Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LOCK | |
Entity Registrant Name | LifeLock, Inc. | |
Entity Central Index Key | 1383871 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 94,370,253 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $159,885 | $146,569 |
Marketable securities | 133,467 | 127,305 |
Trade and other receivables, net | 9,502 | 10,220 |
Deferred tax assets, net | 27,269 | 21,243 |
Prepaid expenses and other current assets | 12,159 | 7,841 |
Total current assets | 342,282 | 313,178 |
Property and equipment, net | 23,359 | 24,204 |
Goodwill | 159,342 | 159,342 |
Intangible assets, net | 36,231 | 38,315 |
Deferred tax assets, net – non-current | 22,494 | 22,494 |
Other non-current assets | 5,827 | 5,783 |
Total assets | 589,535 | 563,316 |
Current liabilities: | ||
Accounts payable | 13,556 | 11,543 |
Accrued expenses and other liabilities | 70,764 | 67,025 |
Deferred revenue | 167,983 | 145,206 |
Total current liabilities | 252,303 | 223,774 |
Other non-current liabilities | 6,712 | 6,706 |
Total liabilities | 259,015 | 230,480 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 300,000,000 authorized at March 31, 2015 and December 31, 2014; 94,188,225 and 93,944,742 shares issued and 94,143,451 and 93,899,968 outstanding at March 31, 2015 and December 31, 2014, respectively | 94 | 94 |
Preferred stock, $0.001 par value, 10,000,000 shares authorized and no shares issued and outstanding at March 31, 2015 and December 31, 2014 | 0 | 0 |
Additional paid-in capital | 502,712 | 495,912 |
Accumulated other comprehensive loss | -75 | -116 |
Accumulated deficit | -172,211 | -163,054 |
Total stockholders’ equity | 330,520 | 332,836 |
Total liabilities and stockholders’ equity | $589,535 | $563,316 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in usd per share) | $0.00 | $0.00 |
Common stock shares authorized | 300,000,000 | 300,000,000 |
Common stock shares issued | 94,188,225 | 93,944,742 |
Common stock shares outstanding | 94,143,451 | 93,899,968 |
Preferred stock par value (in usd per share) | $0.00 | $0.00 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue: | ||
Consumer revenue | $128,201 | $100,995 |
Enterprise revenue | 6,207 | 6,591 |
Total revenue | 134,408 | 107,586 |
Cost of services | 34,556 | 29,957 |
Gross profit | 99,852 | 77,629 |
Costs and expenses: | ||
Sales and marketing | 77,079 | 56,539 |
Technology and development | 16,866 | 12,729 |
General and administrative | 18,955 | 13,335 |
Amortization of acquired intangible assets | 2,084 | 2,231 |
Total costs and expenses | 114,984 | 84,834 |
Loss from operations | -15,132 | -7,205 |
Other income (expense): | ||
Interest expense | -89 | -87 |
Interest income | 117 | 60 |
Other | -80 | -11 |
Total other expense | -52 | -38 |
Loss before provision for income taxes | -15,184 | -7,243 |
Income tax benefit | -6,026 | -2,948 |
Net loss | ($9,158) | ($4,295) |
Net loss per share | ||
Basic and diluted | ($0.10) | ($0.05) |
Weighted-average common shares outstanding used in computing net loss per share: | ||
Basic and diluted | 94,033,035 | 91,903,036 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net loss | ($9,158) | ($4,295) |
Other comprehensive income, net of tax | ||
Unrealized gain on marketable securities | 42 | 8 |
Comprehensive loss | ($9,116) | ($4,287) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net loss | ($9,158) | ($4,295) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 4,295 | 3,861 |
Share-based compensation | 5,370 | 4,001 |
Provision for doubtful accounts | 52 | 272 |
Amortization of premiums on marketable securities | 670 | 366 |
Deferred income tax benefit | -6,026 | -2,951 |
Other | 82 | 7 |
Change in operating assets and liabilities: | ||
Trade and other receivables | -295 | -305 |
Prepaid expenses and other current assets | -4,319 | -2,816 |
Other non-current assets | -44 | 251 |
Accounts payable | 2,563 | 2,776 |
Accrued expenses and other liabilities | 4,556 | -835 |
Deferred revenue | 22,777 | 17,213 |
Other non-current liabilities | 7 | 771 |
Net cash provided by operating activities | 20,530 | 18,316 |
Investing activities | ||
Acquisition of property and equipment | -2,816 | -3,927 |
Purchases of marketable securities | -39,379 | -5,797 |
Sale and maturities of marketable securities | 33,438 | 6,921 |
Net cash used in investing activities | -8,757 | -2,803 |
Financing activities | ||
Proceeds from stock-based compensation plans | 1,773 | 4,432 |
Payments for employee tax withholdings related to restricted stock units and awards | -230 | -154 |
Net cash provided by financing activities | 1,543 | 4,278 |
Net increase in cash and cash equivalents | 13,316 | 19,791 |
Cash and cash equivalents at beginning of period | 146,569 | 123,911 |
Cash and cash equivalents at end of period | $159,885 | $143,702 |
Corporation_Information
Corporation Information | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Corporation Information | Corporation Information |
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 consumer risk management services 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, LLC (formerly, ID Analytics, Inc.) and its wholly owned subsidiary SageStream, LLC (formerly IDA Inc.), each of which is incorporated in Delaware. On December 11, 2013, we acquired Lemon, LLC (formerly, Lemon, Inc.), or Lemon, which is incorporated in Delaware. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), and applicable Securities and Exchange Commission, or SEC, rules and regulations 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, 2014, or 2014 Form 10-K. | |
The condensed consolidated balance sheet as of December 31, 2014 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 anticipated results of operations for the entire year ending December 31, 2015 or any future period. | |
Basis of Consolidation | |
The condensed consolidated financial statements include our accounts and those of our wholly and indirectly owned subsidiaries. We eliminate all intercompany balances and transactions, including intercompany profits, 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 consolidated financial statements and accompanying notes. We continually evaluate our estimates, including those related to the allocation of the purchase price associated with acquisitions; the carrying value of long-lived assets; the amortization period of long-lived assets; the carrying value, capitalization, and amortization of software and website development costs; the carrying value of goodwill and other intangible assets; the amortization period of intangible assets; the provision for income taxes and related deferred tax accounts, and realizablity of deferred tax assets, certain accrued expenses; incurred but not reported medical claims, contingencies, litigation, and related legal accruals; and the value attributed to employee stock options and other stock-based awards. We base our estimates on historical experience, current business factors, and various other assumptions that we believe are necessary to consider to form a basis for making judgments. Actual results could be materially different from these estimates. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our 2014 Form 10-K. | |
Recently Issued Accounting Standards | |
In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, 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. On April 1, 2015, the FASB proposed a one-year deferral of the effective date. Under the proposal, the standard would be effective for public entities for annual reporting periods beginning after December 15, 2017 and interim periods therein. The guidance permits the use of either the retrospective or cumulative effect transition method. We are currently in the process of evaluating the impact of the adoption of this ASU on our consolidated financial statements and have not yet selected a transition method. | |
In February 2015, the FASB issued ASU 2015-02, Consolidation, which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain legal entities. The amendments in the standard affect limited partnerships and similar legal entities, evaluating fees paid to a decision maker or a service provider as a variable interest, the effect of fee arrangements on the primary beneficiary determination, the effect of related parties on the primary beneficiary determination, and certain investment funds. This guidance is effective for public business entities for fiscal years, and for interim fiscal periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of this ASU to have a significant impact on our consolidated financial statements. | |
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. The guidance requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset, with amortization of the costs continuing to be reported as interest expense. This guidance is effective for annual reporting periods beginning after December 15, 2016, and will be applied retrospectively to each prior period presented. Early adoption is permitted. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements as this ASU would only apply in the event we incurred debt. |
Marketable_Securities
Marketable Securities | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||
Marketable Securities | Marketable Securities | |||||||||||||||
The following is a summary of marketable securities designated as available-for-sale as of March 31, 2015 and December 31, 2014: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
31-Mar-15 | ||||||||||||||||
Corporate bonds | $ | 112,187 | $ | 6 | $ | (87 | ) | $ | 112,106 | |||||||
Municipal bonds | 15,073 | 1 | (5 | ) | 15,069 | |||||||||||
Commercial paper | 5,794 | — | — | 5,794 | ||||||||||||
Certificates of deposit | 498 | — | — | 498 | ||||||||||||
Total marketable securities | $ | 133,552 | $ | 7 | $ | (92 | ) | $ | 133,467 | |||||||
31-Dec-14 | ||||||||||||||||
Corporate bonds | $ | 99,592 | $ | 1 | $ | (119 | ) | $ | 99,474 | |||||||
Municipal bonds | 18,146 | 1 | (10 | ) | 18,137 | |||||||||||
Commercial paper | 9,196 | — | — | 9,196 | ||||||||||||
Certificates of deposit | 498 | — | — | 498 | ||||||||||||
Total marketable securities | $ | 127,432 | $ | 2 | $ | (129 | ) | $ | 127,305 | |||||||
We classify all marketable securities as current regardless of contractual maturity dates because we consider such investments to represent cash available for current operations. | ||||||||||||||||
As of March 31, 2015 and December 31, 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 March 31, 2015 and December 31, 2014, by maturity: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
31-Mar-15 | ||||||||||||||||
Due in one year or less | $ | 133,099 | $ | 7 | $ | (92 | ) | $ | 133,014 | |||||||
Due after one year | 453 | — | — | 453 | ||||||||||||
Total marketable securities | $ | 133,552 | $ | 7 | $ | (92 | ) | $ | 133,467 | |||||||
31-Dec-14 | ||||||||||||||||
Due in one year or less | $ | 127,029 | $ | 2 | $ | (129 | ) | $ | 126,902 | |||||||
Due after one year | 403 | — | — | 403 | ||||||||||||
Total marketable securities | $ | 127,432 | $ | 2 | $ | (129 | ) | $ | 127,305 | |||||||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Equity [Abstract] | ||||||||
Stockholders' Equity | 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, or ESPP. The following table summarizes the components of share-based compensation expense included in our condensed consolidated statements of operations: | ||||||||
For the Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Cost of services | $ | 372 | $ | 232 | ||||
Sales and marketing | 932 | 586 | ||||||
Technology and development | 1,709 | 1,555 | ||||||
General and administrative | 2,357 | 1,628 | ||||||
Total share-based compensation | $ | 5,370 | $ | 4,001 | ||||
Unrecognized share-based compensation expenses totaled $70,310 as of March 31, 2015, which we expect to recognize over a weighted-average time period of 3.2 years. | ||||||||
Stock Warrants | ||||||||
As of March 31, 2015, we had the following warrants to purchase common stock outstanding: | ||||||||
Expiration Date | Shares | Exercise | ||||||
Price | ||||||||
October 3, 2016 | 2,334,044 | 0.7 | ||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
As of March 31, 2015 and December 31, 2014, the fair value of our financial assets was as follows: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
March 31, 2015 | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds (1) | $ | 5,775 | $ | — | $ | — | $ | 5,775 | ||||||||
Corporate bonds (2) | — | 112,106 | — | 112,106 | ||||||||||||
Municipal bonds (3) | — | 15,246 | — | 15,246 | ||||||||||||
Commercial paper (4) | — | 51,019 | — | 51,019 | ||||||||||||
Certificates of deposit (2) | — | 498 | — | 498 | ||||||||||||
Total assets measured at fair value | $ | 5,775 | $ | 178,869 | $ | — | $ | 184,644 | ||||||||
December 31, 2014 | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds (1) | $ | 11,903 | $ | — | $ | — | $ | 11,903 | ||||||||
Corporate bonds (2) | — | 99,474 | — | 99,474 | ||||||||||||
Municipal bonds (2) | — | 18,137 | — | 18,137 | ||||||||||||
Commercial paper (5) | — | 54,399 | — | 54,399 | ||||||||||||
Certificates of deposit (2) | — | 498 | — | 498 | ||||||||||||
Total assets measured at fair value | $ | 11,903 | $ | 172,508 | $ | — | $ | 184,411 | ||||||||
(1) | Classified in cash and cash equivalents | |||||||||||||||
(2) | Classified in marketable securities | |||||||||||||||
(3) | Includes a municipal bond with an original maturity date of three months or less at time purchase of $176 classified in cash and cash equivalents. | |||||||||||||||
(4) | Includes commercial paper with maturities of three months or less at time of purchase of $45,225 classified in cash and cash equivalents and commercial paper with maturities of greater than three months of $5,794 classified in marketable securities. | |||||||||||||||
(5) | Includes commercial paper with maturities of three months or less at time of purchase of $45,203 classified in cash and cash equivalents and commercial paper with maturities of greater than three months of $9,196 classified in marketable securities. |
Net_Loss_Per_Share
Net Loss Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Loss Per Share | Net Loss Per Share | |||||||
We compute basic net loss per share by dividing net loss by the weighted-average number of common shares outstanding for the period. We compute diluted net loss per share giving effect to all potential dilutive common stock, including awards granted under our equity compensation plans and warrants to acquire common stock. | ||||||||
The following table sets forth the computation of basic and diluted net loss: | ||||||||
For the Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Net loss | $ | (9,158 | ) | $ | (4,295 | ) | ||
Denominator (basic and diluted): | ||||||||
Weighted average common shares outstanding | 94,033,035 | 91,903,036 | ||||||
Net loss per share: | ||||||||
Basic and diluted | $ | (0.10 | ) | $ | (0.05 | ) | ||
For the three-month periods ended March 31, 2015 and 2014, potentially dilutive securities were not included in the calculation of diluted net loss per share, as their impact would be anti-dilutive. The following weighted-average number of outstanding employee stock options, restricted stock units and restricted stock awards, warrants to purchase common stock, and shares purchased under our ESPP were excluded from the computation of diluted net loss per share: | ||||||||
For the Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Stock options outstanding | 2,898,461 | 5,131,673 | ||||||
Restricted stock units and restricted stock awards | 145,676 | 217,010 | ||||||
Common equivalent shares from stock warrants | 2,219,671 | 2,378,641 | ||||||
Shares purchased under ESPP | — | 25,105 | ||||||
5,263,808 | 7,752,429 | |||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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 tax benefit from operations for the three-month periods ended March 31, 2015 and 2014 was $6,026 and $2,948, 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. |
Segment_Reporting
Segment Reporting | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment Reporting | Segment Reporting | |||||||||||||||
We operate our business and our Chief Operating Decision Maker, or CODM, reviews and assesses 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 consumers on an annual or monthly subscription basis. In our enterprise segment, we offer consumer risk management services to our enterprise customers. | ||||||||||||||||
Financial information about our segments for the three-month periods ended March 31, 2015 and as of March 31, 2015 was as follows: | ||||||||||||||||
Consumer | Enterprise | Eliminations | Total | |||||||||||||
Revenue | ||||||||||||||||
External customers | $ | 128,201 | $ | 6,207 | $ | — | $ | 134,408 | ||||||||
Intersegment revenue | — | 2,056 | (2,056 | ) | — | |||||||||||
Loss from operations | (10,755 | ) | (4,377 | ) | — | (15,132 | ) | |||||||||
Goodwill | 99,805 | 59,537 | — | 159,342 | ||||||||||||
Total assets | 485,016 | 105,219 | (700 | ) | 589,535 | |||||||||||
Financial information about our segments for the three-month periods ended March 31, 2014 and as of December 31, 2014 was as follows: | ||||||||||||||||
Consumer | Enterprise | Eliminations | Total | |||||||||||||
Revenue | ||||||||||||||||
External customers | $ | 100,995 | $ | 6,591 | $ | — | $ | 107,586 | ||||||||
Intersegment revenue | — | 1,514 | (1,514 | ) | — | |||||||||||
Loss from operations | (3,268 | ) | (3,937 | ) | — | (7,205 | ) | |||||||||
Goodwill | 99,805 | 59,537 | — | 159,342 | ||||||||||||
Total assets | 455,035 | 108,905 | (624 | ) | 563,316 | |||||||||||
We allocate 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. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 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-month periods ended March 31, 2015 and 2014 were not material. | |
On March 13, 2014, we received a request from 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 October 29, 2014, we completed our responses to the FTC’s March 13, 2014 request for information. On January 5, 2015, we completed our responses to the FTC’s subsequent requests for clarification regarding certain information that we previously submitted. We have engaged in ongoing discussions with the FTC Staff regarding the FTC's inquiry into our compliance with the FTC Order. On February 4, 2015, we made a $20,000 settlement offer to the FTC Staff and we remain in ongoing discussions with the FTC Staff regarding a possible settlement of this inquiry. As a result of those discussions, we have accrued $20,000 as of December 31, 2014 for a possible settlement with the FTC. The ultimate resolution of the matter could result in a loss of up to $100,000. | |
On January 19, 2015, plaintiffs Napoleon Ebarle and Jeanne Stamm filed a nationwide putative consumer class action against us in the United States District Court for the Northern District of California. The plaintiffs allege that we have engaged in deceptive marketing and sales practices in connection with our membership plans in violation of the Arizona Consumer Fraud Act, and are seeking declaratory judgment under the Federal Declaratory Judgment Act. The plaintiffs also seek certification of a nationwide class of consumers who are or were subscribers of our identity theft protection services since January 19, 2014, compensatory damages, and attorneys’ fees and costs. We were served with the complaint on January 22, 2015. On March 6, we filed a motion to dismiss. Plaintiffs filed an amended complaint on March 27, 2015. Our response to that amended complaint is due on May 12, 2015. | |
On January 29, 2015, plaintiff Etan Goldman filed a California putative consumer class action complaint against us in Santa Clara Superior Court in San Jose, California. The complaint alleges that we violated California’s Automatic Renewal Law and Unfair Competition Law by failing to provide required disclosures concerning our auto renewal terms and cancellation policies. The complaint also seeks certification of a class consisting of all persons in California who have purchased subscriptions to identity theft protection services from us since December 1, 2010, injunctive relief, compensatory damages, restitution, and attorneys’ fees and costs. On April 15, 2015, the parties participated in a mediation, and signed a Confidential Memorandum of Agreement for a Settlement Agreement. The motion for preliminary approval of the class action settlement is currently scheduled to be filed on May 22, 2015. | |
On February 2, 2015, plaintiff, Thomas A. Trax, filed a class action complaint against us in the United States District Court for the Southern District of California. The complaint asserted that we violated California’s Automatic Renewal Law and Unfair Competition Law by failing to provide required disclosures concerning our auto renewal terms and cancellation policies. The complaint seeks certification of a class consisting of all persons in California who have purchased products and/or services from us as part of an automatic renewal plan or continuous service offer since February 2, 2011, injunctive relief, compensatory damages, restitution, a constructive trust and/or disgorgement, and attorneys’ fees and costs. We have not yet been served with the complaint. On April 15, 2015, Mr. Trax agreed to dismiss the lawsuit without prejudice and we expect that to occur shortly. | |
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, filed a class action complaint in United States District Court for the District of Arizona alleging violations of Sections 10(b) and 20(a) of the Exchange Act against us, Todd Davis, and Chris Power. We refer to this complaint as the Bien Complaint. On March 10, 2014, Joseph F. Scesny also filed a class action complaint in the same court against the same parties that made substantively similar allegations and requested substantially similar relief as the Bien Complaint. We refer to this complaint as the Scesny Complaint. On June 16, 2014, the court consolidated the Bien Complaint and Scesny Complaint into a single action captioned In re LifeLock, Inc. Securities Litigation. The court also appointed a lead plaintiff and lead counsel. On August 15, 2014, the lead plaintiff filed the Consolidated Amended Class Action Complaint, or the Consolidated Amended Complaint, against us, Mr. Davis, Mr. Power, and Hilary Schneider seeking to represent a class of persons who acquired our securities from February 26, 2013 to May 16, 2014, inclusive, or the Class Period. The Consolidated Amended Complaint alleged that we, along with Ms. Schneider and Messrs. Davis and Power, violated Sections 10(b) and 20(a) of the Exchange Act by making materially false or misleading statements, or failing to disclose material facts regarding certain of our business, operational, and compliance policies, including with regard to certain of our services, our data security program, and our and Mr. Davis’ compliance with the FTC Order. The Consolidated Amended Complaint alleged that, as a result, certain public statements made by Ms. Schneider and Messrs. Davis and Power during the Class Period, and certain of our financial statements issued during the Class Period, were false and misleading. The Consolidated Amended Complaint sought certification as a class action, compensatory damages, and attorneys’ fees and costs. On September 15, 2014, we, along with Ms. Schneider and Messrs. Davis and Power, filed a motion to dismiss the Consolidated Amended Complaint. A hearing on our motion to dismiss was held on December 1, 2014. On December 17, 2014, the court dismissed the Consolidated Amended Complaint and gave the lead plaintiff 21 days to seek leave to amend. The lead plaintiff filed his Second Consolidated Amended Complaint, on January 16, 2015. The Second Consolidated Amended Complaint no longer names Ms. Schneider as a defendant, but otherwise makes substantively similar allegations as the Consolidated Amended Complaint. It alleges that we, along with Messrs. Davis and Power, violated Sections 10(b) and 20(a) of the Exchange Act by making materially false or misleading statements, or failing to disclose material facts regarding certain of our business, operational, and compliance policies, including with regard to certain of our services, our data security program, and our and Mr. Davis’ compliance with the FTC Order. The Second Consolidated Amended Complaint alleges that, as a result, certain public statements made by Messrs. Davis and Power during the Class Period, and certain of our financial statements issued during the Class Period, were false and misleading. The Second Consolidated Amended Complaint seeks certification as a class action, compensatory damages, and attorney’s fees and costs. We, along with Messrs. Davis and Power, filed a motion to dismiss the Second Consolidated Amended Complaint on January 30, 2015. A hearing on our motion to dismiss was held on March 16, 2015. We are waiting for the court to rule on our motion. | |
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 and 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 sought 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 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. The court ruled on all of the pending motions on September 19, 2014. Ms. Schaan’s motion to dismiss the defamation claim against her was granted and she was dismissed from the case. Our motion and the motion filed by Mr. Peters and LifeLock were denied. In addition, Mr. Peters dismissed his claim against Mr. Jones pursuant to a settlement. On October 3, 2014, we filed an amended answer responding to both of the claims Mr. Peters asserted against us. On January 22, 2015, the court entered a scheduling order containing certain deadlines for the case, including the completion of all discovery by October 30, 2015, the filing of any dispositive motions by December 4, 2015, and the filing of certain pre-trial submissions by March 4, 2016. A status hearing is set in the case for August 14, 2015. | |
On August 1, 2014, our subsidiaries Lemon and Lemon Argentina, S.R.L. (Lemon Argentina, and together, the Lemon Entities) filed a lawsuit in Santa Clara Superior Court in San Jose, California against Wenceslao Casares, former General Manager of Lemon, Cynthia McAdam, former General Counsel of Lemon, and Federico Murrone, Martin Apesteguia and Fabian Cuesta, each a former employee and former member of the Board of Directors of Lemon Argentina (the Argentine Executives). The complaint alleges breaches of employment-related contracts and breaches of fiduciary duty involving each named individual’s work for third-party Xapo, Inc. and/or Xapo, Ltd. during their employment by the applicable Lemon Entity. Mr. Casares and Ms. McAdam have been served. The Lemon Entities are in the process of serving the Argentine Executives through the procedures set forth in the Hague Convention. Mr. Casares and Ms. Cynthia McAdam, through their counsel, have demanded that we and Lemon defend them against the claims brought by the Lemon Entities and advance them the costs of their attorneys’ fees. We and Lemon have rejected those demands. The parties, including the Argentine Executives, engaged in mediation in August 2014 in Buenos Aires, Argentina, and again in December 2014 in San Francisco, California but were unable to settle any claims. On January 30, 2015, the Lemon entities filed a second amended complaint alleging breaches of employment-related contracts, breaches of fiduciary duties and fraud, and seeking declaratory relief against Mr. Casares, Ms. McAdam and the Argentine Executives. The parties have begun discovery and Mr. Casares and Ms. McAdam are required to respond to the second amended complaint no later than May 1, 2015. Although no counterclaims have been asserted against us or the Lemon Entities to date in connection with this matter, it is possible that they will be asserted in the future. | |
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, we believe, based upon the information available at this time, that, except as disclosed above, a material adverse outcome related to the matters is neither probable nor estimable. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards |
In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, 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. On April 1, 2015, the FASB proposed a one-year deferral of the effective date. Under the proposal, the standard would be effective for public entities for annual reporting periods beginning after December 15, 2017 and interim periods therein. The guidance permits the use of either the retrospective or cumulative effect transition method. We are currently in the process of evaluating the impact of the adoption of this ASU on our consolidated financial statements and have not yet selected a transition method. | |
In February 2015, the FASB issued ASU 2015-02, Consolidation, which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain legal entities. The amendments in the standard affect limited partnerships and similar legal entities, evaluating fees paid to a decision maker or a service provider as a variable interest, the effect of fee arrangements on the primary beneficiary determination, the effect of related parties on the primary beneficiary determination, and certain investment funds. This guidance is effective for public business entities for fiscal years, and for interim fiscal periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We do not expect the adoption of this ASU to have a significant impact on our consolidated financial statements. | |
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs in financial statements. The guidance requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset, with amortization of the costs continuing to be reported as interest expense. This guidance is effective for annual reporting periods beginning after December 15, 2016, and will be applied retrospectively to each prior period presented. Early adoption is permitted. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements as this ASU would only apply in the event we incurred debt. |
Marketable_Securities_Tables
Marketable Securities (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||
Summary of Marketable Securities Designated as Available-for-Sale | The following is a summary of marketable securities designated as available-for-sale as of March 31, 2015 and December 31, 2014: | |||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
31-Mar-15 | ||||||||||||||||
Corporate bonds | $ | 112,187 | $ | 6 | $ | (87 | ) | $ | 112,106 | |||||||
Municipal bonds | 15,073 | 1 | (5 | ) | 15,069 | |||||||||||
Commercial paper | 5,794 | — | — | 5,794 | ||||||||||||
Certificates of deposit | 498 | — | — | 498 | ||||||||||||
Total marketable securities | $ | 133,552 | $ | 7 | $ | (92 | ) | $ | 133,467 | |||||||
31-Dec-14 | ||||||||||||||||
Corporate bonds | $ | 99,592 | $ | 1 | $ | (119 | ) | $ | 99,474 | |||||||
Municipal bonds | 18,146 | 1 | (10 | ) | 18,137 | |||||||||||
Commercial paper | 9,196 | — | — | 9,196 | ||||||||||||
Certificates of deposit | 498 | — | — | 498 | ||||||||||||
Total marketable securities | $ | 127,432 | $ | 2 | $ | (129 | ) | $ | 127,305 | |||||||
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 March 31, 2015 and December 31, 2014, by maturity: | |||||||||||||||
Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
31-Mar-15 | ||||||||||||||||
Due in one year or less | $ | 133,099 | $ | 7 | $ | (92 | ) | $ | 133,014 | |||||||
Due after one year | 453 | — | — | 453 | ||||||||||||
Total marketable securities | $ | 133,552 | $ | 7 | $ | (92 | ) | $ | 133,467 | |||||||
31-Dec-14 | ||||||||||||||||
Due in one year or less | $ | 127,029 | $ | 2 | $ | (129 | ) | $ | 126,902 | |||||||
Due after one year | 403 | — | — | 403 | ||||||||||||
Total marketable securities | $ | 127,432 | $ | 2 | $ | (129 | ) | $ | 127,305 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Equity [Abstract] | ||||||||
Schedule of Share-based Compensation Components | The following table summarizes the components of share-based compensation expense included in our condensed consolidated statements of operations: | |||||||
For the Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Cost of services | $ | 372 | $ | 232 | ||||
Sales and marketing | 932 | 586 | ||||||
Technology and development | 1,709 | 1,555 | ||||||
General and administrative | 2,357 | 1,628 | ||||||
Total share-based compensation | $ | 5,370 | $ | 4,001 | ||||
Warrant Purchase | As of March 31, 2015, we had the following warrants to purchase common stock outstanding: | |||||||
Expiration Date | Shares | Exercise | ||||||
Price | ||||||||
October 3, 2016 | 2,334,044 | 0.7 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value of Financial Assets and Liabilities | As of March 31, 2015 and December 31, 2014, the fair value of our financial assets was as follows: | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
March 31, 2015 | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds (1) | $ | 5,775 | $ | — | $ | — | $ | 5,775 | ||||||||
Corporate bonds (2) | — | 112,106 | — | 112,106 | ||||||||||||
Municipal bonds (3) | — | 15,246 | — | 15,246 | ||||||||||||
Commercial paper (4) | — | 51,019 | — | 51,019 | ||||||||||||
Certificates of deposit (2) | — | 498 | — | 498 | ||||||||||||
Total assets measured at fair value | $ | 5,775 | $ | 178,869 | $ | — | $ | 184,644 | ||||||||
December 31, 2014 | ||||||||||||||||
Assets: | ||||||||||||||||
Money market funds (1) | $ | 11,903 | $ | — | $ | — | $ | 11,903 | ||||||||
Corporate bonds (2) | — | 99,474 | — | 99,474 | ||||||||||||
Municipal bonds (2) | — | 18,137 | — | 18,137 | ||||||||||||
Commercial paper (5) | — | 54,399 | — | 54,399 | ||||||||||||
Certificates of deposit (2) | — | 498 | — | 498 | ||||||||||||
Total assets measured at fair value | $ | 11,903 | $ | 172,508 | $ | — | $ | 184,411 | ||||||||
(1) | Classified in cash and cash equivalents | |||||||||||||||
(2) | Classified in marketable securities | |||||||||||||||
(3) | Includes a municipal bond with an original maturity date of three months or less at time purchase of $176 classified in cash and cash equivalents. | |||||||||||||||
(4) | Includes commercial paper with maturities of three months or less at time of purchase of $45,225 classified in cash and cash equivalents and commercial paper with maturities of greater than three months of $5,794 classified in marketable securities. | |||||||||||||||
(5) | Includes commercial paper with maturities of three months or less at time of purchase of $45,203 classified in cash and cash equivalents and commercial paper with maturities of greater than three months of $9,196 classified in marketable securities. |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Basic and Diluted Net Income (Loss) per Share Attributable to Common Stockholders | The following table sets forth the computation of basic and diluted net loss: | |||||||
For the Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Net loss | $ | (9,158 | ) | $ | (4,295 | ) | ||
Denominator (basic and diluted): | ||||||||
Weighted average common shares outstanding | 94,033,035 | 91,903,036 | ||||||
Net loss per share: | ||||||||
Basic and diluted | $ | (0.10 | ) | $ | (0.05 | ) | ||
Stock Options, Warrants to Purchase Common and Preferred Stock and Convertible Redeemable Preferred Stock Excluded from Computation of Diluted Net Income (Loss) Per Share | The following weighted-average number of outstanding employee stock options, restricted stock units and restricted stock awards, warrants to purchase common stock, and shares purchased under our ESPP were excluded from the computation of diluted net loss per share: | |||||||
For the Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Stock options outstanding | 2,898,461 | 5,131,673 | ||||||
Restricted stock units and restricted stock awards | 145,676 | 217,010 | ||||||
Common equivalent shares from stock warrants | 2,219,671 | 2,378,641 | ||||||
Shares purchased under ESPP | — | 25,105 | ||||||
5,263,808 | 7,752,429 | |||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Financial Information of Segments | Financial information about our segments for the three-month periods ended March 31, 2015 and as of March 31, 2015 was as follows: | |||||||||||||||
Consumer | Enterprise | Eliminations | Total | |||||||||||||
Revenue | ||||||||||||||||
External customers | $ | 128,201 | $ | 6,207 | $ | — | $ | 134,408 | ||||||||
Intersegment revenue | — | 2,056 | (2,056 | ) | — | |||||||||||
Loss from operations | (10,755 | ) | (4,377 | ) | — | (15,132 | ) | |||||||||
Goodwill | 99,805 | 59,537 | — | 159,342 | ||||||||||||
Total assets | 485,016 | 105,219 | (700 | ) | 589,535 | |||||||||||
Financial information about our segments for the three-month periods ended March 31, 2014 and as of December 31, 2014 was as follows: | ||||||||||||||||
Consumer | Enterprise | Eliminations | Total | |||||||||||||
Revenue | ||||||||||||||||
External customers | $ | 100,995 | $ | 6,591 | $ | — | $ | 107,586 | ||||||||
Intersegment revenue | — | 1,514 | (1,514 | ) | — | |||||||||||
Loss from operations | (3,268 | ) | (3,937 | ) | — | (7,205 | ) | |||||||||
Goodwill | 99,805 | 59,537 | — | 159,342 | ||||||||||||
Total assets | 455,035 | 108,905 | (624 | ) | 563,316 | |||||||||||
Corporation_Information_Additi
Corporation Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Acquisition date of ID Analytics Inc. | 14-Mar-12 |
Marketable_Securities_Summary_
Marketable Securities - Summary of Marketable Securities Designated as Available-for-Sale (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | $133,552 | $127,432 |
Gross Unrealized Gains | 7 | 2 |
Gross Unrealized Losses | -92 | -129 |
Estimated Fair Value | 133,467 | 127,305 |
Corporate bonds | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 112,187 | 99,592 |
Gross Unrealized Gains | 6 | 1 |
Gross Unrealized Losses | -87 | -119 |
Estimated Fair Value | 112,106 | 99,474 |
Municipal bonds | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 15,073 | 18,146 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | -5 | -10 |
Estimated Fair Value | 15,069 | 18,137 |
Commercial paper | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 5,794 | 9,196 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 5,794 | 9,196 |
Certificates of deposit | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 498 | 498 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $498 | $498 |
Marketable_Securities_Summary_1
Marketable Securities - Summary of Amortized Cost and Estimated Fair Value of Marketable Securities by Maturity (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | $133,552 | $127,432 |
Gross Unrealized Gains | 7 | 2 |
Gross Unrealized Losses | -92 | -129 |
Estimated Fair Value | 133,467 | 127,305 |
Due in one year or less | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 133,099 | 127,029 |
Gross Unrealized Gains | 7 | 2 |
Gross Unrealized Losses | -92 | -129 |
Estimated Fair Value | 133,014 | 126,902 |
Due after one year | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 453 | 403 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $453 | $403 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Equity [Abstract] | |
Unrecognized share-based compensation expense | $70,310 |
Unrecognized share-based compensation expense, period for recognition | 3 years 2 months 1 day |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Components of Share-Based Compensation Expense (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $5,370 | $4,001 |
Cost of Services | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | 372 | 232 |
Sales and Marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | 932 | 586 |
Technology and Development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | 1,709 | 1,555 |
General and Administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation expense | $2,357 | $1,628 |
Stockholders_Equity_Summary_of1
Stockholders' Equity - Summary of Warrants (Details) (Warrant One, Common Stock, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Warrant One | Common Stock | |
Class Of Stock [Line Items] | |
Warrants expiration date | 3-Oct-16 |
Warrants outstanding | 2,334,044 |
Exercise price of warrants (in usd per share) | $0.70 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Total assets measured at fair value | $184,644 | $184,411 | ||||
Cash and cash equivalents | 159,885 | 146,569 | 143,702 | 123,911 | ||
Money market funds | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 5,775 | 11,903 | [1] | |||
Corporate bonds | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 112,106 | 99,474 | [2] | |||
Municipal bonds | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 15,246 | [3] | 18,137 | [2] | ||
Cash and cash equivalents | 176 | |||||
Commercial paper | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 5,794 | 9,196 | ||||
Assets measured at fair value | 51,019 | [4] | 54,399 | [5] | ||
Cash and cash equivalents | 45,225 | 45,203 | ||||
Certificates of deposit | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 498 | [2] | 498 | [2] | ||
Fair Value, Inputs, Level 1 | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Total assets measured at fair value | 5,775 | 11,903 | ||||
Fair Value, Inputs, Level 1 | Money market funds | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 5,775 | [1] | 11,903 | [1] | ||
Fair Value, Inputs, Level 1 | Municipal bonds | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 0 | [3] | ||||
Fair Value, Inputs, Level 1 | Commercial paper | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 0 | [4] | ||||
Fair Value, Inputs, Level 1 | Certificates of deposit | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 0 | [2] | ||||
Fair Value, Inputs, Level 2 | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Total assets measured at fair value | 178,869 | 172,508 | ||||
Fair Value, Inputs, Level 2 | Corporate bonds | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 112,106 | [2] | 99,474 | [2] | ||
Fair Value, Inputs, Level 2 | Municipal bonds | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 15,246 | [3] | 18,137 | [2] | ||
Fair Value, Inputs, Level 2 | Commercial paper | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 51,019 | [4] | 54,399 | [5] | ||
Fair Value, Inputs, Level 2 | Certificates of deposit | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 498 | [2] | 498 | [2] | ||
Fair Value, Inputs, Level 3 | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Total assets measured at fair value | 0 | 0 | ||||
Fair Value, Inputs, Level 3 | Municipal bonds | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 0 | [3] | ||||
Fair Value, Inputs, Level 3 | Commercial paper | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | 0 | [4] | ||||
Fair Value, Inputs, Level 3 | Certificates of deposit | ||||||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||||||
Assets measured at fair value | $0 | [2] | ||||
[1] | Classified in cash and cash equivalents | |||||
[2] | Classified in marketable securities | |||||
[3] | Includes a municipal bond with an original maturity date of three months or less at time purchase of $176 classified in cash and cash equivalents. | |||||
[4] | Includes commercial paper with maturities of three months or less at time of purchase of $45,225 classified in cash and cash equivalents and commercial paper with maturities of greater than three months of $5,794 classified in marketable securities. | |||||
[5] | Includes commercial paper with maturities of three months or less at time of purchase of $45,203 classified in cash and cash equivalents and commercial paper with maturities of greater than three months of $9,196 classified in marketable securities. |
Net_Loss_Per_Share_Computation
Net Loss Per Share - Computation 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, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net loss | ($9,158) | ($4,295) |
Denominator (basic and diluted): | ||
Weighted average common shares outstanding | 94,033,035 | 91,903,036 |
Net loss per share: | ||
Basic and diluted | ($0.10) | ($0.05) |
Net_Loss_Per_Share_Number_of_O
Net Loss Per Share - Number of Outstanding Stock Options, Warrants to Purchase Common Preferred Stock and Convertible Redeemable Preferred Stock Excluded from Computation of Diluted Net Income (Loss) Per Share (Detail) (Excluded From Earnings Per Share Calculation) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Excluded From Earnings Per Share Calculation | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Stock options outstanding | 2,898,461 | 5,131,673 |
Restricted stock units and restricted stock awards | 145,676 | 217,010 |
Common equivalent shares from stock warrants | 2,219,671 | 2,378,641 |
Shares purchased under ESPP | 0 | 25,105 |
Antidilutive securities excluded from computation of earnings per share, amount, total | 5,263,808 | 7,752,429 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Income tax benefit | ($6,026) | ($2,948) |
Segment_Reporting_Financial_In
Segment Reporting - Financial Information of Segments (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Revenue | |||
External customers | $134,408 | $107,586 | |
Income (loss) from operations | -15,132 | -7,205 | |
Goodwill | 159,342 | 159,342 | |
Total assets | 589,535 | 563,316 | |
Consumer | |||
Revenue | |||
External customers | 128,201 | 100,995 | |
Intersegment revenue | 0 | 0 | |
Income (loss) from operations | -10,755 | -3,268 | |
Goodwill | 99,805 | 99,805 | |
Total assets | 485,016 | 455,035 | |
Enterprise | |||
Revenue | |||
External customers | 6,207 | 6,591 | |
Intersegment revenue | 2,056 | 1,514 | |
Income (loss) from operations | -4,377 | -3,937 | |
Goodwill | 59,537 | 59,537 | |
Total assets | 105,219 | 108,905 | |
Eliminations | |||
Revenue | |||
Intersegment revenue | -2,056 | -1,514 | |
Total assets | ($700) | ($624) |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Feb. 04, 2015 | Dec. 31, 2014 |
claim | |||
Loss Contingencies [Line Items] | |||
Value of the service guarantee | $1,000,000 | ||
Unfavorable regulatory action | Pending litigation | In re LifeLock, Inc. Securities Litigation | |||
Loss Contingencies [Line Items] | |||
Settlement offer | 20,000 | ||
Accrued liability for legal settlement | 20,000 | ||
Possible loss | $100,000 | ||
Pending counter claims | 4 |