Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
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 | 31-Mar-14 |
Amendment Flag | 'false |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 143,433,099 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $337,920 | $366,303 |
Available-for-sale Securities, Current | 317,842 | 268,251 |
Accounts receivable, net | 107,932 | 108,339 |
Current portion of deferred commissions | 32,887 | 31,123 |
Prepaid expenses and other current assets | 32,044 | 23,733 |
Total current assets | 828,625 | 797,749 |
Deferred commissions, less current portion | 21,575 | 21,318 |
Long-term investments | 268,635 | 255,356 |
Property and equipment, net | 86,200 | 75,560 |
Intangible Assets, Net (Excluding Goodwill) | 5,771 | 5,796 |
Goodwill | 8,689 | 8,724 |
Other assets | 4,766 | 3,973 |
Total assets | 1,224,261 | 1,168,476 |
Current liabilities: | ' | ' |
Accounts payable | 22,664 | 7,405 |
Accrued expenses and other current liabilities | 48,619 | 68,130 |
Current portion of deferred revenue | 294,223 | 252,553 |
Total current liabilities | 365,506 | 328,088 |
Deferred revenue, less current portion | 14,249 | 14,169 |
Convertible senior notes, net | 421,840 | 414,777 |
Other long-term liabilities | 18,924 | 17,183 |
Total liabilities | 820,519 | 774,217 |
Stockholders’ equity: | ' | ' |
Common stock | 143 | 140 |
Additional paid-in capital | 626,382 | 573,791 |
Accumulated other comprehensive loss | -276 | -476 |
Accumulated deficit | -222,507 | -179,196 |
Total stockholders’ equity | 403,742 | 394,259 |
Total liabilities and stockholders’ equity | $1,224,261 | $1,168,476 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenues: | ' | ' | ||
Subscription | $117,375 | $71,558 | ||
Professional services and other | 21,715 | 14,381 | ||
Total revenues | 139,090 | 85,939 | ||
Cost of revenues(1): | ' | ' | ||
Subscription | 31,189 | [1] | 18,312 | [1] |
Professional services and other | 21,925 | [1] | 13,996 | [1] |
Total cost of revenues | 53,114 | [1] | 32,308 | [1] |
Gross profit | 85,976 | 53,631 | ||
Operating expenses(1): | ' | ' | ||
Sales and marketing | 69,416 | [1] | 38,226 | [1] |
Research and development | 31,110 | [1] | 16,039 | [1] |
General and administrative | 21,631 | [1] | 12,279 | [1] |
Total operating expenses | 122,157 | [1] | 66,544 | [1] |
Loss from operations | -36,181 | -12,913 | ||
Interest and other income (expense), net | -5,963 | 119 | ||
Loss before provision for income taxes | -42,144 | -12,794 | ||
Provision for income taxes | 1,167 | 564 | ||
Net loss | -43,311 | -13,358 | ||
Earnings Per Share, Basic and Diluted | ($0.30) | ($0.10) | ||
Net loss attributable to common stockholders - basic | -43,311 | -13,358 | ||
Net loss attributable to common stockholders - diluted | -43,311 | -13,358 | ||
Weighted-average shares used to compute net loss per share - basic and diluted | 142,060,025 | 129,782,029 | ||
Other comprehensive income (loss): | ' | ' | ||
Foreign currency translation adjustments | 175 | -1,166 | ||
Unrealized gain on investments | 25 | 13 | ||
Tax effect | 0 | -33 | ||
Other comprehensive income (loss), net of tax | 200 | -1,120 | ||
Comprehensive loss | ($43,111) | ($14,478) | ||
[1] | Includes stock-based compensation as follows: Three Months Ended March 31, 2014 2013Cost of revenues: Subscription$3,076 $1,794Professional services and other2,392 821Sales and marketing9,043 3,985Research and development7,839 3,114General and administrative6,879 2,332 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stock-based compensation | $29,229 | $12,046 |
Subscription [Member] | ' | ' |
Stock-based compensation | 3,076 | 1,794 |
Professional services and other [Member] | ' | ' |
Stock-based compensation | 2,392 | 821 |
Sales and marketing [Member] | ' | ' |
Stock-based compensation | 9,043 | 3,985 |
Research and development [Member] | ' | ' |
Stock-based compensation | 7,839 | 3,114 |
General and administrative [Member] | ' | ' |
Stock-based compensation | $6,879 | $2,332 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($43,311) | ($13,358) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 7,938 | 4,364 |
Accretion (Amortization) of Discounts and Premiums, Investments | 1,814 | 1,095 |
Amortization of deferred commissions | 11,149 | 5,366 |
Amortization of debt discount and issuance cost | 7,081 | 0 |
Stock-based compensation | 29,229 | 12,046 |
Tax benefit from exercise of stock options | -940 | -1,851 |
Other Operating Activities, Cash Flow Statement | 507 | 581 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -27 | -2,938 |
Deferred commissions | -13,232 | -9,269 |
Prepaid expenses and other assets | -8,910 | 3,688 |
Accounts payable | 12,075 | -1,471 |
Accrued expenses and other liabilities | 42,172 | 25,729 |
Deferred revenue | -21,328 | -8,959 |
Net cash provided by operating activities | 24,217 | 15,023 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -10,968 | -10,415 |
Purchases of investments | -134,856 | -55,946 |
Sale of investments | 25,528 | 0 |
Maturities of investments | 44,668 | 55,350 |
Restricted cash | -55 | 0 |
Net cash used in investing activities | -75,683 | -11,011 |
Cash flows from financing activities: | ' | ' |
Offering costs in connection with follow-on offering | 0 | -698 |
Proceeds from Issuance of Common Stock | 22,214 | 21,468 |
Tax benefit from exercise of stock options | 940 | 1,851 |
Net cash provided by financing activities | 23,154 | 22,621 |
Foreign currency effect on cash and cash equivalents | -71 | -840 |
Net increase (decrease) in cash and cash equivalents | -28,383 | 25,793 |
Cash and cash equivalents at beginning of period | 366,303 | 118,989 |
Cash and cash equivalents at end of period | 337,920 | 144,782 |
Supplemental disclosures of non-cash investing activities: | ' | ' |
Property and equipment included in accounts payable and accrued expenses | $11,088 | $6,157 |
Description_of_Business
Description of Business | 3 Months Ended |
Mar. 31, 2014 | |
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 and manage IT service relationships across the global enterprise. Our services include a suite of IT service automation applications built on our proprietary platform that can be rapidly deployed and configured. Customers use our services to create a single system of record for enterprise IT, automate manual tasks, standardize processes and consolidate legacy systems. Using ServiceNow, enterprise IT departments can accelerate their shift from the management of IT infrastructure to the management of IT service relationships across the enterprise with greater transparency, accountability and auditability. Our proprietary platform enables our customers to create custom applications and evolve the IT service model to service domains inside and outside the enterprise. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
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 financial statement presentation have been included. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the year ended December 31, 2014 or for other interim periods or for future years. The condensed consolidated balance sheet as of December 31, 2013 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 year ended December 31, 2013, which was filed with the Securities and Exchange Commission on February 28, 2014. | |
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 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 consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
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 issued by financial-sector firms with a minimum rating of A by Standard & Poor's and A2 by Moody's and securities issued by non-financial sector firms with a minimum rating of BBB by Standard & Poor's and Baa1 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 March 31, 2014 and December 31, 2013, there were no customers that represented more than 10% of our accounts receivable balance. During the three months ended March 31, 2014 and 2013, 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 March 31, 2014 and December 31, 2013, the allowance for doubtful accounts was $1.3 million and $1.1 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 of any known service disruptions. Service level credit accrual charges are recorded against revenue. As of March 31, 2014 and December 31, 2013, the service level credit accrual was $0.7 million and $0.6 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. | |
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. |
Investments
Investments | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||
Investments | ' | |||||||||||||||
Investments | ||||||||||||||||
The following is a summary of our investments (in thousands): | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Commercial paper | $ | 103,880 | $ | 11 | $ | (14 | ) | $ | 103,877 | |||||||
Corporate notes and bonds | 482,814 | 181 | (395 | ) | 482,600 | |||||||||||
Total available-for-sale securities | $ | 586,694 | $ | 192 | $ | (409 | ) | $ | 586,477 | |||||||
31-Dec-13 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Commercial paper | $ | 124,330 | $ | 10 | $ | (21 | ) | $ | 124,319 | |||||||
Corporate notes and bonds | 399,519 | 129 | (360 | ) | 399,288 | |||||||||||
Total available-for-sale securities | $ | 523,849 | $ | 139 | $ | (381 | ) | $ | 523,607 | |||||||
As of March 31, 2014, 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: | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Due in 1 year or less | $ | 317,842 | ||||||||||||||
Due in 1 year through 3 years | 268,635 | |||||||||||||||
Total | $ | 586,477 | ||||||||||||||
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): | ||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||
Fair Value | Gross | Fair Value | Gross | |||||||||||||
Unrealized | Unrealized | |||||||||||||||
Losses | Losses | |||||||||||||||
Commercial paper | $ | 41,465 | $ | (14 | ) | $ | 81,467 | $ | (21 | ) | ||||||
Corporate notes and bonds | 315,407 | (395 | ) | 293,642 | (360 | ) | ||||||||||
Total | $ | 356,872 | $ | (409 | ) | $ | 375,109 | $ | (381 | ) | ||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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 March 31, 2014 (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 85,137 | $ | — | $ | — | $ | 85,137 | ||||||||
Money market funds | 42,920 | — | — | 42,920 | ||||||||||||
Commercial paper | — | 209,863 | — | 209,863 | ||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | — | 103,877 | — | 103,877 | ||||||||||||
Corporate notes and bonds | — | 213,965 | — | 213,965 | ||||||||||||
Long-term investments: | ||||||||||||||||
Corporate notes and bonds | — | 268,635 | — | 268,635 | ||||||||||||
Total | $ | 128,057 | $ | 796,340 | $ | — | $ | 924,397 | ||||||||
The following table presents our fair value hierarchy for our assets and liabilities measured at fair value on a recurring basis at December 31, 2013 (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 69,333 | $ | — | $ | — | $ | 69,333 | ||||||||
Money market funds | 35,248 | — | — | 35,248 | ||||||||||||
Commercial paper | — | 261,722 | — | 261,722 | ||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | — | 124,319 | — | 124,319 | ||||||||||||
Corporate notes and bonds | — | 143,932 | — | 143,932 | ||||||||||||
Long-term investments: | ||||||||||||||||
Corporate notes and bonds | — | 255,356 | — | 255,356 | ||||||||||||
Total | $ | 104,581 | $ | 785,329 | $ | — | $ | 889,910 | ||||||||
We determine the fair value of our security holdings based on pricing from our service provider and market prices from 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. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill and Intangible Assets | ' | |||||||||||
Goodwill and Intangible Assets | ||||||||||||
Goodwill balances are presented below (in thousands): | ||||||||||||
Carrying Amount | ||||||||||||
Balance as of December 31, 2013 | $ | 8,724 | ||||||||||
Goodwill acquired | — | |||||||||||
Foreign currency translation adjustments | (35 | ) | ||||||||||
Balance as of March 31, 2014 | $ | 8,689 | ||||||||||
Intangible assets consist of the following (in thousands): | ||||||||||||
March 31, 2014 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Developed technology | $ | 5,774 | $ | (1,083 | ) | $ | 4,691 | |||||
Contracts | 314 | (156 | ) | 158 | ||||||||
Non-compete agreements | 33 | (16 | ) | 17 | ||||||||
Acquisition-related intangible assets | 6,121 | (1,255 | ) | 4,866 | ||||||||
Other intangible assets | 1,075 | (170 | ) | 905 | ||||||||
Total intangible assets | $ | 7,196 | $ | (1,425 | ) | $ | 5,771 | |||||
December 31, 2013 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Developed technology | $ | 5,783 | $ | (723 | ) | $ | 5,060 | |||||
Contracts | 315 | (104 | ) | 211 | ||||||||
Non-compete agreements | 33 | (11 | ) | 22 | ||||||||
Acquisition-related intangible assets | 6,131 | (838 | ) | 5,293 | ||||||||
Other intangible assets | 650 | (147 | ) | 503 | ||||||||
Total intangible assets | $ | 6,781 | $ | (985 | ) | $ | 5,796 | |||||
Amortization expense for intangible assets for the three months ended March 31, 2014 and 2013 was approximately $440,000 and $23,000, respectively. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Property and Equipment | ||||||||
Property and equipment, net consists of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Computer equipment and software | $ | 102,895 | $ | 90,617 | ||||
Furniture and fixtures | 14,400 | 13,751 | ||||||
Leasehold improvements | 8,978 | 8,371 | ||||||
Construction in progress | 3,516 | 928 | ||||||
129,789 | 113,667 | |||||||
Less: Accumulated depreciation | (43,589 | ) | (38,107 | ) | ||||
Total property and equipment, net | $ | 86,200 | $ | 75,560 | ||||
Construction in progress consists primarily of in-process software development costs and leasehold improvements. Depreciation expense for the three months ended March 31, 2014 and 2013 was $7.5 million and $4.3 million, respectively. |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Taxes payable | $ | 4,202 | $ | 4,187 | ||||
Bonuses and commissions | 16,311 | 22,322 | ||||||
Accrued compensation | 11,910 | 16,610 | ||||||
Other employee expenses | 10,043 | 11,926 | ||||||
Other | 6,153 | 13,085 | ||||||
Total accrued expenses and other current liabilities | $ | 48,619 | $ | 68,130 | ||||
Notes_Payable_Notes
Notes Payable (Notes) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Convertible Notes Payable [Abstract] | ' | |||||||
Notes Payable [Text Block] | ' | |||||||
Convertible Senior Notes | ||||||||
In November 2013, we issued 0% convertible senior notes due November 1, 2018 with aggregate principal amount of $575 million (the "Notes"). The Notes will not bear interest. The Notes mature on November 1, 2018 unless converted or repurchased in accordance with their terms prior to such date. We cannot redeem the Notes prior to maturity. | ||||||||
The Notes are unsecured obligations and do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by us or any of our subsidiaries. | ||||||||
Upon conversion, we may choose to pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock. We intend to settle the principal amount of the Notes with cash. | ||||||||
The Notes are convertible up to 7.8 million shares of our common stock at an initial conversion rate of approximately 13.54 shares of common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $73.88 per share of common stock, subject to adjustment. Holders of the Notes may convert their Notes at their option at any time prior to the close of business on the business day immediately preceding July 1, 2018, only under the following circumstances: | ||||||||
• | during any calendar quarter commencing after the calendar quarter ending on March 31, 2014 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; | |||||||
• | during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; or | |||||||
• | upon the occurrence of specified corporate events. | |||||||
On or after July 1, 2018, a holder may convert all or any portion of its notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date regardless of the foregoing conditions. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. | ||||||||
The conversion price will be subject to adjustment in some events. Holders of the Notes who convert their notes in connection with certain corporate events that constitute a “make-whole fundamental change” are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a “fundamental change,” holders of the Notes may require us to purchase with cash all or a portion of the Notes upon the occurrence of a fundamental change, at a purchase price equal to 100% of the principal amount of the Notes plus any accrued and unpaid interest. | ||||||||
In accounting for the issuance of the Notes, we separated the Notes into liability and equity components. The carrying cost of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Notes. The difference between the principal amount of the Notes and the proceeds allocated to the liability component (“debt discount”) is amortized to interest expense using the effective interest method over the term of the Note. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. | ||||||||
In accounting for the transaction costs related to the issuance of the Notes, we allocated the total amount incurred to the liability and equity components based on their relative fair values. Transaction costs attributable to the liability component are being amortized to interest expense over the term of the Notes, and transaction costs attributable to the equity component were netted with the equity component of the Notes in stockholders’ equity. The Notes consisted of the following (in thousands): | ||||||||
31-Mar-14 | 31-Dec-13 | |||||||
Liability: | ||||||||
Principal | $ | 575,000 | $ | 575,000 | ||||
Less: debt discount, net of amortization | (153,160 | ) | (160,223 | ) | ||||
Net carrying amount | $ | 421,840 | $ | 414,777 | ||||
We consider the fair value of the Notes at March 31, 2014 and December 31, 2013 to be a Level 2 measurement. The fair value of the Notes is primarily affected by the trading price of our common stock and interest rate. Based on the closing price of our common stock of $59.92 and $56.01 on March 31, 2014 and December 31, 2013, respectively, the if-converted value of the Notes was less than its principal amount. | ||||||||
As of March 31, 2014, the remaining life of the Notes is 55 months. The following table sets forth total interest expense recognized related to the Notes (in thousands): | ||||||||
Three months ended March 31, 2014 | ||||||||
Amortization of debt issuance cost | $ | 380 | ||||||
Amortization of debt discount | 6,701 | |||||||
Total | $ | 7,081 | ||||||
Effective interest rate of the liability component | 6.5 | % | ||||||
No interest expense related to the Notes was recognized for the three months ended March 31, 2013. | ||||||||
Note Hedge | ||||||||
To minimize the impact of potential economic dilution upon conversion of the Notes, we entered into convertible note hedge transactions (the "Note Hedge") with respect to our common stock concurrent with the issuance of the Notes. The Note Hedge covers approximately 7.8 million shares of our common stock at a strike price per share that corresponds to the initial conversion price of the Notes, subject to adjustment, and is exercisable upon conversion of the Notes. We paid an aggregate amount of $135.8 million for the Note Hedge. The Note Hedge will expire upon maturity of the Notes. The Note Hedge is intended to reduce the potential economic dilution upon conversion of the Notes in the event that the fair value per share of our common stock at the time of exercise is greater than the conversion price of the Notes. The Note Hedge is a separate transaction and is not part of the terms of the Notes. The Note Hedge does not impact earnings per share, as it was entered into to offset any dilution from the Notes. | ||||||||
Warrants | ||||||||
Separately, we entered into warrant transactions (the “Warrants”) whereby we sold warrants to acquire up to 7.8 million shares of our common stock, at a strike price of $107.46 per share, subject to adjustment. We received aggregate proceeds of $84.5 million from the sale of the Warrants. If the average market value per share of our common stock for the reporting period, as measured under the Warrants, exceeds the strike price of the Warrants, the Warrants will have a dilutive effect on our earnings per share. The Warrants are separate transactions and are not remeasured through earnings each reporting period. The Warrants are not part of the Notes or the Note Hedge, and have been accounted for as part of additional paid-in capital. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Foreign currency translation adjustment | $ | (59 | ) | $ | (234 | ) | ||
Net unrealized loss on investments | (217 | ) | (242 | ) | ||||
Accumulated other comprehensive loss, net of tax | $ | (276 | ) | $ | (476 | ) | ||
Reclassification adjustments out of accumulated other comprehensive loss into net loss were immaterial for all periods presented. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||
Mar. 31, 2014 | |||
Disclosure Common Stock Outstanding And Reserved Shares Of Common Stock For Future Issuance [Abstract] | ' | ||
Common Stock | ' | ||
We were authorized to issue 600,000,000 shares of common stock as of March 31, 2014. Holders of our common stock are not entitled to receive dividends unless declared by our board of directors. As of March 31, 2014, we had 143,433,099 shares of common stock outstanding and had reserved shares of common stock for future issuance as follows: | |||
31-Mar-14 | |||
Stock option plans: | |||
Options outstanding | 20,931,056 | ||
RSUs | 8,002,246 | ||
Stock awards available for future grants: | |||
2005 Stock Option Plan(1) | — | ||
2012 Equity Incentive Plan(1) | 17,227,691 | ||
2012 Employee Stock Purchase Plan(1) | 6,727,906 | ||
Total reserved shares of common stock for future issuance | 52,888,899 | ||
-1 | Refer to Note 11 for a description of these plans. | ||
During the three months ended March 31, 2014 and 2013, we issued a total of 3,078,494 shares and 6,527,072 shares, respectively, from stock option exercises, vesting of restricted stock units, or RSUs, and purchases from the employee stock purchase plan, or ESPP. |
Stock_Awards
Stock Awards | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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. | |||||||||||||
Our 2012 Equity Incentive Plan, or 2012 Plan, provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, 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 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 common stock outstanding on December 31 of the preceding year as determined by the board of directors. On January 1, 2014, 7,017,730 shares of common stock were automatically added to the 2012 Plan pursuant to the provision described in the preceding sentence. | |||||||||||||
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 year until January 1, 2022, by up to 1% of the total number of shares of common stock outstanding on December 31 of the preceding year as determined by the board of directors. 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. On January 1, 2014, 1,403,546 shares of common stock were automatically added to the 2012 ESPP pursuant to the provision described in the preceding sentence. | |||||||||||||
Stock Options | |||||||||||||
A summary of the stock option activity for the three months ended March 31, 2014 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, 2013 | 23,399,374 | $ | 9.07 | ||||||||||
Granted | 221,480 | 65.37 | |||||||||||
Exercised | (2,454,203 | ) | 5.47 | $ | 145,896 | ||||||||
Canceled | (235,595 | ) | 22.21 | ||||||||||
Outstanding at March 31, 2014 | 20,931,056 | $ | 9.93 | 7.52 | $ | 1,047,622 | |||||||
Vested and expected to vest as of March 31, 2014 | 20,506,488 | $ | 9.75 | 7.51 | $ | 1,028,819 | |||||||
Vested and exercisable as of March 31, 2014 | 8,738,620 | $ | 4.85 | 7.02 | $ | 481,206 | |||||||
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 was $31.72 for the three months ended March 31, 2014. The total fair value of shares vested was $8.1 million for the three months ended March 31, 2014. | |||||||||||||
As of March 31, 2014, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options was approximately $70.6 million. The weighted-average remaining vesting period of unvested stock options at March 31, 2014 was 2.56 years. | |||||||||||||
RSUs | |||||||||||||
Activity with respect to outstanding RSUs for the three months ended March 31, 2014 was as follows: | |||||||||||||
Number of | Weighted Average Grant Date Fair Value | Aggregate | |||||||||||
Shares | (Per Share) | Fair Value | |||||||||||
(in thousands) | |||||||||||||
Outstanding at December 31, 2013 | 5,427,509 | $ | 34.02 | ||||||||||
Granted | 3,148,839 | 65.48 | |||||||||||
Vested | (651,297 | ) | 22.25 | $ | 43,533 | ||||||||
Forfeited | (172,805 | ) | 38.57 | ||||||||||
Non-vested and outstanding at March 31, 2014 | 7,752,246 | $ | 47.69 | $ | 479,495 | ||||||||
Expected to vest as of March 31, 2014 | 7,230,337 | $ | 433,242 | ||||||||||
RSUs granted under the 2005 Plan and the 2012 Plan to employees generally vest annually over a four-year period. As of March 31, 2014, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs was approximately $317.2 million and the weighted-average remaining vesting period was 3.51 years. | |||||||||||||
In the three months ended March 31, 2014, we issued restricted stock units with both service and performance-based vesting criteria to certain executives. These restricted stock units will be eligible to vest based on our attainment of the 2014 financial performance goal as well as each executive's continued employment through the vesting date. In order to earn the restricted stock units, the low end of the predetermined goal must be met. The number of restricted stock units to be earned will range from 0% to 200% of the target awards based on the actual level of achievement of the financial performance goal. Shares earned will vest in four quarterly increments from February 2016 contingent on the continuous employment of each executive. We recognize stock-based compensation expense associated with these awards on a graded vesting basis over the vesting period, after assessing the probability of achieving the 2014 financial performance goal. As of March 31, 2014, we estimated 114.5% of target awards will be earned. As actual results are achieved, the probability assessment is updated and stock-based compensation expense is adjusted accordingly. |
Net_Income_Loss_Per_Share_Attr
Net Income (Loss) Per Share Attributable to Common Stockholders | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Net Income (Loss) Per Share Attributable to Common Stockholders | ' | |||||||
Net Loss Per Share | ||||||||
The following tables present the calculation of basic and diluted net loss per share (in thousands, except share and per share data): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net loss | $ | (43,311 | ) | $ | (13,358 | ) | ||
Denominator: | ||||||||
Weighted-average shares outstanding—basic and diluted | 142,060,025 | 129,782,029 | ||||||
Net loss per share: | ||||||||
Basic | $ | (0.30 | ) | $ | (0.10 | ) | ||
Diluted | $ | (0.30 | ) | $ | (0.10 | ) | ||
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: | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Common stock options | 20,931,056 | 30,454,754 | ||||||
Restricted stock units | 7,752,246 | 3,430,343 | ||||||
Common stock subject to repurchase | 65,925 | 188,186 | ||||||
ESPP obligations | 199,591 | 265,173 | ||||||
Convertible senior notes | 7,783,023 | — | ||||||
Warrants related to the issuance of convertible senior notes | 7,783,023 | — | ||||||
Total potentially dilutive securities | 44,514,864 | 34,338,456 | ||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
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 months ended March 31, 2014 and three months ended March 31, 2013 was (3)% and (4)%, respectively, which was lower than the U.S. federal statutory tax rate of 34%. The lower tax rate was primarily attributable to our loss from U.S. operations, a foreign tax rate differential, and non-deductible expenses arising from stock-based compensation, partially offset by state income taxes. | |
We are subject to taxation in the United States and foreign jurisdictions. As of March 31, 2014, our tax years of 2005 to 2013 remain subject to examination in most jurisdictions. We are currently under examination by the U.S. Internal Revenue Service for the June 30, 2011 and December 31, 2011 tax years. | |
There are differing interpretations of tax laws and regulations, and as a result, disputes may arise with 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 believe that adequate amounts have been reserved for any adjustments that may ultimately result from these examinations, and we do not anticipate a significant impact to our gross unrecognized tax benefits within the next twelve months related to these years. Although the timing of the resolution, settlement, and closure of any audit is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next twelve months. However, given the number of years that remain subject to examination, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
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. There have been no material changes in our commitments under contractual obligations, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
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 as discussed below and 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 and other claims. Any adverse determination related to intellectual property claims or other litigation could prevent us from offering our services and adversely affect our financial condition and results of operations. | |
On February 6, 2014, Hewlett-Packard Company filed a lawsuit against us in the U.S. District Court for the Northern District of California that alleges that some of our services infringe the claims of eight of Hewlett-Packard's patents. Hewlett-Packard is seeking unspecified damages and an injunction. We intend to vigorously defend this lawsuit. We cannot make a reasonable estimate of the potential loss or range of loss, if any, arising from this matter. |
Information_about_Geographic_A
Information about Geographic Areas | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, | ||||||||
2014 | 2013 | |||||||
Revenues by geography: | ||||||||
North America (1) | $ | 94,964 | $ | 60,145 | ||||
EMEA (2) | 36,306 | 20,304 | ||||||
Asia Pacific and other | 7,820 | 5,490 | ||||||
Total revenues | $ | 139,090 | $ | 85,939 | ||||
Long-lived assets by geographic area were as follows (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Long-lived assets: | ||||||||
North America | $ | 56,594 | $ | 52,937 | ||||
EMEA(2) | 18,416 | 18,017 | ||||||
Asia Pacific and other | 11,190 | 4,606 | ||||||
Total long-lived assets | $ | 86,200 | $ | 75,560 | ||||
(1) Revenues attributed to the United States were approximately 94% of North America revenues for the three months ended March 31, 2014 and 2013. | ||||||||
(2) Europe, the Middle East and Africa |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
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 financial statement presentation have been included. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the year ended December 31, 2014 or for other interim periods or for future years. The condensed consolidated balance sheet as of December 31, 2013 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 year ended December 31, 2013, which was filed with the Securities and Exchange Commission on February 28, 2014. | |
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 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 consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
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 issued by financial-sector firms with a minimum rating of A by Standard & Poor's and A2 by Moody's and securities issued by non-financial sector firms with a minimum rating of BBB by Standard & Poor's and Baa1 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 March 31, 2014 and December 31, 2013, there were no customers that represented more than 10% of our accounts receivable balance. During the three months ended March 31, 2014 and 2013, 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 March 31, 2014 and December 31, 2013, the allowance for doubtful accounts was $1.3 million and $1.1 million, res | |
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 of any known service disruptions. Service level credit accrual charges are recorded against revenue. As of March 31, 2014 and December 31, 2013, the service level credit accrual was $0.7 million and $0.6 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. | |
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. |
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Available-for-sale Securities [Abstract] | ' | |||||||||||||||
Summary of Investments | ' | |||||||||||||||
The following is a summary of our investments (in thousands): | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Commercial paper | $ | 103,880 | $ | 11 | $ | (14 | ) | $ | 103,877 | |||||||
Corporate notes and bonds | 482,814 | 181 | (395 | ) | 482,600 | |||||||||||
Total available-for-sale securities | $ | 586,694 | $ | 192 | $ | (409 | ) | $ | 586,477 | |||||||
31-Dec-13 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Commercial paper | $ | 124,330 | $ | 10 | $ | (21 | ) | $ | 124,319 | |||||||
Corporate notes and bonds | 399,519 | 129 | (360 | ) | 399,288 | |||||||||||
Total available-for-sale securities | $ | 523,849 | $ | 139 | $ | (381 | ) | $ | 523,607 | |||||||
Investments Classified by Contractual Maturity Date | ' | |||||||||||||||
The fair values of available-for-sale investments, by contractual maturity, are as follows: | ||||||||||||||||
31-Mar-14 | ||||||||||||||||
Due in 1 year or less | $ | 317,842 | ||||||||||||||
Due in 1 year through 3 years | 268,635 | |||||||||||||||
Total | $ | 586,477 | ||||||||||||||
Fair Values and Gross Unrealized Losses of Available-for-Sale Securities Aggregated by Investment Category | ' | |||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||
Fair Value | Gross | Fair Value | Gross | |||||||||||||
Unrealized | Unrealized | |||||||||||||||
Losses | Losses | |||||||||||||||
Commercial paper | $ | 41,465 | $ | (14 | ) | $ | 81,467 | $ | (21 | ) | ||||||
Corporate notes and bonds | 315,407 | (395 | ) | 293,642 | (360 | ) | ||||||||||
Total | $ | 356,872 | $ | (409 | ) | $ | 375,109 | $ | (381 | ) | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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 March 31, 2014 (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 85,137 | $ | — | $ | — | $ | 85,137 | ||||||||
Money market funds | 42,920 | — | — | 42,920 | ||||||||||||
Commercial paper | — | 209,863 | — | 209,863 | ||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | — | 103,877 | — | 103,877 | ||||||||||||
Corporate notes and bonds | — | 213,965 | — | 213,965 | ||||||||||||
Long-term investments: | ||||||||||||||||
Corporate notes and bonds | — | 268,635 | — | 268,635 | ||||||||||||
Total | $ | 128,057 | $ | 796,340 | $ | — | $ | 924,397 | ||||||||
The following table presents our fair value hierarchy for our assets and liabilities measured at fair value on a recurring basis at December 31, 2013 (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 69,333 | $ | — | $ | — | $ | 69,333 | ||||||||
Money market funds | 35,248 | — | — | 35,248 | ||||||||||||
Commercial paper | — | 261,722 | — | 261,722 | ||||||||||||
Short-term investments: | ||||||||||||||||
Commercial paper | — | 124,319 | — | 124,319 | ||||||||||||
Corporate notes and bonds | — | 143,932 | — | 143,932 | ||||||||||||
Long-term investments: | ||||||||||||||||
Corporate notes and bonds | — | 255,356 | — | 255,356 | ||||||||||||
Total | $ | 104,581 | $ | 785,329 | $ | — | $ | 889,910 | ||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Schedule of Goodwill | ' | |||||||||||
Goodwill balances are presented below (in thousands): | ||||||||||||
Carrying Amount | ||||||||||||
Balance as of December 31, 2013 | $ | 8,724 | ||||||||||
Goodwill acquired | — | |||||||||||
Foreign currency translation adjustments | (35 | ) | ||||||||||
Balance as of March 31, 2014 | $ | 8,689 | ||||||||||
Schedule of Intangible Assets | ' | |||||||||||
Intangible assets consist of the following (in thousands): | ||||||||||||
March 31, 2014 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Developed technology | $ | 5,774 | $ | (1,083 | ) | $ | 4,691 | |||||
Contracts | 314 | (156 | ) | 158 | ||||||||
Non-compete agreements | 33 | (16 | ) | 17 | ||||||||
Acquisition-related intangible assets | 6,121 | (1,255 | ) | 4,866 | ||||||||
Other intangible assets | 1,075 | (170 | ) | 905 | ||||||||
Total intangible assets | $ | 7,196 | $ | (1,425 | ) | $ | 5,771 | |||||
December 31, 2013 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
Developed technology | $ | 5,783 | $ | (723 | ) | $ | 5,060 | |||||
Contracts | 315 | (104 | ) | 211 | ||||||||
Non-compete agreements | 33 | (11 | ) | 22 | ||||||||
Acquisition-related intangible assets | 6,131 | (838 | ) | 5,293 | ||||||||
Other intangible assets | 650 | (147 | ) | 503 | ||||||||
Total intangible assets | $ | 6,781 | $ | (985 | ) | $ | 5,796 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Summary of Property and Equipment, Net | ' | |||||||
Property and equipment, net consists of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Computer equipment and software | $ | 102,895 | $ | 90,617 | ||||
Furniture and fixtures | 14,400 | 13,751 | ||||||
Leasehold improvements | 8,978 | 8,371 | ||||||
Construction in progress | 3,516 | 928 | ||||||
129,789 | 113,667 | |||||||
Less: Accumulated depreciation | (43,589 | ) | (38,107 | ) | ||||
Total property and equipment, net | $ | 86,200 | $ | 75,560 | ||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Taxes payable | $ | 4,202 | $ | 4,187 | ||||
Bonuses and commissions | 16,311 | 22,322 | ||||||
Accrued compensation | 11,910 | 16,610 | ||||||
Other employee expenses | 10,043 | 11,926 | ||||||
Other | 6,153 | 13,085 | ||||||
Total accrued expenses and other current liabilities | $ | 48,619 | $ | 68,130 | ||||
Notes_Payable_Tables
Notes Payable (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Convertible Notes Payable [Abstract] | ' | |||||||
Schedule of Convertible Notes | ' | |||||||
The Notes consisted of the following (in thousands): | ||||||||
31-Mar-14 | 31-Dec-13 | |||||||
Liability: | ||||||||
Principal | $ | 575,000 | $ | 575,000 | ||||
Less: debt discount, net of amortization | (153,160 | ) | (160,223 | ) | ||||
Net carrying amount | $ | 421,840 | $ | 414,777 | ||||
Interest Expense Recognized Related to the Notes | ' | |||||||
The following table sets forth total interest expense recognized related to the Notes (in thousands): | ||||||||
Three months ended March 31, 2014 | ||||||||
Amortization of debt issuance cost | $ | 380 | ||||||
Amortization of debt discount | 6,701 | |||||||
Total | $ | 7,081 | ||||||
Effective interest rate of the liability component | 6.5 | % |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Foreign currency translation adjustment | $ | (59 | ) | $ | (234 | ) | ||
Net unrealized loss on investments | (217 | ) | (242 | ) | ||||
Accumulated other comprehensive loss, net of tax | $ | (276 | ) | $ | (476 | ) |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
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 March 31, 2014, we had 143,433,099 shares of common stock outstanding and had reserved shares of common stock for future issuance as follows: | |||
31-Mar-14 | |||
Stock option plans: | |||
Options outstanding | 20,931,056 | ||
RSUs | 8,002,246 | ||
Stock awards available for future grants: | |||
2005 Stock Option Plan(1) | — | ||
2012 Equity Incentive Plan(1) | 17,227,691 | ||
2012 Employee Stock Purchase Plan(1) | 6,727,906 | ||
Total reserved shares of common stock for future issuance | 52,888,899 | ||
-1 | Refer to Note 11 for a description of these plans. | ||
During the three months ended March 31, 2014 and 2013, we issued a total of 3,078,494 shares and 6,527,072 shares, respectively, from stock option exercises, vesting of restricted stock units, or RSUs, and purchases from the employee stock purchase plan, or ESPP. |
Stock_Awards_Tables
Stock Awards (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||
A summary of the stock option activity for the three months ended March 31, 2014 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, 2013 | 23,399,374 | $ | 9.07 | ||||||||||
Granted | 221,480 | 65.37 | |||||||||||
Exercised | (2,454,203 | ) | 5.47 | $ | 145,896 | ||||||||
Canceled | (235,595 | ) | 22.21 | ||||||||||
Outstanding at March 31, 2014 | 20,931,056 | $ | 9.93 | 7.52 | $ | 1,047,622 | |||||||
Vested and expected to vest as of March 31, 2014 | 20,506,488 | $ | 9.75 | 7.51 | $ | 1,028,819 | |||||||
Vested and exercisable as of March 31, 2014 | 8,738,620 | $ | 4.85 | 7.02 | $ | 481,206 | |||||||
Schedule of Restricted Stock Unit Activity | ' | ||||||||||||
RSUs | |||||||||||||
Activity with respect to outstanding RSUs for the three months ended March 31, 2014 was as follows: | |||||||||||||
Number of | Weighted Average Grant Date Fair Value | Aggregate | |||||||||||
Shares | (Per Share) | Fair Value | |||||||||||
(in thousands) | |||||||||||||
Outstanding at December 31, 2013 | 5,427,509 | $ | 34.02 | ||||||||||
Granted | 3,148,839 | 65.48 | |||||||||||
Vested | (651,297 | ) | 22.25 | $ | 43,533 | ||||||||
Forfeited | (172,805 | ) | 38.57 | ||||||||||
Non-vested and outstanding at March 31, 2014 | 7,752,246 | $ | 47.69 | $ | 479,495 | ||||||||
Expected to vest as of March 31, 2014 | 7,230,337 | $ | 433,242 | ||||||||||
Net_Income_Loss_Per_Share_Attr1
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 loss per share (in thousands, except share and per share data): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net loss | $ | (43,311 | ) | $ | (13,358 | ) | ||
Denominator: | ||||||||
Weighted-average shares outstanding—basic and diluted | 142,060,025 | 129,782,029 | ||||||
Net loss per share: | ||||||||
Basic | $ | (0.30 | ) | $ | (0.10 | ) | ||
Diluted | $ | (0.30 | ) | $ | (0.10 | ) | ||
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: | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Common stock options | 20,931,056 | 30,454,754 | ||||||
Restricted stock units | 7,752,246 | 3,430,343 | ||||||
Common stock subject to repurchase | 65,925 | 188,186 | ||||||
ESPP obligations | 199,591 | 265,173 | ||||||
Convertible senior notes | 7,783,023 | — | ||||||
Warrants related to the issuance of convertible senior notes | 7,783,023 | — | ||||||
Total potentially dilutive securities | 44,514,864 | 34,338,456 | ||||||
Information_about_Geographic_A1
Information about Geographic Areas (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, | ||||||||
2014 | 2013 | |||||||
Revenues by geography: | ||||||||
North America (1) | $ | 94,964 | $ | 60,145 | ||||
EMEA (2) | 36,306 | 20,304 | ||||||
Asia Pacific and other | 7,820 | 5,490 | ||||||
Total revenues | $ | 139,090 | $ | 85,939 | ||||
Schedule of Long Lived Assets by Geographic Area | ' | |||||||
Long-lived assets by geographic area were as follows (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Long-lived assets: | ||||||||
North America | $ | 56,594 | $ | 52,937 | ||||
EMEA(2) | 18,416 | 18,017 | ||||||
Asia Pacific and other | 11,190 | 4,606 | ||||||
Total long-lived assets | $ | 86,200 | $ | 75,560 | ||||
(1) Revenues attributed to the United States were approximately 94% of North America revenues for the three months ended March 31, 2014 and 2013. | ||||||||
(2) Europe, the Middle East and Africa | ||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Customer | Customer | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | |
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% | ' | ' | ' |
Number of significant revenue customers | ' | ' | 0 | 0 |
Percentage of revenues customers exceed | 10.00% | ' | ' | ' |
Allowance for doubtful accounts | $1.30 | $1.10 | ' | ' |
Valuation Allowances and Reserves, Balance | $0.70 | $0.60 | ' | ' |
Investments_Summary_of_Investm
Investments - Summary of Investments (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $586,694 | $523,849 |
Available-for-sale Securities, Gross Unrealized Gain | 192 | 139 |
Available-for-sale Securities, Gross Unrealized Loss | 409 | 381 |
Available-for-sale Securities | 586,477 | 523,607 |
Available For Sale Securities Maturities Term Maximum | '24 months | ' |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 317,842 | ' |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 268,635 | ' |
Commercial Paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 103,880 | 124,330 |
Available-for-sale Securities, Gross Unrealized Gain | 11 | 10 |
Available-for-sale Securities, Gross Unrealized Loss | 14 | 21 |
Available-for-sale Securities | 103,877 | 124,319 |
Corporate notes and bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 482,814 | 399,519 |
Available-for-sale Securities, Gross Unrealized Gain | 181 | 129 |
Available-for-sale Securities, Gross Unrealized Loss | 395 | 360 |
Available-for-sale Securities | $482,600 | $399,288 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
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 $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | $356,872 | $375,109 |
Gross Unrealized Losses | -409 | -381 |
Commercial Paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 41,465 | 81,467 |
Gross Unrealized Losses | -14 | -21 |
Corporate notes and bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 315,407 | 293,642 |
Gross Unrealized Losses | ($395) | ($360) |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | $586,477 | $523,607 |
Commercial Paper [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 103,877 | 124,319 |
Corporate notes and bonds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 482,600 | 399,288 |
Level 1 [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Total | 128,057 | 104,581 |
Level 2 [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Total | 796,340 | 785,329 |
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 | 924,397 | 889,910 |
Cash [Member] | Level 1 [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 85,137 | 69,333 |
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 | 85,137 | 69,333 |
Cash Equivalents [Member] | Level 1 [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 42,920 | 35,248 |
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 | 209,863 | 261,722 |
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 | 42,920 | 35,248 |
Cash Equivalents [Member] | Total [Member] | Commercial Paper [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash and cash equivalents | 209,863 | 261,722 |
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 | 103,877 | 124,319 |
Short-term Investments [Member] | Level 2 [Member] | Corporate notes and bonds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 213,965 | 143,932 |
Short-term Investments [Member] | Level 2 [Member] | U.S. government agency securities [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | ' | 255,356 |
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 | 103,877 | 124,319 |
Short-term Investments [Member] | Total [Member] | Corporate notes and bonds [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | 213,965 | 143,932 |
Short-term Investments [Member] | Total [Member] | U.S. government agency securities [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Investments | ' | 255,356 |
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 | 268,635 | ' |
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 | $268,635 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Goodwill [Roll Forward] | ' |
Goodwill, beginning of period | $8,724 |
Goodwill acquired | 0 |
Foreign currency translation adjustments | -35 |
Goodwill, end of period | $8,689 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' |
Gross Carrying Amount | $7,196,000 | ' | $6,781,000 |
Accumulated Amortization | -1,425,000 | ' | -985,000 |
Net Carrying Amount | 5,771,000 | ' | 5,796,000 |
Amortization expense | 440,000 | 23,000 | ' |
Developed Technology Rights [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 5,774,000 | ' | 5,783,000 |
Accumulated Amortization | -1,083,000 | ' | -723,000 |
Net Carrying Amount | 4,691,000 | ' | 5,060,000 |
Contract-Based Intangible Assets [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 314,000 | ' | 315,000 |
Accumulated Amortization | -156,000 | ' | -104,000 |
Net Carrying Amount | 158,000 | ' | 211,000 |
Noncompete Agreements [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 33,000 | ' | 33,000 |
Accumulated Amortization | -16,000 | ' | -11,000 |
Net Carrying Amount | 17,000 | ' | 22,000 |
Acquisition related intangible asset [Domain] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 6,121,000 | ' | 6,131,000 |
Accumulated Amortization | -1,255,000 | ' | -838,000 |
Net Carrying Amount | 4,866,000 | ' | 5,293,000 |
Other Intangible Assets [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 1,075,000 | ' | 650,000 |
Accumulated Amortization | -170,000 | ' | -147,000 |
Net Carrying Amount | $905,000 | ' | $503,000 |
Property_and_Equipment_Net_Det
Property and Equipment - Net (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | $129,789 | $113,667 |
Less: accumulated depreciation | -43,589 | -38,107 |
Total property and equipment, net | 86,200 | 75,560 |
Computer Equipment And Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 102,895 | 90,617 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 14,400 | 13,751 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | 8,978 | 8,371 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, Gross | $3,516 | $928 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation | $7,488,873 | $4,328,693 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities - (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Disclosure Summary Of Accrued Expenses And Other Current Liabilities [Abstract] | ' | ' |
Taxes Payable, Current | $4,202 | $4,187 |
Bonuses and commissions | 16,311 | 22,322 |
Accrued compensation | 11,910 | 16,610 |
Other employee expenses | 10,043 | 11,926 |
Other | 6,153 | 13,085 |
Total accrued expenses and other current liabilities | $48,619 | $68,130 |
Notes_Payable_Details
Notes Payable (Details) (USD $) | 3 Months Ended | ||||
Share data in Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Nov. 06, 2013 | Nov. 01, 2013 |
Debt Conversion [Line Items] | ' | ' | ' | ' | ' |
Notes face amount | $1,000 | ' | ' | ' | ' |
Contractual interest rate - Notes | ' | ' | ' | 0.00% | ' |
Notes Maturity Date | 1-Nov-18 | ' | ' | ' | ' |
Notes, par value | 575,000,000 | ' | 575,000,000 | ' | 575,000,000 |
Converted number of shares | 7.8 | ' | ' | ' | ' |
Conversion rate | 13.54 | ' | ' | ' | ' |
Initial conversion price, per share | ' | ' | ' | $73.88 | ' |
Terms of conversion feature | 'July 1, 2018 | ' | ' | ' | ' |
Earliest date of conversion | 31-Mar-14 | ' | ' | ' | ' |
Percentage of purchase price of Notes which should be paid upon fundamental change | 100.00% | ' | ' | ' | ' |
Price per share (USD) | $59.92 | ' | $56.01 | ' | ' |
Remaining life of the Notes | '55 months | ' | ' | ' | ' |
Amortization of debt discount and issuance cost | 7,081,000 | 0 | ' | ' | ' |
Noted Hedged shares of common stock covered | 7.8 | ' | ' | ' | ' |
Purchase of convertible note hedge | 135,800,000 | ' | ' | ' | ' |
Issuance of warrants (in shares) | 7.8 | ' | ' | ' | ' |
Exercise price of warrants issued (USD per share) | ' | ' | ' | 107.46 | ' |
Proceeds from issuance of warrants | 84,500,000 | ' | ' | ' | ' |
Calendar Quarter End [Member] | ' | ' | ' | ' | ' |
Debt Conversion [Line Items] | ' | ' | ' | ' | ' |
Number of days out of 30 that common stock price exceeded conversion price, days | '20 days | ' | ' | ' | ' |
Number of consecutive trading days in a period | '30 days | ' | ' | ' | ' |
Calendar Quarter End [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Debt Conversion [Line Items] | ' | ' | ' | ' | ' |
Threshold percentage of stock price trigger | 130.00% | ' | ' | ' | ' |
Measurement Period [Member] | ' | ' | ' | ' | ' |
Debt Conversion [Line Items] | ' | ' | ' | ' | ' |
Number of days out of 30 that common stock price exceeded conversion price, days | '5 days | ' | ' | ' | ' |
Number of consecutive trading days in a period | '5 days | ' | ' | ' | ' |
Notes face amount | $1,000 | ' | ' | ' | ' |
Measurement Period [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Debt Conversion [Line Items] | ' | ' | ' | ' | ' |
Threshold percentage of stock price trigger | 98.00% | ' | ' | ' | ' |
Notes_Payable_Schedule_of_Note
Notes Payable - Schedule of Notes Payable (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 01, 2013 |
Convertible Notes Payable [Abstract] | ' | ' | ' |
Notes, par value | $575,000,000 | $575,000,000 | $575,000,000 |
Less: debt discount net of amortization | -153,160,000 | -160,223,000 | ' |
Convertible senior notes, net | $421,840,000 | $414,777,000 | ' |
Notes_Payable_Schedule_of_Inte
Notes Payable - Schedule of Interest Expense Recognized (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Convertible Notes Payable [Abstract] | ' | ' |
Amortization of debt issuance cost | $380 | ' |
Amortization of premiums on investments | 6,701 | ' |
Amortization of debt discount and issuance cost | $7,081 | $0 |
Effective interest rate of the liability component | 6.50% | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Comprehensive Income [Abstract] | ' | ' |
Foreign currency translation adjustment | ($59) | ($234) |
Net unrealized loss on investments | -217 | -242 |
Accumulated other comprehensive loss, net of tax | ($276) | ($476) |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Stockholders' Equity | ' | ' |
Shares of common stock, authorized (shares) | 600,000,000 | ' |
Shares of common stock, issued and sold (shares) | 143,433,099 | ' |
Common Stock [Member] | ' | ' |
Stockholders' Equity | ' | ' |
Stock Issued During Period, Shares, New Issues | 3,078,494 | 6,527,072 |
Stockholders_Equity_Outstandin
Stockholders' Equity - Outstanding and Reserved Shares of Common Stock for Future Issuance (Detail) | Mar. 31, 2014 | Dec. 31, 2013 | |
Common stock outstanding and reserved shares of common stock for future issuance | ' | ' | |
Options outstanding | 20,931,056 | 23,399,374 | |
Total reserved shares of common stock for future issuance | 52,888,899 | ' | |
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 | 17,227,691 | [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 | 6,727,906 | [1] | ' |
Stock Options [Member] | ' | ' | |
Common stock outstanding and reserved shares of common stock for future issuance | ' | ' | |
Options outstanding | 20,931,056 | ' | |
Restricted Stock Units (RSUs) [Member] | ' | ' | |
Common stock outstanding and reserved shares of common stock for future issuance | ' | ' | |
RSUs | 8,002,246 | 5,427,509 | |
[1] | Refer to Note 11 for a description of these plans. |
Stock_Awards_Additional_Inform
Stock Awards - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 |
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 | 52,888,899 |
Weighted-average grant date fair value of options granted (usd per share) | $31.72 |
Fair value of vested shares | $8.10 |
Total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options | 70.6 |
Weighted-average remaining vesting period for unvested stock options | '2 years 6 months 23 days |
Minimum Percent of Target Award of Stock Plan | 0.00% |
Maximum Percent of Target Award of Stock Plan | 200.00% |
Estimated Percentage of Performance Goal Target Earned | 114.50% |
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 6 months 5 days |
Unrecognized compensation expense expected to be recognized | $317.20 |
Restricted Stock Units (RSUs) [Member] | First Vesting Period [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Compensation expense recognized, vesting term | '3 months |
Restricted Stock Units (RSUs) [Member] | Second Vesting Period [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Compensation expense recognized, vesting term | '3 months |
Restricted Stock Units (RSUs) [Member] | Third Vesting Period [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Compensation expense recognized, vesting term | '3 months |
Restricted Stock Units (RSUs) [Member] | Fourth Vesting Period [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Compensation expense recognized, vesting term | '3 months |
2012 Equity Incentive Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares of common stock outstanding, increase, percentage | 5.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 7,017,730 |
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% |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,403,546 |
Common stock purchase price percentage | 85.00% |
Award offering period | '6 months |
Stock_Awards_Summary_of_stock_
Stock Awards - Summary of stock option activity (Detail) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
Summary of stock option activity | ' |
Number of Shares, Outstanding, Beginning Balance | 23,399,374 |
Number of Shares, Granted | 221,480 |
Number of Shares, Exercised | -2,454,203 |
Number of shares, Cancelled | -235,595 |
Number of Shares, Outstanding, Ending Balance | 20,931,056 |
Number of Shares, Vested and expected to vest | 20,506,488 |
Number of Shares, Vested and exercisable | 8,738,620 |
Weighted-Average Exercise Price | ' |
Weighted-Average Exercise Price, Outstanding, Beginning Balance, usd per share | $9.07 |
Weighted-Average Exercise Price, Granted, usd per share | $65.37 |
Weighted-Average Exercise Price, Exercised, usd per share | $5.47 |
Weighted-Average Exercise Price Cancelled, usd per share | $22.21 |
Weighted-Average Exercise Price, Outstanding, Ending Balance, usd per share | $9.93 |
Weighted-Average Exercise Price, Vested and expected to vest, usd per share | $9.75 |
Weighted-Average Exercise Price, Vested and exercisable, usd per share | $4.85 |
Weighted-Average Remaining Contractual Life | '7 years 6 months 9 days |
Weighted-Average Remaining Contractual Term, Vested and expected to vest | '7 years 6 months 5 days |
Weighted-Average Remaining Contractual Term, Vested and exercisable | '7 years 0 months 7 days |
Aggregate Intrinsic Value, Exercised | $145,896 |
Aggregate Intrinsic Value, Outstanding | 1,047,622 |
Aggregate Intrinsic Value, Vested and expected to vest | 1,028,819 |
Aggregate Intrinsic Value, Vested and exercisable | $481,206 |
Stock_Awards_Stock_Awards_Rest
Stock Awards Stock Awards - Restricted Stock Unit Table (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
Restricted Stock Units (RSUs) [Member] | ' |
Shares Outstanding | ' |
Outstanding shares units beginning balance | 5,427,509 |
Granted | 3,148,839 |
Vested | -651,297 |
Forfeited | -172,805 |
Outstanding shares units ending balance | 8,002,246 |
Expected to vest | 7,230,337 |
Weighted-Average Grant Date Fair Value | ' |
Weighted-Average Grant Date Fair Value, Outstanding, Beginning Balance, usd per share | $34.02 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $65.48 |
Weighted-Average Grant Date Fair Value, Vested, usd per share | $22.25 |
Weighted-Average Grant Date Fair Value, Repurchased, usd per share | $38.57 |
Weighted-Average Grant Date Fair Value, Outstanding, Ending Balance, usd per share | $47.69 |
Aggregate Intrinsic Value, vested | $43,533,000 |
Aggregate Intrinsic Value, Non-vested | $479,495 |
Aggregated Intrinsic Value, Expected to vest | $433,242 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 7,752,246 |
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 | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator: | ' | ' |
Net loss | ($43,311) | ($13,358) |
Net loss attributable to common stockholders - basic | -43,311 | -13,358 |
Net loss attributable to common stockholders - diluted | ($43,311) | ($13,358) |
Denominator: | ' | ' |
Weighted-average shares used to compute net loss per share - basic and diluted | 142,060,025 | 129,782,029 |
Net income (loss) per share attributable to common stockholders: | ' | ' |
Earnings Per Share, Basic and Diluted | ($0.30) | ($0.10) |
Net_Income_Loss_Per_Share_Attr3
Net Income (Loss) Per Share Attributable to Common Stockholders - Summary of Potentially Dilutive Securities (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total potentially dilutive securities | 44,514,864 | 34,338,456 |
Common stock options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total potentially dilutive securities | 20,931,056 | 30,454,754 |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total potentially dilutive securities | 7,752,246 | 3,430,343 |
Common stock subject to repurchase [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total potentially dilutive securities | 65,925 | 188,186 |
ESPP obligations [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total potentially dilutive securities | 199,591 | 265,173 |
Convertible Notes Payable [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total potentially dilutive securities | 7,783,023 | 0 |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Total potentially dilutive securities | 7,783,023 | 0 |
Income_Taxes_Income_Taxes_Deta
Income Taxes Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Effective income tax rate | -3.00% | -4.00% |
Federal statutory rate | 34.00% | ' |
Information_about_Geographic_A2
Information about Geographic Areas - Revenues by Geographic Area, Based on Billing Location of Customer (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Percentage of U.S. Revenues in North America | 94.00% | 94.00% | ||
Revenues by geography | ' | ' | ||
Revenues | $139,090 | $85,939 | ||
North America [Member] | ' | ' | ||
Revenues by geography | ' | ' | ||
Revenues | 94,964 | [1] | 60,145 | [1] |
EuropeMiddleEastAfrica [Member] [Domain] | ' | ' | ||
Revenues by geography | ' | ' | ||
Revenues | 36,306 | [2] | 20,304 | [2] |
Asia Pacific and other [Member] | ' | ' | ||
Revenues by geography | ' | ' | ||
Revenues | $7,820 | $5,490 | ||
[1] | Revenues attributed to the United States were approximately 94% of North America revenues for the three months ended March 31, 2014 and 2013. | |||
[2] | Europe, the Middle East and Africa |
Information_about_Geographic_A3
Information about Geographic Areas - Long-lived Assets by Geographic Area (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Long-lived assets | $86,200 | $75,560 | ||
North America [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Long-lived assets | 56,594 | 52,937 | ||
EuropeMiddleEastAfrica [Member] [Domain] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Long-lived assets | 18,416 | [1] | 18,017 | [1] |
Asia Pacific and other [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Long-lived assets | $11,190 | $4,606 | ||
[1] | Europe, the Middle East and Africa |