Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'SERVICENOW, INC. |
Trading Symbol | 'NOW |
Entity Central Index Key | '0001373715 |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | 'false |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 138.7 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $121,094 | $118,989 |
Short-term investments | 99,044 | 195,702 |
Accounts receivable, net | 84,527 | 78,163 |
Current portion of deferred commissions | 24,835 | 14,979 |
Prepaid expenses and other current assets | 12,919 | 14,256 |
Total current assets | 342,419 | 422,089 |
Deferred commissions, less current portion | 16,716 | 11,296 |
Long-term investments | 132,619 | 0 |
Property and equipment, net | 68,642 | 42,342 |
Intangible Assets, Net (Excluding Goodwill) | 6,189 | 596 |
Goodwill | 8,526 | 0 |
Other assets | 3,625 | 1,791 |
Total assets | 578,736 | 478,114 |
Current liabilities: | ' | ' |
Accounts payable | 7,930 | 9,604 |
Accrued expenses and other current liabilities | 49,664 | 48,059 |
Current portion of deferred revenue | 210,545 | 153,964 |
Total current liabilities | 268,139 | 211,627 |
Deferred revenue, less current portion | 15,256 | 16,397 |
Other long-term liabilities | 7,745 | 6,685 |
Total liabilities | 291,140 | 234,709 |
Stockholders’ equity: | ' | ' |
Common stock | 139 | 126 |
Additional paid-in capital | 443,083 | 348,803 |
Accumulated other comprehensive loss | -662 | -36 |
Accumulated deficit | -154,964 | -105,488 |
Total stockholders’ equity | 287,596 | 243,405 |
Total liabilities and stockholders’ equity | $578,736 | $478,114 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenues: | ' | ' | ' | ' | ||||
Subscription | $92,992 | $55,279 | $244,926 | $141,640 | ||||
Professional services and other | 18,267 | 9,066 | 54,494 | 26,910 | ||||
Total revenues | 111,259 | 64,345 | 299,420 | 168,550 | ||||
Cost of revenues(1): | ' | ' | ' | ' | ||||
Subscription | 23,429 | [1] | 17,931 | [1] | 61,960 | [1] | 43,182 | [1] |
Professional services and other | 18,146 | [1] | 9,643 | [1] | 47,921 | [1] | 28,519 | [1] |
Total cost of revenues | 41,575 | [1] | 27,574 | [1] | 109,881 | [1] | 71,701 | [1] |
Gross profit | 69,684 | 36,771 | 189,539 | 96,849 | ||||
Operating expenses(1): | ' | ' | ' | ' | ||||
Sales and marketing | 47,336 | [1] | 28,140 | [1] | 137,853 | [1] | 74,356 | [1] |
Research and development | 20,819 | [1] | 10,783 | [1] | 54,809 | [1] | 26,098 | [1] |
General and administrative | 16,179 | [1] | 11,195 | [1] | 43,783 | [1] | 24,441 | [1] |
Total operating expenses | 84,334 | [1] | 50,118 | [1] | 236,445 | [1] | 124,895 | [1] |
Loss from operations | -14,650 | -13,347 | -46,906 | -28,046 | ||||
Interest and other income (expense), net | 600 | 615 | -604 | 1,148 | ||||
Loss before provision for income taxes | -14,050 | -12,732 | -47,510 | -26,898 | ||||
Provision for income taxes | 663 | 321 | 1,966 | 519 | ||||
Net loss | -14,713 | -13,053 | -49,476 | -27,417 | ||||
Net loss attributable to common stockholders - basic | -14,713 | -13,053 | -49,476 | -27,725 | ||||
Net loss attributable to common stockholders - diluted | -14,713 | -13,053 | -49,476 | -27,725 | ||||
Net loss per share attributable to common stockholders - basic (usd per share) | ($0.11) | ($0.11) | ($0.37) | ($0.49) | ||||
Net loss per share attributable to common stockholders - diluted (usd per share) | ($0.11) | ($0.11) | ($0.37) | ($0.49) | ||||
Weighted-average shares used to compute net loss per share attributable to common stockholders - basic and diluted | 137,456,531 | 117,698,005 | 134,036,466 | 57,089,411 | ||||
Other comprehensive income (loss): | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | 758 | 57 | -608 | -479 | ||||
Unrealized gain (loss) on investments | 412 | -17 | -18 | -34 | ||||
Provision for income taxes | 0 | 0 | 0 | 60 | ||||
Other comprehensive income (loss), net of tax | 1,170 | 40 | -626 | -573 | ||||
Comprehensive loss | ($13,543) | ($13,013) | ($50,102) | ($27,990) | ||||
[1] | Includes stock-based compensation as follows: Three Months Ended September 30, Nine Months Ended September 30, 2013 2012 2013 2012Cost of revenues: Subscription$2,190 $1,276 $5,980 $2,514Professional services and other1,209 495 3,095 964Sales and marketing5,945 2,899 14,752 6,852Research and development4,176 1,919 11,005 4,121General and administrative4,331 1,624 9,893 4,137 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stock-based compensation | $17,851 | $8,213 | $44,725 | $18,588 |
Subscription [Member] | ' | ' | ' | ' |
Stock-based compensation | 2,190 | 1,276 | 5,980 | 2,514 |
Professional services and other [Member] | ' | ' | ' | ' |
Stock-based compensation | 1,209 | 495 | 3,095 | 964 |
Sales and marketing [Member] | ' | ' | ' | ' |
Stock-based compensation | 5,945 | 2,899 | 14,752 | 6,852 |
Research and development [Member] | ' | ' | ' | ' |
Stock-based compensation | 4,176 | 1,919 | 11,005 | 4,121 |
General and administrative [Member] | ' | ' | ' | ' |
Stock-based compensation | $4,331 | $1,624 | $9,893 | $4,137 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' | |
Net loss | ($49,476) | ($27,417) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' | |
Depreciation and amortization | 16,316 | 8,841 | |
Amortization of premiums on investments, net | 3,441 | 594 | |
Amortization of deferred commissions | 19,825 | 9,264 | |
Amortization of Intangible Assets | 484 | 31 | |
Stock-based compensation | 44,725 | 18,588 | |
Tax benefit from exercise of stock options | -1,817 | -533 | |
Bad debt expense | 882 | 148 | |
Lease abandonment costs | 354 | 2,922 | |
Changes in operating assets and liabilities: | ' | ' | |
Accounts receivable | -6,988 | -11,065 | |
Deferred commissions | -34,894 | -20,525 | |
Prepaid expenses and other current assets | 2,827 | 4,242 | |
Other assets | -1,750 | -35 | |
Accounts payable | -408 | -106 | |
Accrued expenses and other current liabilities | -2,646 | 4,189 | |
Deferred revenue | 54,332 | 43,081 | |
Other long-term liabilities | 756 | -93 | |
Net cash provided by operating activities | 45,479 | 32,095 | |
Cash flows from investing activities: | ' | ' | |
Purchases of property and equipment | -39,059 | -32,156 | |
Acquisition, net of cash acquired | -13,330 | 0 | |
Purchases of investments | -233,444 | -146,922 | |
Sale of investments | 50,403 | 1,025 | |
Maturities of investments | 142,456 | [1] | 5,800 |
Restricted cash | -174 | 8 | |
Net cash used in investing activities | -93,148 | -172,245 | |
Cash flows from financing activities: | ' | ' | |
Proceeds from Issuance Initial Public Offering | 0 | 169,799 | |
Offering costs in connection with follow-on offering | -698 | 0 | |
Proceeds from employee stock plans | 47,833 | 2,349 | |
Proceeds from early exercise of stock options | 0 | 1,024 | |
Tax benefit from exercise of stock options | 1,817 | 533 | |
Net proceeds from issuance of common stock | 0 | 17,848 | |
Purchase of common stock and restricted stock from stockholders | 0 | 1,960 | |
Net cash provided by financing activities | 48,952 | 189,593 | |
Foreign currency effect on cash and cash equivalents | 822 | -555 | |
Net increase in cash and cash equivalents | 2,105 | 48,888 | |
Cash and cash equivalents at beginning of period | 118,989 | 68,088 | |
Cash and cash equivalents at end of period | 121,094 | 116,976 | |
Supplemental disclosures of non-cash investing activities: | ' | ' | |
Property and equipment included in accounts payable and accrued expenses | $5,360 | $3,768 | |
[1] | Maturities of investments include the effect of the correction of an immaterial error of $3.0 million related to securities that were improperly classified as short-term investments instead of cash and cash equivalents as of December 31, 2012. |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Statement of Cash Flows [Abstract] | ' |
Correction of immaterial error | $3 |
Description_of_Business
Description of Business | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
Description of the Business | |
ServiceNow is a leading provider of cloud-based services to automate enterprise IT operations. We focus on transforming enterprise IT by automating and standardizing service relationships and consolidating IT across the global enterprise. Organizations deploy our service to create a single system of record for enterprise IT, lower operational costs and enhance efficiency. Additionally, our customers use our extensible platform to build custom applications both for IT and other functions across the enterprise, thereby facilitating the automation of activities unique to their business requirements. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||
Sep. 30, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Summary of Significant Accounting Policies | ' | ||
Summary of Significant Accounting Policies | |||
Basis of Presentation | |||
The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for fair statement have been included. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the year ended December 31, 2013 or for other interim periods or for future years. The condensed consolidated balance sheet as of December 31, 2012 is derived from audited financial statements as of that date, however, does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Form 10-K for the fiscal year ended December 31, 2012, which was filed with the Securities and Exchange Commission on March 8, 2013. | |||
Principles of Consolidation | |||
The condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles, or GAAP, and include our accounts and the accounts of our wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. | |||
Use of Estimates | |||
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Items subject to the use of estimates include revenue recognition, allowance for trade accounts receivable, accrual for service level credits, useful lives of fixed assets, certain accrued liabilities including our facility exit obligation, the determination of the provision for income taxes, the fair value of stock awards, loss contingencies and the fair value of assets acquired and liabilities assumed for business combinations. | |||
Foreign Currency Translation | |||
The functional currencies for our foreign subsidiaries are primarily their local currencies. Assets and liabilities of the wholly-owned foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at each period end. Amounts classified in stockholders’ equity are translated at historical exchange rates. Revenues and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded in accumulated other comprehensive loss as a component of stockholders’ equity. Foreign currency transaction gains and losses are included in interest and other income (expense), net within the condensed consolidated statements of comprehensive loss. | |||
Revenue Recognition | |||
We derive our revenues from two sources: (i) subscriptions and (ii) professional services and other. Subscription revenues are primarily comprised of subscription fees that give customers access to the ordered subscription service and related support and include updates to the subscribed service during the subscription term. | |||
Our contracts typically do not give the customer the right to take possession of the software supporting the solution. Professional services and other revenues consist of fees associated with the implementation and configuration of our service. Professional services and other revenues also include customer training and attendance and sponsorship fees for Knowledge, our annual user conference. | |||
We commence revenue recognition when all of the following conditions are met: | |||
• | There is persuasive evidence of an arrangement; | ||
• | The service has been provided to the customer; | ||
• | The collection of related fees is reasonably assured; and | ||
• | The amount of fees to be paid by the customer is fixed or determinable. | ||
We use a signed contract together with either a signed order form or a purchase order, as evidence of an arrangement for a new customer. In subsequent transactions with an existing customer, including an upsell or a renewal, we consider the existing signed contract and either the new signed order form or new purchase order as evidence of an arrangement. | |||
We recognize subscription revenues ratably over the contract term beginning on the commencement date of each contract, which is the date we make our service available to our customers. Once our service is available to customers, we record amounts due in accounts receivable and in deferred revenue. We price our professional services primarily on a time-and-materials basis. We recognize professional services and other revenues as the services are delivered using a proportional performance model. Such services are delivered over a short period of time. In instances where final acceptance of the services are required before revenues are recognized, we defer professional services revenues and the associated costs until all acceptance criteria have been met. | |||
We assess collectibility based on a number of factors such as past collection history with the customer and creditworthiness of the customer. If we determine collectibility is not reasonably assured, we defer revenue recognition until collectibility becomes reasonably assured. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Our arrangements do not include general rights of return. | |||
We have multiple element arrangements comprised of subscription fees and professional services. We account for subscription and professional services revenues as separate units of accounting. To qualify as a separate unit of accounting, the delivered item must have value to the customer on a standalone basis. We have concluded that our subscription service has standalone value as it is routinely sold separately by us. In addition, the applications offered through this subscription service are fully functional without any additional development, modification or customization. We provide customers access to our subscription service at the beginning of the contract term. In determining whether professional services have standalone value, we considered the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription service start date and the contractual dependence of the subscription service on the customer's satisfaction with the professional services work. Our professional services, including implementation and configuration services, are not so unique and complex that other vendors cannot provide them. In some instances, customers independently contract with third-party vendors to do the implementation and we regularly outsource implementation services to contracted third-party vendors. As a result, we concluded professional services, including implementation and configuration services, have standalone value. | |||
We determine the selling price of each deliverable in the arrangement using the selling price hierarchy. Under the selling price hierarchy, the selling price for each deliverable is determined using vendor-specific objective evidence, or VSOE, of selling price or third-party evidence, or TPE, of selling price if VSOE does not exist. If neither VSOE nor TPE of selling price exists for a deliverable, the selling price is determined using the best estimate of selling price, or BESP. The selling price for each unit of account is based on the BESP since VSOE and TPE are not available for our subscription service or professional services and other. The BESP for each deliverable is determined primarily by considering the historical selling price of these deliverables in similar transactions as well as other factors, including, but not limited to, market competition, review of stand-alone sales and current pricing practices. In determining the appropriate pricing structure, we consider the extent of competitive pricing of similar products and marketing analyses. The total arrangement fee for these multiple element arrangements is then allocated to the separate units of account based on the relative selling price. We price our subscription service using a scaled model based on the duration of the subscription term and we frequently extend discounts to our customers based on the number of users. | |||
In limited circumstances, we grant certain customers the right to deploy our subscription service on the customers’ own servers without significant penalty. We have analyzed all of the elements in these particular multiple element arrangements and determined we do not have sufficient VSOE of fair value to allocate revenue to our subscription service and professional services. We defer all revenue under the arrangement until the last element in the transaction has been delivered or started to be delivered. Once the subscription service and the associated professional services have commenced, the entire fee from the arrangement is recognized ratably over the remaining period of the arrangement. | |||
Deferred Revenue | |||
Deferred revenue consists primarily of payments received in advance of revenue recognition for our subscriptions and professional services and other revenues and is recognized as the revenue recognition criteria are met. We generally invoice our customers in annual installments for our subscription service. Accordingly, the deferred revenue balance does not represent the total contract value of annual or multi-year subscription license agreements. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current portion of deferred revenue and the remaining portion is recorded as long-term. | |||
Deferred Commissions | |||
Deferred commissions are the incremental costs that are directly associated with our non-cancelable subscription contracts with customers and consist of sales commissions paid to our direct sales force and referral fees paid to independent third-parties. The majority of commissions and referral fees are deferred and amortized on a straight-line basis over the non-cancelable terms of the related customer contracts. Amortization of deferred commissions is included in sales and marketing expense in the condensed consolidated statements of comprehensive loss. | |||
Fair Value Measurements | |||
We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a fair value hierarchy that is based on three levels of inputs, of which the first two are considered observable and the last unobservable. The three levels of the fair value hierarchy are as follows: | |||
Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; | |||
Level 2—Inputs other than Level 1 that are directly or indirectly observable, such as quoted prices for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities, such as interest rates, yield curves and foreign currency spot rates; and | |||
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. | |||
Cash and Cash Equivalents | |||
Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. Cash and cash equivalents are stated at fair value. | |||
Investments | |||
Investments consist of commercial paper, corporate notes and bonds and U.S. government agency securities. We classify investments as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. All investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are in accumulated other comprehensive income (loss), a component of stockholders’ equity. We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in interest and other income (expense), net in the condensed consolidated statements of comprehensive loss. | |||
Accounts Receivable | |||
We record trade accounts receivable at the net invoice value and such receivables are non-interest bearing. We consider receivables past due based on the contractual payment terms. We review our exposure to accounts receivable and reserve for specific amounts if collectibility is no longer reasonably assured. | |||
Property and Equipment | |||
Property and equipment, net, are stated at cost, subject to review of impairment, and depreciated using the straight-line method over the estimated useful lives of the assets as follows: | |||
Computer equipment and software | 3—5 years | ||
Furniture and fixtures | 3—5 years | ||
Leasehold improvements | shorter of the lease term or estimated useful life | ||
When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operating expenses. Repairs and maintenance are charged to operations as incurred. | |||
Capitalized Software Costs | |||
Costs incurred to develop our internal administration, finance and accounting systems are capitalized during the application development stage and amortized over the software’s estimated useful life of three to five years. | |||
Leases | |||
Leases are reviewed and classified as capital or operating at their inception. For leases that contain rent escalations or periods during the lease term where rent is not required, we recognize rent expense based on allocating the total rent payable on a straight-line basis over the term of the lease excluding lease extension periods. The difference between rent payments and straight-line rent expense is recorded as deferred rent in the condensed consolidated balance sheets. Deferred rent that will be recognized during the succeeding 12-month period is recorded as the current portion of deferred rent and the remainder is recorded as long-term deferred rent. | |||
Under certain leases, we also receive incentives for leasehold improvements, which are recognized as deferred rent, if we determine they are owned by us, and amortized on a straight-line basis over the shorter of the lease term or estimated useful life as a reduction to rent expense. The leasehold improvements are included in property and equipment, net. | |||
Goodwill, Intangible Assets and Impairment Assessments | |||
Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. We evaluate and test the recoverability of its goodwill for impairment at least annually, or more frequently if circumstances indicate that goodwill may not be recoverable. | |||
Intangible assets are amortized over their useful lives. Each period we evaluate the estimated remaining useful life of purchased intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. | |||
The carrying amounts of these assets are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. | |||
Stock-based Compensation | |||
We recognize compensation expense related to stock options and restricted stock units, or RSUs, on a straight-line basis over the requisite service period, which is generally the vesting term of four years. We recognize compensation expense related to shares issued pursuant to the employee stock purchase plan, or ESPP, on a straight-line basis over the offering period. Compensation expense is recognized, net of forfeiture activity estimated to be 4% annually. We estimate the fair value of options using the Black-Scholes options pricing model and fair value of restricted stock unit awards using the value of our common stock on the date of grant. Refer to Note 11 for further information. | |||
Net Income (Loss) Per Share Attributable to Common Stockholders | |||
We compute net income attributable to common stockholders using the two-class method required for participating securities. We consider our convertible preferred stock that was outstanding prior to the close of our initial public offering and shares of common stock subject to repurchase resulting from the early exercise of stock options to be participating securities since they contain non-forfeitable rights to dividends or dividend equivalents in the event we declare a dividend for common stock. In accordance with the two-class method, earnings allocated to these participating securities are subtracted from net income after deducting preferred stock dividends and accretion to the redemption value of the Series A, Series B and Series C to determine total undistributed earnings to be allocated to common stockholders. The holders of our convertible preferred stock did not have a contractual obligation to share in our net losses and such shares were excluded from the computation of basic earnings per share in periods of net loss. | |||
Basic net income (loss) per share attributable to common stockholders is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. All participating securities are excluded from basic weighted-average common shares outstanding. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for the effects of dilutive common shares, which are comprised of outstanding common stock options, RSUs, common stock subject to repurchase and ESPP obligations. The dilutive potential common shares are computed using the treasury stock method. The effects of outstanding common stock options, RSUs, common stock subject to repurchase and ESPP obligations are excluded from the computation of diluted net income (loss) per common share in periods in which the effect would be antidilutive. | |||
Concentration of Credit Risk and Significant Customers | |||
Financial instruments potentially exposing us to credit risk consist primarily of cash equivalents, investments and accounts receivable. We maintain cash, cash equivalents and investments at financial institutions that management believes to have good credit ratings and represent minimal risk of loss of principal. We invest in securities with a minimum rating of A by Standard & Poor's and A-2 by Moody's. | |||
Credit risk arising from accounts receivable is mitigated due to our large number of customers and their dispersion across various industries and geographies. As of September 30, 2013 and December 31, 2012, there were no customers that represented more than 10% of our accounts receivable balance. During the three and nine months ended September 30, 2013 and 2012, there were no customers that individually exceeded 10% of our revenues. | |||
We review the composition of the accounts receivable balance, historical write-off experience and the potential risk of loss associated with delinquent accounts to determine if an allowance for doubtful accounts is necessary. Individual accounts receivable are written off when we become aware of a specific customer’s inability to meet its financial obligation and all collection efforts are exhausted. As of September 30, 2013 and December 31, 2012, the allowance for doubtful accounts was $0.5 million and $0.7 million, respectively. | |||
Warranties and Indemnification | |||
Our cloud-based service to automate enterprise IT operations is typically warranted to perform in material conformance with specifications. | |||
We include service level commitments to our customers that permit those customers to receive credits in the event we fail to meet those levels. We establish an accrual based on historical credits paid and an evaluation of the performance of our services including an assessment of the impact, if any, of any known service disruptions. As of September 30, 2013 and December 31, 2012, the service level credit accrual was $0.8 million and $1.2 million, respectively. | |||
We have also agreed to indemnify our directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as a director or officer of our company or that person’s services provided to any other company or enterprise at our request. We maintain director and officer insurance coverage that may enable us to recover a portion of any future amounts paid. The fair values of these obligations are not material as of each balance sheet date. | |||
Our arrangements include provisions indemnifying customers against intellectual property and other third-party claims. We have not incurred any costs as a result of such indemnifications and have not recorded any liabilities related to such obligations in the condensed consolidated financial statements. | |||
Income Taxes | |||
We use the asset and liability method of accounting for income taxes in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the condensed consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be reversed. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. | |||
Recent Accounting Pronouncements | |||
In July 2013, the FASB issued a new accounting standard update on the financial statement presentation of unrecognized tax benefits. The new guidance provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward, if such settlement is required or expected in the event the uncertain tax position is disallowed. The new guidance becomes effective for us on January 1, 2014 and it should be applied prospectively to unrecognized tax benefits that exist at the effective date with retrospective application permitted. We are currently assessing the impact of this new guidance. |
Investments
Investments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||
Investments | ' | |||||||||||||||
Investments | ||||||||||||||||
The following is a summary of our investments (in thousands): | ||||||||||||||||
30-Sep-13 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Commercial paper | $ | 55,898 | $ | 2 | $ | — | $ | 55,900 | ||||||||
Corporate notes and bonds | 215,199 | 43 | (168 | ) | 215,074 | |||||||||||
Total available-for-sale securities | $ | 271,097 | $ | 45 | $ | (168 | ) | $ | 270,974 | |||||||
31-Dec-12 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Commercial paper | $ | 72,850 | $ | — | $ | (15 | ) | $ | 72,835 | |||||||
Corporate notes and bonds | 158,038 | 8 | (98 | ) | 157,948 | |||||||||||
U.S. government agency securities | 1,001 | — | — | 1,001 | ||||||||||||
Total available-for-sale securities | $ | 231,889 | $ | 8 | $ | (113 | ) | $ | 231,784 | |||||||
As of September 30, 2013, the contractual maturities of our investments did not exceed 24 months. The fair values of available-for-sale investments, by contractual maturity, are as follows: | ||||||||||||||||
30-Sep-13 | ||||||||||||||||
Due in 1 year or less | $ | 138,355 | ||||||||||||||
Due in 1 year through 3 years | 132,619 | |||||||||||||||
Total | $ | 270,974 | ||||||||||||||
As of September 30, 2013 and December 31, 2012, we had certain available-for-sale securities in a gross unrealized loss position, all of which had been in such position for less than twelve months. There were no impairments considered other-than-temporary as it is more likely than not we will hold the securities until maturity or a recovery of the cost basis. The following table shows the fair values and the gross unrealized losses of these available-for-sale securities aggregated by investment types (in thousands): | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Fair Value | Gross | Fair Value | Gross | |||||||||||||
Unrealized | Unrealized | |||||||||||||||
Losses | Losses | |||||||||||||||
Commercial paper | $ | — | $ | — | $ | 36,753 | $ | (15 | ) | |||||||
Corporate notes and bonds | 164,230 | (168 | ) | 137,558 | (98 | ) | ||||||||||
Total | $ | 164,230 | $ | (168 | ) | $ | 174,311 | $ | (113 | ) | ||||||
Acquisition
Acquisition | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Business Combinations [Abstract] | ' | |||||
Acquisition | ' | |||||
Acquisition | ||||||
On July 1, 2013, we acquired all the outstanding stock of Mirror42 Holding B.V., a cloud-based performance analytics company, for total cash consideration of $13.3 million. The acquisition accelerates our ability to deliver on enterprise requirements for advanced business intelligence. | ||||||
The following table summarizes the allocation of the purchase price to the fair value of the tangible and intangible assets acquired and liabilities assumed as of the acquisition date: | ||||||
Purchase Price Allocation | Useful Lives | |||||
(in thousands) | (in years) | |||||
Net tangible liabilities acquired | $ | (595 | ) | |||
Intangible assets: | ||||||
Developed technology | 5,530 | 4 | ||||
Contracts | 297 | 1.5 | ||||
Non-compete agreements | 31 | 1.5 | ||||
Goodwill | 8,218 | |||||
Net deferred tax liabilities | (139 | ) | ||||
Total purchase price | $ | 13,342 | ||||
The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. Management believes that the goodwill represents the synergies expected from expanded market opportunities when integrating the Mirror42 Holding B.V.’s technologies with our offerings. The goodwill balance is not deductible for U.S. income tax purposes. | ||||||
The results of operations of Mirror42 Holding B.V. described above have been included in our condensed consolidated financial statements from the date of purchase. Our business combination did not have a material impact on our condensed consolidated financial statements, and therefore pro forma disclosures have not been presented. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill and Intangible Assets | ' | |||||||||||
Goodwill and Intangible Assets | ||||||||||||
Goodwill balance as of September 30, 2013 and December 31, 2012 is presented below (in thousands): | ||||||||||||
Carrying Amount | ||||||||||||
Balance as of December 31, 2012 | $ | — | ||||||||||
Goodwill acquired | 8,218 | |||||||||||
Foreign currency translation adjustments | 308 | |||||||||||
Balance as of September 30, 2013 | $ | 8,526 | ||||||||||
Intangible assets consisted of the following as of September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||
September 30, 2013 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Developed technology | $ | 5,737 | $ | (358 | ) | $ | 5,379 | |||||
Contracts | 308 | (51 | ) | 257 | ||||||||
Non-compete agreements | 32 | (5 | ) | 27 | ||||||||
Acquisition-related intangible assets | 6,077 | (414 | ) | 5,663 | ||||||||
Other intangible assets | 650 | (124 | ) | 526 | ||||||||
Total intangible assets | $ | 6,727 | $ | (538 | ) | $ | 6,189 | |||||
December 31, 2012 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Other intangible assets | $ | 650 | $ | (54 | ) | $ | 596 | |||||
Total intangible assets | $ | 650 | $ | (54 | ) | $ | 596 | |||||
Amortization expense for intangible assets for the three months ended September 30, 2013 and 2012 was approximately $439,000 and $23,000, respectively, and for the nine months ended September 30, 2013 and 2012 was approximately $484,000 and $31,000, respectively. |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Disclosure Summary Of Accrued Expenses And Other Current Liabilities [Abstract] | ' | |||||||
Accrued Expenses and Other Current Liabilities | ' | |||||||
Accrued Expenses and Other Current Liabilities | ||||||||
Accrued expenses and other current liabilities consist of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Bonuses and commissions | $ | 15,001 | $ | 10,999 | ||||
Accrued compensation | 11,630 | 18,392 | ||||||
Other employee expenses | 6,807 | 7,796 | ||||||
Current portion of facility exit obligation | 1,252 | 1,515 | ||||||
Other | 14,974 | 9,357 | ||||||
Total accrued expenses and other current liabilities | $ | 49,664 | $ | 48,059 | ||||
Property_and_Equipment
Property and Equipment | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Property and Equipment | ||||||||
Property and equipment, net consists of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Computer equipment and software | $ | 83,406 | $ | 46,541 | ||||
Furniture and fixtures | 9,084 | 4,691 | ||||||
Leasehold improvements | 4,924 | 2,649 | ||||||
Construction in progress | 2,647 | 4,855 | ||||||
100,061 | 58,736 | |||||||
Less: Accumulated depreciation | (31,419 | ) | (16,394 | ) | ||||
Total property and equipment, net | $ | 68,642 | $ | 42,342 | ||||
Construction in progress consists primarily of in-process software development costs. Depreciation expense for the three months ended September 30, 2013 and 2012 was $6.2 million and $3.9 million, respectively, and for the nine months ended September 30, 2013 and 2012 was $15.8 million and $8.8 million, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||
Accumulated Other Comprehensive Loss | ' | |||||||
Accumulated Other Comprehensive Loss | ||||||||
The components of accumulated other comprehensive loss, net of tax, consist of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Foreign currency translation adjustment | $ | (539 | ) | $ | 69 | |||
Net unrealized loss on investments | (123 | ) | (105 | ) | ||||
Accumulated other comprehensive loss, net of tax | $ | (662 | ) | $ | (36 | ) | ||
Reclassification adjustments out of accumulated other comprehensive income into net loss were immaterial for all periods presented. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The following table presents our fair value hierarchy for our assets and liabilities measured at fair value on a recurring basis at September 30, 2013 (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 45,694 | $ | — | $ | — | 45,694 | |||||||||
Money market funds | 36,089 | — | — | 36,089 | ||||||||||||
Commercial paper | — | 39,311 | — | 39,311 | ||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | — | 16,589 | — | 16,589 | ||||||||||||
Corporate notes and bonds | — | 82,455 | — | 82,455 | ||||||||||||
Long-term investments: | ||||||||||||||||
Corporate notes and bonds | — | 132,619 | — | 132,619 | ||||||||||||
Total | $ | 81,783 | $ | 270,974 | $ | — | $ | 352,757 | ||||||||
The following table presents our fair value hierarchy for our assets and liabilities measured at fair value on a recurring basis at December 31, 2012 (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 47,478 | $ | — | $ | — | $ | 47,478 | ||||||||
Money market funds | 35,429 | — | — | 35,429 | ||||||||||||
Commercial paper | — | 36,082 | — | 36,082 | ||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | — | 36,753 | — | 36,753 | ||||||||||||
Corporate notes and bonds | — | 157,948 | — | 157,948 | ||||||||||||
U.S. government agency securities | — | 1,001 | — | 1,001 | ||||||||||||
Total | $ | 82,907 | $ | 231,784 | $ | — | $ | 314,691 | ||||||||
We determine the fair value of our security holdings based on pricing from our service provider. The service provider values the securities based on “consensus pricing,” using market prices from a variety of industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs), such as yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. |
Common_Stock
Common Stock | 9 Months Ended | ||
Sep. 30, 2013 | |||
Disclosure Common Stock Outstanding And Reserved Shares Of Common Stock For Future Issuance [Abstract] | ' | ||
Common Stock | ' | ||
Common Stock | |||
We are authorized to issue 600,000,000 shares of common stock as of September 30, 2013. Holders of our common stock are not entitled to receive dividends unless declared by our board of directors. | |||
As of September 30, 2013, we had 138,736,768 shares of common stock outstanding and had reserved shares of common stock for future issuance as follows: | |||
30-Sep-13 | |||
Stock option plans: | |||
Options outstanding | 25,453,497 | ||
RSUs | 4,755,522 | ||
Stock awards available for future grants: | |||
2005 Stock Option Plan(1) | — | ||
2012 Equity Incentive Plan(1) | 13,405,017 | ||
2012 Employee Stock Purchase Plan(1) | 5,549,918 | ||
Total reserved shares of common stock for future issuance | 49,163,954 | ||
-1 | Refer to Note 11 for a description of these plans. |
Stock_Awards
Stock Awards | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Stock Awards | ' | ||||||||||||
Stock Awards | |||||||||||||
We have a 2005 Stock Option Plan, or 2005 Plan, which provides for grants of stock awards, including options to purchase shares of common stock, stock purchase rights and RSUs to certain employees, officers, directors and consultants. As of September 30, 2013, there were 54,517,674 total shares of common stock authorized for issuance under the 2005 Plan, which includes shares already issued under such plan and shares reserved for issuance pursuant to outstanding options and RSUs. | |||||||||||||
Our 2012 Equity Incentive Plan, or 2012 Plan, provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, RSUs, performance-based stock awards and other forms of equity compensation, or collectively, stock awards. In addition, the 2012 Plan provides for the grant of performance cash awards. Incentive stock options may be granted only to employees. All other awards may be granted to employees, including officers, as well as directors and consultants. The share reserve may increase to the extent that outstanding stock options under the 2005 Plan expire or terminate unexercised. The share reserve also automatically increases on January 1 of each year until January 1, 2022, by up to 5% of the total number of shares of the common stock outstanding on December 31 of the preceding calendar year as determined by the board of directors. As of September 30, 2013, there were 20,981,151 total shares of common stock authorized for issuance under the 2012 Plan. | |||||||||||||
Our 2012 Employee Stock Purchase Plan, or 2012 ESPP, authorizes the issuance of shares of common stock pursuant to purchase rights granted to our employees. The number of shares of common stock reserved for issuance automatically increases on January 1 of each calendar year until January 1, 2022, by up to 1% of the total number of shares of the common stock outstanding on December 31 of the preceding calendar year. The price at which common stock is purchased under the 2012 ESPP is equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. Offering periods are six months long and begin on February 1 and August 1 of each year. As of September 30, 2013, we had 6,263,677 total shares of common stock reserved for issuance under the 2012 ESPP. | |||||||||||||
Stock Options | |||||||||||||
The stock options are exercisable at a price equal to the market value of the underlying shares of common stock on the date of the grant as determined by our board of directors or, for those stock options issued subsequent to our IPO, the closing price of our common stock as reported on the New York Stock Exchange on the date of grant. Stock options granted under our 2005 Plan and the 2012 Plan to new employees generally vest 25% one year from the date the requisite service period begins and continue to vest monthly for each month of continued employment over the remaining three years. Options granted generally are exercisable for a period of up to 10 years. Option holders under the 2005 Plan can exercise unvested options to acquire restricted stock. Upon termination of service, we have the right to repurchase at the original purchase price any unvested (but issued) shares of common stock. | |||||||||||||
A summary of the stock option activity for the nine months ended September 30, 2013 is as follows: | |||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||
Shares | Average | Average | Intrinsic Value | ||||||||||
Exercise | Remaining | (in thousands) | |||||||||||
Price | Contractual | ||||||||||||
Term (Years) | |||||||||||||
Outstanding at December 31, 2012 | 36,115,460 | $ | 5.05 | ||||||||||
Granted | 1,936,206 | 35.21 | |||||||||||
Exercised | (11,388,760 | ) | 3 | $ | 371,796 | ||||||||
Cancelled | (1,209,409 | ) | 8.13 | ||||||||||
Outstanding at September 30, 2013 | 25,453,497 | $ | 8.12 | 7.92 | $ | 1,115,754 | |||||||
Vested and expected to vest as of September 30, 2013 | 24,857,489 | $ | 7.96 | 7.87 | $ | 1,093,387 | |||||||
Vested and exercisable as of September 30, 2013 | 8,989,834 | $ | 4.25 | 7.29 | $ | 428,779 | |||||||
Aggregate intrinsic value represents the difference between the estimated fair value of our common stock and the exercise price of outstanding, in-the-money options. The weighted-average grant date fair value per share of options granted and vested were $17.33 and $3.61, respectively, for the nine months ended September 30, 2013. The total fair value of shares vested was $26.1 million for the nine months ended September 30, 2013. | |||||||||||||
As of September 30, 2013, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options was approximately $77.3 million. The weighted-average remaining vesting period of unvested stock options at September 30, 2013 was 2.63 years. | |||||||||||||
Under our 2005 Plan, we issue shares of restricted stock as a result of the cash exercise of unvested stock options. The proceeds initially are recorded as a liability from the early exercise of stock options and reclassified to common stock as our repurchase right lapses. A summary of the restricted stock activity for the nine months ended September 30, 2013 is as follows: | |||||||||||||
Shares | Weighted-Average | ||||||||||||
Outstanding | Grant Date Fair Value | ||||||||||||
Balance at December 31, 2012 | 235,066 | $ | 1.49 | ||||||||||
Vested | (116,103 | ) | 1.59 | ||||||||||
Balance at September 30, 2013 | 118,963 | $ | 1.39 | ||||||||||
RSUs | |||||||||||||
Number of | Weighted- Average Grant Date Fair Value | Aggregate | |||||||||||
Shares | Intrinsic Value | ||||||||||||
(in thousands) | |||||||||||||
Outstanding at December 31, 2012 | 1,457,870 | $ | 16.89 | ||||||||||
Granted | 3,719,856 | 34.95 | |||||||||||
Vested | (266,903 | ) | 11.13 | $ | 10,622 | ||||||||
Forfeited | (155,301 | ) | 33.92 | ||||||||||
Outstanding at September 30, 2013 | 4,755,522 | $ | 30.6 | $ | 247,049 | ||||||||
Expected to vest as of September 30, 2013 | 4,396,974 | $ | 228,423 | ||||||||||
RSUs granted under the 2005 Plan and the 2012 Plan to employees generally vest annually over a four-year period. As of September 30, 2013, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs was approximately $118.1 million and the weighted-average remaining vesting period was 3.59 years. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | |||||||||||
Stock-Based Compensation | ' | |||||||||||
Stock-Based Compensation | ||||||||||||
We use the Black-Scholes options pricing model to estimate the fair value of our stock-based awards. This model incorporates various assumptions including expected volatility, expected term, risk-free interest rates and expected dividend yields. The following weighted-average assumptions were used for each respective period to calculate our stock-based compensation for each stock option grant: | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Stock Options: | ||||||||||||
Expected volatility | 51% - 52% | 54% | 51% - 52% | 54% - 57% | ||||||||
Expected term (in years) | 6.08 | 6.05 | 6.01 | 6.05 | ||||||||
Risk-free interest rate | 1.71% - 2.05% | 0.87% - 0.93% | 0.91% - 2.05% | 0.87% - 1.18% | ||||||||
Dividend yield | — | — | — | — | ||||||||
The following weighted-average assumptions were used to calculate our stock-based compensation for each stock purchase right granted under the 2012 ESPP: | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
ESPP: | ||||||||||||
Expected volatility | 35% - 39% | 42 | % | 35% - 42% | 42 | % | ||||||
Expected term (in years) | 0.5 | 0.58 | 0.5 | 0.58 | ||||||||
Risk-free interest rate | 0.08% - 0.11% | 0.16 | % | 0.08% - 0.16% | 0.16 | % | ||||||
Dividend yield | — | — | — | — | ||||||||
Expected volatility. We use the historic volatility of publicly traded peer companies as an estimate for expected volatility. In considering peer companies, characteristics such as industry, stage of development, size and financial leverage are considered. We intend to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of our own common stock share price becomes available. | ||||||||||||
Expected term. We estimate the expected term using the simplified method due to the lack of historical exercise activity for our company. The simplified method calculates the expected term as the mid-point between the vesting date and the contractual expiration date of the award. | ||||||||||||
Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the stock-based award. | ||||||||||||
Expected dividend yield. Our expected dividend yield is zero, as we have not and do not currently intend to declare dividends in the foreseeable future. | ||||||||||||
Expected forfeiture rate. We consider our pre-vesting forfeiture history to determine our expected forfeiture rate. | ||||||||||||
Fair value of common stock. Prior to our initial public offering in June 2012, the fair value of our common stock was determined by our board of directors, which intended all options granted to be exercisable at a price per share not less than the per share fair value of the common stock underlying those options on the date of grant. The valuations of our common stock were determined in accordance with the guidelines outlined in the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. The assumptions used in the valuation model are based on future expectations combined with management judgment. | ||||||||||||
For stock options granted subsequent to our initial public offering, the fair value is based on the closing price of our common stock as reported on the New York Stock Exchange on the date of grant. |
Net_Income_Loss_Per_Share_Attr
Net Income (Loss) Per Share Attributable to Common Stockholders | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income (Loss) Per Share Attributable to Common Stockholders | ' | |||||||||||||||
Net Loss Per Share Attributable to Common Stockholders | ||||||||||||||||
The following tables present the calculation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share data): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (14,713 | ) | $ | (13,053 | ) | $ | (49,476 | ) | $ | (27,417 | ) | ||||
Accretion of redeemable convertible preferred stock | — | — | — | (308 | ) | |||||||||||
Net loss attributable to common stockholders—basic and diluted | $ | (14,713 | ) | $ | (13,053 | ) | $ | (49,476 | ) | $ | (27,725 | ) | ||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding—basic and diluted | 137,456,531 | 117,698,005 | 134,036,466 | 57,089,411 | ||||||||||||
Net loss per share attributable to common stockholders: | ||||||||||||||||
Basic | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.37 | ) | $ | (0.49 | ) | ||||
Diluted | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.37 | ) | $ | (0.49 | ) | ||||
Potentially dilutive securities that are not included in the calculation of diluted net loss per share because doing so would be antidilutive are as follows: | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Common stock options | 25,453,497 | 37,279,442 | ||||||||||||||
Restricted stock units | 4,755,522 | 1,134,851 | ||||||||||||||
Common stock subject to repurchase | 118,963 | 349,165 | ||||||||||||||
ESPP obligations | 236,006 | 468,704 | ||||||||||||||
Total potentially dilutive securities | 30,563,988 | 39,232,162 | ||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
We compute our provision for income taxes by applying the estimated annual effective tax rate to income from recurring operations and adjust the provision for discrete tax items recorded in the period. Our effective tax rate for the three and nine months ended September 30, 2013 was (5)% and (4)% respectively, which was lower than the federal statutory tax rate of 34%. The lower tax rate was primarily attributable to our loss from operations, a foreign tax rate differential and non-deductible expenses arising from stock-based compensation, partially offset by state income taxes. | |
Our effective tax rate for the three and nine months ended September 30, 2012 was (3)% and (2)%, respectively. The lower tax rate was primarily attributable to our loss from operations, a foreign tax rate differential and non-deductible expenses arising from stock-based compensation, partially offset by state income taxes and California tax credits. | |
We are currently under examination by the Internal Revenue Service for the year ended June 30, 2011 and six months ended December 31, 2011. There are differing interpretations of tax laws and regulations, and as a result, disputes may arise with these tax authorities involving issues of the timing and amount of deductions and allocations of income among various tax jurisdictions. We periodically evaluate our exposures associated with our tax filing positions. | |
We record liabilities related to uncertain tax positions in accordance with the income tax guidance which clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements by prescribing a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. We believe we have provided adequate reserves for our income tax uncertainties in all open tax years. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Commitments and Contingencies | ' | |||||||||||
Commitments and Contingencies | ||||||||||||
Leases | ||||||||||||
We lease facilities for data center capacity and office space under non-cancelable operating lease agreements with various expiration dates. Annual future minimum payments under these operating leases as of September 30, 2013 (in thousands) are presented in the table below. Included in the table below are future minimum lease payments under non-cancelable subleases as of September 30, 2013 of $3.8 million. | ||||||||||||
Data Centers | Office Leases | Total | ||||||||||
Fiscal Period: | ||||||||||||
Remaining three months ended December 31, 2013 | $ | 2,534 | $ | 1,468 | $ | 4,002 | ||||||
2014 | 12,110 | 10,473 | 22,583 | |||||||||
2015 | 4,713 | 12,946 | 17,659 | |||||||||
2016 | 1,193 | 13,303 | 14,496 | |||||||||
2017 | 57 | 13,537 | 13,594 | |||||||||
Thereafter | — | 53,541 | 53,541 | |||||||||
Total minimum lease payments | $ | 20,607 | $ | 105,268 | $ | 125,875 | ||||||
Lease commitments of $8.8 million related to the lease for our former San Diego office, which we exited in 2012, are included in the table above. | ||||||||||||
Legal Proceedings | ||||||||||||
From time to time, we are party to litigation and other legal proceedings in the ordinary course of business. While the results of any litigation or other legal proceedings are uncertain, management does not believe the ultimate resolution of any pending legal matters is likely to have a material adverse effect on our financial position, results of operations or cash flows, except for those matters for which we have recorded a loss contingency. We accrue for loss contingencies when it is both probable that we will incur the loss and when we can reasonably estimate the amount of the loss. | ||||||||||||
Generally, our subscription agreements require us to indemnify our customers for third-party intellectual property infringement claims. Any adverse determination related to intellectual property claims or litigation could prevent us from offering our service and adversely affect our financial condition and results of operations. |
Information_about_Geographic_A
Information about Geographic Areas | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segments, Geographical Areas [Abstract] | ' | |||||||||||||||
Information about Geographic Areas | ' | |||||||||||||||
Information about Geographic Areas | ||||||||||||||||
Revenues by geographic area, based on the billing location of the customer, were as follows for the periods presented (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues by geography: | ||||||||||||||||
North America | $ | 76,851 | $ | 45,509 | $ | 208,851 | $ | 120,124 | ||||||||
EMEA (1) | 27,621 | 16,133 | 72,403 | 42,027 | ||||||||||||
Asia Pacific and other | 6,787 | 2,703 | 18,166 | 6,399 | ||||||||||||
Total revenues | $ | 111,259 | $ | 64,345 | $ | 299,420 | $ | 168,550 | ||||||||
(1) Europe, the Middle East and Africa, or EMEA | ||||||||||||||||
Long-lived assets by geographic area were as follows (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Long-lived assets: | ||||||||||||||||
North America | $ | 47,086 | $ | 30,209 | ||||||||||||
EMEA | 17,970 | 10,513 | ||||||||||||||
Asia Pacific and other | 3,586 | 1,620 | ||||||||||||||
Total long-lived assets | $ | 68,642 | $ | 42,342 | ||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Principles of Consolidation | ' | ||
Principles of Consolidation | |||
The condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles, or GAAP, and include our accounts and the accounts of our wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. | |||
Use of Estimates | ' | ||
Use of Estimates | |||
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Items subject to the use of estimates include revenue recognition, allowance for trade accounts receivable, accrual for service level credits, useful lives of fixed assets, certain accrued liabilities including our facility exit obligation, the determination of the provision for income taxes, the fair value of stock awards, loss contingencies | |||
Foreign Currency Translation | ' | ||
Foreign Currency Translation | |||
The functional currencies for our foreign subsidiaries are primarily their local currencies. Assets and liabilities of the wholly-owned foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at each period end. Amounts classified in stockholders’ equity are translated at historical exchange rates. Revenues and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded in accumulated other comprehensive loss as a component of stockholders’ equity. Foreign currency transaction gains and losses are included in interest and other income (expense), net within the condensed consolidated statements of comprehensive loss. | |||
Revenue Recognition | ' | ||
Revenue Recognition | |||
We derive our revenues from two sources: (i) subscriptions and (ii) professional services and other. Subscription revenues are primarily comprised of subscription fees that give customers access to the ordered subscription service and related support and include updates to the subscribed service during the subscription term. | |||
Our contracts typically do not give the customer the right to take possession of the software supporting the solution. Professional services and other revenues consist of fees associated with the implementation and configuration of our service. Professional services and other revenues also include customer training and attendance and sponsorship fees for Knowledge, our annual user conference. | |||
We commence revenue recognition when all of the following conditions are met: | |||
• | There is persuasive evidence of an arrangement; | ||
• | The service has been provided to the customer; | ||
• | The collection of related fees is reasonably assured; and | ||
• | The amount of fees to be paid by the customer is fixed or determinable. | ||
We use a signed contract together with either a signed order form or a purchase order, as evidence of an arrangement for a new customer. In subsequent transactions with an existing customer, including an upsell or a renewal, we consider the existing signed contract and either the new signed order form or new purchase order as evidence of an arrangement. | |||
We recognize subscription revenues ratably over the contract term beginning on the commencement date of each contract, which is the date we make our service available to our customers. Once our service is available to customers, we record amounts due in accounts receivable and in deferred revenue. We price our professional services primarily on a time-and-materials basis. We recognize professional services and other revenues as the services are delivered using a proportional performance model. Such services are delivered over a short period of time. In instances where final acceptance of the services are required before revenues are recognized, we defer professional services revenues and the associated costs until all acceptance criteria have been met. | |||
We assess collectibility based on a number of factors such as past collection history with the customer and creditworthiness of the customer. If we determine collectibility is not reasonably assured, we defer revenue recognition until collectibility becomes reasonably assured. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Our arrangements do not include general rights of return. | |||
We have multiple element arrangements comprised of subscription fees and professional services. We account for subscription and professional services revenues as separate units of accounting. To qualify as a separate unit of accounting, the delivered item must have value to the customer on a standalone basis. We have concluded that our subscription service has standalone value as it is routinely sold separately by us. In addition, the applications offered through this subscription service are fully functional without any additional development, modification or customization. We provide customers access to our subscription service at the beginning of the contract term. In determining whether professional services have standalone value, we considered the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, the timing of when the professional services contract was signed in comparison to the subscription service start date and the contractual dependence of the subscription service on the customer's satisfaction with the professional services work. Our professional services, including implementation and configuration services, are not so unique and complex that other vendors cannot provide them. In some instances, customers independently contract with third-party vendors to do the implementation and we regularly outsource implementation services to contracted third-party vendors. As a result, we concluded professional services, including implementation and configuration services, have standalone value. | |||
We determine the selling price of each deliverable in the arrangement using the selling price hierarchy. Under the selling price hierarchy, the selling price for each deliverable is determined using vendor-specific objective evidence, or VSOE, of selling price or third-party evidence, or TPE, of selling price if VSOE does not exist. If neither VSOE nor TPE of selling price exists for a deliverable, the selling price is determined using the best estimate of selling price, or BESP. The selling price for each unit of account is based on the BESP since VSOE and TPE are not available for our subscription service or professional services and other. The BESP for each deliverable is determined primarily by considering the historical selling price of these deliverables in similar transactions as well as other factors, including, but not limited to, market competition, review of stand-alone sales and current pricing practices. In determining the appropriate pricing structure, we consider the extent of competitive pricing of similar products and marketing analyses. The total arrangement fee for these multiple element arrangements is then allocated to the separate units of account based on the relative selling price. We price our subscription service using a scaled model based on the duration of the subscription term and we frequently extend discounts to our customers based on the number of users. | |||
In limited circumstances, we grant certain customers the right to deploy our subscription service on the customers’ own servers without significant penalty. We have analyzed all of the elements in these particular multiple element arrangements and determined we do not have sufficient VSOE of fair value to allocate revenue to our subscription service and professional services. We defer all revenue under the arrangement until the last element in the transaction has been delivered or started to be delivered. Once the subscription service and the associated professional services have commenced, the entire fee from the arrangement is recognized ratably over the remaining period of the arrangement. | |||
Deferred Revenue | ' | ||
Deferred Revenue | |||
Deferred revenue consists primarily of payments received in advance of revenue recognition for our subscriptions and professional services and other revenues and is recognized as the revenue recognition criteria are met. We generally invoice our customers in annual installments for our subscription service. Accordingly, the deferred revenue balance does not represent the total contract value of annual or multi-year subscription license agreements. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current portion of deferred revenue and the remaining portion is recorded as long-term. | |||
Deferred Commissions | ' | ||
Deferred Commissions | |||
Deferred commissions are the incremental costs that are directly associated with our non-cancelable subscription contracts with customers and consist of sales commissions paid to our direct sales force and referral fees paid to independent third-parties. The majority of commissions and referral fees are deferred and amortized on a straight-line basis over the non-cancelable terms of the related customer contracts. Amortization of deferred commissions is included in sales and marketing expense in the condensed consolidated statements of comprehensive loss. | |||
Fair Value Measurements | ' | ||
Fair Value Measurements | |||
We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a fair value hierarchy that is based on three levels of inputs, of which the first two are considered observable and the last unobservable. The three levels of the fair value hierarchy are as follows: | |||
Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; | |||
Level 2—Inputs other than Level 1 that are directly or indirectly observable, such as quoted prices for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities, such as interest rates, yield curves and foreign currency spot rates; and | |||
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. | |||
Cash and Cash Equivalents | ' | ||
Cash and Cash Equivalents | |||
Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. Cash and cash equivalents are stated at fair value. | |||
Investments | ' | ||
Investments | |||
Investments consist of commercial paper, corporate notes and bonds and U.S. government agency securities. We classify investments as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. All investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are in accumulated other comprehensive income (loss), a component of stockholders’ equity. We evaluate our investments to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in interest and other income (expense), net in the condensed consolidated statements of comprehensive loss. | |||
Accounts Receivable | ' | ||
Accounts Receivable | |||
We record trade accounts receivable at the net invoice value and such receivables are non-interest bearing. We consider receivables past due based on the contractual payment terms. We review our exposure to accounts receivable and reserve for specific amounts if collectibility is no longer reasonably assured. | |||
Property and Equipment | ' | ||
Property and Equipment | |||
Property and equipment, net, are stated at cost, subject to review of impairment, and depreciated using the straight-line method over the estimated useful lives of the assets as follows: | |||
Computer equipment and software | 3—5 years | ||
Furniture and fixtures | 3—5 years | ||
Leasehold improvements | shorter of the lease term or estimated useful life | ||
When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operating expenses. Repairs and maintenance are charged to operations as incurred. | |||
Capitalized Software Costs | ' | ||
Capitalized Software Costs | |||
Costs incurred to develop our internal administration, finance and accounting systems are capitalized during the application development stage and amortized over the software’s estimated useful life of three to five years. | |||
Leases | ' | ||
Leases | |||
Leases are reviewed and classified as capital or operating at their inception. For leases that contain rent escalations or periods during the lease term where rent is not required, we recognize rent expense based on allocating the total rent payable on a straight-line basis over the term of the lease excluding lease extension periods. The difference between rent payments and straight-line rent expense is recorded as deferred rent in the condensed consolidated balance sheets. Deferred rent that will be recognized during the succeeding 12-month period is recorded as the current portion of deferred rent and the remainder is recorded as long-term deferred rent. | |||
Under certain leases, we also receive incentives for leasehold improvements, which are recognized as deferred rent, if we determine they are owned by us, and amortized on a straight-line basis over the shorter of the lease term or estimated useful life as a reduction to rent expense. The leasehold improvements are included in property and equipment, net. | |||
Goodwill, Intangible Assets and Impairment Assessments | ' | ||
Goodwill, Intangible Assets and Impairment Assessments | |||
Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. We evaluate and test the recoverability of its goodwill for impairment at least annually, or more frequently if circumstances indicate that goodwill may not be recoverable. | |||
Intangible assets are amortized over their useful lives. Each period we evaluate the estimated remaining useful life of purchased intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. | |||
The carrying amounts of these assets are periodically reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. | |||
Stock-based Compensation | ' | ||
Stock-based Compensation | |||
We recognize compensation expense related to stock options and restricted stock units, or RSUs, on a straight-line basis over the requisite service period, which is generally the vesting term of four years. We recognize compensation expense related to shares issued pursuant to the employee stock purchase plan, or ESPP, on a straight-line basis over the offering period. Compensation expense is recognized, net of forfeiture activity estimated to be 4% annually. We estimate the fair value of options using the Black-Scholes options pricing model and fair value of restricted stock unit awards using the value of our common stock on the date of grant. | |||
Net Income (Loss) Per Share Attributable to Common Stockholders | ' | ||
Net Income (Loss) Per Share Attributable to Common Stockholders | |||
We compute net income attributable to common stockholders using the two-class method required for participating securities. We consider our convertible preferred stock that was outstanding prior to the close of our initial public offering and shares of common stock subject to repurchase resulting from the early exercise of stock options to be participating securities since they contain non-forfeitable rights to dividends or dividend equivalents in the event we declare a dividend for common stock. In accordance with the two-class method, earnings allocated to these participating securities are subtracted from net income after deducting preferred stock dividends and accretion to the redemption value of the Series A, Series B and Series C to determine total undistributed earnings to be allocated to common stockholders. The holders of our convertible preferred stock did not have a contractual obligation to share in our net losses and such shares were excluded from the computation of basic earnings per share in periods of net loss. | |||
Basic net income (loss) per share attributable to common stockholders is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. All participating securities are excluded from basic weighted-average common shares outstanding. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for the effects of dilutive common shares, which are comprised of outstanding common stock options, RSUs, common stock subject to repurchase and ESPP obligations. The dilutive potential common shares are computed using the treasury stock method. The effects of outstanding common stock options, RSUs, common stock subject to repurchase and ESPP obligations are excluded from the computation of diluted net income (loss) per common share in periods in which the effect would be antidilutive. | |||
Concentration of Credit Risk and Significant Customers | ' | ||
Concentration of Credit Risk and Significant Customers | |||
Financial instruments potentially exposing us to credit risk consist primarily of cash equivalents, investments and accounts receivable. We maintain cash, cash equivalents and investments at financial institutions that management believes to have good credit ratings and represent minimal risk of loss of principal. We invest in securities with a minimum rating of A by Standard & Poor's and A-2 by Moody's. | |||
Credit risk arising from accounts receivable is mitigated due to our large number of customers and their dispersion across various industries and geographies. As of September 30, 2013 and December 31, 2012, there were no customers that represented more than 10% of our accounts receivable balance. During the three and nine months ended September 30, 2013 and 2012, there were no customers that individually exceeded 10% of our revenues. | |||
We review the composition of the accounts receivable balance, historical write-off experience and the potential risk of loss associated with delinquent accounts to determine if an allowance for doubtful accounts is necessary. Individual accounts receivable are written off when we become aware of a specific customer’s inability to meet its financial obligation and all collection efforts are exhausted. As of September 30, 2013 and December 31, 2012, the allowance for doubtful accounts was $0.5 million and $0.7 million, respectively. | |||
Warranties and Indemnification | ' | ||
Warranties and Indemnification | |||
Our cloud-based service to automate enterprise IT operations is typically warranted to perform in material conformance with specifications. | |||
We include service level commitments to our customers that permit those customers to receive credits in the event we fail to meet those levels. We establish an accrual based on historical credits paid and an evaluation of the performance of our services including an assessment of the impact, if any, of any known service disruptions. As of September 30, 2013 and December 31, 2012, the service level credit accrual was $0.8 million and $1.2 million, respectively. | |||
We have also agreed to indemnify our directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as a director or officer of our company or that person’s services provided to any other company or enterprise at our request. We maintain director and officer insurance coverage that may enable us to recover a portion of any future amounts paid. The fair values of these obligations are not material as of each balance sheet date. | |||
Our arrangements include provisions indemnifying customers against intellectual property and other third-party claims. We have not incurred any costs as a result of such indemnifications and have not recorded any liabilities related to such obligations in the condensed consolidated financial statements. | |||
Income Taxes | ' | ||
Income Taxes | |||
We use the asset and liability method of accounting for income taxes in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the condensed consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be reversed. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. | |||
Recent Accounting Pronouncements | ' | ||
Recent Accounting Pronouncements | |||
In July 2013, the FASB issued a new accounting standard update on the financial statement presentation of unrecognized tax benefits. The new guidance provides that a liability related to an unrecognized tax benefit would be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward, if such settlement is required or expected in the event the uncertain tax position is disallowed. The new guidance becomes effective for us on January 1, 2014 and it should be applied prospectively to unrecognized tax benefits that exist at the effective date with retrospective application permitted. We are currently assessing the impact of this new guidance. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Summary of Property and Equipment Useful Life | ' | |||||||
Property and equipment, net, are stated at cost, subject to review of impairment, and depreciated using the straight-line method over the estimated useful lives of the assets as follows: | ||||||||
Computer equipment and software | 3—5 years | |||||||
Furniture and fixtures | 3—5 years | |||||||
Leasehold improvements | shorter of the lease term or estimated useful life | |||||||
When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operating expenses. Repairs and maintenance are charged to operations as incurred. | ||||||||
Property and equipment, net consists of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Computer equipment and software | $ | 83,406 | $ | 46,541 | ||||
Furniture and fixtures | 9,084 | 4,691 | ||||||
Leasehold improvements | 4,924 | 2,649 | ||||||
Construction in progress | 2,647 | 4,855 | ||||||
100,061 | 58,736 | |||||||
Less: Accumulated depreciation | (31,419 | ) | (16,394 | ) | ||||
Total property and equipment, net | $ | 68,642 | $ | 42,342 | ||||
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||
Summary of Investments | ' | |||||||||||||||
The following is a summary of our investments (in thousands): | ||||||||||||||||
30-Sep-13 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Commercial paper | $ | 55,898 | $ | 2 | $ | — | $ | 55,900 | ||||||||
Corporate notes and bonds | 215,199 | 43 | (168 | ) | 215,074 | |||||||||||
Total available-for-sale securities | $ | 271,097 | $ | 45 | $ | (168 | ) | $ | 270,974 | |||||||
31-Dec-12 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Commercial paper | $ | 72,850 | $ | — | $ | (15 | ) | $ | 72,835 | |||||||
Corporate notes and bonds | 158,038 | 8 | (98 | ) | 157,948 | |||||||||||
U.S. government agency securities | 1,001 | — | — | 1,001 | ||||||||||||
Total available-for-sale securities | $ | 231,889 | $ | 8 | $ | (113 | ) | $ | 231,784 | |||||||
Investments Classified by Contractual Maturity Date | ' | |||||||||||||||
The fair values of available-for-sale investments, by contractual maturity, are as follows: | ||||||||||||||||
30-Sep-13 | ||||||||||||||||
Due in 1 year or less | $ | 138,355 | ||||||||||||||
Due in 1 year through 3 years | 132,619 | |||||||||||||||
Total | $ | 270,974 | ||||||||||||||
Fair Values and Gross Unrealized Losses of Available-for-Sale Securities Aggregated by Investment Category | ' | |||||||||||||||
As of September 30, 2013 and December 31, 2012, we had certain available-for-sale securities in a gross unrealized loss position, all of which had been in such position for less than twelve months. There were no impairments considered other-than-temporary as it is more likely than not we will hold the securities until maturity or a recovery of the cost basis. The following table shows the fair values and the gross unrealized losses of these available-for-sale securities aggregated by investment types (in thousands): | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Fair Value | Gross | Fair Value | Gross | |||||||||||||
Unrealized | Unrealized | |||||||||||||||
Losses | Losses | |||||||||||||||
Commercial paper | $ | — | $ | — | $ | 36,753 | $ | (15 | ) | |||||||
Corporate notes and bonds | 164,230 | (168 | ) | 137,558 | (98 | ) | ||||||||||
Total | $ | 164,230 | $ | (168 | ) | $ | 174,311 | $ | (113 | ) | ||||||
Acquisition_Tables
Acquisition (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Business Combinations [Abstract] | ' | |||||
Schedule of Purchase Price Allocation | ' | |||||
The following table summarizes the allocation of the purchase price to the fair value of the tangible and intangible assets acquired and liabilities assumed as of the acquisition date: | ||||||
Purchase Price Allocation | Useful Lives | |||||
(in thousands) | (in years) | |||||
Net tangible liabilities acquired | $ | (595 | ) | |||
Intangible assets: | ||||||
Developed technology | 5,530 | 4 | ||||
Contracts | 297 | 1.5 | ||||
Non-compete agreements | 31 | 1.5 | ||||
Goodwill | 8,218 | |||||
Net deferred tax liabilities | (139 | ) | ||||
Total purchase price | $ | 13,342 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Schedule of Goodwill | ' | |||||||||||
Goodwill balance as of September 30, 2013 and December 31, 2012 is presented below (in thousands): | ||||||||||||
Carrying Amount | ||||||||||||
Balance as of December 31, 2012 | $ | — | ||||||||||
Goodwill acquired | 8,218 | |||||||||||
Foreign currency translation adjustments | 308 | |||||||||||
Balance as of September 30, 2013 | $ | 8,526 | ||||||||||
Schedule of Intangible Assets | ' | |||||||||||
Intangible assets consisted of the following as of September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||
September 30, 2013 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Developed technology | $ | 5,737 | $ | (358 | ) | $ | 5,379 | |||||
Contracts | 308 | (51 | ) | 257 | ||||||||
Non-compete agreements | 32 | (5 | ) | 27 | ||||||||
Acquisition-related intangible assets | 6,077 | (414 | ) | 5,663 | ||||||||
Other intangible assets | 650 | (124 | ) | 526 | ||||||||
Total intangible assets | $ | 6,727 | $ | (538 | ) | $ | 6,189 | |||||
December 31, 2012 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Other intangible assets | $ | 650 | $ | (54 | ) | $ | 596 | |||||
Total intangible assets | $ | 650 | $ | (54 | ) | $ | 596 | |||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Disclosure Summary Of Accrued Expenses And Other Current Liabilities [Abstract] | ' | |||||||
Summary of Accrued Expenses and Other Current Liabilities | ' | |||||||
Accrued expenses and other current liabilities consist of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Bonuses and commissions | $ | 15,001 | $ | 10,999 | ||||
Accrued compensation | 11,630 | 18,392 | ||||||
Other employee expenses | 6,807 | 7,796 | ||||||
Current portion of facility exit obligation | 1,252 | 1,515 | ||||||
Other | 14,974 | 9,357 | ||||||
Total accrued expenses and other current liabilities | $ | 49,664 | $ | 48,059 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Summary of Property and Equipment, Net | ' | |||||||
Property and equipment, net, are stated at cost, subject to review of impairment, and depreciated using the straight-line method over the estimated useful lives of the assets as follows: | ||||||||
Computer equipment and software | 3—5 years | |||||||
Furniture and fixtures | 3—5 years | |||||||
Leasehold improvements | shorter of the lease term or estimated useful life | |||||||
When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operating expenses. Repairs and maintenance are charged to operations as incurred. | ||||||||
Property and equipment, net consists of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Computer equipment and software | $ | 83,406 | $ | 46,541 | ||||
Furniture and fixtures | 9,084 | 4,691 | ||||||
Leasehold improvements | 4,924 | 2,649 | ||||||
Construction in progress | 2,647 | 4,855 | ||||||
100,061 | 58,736 | |||||||
Less: Accumulated depreciation | (31,419 | ) | (16,394 | ) | ||||
Total property and equipment, net | $ | 68,642 | $ | 42,342 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||
The components of accumulated other comprehensive loss, net of tax, consist of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Foreign currency translation adjustment | $ | (539 | ) | $ | 69 | |||
Net unrealized loss on investments | (123 | ) | (105 | ) | ||||
Accumulated other comprehensive loss, net of tax | $ | (662 | ) | $ | (36 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | |||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||
The following table presents our fair value hierarchy for our assets and liabilities measured at fair value on a recurring basis at September 30, 2013 (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 45,694 | $ | — | $ | — | 45,694 | |||||||||
Money market funds | 36,089 | — | — | 36,089 | ||||||||||||
Commercial paper | — | 39,311 | — | 39,311 | ||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | — | 16,589 | — | 16,589 | ||||||||||||
Corporate notes and bonds | — | 82,455 | — | 82,455 | ||||||||||||
Long-term investments: | ||||||||||||||||
Corporate notes and bonds | — | 132,619 | — | 132,619 | ||||||||||||
Total | $ | 81,783 | $ | 270,974 | $ | — | $ | 352,757 | ||||||||
The following table presents our fair value hierarchy for our assets and liabilities measured at fair value on a recurring basis at December 31, 2012 (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 47,478 | $ | — | $ | — | $ | 47,478 | ||||||||
Money market funds | 35,429 | — | — | 35,429 | ||||||||||||
Commercial paper | — | 36,082 | — | 36,082 | ||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | — | 36,753 | — | 36,753 | ||||||||||||
Corporate notes and bonds | — | 157,948 | — | 157,948 | ||||||||||||
U.S. government agency securities | — | 1,001 | — | 1,001 | ||||||||||||
Total | $ | 82,907 | $ | 231,784 | $ | — | $ | 314,691 | ||||||||
Common_Stock_Tables
Common Stock (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Disclosure Common Stock Outstanding And Reserved Shares Of Common Stock For Future Issuance [Abstract] | ' | ||
Common Stock Outstanding and Reserved Shares of Common Stock for Future Issuance | ' | ||
As of September 30, 2013, we had 138,736,768 shares of common stock outstanding and had reserved shares of common stock for future issuance as follows: | |||
30-Sep-13 | |||
Stock option plans: | |||
Options outstanding | 25,453,497 | ||
RSUs | 4,755,522 | ||
Stock awards available for future grants: | |||
2005 Stock Option Plan(1) | — | ||
2012 Equity Incentive Plan(1) | 13,405,017 | ||
2012 Employee Stock Purchase Plan(1) | 5,549,918 | ||
Total reserved shares of common stock for future issuance | 49,163,954 | ||
-1 | Refer to Note 11 for a description of these plans. |
Stock_Awards_Tables
Stock Awards (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Information About Outstanding And Vested Stock Options | ' | ||||||||||||
A summary of the stock option activity for the nine months ended September 30, 2013 is as follows: | |||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||
Shares | Average | Average | Intrinsic Value | ||||||||||
Exercise | Remaining | (in thousands) | |||||||||||
Price | Contractual | ||||||||||||
Term (Years) | |||||||||||||
Outstanding at December 31, 2012 | 36,115,460 | $ | 5.05 | ||||||||||
Granted | 1,936,206 | 35.21 | |||||||||||
Exercised | (11,388,760 | ) | 3 | $ | 371,796 | ||||||||
Cancelled | (1,209,409 | ) | 8.13 | ||||||||||
Outstanding at September 30, 2013 | 25,453,497 | $ | 8.12 | 7.92 | $ | 1,115,754 | |||||||
Vested and expected to vest as of September 30, 2013 | 24,857,489 | $ | 7.96 | 7.87 | $ | 1,093,387 | |||||||
Vested and exercisable as of September 30, 2013 | 8,989,834 | $ | 4.25 | 7.29 | $ | 428,779 | |||||||
Summary of Restricted Stock Activity | ' | ||||||||||||
A summary of the restricted stock activity for the nine months ended September 30, 2013 is as follows: | |||||||||||||
Shares | Weighted-Average | ||||||||||||
Outstanding | Grant Date Fair Value | ||||||||||||
Balance at December 31, 2012 | 235,066 | $ | 1.49 | ||||||||||
Vested | (116,103 | ) | 1.59 | ||||||||||
Balance at September 30, 2013 | 118,963 | $ | 1.39 | ||||||||||
Restricted Stock Unit Table | ' | ||||||||||||
RSUs | |||||||||||||
Number of | Weighted- Average Grant Date Fair Value | Aggregate | |||||||||||
Shares | Intrinsic Value | ||||||||||||
(in thousands) | |||||||||||||
Outstanding at December 31, 2012 | 1,457,870 | $ | 16.89 | ||||||||||
Granted | 3,719,856 | 34.95 | |||||||||||
Vested | (266,903 | ) | 11.13 | $ | 10,622 | ||||||||
Forfeited | (155,301 | ) | 33.92 | ||||||||||
Outstanding at September 30, 2013 | 4,755,522 | $ | 30.6 | $ | 247,049 | ||||||||
Expected to vest as of September 30, 2013 | 4,396,974 | $ | 228,423 | ||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | |||||||||||
Estimates Weighted-average Fair Value Per Share of Options Granted | ' | |||||||||||
The following weighted-average assumptions were used for each respective period to calculate our stock-based compensation for each stock option grant: | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Stock Options: | ||||||||||||
Expected volatility | 51% - 52% | 54% | 51% - 52% | 54% - 57% | ||||||||
Expected term (in years) | 6.08 | 6.05 | 6.01 | 6.05 | ||||||||
Risk-free interest rate | 1.71% - 2.05% | 0.87% - 0.93% | 0.91% - 2.05% | 0.87% - 1.18% | ||||||||
Dividend yield | — | — | — | — | ||||||||
The following weighted-average assumptions were used to calculate our stock-based compensation for each stock purchase right granted under the 2012 ESPP: | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
ESPP: | ||||||||||||
Expected volatility | 35% - 39% | 42 | % | 35% - 42% | 42 | % | ||||||
Expected term (in years) | 0.5 | 0.58 | 0.5 | 0.58 | ||||||||
Risk-free interest rate | 0.08% - 0.11% | 0.16 | % | 0.08% - 0.16% | 0.16 | % | ||||||
Dividend yield | — | — | — | — | ||||||||
Net_Income_Loss_Per_Share_Attr1
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Calculation of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders | ' | |||||||||||||||
The following tables present the calculation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share data): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | (14,713 | ) | $ | (13,053 | ) | $ | (49,476 | ) | $ | (27,417 | ) | ||||
Accretion of redeemable convertible preferred stock | — | — | — | (308 | ) | |||||||||||
Net loss attributable to common stockholders—basic and diluted | $ | (14,713 | ) | $ | (13,053 | ) | $ | (49,476 | ) | $ | (27,725 | ) | ||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding—basic and diluted | 137,456,531 | 117,698,005 | 134,036,466 | 57,089,411 | ||||||||||||
Net loss per share attributable to common stockholders: | ||||||||||||||||
Basic | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.37 | ) | $ | (0.49 | ) | ||||
Diluted | $ | (0.11 | ) | $ | (0.11 | ) | $ | (0.37 | ) | $ | (0.49 | ) | ||||
Summary of Potentially Dilutive Securities | ' | |||||||||||||||
Potentially dilutive securities that are not included in the calculation of diluted net loss per share because doing so would be antidilutive are as follows: | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Common stock options | 25,453,497 | 37,279,442 | ||||||||||||||
Restricted stock units | 4,755,522 | 1,134,851 | ||||||||||||||
Common stock subject to repurchase | 118,963 | 349,165 | ||||||||||||||
ESPP obligations | 236,006 | 468,704 | ||||||||||||||
Total potentially dilutive securities | 30,563,988 | 39,232,162 | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Annual Future Minimum Payments Under Operating Leases | ' | |||||||||||
Data Centers | Office Leases | Total | ||||||||||
Fiscal Period: | ||||||||||||
Remaining three months ended December 31, 2013 | $ | 2,534 | $ | 1,468 | $ | 4,002 | ||||||
2014 | 12,110 | 10,473 | 22,583 | |||||||||
2015 | 4,713 | 12,946 | 17,659 | |||||||||
2016 | 1,193 | 13,303 | 14,496 | |||||||||
2017 | 57 | 13,537 | 13,594 | |||||||||
Thereafter | — | 53,541 | 53,541 | |||||||||
Total minimum lease payments | $ | 20,607 | $ | 105,268 | $ | 125,875 | ||||||
Information_about_Geographic_A1
Information about Geographic Areas (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segments, Geographical Areas [Abstract] | ' | |||||||||||||||
Revenues by Geographic Area, Based on Billing Location of Customer | ' | |||||||||||||||
Revenues by geographic area, based on the billing location of the customer, were as follows for the periods presented (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues by geography: | ||||||||||||||||
North America | $ | 76,851 | $ | 45,509 | $ | 208,851 | $ | 120,124 | ||||||||
EMEA (1) | 27,621 | 16,133 | 72,403 | 42,027 | ||||||||||||
Asia Pacific and other | 6,787 | 2,703 | 18,166 | 6,399 | ||||||||||||
Total revenues | $ | 111,259 | $ | 64,345 | $ | 299,420 | $ | 168,550 | ||||||||
(1) Europe, the Middle East and Africa, or EMEA | ||||||||||||||||
Schedule of Long Lived Assets by Geographic Area | ' | |||||||||||||||
Long-lived assets by geographic area were as follows (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Long-lived assets: | ||||||||||||||||
North America | $ | 47,086 | $ | 30,209 | ||||||||||||
EMEA | 17,970 | 10,513 | ||||||||||||||
Asia Pacific and other | 3,586 | 1,620 | ||||||||||||||
Total long-lived assets | $ | 68,642 | $ | 42,342 | ||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Sources of revenues derived from | ' | ' | 2 | ' | ' |
Deferred revenue recognized period | '12 months | ' | ' | ' | ' |
Capitalized software costs | $0.50 | $1.10 | $2.20 | $2.30 | ' |
Current portion of deferred rent recognized period | ' | ' | '12 months | ' | ' |
Stock options vesting period | ' | ' | '4 years | ' | ' |
Compensation expense recognized, net of forfeiture activity, estimated annual percentage | ' | ' | 4.00% | ' | ' |
Service level credit accrual | $0.80 | ' | $0.80 | ' | $1.20 |
Minimum [Member] | Computer Software, Intangible Asset [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | '3 years | ' | ' |
Maximum [Member] | Computer Software, Intangible Asset [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | '5 years | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Property and Equipment, Net Estimated Useful Lives (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Computer Equipment And Software [Member] | Minimum [Member] | ' |
Property and equipment estimated useful lives | ' |
Property, Plant and Equipment, Useful Life | '3 years |
Computer Equipment And Software [Member] | Maximum [Member] | ' |
Property and equipment estimated useful lives | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Furniture and Fixtures [Member] | Minimum [Member] | ' |
Property and equipment estimated useful lives | ' |
Property, Plant and Equipment, Useful Life | '3 years |
Furniture and Fixtures [Member] | Maximum [Member] | ' |
Property and equipment estimated useful lives | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Leasehold Improvements [Member] | ' |
Property and equipment estimated useful lives | ' |
Property and Equipment useful lives | 'shorter of the lease term or estimated useful life |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Concentration (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Customer | Customer | ||
Concentration Risk [Line Items] | ' | ' | ' |
Number of customers represented more than ten percent of the accounts receivable balance | 0 | ' | 0 |
Percentage of accounts receivable customers exceed | 10.00% | ' | ' |
Percentage of revenues customers exceed | 10.00% | ' | ' |
Allowance for doubtful accounts | $0.50 | $0.70 | ' |
Customer Concentration Risk [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Number of significant revenue customers | 0 | ' | 0 |
Investments_Summary_of_Investm
Investments - Summary of Investments (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $271,097 | $231,889 |
Available-for-sale Securities, Gross Unrealized Gain | 45 | 8 |
Available-for-sale Securities, Gross Unrealized Loss | 168 | 113 |
Available-for-sale Securities | 270,974 | 231,784 |
Available For Sale Securities Maturities Term Maximum | '24 months | ' |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 138,355 | ' |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 132,619 | ' |
Available-for-sale Securities, Debt Securities | 270,974 | ' |
Commercial Paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 55,898 | 72,850 |
Available-for-sale Securities, Gross Unrealized Gain | 2 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | 15 |
Available-for-sale Securities | 55,900 | 72,835 |
Corporate notes and bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 215,199 | 158,038 |
Available-for-sale Securities, Gross Unrealized Gain | 43 | 8 |
Available-for-sale Securities, Gross Unrealized Loss | 168 | 98 |
Available-for-sale Securities | 215,074 | 157,948 |
U.S. government agency securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | ' | 1,001 |
Available-for-sale Securities, Gross Unrealized Gain | ' | 0 |
Available-for-sale Securities, Gross Unrealized Loss | ' | 0 |
Available-for-sale Securities | ' | $1,001 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Available-for-sale Securities [Abstract] | ' |
Available for sale, gross unrealized term held | '12 months |
Other-than-temporary impairments considered | $0 |
Investments_Fair_Values_and_Gr
Investments - Fair Values and Gross Unrealized Losses of Available-for-Sale Securities Aggregated by Investment Category (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | $164,230 | $174,311 |
Gross Unrealized Losses | -168 | -113 |
Commercial Paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 0 | 36,753 |
Gross Unrealized Losses | 0 | -15 |
Corporate notes and bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 164,230 | 137,558 |
Gross Unrealized Losses | ($168) | ($98) |
Acquisition_Details
Acquisition - (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Sep. 30, 2013 | Jul. 02, 2013 | Sep. 30, 2013 | Jul. 02, 2013 |
In Thousands, unless otherwise specified | Developed Technology Rights [Member] | Mirror42 Holding B.V. [Member] | Mirror42 Holding B.V. [Member] | Mirror42 Holding B.V. [Member] | Mirror42 Holding B.V. [Member] | Mirror42 Holding B.V. [Member] | Mirror42 Holding B.V. [Member] | ||
Developed Technology Rights [Member] | Contract-Based Intangible Assets [Member] | Contract-Based Intangible Assets [Member] | Noncompete Agreements [Member] | Noncompete Agreements [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | $13,300 | ' | ' | ' | ' | ' |
Net tangible liabilities acquired | ' | ' | ' | -595 | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | 5,530 | ' | 297 | ' | 31 |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '4 years | ' | ' | '1 year 6 months | ' | '1 year 6 months | ' |
Goodwill | 8,526 | 0 | ' | 8,218 | ' | ' | ' | ' | ' |
Net deferred tax liabilities | ' | ' | ' | -139 | ' | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | $13,342 | ' | ' | ' | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Goodwill [Roll Forward] | ' |
Goodwill, beginning of period | $0 |
Goodwill acquired | 8,218 |
Foreign currency translation adjustments | 308 |
Goodwill, end of period | $8,526 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | $6,727 | ' | $6,727 | ' | $650 |
Accumulated Amortization | -538 | ' | -538 | ' | -54 |
Net Carrying Amount | 6,189 | ' | 6,189 | ' | 596 |
Amortization expense | 439 | 23 | 484 | 31 | ' |
Developed Technology Rights [Member] | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 5,737 | ' | 5,737 | ' | ' |
Accumulated Amortization | -358 | ' | -358 | ' | ' |
Net Carrying Amount | 5,379 | ' | 5,379 | ' | ' |
Contract-Based Intangible Assets [Member] | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 308 | ' | 308 | ' | ' |
Accumulated Amortization | -51 | ' | -51 | ' | ' |
Net Carrying Amount | 257 | ' | 257 | ' | ' |
Noncompete Agreements [Member] | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 32 | ' | 32 | ' | ' |
Accumulated Amortization | -5 | ' | -5 | ' | ' |
Net Carrying Amount | 27 | ' | 27 | ' | ' |
Acquisition related intangible asset [Domain] | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 6,077 | ' | 6,077 | ' | ' |
Accumulated Amortization | -414 | ' | -414 | ' | ' |
Net Carrying Amount | 5,663 | ' | 5,663 | ' | ' |
Other Intangible Assets [Member] | ' | ' | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross Carrying Amount | 650 | ' | 650 | ' | 650 |
Accumulated Amortization | -124 | ' | -124 | ' | -54 |
Net Carrying Amount | $526 | ' | $526 | ' | $596 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities - (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Disclosure Summary Of Accrued Expenses And Other Current Liabilities [Abstract] | ' | ' |
Bonuses and commissions | $15,001 | $10,999 |
Accrued compensation | 11,630 | 18,392 |
Other employee expenses | 6,807 | 7,796 |
Current portion of facility exit obligation | 1,252 | 1,515 |
Other | 14,974 | 9,357 |
Total accrued expenses and other current liabilities | $49,664 | $48,059 |
Property_and_Equipment_Net_Det
Property and Equipment - Net (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | $100,061 | $58,736 |
Less: accumulated depreciation | -31,419 | -16,394 |
Total property and equipment, net | 68,642 | 42,342 |
Computer Equipment And Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 83,406 | 46,541 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 9,084 | 4,691 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 4,924 | 2,649 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | $2,647 | $4,855 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' |
Depreciation | $6,154,174.76 | $3,900,000 | $15,804,511 | $8,800,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Statement of Comprehensive Income [Abstract] | ' | ' |
Foreign currency translation adjustment | ($539) | $69 |
Net unrealized loss on investments | -123 | -105 |
Accumulated other comprehensive loss, net of tax | ($662) | ($36) |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | $270,974 | $231,784 |
Commercial Paper [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 55,900 | 72,835 |
Corporate notes and bonds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 215,074 | 157,948 |
U.S. government agency securities [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | ' | 1,001 |
Level 1 [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Total | 81,783 | 82,907 |
Level 2 [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Total | 270,974 | 231,784 |
Level 3 [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Total | 0 | 0 |
Total [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Total | 352,757 | 314,691 |
Cash [Member] | Level 1 [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 45,694 | 47,478 |
Cash [Member] | Level 2 [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash [Member] | Level 3 [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash [Member] | Total [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 45,694 | 47,478 |
Cash Equivalents [Member] | Level 1 [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 36,089 | 35,429 |
Cash Equivalents [Member] | Level 1 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash Equivalents [Member] | Level 2 [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash Equivalents [Member] | Level 2 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 39,311 | 36,082 |
Cash Equivalents [Member] | Level 3 [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash Equivalents [Member] | Level 3 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash Equivalents [Member] | Total [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 36,089 | 35,429 |
Cash Equivalents [Member] | Total [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 39,311 | 36,082 |
Short-term Investments [Member] | Level 1 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 0 | 0 |
Short-term Investments [Member] | Level 1 [Member] | Corporate notes and bonds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 0 | 0 |
Short-term Investments [Member] | Level 1 [Member] | U.S. government agency securities [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | ' | 0 |
Short-term Investments [Member] | Level 2 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 16,589 | 36,753 |
Short-term Investments [Member] | Level 2 [Member] | Corporate notes and bonds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 82,455 | 157,948 |
Short-term Investments [Member] | Level 2 [Member] | U.S. government agency securities [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | ' | 1,001 |
Short-term Investments [Member] | Level 3 [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 0 | 0 |
Short-term Investments [Member] | Level 3 [Member] | Corporate notes and bonds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 0 | 0 |
Short-term Investments [Member] | Level 3 [Member] | U.S. government agency securities [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | ' | 0 |
Short-term Investments [Member] | Total [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 16,589 | 36,753 |
Short-term Investments [Member] | Total [Member] | Corporate notes and bonds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 82,455 | 157,948 |
Short-term Investments [Member] | Total [Member] | U.S. government agency securities [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | ' | 1,001 |
Other Long-term Investments [Member] | Level 1 [Member] | Corporate notes and bonds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 0 | ' |
Other Long-term Investments [Member] | Level 2 [Member] | Corporate notes and bonds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 132,619 | ' |
Other Long-term Investments [Member] | Level 3 [Member] | Corporate notes and bonds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 0 | ' |
Other Long-term Investments [Member] | Total [Member] | Corporate notes and bonds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | $132,619 | ' |
Common_Stock_Additional_Inform
Common Stock - Additional Information (Detail) | Sep. 30, 2013 |
Disclosure Common Stock Outstanding And Reserved Shares Of Common Stock For Future Issuance [Abstract] | ' |
Shares of common stock, authorized (shares) | 600,000,000 |
Shares of common stock, issued and sold (shares) | 138,736,768 |
Common_Stock_Outstanding_and_R
Common Stock - Outstanding and Reserved Shares of Common Stock for Future Issuance (Detail) | Sep. 30, 2013 | Dec. 31, 2012 | |
Common stock outstanding and reserved shares of common stock for future issuance | ' | ' | |
Options outstanding | 25,453,497 | 36,115,460 | |
Total reserved shares of common stock for future issuance | 49,163,954 | ' | |
2005 Stock Option Plan [Member] | ' | ' | |
Common stock outstanding and reserved shares of common stock for future issuance | ' | ' | |
Total reserved shares of common stock for future issuance | 0 | [1] | ' |
2012 Equity Incentive Plan [Member] | ' | ' | |
Common stock outstanding and reserved shares of common stock for future issuance | ' | ' | |
Total reserved shares of common stock for future issuance | 13,405,017 | [1] | ' |
2012 Employee Stock Purchase Plan [Member] | ' | ' | |
Common stock outstanding and reserved shares of common stock for future issuance | ' | ' | |
Total reserved shares of common stock for future issuance | 5,549,918 | [1] | ' |
Stock Options [Member] | ' | ' | |
Common stock outstanding and reserved shares of common stock for future issuance | ' | ' | |
Options outstanding | 25,453,497 | ' | |
Restricted Stock Units (RSUs) [Member] | ' | ' | |
Common stock outstanding and reserved shares of common stock for future issuance | ' | ' | |
RSUs | 4,755,522 | 1,457,870 | |
[1] | Refer to Note 11 for a description of these plans. |
Stock_Awards_Additional_Inform
Stock Awards - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares of common stock, authorized (shares) | 600,000,000 |
Shares of common stock reserved for issuance | 49,163,954 |
Requisite service period to vest employment continuation period | '1 year |
Compensation expense recognized, vesting term | '4 years |
Options granted, exercisable period | '10 years |
Weighted-average grant date fair value of options granted (usd per share) | $17.33 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $3.61 |
Fair value of vested shares | $26.10 |
Total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options | 77.3 |
Weighted-average remaining vesting period for unvested stock options | '2 years 7 months 17 days |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Compensation expense recognized, vesting term | '4 years |
Weighted-average remaining vesting period for unvested stock options | '3 years 7 months 3 days |
Unrecognized compensation expense expected to be recognized | $118.10 |
2005 Stock Option Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares of common stock, authorized (shares) | 54,517,674 |
Compensation expense recognized, vesting term | '48 months |
2012 Equity Incentive Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares of common stock, authorized (shares) | 20,981,151 |
Number of shares of common stock outstanding, increase, percentage | 5.00% |
2012 Employee Stock Purchase Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares of common stock outstanding, increase, percentage | 1.00% |
Common stock purchase price percentage | 85.00% |
Award offering period | '6 months |
Shares of common stock reserved for issuance | 6,263,677 |
2005 Stock Plan and 2012 Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock options granted to new employees vest, percentage per annum | 25.00% |
Requisite service period to vest employment continuation period | '3 years |
Stock_Awards_Summary_of_stock_
Stock Awards - Summary of stock option activity (Detail) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 |
Summary of stock option activity | ' |
Number of Shares, Outstanding, Beginning Balance | 36,115,460 |
Number of Shares, Granted | 1,936,206 |
Number of Shares, Exercised | -11,388,760 |
Number of shares, Cancelled | -1,209,409 |
Number of Shares, Outstanding, Ending Balance | 25,453,497 |
Number of Shares, Vested and expected to vest | 24,857,489 |
Number of Shares, Vested and exercisable | 8,989,834 |
Weighted-Average Exercise Price | ' |
Weighted-Average Exercise Price, Outstanding, Beginning Balance, usd per share | $5.05 |
Weighted-Average Exercise Price, Granted, usd per share | $35.21 |
Weighted-Average Exercise Price, Exercised, usd per share | $3 |
Weighted-Average Exercise Price Cancelled, usd per share | $8.13 |
Weighted-Average Exercise Price, Outstanding, Ending Balance, usd per share | $8.12 |
Weighted-Average Exercise Price, Vested and expected to vest, usd per share | $7.96 |
Weighted-Average Exercise Price, Vested and exercisable, usd per share | $4.25 |
Weighted-Average Remaining Contractual Life | '7 years 11 months |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | '7 years 10 months 15 days |
Weighted-Average Remaining Contractual Term, Vested and exercisable | '7 years 3 months 16 days |
Aggregate Intrinsic Value, Exercised | $371,796 |
Aggregate Intrinsic Value, Outstanding | 1,115,754 |
Aggregate Intrinsic Value, Vested and expected to vest | 1,093,387 |
Aggregate Intrinsic Value, Vested and exercisable | $428,779 |
Stock_Awards_Summary_of_Restri
Stock Awards - Summary of Restricted Stock Activity (Detail) (Restricted Stock [Member], USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Restricted Stock [Member] | ' |
Shares Outstanding | ' |
Beginning balance | 235,066 |
Number of Shares, Vested | -116,103 |
Ending balance | 118,963 |
Weighted-Average Grant Date Fair Value | ' |
Weighted-Average Grant Date Fair Value, Outstanding, Beginning Balance, usd per share | $1.49 |
Weighted-Average Grant Date Fair Value, Vested, usd per share | $1.59 |
Weighted-Average Grant Date Fair Value, Outstanding, Ending Balance, usd per share | $1.39 |
Stock_Awards_Stock_Awards_Rest
Stock Awards Stock Awards - Restricted Stock Unit Table (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 |
Restricted Stock Units (RSUs) [Member] | ' |
Shares Outstanding | ' |
Outstanding shares units beginning balance | 1,457,870 |
Granted | 3,719,856 |
Vested | -266,903 |
Forfeited | -155,301 |
Outstanding shares units ending balance | 4,755,522 |
Expected to vest | 4,396,974 |
Weighted-Average Grant Date Fair Value | ' |
Weighted-Average Grant Date Fair Value, Outstanding, Beginning Balance, usd per share | $16.89 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $34.95 |
Weighted-Average Grant Date Fair Value, Vested, usd per share | $11.13 |
Weighted-Average Grant Date Fair Value, Repurchased, usd per share | $33.92 |
Weighted-Average Grant Date Fair Value, Outstanding, Ending Balance, usd per share | $30.60 |
Aggregate Intrinsic Value, vested | $10,622,000 |
Aggregate Intrinsic Value, Non-vested | $247,049 |
Aggregated Intrinsic Value, Expected to vest | $228,423 |
StockBased_Compensation_Estima
Stock-Based Compensation - Estimates Weighted-average Fair Value Per Share of Options Granted (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share Based Compensation [Line Items] | ' | ' | ' | ' |
Expected volatility, minimum | 51.00% | 54.00% | 51.00% | 54.00% |
Expected volatility, maximum | 52.00% | 54.00% | 52.00% | 57.00% |
Expected term | '6 years 0 months 29 days | '6 years 0 months 18 days | '6 years 0 months 4 days | '6 years 0 months 18 days |
Risk-free interest rate, minimum | 1.71% | 0.87% | 0.91% | 0.87% |
Risk-free interest rate, maximum | 2.05% | 0.93% | 2.05% | 1.18% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' | ' |
Expected volatility, minimum | 35.00% | 42.00% | 35.00% | 42.00% |
Expected volatility, maximum | 39.00% | 42.00% | 42.00% | 42.00% |
Expected term | '6 months | '6 months 30 days | '6 months | '6 months 30 days |
Risk-free interest rate, minimum | 0.08% | 0.16% | 0.08% | 0.16% |
Risk-free interest rate, maximum | 0.11% | 0.16% | 0.16% | 0.16% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Net_Income_Loss_Per_Share_Attr2
Net Income (Loss) Per Share Attributable to Common Stockholders - Calculation of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ' | ' | ' | ' |
Net loss | ($14,713) | ($13,053) | ($49,476) | ($27,417) |
Accretion of redeemable convertible preferred stock | 0 | 0 | 0 | -308 |
Net loss attributable to common stockholders - basic | -14,713 | -13,053 | -49,476 | -27,725 |
Net loss attributable to common stockholders - diluted | ($14,713) | ($13,053) | ($49,476) | ($27,725) |
Denominator: | ' | ' | ' | ' |
Weighted-average shares used to compute net loss per share attributable to common stockholders - basic and diluted | 137,456,531 | 117,698,005 | 134,036,466 | 57,089,411 |
Net income (loss) per share attributable to common stockholders: | ' | ' | ' | ' |
Net loss per share attributable to common stockholders - basic (usd per share) | ($0.11) | ($0.11) | ($0.37) | ($0.49) |
Net loss per share attributable to common stockholders - diluted (usd per share) | ($0.11) | ($0.11) | ($0.37) | ($0.49) |
Net_Income_Loss_Per_Share_Attr3
Net Income (Loss) Per Share Attributable to Common Stockholders - Summary of Potentially Dilutive Securities (Detail) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total potentially dilutive securities | 30,563,988 | 39,232,162 |
Common stock options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total potentially dilutive securities | 25,453,497 | 37,279,442 |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total potentially dilutive securities | 4,755,522 | 1,134,851 |
Common stock subject to repurchase [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total potentially dilutive securities | 118,963 | 349,165 |
ESPP obligations [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total potentially dilutive securities | 236,006 | 468,704 |
Income_Taxes_Income_Taxes_Deta
Income Taxes Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective income tax rate | -5.00% | -3.00% | -4.00% | -2.00% |
Federal statutory rate | ' | ' | 34.00% | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Annual Future Minimum Payments Under Operating Leases / Facility Exit Obligation (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
Future minimum lease payments for noncancelable subleases | $3,827 |
Annual future minimum payments under these operating leases | ' |
Remaining nine months of fiscal 2013 | 4,002 |
2014 | 22,583 |
2015 | 17,659 |
2016 | 14,496 |
2017 | 13,594 |
Thereafter | 53,541 |
Total minimum lease payments | 125,875 |
Data Centers [Member] | ' |
Annual future minimum payments under these operating leases | ' |
Remaining nine months of fiscal 2013 | 2,534 |
2014 | 12,110 |
2015 | 4,713 |
2016 | 1,193 |
2017 | 57 |
Thereafter | 0 |
Total minimum lease payments | 20,607 |
Office Leases [Member] | ' |
Annual future minimum payments under these operating leases | ' |
Remaining nine months of fiscal 2013 | 1,468 |
2014 | 10,473 |
2015 | 12,946 |
2016 | 13,303 |
2017 | 13,537 |
Thereafter | 53,541 |
Total minimum lease payments | 105,268 |
San Diego Office Lease [Member] | Office Leases [Member] | ' |
Annual future minimum payments under these operating leases | ' |
Total minimum lease payments | $8,799 |
Information_about_Geographic_A2
Information about Geographic Areas - Revenues by Geographic Area, Based on Billing Location of Customer (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenues by geography | ' | ' | ' | ' | ||||
Revenues | $111,259 | $64,345 | $299,420 | $168,550 | ||||
North America [Member] | ' | ' | ' | ' | ||||
Revenues by geography | ' | ' | ' | ' | ||||
Revenues | 76,851 | 45,509 | 208,851 | 120,124 | ||||
EuropeMiddleEastAfrica [Member] [Domain] | ' | ' | ' | ' | ||||
Revenues by geography | ' | ' | ' | ' | ||||
Revenues | 27,621 | [1] | 16,133 | [1] | 72,403 | [1] | 42,027 | [1] |
Asia Pacific and other [Member] | ' | ' | ' | ' | ||||
Revenues by geography | ' | ' | ' | ' | ||||
Revenues | $6,787 | $2,703 | $18,166 | $6,399 | ||||
[1] | Europe, the Middle East and Africa, or EMEA |
Information_about_Geographic_A3
Information about Geographic Areas - Long-lived Assets by Geographic Area (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | $68,642 | $42,342 |
North America [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | 47,086 | 30,209 |
EuropeMiddleEastAfrica [Member] [Domain] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | 17,970 | 10,513 |
Asia Pacific and other [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | $3,586 | $1,620 |