Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 001-33368 | |
Entity Registrant Name | Glu Mobile Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 91-2143667 | |
Entity Address, Address Line One | 875 Howard Street, Suite 100 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94103 | |
City Area Code | 415 | |
Local Phone Number | 800-6100 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | GLUU | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001366246 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 145,785,951 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 102,445 | $ 97,834 |
Accounts receivable, net | 44,797 | 27,325 |
Prepaid royalties | 14,064 | 8,520 |
Deferred royalties | 5,477 | 4,410 |
Deferred platform commission fees | 30,585 | 25,862 |
Restricted cash | 110 | |
Prepaid expenses and other assets | 6,331 | 6,940 |
Total current assets | 203,699 | 171,001 |
Property and equipment, net | 13,292 | 13,888 |
Operating lease right of use assets | 36,311 | |
Long-term prepaid royalties | 28,492 | 1,667 |
Other long-term assets | 4,297 | 2,505 |
Intangible assets, net | 5,797 | 9,145 |
Goodwill | 116,227 | 116,227 |
Total assets | 408,115 | 314,433 |
Current liabilities: | ||
Accounts payable | 19,382 | 10,480 |
Accrued liabilities | 859 | 1,384 |
Accrued compensation | 7,677 | 17,896 |
Accrued royalties | 21,024 | 14,139 |
Accrued restructuring | 294 | |
Short-term operating lease liabilities | 3,672 | |
Deferred revenue | 102,116 | 85,736 |
Total current liabilities | 154,730 | 129,929 |
Long-term accrued royalties | 28,488 | 1,649 |
Long-term operating lease liabilities | 38,210 | |
Other long-term liabilities | 357 | 5,542 |
Total liabilities | 221,785 | 137,120 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 5,000 shares authorized at September 30, 2019 and December 31, 2018; no shares issued and outstanding at September 30, 2019 and December 31, 2018 | ||
Common stock, $0.0001 par value; 250,000 shares authorized at September 30, 2019 and December 31, 2018; 146,739 and 143,870 shares issued and outstanding at September 30, 2019 and December 31, 2018 | 15 | 14 |
Additional paid-in capital | 628,709 | 617,781 |
Accumulated other comprehensive income | 8 | 1 |
Accumulated deficit | (442,402) | (440,483) |
Total stockholders' equity | 186,330 | 177,313 |
Total liabilities and stockholders' equity | $ 408,115 | $ 314,433 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 146,739 | 143,870 |
Common stock, shares outstanding | 146,739 | 143,870 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Revenue | $ 107,077 | $ 99,285 | $ 298,502 | $ 270,921 |
Cost of revenue: | ||||
Platform commissions, royalties and other | 36,758 | 34,384 | 102,377 | 95,937 |
Impairment of prepaid royalties and minimum guarantees | 457 | 99 | ||
Impairment and amortization of intangible assets | 1,040 | 4,167 | 3,348 | 7,102 |
Total cost of revenue | 37,798 | 38,551 | 106,182 | 103,138 |
Gross profit | 69,279 | 60,734 | 192,320 | 167,783 |
Operating expenses: | ||||
Research and development | 22,968 | 23,839 | 69,250 | 69,381 |
Sales and marketing | 46,140 | 28,874 | 109,285 | 85,425 |
General and administrative | 5,879 | 8,095 | 17,465 | 23,593 |
Restructuring charge | 0 | 160 | 0 | 240 |
Total operating expenses | 74,987 | 60,968 | 196,000 | 178,639 |
Loss from operations | (5,708) | (234) | (3,680) | (10,856) |
Interest and other income/(expense), net | 271 | 96 | 1,591 | (521) |
Loss before income taxes | (5,437) | (138) | (2,089) | (11,377) |
Income tax benefit/(provision) | 348 | (118) | 170 | (500) |
Net loss | $ (5,089) | $ (256) | $ (1,919) | $ (11,877) |
Net loss per common share - basic and diluted | $ (0.03) | $ 0 | $ (0.01) | $ (0.08) |
Weighted average common shares outstanding - basic and diluted | ||||
Weighted average common shares outstanding - basic and diluted | 146,210 | 142,378 | 145,381 | 140,685 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net loss | $ (5,089) | $ (256) | $ (1,919) | $ (11,877) |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustments | 22 | (16) | 7 | 5 |
Other comprehensive income/(loss) | 22 | (16) | 7 | 5 |
Comprehensive loss | $ (5,067) | $ (272) | $ (1,912) | $ (11,872) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands | Common stock and additional paid-in capital | Accumulated Deficit | Accumulated other comprehensive income/(loss) | Common stock | Total |
Beginning balance at Dec. 31, 2017 | $ 589,976 | $ (436,110) | $ (6) | ||
Issuance of common stock upon exercise of stock options | 5,772 | ||||
Issuance of common stock under Employee Stock Purchase Plan | 2,356 | ||||
Taxes paid related to net share settlement of equity awards | (5,613) | ||||
Stock-based compensation expense | 17,530 | ||||
Non-cash warrant expense | 1,046 | ||||
Net loss | (11,877) | $ (11,877) | |||
Other comprehensive income/(loss) | 5 | 5 | |||
Ending balance at Sep. 30, 2018 | 611,067 | (439,161) | (1) | 171,905 | |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2017 | 138,745 | ||||
Common stock issued | 4,397 | ||||
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2018 | 143,142 | ||||
Beginning balance at Jun. 30, 2018 | 603,262 | (438,905) | 15 | ||
Issuance of common stock upon exercise of stock options | 2,509 | ||||
Issuance of common stock under Employee Stock Purchase Plan | 1,261 | ||||
Taxes paid related to net share settlement of equity awards | (1,844) | ||||
Stock-based compensation expense | 5,879 | ||||
Net loss | (256) | (256) | |||
Other comprehensive income/(loss) | (16) | (16) | |||
Ending balance at Sep. 30, 2018 | 611,067 | (439,161) | (1) | 171,905 | |
Common Stock, Shares, Outstanding, Beginning Balance at Jun. 30, 2018 | 141,554 | ||||
Common stock issued | 1,588 | ||||
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2018 | 143,142 | ||||
Cumulative effect adjustment from adoption of ASU 2014-09 | 8,826 | ||||
Beginning balance at Dec. 31, 2018 | 617,795 | (440,483) | 1 | 177,313 | |
Issuance of common stock upon exercise of stock options | 2,232 | ||||
Issuance of common stock under Employee Stock Purchase Plan | 3,412 | ||||
Taxes paid related to net share settlement of equity awards | (7,637) | ||||
Stock-based compensation expense | 12,922 | ||||
Net loss | (1,919) | (1,919) | |||
Other comprehensive income/(loss) | 7 | 7 | |||
Ending balance at Sep. 30, 2019 | 628,724 | (442,402) | 8 | $ 186,330 | |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2018 | 143,870 | 143,870 | |||
Common stock issued | 2,869 | ||||
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2019 | 146,739 | 146,739 | |||
Beginning balance at Jun. 30, 2019 | 623,667 | (437,313) | (14) | ||
Issuance of common stock upon exercise of stock options | 450 | ||||
Issuance of common stock under Employee Stock Purchase Plan | 1,747 | ||||
Taxes paid related to net share settlement of equity awards | (1,220) | ||||
Stock-based compensation expense | 4,080 | ||||
Net loss | (5,089) | $ (5,089) | |||
Other comprehensive income/(loss) | 22 | 22 | |||
Ending balance at Sep. 30, 2019 | $ 628,724 | $ (442,402) | $ 8 | $ 186,330 | |
Common Stock, Shares, Outstanding, Beginning Balance at Jun. 30, 2019 | 145,784 | ||||
Common stock issued | 955 | ||||
Common Stock, Shares, Outstanding, Ending Balance at Sep. 30, 2019 | 146,739 | 146,739 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (1,919) | $ (11,877) |
Adjustments to reconcile net loss to net cash generated from operating activities: | ||
Depreciation | 3,153 | 2,887 |
Impairment and amortization of intangible assets | 3,348 | 7,102 |
Stock-based compensation | 12,922 | 17,530 |
Warrant expense | 1,046 | |
Other non-cash adjustments | 214 | 996 |
Impairment of prepaid royalties and minimum guarantees | 457 | 99 |
Non-cash lease expense | 2,335 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (17,528) | (3,598) |
Prepaid royalties | 184 | (859) |
Deferred royalties | (1,067) | (713) |
Deferred platform commission fees | (4,723) | (4,657) |
Prepaid expenses and other assets | (1,168) | 65 |
Accounts payable, accrued restructuring, and other accrued liabilities | 9,387 | (3,047) |
Accrued compensation | (10,219) | (7,414) |
Accrued royalties | 714 | 380 |
Deferred revenue | 16,380 | 15,414 |
Other long-term liabilities | (23) | 55 |
Operating lease liabilities | (2,202) | |
Net cash generated from operating activities | 10,245 | 13,409 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (3,445) | (1,912) |
Proceeds from divestiture of Moscow studio | 2,726 | |
Other investing activities | (155) | |
Net cash (used in)/generated from investing activities | (3,600) | 814 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options and purchases under the ESPP | 5,644 | 8,128 |
Taxes paid related to net share settlement of equity awards | (7,637) | (5,613) |
Net cash (used in)/generated from financing activities | (1,993) | 2,515 |
Effect of exchange rate changes on cash | (151) | (213) |
Net increase in cash, cash equivalents and restricted cash | 4,501 | 16,525 |
Cash, cash equivalents and restricted cash at beginning of period | 97,944 | 64,366 |
Cash, cash equivalents and restricted cash at end of period | $ 102,445 | $ 80,891 |
The Company, Basis of Presentat
The Company, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
The Company, Basis of Presentation and Summary of Significant Accounting Policies | |
The Company, Basis of Presentation and Summary of Significant Accounting Policies | Note 1 — The Company, Basis of Presentation and Summary of Significant Accounting Policies Glu Mobile Inc. (the “Company” or “Glu”) was incorporated in the state of Nevada in May 2001 and reincorporated in the state of Delaware in March 2007. The Company develops, publishes, and markets a portfolio of games designed for users of smartphones and tablet devices who download and make purchases within its games through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store and others (“Digital Storefronts”). The Company creates games based on its own original brands, as well as third-party licensed brands, properties and other content . Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“GAAP”) for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on February 28, 2019. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, which the Company believes are necessary for a fair statement of the Company’s financial position as of September 30, 2019 and its unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2019 and 2018, respectively. These unaudited condensed consolidated financial statements are not necessarily indicative of the results to be expected for the entire year. The unaudited condensed consolidated balance sheet presented as of December 31, 2018 has been derived from the audited consolidated financial statements as of that date, and the unaudited condensed consolidated balance sheet presented as of September 30, 2019 has been derived from the unaudited condensed consolidated financial statements as of that date. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not materially affect revenue, operating loss, net loss, cash flows, total assets, total liabilities or stockholders’ equity. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. The Company derives its accounts receivable from revenue earned from customers or through Digital Storefronts located in the United States and other locations outside of the United States. The Company performs ongoing credit evaluations of its customers’ and the Digital Storefronts’ financial condition and, generally, requires no collateral from its customers or the Digital Storefronts. The Company bases its allowance for doubtful accounts on management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews past due balances over a specified amount individually for collectability on a monthly basis. It reviews all other balances quarterly. The Company charges off accounts receivable balances against the allowance when it determines that the amount will not be recovered. The following table summarizes the revenue from customers or aggregate purchases through Digital Storefronts in excess of 10% of the Company’s revenue: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Apple 54.9 % 53.9 % 53.5 % 55.4 % Google 33.2 % 31.7 % 34.0 % 30.4 % At September 30, 2019, Apple Inc. (“Apple”), Google Inc. (“Google”), and Tapjoy Inc. (“Tapjoy”) accounted for 65.5%, 18.9%, and 11.3% of total accounts receivable. At December 31, 2018, Apple, Google, and Tapjoy accounted for 40.8%, 30.3%, and 21.1%, respectively, of total accounts receivable. No other customer or Digital Storefront represented more than 10% of the Company’s total accounts receivable as of these dates. Operating Leases The Company determines if an arrangement is a lease at inception. Its operating lease agreements are primarily for real estate space and are included within operating lease right of use (“ROU”) assets and operating lease liabilities on the condensed consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, determined as the rate it would have incurred to borrow based on its credit quality at the inception of the lease over a similar term and in the economic environment where the leased asset is located, to calculate the present value of lease payments. ROU assets also exclude lease incentives. Many of the Company’s lease agreements include options to extend the lease, which the Company does not include in the minimum lease terms unless they are reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles—Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment . In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Net Loss Per Share | |
Net Income/(Loss) Per Share | Note 2 — Net Loss Per Share The Company computes basic net loss per share by dividing its net loss for the period by the weighted average number of common shares outstanding during the period. Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net loss $ (5,089) $ (256) $ (1,919) $ (11,877) Shares used to compute net loss per share: Weighted average common shares outstanding 146,210 142,378 145,381 140,685 Weighted average shares used to compute basic and diluted net loss per share 146,210 142,378 145,381 140,685 Net loss per share - basic and diluted $ (0.03) $ (0.00) (0.01) (0.08) The following equity awards outstanding at the end of each period presented have been excluded from the computation of net loss per share of common stock for the periods presented because including them would have had an anti-dilutive effect: September 30, 2019 2018 Warrants to purchase common stock 1,600 3,267 Options to purchase common stock 17,059 17,714 Restricted stock units ("RSUs") 2,469 3,415 Performance stock options ("PSOs") 3,339 — Employee stock purchase plan ("ESPP") 450 283 24,917 24,679 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | Note 3 — Revenue from Contracts with Customers Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the three and nine months ended September 30, 2019 and September 30, 2018: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Micro-Transactions (over-time revenue recognition) $ 93,898 $ 85,062 $ 260,101 $ 234,066 Advertisements and offers (point-in-time revenue recognition) 13,168 14,192 38,362 36,572 Other (point-in-time revenue recognition) 11 31 39 283 Total Revenue $ 107,077 $ 99,285 $ 298,502 $ 270,921 The Company reports as a single segment – mobile games. In the disaggregation above, the Company categorizes revenue by type, and by over-time or point-in-time recognition. Micro-Transactions The Company distributes its games for smartphones and tablets to the end customer through Digital Storefronts. Within these Digital Storefronts, users can download the Company’s free-to-play games and pay to acquire virtual currency which can be redeemed in the games for virtual goods. The initial download of the mobile game from the Digital Storefront does not create a contract under Accounting Standard Codification 606, Revenue from Contracts with Customers (“ (1) Ongoing game related services such as hosting of game play, storage of customer content, when and if available content updates, maintaining the virtual currency management engine, tracking gameplay statistics, matchmaking as it relates to multiple player gameplay, etc. (2) Obligation to the paying player to continue displaying and providing access to the purchased virtual goods within the game. Neither of these obligations are considered distinct since the actual mobile game and the related ongoing services are both required to purchase and benefit from the related virtual goods. As such, the Company’s performance obligations represent a single combined performance obligation which is to make the game and the ongoing game related services available to the players. The transaction price, which is the amount paid for virtual currency/goods by the player, is allocated entirely to this single combined performance obligation. The Company recognizes revenue from in-application purchases of durable virtual currency/goods over the estimated average playing period of paying users. The Company’s revenue from consumable virtual goods has been insignificant. Advertisements and Offers The Company has relationships with certain advertising service providers for advertisements within its mobile games. Revenue from these advertising service providers is generated through impressions, clickthroughs, offers and banner ads. Offers are the type of advertisements where the players are rewarded with virtual currency for completing specified actions, such as watching a short video, subscribing to a service or completing a survey. The Company has determined the advertising buyer to be its customer and displaying the advertisements within the mobile games is identified as the single performance obligation. Revenue from advertisements and offers are recognized at the point-in-time the advertisements are displayed in the game or the offer has been completed by the user as the customer simultaneously receives and consumes the benefits provided from these services. Other Other revenue was immaterial for the three and nine months ended September 30, 2019 and September 30, 2018. Contract Balances The following table provides information about receivables, contracts assets, and contract liabilities from contracts with customers: September 30, 2019 December 31, 2018 Receivables, which are included in accounts receivable, net $ 44,797 $ 27,325 Contract assets - - Contract liabilities, which are included in deferred revenue $ 102,116 $ 85,736 The Company receives payments from customers based on billing terms established in the Company’s contracts. Contract asset relates to the Company’s right to consideration for its completed performance under the contract. At September 30, 2019 and December 31, 2018, there were no contract assets recorded in the Company’s consolidated balance sheet. Accounts receivable are recorded when the right to consideration becomes unconditional. Deferred revenue relates to payments received in advance of performance under the contract. Deferred revenue is recognized as revenue as the Company performs under the contract. The Company had $85,736 in deferred revenue as of December 31, 2018, of which $1,124 and $85,736 was recognized as revenue in the three and nine months ended September 30, 2019, respectively. The Company had $67,788 in deferred revenue as of December 31, 2017, of which $860 and $67,788, respectively, was recognized as revenue in the three and nine months ended September 30, 2018. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | Note 4 — Fair Value Measurements Fair Value Measurements The Company accounts for fair value in accordance with Accounting Standard Codification 820, Fair Value Measurements and Disclosures Level 1 Level 2 Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s financial assets as of September 30, 2019 are presented below at fair value and were classified within the fair value hierarchy as follows: Level 1 Level 2 Level 3 September 30, 2019 Financial Assets Cash and cash equivalents $ 102,445 $ — $ — $ 102,445 Other investments — — 1,565 1,565 Total financial assets $ 102,445 $ — $ 1,565 $ 104,010 The Company’s financial assets as of December 31, 2018 are presented below at fair value and were classified within the fair value hierarchy as follows: Level 1 Level 2 Level 3 December 31, 2018 Financial Assets Cash and cash equivalents $ 97,834 $ — $ — $ 97,834 Restricted cash 110 — — 110 Other investments — — 1,410 1,410 Total financial assets $ 97,944 $ — $ 1,410 $ 99,354 The Company’s cash and cash equivalents, which were held in operating bank and money market accounts, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. The carrying value of accounts receivable and payables approximates fair value due to the short time to expected payment or receipt of cash. The carrying value of other investments approximates fair value, as the Company purchased these investments in fiscal 2017 and there has been no events or changes in circumstances that would have had a significant effect on the fair value of these investments at September 30, 2019 and December 31, 2018. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 9 Months Ended |
Sep. 30, 2019 | |
Cash, Cash Equivalents and Restricted Cash | |
Cash, Cash Equivalents and Restricted Cash | Note 5 — Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited statements of cash flows: Nine Months Ended September 30, 2019 2018 Cash and cash equivalents at beginning of period $ 97,834 $ 63,764 Restricted cash at beginning of the period 110 602 Cash, cash equivalents and restricted cash at beginning of period $ 97,944 $ 64,366 Cash and cash equivalents at end of period 102,445 80,781 Restricted cash at end of the period — 110 Cash, cash equivalents and restricted cash at end of period $ 102,445 $ 80,891 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Components | |
Balance Sheet Components | Note 6 — Balance Sheet Components Accounts Receivable, net September 30, December 31, 2019 2018 Accounts receivable $ 44,797 $ 27,325 Less: Allowance for doubtful accounts — — $ 44,797 $ 27,325 Accounts receivable includes amounts billed and unbilled as of the respective balance sheet dates, but net of platform commissions paid to the Digital Storefronts. The Company had no bad debts during the three and nine months ended September 30, 2019 and 2018. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 7 — Goodwill and Intangible Assets Intangible Assets The Company’s intangible assets were acquired primarily in various acquisitions as well as in connection with the purchase of certain trademarks, brand assets and licensed content. The carrying amounts and accumulated amortization expense of the acquired intangible assets at September 30, 2019 and December 31, 2018 were as follows: September 30, 2019 December 31, 2018 Estimated Gross Accumulated Net Gross Accumulated Net Useful Carrying Amortization Carrying Carrying Amortization Carrying Life Value Expense Value Value Expense Value Intangible assets amortized to cost of revenue: Titles, content and technology 3 - 5 yrs $ 21,117 $ (15,320) $ 5,797 $ 21,117 $ (12,203) $ 8,914 Customer contracts and related relationships 5 yrs 700 (700) — 700 (648) 52 Trademarks 7 yrs 5,000 (5,000) — 5,000 (4,821) 179 $ 26,817 $ (21,020) $ 5,797 $ 26,817 $ (17,672) $ 9,145 Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives, which approximate the pattern in which the economic benefits of the intangible assets are realized. The Company has included amortization of acquired intangible assets directly attributable to revenue-generating activities in cost of revenue. During the three months ended September 30, 2019 and 2018, the Company recorded amortization and impairment expense in the amounts of $1,040 and $4,167, respectively, in cost of revenue. During the nine months ended September 30, 2019 and 2018, the Company recorded amortization and impairment expense in the amounts of $3,348 and $7,102, respectively, in cost of revenue. During the three and nine months ended September 30, 2018, the Company decided not to proceed with further development of a certain game and recorded an impairment charge of $2,700 for the related in-process research and development (“IPR&D) in Impairment and amortization of intangible assets expense in its consolidated statement of operations. As of September 30, 2019, total expected future amortization related to intangible assets was as follows: Amortization to Be Included in Cost of Year Ending December 31, Revenue 2019 (remaining 3 months) $ 1,039 2020 3,258 2021 1,500 Total intangible assets $ 5,797 Goodwill In accordance with Accounting Standard Codification 350, Intangibles – Goodwill and Other The Company evaluates qualitative factors and overall financial performance to determine whether it is necessary to perform the first step of the two-step goodwill test. This step is referred to as “Step 0.” Step 0 involves, among other qualitative factors, weighing the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors. After assessing those various factors, if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity will need to proceed to the first step of the goodwill impairment test. ASC 350 requires a multiple-step approach to testing goodwill for impairment for each reporting unit annually, or whenever events or changes in circumstances indicate the fair value of a reporting unit is below its carrying amount. The first step measures for impairment by applying the fair value-based tests at the reporting unit level. The second step (if necessary) measures the amount of impairment by applying the fair value-based tests to individual assets and liabilities within each reporting unit. The fair value of the reporting units is estimated using a combination of the market approach, which utilizes comparable companies’ data, and/or the income approach, which uses discounted cash flows. During the three months ended September 30, 2019, the Company performed a Step 0 qualitative assessment and concluded that it was more likely than not that the fair value of the reporting unit was greater than its carrying value, and, as a result, did not proceed to further impairment testing. Accordingly, the Company did not recognize an impairment of goodwill in the three and nine months ended September 30, 2019. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Leases | Note 8 – Leases Leases The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’, which permits the Company to not reassess under the new standard for prior conclusions about lease identification, lease classification, and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption, and for those leases that qualified, the Company did not recognize ROU assets or lease liabilities, and this included not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components for all of its leases. The Company currently leases real estate space under non-cancelable operating lease agreements for its corporate headquarters in San Francisco, California and its operations in Toronto, Canada, Hyderabad, India, Foster City, California, San Mateo, California and Burlingame, California. Additionally, the Company leases office space in Long Beach, California which it has sub-leased as it no longer has business operations in that location. These operating leases have remaining lease terms ranging from 5 months to 8.17 years, some of which include the option to extend the lease, with the longest extension option being 6 years. Certain of the Company’s lease agreements contain lease components (for example, fixed payments such as rent) and non-lease components such as common-area maintenance costs. Both of these types of provisions are accounted for as a single lease component. For such arrangements, there may be a variability in future lease payments as the amount of the non-lease components is typically revised from one period to the next. These variable lease payments, which are primarily comprised of common-area maintenance, utilities, and real estate taxes that are passed on from the lessor in proportion to the space leased by the Company within the entire building or building complex, are recognized in the period in which the obligation for those payments is incurred. The Company does not include any of its renewal options when calculating its lease liability as the Company is not reasonably certain whether it will exercise these renewal options at this time. The weighted-average remaining non-cancelable lease term for the Company’s operating leases was 7.74 years for the nine months ended September 30, 2019. The weighted-average discount rate was 6.7% for the nine months ended September 30, 2019. Rent expense for the three months ended September 30, 2019 and 2018 was $1,599 and $1,439, respectively. Rent expense for the nine months ended September 30, 2019 and 2018 was $3,603 and $4,328, respectively. As Previously Reported December 31, 2018 New Lease Standard Adjustment As Adjusted January 1, 2019 Operating lease right of use assets $ — 28,345 $ 28,345 Short-term operating lease liabilities — 3,732 3,732 Long-term operating lease liabilities — 30,197 30,197 Deferred rent payable* $ 5,284 (5,284) $ — * As of December 31, 2018, $122 and $5,162 of Deferred rent payable is included within the Accounts payable and Other long-term liabilities line items on the condensed consolidated balance sheet, respectively. Operating Year Ending December 31, Leases 2019 (remaining 3 months) $ 1,701 2020 4,586 2021 6,995 2022 6,924 2023 6,964 Thereafter 27,666 Total lease payments $ 54,836 Less: imputed interest (12,954) Total $ 41,882 As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and under the previous lease accounting standard, ASC 840, Leases Minimum Operating Lease Year Ending December 31, Payments 2019 $ 5,486 2020 5,219 2021 4,609 2022 4,637 2023 and thereafter 24,894 $ 44,845 Supplemental information related to the Company’s leases for the nine months ended September 30, 2019 is as follows: Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,264 Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Right of use assets obtained in exchange for new lease obligations: Operating leases $ 7,511 $ 11,231 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 9 — Commitments and Contingencies Minimum Guaranteed Royalties and Developer Commitments The Company has entered into license and publishing agreements with various celebrities, athletes, sports and entertainment organizations, and other well-known brands and properties At September 30, 2019, future unpaid minimum guaranteed royalty commitments were as follows: Future Minimum Guarantee Commitments 2019 (remaining 3 months) $ 226 2020 11,450 2021 10,150 2022 6,150 2023 and thereafter 12,300 $ 40,276 The amounts included in the table above reflect the Company’s minimum cash obligations for the respective calendar years, but do not necessarily represent the periods in which they will be expensed in the Company’s consolidated financial statements. Licensor commitments include $40,276 of commitments due to licensors that have been recorded in current and long-term liabilities and a corresponding amount in current and long-term assets because payment is not contingent upon performance by the licensor. The classification of commitments between long-term and short-term is determined based on the timing of expected recoupment of earned royalties calculated on projected revenue for the licensed intellectual property games. Indemnification Arrangements The Company has entered into agreements under which it indemnifies each of its officers and directors during his or her lifetime for certain events or occurrences while the officer or director is or was serving at the Company’s request in that capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits its exposure and enables the Company to recover a portion of any future amounts paid. In the ordinary course of its business, the Company includes standard indemnification provisions in most of its commercial agreements with Digital Storefronts and licensors. Pursuant to these provisions, the Company generally indemnifies these parties for losses suffered or incurred in connection with its games, including as a result of intellectual property infringement, viruses, worms and other malicious software, and legal or regulatory violations. The term of these indemnity provisions is generally perpetual after execution of the corresponding license agreement, and the maximum potential amount of future payments the Company could be required to make under these provisions is often unlimited. To date, the Company has not incurred costs to defend lawsuits or settle indemnified claims of these types and, accordingly, has Contingencies From time to time, the Company is subject to various claims, complaints and legal actions in the normal course of business. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using available information. The Company’s estimate of losses is developed in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. After taking all of the above factors into account, the Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed reasonably probable and the amount can be reasonably estimated. The Company further determines whether an estimated loss from a contingency should be disclosed by assessing whether a material loss is deemed reasonably possible. Such disclosure will include an estimate of the additional loss or range of loss or will state that an estimate cannot be made. On March 14, 2018, Jeffrey Tseng, the former Chief Executive Officer of Crowdstar, filed a complaint in the Superior Court of the State of California for the County of Santa Clara against Time Warner Inc., Rachel Lam, Intel Capital Corporation, Middlefield Ventures Inc. and Jose Blanc (collectively, the “Non-Glu Defendants”), the Company and additional yet-to-be-named defendants. The complaint alleged (i) breach of fiduciary duty by the Non-Glu Defendants, (ii) aiding and abetting breach of fiduciary duty by the Company and (iii) intentional interference with contract, intentional interference with prospective economic advantage, negligent interference with prospective economic advantage and unfair competition by each of the defendants, in each case relating to circumstances arising from the Company’s acquisition of Crowdstar and the events leading up to the acquisition. Mr. Tseng was seeking compensatory damages and exemplary damages, each in an amount to be determined at trial, along with costs of suit, reasonable attorneys’ fees and such other relief as the Court may deem proper. The Company and the Non-Glu Defendants filed demurrers in response to Mr. Tseng’s complaint on August 17, 2018, Mr. Tseng filed responses to these demurrers on September 17, 2018, and the Company and the Non-Glu Defendants filed reply briefs in support of their demurrers on October 15, 2018. A hearing with respect to the demurrers was held on November 30, 2018. On January 24, 2019, the judge issued an order sustaining the demurrers on all six claims and gave Mr. Tseng 10 days’ leave to amend his complaint. On March 4, 2019, the Company, the Non-Glu Defendants and Mr. Tseng entered into a settlement agreement pursuant to which Mr. Tseng, on one hand, and the Company and the Non-Glu Defendants, on the other hand, provided mutual releases of claims related to the subject matter of Mr. Tseng’s lawsuit and Mr. Tseng agreed to dismiss his lawsuit with prejudice. The Company did not pay any amounts to Mr. Tseng in settlement of this matter. Mr. Tseng dismissed his lawsuit with prejudice on March 6, 2019 and, accordingly, the Company considers this matter to be resolved. The Company does not believe it is party to any currently pending litigation, the outcome of which is reasonably possible to have a material adverse effect on its operations, financial position or liquidity. However, the ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on the Company because of defense costs, potential negative publicity, diversion of management resources and other factors. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity | |
Stockholders' Equity | Note 10 — Stockholders’ Equity Warrants to Purchase Common Stock As of September 30, 2019 and December 31, 2018, 1,600 warrants issued to celebrity licensors and entities affiliated with one of the celebrity licensors were outstanding. These warrants have a weighted average exercise price of $4.61 per share and an average contractual term of 5.44 years. No expenses with respect to these warrants were recognized during the three months ended September 30, 2019 and 2018. During the nine months ended September 30, 2019 and 2018, the Company recognized expenses with respect to these warrants of $0 and $1,046 respectively. |
Stock Option and Other Benefit
Stock Option and Other Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Stock Option and Other Benefit Plans | |
Stock Option and Other Benefit Plans | Note 11 — Stock Option and Other Benefit Plans 2007 Equity Incentive Plan In April 2018, the Company’s Board of Directors approved, and in June 2018, the Company’s stockholders approved, the fourth Amended and Restated 2007 Equity Incentive Plan (the “Fourth Amended 2007 Plan”). The Fourth Amended 2007 Plan included an increase of 10,000 shares in the aggregate number of shares of common stock authorized for issuance under the plan. It also removed the limitation on the number of shares that can be issued in any calendar year to a participant. In April 2019, the Company’s Board of Directors approved, and in June 2019, the Company’s stockholders approved, the fifth Amended and Restated 2007 Equity Incentive Plan (the “Fifth Amended 2007 Plan”). The Fifth Amended 2007 Plan included an increase of 4,600 shares in the aggregate number of shares of common stock authorized for issuance under the plan. Performance-based Equity Awards The Company awards PSOs and/or performance-based stock units (“PSUs”) to its executives and certain of its employees. These performance-based awards are subject to the achievement of specified performance goals. They become eligible to vest only if the applicable performance goals are achieved and will vest only if the grantee remains employed with the Company through each applicable vesting date. The number of shares that may vest depend on the extent to which the Company achieves the specified performance goals. The fair value of these awards is estimated on the date of grant. The PSOs have a contractual term of 10 years. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized and any previously recognized expense is reversed. The expected cost is based on the awards that are probable to vest and is recognized over the service period. 2007 Employee Stock Purchase Plan In April 2017, the Company’s Board of Directors approved, and in June 2017, the Company’s stockholders approved, the Amended and Restated 2007 Employee Stock Purchase Plan (the “Amended 2007 Purchase Plan”). The Amended 2007 Purchase Plan included an increase of 4,000 shares in the aggregate number of shares of common stock authorized for issuance under the plan and removal of the expiration date of the plan. 2018 Equity Inducement Plan In April 2018, the Compensation Committee of the Company’s Board of Directors adopted the 2018 Equity Inducement Plan (the “2018 Plan”). The 2018 Plan replaced the Company’s 2008 Equity Inducement Plan that expired by its terms in March 2018, and is intended to augment the shares available for issuance under the Fourth Amended 2007 Plan. The Company did not seek stockholder approval for the 2018 Plan. As such, awards under the Inducement Plan will be granted in accordance with Nasdaq Listing Rule 5635(c)(4) and only to persons not previously an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to such individuals entering into employment with the Company. The Company initially reserved 400 shares of common stock for issuance under the 2018 Plan. RSU Activity A summary of the Company’s RSU activity for the nine months ended September 30, 2019 is as follows: Weighted Weighted Number of Average Average Remaining Aggregate Units Grant Date Contractual Intrinsic Outstanding Fair Value Term (Years) Value Awarded and unvested, December 31, 2018 3,021 $ 3.01 Granted 1,014 $ 8.45 Vested (1,367) $ 3.35 Forfeited (199) $ 3.63 Awarded and unvested, September 30, 2019 2,469 $ 5.00 1.12 $ 12,320 PSU Activity A summary of the Company’s PSU activity for the nine months ended September 30, 2019 is as follows: Weighted Weighted Number of Average Average Remaining Aggregate Units Grant Date Contractual Intrinsic Outstanding Fair Value Term (Years) Value Awarded and unvested, December 31, 2018 3,530 $ 5.45 Granted 327 $ 9.16 Vested (700) $ 4.59 Forfeited (185) $ 6.02 Awarded and unvested, September 30, 2019 2,972 $ 6.03 1.13 $ 14,829 PSUs expected to vest at September 30, 2019 269 $ 3.61 0.38 $ 1,342 PSO Activity A summary of the Company’s PSO activity for the nine months ended September 30, 2019 is as follows: Weighted Weighted Number of Average Average Remaining Aggregate Share Exercise Contractual Intrinsic Outstanding Price Term (Years) Value Balance as of December 31, 2018 6,756 $ 4.51 Exercised (173) $ 3.59 Balance as of September 30, 2019 6,583 $ 4.54 8.40 $ 6,110 PSOs expected to vest at September 30, 2019 399 $ 3.60 8.10 $ 554 PSO exercisable at September 30, 2019 3,339 $ 3.60 8.05 $ 4,649 Stock Option Activity The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2019: Options Outstanding Weighted Weighted Number Average Average Remaining Aggregate of Exercise Contractual Intrinsic Shares Price Term (Years) Value Balances at December 31, 2018 18,491 $ 3.39 Options granted 538 8.74 Options canceled (1,024) 4.76 Options exercised (946) 2.89 Balances at September 30, 2019 17,059 $ 3.50 7.33 $ 29,927 Options exercisable at September 30, 2019 9,230 $ 3.02 6.77 $ 18,910 The aggregate intrinsic value in the preceding table is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of the Company’s common stock on The Nasdaq Global Select Market of $4.99 per share as of September 30, 2019 Stock-Based Compensation The cost of RSUs and PSUs are determined using the fair value of the Company’s common stock based on the quoted closing price of the Company’s common stock on the date of grant. RSUs typically vest and are settled over approximately a four-year period with 25% of the shares vesting on or around the one-year anniversary of the grant date and the remaining shares vesting quarterly thereafter. Compensation cost is amortized on a straight-line basis over the requisite service period. Vesting of PSOs and PSUs requires continuous services by the recipient of those awards and achieving performance-based goals which are solely related to the Company’s operations. Under Accounting Standard Codification 718, Compensation-Stock Compensation Performance Stock Options Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Dividend yield — % — % — % — % Risk-free interest rate — % — % — % 2.36 % Expected volatility — % — % — % 62.6 % Expected term (years) — — — 5.97 Stock Options Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Dividend yield — % — % — % — % Risk-free interest rate — % 2.78 % 2.15 % 2.50 % Expected volatility — % 56.4 % 56.1 % 58.4 % Expected term (years) — 4.00 4.00 4.00 The expected term of stock options gave consideration to early exercises, post-vesting cancellations and the options’ contractual term ranging from 6 to 10 years. The Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term for the PSOs as the Company had not granted such awards prior to October 2017. As a result, the Company used the simplified method to calculate the expected term estimate based on the vesting and contractual terms of the PSOs. Under the simplified method, the expected term is equal to the average of the stock-based awards vesting period and their contractual term. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury Constant Maturity Rate as of the date of grant. The Company based its expected volatility on its own historical volatility. The weighted-average fair value of stock options granted during the nine months ended September 30, 2019 and 2018 was $3.94 and $1.97 per share, respectively. The following table summarizes the consolidated stock-based compensation expense by line items in the unaudited condensed consolidated statement of operations: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Research and development $ 2,494 $ 3,062 $ 7,568 $ 8,989 Sales and marketing 293 660 1,174 1,922 General and administrative 1,293 2,157 4,180 6,619 Total stock-based compensation expense $ 4,080 $ 5,879 $ 12,922 $ 17,530 During the nine months ended September 30, 2019, the change in stock-based compensation expense included a reversal of previously accrued expense of $2,455 due to a decrease in the vesting probability of certain performance-based equity awards. During the three months ended September 30, 2019, the change in stock-based compensation expense due to the change in the vesting probability of certain performance-based equity awards was immaterial. The following table summarizes total compensation expense related to unvested awards not yet recognized as of September 30, 2019: Unrecognized Expense for Awards Stock options $ 12,876 RSUs 10,460 PSUs (1) 327 PSOs (1) 291 Total unrecognized compensation expense $ 23,954 (1) The unrecognized compensation for PSOs and PSUs vesting in FY2021 and FY2022 is excluded in the table above as the Company does not have a reasonable basis upon which to estimate the vesting probability of such awards in those future periods. The unrecognized compensation expense related to stock options and RSUs will be recognized over a weighted average period of 2.04 years and 2.08 years, respectively. The unrecognized compensation expense related to PSOs and PSUs will be recognized over a weighted average period of 0.38 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Taxes | |
Income Taxes | Note 12 – Income Taxes The Company recorded an income tax benefit of $348 and $170 for the three and nine months ended September 30, 2019, respectively, and an income tax expense of $118 and $500 for the three and nine months ended September 30, 2018, respectively . The Company accounts for uncertain tax positions in accordance with Accounting Standards Codification 740, Income Taxes The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. The expense related to interest on uncertain tax positions was immaterial during the three months and nine months ended September 30, 2019 and 2018. As of September 30, 2019 and December 31, 2018, the Company had a liability of $166 and $150, respectively, related to interest and penalties for uncertain tax positions. The Company is subject to taxation in the United States and various foreign jurisdictions. The material jurisdictions subject to examination by tax authorities are primarily the State of California, United States, Canada, China, and India. The Company’s federal tax returns are open by statute for tax years 1998 and forward and California tax returns are open by statute for tax years 2003 and forward and could be subject to examination by the tax authorities. The Company’s income tax returns in its international locations are open by statute for tax years 2015 and forward. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely outside the U.S. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting | |
Segment Reporting | Note 13 — Segment Reporting Accounting Standard Codification 280, Segment Reporting Accordingly, the Company reports as a single reportable segment—mobile games. In the case of Digital Storefronts, revenue is attributed to the geographic location where the end-user makes the purchase. The Company generates its revenue in the following geographic regions: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 United States of America $ 84,320 $ 77,276 $ 231,023 $ 207,207 Americas, excluding the United States 6,386 5,881 18,583 15,824 EMEA 11,401 10,412 33,831 30,616 APAC 4,970 5,716 15,065 17,274 $ 107,077 $ 99,285 $ 298,502 $ 270,921 The Company attributes its long-lived assets, which primarily consist of property and equipment, to a country primarily based on the physical location of the assets. Property and equipment, net of accumulated depreciation and amortization, summarized by geographic location was as follows: September 30, December 31, 2019 2018 United States of America $ 12,323 $ 12,653 Rest of the World 969 1,235 $ 13,292 $ 13,888 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring. | |
Restructuring | Note 14 — Restructuring No restructuring charges related to employee and lease termination costs were recorded during the three and nine months ended September 30, 2019. During the three and nine months ended September 30, 2018, the Company recorded $160 and $240 of restructuring charges related to lease termination costs in the Company’s Long Beach, California office. Restructuring Restructuring Restructuring Workforce Facility Total Balance as of January 1, 2018 $ 143 $ 616 $ 759 Charges to operations 160 80 240 Charges settled in cash (303) (402) (705) Balance as of December 31, 2018 $ - $ 294 $ 294 Non-cash adjustments (1) - (294) (294) Balance as of September 30, 2019 $ - $ - $ - (1) Reflects reclassification of restructuring accrual to operating lease right of use assets. |
The Company, Basis of Present_2
The Company, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
The Company, Basis of Presentation and Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“GAAP”) for complete financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on February 28, 2019. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, which the Company believes are necessary for a fair statement of the Company’s financial position as of September 30, 2019 and its unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2019 and 2018, respectively. These unaudited condensed consolidated financial statements are not necessarily indicative of the results to be expected for the entire year. The unaudited condensed consolidated balance sheet presented as of December 31, 2018 has been derived from the audited consolidated financial statements as of that date, and the unaudited condensed consolidated balance sheet presented as of September 30, 2019 has been derived from the unaudited condensed consolidated financial statements as of that date. Certain prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not materially affect revenue, operating loss, net loss, cash flows, total assets, total liabilities or stockholders’ equity. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. The Company derives its accounts receivable from revenue earned from customers or through Digital Storefronts located in the United States and other locations outside of the United States. The Company performs ongoing credit evaluations of its customers’ and the Digital Storefronts’ financial condition and, generally, requires no collateral from its customers or the Digital Storefronts. The Company bases its allowance for doubtful accounts on management’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company reviews past due balances over a specified amount individually for collectability on a monthly basis. It reviews all other balances quarterly. The Company charges off accounts receivable balances against the allowance when it determines that the amount will not be recovered. The following table summarizes the revenue from customers or aggregate purchases through Digital Storefronts in excess of 10% of the Company’s revenue: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Apple 54.9 % 53.9 % 53.5 % 55.4 % Google 33.2 % 31.7 % 34.0 % 30.4 % At September 30, 2019, Apple Inc. (“Apple”), Google Inc. (“Google”), and Tapjoy Inc. (“Tapjoy”) accounted for 65.5%, 18.9%, and 11.3% of total accounts receivable. At December 31, 2018, Apple, Google, and Tapjoy accounted for 40.8%, 30.3%, and 21.1%, respectively, of total accounts receivable. No other customer or Digital Storefront represented more than 10% of the Company’s total accounts receivable as of these dates. |
Operating Leases | Operating Leases The Company determines if an arrangement is a lease at inception. Its operating lease agreements are primarily for real estate space and are included within operating lease right of use (“ROU”) assets and operating lease liabilities on the condensed consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, determined as the rate it would have incurred to borrow based on its credit quality at the inception of the lease over a similar term and in the economic environment where the leased asset is located, to calculate the present value of lease payments. ROU assets also exclude lease incentives. Many of the Company’s lease agreements include options to extend the lease, which the Company does not include in the minimum lease terms unless they are reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles—Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment . In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
The Company, Basis of Present_3
The Company, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
The Company, Basis of Presentation and Summary of Significant Accounting Policies | |
Schedule of Revenue Concentration | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Apple 54.9 % 53.9 % 53.5 % 55.4 % Google 33.2 % 31.7 % 34.0 % 30.4 % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Net Loss Per Share | |
Computation of Net Loss Per Share | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net loss $ (5,089) $ (256) $ (1,919) $ (11,877) Shares used to compute net loss per share: Weighted average common shares outstanding 146,210 142,378 145,381 140,685 Weighted average shares used to compute basic and diluted net loss per share 146,210 142,378 145,381 140,685 Net loss per share - basic and diluted $ (0.03) $ (0.00) (0.01) (0.08) |
Schedule of Anti-Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share | September 30, 2019 2018 Warrants to purchase common stock 1,600 3,267 Options to purchase common stock 17,059 17,714 Restricted stock units ("RSUs") 2,469 3,415 Performance stock options ("PSOs") 3,339 — Employee stock purchase plan ("ESPP") 450 283 24,917 24,679 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contracts with Customers | |
Summary of Revenue from Contracts with Customers | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Micro-Transactions (over-time revenue recognition) $ 93,898 $ 85,062 $ 260,101 $ 234,066 Advertisements and offers (point-in-time revenue recognition) 13,168 14,192 38,362 36,572 Other (point-in-time revenue recognition) 11 31 39 283 Total Revenue $ 107,077 $ 99,285 $ 298,502 $ 270,921 |
Information on Receivables, contract assets and contract liabilities | September 30, 2019 December 31, 2018 Receivables, which are included in accounts receivable, net $ 44,797 $ 27,325 Contract assets - - Contract liabilities, which are included in deferred revenue $ 102,116 $ 85,736 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements | |
Schedule of Assets and Liabilities Presented at Fair Value | Level 1 Level 2 Level 3 September 30, 2019 Financial Assets Cash and cash equivalents $ 102,445 $ — $ — $ 102,445 Other investments — — 1,565 1,565 Total financial assets $ 102,445 $ — $ 1,565 $ 104,010 Level 1 Level 2 Level 3 December 31, 2018 Financial Assets Cash and cash equivalents $ 97,834 $ — $ — $ 97,834 Restricted cash 110 — — 110 Other investments — — 1,410 1,410 Total financial assets $ 97,944 $ — $ 1,410 $ 99,354 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Cash, Cash Equivalents and Restricted Cash | |
Reconciliation of cash, cash equivalents and restricted cash | Nine Months Ended September 30, 2019 2018 Cash and cash equivalents at beginning of period $ 97,834 $ 63,764 Restricted cash at beginning of the period 110 602 Cash, cash equivalents and restricted cash at beginning of period $ 97,944 $ 64,366 Cash and cash equivalents at end of period 102,445 80,781 Restricted cash at end of the period — 110 Cash, cash equivalents and restricted cash at end of period $ 102,445 $ 80,891 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Components | |
Schedule of Components of Accounts Receivable, net | September 30, December 31, 2019 2018 Accounts receivable $ 44,797 $ 27,325 Less: Allowance for doubtful accounts — — $ 44,797 $ 27,325 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets | |
Schedule of Carrying Amounts and Accumulated Amortization of Acquired Intangible Assets | September 30, 2019 December 31, 2018 Estimated Gross Accumulated Net Gross Accumulated Net Useful Carrying Amortization Carrying Carrying Amortization Carrying Life Value Expense Value Value Expense Value Intangible assets amortized to cost of revenue: Titles, content and technology 3 - 5 yrs $ 21,117 $ (15,320) $ 5,797 $ 21,117 $ (12,203) $ 8,914 Customer contracts and related relationships 5 yrs 700 (700) — 700 (648) 52 Trademarks 7 yrs 5,000 (5,000) — 5,000 (4,821) 179 $ 26,817 $ (21,020) $ 5,797 $ 26,817 $ (17,672) $ 9,145 |
Schedule of Expected Amortization Related to Intangible Assets | Amortization to Be Included in Cost of Year Ending December 31, Revenue 2019 (remaining 3 months) $ 1,039 2020 3,258 2021 1,500 Total intangible assets $ 5,797 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Material impact on the Company's condensed consolidated balance sheets | As Previously Reported December 31, 2018 New Lease Standard Adjustment As Adjusted January 1, 2019 Operating lease right of use assets $ — 28,345 $ 28,345 Short-term operating lease liabilities — 3,732 3,732 Long-term operating lease liabilities — 30,197 30,197 Deferred rent payable* $ 5,284 (5,284) $ — * As of December 31, 2018, $122 and $5,162 of Deferred rent payable is included within the Accounts payable and Other long-term liabilities line items on the condensed consolidated balance sheet, respectively. |
Schedule of future minimum lease payments | Operating Year Ending December 31, Leases 2019 (remaining 3 months) $ 1,701 2020 4,586 2021 6,995 2022 6,924 2023 6,964 Thereafter 27,666 Total lease payments $ 54,836 Less: imputed interest (12,954) Total $ 41,882 Minimum Operating Lease Year Ending December 31, Payments 2019 $ 5,486 2020 5,219 2021 4,609 2022 4,637 2023 and thereafter 24,894 $ 44,845 |
Supplemental Information Operating Cash Flows from Operating Leases | Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,264 Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Right of use assets obtained in exchange for new lease obligations: Operating leases $ 7,511 $ 11,231 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies | |
Schedule of Future Minimum Guaranteed Royalty Commitments | Future Minimum Guarantee Commitments 2019 (remaining 3 months) $ 226 2020 11,450 2021 10,150 2022 6,150 2023 and thereafter 12,300 $ 40,276 |
Stock Option and Other Benefi_2
Stock Option and Other Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Company's RSU Activity | Weighted Weighted Number of Average Average Remaining Aggregate Units Grant Date Contractual Intrinsic Outstanding Fair Value Term (Years) Value Awarded and unvested, December 31, 2018 3,021 $ 3.01 Granted 1,014 $ 8.45 Vested (1,367) $ 3.35 Forfeited (199) $ 3.63 Awarded and unvested, September 30, 2019 2,469 $ 5.00 1.12 $ 12,320 |
Schedule of Assumptions Used to Estimate Fair Value of Options | Performance Stock Options Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Dividend yield — % — % — % — % Risk-free interest rate — % — % — % 2.36 % Expected volatility — % — % — % 62.6 % Expected term (years) — — — 5.97 Stock Options Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Dividend yield — % — % — % — % Risk-free interest rate — % 2.78 % 2.15 % 2.50 % Expected volatility — % 56.4 % 56.1 % 58.4 % Expected term (years) — 4.00 4.00 4.00 |
Schedule of Stock-Based Compensation Expense by Line Item | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Research and development $ 2,494 $ 3,062 $ 7,568 $ 8,989 Sales and marketing 293 660 1,174 1,922 General and administrative 1,293 2,157 4,180 6,619 Total stock-based compensation expense $ 4,080 $ 5,879 $ 12,922 $ 17,530 |
Schedule of compensation expense related to unvested awards | Unrecognized Expense for Awards Stock options $ 12,876 RSUs 10,460 PSUs (1) 327 PSOs (1) 291 Total unrecognized compensation expense $ 23,954 (1) The unrecognized compensation for PSOs and PSUs vesting in FY2021 and FY2022 is excluded in the table above as the Company does not have a reasonable basis upon which to estimate the vesting probability of such awards in those future periods. |
PSUs | |
Summary of Company's RSU Activity | Weighted Weighted Number of Average Average Remaining Aggregate Units Grant Date Contractual Intrinsic Outstanding Fair Value Term (Years) Value Awarded and unvested, December 31, 2018 3,530 $ 5.45 Granted 327 $ 9.16 Vested (700) $ 4.59 Forfeited (185) $ 6.02 Awarded and unvested, September 30, 2019 2,972 $ 6.03 1.13 $ 14,829 PSUs expected to vest at September 30, 2019 269 $ 3.61 0.38 $ 1,342 |
Options to purchase common stock | |
Summary of Stock Option Activity | Options Outstanding Weighted Weighted Number Average Average Remaining Aggregate of Exercise Contractual Intrinsic Shares Price Term (Years) Value Balances at December 31, 2018 18,491 $ 3.39 Options granted 538 8.74 Options canceled (1,024) 4.76 Options exercised (946) 2.89 Balances at September 30, 2019 17,059 $ 3.50 7.33 $ 29,927 Options exercisable at September 30, 2019 9,230 $ 3.02 6.77 $ 18,910 |
PSOs | |
Summary of Stock Option Activity | Weighted Weighted Number of Average Average Remaining Aggregate Share Exercise Contractual Intrinsic Outstanding Price Term (Years) Value Balance as of December 31, 2018 6,756 $ 4.51 Exercised (173) $ 3.59 Balance as of September 30, 2019 6,583 $ 4.54 8.40 $ 6,110 PSOs expected to vest at September 30, 2019 399 $ 3.60 8.10 $ 554 PSO exercisable at September 30, 2019 3,339 $ 3.60 8.05 $ 4,649 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting | |
Schedule of Revenues by Geographic Region | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 United States of America $ 84,320 $ 77,276 $ 231,023 $ 207,207 Americas, excluding the United States 6,386 5,881 18,583 15,824 EMEA 11,401 10,412 33,831 30,616 APAC 4,970 5,716 15,065 17,274 $ 107,077 $ 99,285 $ 298,502 $ 270,921 |
Schedule of Long-Lived Assets by Geographic Location | September 30, December 31, 2019 2018 United States of America $ 12,323 $ 12,653 Rest of the World 969 1,235 $ 13,292 $ 13,888 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring. | |
Summary of Restructuring Reserve Activity | Restructuring Restructuring Restructuring Workforce Facility Total Balance as of January 1, 2018 $ 143 $ 616 $ 759 Charges to operations 160 80 240 Charges settled in cash (303) (402) (705) Balance as of December 31, 2018 $ - $ 294 $ 294 Non-cash adjustments (1) - (294) (294) Balance as of September 30, 2019 $ - $ - $ - (1) Reflects reclassification of restructuring accrual to operating lease right of use assets. |
The Company, Basis of Present_4
The Company, Basis of Presentation and Summary of Significant Accounting Policies - Concentration Risks (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenues from customers | Apple | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage from customers | 54.9 | 53.9 | 53.5 | 55.4 | |
Revenues from customers | Google | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage from customers | 33.2 | 31.7 | 34 | 30.4 | |
Accounts Receivable | Customer Concentration Risk | Apple | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage from customers | 65.5 | 40.8 | |||
Accounts Receivable | Customer Concentration Risk | Google | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage from customers | 18.9 | 30.3 | |||
Accounts Receivable | Customer Concentration Risk | Tapjoy | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage from customers | 11.3 | 21.1 |
Net Loss Per Share - Basic and
Net Loss Per Share - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net loss | $ (5,089) | $ (256) | $ (1,919) | $ (11,877) |
Shares used to compute net loss per share: | ||||
Weighted average common shares outstanding | 146,210 | 142,378 | 145,381 | 140,685 |
Weighted average shares used to compute basic and diluted net loss per share | 146,210 | 142,378 | 145,381 | 140,685 |
Net loss per common share - basic and diluted | $ (0.03) | $ 0 | $ (0.01) | $ (0.08) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Shares (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive securities excluded from computation of diluted net loss per share | 24,917 | 24,679 |
Warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive securities excluded from computation of diluted net loss per share | 1,600 | 3,267 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive securities excluded from computation of diluted net loss per share | 17,059 | 17,714 |
Restricted stock units ("RSUs") | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive securities excluded from computation of diluted net loss per share | 2,469 | 3,415 |
Performance stock options ("PSOs") | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive securities excluded from computation of diluted net loss per share | 3,339 | |
Employee stock purchase plan ("ESPP") | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive securities excluded from computation of diluted net loss per share | 450 | 283 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||||
Total Revenue | $ 107,077 | $ 99,285 | $ 298,502 | $ 270,921 | ||
Deferred revenue | 102,116 | 102,116 | $ 85,736 | $ 67,788 | ||
Micro-Transactions | Over-time revenue recognition | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 93,898 | 85,062 | 260,101 | 234,066 | ||
Advertisements and offers | point-in-time revenue recognition | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | 13,168 | 14,192 | 38,362 | 36,572 | ||
Other | point-in-time revenue recognition | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts with customers | $ 11 | $ 31 | $ 39 | $ 283 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Contract Balances | |||
Receivables, which are included in accounts receivable, net | $ 44,797 | $ 27,325 | |
Contract assets | 0 | 0 | |
Contract liabilities, which are included in deferred revenue | $ 102,116 | $ 85,736 | $ 67,788 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Contract assets | $ 0 | $ 0 | $ 0 | |||
Contract liabilities, which are included in deferred revenue | 102,116 | 102,116 | $ 85,736 | $ 67,788 | ||
Deferred revenue earned and recognized | $ 1,124 | $ 860 | $ 85,736 | $ 67,788 | ||
Maximum | ||||||
Estimated weighted average useful life of a paying user | 8 months | |||||
Minimum | ||||||
Estimated weighted average useful life of a paying user | 4 months |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 102,445 | $ 97,834 |
Restricted cash | 110 | |
Other Investments | 1,565 | 1,410 |
Total financial assets | 104,010 | 99,354 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 102,445 | 97,834 |
Restricted cash | 110 | |
Total financial assets | 102,445 | 97,944 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Investments | 1,565 | 1,410 |
Total financial assets | $ 1,565 | $ 1,410 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Cash, Cash Equivalents and Restricted Cash | |||
Cash and cash equivalents at beginning of period | $ 97,834 | $ 80,781 | $ 63,764 |
Restricted cash at beginning of the period | 110 | 110 | 602 |
Cash, cash equivalents and restricted cash at beginning of period | 97,944 | 80,891 | 64,366 |
Cash and cash equivalents at end of period | 102,445 | 97,834 | 80,781 |
Restricted cash at end of the period | 110 | 110 | |
Cash, cash equivalents and restricted cash at end of period | $ 102,445 | $ 97,944 | $ 80,891 |
Balance Sheet Components - Acco
Balance Sheet Components - Accounts Receivable (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Balance Sheet Components | |||||
Accounts receivable | $ 44,797,000 | $ 44,797,000 | $ 27,325,000 | ||
Accounts receivable, net | 44,797,000 | 44,797,000 | $ 27,325,000 | ||
Bad debts | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets | |||||
Gross Carrying Value | $ 26,817 | $ 26,817 | $ 26,817 | ||
Accumulated Amortization Expense | (21,020) | (21,020) | (17,672) | ||
Total intangible assets | 5,797 | 5,797 | 9,145 | ||
Impairment of goodwill | 0 | 0 | |||
Titles, content and technology | |||||
Finite-Lived Intangible Assets | |||||
Gross Carrying Value | 21,117 | 21,117 | 21,117 | ||
Accumulated Amortization Expense | (15,320) | (15,320) | (12,203) | ||
Total intangible assets | 5,797 | $ 5,797 | 8,914 | ||
Titles, content and technology | Minimum | |||||
Finite-Lived Intangible Assets | |||||
Estimated Useful Life | 3 years | ||||
Titles, content and technology | Maximum | |||||
Finite-Lived Intangible Assets | |||||
Estimated Useful Life | 5 years | ||||
Carrier contract and related relationships | |||||
Finite-Lived Intangible Assets | |||||
Estimated Useful Life | 5 years | ||||
Gross Carrying Value | 700 | $ 700 | 700 | ||
Accumulated Amortization Expense | (700) | $ (700) | (648) | ||
Total intangible assets | 52 | ||||
Trademarks | |||||
Finite-Lived Intangible Assets | |||||
Estimated Useful Life | 7 years | ||||
Gross Carrying Value | 5,000 | $ 5,000 | 5,000 | ||
Accumulated Amortization Expense | $ (5,000) | $ (5,000) | (4,821) | ||
Total intangible assets | $ 179 | ||||
In-process research and development | |||||
Finite-Lived Intangible Assets | |||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 2,700 | $ 2,700 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Cost of Goods and Services Sold, Depreciation and Amortization [Abstract] | |||||
Impairment and amortization of intangible assets | $ 1,040 | $ 4,167 | $ 3,348 | $ 7,102 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||
2019 (remaining 3 months) | 1,039 | 1,039 | |||
2020 | 3,258 | 3,258 | |||
2021 | 1,500 | 1,500 | |||
Total intangible assets | 5,797 | 5,797 | |||
Goodwill | $ 116,227 | 116,227 | $ 116,227 | ||
Changes in Goodwill during the year | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Lease terms | |||||
Lease, Practical Expedients, Package [true false] | true | ||||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||||
Longest extension option | 6 years | 6 years | |||
Weighted-average remaining non-cancelable lease term | 7 years 8 months 26 days | 7 years 8 months 26 days | |||
Weighted-average discount rate | 6.70% | 6.70% | |||
Rent expense | $ 1,599 | $ 1,439 | $ 3,603 | $ 4,328 | |
ASC 840, Leases, total commitment for non-cancelable operating leases | $ 44,845 | ||||
Maximum | |||||
Lease terms | |||||
Operating leases, remaining lease terms | 8 years 2 months 1 day | ||||
Minimum | |||||
Lease terms | |||||
Operating leases, remaining lease terms | 5 months |
Leases - Material impact on Bal
Leases - Material impact on Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating lease right of use assets | $ 36,311 | $ 28,345 | |
Short-term operating lease liabilities | 3,672 | 3,732 | |
Long-term operating lease liabilities | $ 38,210 | 30,197 | |
Accounts payable | |||
Deferred rent payable | $ 122 | ||
Other long-term liabilities | |||
Deferred rent payable | 5,162 | ||
As Previously Reported | |||
Deferred rent payable | $ 5,284 | ||
New Lease Standard Adjustment | |||
Operating lease right of use assets | 28,345 | ||
Short-term operating lease liabilities | 3,732 | ||
Long-term operating lease liabilities | 30,197 | ||
Deferred rent payable | $ (5,284) |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments under Noncancelable Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases | |
2019 (remaining 3 months) | $ 1,701 |
2020 | 4,586 |
2021 | 6,995 |
2022 | 6,924 |
2023 | 6,964 |
Thereafter | 27,666 |
Total lease payments | 54,836 |
Less imputed interest | (12,954) |
Total | $ 41,882 |
Leases - Previous Lease Account
Leases - Previous Lease Accounting Standard, ASC 840, Leases, Total commitment for Non-cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
ASC 840, Leases, Minimum Operating Lease Payments | |
2019 | $ 5,486 |
2020 | 5,219 |
2021 | 4,609 |
2022 | 4,637 |
2023 and thereafter | 24,894 |
Total | $ 44,845 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 4,264 | |
Operating leases | $ 7,511 | $ 11,231 |
Commitments and Contingencies -
Commitments and Contingencies - Minimum Guaranteed Royalties (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Future unpaid minimum guaranteed royalty commitments | |
2019 (remaining 3 months) | $ 226 |
2020 | 11,450 |
2021 | 10,150 |
2022 | 6,150 |
2023 and thereafter | 12,300 |
Total future unpaid minimum guaranteed royalty commitments | 40,276 |
Agreements With Various Licensors | Current and long-term liabilities | |
Future unpaid minimum guaranteed royalty commitments | |
Total future unpaid minimum guaranteed royalty commitments | 40,276 |
Agreements With Various Licensors | Current and long-term assets | |
Future unpaid minimum guaranteed royalty commitments | |
Recoupment of earned royalties | $ 40,276 |
Commitments and Contingencies_2
Commitments and Contingencies - Other Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Indemnification Agreement | Digital Storefronts | ||
Indemnification Agreements [Abstract] | ||
Indemnification liability recorded | $ 0 | $ 0 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants (Details) - Warrants to purchase common stock - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Class of Warrant or Right [Line Items] | |||||
Number of shares outstanding under warrant | 1,600 | 1,600 | 1,600 | ||
Weighted average exercise price (per share) | $ 4.61 | $ 4.61 | $ 4.61 | ||
Average contractual term | 5 years 5 months 8 days | 5 years 5 months 8 days | |||
Recognized expense with respect to warrants | $ 0 | $ 0 | $ 0 | $ 1,046 |
Stock Option And Other Benefi_3
Stock Option And Other Benefit Plans (Details) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation | $ 4,080 | $ 5,879 | $ 12,922 | $ 17,530 | |||
Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contractual term | 6 years | ||||||
Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contractual term | 10 years | ||||||
Options to purchase common stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted, number of shares | 538 | ||||||
PSOs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Contractual term | 10 years | ||||||
2007 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock authorized for issuance, increased | 4,600 | 10,000 | |||||
2007 Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock authorized for issuance, increased | 4,000 | ||||||
2018 Equity Inducement Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, reserved for future issuance | 400 |
Stock Option And Other Benefi_4
Stock Option And Other Benefit Plans - RSU, PSU and PSO Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Restricted stock units ("RSUs") | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awarded and unvested, Number of Units Outstanding, beginning balance | shares | 3,021 |
Granted, Number of Units Outstanding | shares | 1,014 |
Vested, Number of Units Outstanding | shares | (1,367) |
Forfeited, Number of Units Outstanding | shares | (199) |
Awarded and unvested, Number of Units Outstanding, ending balance | shares | 2,469 |
Awarded and unvested, Weighted Average Grant Date Fair Value, beginning balance | $ / shares | $ 3.01 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 8.45 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 3.35 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 3.63 |
Awarded and unvested, Weighted Average Grant Date Fair Value, ending balance | $ / shares | $ 5 |
Awarded and unvested, Weighted Average Remaining Contractual Term (Years) | 1 year 1 month 13 days |
Aggregate Intrinsic Value | $ | $ 12,320 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awarded and unvested, Number of Units Outstanding, beginning balance | shares | 3,530 |
Granted, Number of Units Outstanding | shares | 327 |
Vested, Number of Units Outstanding | shares | (700) |
Forfeited, Number of Units Outstanding | shares | (185) |
Awarded and unvested, Number of Units Outstanding, ending balance | shares | 2,972 |
Expected to vest, Number of Units Outstanding | shares | 269 |
Awarded and unvested, Weighted Average Grant Date Fair Value, beginning balance | $ / shares | $ 5.45 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 9.16 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 4.59 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 6.02 |
Awarded and unvested, Weighted Average Grant Date Fair Value, ending balance | $ / shares | 6.03 |
Expected to vest, Weighted Average Grant Date Fair Value | $ / shares | $ 3.61 |
Awarded and unvested, Weighted Average Remaining Contractual Term (Years) | 1 year 1 month 17 days |
Expected to vest, Weighted Average Remaining Contractual Term (Years) | 4 months 17 days |
Aggregate Intrinsic Value | $ | $ 14,829 |
Expected to vest, Aggregate Intrinsic Value | $ | $ 1,342 |
Stock Option And Other Benefi_5
Stock Option And Other Benefit Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Quoted closing price of Company's common stock | $ 4.99 | |
Cash proceed from option exercise, net | $ 984 | $ 4,424 |
PSOs | ||
Number of shares, beginning balances | 6,756 | |
Options exercised, number of shares | (173) | |
Number of shares, ending balances | 6,583 | |
Options vested and expected to vest, number of shares | 399 | |
Options exercisable, number of shares | 3,339 | |
Weighted average exercise price, beginning balances | $ 4.51 | |
Options granted, weighted average exercise price | 3.59 | |
Weighted average exercise price, ending balances | 4.54 | |
Options vested and expected to vest, weighted average exercise price | 3.60 | |
Options exercisable, weighted average exercise price | $ 3.60 | |
Weighted average remaining contractual term, options outstanding | 8 years 4 months 24 days | |
Weighted average contractual term, options expected to vest | 8 years 1 month 6 days | |
Weighted average remaining contractual term, Options exercisable | 8 years 18 days | |
Aggregate intrinsic value, options outstanding | $ 6,110 | |
Aggregate intrinsic value, Options vested and expected to vest | 554 | |
Aggregate intrinsic value, options exercisable | $ 4,649 | |
Options to purchase common stock | ||
Number of shares, beginning balances | 18,491 | |
Options granted, number of shares | 538 | |
Options canceled, number of shares | (1,024) | |
Options exercised, number of shares | (946) | |
Number of shares, ending balances | 17,059 | |
Options exercisable, number of shares | 9,230 | |
Weighted average exercise price, beginning balances | $ 3.39 | |
Options granted, weighted average exercise price | 8.74 | |
Options canceled, weighted average exercise price | 4.76 | |
Options exercised, weighted average exercise price | 2.89 | |
Weighted average exercise price, ending balances | 3.50 | |
Options exercisable, weighted average exercise price | $ 3.02 | |
Weighted average remaining contractual term, options outstanding | 7 years 3 months 29 days | |
Weighted average remaining contractual term, Options exercisable | 6 years 9 months 7 days | |
Aggregate intrinsic value, options outstanding | $ 29,927 | |
Aggregate intrinsic value, options exercisable | $ 18,910 |
Stock Option And Other Benefi_6
Stock Option And Other Benefit Plans - Weighted Average Assumptions (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock Based Compensation Additional Details | ||||
Weighted-average fair value of stock options granted | $ 3.94 | $ 1.97 | ||
Minimum | ||||
Stock Based Compensation Additional Details | ||||
Contractual term | 6 years | |||
Maximum | ||||
Stock Based Compensation Additional Details | ||||
Contractual term | 10 years | |||
PSOs | ||||
Black-Sholes Valuation Assumptions | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 2.36% | |||
Expected volatility | 62.60% | |||
Expected term (years) | 5 years 11 months 19 days | |||
Stock Based Compensation Additional Details | ||||
Contractual term | 10 years | |||
Options to purchase common stock | ||||
Black-Sholes Valuation Assumptions | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 2.78% | 2.15% | 2.50% | |
Expected volatility | 56.40% | 56.10% | 58.40% | |
Expected term (years) | 4 years | 4 years | 4 years |
Stock Option And Other Benefi_7
Stock Option And Other Benefit Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 4,080 | $ 5,879 | $ 12,922 | $ 17,530 |
Reversal of stock based compensation expense | 2,455 | 2,455 | ||
Total compensation expense related to unvested awards not yet recognized | 23,954 | 23,954 | ||
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 2,494 | 3,062 | 7,568 | 8,989 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 293 | 660 | 1,174 | 1,922 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 1,293 | $ 2,157 | 4,180 | $ 6,619 |
Options to purchase common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total compensation expense related to unvested awards not yet recognized | 12,876 | $ 12,876 | ||
Restricted stock units ("RSUs") | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Vesting period | 4 years | |||
Vesting percentage on or around the one-year anniversary | 25.00% | |||
Total compensation expense related to unvested awards not yet recognized | 10,460 | $ 10,460 | ||
Unrecognized compensation expense recognized over weighted average period | 2 years 14 days | |||
Restricted stock units ("RSUs") | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Unrecognized compensation expense recognized over weighted average period | 2 years 29 days | |||
PSOs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total compensation expense related to unvested awards not yet recognized | 291 | $ 291 | ||
PSOs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Unrecognized compensation expense recognized over weighted average period | 4 months 17 days | |||
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total compensation expense related to unvested awards not yet recognized | $ 327 | $ 327 |
Income Taxes - (Details)
Income Taxes - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Taxes | |||||
Income tax expense (benefit) | $ (348) | $ 118 | $ (170) | $ 500 | |
Unrecognized tax benefits | 23,663 | 23,663 | $ 20,718 | ||
Unrecognized tax benefits, if recognized, would impact effective tax rate | 165 | 165 | 171 | ||
Liability related to interest and penalties for uncertain tax positions | $ 166 | $ 166 | $ 150 |
Segment Reporting - Revenues (D
Segment Reporting - Revenues (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of Operating Segments | segment | 1 | |||
Number of Reporting Units | segment | 1 | |||
Revenues | $ 107,077 | $ 99,285 | $ 298,502 | $ 270,921 |
United States of America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 84,320 | 77,276 | 231,023 | 207,207 |
Americas, excluding the United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 6,386 | 5,881 | 18,583 | 15,824 |
EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 11,401 | 10,412 | 33,831 | 30,616 |
APAC | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 4,970 | $ 5,716 | $ 15,065 | $ 17,274 |
Segment Reporting - PPE (Detail
Segment Reporting - PPE (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net of accumulated depreciation and amortization | $ 13,292 | $ 13,888 |
United States of America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net of accumulated depreciation and amortization | 12,323 | 12,653 |
Rest of the World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net of accumulated depreciation and amortization | $ 969 | $ 1,235 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | $ 294 | $ 759 | $ 759 | ||
Charges to operations | $ 0 | $ 160 | 0 | 240 | 240 |
Non-cash charges/adjustments | (294) | ||||
Charges settled in cash | (705) | ||||
Ending Balance | 294 | ||||
Restructuring Workforce | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 143 | 143 | |||
Charges to operations | 160 | ||||
Charges settled in cash | (303) | ||||
Restructuring Facility | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 294 | $ 616 | 616 | ||
Charges to operations | 80 | ||||
Non-cash charges/adjustments | $ (294) | ||||
Charges settled in cash | (402) | ||||
Ending Balance | $ 294 |