235 ) (4,587 ) Total $ (53,401 ) $ (52,861 ) $ (41,370 ) |
Components of Provision (Benefit) for Income Taxes | The components of the provision (benefit) for income taxes were as follows: Year Ended December 31, 2016 2015 2014 (in thousands) Current: Federal $ — $ — $ — State 49 16 22 Foreign 183 65 63 Total 232 81 85 Deferred: Federal 24 41 — State 3 5 — Foreign (92 ) (10 ) (28 ) Total (65 ) 36 (28 ) Provision for income taxes $ 167 $ 117 $ 57 |
Reconciliation of Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes | The following reconciles the differences between income taxes computed at the federal statutory rate of 35% and the provision for income taxes: Year Ended December 31, 2016 2015 2014 (in thousands) Expected income tax benefit at the federal statutory rate $ (18,156 ) $ (17,972 ) $ (14,066 ) State tax net of federal benefit (1,767 ) (1,703 ) (904 ) Stock-based compensation 1,101 2,921 2,782 Stock warrant liability (21 ) 222 856 Difference in foreign tax rates 1,553 1,090 1,524 Research and development credits (552 ) (397 ) (314 ) Change in valuation allowance 17,798 15,615 10,114 Other 211 341 65 Income tax provision $ 167 $ 117 $ 57 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities were as follows: Year Ended December 31, 2016 2015 2014 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 53,693 $ 37,152 $ 22,626 Research and development credits 2,027 1,372 897 Accruals and reserves 3,614 3,285 2,746 Depreciation 382 157 286 Stock-based compensation 2,310 1,349 611 Total deferred tax assets 62,026 43,315 27,166 Deferred tax liabilities: Intangible assets (73 ) (47 ) (20 ) Capitalized costs (1,774 ) (952 ) (409 ) Total deferred tax liabilities (1,847 ) (999 ) (429 ) Valuation allowance (60,122 ) (42,324 ) (26,709 ) Net deferred tax assets $ 57 $ (8 ) $ 28 |
Summary of Activity Related to Unrecognized Tax Benefits | The following summarizes activity related to unrecognized tax benefits: Year Ended December 31, 2016 2015 2014 (in thousands) Unrecognized benefit—beginning of the year $ 739 $ 483 $ 280 Gross increases (decreases)—prior period positions — — — Gross increases (decreases)—current period positions 352 256 203 Unrecognized benefit—end of period $ 1,091 $ 739 $ 483 |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | There were no transfers between Level 1 and Level 2 of the fair value measurement hierarchy during 2016 and 2015. Assets and liabilities measured at fair value on a recurring basis as of December 31, 2016, were as follows (in thousands): December 31, 2016 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 17,394 $ — $ — $ 17,394 Corporate debt securities — 23,895 — 23,895 Total assets $ 17,394 $ 23,895 $ — $ 41,289 Liabilities: Common stock warrant liability — — 25 25 Assets and liabilities measured at fair value on a recurring basis as of December 31, 2015, were as follows (in thousands): December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 69,845 $ — $ — $ 69,845 Corporate debt securities — 325 — 325 Total assets $ 69,845 $ 325 $ — $ 70,170 Liabilities: Common stock warrant liability — — 331 331 |
Summary of Changes in the Estimated Fair Value of Warrant Liabilities | The following table sets forth a summary of the changes in the estimated fair value of the warrant liabilities, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands): Redeemable Convertible Preferred Stock Common Stock Warrant Warrant Liability Liability Balance at January 1, 2015 $ 3,439 $ 138 Recognized expense 460 193 Exercise of warrant (3,899 ) — Balance at December 31, 2015 $ — $ 331 Recognized gain — (62 ) Exercise of warrant — (244 ) Balance at December 31, 2016 $ — $ 25 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2016, future minimum lease payments under non-cancellable operating leases were as follows (in thousands): Year Ended December 31: Operating Leases 2017 $ 5,728 2018 6,020 2019 7,376 2020 6,961 2021 6,757 Thereafter 35,105 Total $ 67,947 |
Selected Quarterly Financial 36
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Selected Unaudited Quarterly Consolidated Statements of Operations Data | The following tables set forth selected unaudited quarterly consolidated statements of operations data for each of the eight quarters in 2016 and 2015 (in thousands except per share data): Three Months Ended Dec. 31, 2016 Sept. 30, 2016 June 30, 2016 March 31, 2016 Dec. 31, 2015 Sept. 30, 2015 June 30, 2015 March 31, 2015 (unaudited) (in thousands) Total revenues $ 31,546 $ 30,145 $ 25,890 $ 23,299 $ 21,797 $ 20,894 $ 15,877 $ 14,625 Gross profit 22,419 21,507 18,255 15,950 14,961 14,100 10,345 9,714 Loss from operations (12,838 ) (12,267 ) (14,516 ) (13,754 ) (11,912 ) (10,103 ) (13,273 ) (16,684 ) Net loss (12,922 ) (12,317 ) (14,590 ) (13,739 ) (12,122 ) (10,212 ) (13,334 ) (17,310 ) Net loss attributable to common stockholders (12,922 ) (12,317 ) (14,590 ) (13,739 ) (12,122 ) (10,212 ) (13,966 ) (17,310 ) Net loss per common share attributable to common stockholders, basic and diluted (0.46 ) (0.44 ) (0.53 ) (0.50 ) (0.74 ) (1.60 ) (2.21 ) (2.79 ) |
Description of Business and S37
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) | Feb. 02, 2016USD ($) | Nov. 18, 2015USD ($)$ / sharesshares | Feb. 28, 2015USD ($) | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Entity incorporation date | 2008-09 | |||||
Reverse stock split | On October 28, 2015, our board of directors and on October 30, 2015, our stockholders, respectively, approved the amendment and restatement of our certificate of incorporation to effect a reverse split of our common stock and redeemable convertible preferred stock at a 1-for-1.5 ratio (the “Reverse Stock Split”). | |||||
Aggregate proceeds from issuance initial public offering | $ 72,032,000 | |||||
Number of operating segment | Segment | 1 | |||||
Finite lived intangible asset, estimated useful life | 5 years | |||||
Other Indefinite-lived Intangible Assets | $ 0 | |||||
Minimum loan balance to issuance of common stock | $ 7,500,000 | $ 7,500,000 | ||||
Proceeds from exercise of redeemable convertible preferred stock warrants | $ 250,000 | 250,000 | ||||
Services delivered minimum range | 2 months | |||||
Services delivered maximum range | 12 months | |||||
Implementation services minimum range | 30 days | |||||
Implementation services maximum range | 90 days | |||||
Minimum availability training period | 365 days | |||||
Advertising expense | $ 8,673,000,000 | 6,965,000,000 | $ 3,849,000,000 | |||
Foreign currency transaction loss | $ (339,000,000) | (176,000,000) | (67,000,000) | |||
2015 ESPP | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Employee stock purchase plan, fair value assumption, expected term | 6 months | |||||
Proportionate Performance Method | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Revenue recognized | $ 383,000 | 0 | 0 | |||
Milestone Method | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Revenue recognized | $ 184,000 | $ 517,000 | $ 223,000 | |||
Redeemable Convertible Preferred Stock | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Conversion of redeemable convertible preferred stock to common stock, Shares | shares | (14,977,000) | |||||
Warrant liability to convert to common stock | $ 3,899,000 | |||||
Common Stock | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Reverse stock split ratio | 0.006667 | |||||
Initial public offering to public | shares | 5,060,000 | |||||
Conversion of redeemable convertible preferred stock to common stock, Shares | shares | 15,652,000 | |||||
Common Stock | IPO | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Initial public offering to public | shares | 5,060,000 | |||||
Shares issued price per share | $ / shares | $ 16 | |||||
Aggregate proceeds from issuance initial public offering | $ 75,300,000 | |||||
Offering expense | $ 3,900,000 | |||||
Conversion of redeemable convertible preferred stock to common stock, Shares | shares | 15,652,382 | |||||
Common Stock | Overallotment Option | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Underwriter subscription | shares | 660,000 | |||||
Redeemable Convertible Preferred Stock | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Reverse stock split ratio | 0.006667 |
Description of Business and S38
Description of Business and Summary of Significant Accounting Policies - Summary of Reconciliation of the Denominator Used in the Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
Net loss attributable to common stockholders | $ (12,922) | $ (12,317) | $ (14,590) | $ (13,739) | $ (12,122) | $ (10,212) | $ (13,966) | $ (17,310) | $ (53,568) | $ (53,610) | $ (41,427) |
Denominator: | |||||||||||
Weighted-average common shares outstanding—basic | 27,852 | 8,924 | 5,750 | ||||||||
Less: Weighted-average common stock subject to repurchase | (14) | (86) | (225) | ||||||||
Total weighted-average common shares outstanding—basic | 27,838 | 8,838 | 5,525 | ||||||||
Weighted-average common shares outstanding-diluted | 27,838 | 8,838 | 5,525 | ||||||||
Net loss per common share attributable to common stockholders, basic and diluted | $ (0.46) | $ (0.44) | $ (0.53) | $ (0.50) | $ (0.74) | $ (1.60) | $ (2.21) | $ (2.79) | $ (1.92) | $ (6.07) | $ (7.50) |
Description of Business and S39
Description of Business and Summary of Significant Accounting Policies - Summary of Shares Excluded from Calculation of Diluted Net Loss Per Share with a Potential Dilutive Impact (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted loss per share with a potential dilutive impact | 4,256 | 4,445 | 18,267 |
Options to Purchase Common Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted loss per share with a potential dilutive impact | 3,106 | 4,101 | 2,994 |
Common Stock Warrants | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted loss per share with a potential dilutive impact | 17 | 103 | 103 |
Common Stock Subject to Repurchase | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted loss per share with a potential dilutive impact | 45 | 135 | |
Unvested Restricted Stock Awards | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted loss per share with a potential dilutive impact | 58 | ||
Restricted Stock Units | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted loss per share with a potential dilutive impact | 1,133 | 196 | |
Redeemable Convertible Preferred Stock Warrants | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted loss per share with a potential dilutive impact | 373 | ||
Redeemable Convertible Preferred Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Shares excluded from calculation of diluted loss per share with a potential dilutive impact | 14,604 |
Description of Business and S40
Description of Business and Summary of Significant Accounting Policies - Summary of the Largest Customer's Outstanding Net Accounts Receivable Balance Percentage (Details) - Accounts Receivable Net - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue [Line Items] | ||
Concentration risk, percentage | 14.00% | 43.00% |
Customer A | ||
Revenue [Line Items] | ||
Concentration risk, percentage | 14.00% | 21.00% |
Customer B | ||
Revenue [Line Items] | ||
Concentration risk, percentage | 11.00% | |
Customer C | ||
Revenue [Line Items] | ||
Concentration risk, percentage | 11.00% |
Description of Business and S41
Description of Business and Summary of Significant Accounting Policies - Summary of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Receivables [Abstract] | ||||
Allowance for doubtful accounts, beginning balance | $ 225 | $ 135 | $ 53 | |
Allowance for doubtful accounts, charged to costs or expenses | 600 | 232 | 109 | |
Allowance for doubtful accounts, deductions | [1] | (584) | (142) | (27) |
Allowance for doubtful accounts, ending balance | $ 241 | $ 225 | $ 135 | |
[1] | Deductions include actual accounts written-off, net of recoveries. |
Description of Business and S42
Description of Business and Summary of Significant Accounting Policies - Summary of Estimated Useful Life Assets Category (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Capitalized Software Development Costs | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Minimum | Computer and Office Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 2 years |
Minimum | Purchased Software | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 2 years |
Minimum | Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 2 years |
Minimum | Leasehold Improvements and Other | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 2 years |
Maximum | Computer and Office Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Maximum | Purchased Software | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Maximum | Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Maximum | Leasehold Improvements and Other | |
Property Plant And Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 24,053 | $ 17,237 |
Less accumulated depreciation and amortization | (9,320) | (5,505) |
Total | 14,733 | 11,732 |
Computer and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,918 | 2,717 |
Purchased Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 1,074 | 1,074 |
Capitalized Software Development Costs | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 6,947 | 3,460 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 2,701 | 1,890 |
Leasehold Improvements and Other | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 9,413 | $ 8,096 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Accumulated amortization for capitalized software development costs | $ 2,355,000 | $ 987,000 | |
Amortization expense for capitalized software development costs | $ 1,368,000 | $ 672,000 | $ 234,000 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 989 | $ 989 | |
Amortization of intangible assets | $ 405 | $ 309 | $ 306 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, Average Remaining Useful Life | 5 years | |
Accumulated amortization | $ (1,364) | $ (959) |
Total | $ 760 | 444 |
Domain names | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, Average Remaining Useful Life | 15 months | |
Intangible assets, gross | $ 1,268 | 1,268 |
Tradenames and trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, Average Remaining Useful Life | 5 months | |
Intangible assets, gross | $ 109 | 109 |
Non-compete agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, Average Remaining Useful Life | 0 months | |
Intangible assets, gross | $ 26 | $ 26 |
Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, Average Remaining Useful Life | 30 months | |
Intangible assets, gross | $ 321 | |
Capitalized learning content | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, Average Remaining Useful Life | 58 months | |
Intangible assets, gross | $ 400 |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite Lived Intangible Assets Net [Abstract] | ||
2,017 | $ 292 | |
2,018 | 191 | |
2,019 | 133 | |
2,020 | 80 | |
2,021 | 64 | |
Total | $ 760 | $ 444 |
Marketable Securities - Summary
Marketable Securities - Summary of Major Security Type Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 23,895 | $ 325 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 23,907 | 325 |
Gross Unrealized Losses | (12) | |
Estimated Fair Value | $ 23,895 | $ 325 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments Debt And Equity Securities [Abstract] | |||
Unrealized loss position on aggregate fair value of investments | $ 17,906,000 | ||
Unrealized loss on marketable securities | $ 0 | ||
Gross realized gains from sale or maturity of marketable securities | 0 | 0 | $ 9,000 |
Gross realized losses from sale or maturity of marketable securities | 0 | 0 | 0 |
Gross interest income on securities | 281,000 | 30,000 | 177,000 |
Accretion expense on securities | $ 42,000 | $ 13,000 | $ 148,000 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Estimated Fair Value of Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments Debt And Equity Securities [Abstract] | ||
Due within one year | $ 23,895 | $ 325 |
Amortized Cost | $ 23,895 | $ 325 |
Credit Facility - Additional In
Credit Facility - Additional Information (Details) - Revolver Borrowings - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2016 | Jun. 30, 2015 | Nov. 30, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | |
Line Of Credit Facility [Line Items] | |||||
Maximum revolver borrowing amount | $ 15,000,000 | $ 15,000,000 | $ 7,000,000 | ||
Quarterly fee payable percentage on unused portion of available borrowing | 0.25% | ||||
Line of credit facility, description | The credit facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict our ability to dispose of assets, change our business, merge with or acquire other entities, incur indebtedness, incur encumbrances, make distributions to holders of our capital stock, make investments or engage in transactions with our affiliates. The agreement also includes a financial covenant requiring the achievement of minimum bookings on a trailing three month basis, tested monthly. During the continuance of an event of default, SVB may accelerate amounts outstanding, terminate the credit facility, and foreclose on the collateral. | ||||
Increase in revolver borrowing amount | $ 25,000,000 | $ 25,000,000 | |||
Credit facility maturity date | Jun. 30, 2017 | ||||
Borrowings under the credit facility | $ 0 | $ 0 | |||
Unamortized deferred financing costs | $ 10,000 | $ 56,000 | |||
Minimum | |||||
Line Of Credit Facility [Line Items] | |||||
Variable interest rate | 1.25% | ||||
Percentage of security of capital stock in foreign subsidiaries | 65.00% | ||||
Minimum | Prime Plus | |||||
Line Of Credit Facility [Line Items] | |||||
Interest rate of borrowing decrease | 0.50% | ||||
Maximum | |||||
Line Of Credit Facility [Line Items] | |||||
Variable interest rate | 3.75% | ||||
Maximum | Prime Plus | |||||
Line Of Credit Facility [Line Items] | |||||
Interest rate of borrowing decrease | 1.75% |
Geographic Data - Additional In
Geographic Data - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2016Segment | |
Geographic Areas Revenues From External Customers [Abstract] | |
Number of operating segment | 1 |
Geographic Data - Schedule of R
Geographic Data - Schedule of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Total revenue | $ 31,546 | $ 30,145 | $ 25,890 | $ 23,299 | $ 21,797 | $ 20,894 | $ 15,877 | $ 14,625 | $ 110,880 | $ 73,193 | $ 44,352 |
United States | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Total revenue | 100,668 | 68,704 | 42,366 | ||||||||
Foreign | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Total revenue | $ 10,212 | $ 4,489 | $ 1,986 | ||||||||
Sales Revenue | Customer Concentration Risk | Foreign | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Percentage of revenue generated outside of the United States | 9.00% | 6.00% | 4.00% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | Feb. 02, 2016USD ($)shares | Nov. 18, 2015shares | Apr. 30, 2014USD ($)$ / sharesshares | Nov. 30, 2012$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015$ / sharesshares |
Class Of Stock [Line Items] | ||||||
Common stock, authorized | 200,000,000 | 200,000,000 | ||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Common stock, Issued | 28,553,808 | 28,368,382 | ||||
Retirement of treasury stock, Shares | 0 | 1,128,472 | ||||
Common stock voting rights | Each share of common stock has the right to one vote on all matters submitted to a vote of stockholders. | |||||
Dividends paid or declared | $ | $ 0 | |||||
Warrants issued to purchase common stock | 78,406 | 70,000 | ||||
Warrant exercise term | 10 years | |||||
Warrant exercise price | $ / shares | $ 4.47 | $ 0.99 | ||||
Fair value of warrant on the date of grant recorded as deferred financing costs | $ | $ 58,000 | |||||
Warrants exercised | 86,666 | |||||
Shares withheld to cover warrant exercise costs | 8,260 | |||||
Adjustments to additional paid in capital for warrant liability reversed | $ | $ 244,000 | |||||
Remaining contingent common stock warrant liability | 16,666 | |||||
Minimum loan balance to issuance of common stock | $ | $ 7,500,000 | 7,500,000 | ||||
Estimated common stock warrant liability | $ | $ 25,000 | |||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||||
Preferred stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, shares issued | 0 | 0 | ||||
Preferred stock, shares outstanding | 0 | 0 | ||||
Redeemable Convertible Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, shares outstanding | 0 | 0 | ||||
Common stock issued upon conversion of preferred stock | 15,652,382 | |||||
Preferred stock, conversion basis | one-to-one | |||||
Series E Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, conversion ratio | 1.3701 | |||||
Common Stock Warrant Without Contingency | ||||||
Class Of Stock [Line Items] | ||||||
Warrants issued to purchase common stock | 16,666 | |||||
Contingent Common Stock Warrant | ||||||
Class Of Stock [Line Items] | ||||||
Estimated exercisable percentage | 10.00% | |||||
Warrant expiration date | Nov. 12, 2018 | |||||
Maximum | ||||||
Class Of Stock [Line Items] | ||||||
Warrants issued to purchase common stock | 33,332 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Common Stock Warrants Outstanding (Details) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2016 | Feb. 02, 2016 | Dec. 31, 2015 | Apr. 30, 2014 | Nov. 30, 2012 | |
Class Of Warrant Or Right [Line Items] | |||||
Number of Shares Underlying Common Stock Warrants | 78,406 | 70,000 | |||
Exercise Price | $ 4.47 | $ 0.99 | |||
Warrants to Purchase Common Stock Expiration Year 2022 | |||||
Class Of Warrant Or Right [Line Items] | |||||
Years of Expiration | 2,022 | ||||
Number of Shares Underlying Common Stock Warrants | 70,000 | ||||
Exercise Price | $ 0.99 | ||||
Warrants to Purchase Common Stock Expiration Year 2018 | |||||
Class Of Warrant Or Right [Line Items] | |||||
Years of Expiration | 2,018 | ||||
Number of Shares Underlying Common Stock Warrants | 17,000 | 33,000 | |||
Exercise Price | $ 4.47 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options outstanding | 3,106,000 | 4,101,000 | ||
Common stock, authorized | 200,000,000 | 200,000,000 | ||
Stock options contractual life | 10 years | |||
Aggregate purchase consideration | $ 14,109,000 | $ 12,797,000,000 | ||
Stock-based compensation expense | $ 10,674,000 | 9,236,000 | $ 8,198,000 | |
Non cash deemed dividend | $ 632,000 | |||
Weighted-average grant-date fair value option granted | $ 8.29 | $ 7.26 | $ 3.75 | |
Total intrinsic value of options exercised | $ 12,214,000 | $ 2,328,000 | $ 10,942,000 | |
Total fair value of options vested | 4,877,000 | 2,366,000 | $ 735,000 | |
Unrecognized stock-based compensation costs related to non-vested awards | $ 5,342,000 | $ 9,721,000 | ||
Weighted-average period for unrecognized compensation cost expected to be recognized | 2 years 3 months 18 days | 3 years | ||
Number of shares expected to vest | 3,024,000 | |||
Aggregate intrinsic value of shares expected to vest | $ 37,907,000 | |||
Current and Former Employees | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock price per share under ESPP | $ 19.72 | |||
Former Employee | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock price per share under ESPP | $ 19.72 | |||
Purchase of stock | 121,528 | |||
Current Employee and Third Party Investor | Series A Redeemable Convertible Preferred Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock price per share under ESPP | $ 21.93 | |||
Purchase of stock | 534,251 | |||
Common Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock issued under ESPP | 1,051,000 | |||
Common Stock | Current and Former Employees | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Purchase of stock | 648,774 | |||
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 4,561,000 | $ 134,000 | ||
Unrecognized stock-based compensation costs related to non-vested awards | $ 14,936,000 | |||
Weighted-average period for unrecognized compensation cost expected to be recognized | 3 years 2 months 12 days | |||
Number of shares expected to vest | 1,606,000 | |||
Aggregate intrinsic value of shares expected to vest | $ 31,402,000 | |||
Total fair value of shares vested | $ 3,743,000 | 0 | $ 0 | |
Restricted Stock Units | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Restricted Stock Units | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Employee Sale of Securities to Investors | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 5,353,000 | $ 6,898,000 | ||
2010 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares available for future grants | 0 | |||
Options outstanding | 2,874,583 | |||
Early exercises of stock options | $ 0 | $ 26,000,000 | ||
Unvested shares subject to repurchase | 0 | 44,541 | ||
2015 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options outstanding | 232,155 | |||
Common stock, authorized | 3,225,795 | |||
Percentage of outstanding stock | 4.50% | |||
2015 Equity Incentive Plan | Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares available for future grants | 1,676,503 | |||
Shares outstanding net of forfeitures | 1,132,768 | |||
ESPP | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of outstanding stock | 1.00% | |||
Common stock reserved for future issuance | 321,140 | 333,333 | ||
Shares authorized ESPP | 605,732 | |||
Percentage of discount through payroll deductions to eligible employees to purchase common stock | 15.00% | |||
Initial offering expiration period | 27 months | |||
Percentage stock purchase price per share | 85.00% | |||
Common stock issued under ESPP | 284,592 | |||
Stock price per share under ESPP | $ 14.53 | |||
Cash proceeds from issuance of common stock under ESPP | $ 4,136,000 | |||
Unrecognized stock-based compensation costs | $ 830,000 | $ 919,000 | ||
Weighted average date for unrecognized compensation cost to expected to be recognized | May 31, 2017 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Assumptions Relating to Stock Options and ESPP Purchase Rights (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 65.87% | ||
Volatility, minimum | 66.15% | 70.00% | |
Volatility, maximum | 70.00% | 71.18% | |
Risk-free interest rate | 1.40% | ||
Risk-free interest rate, minimum | 1.46% | 1.65% | |
Risk-free interest rate, maximum | 1.84% | 1.99% | |
Expected life (years) | 6 years 1 month 6 days | ||
Fair value of common stock | $ 13.79 | ||
Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | |
Volatility | 54.22% | ||
Volatility, minimum | 46.95% | ||
Volatility, maximum | 59.71% | ||
Risk-free interest rate | 0.35% | ||
Risk-free interest rate, minimum | 0.35% | ||
Risk-free interest rate, maximum | 0.60% | ||
Expected life (years) | 6 months | 6 months | |
Fair value of common stock | $ 18.99 | ||
Minimum | Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected life (years) | 5 years 1 month 6 days | 5 years 3 months 18 days | |
Fair value of common stock | $ 9.195 | $ 2.355 | |
Minimum | Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value of common stock | $ 18.43 | ||
Maximum | Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected life (years) | 6 years 8 months 12 days | 6 years 1 month 6 days | |
Fair value of common stock | $ 14.250 | $ 8.430 | |
Maximum | Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value of common stock | $ 20.05 |
Stock-Based Compensation - Su58
Stock-Based Compensation - Summary of Stock-Based Compensation Expense by Award Type (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | $ 10,674,000 | $ 9,236,000 | $ 8,198,000 |
Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | 4,102,000 | 3,466,000 | 1,233,000 |
Unvested Restricted Stock Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | 61,000 | 67,000 | |
Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | 4,561,000 | 134,000 | |
Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | $ 2,011,000 | 222,000 | |
Employee Sale of Securities to Investors | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | $ 5,353,000 | $ 6,898,000 |
Stock-Based Compensation - Su59
Stock-Based Compensation - Summary of Stock-Based Compensation Expense Recorded in Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 10,674 | $ 9,236 | $ 8,198 |
Subscription and Support Cost of Revenue | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 488 | 177 | 258 |
Professional Services and Other Cost of Revenue | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 474 | 166 | 39 |
Sales and Marketing | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 3,030 | 1,228 | 2,877 |
Research and Development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 3,862 | 1,403 | 3,971 |
General and Administrative | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 2,820 | $ 6,262 | $ 1,053 |
Stock-Based Compensation - Su60
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Shares Underlying Options, Outstanding, Beginning Balance | 4,101 | |
Shares Underlying Options, Granted | 232 | |
Shares Underlying Options, Exercised | (767) | |
Shares Underlying Options, Forfeited or Cancelled | (460) | |
Shares Underlying Options, Outstanding, Ending Balance | 3,106 | 4,101 |
Shares Underlying Options, Vested and Expected to Vest | 3,024 | |
Shares Underlying Options, Exercisable | 1,816 | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ 6.58 | |
Weighted-Average Exercise Price, Granted | 13.79 | |
Weighted-Average Exercise Price, Exercised | 3.75 | |
Weighted-Average Exercise Price, Forfeited or Cancelled | 11.15 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance | 7.14 | $ 6.58 |
Weighted-Average Exercise Price, Vested and Expected to Vest | 7.01 | |
Weighted-Average Exercise Price, Exercisable | $ 4.99 | |
Weighted-Average Remaining Life, Outstanding | 7 years 6 months | 8 years 3 months 18 days |
Weighted-Average Remaining Life, Vested and Expected to Vest | 7 years 4 months 24 days | |
Weighted-Average Remaining Life, Exercisable | 6 years 10 months 24 days | |
Aggregate Intrinsic Value, Outstanding | $ 38,558 | $ 58,417 |
Aggregate Intrinsic Value, Vested and Expected to Vest | 37,907 | |
Aggregate Intrinsic Value, Exercisable | $ 26,431 |
Stock-Based Compensation - Su61
Stock-Based Compensation - Summary of Activity of Unvested Stock Options (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shares Underlying Options, Unvested, Beginning Balance | shares | 2,460 |
Shares Underlying Options, Granted | shares | 232 |
Shares Underlying Options, Vested | shares | (1,049) |
Shares Underlying Options, Forfeited | shares | (446) |
Shares Underlying Options, Unvested, Ending Balance | shares | 1,197 |
Weighted-Average Grant Date Fair Value Per Share, Unvested, Beginning Balance | $ / shares | $ 5.74 |
Weighted-Average Grant Date Fair Value Per Share, Granted | $ / shares | 8.29 |
Weighted-Average Grant Date Fair Value Per Share, Vested | $ / shares | 4.67 |
Weighted-Average Grant Date Fair Value Per Share, Forfeited | $ / shares | 6.91 |
Weighted-Average Grant Date Fair Value Per Share, Unvested, Ending Balance | $ / shares | $ 6.74 |
Stock-Based Compensation - Su62
Stock-Based Compensation - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Units shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares, Unvested and Outstanding, Beginning Balance | shares | 196 |
Shares, Granted | shares | 1,277 |
Shares, Vested | shares | (186) |
Shares, Cancelled | shares | (154) |
Shares, Unvested and Outstanding, Ending Balance | shares | 1,133 |
Weighted-Average Grant Date Fair Value Per Share, Unvested and Outstanding, Beginning Balance | $ / shares | $ 18.42 |
Weighted-Average Grant Date Fair Value Per Share, Granted | $ / shares | 18.04 |
Weighted-Average Grant Date Fair Value Per Share, Vested | $ / shares | 16.82 |
Weighted-Average Grant Date Fair Value Per Share, Cancelled | $ / shares | 17.64 |
Weighted-Average Grant Date Fair Value Per Share, Unvested and Outstanding, Ending Balance | $ / shares | $ 18.36 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (41,649) | $ (43,626) | $ (36,783) |
Foreign | (11,752) | (9,235) | (4,587) |
Loss before income taxes | $ (53,401) | $ (52,861) | $ (41,370) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
State | $ 49 | $ 16 | $ 22 |
Foreign | 183 | 65 | 63 |
Total | 232 | 81 | 85 |
Deferred: | |||
Federal | 24 | 41 | |
State | 3 | 5 | |
Foreign | (92) | (10) | (28) |
Total | (65) | 36 | (28) |
Provision for income taxes | $ 167 | $ 117 | $ 57 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 18, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [LineItems] | ||||
Federal statutory income tax rate | 35.00% | |||
Operating loss carryforwards expiration beginning year | 2,018 | |||
Excess tax benefits for stock-based compensation carryforwards | $ 3,040,000 | $ 872,000 | ||
Accumulated losses evaluation period | 3 years | |||
Increase in valuation allowance | $ 17,798,000 | $ 15,615,000 | ||
Federal research credit provisions expired year | 2,015 | |||
Federal research credit | $ 610,000 | |||
Interest or penalties recognized | $ 0 | |||
Minimum | ||||
Income Taxes [LineItems] | ||||
Uncertain tax positions percentage | 50.00% | |||
Federal, State and Foreign | ||||
Income Taxes [LineItems] | ||||
Net operating loss carryforwards | $ 53,693,000 | |||
Operating loss carryforwards expiration beginning year | 2,018 | |||
Federal and State | ||||
Income Taxes [LineItems] | ||||
Net operating loss carryforwards | $ 7,869,000 | |||
Federal and State | Research And Development Tax Credit Carryforward | ||||
Income Taxes [LineItems] | ||||
Tax credit carryforwards | $ 3,395,000 | |||
Tax credit carryforward expiration beginning year | 2,023 | |||
Federal | ||||
Income Taxes [LineItems] | ||||
Net operating loss carryforwards | $ 127,438,000 | $ 91,226,000 | ||
Operating loss carryforwards, terms of expiration | expire at various dates through 2034 | |||
Federal | Research And Development Tax Credit Carryforward | ||||
Income Taxes [LineItems] | ||||
Tax credit carryforwards | $ 2,580,000 | |||
Tax credit carryforwards, terms of expiration | expire at various dates through 2034 | |||
State | Research And Investment Tax Credit Carryforward | ||||
Income Taxes [LineItems] | ||||
Tax credit carryforwards | $ 815,000 | |||
Tax credit carryforwards, terms of expiration | expire at various dates through 2028 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax benefit at the federal statutory rate | $ (18,156) | $ (17,972) | $ (14,066) |
State tax net of federal benefit | (1,767) | (1,703) | (904) |
Stock-based compensation | 1,101 | 2,921 | 2,782 |
Stock warrant liability | (21) | 222 | 856 |
Difference in foreign tax rates | 1,553 | 1,090 | 1,524 |
Research and development credits | (552) | (397) | (314) |
Change in valuation allowance | 17,798 | 15,615 | 10,114 |
Other | 211 | 341 | 65 |
Provision for income taxes | $ 167 | $ 117 | $ 57 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 53,693 | $ 37,152 | $ 22,626 |
Research and development credits | 2,027 | 1,372 | 897 |
Accruals and reserves | 3,614 | 3,285 | 2,746 |
Depreciation | 382 | 157 | 286 |
Stock-based compensation | 2,310 | 1,349 | 611 |
Total deferred tax assets | 62,026 | 43,315 | 27,166 |
Deferred tax liabilities: | |||
Intangible assets | (73) | (47) | (20) |
Capitalized costs | (1,774) | (952) | (409) |
Total deferred tax liabilities | (1,847) | (999) | (429) |
Valuation allowance | (60,122) | (42,324) | (26,709) |
Net deferred tax assets | $ 57 | $ 28 | |
Net deferred tax liabilities | $ (8) |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized benefit—beginning of the year | $ 739 | $ 483 | $ 280 |
Gross increases (decreases)—current period positions | 352 | 256 | 203 |
Unrecognized benefit—end of period | $ 1,091 | $ 739 | $ 483 |
Fair Value of Financial Instr69
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Transfers between Level 1 and Level 2 of the fair value measurement | $ 0 | $ 0 |
Fair Value of Financial Instr70
Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | $ 41,289 | $ 70,170 |
Common stock warrant liability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total liabilities | 25 | 331 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 17,394 | 69,845 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 23,895 | 325 |
Level 3 | Common stock warrant liability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total liabilities | 25 | 331 |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 17,394 | 69,845 |
Money market funds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 17,394 | 69,845 |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | 23,895 | 325 |
Corporate Debt Securities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets | $ 23,895 | $ 325 |
Fair Value of Financial Instr71
Fair Value of Financial Instruments - Summary of Changes in the Estimated Fair Value of Warrant Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Redeemable Convertible Preferred Stock Warrant Liability | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $ 3,439 | |
Recognized expense or gain | 460 | |
Exercise of warrant | (3,899) | |
Common stock warrant liability | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $ 331 | 138 |
Recognized expense or gain | (62) | 193 |
Exercise of warrant | (244) | |
Ending Balance | $ 25 | $ 331 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2016USD ($)FloorLease | Sep. 30, 2016 | Aug. 31, 2015USD ($) | Jun. 30, 2015 | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2015 | |
Commitments And Contingencies [Line Items] | ||||||||||
Operating lease term | 12 years | |||||||||
Lease incentive allowance | $ 8,088,000 | |||||||||
Allowance for leasehold improvements | 5,629,000 | |||||||||
Rent abatement amount | $ 2,459,000 | |||||||||
Rent abatement period | 13 months | |||||||||
Annual rent escalation percentage | 3.00% | |||||||||
Rent expense under operating leases | $ 4,680,000 | $ 4,097,000 | $ 3,317,000 | |||||||
London | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Operating lease term | 5 years | |||||||||
Rent abatement period | 8 months | |||||||||
Annual rent escalation percentage | 0.00% | |||||||||
Operating lease base rent abatement percentage | 100.00% | |||||||||
Sydney | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Operating lease term | 5 years | |||||||||
Tenant improvement allowance | $ 169,000 | |||||||||
Sao Paulo | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Operating lease term | 3 years | |||||||||
Rent abatement period | 4 months | |||||||||
Annual rent escalation percentage | 5.00% | |||||||||
Operating lease base rent abatement percentage | 100.00% | |||||||||
Pleasant Grove, Utah | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Number of lease agreements | Lease | 2 | |||||||||
Research and Development facility | Chicago, Illinois | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Operating lease term | 7 years 6 months | |||||||||
Allowance for leasehold improvements | $ 494,000 | $ 494,000 | ||||||||
Rent abatement amount | $ 303,000 | |||||||||
Rent abatement period | 24 months | |||||||||
Annual rent escalation percentage | 2.50% | 2.50% | ||||||||
Monthly lease rent expense abatement percentage | 50.00% | 50.00% | ||||||||
Short-Term Lease | Pleasant Grove, Utah | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Lease commencement date | Feb. 15, 2017 | |||||||||
Lease expiration date | Feb. 1, 2018 | |||||||||
Total rent payments due upon occupancy of short term space | $ 148,906 | |||||||||
Long-Term Lease | Pleasant Grove, Utah | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Operating lease term | 11 years | |||||||||
Annual rent escalation percentage | 2.50% | |||||||||
Operating lease renewal term | 5 years | |||||||||
Number of lease floors | Floor | 2 | |||||||||
Description of operating leases arrangements | The long-term lease includes two floors with occupancy of the second floor delayed until year two of the lease. | |||||||||
Rent payments per floor due in first 3.5 years | $ 803,000 | |||||||||
Rent payments per floor due after 3.5 years | $ 1,045,000 |
Commitment and Contingencies -
Commitment and Contingencies - Future Minimum Lease Payments under Non-cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 5,728 |
2,018 | 6,020 |
2,019 | 7,376 |
2,020 | 6,961 |
2,021 | 6,757 |
Thereafter | 35,105 |
Total | $ 67,947 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employers matching contribution, percentage | 50.00% | ||
Maximum annual contributions per employee | $ 1,000 | ||
Participants matching contribution vesting period | 4 years | ||
Participants matching contribution cliff vest period | 1 year | ||
Cost recognized under 401(k) plan | $ 619,000 | $ 468,000 | $ 296,000 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Payments due to related parties | $ 0 | $ 10,000 | |
Board of Directors | |||
Related Party Transaction [Line Items] | |||
Consulting services fee paid to related parties | $ 20,000 | $ 40,000 | $ 40,000 |
Selected Quarterly Financial 76
Selected Quarterly Financial Data (unaudited) - Summary of Selected Unaudited Quarterly Consolidated Statements of Operations Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 31,546 | $ 30,145 | $ 25,890 | $ 23,299 | $ 21,797 | $ 20,894 | $ 15,877 | $ 14,625 | $ 110,880 | $ 73,193 | $ 44,352 |
Gross profit | 22,419 | 21,507 | 18,255 | 15,950 | 14,961 | 14,100 | 10,345 | 9,714 | 78,131 | 49,120 | 29,239 |
Loss from operations | (12,838) | (12,267) | (14,516) | (13,754) | (11,912) | (10,103) | (13,273) | (16,684) | (53,375) | (51,972) | (38,709) |
Net loss | (12,922) | (12,317) | (14,590) | (13,739) | (12,122) | (10,212) | (13,334) | (17,310) | (53,568) | (52,978) | (41,427) |
Net loss attributable to common stockholders | $ (12,922) | $ (12,317) | $ (14,590) | $ (13,739) | $ (12,122) | $ (10,212) | $ (13,966) | $ (17,310) | $ (53,568) | $ (53,610) | $ (41,427) |
Net loss per common share attributable to common stockholders, basic and diluted | $ (0.46) | $ (0.44) | $ (0.53) | $ (0.50) | $ (0.74) | $ (1.60) | $ (2.21) | $ (2.79) | $ (1.92) | $ (6.07) | $ (7.50) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) | Feb. 10, 2017 | Jan. 31, 2017 | Jan. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | |||||
Option to purchase number of shares | 3,106,000 | 4,101,000 | |||
Weighted-average period for unrecognized compensation cost expected to be recognized | 2 years 3 months 18 days | 3 years | |||
2015 Equity Incentive Plan | |||||
Subsequent Event [Line Items] | |||||
Option to purchase number of shares | 232,155 | ||||
Increase in share reserve under the plan | 1,284,921 | ||||
2015 ESPP | |||||
Subsequent Event [Line Items] | |||||
Unrecognized stock-based compensation costs | $ 830,000 | $ 919,000 | |||
Increase in share reserve under the plan | 285,538 | ||||
Common Stock | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Option to purchase number of shares | 19,245 | 166,005 | |||
Restricted Stock Units | |||||
Subsequent Event [Line Items] | |||||
Shares granted | 1,277,000 | ||||
Weighted-average period for unrecognized compensation cost expected to be recognized | 3 years 2 months 12 days | ||||
Restricted Stock Units | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Shares granted | 12,048 | 149,571 | |||
Unrecognized stock-based compensation costs | $ 529,000 | $ 5,400,000 | |||
Weighted-average period for unrecognized compensation cost expected to be recognized | 4 years | 4 years |