Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 25, 2014 | |
Document And Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'LOCK | ' |
Entity Registrant Name | 'LifeLock, Inc. | ' |
Entity Central Index Key | '0001383871 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 92,775,848 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $166,650 | $123,911 |
Marketable securities | 49,385 | 48,688 |
Trade and other receivables, net | 12,087 | 10,906 |
Deferred tax assets, net | 18,585 | 13,117 |
Prepaid expenses and other current assets | 8,426 | 6,961 |
Total current assets | 255,133 | 203,583 |
Property and equipment, net | 20,604 | 16,504 |
Goodwill | 159,342 | 159,342 |
Intangible assets, net | 42,751 | 47,213 |
Deferred tax assets, net – noncurrent | 34,796 | 34,796 |
Other non-current assets | 1,307 | 1,812 |
Total assets | 513,933 | 463,250 |
Current liabilities: | ' | ' |
Accounts payable | 4,748 | 2,422 |
Accrued expenses and other liabilities | 42,638 | 34,926 |
Deferred revenue | 148,817 | 119,106 |
Total current liabilities | 196,203 | 156,454 |
Other non-current liabilities | 5,927 | 4,640 |
Total liabilities | 202,130 | 161,094 |
Commitments and contingencies | ' | ' |
Stockholders’ equity: | ' | ' |
Common stock, $0.001 par value, 300,000,000 authorized at June 30, 2014 and December 31, 2013; 92,610,621 and 91,441,771 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 92 | 91 |
Preferred stock, $0.001 par value, 10,000,000 shares authorized and no shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | ' | ' |
Additional paid-in capital | 487,240 | 469,636 |
Accumulated other comprehensive loss | -6 | -18 |
Accumulated deficit | -175,523 | -167,553 |
Total stockholders’ equity | 311,803 | 302,156 |
Total liabilities and stockholders’ equity | $513,933 | $463,250 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Common stock par value | $0.00 | $0.00 |
Common stock shares authorized | 300,000,000 | 300,000,000 |
Common stock shares issued | 92,610,621 | 91,441,771 |
Common stock shares outstanding | 92,610,621 | 91,441,771 |
Preferred stock par value | $0.00 | $0.00 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares issued | ' | ' |
Preferred stock shares outstanding | ' | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Consumer revenue | $109,338 | $82,574 | $210,333 | $157,667 |
Enterprise revenue | 6,375 | 6,946 | 12,966 | 13,947 |
Total revenue | 115,713 | 89,520 | 223,299 | 171,614 |
Cost of services | 29,536 | 25,227 | 59,603 | 49,031 |
Gross profit | 86,177 | 64,293 | 163,696 | 122,583 |
Costs and expenses: | ' | ' | ' | ' |
Sales and marketing | 58,774 | 43,248 | 115,621 | 85,041 |
Technology and development | 13,524 | 10,370 | 26,672 | 19,394 |
General and administrative | 16,329 | 10,900 | 30,301 | 20,323 |
Amortization of acquired intangible assets | 2,231 | 1,966 | 4,462 | 3,932 |
Total costs and expenses | 90,858 | 66,484 | 177,056 | 128,690 |
Loss from operations | -4,681 | -2,191 | -13,360 | -6,107 |
Other income (expense): | ' | ' | ' | ' |
Interest expense | -88 | -79 | -175 | -146 |
Interest income | 56 | 26 | 116 | 46 |
Other | -6 | ' | -17 | -4 |
Total other expense | -38 | -53 | -76 | -104 |
Loss before provision for income taxes | -4,719 | -2,244 | -13,436 | -6,211 |
Income tax benefit | -1,919 | -179 | -5,467 | -29 |
Net loss | ($2,800) | ($2,065) | ($7,969) | ($6,182) |
Net loss per share: | ' | ' | ' | ' |
Basic | ($0.03) | ($0.02) | ($0.09) | ($0.07) |
Diluted | ($0.03) | ($0.02) | ($0.09) | ($0.07) |
Weighted-average common shares outstanding used in computing net loss per share: | ' | ' | ' | ' |
Basic | 92,471 | 87,533 | 92,189 | 87,089 |
Diluted | 92,471 | 87,533 | 92,189 | 87,089 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net loss | ($2,800) | ($2,065) | ($7,969) | ($6,182) |
Other comprehensive gain, net of tax | ' | ' | ' | ' |
Unrealized gain on marketable securities | 4 | ' | 12 | ' |
Comprehensive loss | ($2,796) | ($2,065) | ($7,957) | ($6,182) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities | ' | ' |
Net loss | ($7,969) | ($6,182) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 8,165 | 6,360 |
Share-based compensation | 12,521 | 6,261 |
Provision for doubtful accounts | 300 | 95 |
Amortization of premium on marketable securities | 732 | ' |
Deferred income tax benefit | -5,468 | -212 |
Other | 2 | 4 |
Changes in operating assets and liabilities: | ' | ' |
Trade and other receivables | -2,189 | -3,244 |
Prepaid expenses and other current assets | -1,465 | -470 |
Other non-current assets | 505 | 432 |
Accounts payable | 2,052 | -134 |
Accrued expenses and other liabilities | 7,828 | 3,179 |
Deferred revenue | 29,711 | 25,089 |
Other non-current liabilities | 1,288 | 2,408 |
Net cash provided by operating activities | 46,013 | 33,586 |
Investing activities | ' | ' |
Acquisition of property and equipment | -7,662 | -3,652 |
Purchase of marketable securities | -19,662 | ' |
Maturities of marketable securities | 18,990 | ' |
Net cash used in investing activities | -8,334 | -3,652 |
Financing activities | ' | ' |
Proceeds from share-based compensation plans | 5,501 | 5,753 |
Payments for employee tax withholdings related to restricted stock | -441 | ' |
Payments for debt issuance costs | ' | -440 |
Net cash provided by financing activities | 5,060 | 5,313 |
Net increase in cash and cash equivalents | 42,739 | 35,247 |
Cash and cash equivalents at beginning of period | 123,911 | 134,197 |
Cash and cash equivalents at end of period | $166,650 | $169,444 |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Description of Business and Basis of Presentation | ' |
1. Description of Business and Basis of Presentation | |
We provide proactive identity theft protection services to our consumer subscribers, whom we refer to as our members, on an annual or monthly subscription basis. We also provide fraud and risk solutions to our enterprise customers. | |
We were incorporated in Delaware on April 12, 2005 and are headquartered in Tempe, Arizona. On March 14, 2012, we acquired ID Analytics, Inc. and its wholly owned subsidiary IDA, Inc., collectively, ID Analytics, each of which is incorporated in Delaware. On December 11, 2013, we acquired Lemon, Inc., or Lemon, which is incorporated in Delaware. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013. | |
The condensed consolidated balance sheet as of December 31, 2013 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by U.S. GAAP. | |
The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the entire year ending December 31, 2014 or any future period. | |
Basis of Consolidation | |
The condensed consolidated financial statements include our accounts and those of our wholly owned subsidiaries. We eliminate all intercompany balances and transactions, including intercompany profits, and unrealized gains and losses in consolidation. | |
Use of Estimates | |
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. We base our estimates on historical experience, current business factors, and various other assumptions that we believe are necessary to consider in forming a basis for making judgments about the carrying values of assets and liabilities, the recorded amounts of revenue and expenses, and the disclosure of contingent assets and liabilities. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
Significant Accounting Policies | |
There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013. | |
Recently Issued Accounting Standards | |
In April 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update (ASU) No. 2014-08, Reporting Discontinued Operations and Disclosures of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The updated guidance defines discontinued operations as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results and expands the disclosure requirements for discontinued operations and adds new disclosures for individually significant dispositions that do not qualify as discontinued operations. ASU No. 2014-08 is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014. ASU No. 2014-08 would be applied to any future applicable transaction. | |
In May 2014, the FASB issued ASU 2014-09, which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This guidance will be effective for us in the first quarter of our fiscal year ending December 31, 2017. Early adoption is not permitted. We are currently in the process of evaluating the impact of adoption of this ASU on our consolidated financial statements. |
Business_Combinations
Business Combinations | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Business Combinations | ' | ||||
3. Business Combinations | |||||
Acquisition of Lemon | |||||
On December 11, 2013, we acquired Lemon, a mobile wallet innovator. In connection with this acquisition, we launched our new LifeLock mobile application. The aggregate purchase price consisted of approximately $42,369 of cash paid at the closing (net of cash acquired of $3,315). We preliminarily allocated the total purchase consideration to the assets acquired and liabilities assumed at their estimated fair values as of the date of acquisition, as determined by management, and, with respect to identifiable intangible assets, by management with the assistance of a valuation provided by a third-party valuation firm. We recorded the excess of the purchase price over the amounts allocated to assets acquired and liabilities assumed as goodwill in our consumer segment. | |||||
The allocation of the purchase price of the acquired assets and liabilities as of December 31, 2013 was based on provisional measurements of fair value as determined by management. Subsequent to the filing of our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, we determined that approximately $7,894 and $7,991 of Lemon’s federal and state net operating loss carryforwards, respectively, would expire as a result of limitations under Section 382 of the Internal Revenue Code. As such, we reduced deferred tax assets, net – noncurrent by $3,222, increasing goodwill. This adjustment has been reflected in the December 31, 2013 balances of deferred tax assets, net – noncurrent and goodwill in the accompanying condensed consolidated balance sheets. | |||||
We accounted for this acquisition using the acquisition method in accordance with Accounting Standards Codification, or ASC, 805, Business Combinations. Accordingly, we allocated the purchase price of the acquired assets and liabilities based on their estimated fair values as of the acquisition date as summarized in the following table: | |||||
Net assets assumed | $ | 3,184 | |||
Deferred tax assets, net - noncurrent | 8,706 | ||||
Intangible assets acquired | 3,880 | ||||
Goodwill | 29,914 | ||||
Total purchase price consideration | $ | 45,684 | |||
Marketable_Securities
Marketable Securities | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Marketable Securities | ' | |||||||||||||||
4. Marketable Securities | ||||||||||||||||
The following is a summary of marketable securities designated as available-for-sale as of June 30, 2014: | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Corporate bonds | $ | 35,914 | $ | — | $ | (17 | ) | $ | 35,897 | |||||||
Municipal bonds | 12,989 | 2 | (1 | ) | 12,990 | |||||||||||
Certificates of deposit | 498 | — | — | 498 | ||||||||||||
Total marketable securities | $ | 49,401 | $ | 2 | $ | (18 | ) | $ | 49,385 | |||||||
All marketable securities are classified as current regardless of contractual maturity dates because we consider such investments to represent cash available for current operations. | ||||||||||||||||
As of June 30, 2014, we did not consider any of our marketable securities to be other-than-temporarily impaired. When evaluating our investments for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer, our ability and intent to hold the security and whether it is more likely than not that we will be required to sell the investment before recovery of its cost basis. | ||||||||||||||||
The following is a summary of amortized cost and estimated fair value of marketable securities as of June 30, 2014, by maturity: | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Due in one year or less | $ | 48,132 | $ | 2 | $ | (18 | ) | $ | 48,116 | |||||||
Due after one year | 1,269 | — | — | 1,269 | ||||||||||||
Total marketable securities | $ | 49,401 | $ | 2 | $ | (18 | ) | $ | 49,385 | |||||||
The following is a summary of marketable securities designated as available-for-sale as of December 31, 2013: | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Corporate bonds | $ | 37,399 | $ | 1 | $ | (29 | ) | $ | 37,371 | |||||||
Municipal bonds | 10,820 | 2 | (3 | ) | 10,819 | |||||||||||
Certificates of deposit | 498 | - | - | 498 | ||||||||||||
Total marketable securities | $ | 48,717 | $ | 3 | $ | (32 | ) | $ | 48,688 | |||||||
The following is a summary of amortized cost and estimated fair value of marketable securities as of December 31, 2013, by maturity: | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Due in one year or less | $ | 47,398 | $ | 3 | $ | (32 | ) | $ | 47,369 | |||||||
Due after one year | 1,319 | - | - | 1,319 | ||||||||||||
Total marketable securities | $ | 48,717 | $ | 3 | $ | (32 | ) | $ | 48,688 | |||||||
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||
5. Stockholders’ Equity | ||||||||||||||||
Share-Based Compensation | ||||||||||||||||
We issue share-based awards to our employees in the form of stock options, restricted stock units, and restricted stock. We also have an employee stock purchase plan. The following table summarizes the components of share-based compensation expense included in our condensed consolidated statements of operations for the three- and six-month periods ended June 30: | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Cost of services | $ | 489 | $ | 206 | $ | 832 | $ | 412 | ||||||||
Sales and marketing | 1,309 | 386 | 2,203 | 719 | ||||||||||||
Technology and development | 1,942 | 824 | 3,915 | 1,339 | ||||||||||||
General and administrative | 3,306 | 2,121 | 5,571 | 3,791 | ||||||||||||
Total share-based compensation | $ | 7,046 | $ | 3,537 | $ | 12,521 | $ | 6,261 | ||||||||
Unrecognized share-based compensation expenses totaled $81,947 as of June 30, 2014, which we expect to recognize over a weighted-average time period of 3.2 years. | ||||||||||||||||
Stock Warrants | ||||||||||||||||
As of June 30, 2014, we had the following warrants to purchase common stock outstanding: | ||||||||||||||||
Expiration Date | Shares | Exercise | ||||||||||||||
Price | ||||||||||||||||
October 3, 2014 | 2,334,044 | 0.7 | ||||||||||||||
December 19, 2014 | 166,666 | 4.5 | ||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
6. Fair Value Measurements | ||||||||||||||||
As of June 30, 2014 and December 31, 2013, the fair value of our financial assets was as follows: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
30-Jun-14 | ||||||||||||||||
Assets: | ||||||||||||||||
Commercial paper (1) | $ | 45,156 | $ | — | $ | — | $ | 45,156 | ||||||||
Money market funds (1) | 60,054 | — | — | 60,054 | ||||||||||||
Corporate bonds (2) | — | 35,897 | — | 35,897 | ||||||||||||
Municipal bonds (3) | — | 13,175 | — | 13,175 | ||||||||||||
Certificates of deposit (2) | — | 498 | — | 498 | ||||||||||||
Total assets measured at fair value | $ | 105,210 | $ | 49,570 | $ | — | $ | 154,780 | ||||||||
31-Dec-13 | ||||||||||||||||
Assets: | ||||||||||||||||
Commercial paper (1) | $ | — | $ | 45,110 | $ | — | $ | 45,110 | ||||||||
Money market funds (1) | 911 | — | — | 911 | ||||||||||||
Corporate bonds (2) | — | 37,371 | — | 37,371 | ||||||||||||
Municipal bonds (2) | — | 10,819 | — | 10,819 | ||||||||||||
Certificates of deposit (2) | — | 498 | — | 498 | ||||||||||||
Total assets measured at fair value | $ | 911 | $ | 93,798 | $ | — | $ | 94,709 | ||||||||
-1 | Classified in cash and cash equivalents | |||||||||||||||
-2 | Classified in marketable securities | |||||||||||||||
-3 | Includes a short-term, highly rated, highly liquid investment that is included in cash and cash equivalents as the original maturity date was less than three months at the time of purchase. Municipal bond investments with original maturity dates greater than three months at the time of purchase are classified in marketable securities. | |||||||||||||||
The fair values of our cash equivalents and available-for-sale securities included in the Level 1 and Level 2 categories are obtained from an independent pricing service, which uses a model driven valuation technique using observable market data or inputs corroborated by observable market data. |
Net_Loss_Per_Share
Net Loss Per Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Net Loss Per Share | ' | |||||||||||||||
7. Net Loss Per Share | ||||||||||||||||
The following table sets forth the computation of basic and diluted net loss per share for the three- and six-month periods ended June 30: | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net loss | $ | (2,800 | ) | $ | (2,065 | ) | $ | (7,969 | ) | $ | (6,182 | ) | ||||
Denominator (basic and diluted): | ||||||||||||||||
Weighted average common shares outstanding | 92,471,009 | 87,532,810 | 92,188,591 | 87,088,642 | ||||||||||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.09 | ) | $ | (0.07 | ) | ||||
Diluted | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.09 | ) | $ | (0.07 | ) | ||||
For the three- and six-month periods ended June 30, 2014 and 2013, potentially dilutive securities are not included in the calculation of diluted loss per share as their impact would be anti-dilutive. The following weighted-average number of outstanding stock options, restricted stock units and restricted stock awards, common equivalent shares from stock warrants, and shares purchased under our Employee Stock Purchase Plan, or ESPP, were excluded from the computation of diluted net loss per share for the three- and six-month periods ended June 30: | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options outstanding | 3,021,735 | 5,016,362 | 3,714,028 | 5,276,932 | ||||||||||||
Restricted stock units and awards | 116,119 | 62,299 | 218,577 | 64,436 | ||||||||||||
Common equivalent shares from stock warrants | 2,326,302 | 2,262,543 | 2,356,681 | 2,292,039 | ||||||||||||
Shares purchased under ESPP | 7,063 | — | 29,190 | — | ||||||||||||
5,471,219 | 7,341,204 | 6,318,476 | 7,633,407 | |||||||||||||
Segment_Reporting
Segment Reporting | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting | ' | |||||||||||||||
8. Segment Reporting | ||||||||||||||||
Following our acquisition of ID Analytics in the first quarter of 2012, we began operating our business and reviewing and assessing our operating performance using two reportable segments: our consumer segment and our enterprise segment. In our consumer segment, we offer proactive identity theft protection services to our members on an annual or monthly subscription basis. In our enterprise segment, we offer fraud and risk solutions to our enterprise customers. | ||||||||||||||||
Financial information about our segments during the three-month period ended June 30, 2014 and as of June 30, 2014 was as follows: | ||||||||||||||||
Consumer | Enterprise | Eliminations | Total | |||||||||||||
Revenue: | ||||||||||||||||
External customers | $ | 109,338 | $ | 6,375 | $ | — | $ | 115,713 | ||||||||
Intersegment revenue | — | 1,635 | (1,635 | ) | — | |||||||||||
Loss from operations | (278 | ) | (4,403 | ) | — | (4,681 | ) | |||||||||
Goodwill | 99,805 | 59,537 | — | 159,342 | ||||||||||||
Total assets | 405,617 | 108,878 | (562 | ) | 513,933 | |||||||||||
Loss from operations in our consumer and enterprise segments for the three-month period ended June 30, 2014 includes amortization of acquired intangible assets of $265 and $1,966, respectively. | ||||||||||||||||
Financial information about our segments during the six-month period ended June 30, 2014 was as follows: | ||||||||||||||||
Consumer | Enterprise | Eliminations | Total | |||||||||||||
Revenue: | ||||||||||||||||
External customers | $ | 210,333 | $ | 12,966 | $ | — | $ | 223,299 | ||||||||
Intersegment revenue | — | 3,149 | (3,149 | ) | — | |||||||||||
Loss from operations | (4,801 | ) | (8,559 | ) | — | (13,360 | ) | |||||||||
Loss from operations in our consumer and enterprise segments for the six-month period ended June 30, 2014 includes amortization of acquired intangible assets of $530 and $3,932, respectively. | ||||||||||||||||
Financial information about our segments during the three-month period ended June 30, 2013 and as of December 31, 2013 was as follows: | ||||||||||||||||
Consumer | Enterprise | Eliminations | Total | |||||||||||||
Revenue: | ||||||||||||||||
External customers | $ | 82,574 | $ | 6,946 | $ | — | $ | 89,520 | ||||||||
Intersegment revenue | — | 1,307 | (1,307 | ) | — | |||||||||||
Income (loss) from operations | 762 | (2,953 | ) | — | (2,191 | ) | ||||||||||
Goodwill | 99,805 | 59,537 | — | 159,342 | ||||||||||||
Total assets | 349,394 | 114,337 | (481 | ) | 463,250 | |||||||||||
Loss from operations in our enterprise segment for the three-month period ended June 30, 2013 includes amortization of acquired intangible assets of $1,966. | ||||||||||||||||
Financial information about our segments during the six-month period ended June 30, 2013 was as follows: | ||||||||||||||||
Consumer | Enterprise | Eliminations | Total | |||||||||||||
Revenue: | ||||||||||||||||
External customers | $ | 157,667 | $ | 13,947 | $ | — | $ | 171,614 | ||||||||
Intersegment revenue | — | 2,544 | (2,544 | ) | — | |||||||||||
Income (loss) from operations | 129 | (6,236 | ) | — | (6,107 | ) | ||||||||||
Loss from operations in our enterprise segment for the six-month period ended June 30, 2013 includes amortization of acquired intangible assets of $3,932. | ||||||||||||||||
We had no amortization of acquired intangible assets within our consumer segment for the three- and six-month periods ended June 30, 2013, as our consumer segment did not have acquired intangible assets until our purchase of Lemon in December 2013. | ||||||||||||||||
We allocated goodwill between our segments by estimating the expected synergies to each segment. | ||||||||||||||||
We derive all of our revenue from sales in the United States, and substantially all of our long-lived assets are located in the United States. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Taxes | ' |
9. Income Taxes | |
Income taxes for the interim periods presented have been included in the accompanying condensed consolidated financial statements on the basis of an estimated annual effective tax rate. Based on an estimated annual effective tax rate and discrete items, the estimated income tax benefit from operations for the three- and six-month periods ended June 30, 2014 was approximately $1,919 and $5,467, respectively. For the three- and six-month periods ended June 30, 2013, the estimated income tax benefit from operations was $179 and $29, respectively. The determination of the interim period income tax provision utilizes the effective tax rate method, which requires us to estimate certain annualized components of the calculation of the income tax provision, including the annual effective tax rate by entity and jurisdiction. | |
In the fourth quarter of 2013, in connection with the acquisition of Lemon and the preliminary purchase price allocation, we analyzed Lemon’s prior ownership changes, including the change which arose as a result of our acquisition of Lemon. As a result of the preliminary analysis, we estimated that none of Lemon’s net operating loss carryforwards would expire as a result of limitations under Section 382 of the Internal Revenue Code. Subsequent to the filing of our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, we received responses from certain former shareholders who had held a 5% or greater ownership interest in Lemon prior to the acquisition and determined that due to the ownership changes of those former shareholders, approximately $7,894 and $7,991 of Lemon’s federal and state net operating loss carryforwards, respectively, will expire solely as a result of the Section 382 limitations. As such, we retrospectively adjusted our preliminary purchase price allocation to reflect this information. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Contingencies | ' |
10. Contingencies | |
As part of our consumer services, we offer 24x7x365 member service support. If a member’s identity has been compromised, our member service team and remediation specialists will assist the member until the issue has been resolved. This includes our $1 million service guarantee, which is backed by an identity theft insurance policy, under which we will spend up to $1 million to cover certain third-party costs and expenses incurred in connection with the remediation, such as legal and investigatory fees. This insurance also covers certain out-of-pocket expenses, such as loss of income, replacement of fraudulent withdrawals, and costs associated with child and elderly care, travel, stolen purse/wallet, and replacement of documents. While we have reimbursed members for claims under this guarantee, the amounts in aggregate for the three- and six-month periods ended June 30, 2014 and 2013 were not material. | |
In September 2012, Denise Richardson filed a complaint against our company and Todd Davis. Ms. Richardson claims that she was improperly classified as an independent contractor instead of an employee and that we breached the terms of an alleged employment agreement. Ms. Richardson claims she is entitled to equitable relief, compensatory damages, liquidated damages, statutory penalties, punitive damages, interest, costs, and attorneys’ fees. On March 31, 2014, our motion to dismiss was granted in part and denied in part with the court dismissing nine of the ten counts that were subject to the motion to dismiss, including the single count against Mr. Davis. On April 23, 2014, Ms. Richardson filed an amended complaint against our company and Mr. Davis again claiming that she was improperly classified as an independent contractor instead of an employee and that we breached the terms of an alleged employment agreement. Ms. Richardson claims she is entitled to equitable relief, compensatory damages, liquidated damages, statutory penalties, punitive damages, interest, costs, and attorneys’ fees. On April 29, 2014, Mr. Davis and we filed a motion to dismiss all but one of the counts in such amended complaint. On June 11, 2014, Ms. Richardson filed a Notice of Voluntary Dismissal by which she voluntarily dismissed her ERISA claims against us, as well as her only claim against Mr. Davis. With respect to the remaining claims that are the subject of our motion to dismiss, the motion is awaiting decision by the court. The court has set a scheduling conference in the matter for August 18, 2014. | |
On March 3, 2014, Dawn B. Bien, representing herself and seeking to represent a class of persons who acquired our securities from February 26, 2013 to February 19, 2014, inclusive, or the Class Period, filed a complaint in United States District Court for the District of Arizona against us, Todd Davis, and Chris Power. We refer to this complaint as the Bien Complaint. The Bien Complaint alleges that we and Messrs. Davis and Power, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, disseminated materially false or misleading information, or failed to disclose material facts during the Class Period in connection with our business and our operational and compliance policies, including our and Mr. Davis’s compliance with the Stipulated Final Judgment and Order for Permanent Injunction and Other Equitable Relief entered into in March 2010 with the Federal Trade Commission, or the FTC Order, wherein we settled allegations by the Federal Trade Commission challenging certain of our advertising and marketing. The Bien Complaint also contends that as a result of alleged violations of governmental laws, regulations, and the FTC Order, our financial statements were materially false and misleading at all relevant times. The Bien Complaint seeks certification as a class action, compensatory damages, and attorneys’ fees and costs. On March 10, 2014, Joseph F. Scesny, representing himself and seeking to represent a class of persons who acquired our securities during the Class Period filed a complaint in United States District Court for the District of Arizona against us, Todd Davis, and Chris Power. We refer to this complaint as the Scesny Complaint. The Scesny Complaint is substantially similar to the Bien Complaint and seeks substantially similar relief. On June 16, 2014, the court consolidated the Scesny Complaint and the Bien Complaint into a single action captioned In re LifeLock, Inc. Securities Litigation. The court also appointed a lead plaintiff and lead counsel. Pursuant to the parties’ stipulation, and the order of the court dated July 2, 2014, a consolidated amended complaint is due to be filed no later than August 15, 2014. We anticipate filing a motion to dismiss that complaint by September 15, 2014. | |
On March 13, 2014, we received a request from the Federal Trade Commission, or the FTC, for documents and information related to our compliance with the FTC Order. Prior to our receipt of the FTC’s request, we met with FTC Staff on January 17, 2014, at our request, to discuss issues regarding allegations that have been asserted in a whistleblower claim against us relating to our compliance with the FTC Order. On March 13, 2014, we received a request from the FTC for documents and information related to our compliance with the FTC Order. We are in the process of completing our response to the FTC’s March 13, 2014 request for information regarding our information security program and alert and notification processing, along with a subsequent request for clarification regarding certain information that we previously submitted. | |
On March 20, 2014, Michael D. Peters filed a complaint in United States District Court for the District of Arizona against our company, Kim Jones, and Cristy Schaan. Mr. Jones is not affiliated with us. Ms. Schaan is our Chief Information Security Officer. In his complaint, Mr. Peters alleges that we violated the whistleblower protection provisions of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, and the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act, by terminating Mr. Peters’ employment as a result of alleged disclosures that he made to us, and that Ms. Schaan defamed Mr. Peters. Mr. Peters seeks from us two times his back pay, two times the value of certain stock options and bonus, moving expenses, damages for emotional harm and anxiety, damages for harm to reputation, litigation costs including attorneys’ fees, and interest, and seeks from Ms. Schaan actual damages, punitive damages, and interest. On April 21, 2014, we filed an answer, affirmative defenses, and counterclaims, answering Mr. Peters’ claim under the Sarbanes-Oxley Act and asserting counterclaims against Mr. Peters for fraud, negligent misrepresentation, breach of contract, and unjust enrichment, based on our allegations that we were induced to hire Mr. Peters by his false statements and misrepresentations regarding his employment history and seeking to recover actual and consequential damages, punitive damages, attorneys’ fees, and the $15 signing bonus paid to Mr. Peters. Mr. Peters answered our counterclaims on May 7, 2014. On April 21, 2014, we also filed a motion to dismiss Mr. Peters’ claim under the Dodd-Frank Act. On April 25, 2014, Ms. Schaan filed a motion to dismiss Mr. Peters’ claim against her. On June 2, 2014, Mr. Peters filed a motion for judgment on the pleadings directed to our unjust enrichment counterclaim, one of the four counterclaims we brought against Mr. Peters. All three of the motions are awaiting decision by the court. | |
We are subject to other legal proceedings and claims that have arisen in the ordinary course of business. Although there can be no assurance as to the ultimate disposition of these matters and the proceedings disclosed above, we believe, based upon the information available at this time, that a material adverse outcome related to the matters is neither probable nor estimable. |
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013. | |
The condensed consolidated balance sheet as of December 31, 2013 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by U.S. GAAP. | |
The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the entire year ending December 31, 2014 or any future period. | |
Basis of Consolidation | ' |
Basis of Consolidation | |
The condensed consolidated financial statements include our accounts and those of our wholly owned subsidiaries. We eliminate all intercompany balances and transactions, including intercompany profits, and unrealized gains and losses in consolidation. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make certain estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. We base our estimates on historical experience, current business factors, and various other assumptions that we believe are necessary to consider in forming a basis for making judgments about the carrying values of assets and liabilities, the recorded amounts of revenue and expenses, and the disclosure of contingent assets and liabilities. | |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013. | |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
In April 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update (ASU) No. 2014-08, Reporting Discontinued Operations and Disclosures of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The updated guidance defines discontinued operations as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results and expands the disclosure requirements for discontinued operations and adds new disclosures for individually significant dispositions that do not qualify as discontinued operations. ASU No. 2014-08 is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014. ASU No. 2014-08 would be applied to any future applicable transaction. | |
In May 2014, the FASB issued ASU 2014-09, which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This guidance will be effective for us in the first quarter of our fiscal year ending December 31, 2017. Early adoption is not permitted. We are currently in the process of evaluating the impact of adoption of this ASU on our consolidated financial statements. |
Business_Combinations_Tables
Business Combinations (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Schedule of Purchase Price of Acquired Assets and Liabilities Based on Estimated Fair Values | ' | ||||
We accounted for this acquisition using the acquisition method in accordance with Accounting Standards Codification, or ASC, 805, Business Combinations. Accordingly, we allocated the purchase price of the acquired assets and liabilities based on their estimated fair values as of the acquisition date as summarized in the following table: | |||||
Net assets assumed | $ | 3,184 | |||
Deferred tax assets, net - noncurrent | 8,706 | ||||
Intangible assets acquired | 3,880 | ||||
Goodwill | 29,914 | ||||
Total purchase price consideration | $ | 45,684 | |||
Marketable_Securities_Tables
Marketable Securities (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Summary of Marketable Securities Designated as Available-for-Sale | ' | |||||||||||||||
The following is a summary of marketable securities designated as available-for-sale as of June 30, 2014: | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Corporate bonds | $ | 35,914 | $ | — | $ | (17 | ) | $ | 35,897 | |||||||
Municipal bonds | 12,989 | 2 | (1 | ) | 12,990 | |||||||||||
Certificates of deposit | 498 | — | — | 498 | ||||||||||||
Total marketable securities | $ | 49,401 | $ | 2 | $ | (18 | ) | $ | 49,385 | |||||||
The following is a summary of marketable securities designated as available-for-sale as of December 31, 2013: | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Corporate bonds | $ | 37,399 | $ | 1 | $ | (29 | ) | $ | 37,371 | |||||||
Municipal bonds | 10,820 | 2 | (3 | ) | 10,819 | |||||||||||
Certificates of deposit | 498 | - | - | 498 | ||||||||||||
Total marketable securities | $ | 48,717 | $ | 3 | $ | (32 | ) | $ | 48,688 | |||||||
Summary of Amortized Cost and Estimated Fair Value of Marketable Securities by Maturity | ' | |||||||||||||||
The following is a summary of amortized cost and estimated fair value of marketable securities as of June 30, 2014, by maturity: | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Due in one year or less | $ | 48,132 | $ | 2 | $ | (18 | ) | $ | 48,116 | |||||||
Due after one year | 1,269 | — | — | 1,269 | ||||||||||||
Total marketable securities | $ | 49,401 | $ | 2 | $ | (18 | ) | $ | 49,385 | |||||||
The following is a summary of amortized cost and estimated fair value of marketable securities as of December 31, 2013, by maturity: | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
Due in one year or less | $ | 47,398 | $ | 3 | $ | (32 | ) | $ | 47,369 | |||||||
Due after one year | 1,319 | - | - | 1,319 | ||||||||||||
Total marketable securities | $ | 48,717 | $ | 3 | $ | (32 | ) | $ | 48,688 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Summary of Components of Share-Based Compensation Expense | ' | |||||||||||||||
We issue share-based awards to our employees in the form of stock options, restricted stock units, and restricted stock. We also have an employee stock purchase plan. The following table summarizes the components of share-based compensation expense included in our condensed consolidated statements of operations for the three- and six-month periods ended June 30: | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Cost of services | $ | 489 | $ | 206 | $ | 832 | $ | 412 | ||||||||
Sales and marketing | 1,309 | 386 | 2,203 | 719 | ||||||||||||
Technology and development | 1,942 | 824 | 3,915 | 1,339 | ||||||||||||
General and administrative | 3,306 | 2,121 | 5,571 | 3,791 | ||||||||||||
Total share-based compensation | $ | 7,046 | $ | 3,537 | $ | 12,521 | $ | 6,261 | ||||||||
Warrant Purchase | ' | |||||||||||||||
As of June 30, 2014, we had the following warrants to purchase common stock outstanding: | ||||||||||||||||
Expiration Date | Shares | Exercise | ||||||||||||||
Price | ||||||||||||||||
October 3, 2014 | 2,334,044 | 0.7 | ||||||||||||||
December 19, 2014 | 166,666 | 4.5 | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value of Financial Assets and Liabilities | ' | |||||||||||||||
As of June 30, 2014 and December 31, 2013, the fair value of our financial assets was as follows: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
30-Jun-14 | ||||||||||||||||
Assets: | ||||||||||||||||
Commercial paper (1) | $ | 45,156 | $ | — | $ | — | $ | 45,156 | ||||||||
Money market funds (1) | 60,054 | — | — | 60,054 | ||||||||||||
Corporate bonds (2) | — | 35,897 | — | 35,897 | ||||||||||||
Municipal bonds (3) | — | 13,175 | — | 13,175 | ||||||||||||
Certificates of deposit (2) | — | 498 | — | 498 | ||||||||||||
Total assets measured at fair value | $ | 105,210 | $ | 49,570 | $ | — | $ | 154,780 | ||||||||
31-Dec-13 | ||||||||||||||||
Assets: | ||||||||||||||||
Commercial paper (1) | $ | — | $ | 45,110 | $ | — | $ | 45,110 | ||||||||
Money market funds (1) | 911 | — | — | 911 | ||||||||||||
Corporate bonds (2) | — | 37,371 | — | 37,371 | ||||||||||||
Municipal bonds (2) | — | 10,819 | — | 10,819 | ||||||||||||
Certificates of deposit (2) | — | 498 | — | 498 | ||||||||||||
Total assets measured at fair value | $ | 911 | $ | 93,798 | $ | — | $ | 94,709 | ||||||||
-1 | Classified in cash and cash equivalents | |||||||||||||||
-2 | Classified in marketable securities | |||||||||||||||
-3 | Includes a short-term, highly rated, highly liquid investment that is included in cash and cash equivalents as the original maturity date was less than three months at the time of purchase. Municipal bond investments with original maturity dates greater than three months at the time of purchase are classified in marketable securities. |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted net loss per share for the three- and six-month periods ended June 30: | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net loss | $ | (2,800 | ) | $ | (2,065 | ) | $ | (7,969 | ) | $ | (6,182 | ) | ||||
Denominator (basic and diluted): | ||||||||||||||||
Weighted average common shares outstanding | 92,471,009 | 87,532,810 | 92,188,591 | 87,088,642 | ||||||||||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.09 | ) | $ | (0.07 | ) | ||||
Diluted | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.09 | ) | $ | (0.07 | ) | ||||
Stock Options, Restricted Stock Units and Awards, Common Equivalent Shares from Stock Warrants, and Shares Purchased Under our Employee Stock Purchase Plan, or Espp Excluded from Computation of Diluted Net Loss Per Share | ' | |||||||||||||||
For the three- and six-month periods ended June 30, 2014 and 2013, potentially dilutive securities are not included in the calculation of diluted loss per share as their impact would be anti-dilutive. The following weighted-average number of outstanding stock options, restricted stock units and restricted stock awards, common equivalent shares from stock warrants, and shares purchased under our Employee Stock Purchase Plan, or ESPP, were excluded from the computation of diluted net loss per share for the three- and six-month periods ended June 30: | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock options outstanding | 3,021,735 | 5,016,362 | 3,714,028 | 5,276,932 | ||||||||||||
Restricted stock units and awards | 116,119 | 62,299 | 218,577 | 64,436 | ||||||||||||
Common equivalent shares from stock warrants | 2,326,302 | 2,262,543 | 2,356,681 | 2,292,039 | ||||||||||||
Shares purchased under ESPP | 7,063 | — | 29,190 | — | ||||||||||||
5,471,219 | 7,341,204 | 6,318,476 | 7,633,407 | |||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Financial Information of Segments | ' | |||||||||||||||
Financial information about our segments during the three-month period ended June 30, 2014 and as of June 30, 2014 was as follows: | ||||||||||||||||
Consumer | Enterprise | Eliminations | Total | |||||||||||||
Revenue: | ||||||||||||||||
External customers | $ | 109,338 | $ | 6,375 | $ | — | $ | 115,713 | ||||||||
Intersegment revenue | — | 1,635 | (1,635 | ) | — | |||||||||||
Loss from operations | (278 | ) | (4,403 | ) | — | (4,681 | ) | |||||||||
Goodwill | 99,805 | 59,537 | — | 159,342 | ||||||||||||
Total assets | 405,617 | 108,878 | (562 | ) | 513,933 | |||||||||||
Financial information about our segments during the six-month period ended June 30, 2014 was as follows: | ||||||||||||||||
Consumer | Enterprise | Eliminations | Total | |||||||||||||
Revenue: | ||||||||||||||||
External customers | $ | 210,333 | $ | 12,966 | $ | — | $ | 223,299 | ||||||||
Intersegment revenue | — | 3,149 | (3,149 | ) | — | |||||||||||
Loss from operations | (4,801 | ) | (8,559 | ) | — | (13,360 | ) | |||||||||
Financial information about our segments during the three-month period ended June 30, 2013 and as of December 31, 2013 was as follows: | ||||||||||||||||
Consumer | Enterprise | Eliminations | Total | |||||||||||||
Revenue: | ||||||||||||||||
External customers | $ | 82,574 | $ | 6,946 | $ | — | $ | 89,520 | ||||||||
Intersegment revenue | — | 1,307 | (1,307 | ) | — | |||||||||||
Income (loss) from operations | 762 | (2,953 | ) | — | (2,191 | ) | ||||||||||
Goodwill | 99,805 | 59,537 | — | 159,342 | ||||||||||||
Total assets | 349,394 | 114,337 | (481 | ) | 463,250 | |||||||||||
Financial information about our segments during the six-month period ended June 30, 2013 was as follows: | ||||||||||||||||
Consumer | Enterprise | Eliminations | Total | |||||||||||||
Revenue: | ||||||||||||||||
External customers | $ | 157,667 | $ | 13,947 | $ | — | $ | 171,614 | ||||||||
Intersegment revenue | — | 2,544 | (2,544 | ) | — | |||||||||||
Income (loss) from operations | 129 | (6,236 | ) | — | (6,107 | ) | ||||||||||
Description_of_Business_and_Ba2
Description of Business and Basis of Presentation - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Basis Of Presentation And Organization [Line Items] | ' |
Acquisition date of ID Analytics Inc | 14-Mar-12 |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (Lemon Inc, USD $) | 0 Months Ended | |
In Thousands, unless otherwise specified | Dec. 11, 2013 | Jun. 30, 2014 |
Business Acquisition [Line Items] | ' | ' |
Cash paid for acquisition | $42,369 | ' |
Purchase price net of cash acquired | 3,315 | ' |
Reduction of deferred tax assets, net - noncurrent by increasing goodwill | ' | 3,222 |
Federal | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Net operating loss carryforwards | ' | 7,894 |
State | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Net operating loss carryforwards | ' | $7,991 |
Schedule_of_Purchase_Price_of_
Schedule of Purchase Price of Acquired Assets and Liabilities Based on Estimated Fair Values (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Business Acquisition [Line Items] | ' | ' |
Goodwill | $159,342 | $159,342 |
Lemon Inc | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Net assets assumed | 3,184 | ' |
Deferred tax assets, net - noncurrent | 8,706 | ' |
Intangible assets acquired | 3,880 | ' |
Goodwill | 29,914 | ' |
Total purchase price consideration | $45,684 | ' |
Summary_of_Marketable_Securiti
Summary of Marketable Securities Designated as Available-for-Sale (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Marketable Securities [Line Items] | ' | ' |
Amortized Cost | $49,401 | $48,717 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | -18 | -32 |
Estimated Fair Value | 49,385 | 48,688 |
Corporate bonds | ' | ' |
Schedule Of Marketable Securities [Line Items] | ' | ' |
Amortized Cost | 35,914 | 37,399 |
Gross Unrealized Gains | ' | 1 |
Gross Unrealized Losses | -17 | -29 |
Estimated Fair Value | 35,897 | 37,371 |
Municipal bonds | ' | ' |
Schedule Of Marketable Securities [Line Items] | ' | ' |
Amortized Cost | 12,989 | 10,820 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | -1 | -3 |
Estimated Fair Value | 12,990 | 10,819 |
Certificates of deposit | ' | ' |
Schedule Of Marketable Securities [Line Items] | ' | ' |
Amortized Cost | 498 | 498 |
Estimated Fair Value | $498 | $498 |
Summary_of_Amortized_Cost_and_
Summary of Amortized Cost and Estimated Fair Value of Marketable Securities by Maturity (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Marketable Securities [Line Items] | ' | ' |
Amortized Cost | $49,401 | $48,717 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | -18 | -32 |
Estimated Fair Value | 49,385 | 48,688 |
Due in one year or less | ' | ' |
Schedule Of Marketable Securities [Line Items] | ' | ' |
Amortized Cost | 48,132 | 47,398 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | -18 | -32 |
Estimated Fair Value | 48,116 | 47,369 |
Due after one year | ' | ' |
Schedule Of Marketable Securities [Line Items] | ' | ' |
Amortized Cost | 1,269 | 1,319 |
Estimated Fair Value | $1,269 | $1,319 |
Summary_of_Components_of_Share
Summary of Components of Share-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation expense | $7,046 | $3,537 | $12,521 | $6,261 |
Cost of services | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation expense | 489 | 206 | 832 | 412 |
Sales and marketing | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation expense | 1,309 | 386 | 2,203 | 719 |
Technology and development | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation expense | 1,942 | 824 | 3,915 | 1,339 |
General and administrative | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation expense | $3,306 | $2,121 | $5,571 | $3,791 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Class Of Stock [Line Items] | ' |
Unrecognized share based compensation | $81,947 |
Share based compensation recognizing period | '3 years 2 months 12 days |
Warrants_Purchase_Detail
Warrants Purchase (Detail) (Common Stock) | 6 Months Ended |
Jun. 30, 2014 | |
Expiration Date October 3, 2014 | ' |
Class Of Warrant Or Right [Line Items] | ' |
Expiration Date | 3-Oct-14 |
Number | 2,334,044 |
Exercise Price | 0.7 |
Expiration Date December 19, 2014 | ' |
Class Of Warrant Or Right [Line Items] | ' |
Expiration Date | 19-Dec-14 |
Number | 166,666 |
Exercise Price | 4.5 |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Total assets measured at fair value | $154,780 | $94,709 | ||
Commercial paper | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Assets measured at fair value | 45,156 | [1] | 45,110 | [1] |
Money market funds | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Assets measured at fair value | 60,054 | [1] | 911 | [1] |
Fair Value, Inputs, Level 1 | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Total assets measured at fair value | 105,210 | 911 | ||
Fair Value, Inputs, Level 1 | Commercial paper | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Assets measured at fair value | 45,156 | [1] | ' | |
Fair Value, Inputs, Level 1 | Money market funds | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Assets measured at fair value | 60,054 | [1] | 911 | [1] |
Fair Value, Inputs, Level 2 | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Total assets measured at fair value | 49,570 | 93,798 | ||
Fair Value, Inputs, Level 2 | Commercial paper | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Assets measured at fair value | ' | 45,110 | [1] | |
Corporate bonds | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Assets measured at fair value | 35,897 | [2] | 37,371 | [2] |
Corporate bonds | Fair Value, Inputs, Level 2 | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Assets measured at fair value | 35,897 | [2] | 37,371 | [2] |
Municipal bonds | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Assets measured at fair value | 13,175 | [3] | 10,819 | [2] |
Municipal bonds | Fair Value, Inputs, Level 2 | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Assets measured at fair value | 13,175 | [3] | 10,819 | [2] |
Certificates of deposit | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Assets measured at fair value | 498 | [2] | 498 | [2] |
Certificates of deposit | Fair Value, Inputs, Level 2 | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Assets measured at fair value | $498 | [2] | $498 | [2] |
[1] | Classified in cash and cash equivalents | |||
[2] | Classified in marketable securities | |||
[3] | Includes a short-term, highly rated, highly liquid investment that is included in cash and cash equivalents as the original maturity date was less than three months at the time of purchase. Municipal bond investments with original maturity dates greater than three months at the time of purchase are classified in marketable securities. |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net Income Loss Per Common Share [Line Items] | ' | ' | ' | ' |
Net loss | ($2,800) | ($2,065) | ($7,969) | ($6,182) |
Denominator (basic and diluted): | ' | ' | ' | ' |
Weighted average common shares outstanding | 92,471,009 | 87,532,810 | 92,188,591 | 87,088,642 |
Net loss per share: | ' | ' | ' | ' |
Basic | ($0.03) | ($0.02) | ($0.09) | ($0.07) |
Diluted | ($0.03) | ($0.02) | ($0.09) | ($0.07) |
Number_of_Outstanding_Stock_Op
Number of Outstanding Stock Options, Restricted Stock Units and Awards, Common Equivalent Shares from Stock Warrants, and Shares Purchased Under our Espp Excluded from Computation of Diluted Net Loss Per Share (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Stock options outstanding | 3,021,735 | 5,016,362 | 3,714,028 | 5,276,932 |
Restricted stock units and awards | 116,119 | 62,299 | 218,577 | 64,436 |
Common equivalent shares from stock warrants | 2,326,302 | 2,262,543 | 2,356,681 | 2,292,039 |
Shares purchased under ESPP | 7,063 | ' | 29,190 | ' |
Antidilutive securities excluded from computation of earnings per share, amount, total | 5,471,219 | 7,341,204 | 6,318,476 | 7,633,407 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 2 | ' |
Amortization of acquired intangible assets | $2,231 | $1,966 | $4,462 | $3,932 |
Consumer | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Amortization of acquired intangible assets | 265 | 0 | 530 | 0 |
Enterprise | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Amortization of acquired intangible assets | $1,966 | $1,966 | $3,932 | $3,932 |
Financial_Information_of_Segme
Financial Information of Segments (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Revenue: | ' | ' | ' | ' | ' |
External customers | $115,713 | $89,520 | $223,299 | $171,614 | ' |
Intersegment revenue | ' | ' | ' | ' | ' |
Income (loss) from operations | -4,681 | -2,191 | -13,360 | -6,107 | ' |
Goodwill | 159,342 | ' | 159,342 | ' | 159,342 |
Total assets | 513,933 | ' | 513,933 | ' | 463,250 |
Eliminations | ' | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' | ' |
External customers | ' | ' | ' | ' | ' |
Intersegment revenue | -1,635 | -1,307 | -3,149 | -2,544 | ' |
Income (loss) from operations | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' |
Total assets | -562 | ' | -562 | ' | -481 |
Consumer | Operating Segment | ' | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' | ' |
External customers | 109,338 | 82,574 | 210,333 | 157,667 | ' |
Intersegment revenue | ' | ' | ' | ' | ' |
Income (loss) from operations | -278 | 762 | -4,801 | 129 | ' |
Goodwill | 99,805 | ' | 99,805 | ' | 99,805 |
Total assets | 405,617 | ' | 405,617 | ' | 349,394 |
Enterprise | Operating Segment | ' | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' | ' |
External customers | 6,375 | 6,946 | 12,966 | 13,947 | ' |
Intersegment revenue | 1,635 | 1,307 | 3,149 | 2,544 | ' |
Income (loss) from operations | -4,403 | -2,953 | -8,559 | -6,236 | ' |
Goodwill | 59,537 | ' | 59,537 | ' | 59,537 |
Total assets | $108,878 | ' | $108,878 | ' | $114,337 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Lemon Inc | Lemon Inc | Lemon Inc | |||||
Federal | State | ||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit | ($1,919) | ($179) | ($5,467) | ($29) | ' | ' | ' |
Minimum ownership percentage | ' | ' | ' | ' | 5.00% | ' | ' |
Net operating loss carryforwards | ' | ' | ' | ' | ' | $7,894 | $7,991 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Loss Contingencies [Line Items] | ' |
Value of the service guarantee | $1,000,000 |
Loss contingency signing bonus paid | $15,000 |
United States District Court | ' |
Loss Contingencies [Line Items] | ' |
Complaint filed date | 'March 20, 2014 |
Name of defendant | 'LifeLock, Inc, Kim Jones, and Cristy Schaan |
Name of plaintiff | 'Mr. Michael D. Peters |
Independent Contractor Misclassification | Pending Litigation | ' |
Loss Contingencies [Line Items] | ' |
Complaint filed date | 'September 2012 |
Name of defendant | 'LifeLock, Inc and Todd Davis |
Name of plaintiff | 'Ms. Denise Richardson |
Independent Contractor Misclassification | Dismissed Litigation | ' |
Loss Contingencies [Line Items] | ' |
Date of dismissal | 11-Jun-14 |
Request for information | 'Ms. Richardson filed a Notice of Voluntary Dismissal by which she voluntarily dismissed her ERISA claims against us, as well as her only claim against Mr. Davis. With respect to the remaining claims that are the subject of our motion to dismiss |