Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 27, 2013 | Feb. 21, 2014 | Feb. 21, 2014 |
Class A common stock | Class B common stock | |||
Document Document And Entity Information [Line Items] | ' | ' | ' | ' |
Document Type | '10-K | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' |
Trading Symbol | 'RNG | ' | ' | ' |
Entity Registrant Name | 'RingCentral Inc | ' | ' | ' |
Entity Central Index Key | '0001384905 | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 10,186,210 | 52,913,219 |
Entity Public Float | ' | $481.20 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $116,378 | $37,864 |
Accounts receivable, net | 3,045 | 2,690 |
Inventory | 2,111 | 833 |
Prepaid expenses and other current assets | 5,214 | 3,408 |
Total current assets | 126,748 | 44,795 |
Property and equipment, net | 16,660 | 17,008 |
Other assets | 1,777 | 1,551 |
Total assets | 145,185 | 63,354 |
Current liabilities: | ' | ' |
Accounts payable | 4,414 | 4,553 |
Accrued liabilities | 20,559 | 21,487 |
Current portion of capital lease obligation | 347 | 312 |
Current portion of long-term debt | 9,871 | 7,636 |
Deferred revenue | 16,552 | 11,291 |
Total current liabilities | 51,743 | 45,279 |
Long-term debt | 24,356 | 12,428 |
Sales tax liability | 3,988 | 3,877 |
Capital lease obligation | 247 | 703 |
Other long-term liabilities | 1,336 | 996 |
Total liabilities | 81,670 | 63,283 |
Commitments and contingencies (Note 5) | ' | ' |
Stockholdersb equity: | ' | ' |
Preferred stock | ' | 74,020 |
Additional paid-in capital | 193,574 | 9,791 |
Accumulated other comprehensive loss | -310 | -85 |
Accumulated deficit | -129,755 | -83,657 |
Total stockholdersb equity | 63,515 | 71 |
Total liabilities and stockholdersb equity | 145,185 | 63,354 |
Convertible Preferred Stock | ' | ' |
Stockholdersb equity: | ' | ' |
Preferred stock | ' | 74,020 |
Class A common stock | ' | ' |
Stockholdersb equity: | ' | ' |
Common stock | 1 | ' |
Class B common stock | ' | ' |
Stockholdersb equity: | ' | ' |
Common stock | $5 | $2 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Preferred stock, shares authorized | ' | 32,294,000 |
Preferred stock, shares outstanding | ' | 30,369,000 |
Preferred stock, liquidation preference, value | ' | $74,496,000 |
Common stock, shares outstanding | 37,075,000 | 100,193,000 |
Convertible Preferred Stock | ' | ' |
Preferred stock, no par value | 0 | $0 |
Preferred stock, shares authorized | 0 | 32,294,000 |
Preferred stock, shares issued | 0 | 30,369,000 |
Preferred stock, shares outstanding | 0 | 30,369,000 |
Preferred stock, liquidation preference, value | 0 | $74,496,000 |
Class A common stock | ' | ' |
Common stock, par or stated value per share | 0.0001 | $0.00 |
Preferred stock, shares authorized | 1,000,000,000 | 0 |
Common stock, shares issued | 9,201,000 | 0 |
Common stock, shares outstanding | 9,201,000 | 0 |
Class B common stock | ' | ' |
Common stock, par or stated value per share | 0.0001 | $0.00 |
Preferred stock, shares authorized | 250,000,000 | 65,000,000 |
Common stock, shares issued | 53,043,000 | 22,694,000 |
Common stock, shares outstanding | 53,043,000 | 22,694,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Services | $145,995 | $105,693 | $71,915 |
Product | 14,510 | 8,833 | 6,962 |
Total revenues | 160,505 | 114,526 | 78,877 |
Cost of revenues: | ' | ' | ' |
Services | 47,230 | 36,215 | 26,475 |
Product | 14,289 | 8,688 | 6,523 |
Total cost of revenues | 61,519 | 44,903 | 32,998 |
Gross profit | 98,986 | 69,623 | 45,879 |
Operating expenses: | ' | ' | ' |
Research and development | 33,399 | 24,450 | 12,199 |
Sales and marketing | 72,336 | 54,566 | 34,550 |
General and administrative | 34,284 | 24,434 | 12,969 |
Total operating expenses | 140,019 | 103,450 | 59,718 |
Loss from operations | -41,033 | -33,827 | -13,839 |
Other income (expense), net: | ' | ' | ' |
Interest expense | -5,384 | -1,503 | -158 |
Other income (expense), net | 274 | 32 | 109 |
Other income (expense), net | -5,110 | -1,471 | -49 |
Loss before provision (benefit) for income taxes | -46,143 | -35,298 | -13,888 |
Provision (benefit) for income taxes | -45 | 92 | 15 |
Net loss | ($46,098) | ($35,390) | ($13,903) |
Net loss per common share: | ' | ' | ' |
Basic and diluted | ($1.39) | ($1.58) | ($0.64) |
Weighted-average number of shares used in computing net loss per share: | ' | ' | ' |
Basic and diluted | 33,155 | 22,353 | 21,678 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net loss | ($46,098) | ($35,390) | ($13,903) |
Other comprehensive loss: | ' | ' | ' |
Foreign currency translation adjustments, net | -225 | -65 | -20 |
Comprehensive loss | ($46,323) | ($35,455) | ($13,923) |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders Equity (USD $) | Total | Convertible Preferred Stock | Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
In Thousands | Series D Preferred Stock | Series E Preferred Stock | ||||||
Beginning Balance at Dec. 31, 2010 | $2,909 | $33,724 | ' | ' | $2 | $3,547 | ' | ($34,364) |
Beginning Balance, shares at Dec. 31, 2010 | ' | 25,535 | ' | ' | 21,190 | ' | ' | ' |
Issuance of common stock upon exercise and early exercise of stock options | 893 | ' | ' | ' | ' | 893 | ' | ' |
Issuance of common stock upon exercise and early exercise of stock options, shares | ' | ' | ' | ' | 1,020 | ' | ' | ' |
Issuance of stock | 10,385 | ' | 10,385 | ' | ' | ' | ' | ' |
Issuance of stock, shares | ' | ' | 1,737 | ' | ' | ' | ' | ' |
Share-based compensation | 1,188 | ' | ' | ' | ' | 1,188 | ' | ' |
Other comprehensive loss | -20 | ' | ' | ' | ' | ' | -20 | ' |
Net loss | -13,903 | ' | ' | ' | ' | ' | ' | -13,903 |
Ending Balance at Dec. 31, 2011 | 1,452 | 44,109 | ' | ' | 2 | 5,628 | -20 | -48,267 |
Ending Balance, shares at Dec. 31, 2011 | ' | 27,272 | ' | ' | 22,210 | ' | ' | ' |
Issuance of common stock upon exercise and early exercise of stock options | 419 | ' | ' | ' | ' | 419 | ' | ' |
Issuance of common stock upon exercise and early exercise of stock options, shares | 484 | ' | ' | ' | 484 | ' | ' | ' |
Issuance of preferred stock warrants in connection with a debt agreement | 169 | ' | ' | ' | ' | 169 | ' | ' |
Issuance of stock | 29,911 | ' | ' | 29,911 | ' | ' | ' | ' |
Issuance of stock, shares | ' | ' | ' | 3,097 | ' | ' | ' | ' |
Reclassification of preferred stock warrant | 473 | ' | ' | ' | ' | 473 | ' | ' |
Share-based compensation | 3,102 | ' | ' | ' | ' | 3,102 | ' | ' |
Other comprehensive loss | -65 | ' | ' | ' | ' | ' | -65 | ' |
Net loss | -35,390 | ' | ' | ' | ' | ' | ' | -35,390 |
Ending Balance at Dec. 31, 2012 | 71 | 74,020 | ' | ' | 2 | 9,791 | -85 | -83,657 |
Ending Balance, shares at Dec. 31, 2012 | ' | 30,369 | ' | ' | 22,694 | ' | ' | ' |
Issuance of common stock upon exercise and early exercise of stock options | 1,007 | ' | ' | ' | ' | 1,007 | ' | ' |
Issuance of common stock upon exercise and early exercise of stock options, shares | 607 | ' | ' | ' | 616 | ' | ' | ' |
Issuance of common stock for legal settlement | 257 | ' | ' | ' | ' | 257 | ' | ' |
Issuance of common stock for legal settlement, shares | ' | ' | ' | ' | 20 | ' | ' | ' |
Issuance of preferred stock warrants in connection with a debt agreement | 866 | ' | ' | ' | ' | 866 | ' | ' |
Issuance of stock | 99,277 | ' | ' | ' | 1 | 99,276 | ' | ' |
Issuance of stock, shares | ' | ' | ' | ' | 8,545 | ' | ' | ' |
Reclassification of preferred stock warrant | 820 | ' | ' | ' | ' | 820 | ' | ' |
Conversion of preferred stock into common stock in connection with IPO | ' | -74,020 | ' | ' | 3 | 74,017 | ' | ' |
Conversion of preferred stock into common stock in connection with IPO, shares | ' | -30,369 | ' | ' | 30,369 | ' | ' | ' |
Share-based compensation | 7,540 | ' | ' | ' | ' | 7,540 | ' | ' |
Other comprehensive loss | -225 | ' | ' | ' | ' | ' | -225 | ' |
Net loss | -46,098 | ' | ' | ' | ' | ' | ' | -46,098 |
Ending Balance at Dec. 31, 2013 | $63,515 | ' | ' | ' | $6 | $193,574 | ($310) | ($129,755) |
Ending Balance, shares at Dec. 31, 2013 | ' | ' | ' | ' | 62,244 | ' | ' | ' |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 |
Common Stock | Series D Preferred Stock | Series E Preferred Stock | |
Issuance costs | $11,809 | $79 | $89 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ($46,098) | ($35,390) | ($13,903) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Depreciation and amortization | 8,980 | 6,191 | 3,546 |
Share-based compensation | 7,540 | 3,102 | 1,188 |
Noncash interest and other expense related to debt agreements | 2,014 | 265 | ' |
Loss on disposal of assets | 338 | 26 | ' |
Changes in assets and liabilities | ' | ' | ' |
Accounts receivable | -355 | -2,256 | -239 |
Inventory | -1,279 | 769 | -1,442 |
Prepaid expenses and other current assets | -1,873 | -2,022 | 189 |
Other assets | -344 | -422 | -331 |
Accounts payable | -453 | -1,392 | 2,193 |
Accrued liabilities | 1,370 | 12,898 | 2,597 |
Deferred revenue | 5,262 | 2,248 | 2,526 |
Other liabilities | 1,127 | 968 | 2,897 |
Net cash used in operating activities | -23,771 | -15,015 | -779 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -10,789 | -10,172 | -6,664 |
Restricted investments | -130 | ' | ' |
Net cash used in investing activities | -10,919 | -10,172 | -6,664 |
Cash flows from financing activities: | ' | ' | ' |
Net proceeds from debt agreements | 37,857 | 24,538 | ' |
Net proceeds from issuance of preferred stock warrants | 1,625 | 501 | ' |
Repayment of debt agreements | -26,309 | -5,356 | -1,005 |
Repayment of capital lease obligations | -422 | -675 | -310 |
Net proceeds from issuance of preferred stock | ' | 29,911 | 10,385 |
Net proceeds from initial public offering of common stock | -99,589 | ' | ' |
Proceeds from exercise of stock options and common stock warrants | 893 | 556 | 817 |
Net cash provided by financing activities | 113,233 | 49,475 | 9,887 |
Effect of exchange rate changes on cash and cash equivalents | -29 | -1 | -4 |
Net increase in cash and cash equivalents | 78,514 | 24,287 | 2,440 |
Cash and cash equivalents: | ' | ' | ' |
Beginning of period | 37,864 | 13,577 | 11,137 |
End of period | 116,378 | 37,864 | 13,577 |
Supplemental disclosure of cash flow data: | ' | ' | ' |
Cash paid for interest | 2,437 | 791 | 117 |
Cash paid for income taxes | 46 | 64 | 1 |
Noncash financing activities: | ' | ' | ' |
Change in liability for nonvested options exercised | 114 | 20 | 181 |
Reclassification of preferred stock warrants from liability to equity | 820 | 473 | ' |
Deferred debt issuance costs recorded in connection with issuance of preferred stock warrants | ' | 122 | ' |
Conversion of preferred stock to common stock in connection with initial public offering | 74,020 | ' | ' |
Accrued liability for initial public offering costs | 313 | ' | ' |
Equipment purchased and unpaid at period end | 775 | 2,700 | 271 |
Equipment purchased under capital lease | ' | $1,329 | ' |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Description of Business and Summary of Significant Accounting Policies | ' | |||||||||||||||||
Note 1. Description of Business and Summary of Significant Accounting Policies | ||||||||||||||||||
Description of Business | ||||||||||||||||||
RingCentral, Inc. (“the Company”) is a provider of software-as-a-service (“SaaS”) solutions for business communications. The Company was incorporated in California in 1999 and was reincorporated in Delaware on September 26, 2013. The Company’s consolidated balance sheets and statements of stockholders’ equity have been prepared to reflect the reincorporation in Delaware for all periods presented. The Company is headquartered in San Mateo, California. | ||||||||||||||||||
Initial Public Offering | ||||||||||||||||||
On October 2, 2013, the Company closed its initial public offering (“IPO”) and sold 8,545,000 shares of Class A common stock to the public, including the underwriters’ overallotment option of 1,125,000 shares of Class A common stock and an additional 80,000 shares of Class A common stock were sold by selling stockholders, all at a price of $13.00 per share. The Company received aggregate proceeds of $103,309,000 from the IPO, net of underwriters’ discounts and commissions, but before deduction of offering expenses of approximately $4,032,000. | ||||||||||||||||||
Basis of Presentation and Liquidity | ||||||||||||||||||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All intercompany accounts and transactions have been eliminated. As the Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (“the JOBS Act”), the Company can delay the adoption of new accounting standards until those standards would otherwise apply to privately held companies. However, the Company has elected to comply with all new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth publicly held companies. Under the JOBS Act, such election is irrevocable. | ||||||||||||||||||
The Company has funded its operations through proceeds from its IPO, preferred stock financings, sales to customers and debt financing under its credit agreements. However, the Company has historically incurred losses and negative cash flows from operations. As of December 31, 2013, the Company had an accumulated deficit of $129,755,000. Management of the Company expects that operating losses and negative cash flows from operations will continue through at least December 31, 2014. | ||||||||||||||||||
The Company’s existing sources of liquidity include cash and cash equivalents of $116,378,000 as of December 31, 2013. While management believes that the Company’s existing sources of liquidity are adequate to fund operations through at least December 31, 2014, the Company may need to raise additional debt or equity financing to fund operations until it generates positive cash flows from profitable operations. There can be no assurance that such additional debt or equity financing will be available on terms acceptable to the Company or at all. | ||||||||||||||||||
Use of Estimates | ||||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The significant estimates made by management affect revenues, accounts receivable, the allowance for doubtful accounts, inventory and inventory reserves, share-based compensation, deferred revenue, return reserves, provision for income taxes, uncertain tax positions, loss contingencies, sales tax liabilities and accrued liabilities. Management periodically evaluates such estimates and they are adjusted prospectively based upon such periodic evaluation. Actual results could differ from those estimates. | ||||||||||||||||||
Foreign Currency | ||||||||||||||||||
The functional currency of the Company’s foreign subsidiaries is generally the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as part of a separate component of stockholders’ equity and reported in the statement of comprehensive loss. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Foreign currency transaction gains and losses are included in other income (expense) for the period. | ||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||
The Company considers highly liquid instruments with a remaining maturity of three months or less at the date of purchase to be cash equivalents. The Company’s cash equivalents consist of money market funds. The Company deposits cash and cash equivalents with financial institutions that management believes are of high credit quality. Cash equivalents are stated at cost plus accrued interest, which approximates fair value. | ||||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||||
For all periods presented, a significant portion of revenues were realized from credit card transactions with only a small portion of revenues generating accounts receivable and the Company has not experienced any significant defaults on its accounts receivable. The Company determines provisions based on historical experience and upon a specific review of customer receivables. | ||||||||||||||||||
Below is a summary of the changes in allowance for doubtful accounts for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||
Balance at | Provision, net | Write-offs | Balance at | |||||||||||||||
Beginning of | of Recoveries | End of | ||||||||||||||||
Period | Period | |||||||||||||||||
Year ended December 31, 2011 | $ | — | $ | 5 | $ | — | $ | 5 | ||||||||||
Year ended December 31, 2012 | 5 | 428 | — | 433 | ||||||||||||||
Year ended December 31, 2013 | 433 | (8 | ) | 286 | 139 | |||||||||||||
Inventory | ||||||||||||||||||
The Company’s inventory consists primarily of telephones and peripheral equipment held at third parties. Inventory is stated at the lower of cost computed on a first-in, first-out basis, or market value. Inventory write-downs are recorded when the cost of inventory exceeds its net realizable value and establishes a new cost basis for the inventory. On a quarterly and annual basis, the Company analyzes inventory on a part by part basis in comparison to forecasted demand to identify potential excess and obsolescence issues, and adjusts carrying amounts to estimated net realizable value accordingly. | ||||||||||||||||||
Internal-Use Software Development Costs | ||||||||||||||||||
The Company capitalizes qualifying internal-use software development costs that are incurred during the application development stage, provided that management with the relevant authority authorizes and commits to the funding of the project and it is probable the project will be completed and the software will be used to perform the function intended. Costs related to preliminary project activities and post implementation operation activities are expensed as incurred. Capitalized internal-use software development costs are included in property and equipment and are amortized on a straight-line basis to cost of revenues when the underlying project is ready for its intended use. For the years ended December 31, 2013 and 2012, the Company capitalized $1,317,000 and $1,480,000 of internal-use software development costs incurred, respectively. | ||||||||||||||||||
Property and Equipment, Net | ||||||||||||||||||
Property and equipment, net is stated at cost, less accumulated depreciation and amortization, and is depreciated using the straight-line method over the estimated useful lives of the assets. Computer hardware and software, and furniture and fixtures are depreciated over three years; internal-use software development costs are amortized over useful lives ranging from three to four years; and leasehold improvements are depreciated over the respective lease term or useful life, whichever is shorter. Maintenance and repairs are charged to expense as incurred. | ||||||||||||||||||
The Company evaluates the recoverability of property and equipment for possible impairment whenever events or circumstances indicate that the carrying amount of such assets or asset groups may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows of the assets or asset groups are expected to generate. If such evaluation indicates that the carrying amount of the assets or asset groups is not recoverable, the carrying amount of such assets or asset groups is reduced to its estimated fair value. No impairment losses have been recognized in the fiscal years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||
Concentrations | ||||||||||||||||||
Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company maintains its cash and cash equivalent balances, which may exceed federally insured limits, with financial institutions that management believes are financially sound and have minimal credit risk exposure. | ||||||||||||||||||
The Company’s accounts receivable are primarily derived from sales by resellers and to larger direct customers. The Company performs ongoing credit evaluations of its resellers and does not require collateral on accounts receivable. The Company maintains an allowance for doubtful accounts for estimated potential credit losses. At December 31, 2013 and 2012, customer A accounted for 68% and 54% of the Company’s total accounts receivable, respectively. For the years ended December 31, 2013, 2012, and 2011, no single customer accounted for greater than 10% of the Company’s total revenues. | ||||||||||||||||||
The Company purchased or contracted a significant portion of its software development efforts from third-party vendors located in Russia and the Ukraine during the years ended December 31, 2013, 2012 and 2011, respectively. A cessation of services provided by these vendors could result in a disruption to the Company’s research and development efforts. | ||||||||||||||||||
Revenue Recognition | ||||||||||||||||||
The Company’s revenues consist of services revenues and product revenues. The Company’s services revenues include all fees billed in connection with subscriptions to the Company’s RingCentral Office, RingCentral Professional and RingCentral Fax SaaS applications. These service fees include recurring fixed plan subscription fees, recurring administrative cost recovery fees, variable usage-based fees for blocks of additional minutes systematically purchased in advance of usage in excess of plan limits and one-time upfront fees. The Company provides its services pursuant to contractual arrangements that range in duration from one month to three years. The Company’s service fees are generally billed in advance directly to customer credit cards or via invoices issued to larger customers. The Company’s product revenues consists of sales of pre-configured office phones used in connection with the service and includes shipping and handling fees. | ||||||||||||||||||
The Company recognizes revenues when the following criteria are met: | ||||||||||||||||||
· | there is persuasive evidence of an arrangement; | |||||||||||||||||
· | the service is being provided to the customer or the product has been delivered; | |||||||||||||||||
· | the collection of the fees is reasonably assured; and | |||||||||||||||||
· | the amount of fees to be paid by the customer is fixed or determinable. | |||||||||||||||||
Revenues under service subscription plans are recognized as follows: | ||||||||||||||||||
· | fixed service plan subscription and administrative cost recovery fees are recognized on a straight-line basis over their respective contractual service terms; | |||||||||||||||||
· | fees for additional minutes of usage in excess of plan limits are recognized over the estimated usage period in a manner that approximates actual usage; and | |||||||||||||||||
· | one-time upfront fees are initially deferred and recognized on a straight-line basis over the estimated average customer life. | |||||||||||||||||
Product revenues are billed at the time the order is received and recognized when the product has been delivered to the customer. | ||||||||||||||||||
The Company enters into arrangements with multiple-deliverables that generally include services to be provided under the subscription plan and the sale of products used in connection with the Company’s services. The Company allocates the consideration to each deliverable in a multiple-deliverable arrangement based upon its relative selling prices. The Company determines the selling price using vendor-specific objective evidence (“VSOE”) for its service subscription plans and best estimated selling price (“BESP”) for its product offerings. Consideration allocated to each deliverable, limited to the amount not contingent on future performance, are then recognized to revenue when the basic revenue recognition criteria are met for the respective deliverable. | ||||||||||||||||||
The Company determines VSOE based on historical standalone sales to customers. In determining VSOE, the Company requires that a substantial majority of the selling prices fall within a reasonably narrow pricing range. VSOE exists for all of the Company’s service subscription plans. The Company uses BESP as the selling price for its product offerings because the Company is not able to determine VSOE of fair value from standalone sales or third-party evidence of selling price (“TPE”). The Company estimates BESP for a product by considering company-specific factors such as pricing objectives, direct product and other costs, bundling and discounting practices and contractually stated prices. | ||||||||||||||||||
A portion of the Company’s services revenues and product revenues are generated through sales by resellers. When the Company assumes a majority of the business risks associated with performance of the contractual obligations, it records these revenues at the gross amount paid by the customer with amounts retained by the resellers recognized as sales and marketing expense. The Company’s assumption of such business risks is evidenced when, among other things, it takes responsibility for delivery of the product or service, is involved in establishing pricing of the arrangement, assumes credit and inventory risk, and is the primary obligor in the arrangement. When a reseller assumes the majority of the business risks associated with the performance of the contractual obligations, the Company records the associated revenues at the net amount received from the reseller. The Company recognizes revenues from resellers when the following criteria are met: | ||||||||||||||||||
· | persuasive evidence of an arrangement exists through a contract with the customer; | |||||||||||||||||
· | the service is being provided to the customer or the product has been delivered; | |||||||||||||||||
· | the amount of fees to be paid by the customer is fixed or determinable; and | |||||||||||||||||
· | the collection of the fees is reasonably assured. | |||||||||||||||||
The Company’s deliverables sold through its reseller agreements consist of the Company’s services subscriptions and products. Service subscriptions sold through resellers are recognized on a straight-line basis over the period the underlying services are provided to the end customer. Products sold through resellers are shipped directly to the end customer and are recognized when title transfers to the end customer. Revenues from resellers have predominantly been recorded on a gross basis for all periods presented. | ||||||||||||||||||
The Company records reductions to revenues for estimated sales returns and customer credits at the time the related revenues are recognized. Sales returns and customer credits are estimated based on historical experience, current trends and expectations regarding future experience. | ||||||||||||||||||
Customer billings related to taxes imposed by and remitted to governmental authorities on revenue-producing transactions are reported on a net basis. When such remitted taxes exceed the amount billed to customers, the cost is included in general and administrative expenses. | ||||||||||||||||||
Amounts billed in excess of revenues recognized for the period are reported as deferred revenue on the consolidated balance sheet. The Company’s deferred revenue consists primarily of unearned revenue on annual and monthly service plans. | ||||||||||||||||||
Cost of Revenues | ||||||||||||||||||
Cost of services revenues primarily consists of costs of network capacity purchased from third-party telecommunications providers, network operations, costs to equip and maintain data centers, including co-location fees for the right to place the Company’s servers in data centers owned by third-parties, depreciation of the servers and equipment, along with related utilities and maintenance costs. Cost of services revenue also includes personnel costs associated with non-administrative customer care and support of the functionality of the Company’s platform and data center operations, including share-based compensation expenses and allocated costs of facilities and information technology. Cost of services revenues is expensed as incurred. | ||||||||||||||||||
Cost of product revenues is comprised primarily of the cost associated with purchased phones, shipping costs, as well as personnel costs for contractors and allocated costs of facilities and information technology related to the procurement, management and shipment of phones. Cost of product revenues is expensed in the period product is delivered to the customer. | ||||||||||||||||||
Share-Based Compensation | ||||||||||||||||||
All share-based compensation granted to employees is measured as the grant date fair value of the award and recognized in the consolidated statement of operations over the requisite service period, which is generally the vesting period. The Company estimates the fair value of stock options using the Black-Scholes-Merton option pricing model. Compensation expense is recognized using the straight-line method net of estimated forfeitures. | ||||||||||||||||||
Compensation expense for stock options granted to non-employees is calculated using the Black-Scholes-Merton option pricing model and is recognized in the consolidated statement of operations over the service period. Compensation expense for non-employee stock options subject to vesting is revalued as of each reporting date until the stock options are vested. | ||||||||||||||||||
Research and Development | ||||||||||||||||||
Research and development expenses consist primarily of third-party contractor costs, personnel costs, technology license expenses, and depreciation associated with research and development equipment. Research and development costs are expensed as incurred, except for internal-use software development costs that qualify for capitalization. | ||||||||||||||||||
Advertising Costs | ||||||||||||||||||
Advertising costs, which include various forms of e-commerce such as search engine marketing, as well as more traditional forms of media advertising such as radio and billboards, are expensed as incurred and were $22,943,000, $21,915,000, and $13,046,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||
Commissions | ||||||||||||||||||
Commissions consist of variable compensation earned by sales personnel and third-party resellers. Sales commissions associated with the acquisition of a new customer contract are recognized as sales and marketing expense at the time the customer has entered into a binding agreement. | ||||||||||||||||||
Income Taxes | ||||||||||||||||||
The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. The Company records a valuation allowance to reduce its deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. As of December 31, 2013 and 2012, except for deferred tax assets associated with its subsidiary in China, the Company recorded a full valuation allowance against all other net deferred tax assets because of its history of operating losses. The Company classifies interest and penalties on unrecognized tax benefits as income tax expense. | ||||||||||||||||||
Segment Information | ||||||||||||||||||
The Company has determined the chief executive officer is the chief operating decision maker. The Company’s chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reporting segment. | ||||||||||||||||||
Indemnification | ||||||||||||||||||
Certain of the Company’s agreements with resellers and customers include provisions for indemnification against liabilities if its services infringe a third-party’s intellectual property rights. At least quarterly, the Company assesses the status of any significant matters and its potential financial statement exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, the Company accrues a liability for the estimated loss. The Company has not incurred any material costs as a result of such indemnification provisions and the Company has not accrued any liabilities related to such obligations in the consolidated financial statements as of December 31, 2013 or 2012. | ||||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||
In February 2013, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The new guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The Company has adopted this standard during the first quarter of 2013. The adoption of this standard expanded the consolidated financial statement footnote disclosures, however there were no amounts reclassified out of accumulated other comprehensive income in any period presented. | ||||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740) Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exists. The new guidance requires the netting of unrecognized tax benefits (“UTBs”) against a deferred tax asset for a loss or other carry-forward that would apply in settlement of the uncertain tax positions. Under the new standard, UTBs will be netted against all available same-jurisdiction loss or other tax carry-forwards that would be utilized, rather than only against carry-forwards that are created by the UTBs. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The ASU should be applied prospectively to all UTBs that exist at the effective date. Retrospective application is permitted. The Company does not expect the adoption of this guidance to have any significant impact on the Company’s consolidated financial statements. |
Financial_Statement_Components
Financial Statement Components | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Financial Statement Components | ' | ||||||||
Note 2. Financial Statement Components | |||||||||
Cash and cash equivalents consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Cash | $ | 34,561 | $ | 3,599 | |||||
Money market funds | 81,817 | 34,265 | |||||||
Total cash and cash equivalents | $ | 116,378 | $ | 37,864 | |||||
Accounts receivable, net consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accounts receivable-trade | $ | 2,192 | $ | 2,683 | |||||
Unbilled accounts receivable-trade | 992 | 440 | |||||||
Allowance for doubtful accounts | -139 | (433 | ) | ||||||
Accounts receivable, net | $ | 3,045 | $ | 2,690 | |||||
Property and equipment, net consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Computer hardware and software | $ | 30,449 | $ | 23,973 | |||||
Internal-use software development costs | 4,636 | 3,319 | |||||||
Furniture and fixtures | 1,127 | 700 | |||||||
Leasehold improvements | 859 | 441 | |||||||
Property and equipment, gross | 37,071 | 28,433 | |||||||
Less: accumulated depreciation | -20,411 | (11,425 | ) | ||||||
Property and equipment, net | $ | 16,660 | $ | 17,008 | |||||
Total depreciation and amortization expense was $8,980,000, $6,191,000, and $3,546,000 for the fiscal years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Accrued liabilities consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued compensation and benefits | $ | 5,660 | $ | 3,216 | |||||
Accrued sales, use and telecom related taxes | 3,967 | 4,580 | |||||||
Accrued expenses | 10,168 | 11,998 | |||||||
Other | 764 | 1,693 | |||||||
Total accrued liabilities | $ | 20,559 | $ | 21,487 | |||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Note 3. Fair Value of Financial Instruments | |||||||||||||||||
The Company carries certain financial assets consisting of money market funds and certificates of deposit at fair value on a recurring basis. Fair value is based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | |||||||||||||||||
Level 1: | Observable inputs which include unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2: | Observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. | ||||||||||||||||
Level 3: | Unobservable inputs that are supported by little or no market activity and that are based on management’s assumptions, including fair value measurements determined by using pricing models, discounted cash flow methodologies or similar valuation techniques. | ||||||||||||||||
The fair value of assets carried at fair value was determined using the following inputs (in thousands): | |||||||||||||||||
Balance at | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 81,817 | $ | 72,717 | $ | 9,000 | $ | — | |||||||||
Other assets: | |||||||||||||||||
Certificates of deposit | $ | 630 | $ | — | $ | 630 | $ | — | |||||||||
Balance at | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
December 31, 2012 | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 34,265 | $ | 34,265 | $ | — | $ | — | |||||||||
Other assets: | |||||||||||||||||
Certificates of deposit | $ | 500 | $ | — | $ | 500 | $ | — | |||||||||
During 2012, the Company issued TriplePoint Capital, LLC (“TriplePoint”) preferred stock warrants in connection with a debt agreement that were recorded as a liability at issuance and carried at fair value for a portion of the year prior to reclassification to stockholders’ equity. The fair value of the warrants at the issuance date was $454,000 and $473,000 on the date of reclassification. The fair value of preferred stock warrants was determined by the Black-Scholes-Merton option pricing model, which is a technique using level 3 inputs, based on the assumptions in Note 6. | |||||||||||||||||
In June 2013 and August 2013, the Company issued TriplePoint preferred stock warrants in connection with debt agreements that were recorded as liabilities at issuance and were carried at fair value for a portion of the year prior to reclassification to stockholders’ equity. The fair value of the warrants at the issuance dates in June 2013 and August 2013 were $265,000 and $495,000, respectively. The fair value of the June 2013 and August 2013 warrants at the date of reclassification were $320,000 and $500,000, respectively. The fair value of preferred stock warrants was determined by the Black-Scholes-Merton option pricing model which is a technique using level 3 inputs which are detailed in Note 6. | |||||||||||||||||
The Company’s other financial instruments, including accounts receivable, accounts payable and other current liabilities, are carried at cost which approximates fair value due to the relatively short maturity of those instruments. Based on borrowing rates available to the Company for loans with similar terms and considering the Company’s credit risks, the carrying value of debt approximates fair value. |
Debt
Debt | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt | ' | ||||||||
Note 4. Debt | |||||||||
Silicon Valley Bank Credit Facility | |||||||||
In February 2009, the Company entered into a loan and security agreement with Silicon Valley Bank (“SVB”) that was last amended in December 2013. Under this agreement the Company borrowed $2,500,000 on a term loan in January 2010 and $8,000,000 on a capital growth term loan in March 2012, which was equal to the full final lending commitment. The 2010 term loan was repaid in 30 equal monthly installments of principal and interest, which accrued at an annual fixed rate of 6.5%. In addition, a final terminal payment was made at maturity equal to 3.5% of the original loan principal. The 2010 term loan was repaid in full during the third quarter of 2012. The 2012 capital growth term loan is required to be repaid in 36 equal monthly installments of principal plus interest, which accrues at a floating annual rate equal to prime plus 2.75%. In addition, a final terminal payment is due at maturity equal to 0.5% of the original loan principal. At December 31, 2013, the outstanding principle balance of the SVB capital growth term loan was $3,333,000. | |||||||||
In August 2013, the Company entered into an amended loan and security agreement with SVB (the “Amended SVB Credit Agreement”), which provides for a revolving line of credit of up to $15,000,000 and a mezzanine term loan of up to $5,000,000. The revolving line of credit bears interest at a floating annual rate of prime plus 2.0%, which must be paid monthly, and all outstanding principal and unpaid interest must be repaid by August 13, 2015. The mezzanine term loan bears interest at a fixed annual rate of 11.0%, which must be paid monthly, and all principal amounts and unpaid interest must be repaid by August 1, 2016, unless the Company voluntarily repays the balance at an earlier date without penalty. A final payment of 2.75% of the amount advanced under the mezzanine term loan is due upon repayment of this loan at maturity or prepayment of this loan. On August 14, 2013, the Company borrowed $10,778,000 under the revolving line of credit, which represented the full available borrowing capacity on that date. The borrowing limit available under the revolving line of credit increases as the principal balance of the existing $8,000,000 capital growth term loan from SVB is repaid subject to limits based on recurring subscription revenue. The Company does not expect this requirement will limit the amount of borrowings available under the line of credit. The existing capital growth term loan had an outstanding balance of $4,222,000 when the Company entered into the Amended SVB Credit Agreement. At December 31, 2013, the principal balance and available borrowing capacity of the revolving line of credit were $10,778,000 and $889,000, respectively. On August 16, 2013, the Company borrowed the full $5,000,000 available under the mezzanine term loan. | |||||||||
In connection with the Amended SVB Credit Agreement, the Company issued SVB warrants to purchase 90,324 shares of its Series E preferred stock at an exercise price of $9.69 per share. As the Series E preferred stock warrants were issued in connection with a loan, the proceeds were allocated to the loan and the warrants based on the relative fair value of the instruments resulting in a loan discount of $866,000 being recorded, with a corresponding increase to additional paid in capital as part of stockholders’ equity. The fair value of the Series E preferred stock warrants was measured at issuance using the Black-Scholes-Merton option pricing model with the following assumptions: (i) expected volatility of 60%, (ii) expected life of 10.0 years, (iii) risk free interest rate of 2.7%, (iv) dividend yield of 0.00%, and (v) fair value of Series E preferred stock of $12.86 per share. Upon the effectiveness of the Registration Statement and the filing of its Certificate of Incorporation in Delaware on September 26, 2013, the Series E preferred stock and preferred stock warrants were converted into Class B common stock and warrants to purchase Class B common stock, respectively. | |||||||||
On December 31, 2013, the Company refinanced certain of its outstanding debt as described below, to lower the interest rate on such debt (the “Refinancing”). In connection with the Refinancing, on December 31, 2013, the Company entered into a Second Amendment to the Amended SVB Credit Agreement (the “Amendment”) by and among the Company and SVB. The Amendment amends the terms of the Company’s Amended SVB Credit Agreement and provides for an additional term loan in the principal amount of up to $15,000,000 (the “New SVB term loan”) all of which the Company borrowed from SVB on December 31, 2013. | |||||||||
The proceeds of the New SVB term loan were used to repay the SVB $5,000,000 mezzanine term loan it borrowed from SVB on August 16, 2013, and all of the outstanding term loans under the Growth Capital Loan and Security Agreement dated June 22, 2012 with TriplePoint, as amended. Amounts repaid under the prior term loans cannot be reborrowed and upon repayment, all obligations under the prior term loans have terminated. In connection with the Refinancing, the Company recognized a loss on the early extinguishment of previously outstanding debt of $1,833,000. The loss, which has been charged to interest expense in the statement of operations, is composed of $1,342,000 of non-cash interest expense related to the write-off of unamortized loan discounts and debt issuance costs and $491,000 of cash interest expense related to unaccrued end of term interest payments due upon pre-payment of the loans. | |||||||||
The New SVB term loan bears interest at an annual rate of, at the Company’s option, (i) prime rate as reported in The Wall Street Journal plus a margin of 0.75% or 1.00% or (ii) adjusted LIBOR rate (based on one, two, three or six-month interest periods) plus a margin of 3.75% or 4.00%, in each case such margin being determined based on the average cash balances maintained with SVB or SVB’s affiliates for the preceding month. Interest is due and payable in arrears monthly for prime rate loans and at the end of an interest period for LIBOR rate loans. Principal is required to be repaid in 48 equal monthly installments. The New SVB term loan is subject to substantially the same affirmative and negative covenants and events of default as the Amended SVB Credit Agreement. | |||||||||
The Amended SVB Credit Agreement provides for a revolving line of credit of up to $15,000,000. As of December 31, 2013, the outstanding principal balance under the revolving line of credit is $10,778,000. The Amendment amends the interest rate of this revolving line of credit to an annual rate of, at the Company’s option, (i) prime rate as reported in The Wall Street Journal plus a margin of 0.25% or 0.50% or (ii) adjusted LIBOR rate (based on one, two, three or six-month interest periods) plus a margin of 3.25% or 3.50%, in each case such margin being determined based on the average cash balances maintained with SVB or SVB’s affiliates for the preceding month. | |||||||||
The Company has pledged all of its assets, excluding intellectual property, as collateral to secure its obligations under the Amended SVB Credit Agreement. The Amended SVB Credit Agreement contains customary negative covenants that limit the Company’s ability to, among other things, incur additional indebtedness, grant liens, make investments, repurchase stock, pay dividends, transfer assets and merge or consolidate. The Amended SVB Credit Agreement also contains customary affirmative covenants, which were amended by the Amendment in December 2013, including requirements to, among other things, (i) maintain minimum cash balances representing the greater of $10,000,000 or three times the Company’s quarterly cash burn rate, as defined in the Amended SVB Credit Agreement, and (ii) maintain minimum EBITDA levels, as determined in accordance with the Amendment. The Company was in compliance with all covenants under its credit agreement with SVB as of December 31, 2013. | |||||||||
TriplePoint Capital Credit Facility | |||||||||
In June 2012, the Company entered into a growth capital loan and security agreement and an equipment loan and security agreement with TriplePoint. Under the growth capital loan and security agreement, the Company borrowed $6,000,000 in term loans in June 2012 (“growth capital loan part I”), equal to the full lending commitment available at the time. The growth capital loan part I is required to be repaid in 33 equal monthly installments of principal and interest, which accrues at an annual fixed rate of 8.5% after an interest-only period of three months. In addition, a final terminal payment is due at maturity equal to 4.0% of the original loan principal. The growth capital loan part I was repaid in full on December 31, 2013 in connection with the Refinancing. | |||||||||
Under the equipment loan and security agreement, the Company borrowed $9,691,000 in term loans in August 2012 from the $10,000,000 lending commitment available at the time. The equipment term loans are required to be repaid in 36 equal monthly installments of principal and interest, which accrues at an annual fixed rate of 5.75%. In addition, a final terminal payment is due at maturity equal to 10% of the original loan principal. The equipment term loans remain outstanding and were not impacted by the Refinancing. At December 31, 2013, the outstanding principal balance of the TriplePoint equipment term loan was $5,032,000. | |||||||||
Under the growth capital loan and security agreement, the Company was permitted to borrow an additional $4,000,000 on or before June 21, 2013 upon the submission of a Form S-1 registration statement to the SEC contemplating an IPO of the Company’s common stock with expected total net proceeds of at least $50,000,000. On June 21, 2013, the Company achieved the milestone necessary to access the additional $4,000,000 available under the original terms of the growth capital loan and security agreement and borrowed $4,000,000 (“growth capital loan part II”). The growth capital loan part II is required to be repaid in 33 equal monthly installments of principal and interest, which accrues at an annual fixed rate of 8.5% after an interest-only period of 3 months, which accrues at a fixed rate of 9.0%. In addition, a final terminal payment is due at maturity equal to 4.0% of the original loan principal. This growth capital loan part II was repaid in full on December 31, 2013 in connection with the Refinancing. | |||||||||
In connection with the growth capital loan part II, the Company issued to TriplePoint a warrant to purchase 33,192 shares of Series D preferred stock with the exercise price set at the lower of: (i) $6.03 per share or (ii) the lowest price per share in the next round of equity financing. As the Series D preferred stock warrants were issued in connection with a loan, the proceeds were allocated to the loan and the warrants based on the relative fair value of the instruments resulting in a loan discount of $265,000 being recorded. As a result of the variable exercise price feature, the Series D preferred stock warrants were recorded at fair value and classified as liabilities at issuance, with changes in fair value recognized in other income and expense for the period the warrants remained classified as liabilities. The fair value of the Series D preferred stock warrants was reclassified to stockholders’ equity on September 26, 2013, the date of the effectiveness of the Registration Statement and the filing of its Certificate of Incorporation in Delaware, when the Series D preferred stock and preferred stock warrants were converted into Class B common stock and warrants to purchase Class B common stock, respectively. The fair value of the Series D preferred stock warrants was measured at issuance using the Black-Scholes-Merton option pricing model with the following assumptions: (i) expected volatility of 55%, (ii) expected life of 7.0 years, (iii) risk free interest rate of 1.9%, (iv) dividend yield of 0.00%, and (v) fair value of Series D preferred stock of $11.41 per share. | |||||||||
In August 2013, the Company amended the growth capital loan and security agreement with TriplePoint to provide an additional $5,000,000 term loan (“growth capital loan part III”). In September 2013, the Company entered into a second amendment to the growth capital loan facility to adjust the repayment terms such that the term loan is required to be paid over 36 months as follows: 36 months of interest-only payments at a fixed annual rate of 11.0% and the loan principal at maturity. In addition, a final payment of 2.75% of the original principal amount is due at maturity, which is August 13, 2016, or upon prepayment of this loan. On August 19, 2013, the Company borrowed the full $5,000,000 available under this term loan. This growth capital loan part III was repaid in full on December 31, 2013 in connection with the Refinancing. | |||||||||
In connection with growth capital loan part III, the Company issued to TriplePoint a warrant to purchase 51,614 shares of Series E preferred stock at an exercise price set at the lower of: (i) $9.69 per share or (ii) the lowest price per share in the next round of equity financing. As the Series E preferred stock warrants were issued in connection with a loan, the proceeds were allocated to the loan and the warrants based on the relative fair value of the instruments resulting in a loan discount of $495,000 being recorded. As a result of the variable exercise price feature, the Series E preferred stock warrants were recorded at fair value and classified as liabilities at issuance, with changes in fair value recognized in other income and expense for the period the warrants remained classified as liabilities. The fair value of the Series E preferred stock warrants was reclassified to stockholders’ equity on September 26, 2013, the date of the effectiveness of the Registration Statement and the filing of its Certificate of Incorporation in Delaware, when the Series E preferred stock and preferred stock warrants were converted into Class B common stock and warrants to purchase Class B common stock, respectively. The fair value of the Series E preferred stock warrants was measured at issuance using the Black-Scholes-Merton option pricing model with the following assumptions: (i) expected volatility of 60%, (ii) expected life of 10.0 years, (iii) risk free interest rate of 2.7%, (iv) dividend yield of 0.00%, and (v) fair value of Series E preferred stock of $12.86 per share. | |||||||||
The TriplePoint equipment loan and security agreement contain customary negative covenants that limit the Company’s ability to, among other things, incur additional indebtedness, grant liens, make investments, repurchase stock, pay dividends, transfer assets and merge or consolidate. The TriplePoint equipment loan and security agreement also contain customary affirmative covenants, including requirements to, among other things, deliver audited financial statements. The Company was in compliance with all covenants under its credit agreements with TriplePoint as of December 31, 2013. | |||||||||
Other Debt | |||||||||
In April 2012, the Company borrowed $1,500,000 to finance the purchase of software. The loan is required to be repaid in three equal installments of $500,000 due in April 2012, January 2013 and January 2014. | |||||||||
The Company’s outstanding balances under its debt agreements as of December 31, 2013 and 2012 were as follows (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
SVB loan and security agreement | $ | 29,111 | $ | 6,000 | |||||
TriplePoint growth capital loan agreement | — | 5,348 | |||||||
TriplePoint equipment loan agreement | 5,032 | 8,151 | |||||||
Other | 500 | 1,000 | |||||||
34,643 | 20,499 | ||||||||
Loan discounts | (416 | ) | (435 | ) | |||||
Net carrying value of debt | $ | 34,227 | $ | 20,064 | |||||
As of December 31, 2013, future principal payments are scheduled as follows (in thousands): | |||||||||
December 31, | |||||||||
2013 | |||||||||
Year ending December 31: | |||||||||
2014 | $ | 9,910 | |||||||
2015 | 16,920 | ||||||||
2016 | 3,750 | ||||||||
2017 | 3,750 | ||||||||
2018 | 313 | ||||||||
$ | 34,643 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingencies | ' | ||||||||
Note 5. Commitments and Contingencies | |||||||||
Leases | |||||||||
The Company leases facilities for office space under noncancelable operating leases for its U.S. and international locations and has entered into capital lease arrangements to obtain property and equipment for its operations. In addition, the Company leases space from third party datacenter hosting facilities under co-location agreements to support its cloud infrastructure. As of December 31, 2013, noncancelable leases expire on various dates between 2014 and 2017 and require the following future minimum lease payments by year (in thousands): | |||||||||
Capital | Operating | ||||||||
Leases | Leases | ||||||||
Year ending December 31: | |||||||||
2014 | $ | 388 | $ | 2,724 | |||||
2015 | 258 | 2,563 | |||||||
2016 | — | 1,311 | |||||||
2017 | — | 435 | |||||||
Total future minimum lease payments | 646 | $ | 7,033 | ||||||
Less: amount representing interest | (52 | ) | |||||||
Total capital lease obligation | 594 | ||||||||
Less: Current portion of capital lease obligation | (347 | ) | |||||||
Capital lease obligation | $ | 247 | |||||||
Property and equipment recorded under capital leases consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Total assets acquired under capital lease | $ | 2,317 | $ | 2,317 | |||||
Less: accumulated amortization | (1,693 | ) | (1,029 | ) | |||||
Leased property and equipment, net | $ | 624 | $ | 1,288 | |||||
Leases for certain office facilities include scheduled periods of abatement and escalation of rental payments. The Company recognizes rent expense on a straight-line basis for all operating lease arrangements with the difference between required lease payments and rent expense recorded as deferred rent. Total rent expense was $1,324,000, $1,261,000, and $533,000 for the fiscal years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Sales Tax Liability | |||||||||
During 2010 and 2011, the Company increased its sales and marketing activities in the U.S., which may be asserted by a number of states to create an obligation under nexus regulations to collect sales taxes on sales to customers in the state. Prior to 2012, the Company did not collect sales taxes from customers on sales in all states. In the second quarter of 2012, the Company commenced collecting and remitting sales taxes on sales in all states, therefore the loss contingency is applicable to sales and marketing activities in 2010, 2011 and the three months ended March 31, 2012. As of December 31, 2013 and 2012, the Company recorded a long-term sales tax liability of $3,988,000, and $3,877,000, respectively, based on its best estimate of the probable liability for the loss contingency incurred as of those dates. The Company’s estimate of a probable outcome under the loss contingency is based on analysis of its sales and marketing activities, revenues subject to sales tax, and applicable regulations in each state in each period. No significant adjustments to the long-term sales tax liability have been recognized in the accompanying consolidated financial statements for changes to the assumptions underlying the estimate. However, changes in management’s assumptions may occur in the future as the Company obtains new information which can result in adjustments to the recorded liability. Increases and decreases to the long-term sales tax liability are recorded as general and administrative expense. | |||||||||
A current sales tax liability for non-contingent amounts expected to be remitted in the next 12 months of $3,451,000 and $3,574,000 is included in accrued liabilities as of December 31, 2013 and 2012, respectively. | |||||||||
Legal Matters | |||||||||
The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using reasonably available information. The Company develops its views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. Legal fees are expensed in the period in which they are incurred. As of December 31, 2013, the Company did not have any accrued liabilities recorded for such loss contingencies. At December 31, 2012, the Company recorded accrued liabilities of $1,075,000, respectively, for the probable and estimable amount of all loss contingencies related to legal matters. | |||||||||
In June 2011, j2 Global, Inc. (“j2”), and Advanced Messaging Technologies, Inc. (“Advanced Messaging”), filed a joint complaint against the Company in the U.S. District Court for the Central District of California, Case No. 2:11-cv-04686-DDP-AJW, alleging infringement of U.S. Patent Nos. 6,208,638, 6,350,066, and 7,020,132, and seeking a permanent injunction, damages, and attorneys’ fees should judgment be found against the Company. On March 4, 2013, Advanced Messaging filed a second complaint against the Company in the U.S. District Court for the Central District of California, Case No. 2:13-CV-01526, alleging infringement of U.S. Patent No. 7,975,368. On April 26, 2013, the Company entered into a license and settlement agreement with j2 and one of its affiliates to settle the matters. Under the terms of the settlement, the parties granted each other certain patent cross-licenses for over 10 years and the parties have dismissed all claims in these matters with prejudice. | |||||||||
On December 21, 2012, CallWave Communications, LLC (“CallWave”), which the Company believes is a non-practicing entity, filed a lawsuit against us in the U.S. District Court for the District of Delaware, CallWave Communications, LLC v. RingCentral, Inc., Case No. 1:12-cv-01748-RGA alleging patent infringement by the Company and AT&T, a reseller of the Company’s products and services. CallWave has asserted similar claims against other companies, including Google Inc., AT&T Inc., AT&T Mobility LLC, Sprint Nextel Corp., T-Mobile US, Inc., Verizon Communications, Inc., Research in Motion Limited and Telovations, Inc. Since then, CallWave amended its complaint twice such that they asserted U.S. Patents Nos. 7,397,910 (the ‘910 patent), 7,555,110 (the ‘110 patent), 7,822,188 (the ‘188 patent), 8,325,901 (the ‘901 patent), 7,636,428 (the ‘428 patent), 8,351,591 (the ‘591 patent), 8,064,588 (the ‘588 patent), and 7,839,987 (the ‘987 patent) against the Company’s products and services and AT&T’s Office@Hand products and services, seeking damages but no injunction. On April 1, 2013, the Company filed an Answer and Counterclaims denying all claims by CallWave in its first amended complaint. On June 3, 2013, the Company filed an Answer and Counterclaims denying all claims by CallWave in its second amended complaint. In September 2013, the Company entered into a license and settlement agreement with CallWave to settle the matter. Under the terms of the settlement, CallWave granted the Company a non-exclusive license and agreed to dismiss all claims in these matters with prejudice, including any claims for which the Company was required to indemnify and defend AT&T. As part of the settlement, the Company agreed to pay CallWave cash consideration which it recognized as general and administrative expense during the second quarter as it determined the payment to be a cost to settle a loss contingency, and the amount was probable and estimable. During the third quarter of 2013, the Company paid substantially all of the cash consideration due under the settlement agreement. | |||||||||
On September 6, 2013, the Company received a letter from Capital Legal Group, LLC on behalf of Cronos Technologies LLC, which the Company believes is a non-practicing entity, asserting that the Company should consider engaging in licensing discussions regarding U.S. Patent No. 5,664,110 (the “Cronos patent”). In October 2013, the Company obtained non-exclusive rights to the Cronos patent through August 19, 2016. No complaint or other action has been filed, no specific demand for a license has been made, and the letter does not allege any infringement by the Company of the referenced patent. | |||||||||
Employee Agreements | |||||||||
The Company has signed various employment agreements with executives and key employees pursuant to which if the Company terminates their employment without cause or if the employee does so for good reason following a change of control of the Company, the employees are entitled to receive certain benefits, including severance payments, accelerated vesting of stock options and continued COBRA coverage. As of December 31, 2013, no triggering events which would cause these provisions to become effective have occurred. Therefore, no liabilities have been recorded for these agreements in the consolidated financial statements. | |||||||||
Stockolders_Equity
Stockolders' Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stockolders' Equity | ' | ||||||||||||||||
Note 6. Stockolders’ Equity | |||||||||||||||||
Change in Capital Structure | |||||||||||||||||
In connection with the IPO, the Company reincorporated in Delaware on September 26, 2013. The Delaware Certificate of Incorporation provides for two classes of common stock upon the effectiveness of the Company’s initial public offering (“IPO”): Class A and Class B common stock, both with a par value of $0.0001 per share. In addition, the certificate of incorporation authorizes shares of undesignated preferred stock with a par value of $0.0001 per share, the rights, preferences, and privileges of which may be designated from time to time by the Board of Directors. | |||||||||||||||||
Upon effectiveness of the Company’s registration statement on Form S-1 (the “Registration Statement”) and the filing of the Certificate of Incorporation in Delaware on September 26, 2013, all shares of the Company’s outstanding convertible preferred stock automatically converted into 30,368,527 shares of Class B common stock, and all shares of the Company’s outstanding common stock automatically converted into 23,316,877 shares of Class B common stock, resulting in 53,685,404 total shares of Class B common stock outstanding at September 26, 2013. | |||||||||||||||||
On October 2, 2013, the Company closed its IPO and sold 8,545,000 shares of Class A common stock, including the underwriters’ overallotment option of 1,125,000 shares of Class A common stock and an additional 80,000 shares of Class A common stock were sold by selling stockholders, all at a price of $13.00 per share to the public on the New York Stock Exchange (“NYSE”). Class B common stock is not registered with the SEC and not listed on the NYSE. As of December 31, 2013, there were 9,200,774 shares of Class A common stock and 53,043,295 shares of Class B common stock outstanding. | |||||||||||||||||
Preferred Stock | |||||||||||||||||
The Board of Directors may, without further action by the stockholders, fix the rights, preferences, privileges and restrictions of up to an aggregate of 100,000,000 shares of preferred stock in one or more series and authorize their issuance. These rights, preferences, and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of the Class A and Class B common stock. As of December 31, 2013, there were no shares of preferred stock authorized, issued or outstanding. | |||||||||||||||||
Convertible Preferred Stock | |||||||||||||||||
Convertible preferred stock authorized, issued and outstanding as of December 31, 2012 (in thousands) follows: | |||||||||||||||||
Shares | Shares issued | Net | Aggregate | ||||||||||||||
authorized | and | proceeds | liquidation | ||||||||||||||
outstanding | preference | ||||||||||||||||
Series A | 16,847 | 16,847 | $ | 12,064 | $ | 12,164 | |||||||||||
Series B | 5,729 | 5,657 | 11,790 | 11,868 | |||||||||||||
Series C | 3,289 | 3,031 | 9,870 | 10,000 | |||||||||||||
Series D | 2,300 | 1,737 | 10,385 | 10,464 | |||||||||||||
Series E | 4,129 | 3,097 | 29,911 | 30,000 | |||||||||||||
32,294 | 30,369 | $ | 74,020 | $ | 74,496 | ||||||||||||
On September 26, 2013, all outstanding shares of convertible preferred stock converted in the aggregate into 30,368,527 shares of Class B common stock. | |||||||||||||||||
Class A and Class B Common Stock | |||||||||||||||||
The Company has authorized 1,000,000,000 and 250,000,000 shares of Class A common stock and Class B common stock for issuance. Holders of our Class A common stock and Class B common stock have identical rights for matters submitted to a vote of our stockholders. Holders of Class A common stock are entitled to one vote per share of Class A common stock and holders of Class B common stock are entitled to 10 votes per share of Class B common stock. Holders of shares of Class A common stock and Class B common stock vote together as a single class on all matters (including the election of directors) except for specific circumstances that would adversely affect the powers, preferences or rights of a particular class of common stock. Subject to preferences that may apply to any shares of preferred stock outstanding at the time, holders of Class A and Class B common stock share equally, identically and ratably, on a per share basis, with respect to any dividend or distribution of cash, property or shares of the Company’s capital stock. Holders of Class A and Class B common stock also share equally, identically and ratably in all assets remaining after the payment of any liabilities and liquidation preferences and any accrued or declared but unpaid dividends, if any, with respect to any outstanding preferred stock at the time. Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. In addition, each share of Class B common stock will convert automatically to Class A common stock upon: (i) the date specified by an affirmative vote or written consent of holders of at least 67% of the outstanding shares of Class B common stock, or (ii) the seven year anniversary of the closing date of the IPO (October 2, 2020). | |||||||||||||||||
Shares of Class A common stock reserved for future issuance were as follows (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
Preferred stock | 100,000 | ||||||||||||||||
Class B common stock | 53,043 | ||||||||||||||||
Common stock warrants | 502 | ||||||||||||||||
2013 Employee stock purchase plan | 1,250 | ||||||||||||||||
2013 Equity incentive plan: | |||||||||||||||||
Outstanding options and restricted stock unit awards | 11,224 | ||||||||||||||||
Available for future grants | 6,014 | ||||||||||||||||
172,033 | |||||||||||||||||
As of December 31, 2013 and 2012, there were 37,075 and 100,193 shares of common stock outstanding related to the early exercise of nonvested options subject to repurchase by the Company upon termination of service by an employee. | |||||||||||||||||
Warrants | |||||||||||||||||
The Company has issued common stock warrants to consultants for services and preferred stock warrants to lenders in connection with its debt agreements. Upon effectiveness of the Company’s Registration Statement and the filing of its Certificate of Incorporation in Delaware on September 26, 2013, all outstanding preferred stock warrants automatically converted to Class B common stock warrants. As of December 31, 2013, outstanding warrants to purchase shares of Class B common stock were as follows(number of warrant shares in thousands): | |||||||||||||||||
Class of shares | Number of | Weighted- | Weighted- | ||||||||||||||
Warrant | Average | Average | |||||||||||||||
Shares | Exercise price | Contractual | |||||||||||||||
Outstanding | Per Share | Term | |||||||||||||||
and | (in Years) | ||||||||||||||||
Exercisable | |||||||||||||||||
Common stock | 502 | $ | 5.05 | 5.9 | |||||||||||||
In connection with amendments to its loan agreements with SVB and TriplePoint in August 2013, the Company issued SVB a warrant to purchase 90,324 shares of Series E preferred stock (the “2013 SVB Series E warrants”) and issued TriplePoint a warrant to purchase 51,614 shares of Series E preferred stock (the “2013 TriplePoint Series E warrants”). As the 2013 SVB Series E warrants were issued in connection with a loan and had a fixed exercise price of $9.68 per share, the proceeds were allocated to the loan and the warrants based on the relative fair value of the instruments resulting in a loan discount of $866,000 being recorded, with a corresponding increase to additional paid in capital as part of stockholders’ equity. See Note 4 for assumptions used in Black-Scholes-Merton option pricing model to fair value the 2013 SVB Series E warrants at issuance. | |||||||||||||||||
The 2013 TriplePoint Series E warrants were issued with an exercise price equal to the lower of: (i) $9.68 or (ii) lowest price per share in the next round of equity financing. As the 2013 TriplePoint Series E warrants were issued in connection with a loan, the proceeds were allocated to the loan and the warrants based on the relative fair value of the instruments resulting in a loan discount of $495,000 being recorded. As a result of the exercise price adjustment feature, the 2013 TriplePoint Series E warrants were not indexed to the Company’s stock and were classified as liabilities on the date of issuance. The exercise price adjustment feature for the 2013TriplePoint Series E warrants expired upon the effectiveness of the Registration Statement and the filing of the Company’s Certificate of Incorporation in Delaware (September 26, 2013). Upon the expiration of the exercise price adjustment feature, the 2013TriplePoint Series E warrants became indexed to the Company’s stock and were reclassified as stockholders’ equity. The 2013 TriplePoint Series E warrants were recorded at fair value for the period the warrants were classified as liabilities with changes in fair value recognized in other income and expense. The fair value of the 2013 TriplePoint Series E warrants was reclassified to stockholders’ equity on September 26, 2013 when the Series E preferred stock and preferred stock warrants were converted into Class B common stock and warrants to purchase Class B common stock, respectively. The fair value of the 2013 TriplePoint Series E warrants was measured during the period outstanding through the reclassification date using the Black-Scholes-Merton option pricing model with the following assumptions: | |||||||||||||||||
Expected volatility | 58%-60% | ||||||||||||||||
Expected life in years | 9.9-10.0 | ||||||||||||||||
Risk free interest rate | 2.64%-2.71% | ||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||
In connection with the $4,000,000 growth capital part II loan draw from TriplePoint in June 2013, the Company issued TriplePoint a warrant to purchase 33,192 shares of Series D preferred stock with the exercise price set at the lower of: (i) $6.03 per share or (ii) the lowest price per share in the next round of equity financing (the “2013 TriplePoint Series D warrants”). As the 2013 TriplePoint Series D warrants were issued in connection with a loan, the proceeds were allocated to the loan and the warrants based on the relative fair value of the instruments resulting in a loan discount of $265,000 being recorded. As a result of the exercise price adjustment feature, the 2013 TriplePoint Series D warrants were not indexed to the Company’s stock and were classified as liabilities on the date of issuance. The exercise price adjustment feature for the 2013TriplePoint Series D warrants expired upon the effectiveness of the Registration Statement and the filing of the Company’s Certificate of Incorporation in Delaware (September 26, 2013). Upon the expiration of the exercise price adjustment feature, the 2013TriplePoint Series D warrants became indexed to the Company’s stock and were reclassified as stockholders’ equity. The 2013TriplePoint Series D warrants were recorded at fair value for the period the warrants were classified as liabilities with changes in fair value recognized in other income and expense. The fair value of the 2013TriplePoint Series D warrants was reclassified to stockholders’ equity on September 26, 2013 when the Series D preferred stock and preferred stock warrants were converted into Class B common stock and warrants to purchase Class B common stock, respectively. The fair value of the 2013TriplePoint Series D warrants was measured during the period outstanding through the reclassification date using the Black-Scholes-Merton option pricing model with the following assumptions: : | |||||||||||||||||
Expected volatility | 55%-58% | ||||||||||||||||
Expected life in years | 6.8-7.0 | ||||||||||||||||
Risk free interest rate | 1.91%-2.64% | ||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||
In connection with the execution of the TriplePoint credit facility and the growth capital part I and equipment loan draws, warrants to purchase 106,975 shares of Series D preferred stock were issued to TriplePoint in June and August 2012 (the “2012 Series D warrants”), with an exercise price equal to the lower of: (i) $6.03 or (ii) lowest price per share in the next round of equity financing. As a result of the exercise price adjustment feature, the 2012 Series D warrants were not indexed to the Company’s stock and were classified as liabilities on the date of issuance. The exercise price adjustment feature for the 2012 Series D warrants expired with the issuance of Series E preferred stock in November 2012. Upon the expiration of the exercise price adjustment feature, the 2012 Series D warrants became indexed to the Company’s stock and were reclassified as stockholders’ equity. The 2012 Series D warrants were recorded at fair value for the period the warrants were classified as liabilities with changes in fair value recognized in other income and expense. The fair value of the 2012 Series D warrants was measured during the period outstanding through the reclassification date using the Black-Scholes-Merton option pricing model with the following assumptions: | |||||||||||||||||
Expected volatility | 56%-65% | ||||||||||||||||
Expected life in years | 6.5-7.0 | ||||||||||||||||
Risk free interest rate | 1.06%-1.15% | ||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
Note 7. Share-Based Compensation | |||||||||||||||||
A summary of share-based compensation expense recognized in the Company’s consolidated statements of operations follows (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of services revenues | $ | 539 | $ | 235 | $ | 141 | |||||||||||
Research and development | 1,495 | 837 | 260 | ||||||||||||||
Sales and marketing | 1,313 | 651 | 297 | ||||||||||||||
General and administrative | 4,193 | 1,379 | 490 | ||||||||||||||
Total share-based compensation expense | $ | 7,540 | $ | 3,102 | $ | 1,188 | |||||||||||
A summary of share-based compensation expense by award type follows (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Options | $ | 7,069 | $ | 3,102 | $ | 1,188 | |||||||||||
Employee stock purchase plan rights | 453 | — | — | ||||||||||||||
Restricted stock units | 18 | — | — | ||||||||||||||
Total share-based compensation expense | $ | 7,540 | $ | 3,102 | $ | 1,188 | |||||||||||
Equity Incentive Plans | |||||||||||||||||
In September 2013, the Board adopted and the Company’s stockholders approved the 2013 Equity Incentive Plan (the “2013 Plan”). The 2013 Plan became effective on September 26, 2013. In connection with the adoption of the 2013 Plan, the Company terminated the 2010 Equity Incentive Plan (the “2010 Plan”), under which stock options had been granted prior to September 26, 2013. The 2010 Plan was established in September 2010, when the 2003 Equity Incentive Plan (the “2003 Plan”) was terminated. After the termination of the 2003 and 2010 Plans, no additional options were granted under these plans; however options previously granted will continue to be governed by these plans, and will be exercisable into shares of Class B common stock. In addition, options authorized to be granted under the 2003 and 2010 Plans, including forfeitures of previously granted awards are authorized for grant under the 2013 Plan. A total of 6,200,000 shares of Class A common stock have been reserved for issuance under the 2013 Plan. The 2013 Plan includes an annual increase on the first day of each fiscal year beginning in 2014, equal to the least of: (i) 6,200,000 shares of Class A common stock; (ii) 5.0% of the outstanding shares of all classes of common stock as of the last day of the Company’s immediately preceding fiscal year; or (iii) such other amount as the board of directors may determine. | |||||||||||||||||
The plans permit the grant of stock options and other share-based awards, such as restricted stock units to employees, officers, directors and consultants by the Company’s board of directors. Option awards are generally granted with an exercise price equal to the fair market value of the Company’s common stock as determined by the Company’s board of directors at the date of grant. Option awards generally vest according to a graded vesting schedule based on four years of continuous service and generally have a 10-year contractual term. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the option agreement) and early exercise of the option prior to vesting (subject to the Company’s repurchase right). As of December 31, 2013 a total of 6,014,000 shares remain available for grant under the 2013 Plan. | |||||||||||||||||
A summary of option activity under all of the plans at December 31, 2013 and changes during the periods then ended is presented in the following table: | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Outstanding | Exercise Price | Contractual | Value | ||||||||||||||
(in thousands) | Per Share | Term | (in thousands) | ||||||||||||||
(in Years) | |||||||||||||||||
Outstanding at December 31, 2011 | 5,621 | $ | 1.14 | 7.8 | $ | 8,917 | |||||||||||
Granted | 4,369 | 4.91 | |||||||||||||||
Exercised | (484 | ) | 1.15 | ||||||||||||||
Canceled/Forfeited | (897 | ) | 2.18 | ||||||||||||||
Outstanding at December 31, 2012 | 8,609 | 2.89 | 7.2 | $ | 40,705 | ||||||||||||
Granted | 3,856 | $ | 11.54 | ||||||||||||||
Exercised | (607 | ) | 1.47 | ||||||||||||||
Canceled/Forfeited | (702 | ) | 4.31 | ||||||||||||||
Outstanding at December 31, 2013 | 11,156 | $ | 5.87 | 7.7 | $ | 139,484 | |||||||||||
Vested and expected to vest as of December 31, 2013 | 10,346 | $ | 5.56 | 7.6 | $ | 132,578 | |||||||||||
Exercisable as of December 31, 2013 | 5,023 | $ | 2.37 | 6.1 | $ | 80,378 | |||||||||||
The weighted average grant date fair value of options granted and the total intrinsic value of options exercised were as follows (in thousands, except weighted average grant date fair value): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Weighted average grant date fair value per share | $ | 6.19 | $ | 3.07 | $ | 1.18 | |||||||||||
Total intrinsic value of options exercised | $ | 10,261 | $ | 3,134 | $ | 2,035 | |||||||||||
Early Exercises of Nonvested Options | |||||||||||||||||
The Company’s option agreements with certain employees permit the early exercise of nonvested stock options. The Company has the right to repurchase issued but nonvested shares of common stock at the original exercise price following the termination of service. The shares are released from the repurchase right according to the vesting schedule specified in the option agreement. The Company treats the proceeds from early exercise as a deposit of the exercise price and records the cash received initially as a liability that is reclassified to stockholders’ equity as the shares vest. A summary of the status of the Company’s nonvested shares as of December 31, 2013 and 2012, and changes during the periods then ended is presented below (in thousands): | |||||||||||||||||
Number of | Nonvested | ||||||||||||||||
Shares | Common Stock | ||||||||||||||||
Liability | |||||||||||||||||
Nonvested as of December 31, 2011 | 58 | $ | 64 | ||||||||||||||
Early exercises | 100 | 200 | |||||||||||||||
Vested | (58 | ) | (60 | ) | |||||||||||||
Nonvested as of December 31, 2012 | 100 | 204 | |||||||||||||||
Early exercises | — | — | |||||||||||||||
Vested | (63 | ) | (117 | ) | |||||||||||||
Nonvested as of December 31, 2013 | 37 | $ | 87 | ||||||||||||||
Valuation Assumptions | |||||||||||||||||
The Company estimated the fair values of each option awarded on the date of grant using the Black-Scholes-Merton option pricing model, which requires inputs including the fair value of common stock, expected term, expected volatility, risk-free interest and dividend yield. | |||||||||||||||||
Fair Value of Common Stock | |||||||||||||||||
Given the absence of a public trading market prior to the IPO, the Company’s board of directors considered numerous objective and subjective factors to determine the fair value of common stock at each meeting at which awards were approved. These factors included, but were not limited to: (i) contemporaneous valuations of common stock performed by an unrelated valuation specialist; (ii) developments in the Company’s business and stage of development; (iii) the Company’s operational and financial performance and condition; (iv) issuances of preferred stock and the rights and preferences of preferred stock relative to common stock; (v) current condition of capital markets and the likelihood of achieving a liquidity event, such as an initial public offering or sale of the Company; and (vi) the lack of marketability of common stock. For financial reporting purposes, the Company also considered contemporaneous valuations of common stock prepared for dates subsequent to the grant date. For certain option grants in 2012 and 2013 that occurred on an interim date between valuation dates, the fair value of common stock used in the option pricing model to measure share-based compensation for the period exceeded the exercise price. Since the IPO, the Company used the daily closing stock price on the New York Stock Exchange on the date of grant as the fair value of the common stock. | |||||||||||||||||
Expected Term | |||||||||||||||||
The expected term represents the period that share-based awards are expected to be outstanding. Since the Company did not have sufficient historical information to develop reasonable expectations about future exercise behavior, the expected term for options issued to employees was calculated as the mean of the option vesting period and the contractual term. The expected term for options issued to non-employees was the contractual term. | |||||||||||||||||
Expected Volatility | |||||||||||||||||
The expected stock price volatility of common stock was derived from the historical volatilities of a peer group of similar publicly traded companies over a period that approximates the expected term of the option. | |||||||||||||||||
Risk-Free Interest Rate | |||||||||||||||||
The risk-free interest rate was based on the yield available on U.S. Treasury zero-coupon issues with a term that approximates the expected term of the option. | |||||||||||||||||
Expected Dividends | |||||||||||||||||
The expected dividend yield was 0% as the Company has not paid, and does not expect to pay, cash dividends. | |||||||||||||||||
The weighted-average assumptions used in the option pricing models and the resulting grant date fair value of stock options granted in the periods presented were as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected term for employees (in years) | 6.1 | 6.1 | 6.2 | ||||||||||||||
Expected term for non-employees (in years) | 10 | 10 | 10 | ||||||||||||||
Expected volatility | 54 | % | 61 | % | 67 | % | |||||||||||
Risk-free interest | 1.68 | % | 0.97 | % | 2.08 | % | |||||||||||
Expected dividends | — | — | — | ||||||||||||||
Grant date fair value of employee options | $ | 6.19 | $ | 3.07 | $ | 1.18 | |||||||||||
As of December 31, 2013 and 2012 there was approximately $22,439,000 and $9,587,000 of unrecognized share-based compensation expense, net of estimated forfeitures, related to stock option grants, which will be recognized on a straight-line basis over the remaining weighted-average vesting periods of approximately 3.0 years and 2.7 years, respectively. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
In September 2013, the Board adopted, and the Company’s stockholder approved a 2013 Employee Stock Purchase Plan (ESPP). The ESPP became effective on September 26, 2013. A total of 1,250,000 shares of Class A common stock have been reserved for issuance under the ESPP. The ESPP provides for annual increases in the number of shares available for issuance under the ESPP on the first day of each fiscal year beginning in fiscal 2014, equal to the least of: (i) 1% of the outstanding shares of all classes of common stock on the last day of the immediately preceding year; (ii) 1,250,000 shares; or (iii) such other amount as may be determined by the board of directors. | |||||||||||||||||
The ESPP allows eligible employees to purchase shares of the Class A common stock at a discount through payroll deductions of up to the lesser of 15% of their eligible compensation or $25,000 per calendar year, at not less than 90% of the fair market value, as defined in the ESPP, subject to any plan limitations. A participant may purchase a maximum of 3,000 shares during an offering period. The offering period generally starts on the first trading day on or after May 11th and November 11th of each year, except that the first offering period commenced on the first trading day following the effective date of the Company’s registration statement. At the end of the offering period, the purchase price is set at the lower of: (i) the fair value of the Company’s common stock at the beginning of the six month offering period, and (ii) the fair value of the Company’s common stock at the end of the six month offering period. At December 31, 2013, a total of 1,250,000 shares were available for issuance under the ESPP. | |||||||||||||||||
The assumptions used to value employee stock purchase plan rights under the Black-Scholes-Merton model during the twelve months ended December 31, 2013 were as follows: | |||||||||||||||||
Expected term (in months) | 7 | ||||||||||||||||
Risk-free interest rate | 0.07 | % | |||||||||||||||
Expected volatility | 40 | % | |||||||||||||||
Expected dividend rate | — | % | |||||||||||||||
As of December 31, 2013, there was approximately $728,000 of unrecognized share-based compensation expense related to outstanding employee stock purchase plan rights under the 2013 ESPP, which will be recognized on a straight-line basis over the remaining weighted average vesting period of approximately 0.4 years. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
The 2013 Plan provides for the issuance of restricted stock units to employees. Restricted stock units issued under the 2013 Plan generally vest over four years. During the year ended December 31, 2013, we issued 68,100 restricted stock units of Class B common stock under the 2013 Plan with a weighted average grant date fair value of $17.22 per share. | |||||||||||||||||
As of December 31, 2013, there was a total of $890,000 of unrecognized share-based compensation expense, net of estimated forfeitures, related to restricted stock units, which will be recognized on a straight-line basis over the remaining weighted-average vesting period of approximately 3.8 years. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
Note 8. Income Taxes | |||||||||||||
The provision (benefit) for income taxes consisted of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | 28 | $ | — | |||||||
State | 3 | 9 | 5 | ||||||||||
Foreign | (32 | ) | 111 | 10 | |||||||||
Total current | (29 | ) | 148 | 15 | |||||||||
Deferred: | |||||||||||||
Foreign | (16 | ) | (56 | ) | — | ||||||||
Total income tax expense | $ | (45 | ) | $ | 92 | $ | 15 | ||||||
Net loss before provision (benefit) for income taxes consisted of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | (41,778 | ) | $ | (33,883 | ) | $ | (13,292 | ) | ||||
International | (4,365 | ) | (1,415 | ) | (596 | ) | |||||||
Total net loss before provision (benefit) for income taxes | $ | (46,143 | ) | $ | (35,298 | ) | $ | (13,888 | ) | ||||
The provision (benefit) for income tax differed from the amounts computed by applying the U.S. federal income tax rate of 35% to pretax loss as a result of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal tax benefit at statutory rate | $ | (15,687 | ) | $ | (12,002 | ) | $ | (4,722 | ) | ||||
State tax, net of federal benefit | 2 | 6 | 3 | ||||||||||
Share-based compensation | 641 | 534 | 385 | ||||||||||
Other permanent differences | 294 | 171 | (141 | ) | |||||||||
Foreign tax rate differential | (20 | ) | (253 | ) | (212 | ) | |||||||
Net operating losses not recognized | 14,725 | 11,636 | 4,702 | ||||||||||
Total income tax provision (benefit) | $ | (45 | ) | $ | 92 | $ | 15 | ||||||
Undistributed earnings of foreign subsidiaries are immaterial for all periods presented. | |||||||||||||
The types of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss and credit carry-forwards | $ | 35,904 | $ | 24,554 | |||||||||
Research and development credits | 2,353 | 895 | |||||||||||
Sales tax liability | 1,418 | 1,385 | |||||||||||
Share-based compensation | 2,247 | — | |||||||||||
Accrued liabilities | 2,528 | 2,704 | |||||||||||
Gross deferred tax assets | 44,450 | 29,538 | |||||||||||
Valuation allowance | (44,032 | ) | (28,847 | ) | |||||||||
Total deferred tax assets | 418 | 691 | |||||||||||
Deferred tax liabilities—Property and equipment | (327 | ) | (616 | ) | |||||||||
Net deferred tax assets | $ | 91 | $ | 75 | |||||||||
At December 31, 2013, the Company had net operating loss carry-forwards for federal and state income tax purposes of approximately $94,749,000 and $77,941,000, respectively, available to reduce future income subject to income taxes. The federal and state net operating loss carry-forwards will begin to expire in 2023 and 2014, respectively. The Company also has research credit carry-forwards for federal and California tax purposes of approximately $1,879,000 and $1,851,000, respectively, available to reduce future income subject to income taxes. The federal research credit carry-forwards will begin to expire in 2028 and the California research credits carry forward indefinitely. As of December 31, 2012, we had federal and state net operating loss carry-forwards of $61,914,000 and $60,410,000, respectively, and federal and state research and development tax credit carry-forwards in the amount of $490,000 and $1,020,000, respectively. The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of net operating losses in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use net operating losses may be limited as prescribed under Internal Revenue Code Section 382 (“IRC Section 382”). Events which may cause limitations in the amount of the net operating losses that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. In the event the Company had subsequent changes in ownership, net operating losses and research and development credit carry-overs, which are reserved by the full deferred tax asset valuation allowance, could be limited and may expire unutilized. | |||||||||||||
The Company’s management believes that, based on a number of factors, it is more likely than not, that all or some portion of the deferred tax assets will not be realized; and accordingly, for the year ended December 31, 2013, the Company has provided a valuation allowance against the Company’s U.S. net deferred tax assets. The net change in the valuation allowance for the years ended December 31, 2013, 2012 and 2011 was an increase of $15,185,000, $12,336,000 and $5,351,000, respectively. | |||||||||||||
The Company has adopted the accounting policy that interest and penalties recognized are classified as part of its income taxes. The following shows the changes in the gross amount of unrecognized tax benefits as of December 31, 2013 (in thousands): | |||||||||||||
Balance as of December 31, 2011 | $ | 230 | |||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions taken in current year | 133 | ||||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions taken in prior year | 12 | ||||||||||||
Balance as of December 31, 2012 | 375 | ||||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions taken in current year | 168 | ||||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions taken in prior year | 390 | ||||||||||||
Balance as of December 31, 2013 | $ | 933 | |||||||||||
The Company does not anticipate that its total unrecognized tax benefits will significantly change due to settlement of examination or the expiration of statute of limitations during the next 12 months. | |||||||||||||
The Company files U.S. and foreign income tax returns with varying statutes of limitations. Due to the Company’s net carry-over of unused operating losses, all years from 2003 forward remain subject to future examination by tax authorities. |
Basic_and_Diluted_Net_Loss_Per
Basic and Diluted Net Loss Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Basic and Diluted Net Loss Per Share | ' | ||||||||||||
Note 9. Basic and Diluted Net Loss Per Share | |||||||||||||
Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including the Company’s convertible preferred stock, outstanding stock options, outstanding warrants, stock related to the nonvested early exercised stock options and stock related to nonvested restricted stock awards to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following table sets forth the computation of the Company’s basic and diluted net loss per share during the years ended December 31, 2013, 2012 and 2011 (in thousands, except per share data): | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net loss | $ | (46,098 | ) | $ | (35,390 | ) | $ | (13,903 | ) | ||||
Denominator: | |||||||||||||
Weighted-average common shares for basic and diluted net loss per share | 33,155 | 22,353 | 21,678 | ||||||||||
Basic and diluted net loss per share | $ | (1.39 | ) | $ | (1.58 | ) | $ | (0.64 | ) | ||||
Following is a table summarizing the potentially dilutive common shares that were excluded from diluted weighted-average common shares outstanding (in thousands): | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Shares of common stock issuable upon conversion | — | 30,369 | 27,272 | ||||||||||
of preferred stock | |||||||||||||
Shares of common stock issuable upon conversion of warrants | 502 | 337 | 181 | ||||||||||
Shares of common stock subject to repurchase | 37 | 100 | 58 | ||||||||||
Shares of common stock issuable under equity incentive plans outstanding | 11,224 | 8,609 | 5,621 | ||||||||||
Potential common shares excluded from diluted net loss | 11,763 | 39,415 | 33,132 | ||||||||||
per share | |||||||||||||
Geographic_Concentrations
Geographic Concentrations | 12 Months Ended |
Dec. 31, 2013 | |
Geographic Concentrations | ' |
Note 10. Geographic Concentrations | |
Revenues by geographic location are based on the billing address of the customer. More than 90% of the Company’s revenues are from the United States for fiscal years ended December 31, 2013, 2012 and 2011. No other individual country exceeded 10% of total revenues for fiscal years ended December 31, 2013, 2012 and 2011. Property and equipment by geographic location is based on the location of the legal entity that owns the asset. At December 31, 2013 and 2012, more than 84% of the Company’s property and equipment is located in the United States. No other individual country exceeded 10% of total property and equipment at December 31, 2013 and 2012. |
401_k_Plan
401 (k) Plan | 12 Months Ended |
Dec. 31, 2013 | |
401 (k) Plan | ' |
Note 11. 401(k) Plan | |
The Company has a qualified defined contribution plan under Section 401(k) of the Internal Revenue Code covering eligible employees. The Company did not make any matching contributions to this plan in the periods presented. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||||||||||||||||||
Note 12. Selected Quarterly Financial Data (unaudited) | |||||||||||||||||||||||||||||||||
The following tables set forth selected unaudited quarterly consolidated statements of operations data for each of the eight quarters in the years ended December 31, 2013 and 2012 (in thousands except per share data): | |||||||||||||||||||||||||||||||||
Quarter ended | |||||||||||||||||||||||||||||||||
Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | Mar 31, | ||||||||||||||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | ||||||||||||||||||||||||||
Consolidated Statements of Operations Data: | |||||||||||||||||||||||||||||||||
Revenues | $ | 45,342 | $ | 41,934 | $ | 37,704 | $ | 35,525 | $ | 33,125 | $ | 29,588 | $ | 27,005 | $ | 24,808 | |||||||||||||||||
Gross profit | 28,190 | 25,966 | 23,042 | 21,788 | 20,755 | 18,356 | 15,943 | 14,569 | |||||||||||||||||||||||||
Operating loss | (10,355 | ) | (8,151 | ) | (13,119 | ) | (9,408 | ) | (6,341 | ) | (9,038 | ) | (8,725 | ) | (9,723 | ) | |||||||||||||||||
Net loss(1) | (13,365 | ) | (8,852 | ) | (13,619 | ) | (10,262 | ) | (7,083 | ) | (9,568 | ) | (9,010 | ) | (9,729 | ) | |||||||||||||||||
Net loss per share, basic and diluted | $ | (0.22 | ) | $ | (0.36 | ) | $ | (0.60 | ) | $ | (0.45 | ) | $ | (0.31 | ) | $ | (0.43 | ) | $ | (0.40 | ) | $ | (0.44 | ) | |||||||||
-1 | In the fourth quarter of 2013, in connection with a debt refinancing transaction, the Company recorded a loss on early extinguishment of debt, which was classified in interest expense. Refer to Note 4 for additional details. |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Initial Public Offering | ' | |||||||||||||||||
Initial Public Offering | ||||||||||||||||||
On October 2, 2013, the Company closed its initial public offering (“IPO”) and sold 8,545,000 shares of Class A common stock to the public, including the underwriters’ overallotment option of 1,125,000 shares of Class A common stock and an additional 80,000 shares of Class A common stock were sold by selling stockholders, all at a price of $13.00 per share. The Company received aggregate proceeds of $103,309,000 from the IPO, net of underwriters’ discounts and commissions, but before deduction of offering expenses of approximately $4,032,000. | ||||||||||||||||||
Basis of Presentation and Liquidity | ' | |||||||||||||||||
Basis of Presentation and Liquidity | ||||||||||||||||||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All intercompany accounts and transactions have been eliminated. As the Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (“the JOBS Act”), the Company can delay the adoption of new accounting standards until those standards would otherwise apply to privately held companies. However, the Company has elected to comply with all new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth publicly held companies. Under the JOBS Act, such election is irrevocable. | ||||||||||||||||||
The Company has funded its operations through proceeds from its IPO, preferred stock financings, sales to customers and debt financing under its credit agreements. However, the Company has historically incurred losses and negative cash flows from operations. As of December 31, 2013, the Company had an accumulated deficit of $129,755,000. Management of the Company expects that operating losses and negative cash flows from operations will continue through at least December 31, 2014. | ||||||||||||||||||
The Company’s existing sources of liquidity include cash and cash equivalents of $116,378,000 as of December 31, 2013. While management believes that the Company’s existing sources of liquidity are adequate to fund operations through at least December 31, 2014, the Company may need to raise additional debt or equity financing to fund operations until it generates positive cash flows from profitable operations. There can be no assurance that such additional debt or equity financing will be available on terms acceptable to the Company or at all. | ||||||||||||||||||
Use of Estimates | ' | |||||||||||||||||
Use of Estimates | ||||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The significant estimates made by management affect revenues, accounts receivable, the allowance for doubtful accounts, inventory and inventory reserves, share-based compensation, deferred revenue, return reserves, provision for income taxes, uncertain tax positions, loss contingencies, sales tax liabilities and accrued liabilities. Management periodically evaluates such estimates and they are adjusted prospectively based upon such periodic evaluation. Actual results could differ from those estimates. | ||||||||||||||||||
Foreign Currency | ' | |||||||||||||||||
Foreign Currency | ||||||||||||||||||
The functional currency of the Company’s foreign subsidiaries is generally the local currency. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are recorded as part of a separate component of stockholders’ equity and reported in the statement of comprehensive loss. All assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at the average exchange rate during the period. Foreign currency transaction gains and losses are included in other income (expense) for the period. | ||||||||||||||||||
Cash and Cash Equivalents | ' | |||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||
The Company considers highly liquid instruments with a remaining maturity of three months or less at the date of purchase to be cash equivalents. The Company’s cash equivalents consist of money market funds. The Company deposits cash and cash equivalents with financial institutions that management believes are of high credit quality. Cash equivalents are stated at cost plus accrued interest, which approximates fair value. | ||||||||||||||||||
Allowance for Doubtful Accounts | ' | |||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||||
For all periods presented, a significant portion of revenues were realized from credit card transactions with only a small portion of revenues generating accounts receivable and the Company has not experienced any significant defaults on its accounts receivable. The Company determines provisions based on historical experience and upon a specific review of customer receivables. | ||||||||||||||||||
Below is a summary of the changes in allowance for doubtful accounts for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||
Balance at | Provision, net | Write-offs | Balance at | |||||||||||||||
Beginning of | of Recoveries | End of | ||||||||||||||||
Period | Period | |||||||||||||||||
Year ended December 31, 2011 | $ | — | $ | 5 | $ | — | $ | 5 | ||||||||||
Year ended December 31, 2012 | 5 | 428 | — | 433 | ||||||||||||||
Year ended December 31, 2013 | 433 | (8 | ) | 286 | 139 | |||||||||||||
Inventory | ' | |||||||||||||||||
Inventory | ||||||||||||||||||
The Company’s inventory consists primarily of telephones and peripheral equipment held at third parties. Inventory is stated at the lower of cost computed on a first-in, first-out basis, or market value. Inventory write-downs are recorded when the cost of inventory exceeds its net realizable value and establishes a new cost basis for the inventory. On a quarterly and annual basis, the Company analyzes inventory on a part by part basis in comparison to forecasted demand to identify potential excess and obsolescence issues, and adjusts carrying amounts to estimated net realizable value accordingly. | ||||||||||||||||||
Internal-Use Software Development Costs | ' | |||||||||||||||||
Internal-Use Software Development Costs | ||||||||||||||||||
The Company capitalizes qualifying internal-use software development costs that are incurred during the application development stage, provided that management with the relevant authority authorizes and commits to the funding of the project and it is probable the project will be completed and the software will be used to perform the function intended. Costs related to preliminary project activities and post implementation operation activities are expensed as incurred. Capitalized internal-use software development costs are included in property and equipment and are amortized on a straight-line basis to cost of revenues when the underlying project is ready for its intended use. For the years ended December 31, 2013 and 2012, the Company capitalized $1,317,000 and $1,480,000 of internal-use software development costs incurred, respectively. | ||||||||||||||||||
Property and Equipment, Net | ' | |||||||||||||||||
Property and Equipment, Net | ||||||||||||||||||
Property and equipment, net is stated at cost, less accumulated depreciation and amortization, and is depreciated using the straight-line method over the estimated useful lives of the assets. Computer hardware and software, and furniture and fixtures are depreciated over three years; internal-use software development costs are amortized over useful lives ranging from three to four years; and leasehold improvements are depreciated over the respective lease term or useful life, whichever is shorter. Maintenance and repairs are charged to expense as incurred. | ||||||||||||||||||
The Company evaluates the recoverability of property and equipment for possible impairment whenever events or circumstances indicate that the carrying amount of such assets or asset groups may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows of the assets or asset groups are expected to generate. If such evaluation indicates that the carrying amount of the assets or asset groups is not recoverable, the carrying amount of such assets or asset groups is reduced to its estimated fair value. No impairment losses have been recognized in the fiscal years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||
Concentrations | ' | |||||||||||||||||
Concentrations | ||||||||||||||||||
Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company maintains its cash and cash equivalent balances, which may exceed federally insured limits, with financial institutions that management believes are financially sound and have minimal credit risk exposure. | ||||||||||||||||||
The Company’s accounts receivable are primarily derived from sales by resellers and to larger direct customers. The Company performs ongoing credit evaluations of its resellers and does not require collateral on accounts receivable. The Company maintains an allowance for doubtful accounts for estimated potential credit losses. At December 31, 2013 and 2012, customer A accounted for 68% and 54% of the Company’s total accounts receivable, respectively. For the years ended December 31, 2013, 2012, and 2011, no single customer accounted for greater than 10% of the Company’s total revenues. | ||||||||||||||||||
The Company purchased or contracted a significant portion of its software development efforts from third-party vendors located in Russia and the Ukraine during the years ended December 31, 2013, 2012 and 2011, respectively. A cessation of services provided by these vendors could result in a disruption to the Company’s research and development efforts. | ||||||||||||||||||
Revenue Recognition | ' | |||||||||||||||||
Revenue Recognition | ||||||||||||||||||
The Company’s revenues consist of services revenues and product revenues. The Company’s services revenues include all fees billed in connection with subscriptions to the Company’s RingCentral Office, RingCentral Professional and RingCentral Fax SaaS applications. These service fees include recurring fixed plan subscription fees, recurring administrative cost recovery fees, variable usage-based fees for blocks of additional minutes systematically purchased in advance of usage in excess of plan limits and one-time upfront fees. The Company provides its services pursuant to contractual arrangements that range in duration from one month to three years. The Company’s service fees are generally billed in advance directly to customer credit cards or via invoices issued to larger customers. The Company’s product revenues consists of sales of pre-configured office phones used in connection with the service and includes shipping and handling fees. | ||||||||||||||||||
The Company recognizes revenues when the following criteria are met: | ||||||||||||||||||
× | there is persuasive evidence of an arrangement; | |||||||||||||||||
× | the service is being provided to the customer or the product has been delivered; | |||||||||||||||||
× | the collection of the fees is reasonably assured; and | |||||||||||||||||
× | the amount of fees to be paid by the customer is fixed or determinable. | |||||||||||||||||
Revenues under service subscription plans are recognized as follows: | ||||||||||||||||||
× | fixed service plan subscription and administrative cost recovery fees are recognized on a straight-line basis over their respective contractual service terms; | |||||||||||||||||
× | fees for additional minutes of usage in excess of plan limits are recognized over the estimated usage period in a manner that approximates actual usage; and | |||||||||||||||||
× | one-time upfront fees are initially deferred and recognized on a straight-line basis over the estimated average customer life. | |||||||||||||||||
Product revenues are billed at the time the order is received and recognized when the product has been delivered to the customer. | ||||||||||||||||||
The Company enters into arrangements with multiple-deliverables that generally include services to be provided under the subscription plan and the sale of products used in connection with the Company’s services. The Company allocates the consideration to each deliverable in a multiple-deliverable arrangement based upon its relative selling prices. The Company determines the selling price using vendor-specific objective evidence (“VSOE”) for its service subscription plans and best estimated selling price (“BESP”) for its product offerings. Consideration allocated to each deliverable, limited to the amount not contingent on future performance, are then recognized to revenue when the basic revenue recognition criteria are met for the respective deliverable. | ||||||||||||||||||
The Company determines VSOE based on historical standalone sales to customers. In determining VSOE, the Company requires that a substantial majority of the selling prices fall within a reasonably narrow pricing range. VSOE exists for all of the Company’s service subscription plans. The Company uses BESP as the selling price for its product offerings because the Company is not able to determine VSOE of fair value from standalone sales or third-party evidence of selling price (“TPE”). The Company estimates BESP for a product by considering company-specific factors such as pricing objectives, direct product and other costs, bundling and discounting practices and contractually stated prices. | ||||||||||||||||||
A portion of the Company’s services revenues and product revenues are generated through sales by resellers. When the Company assumes a majority of the business risks associated with performance of the contractual obligations, it records these revenues at the gross amount paid by the customer with amounts retained by the resellers recognized as sales and marketing expense. The Company’s assumption of such business risks is evidenced when, among other things, it takes responsibility for delivery of the product or service, is involved in establishing pricing of the arrangement, assumes credit and inventory risk, and is the primary obligor in the arrangement. When a reseller assumes the majority of the business risks associated with the performance of the contractual obligations, the Company records the associated revenues at the net amount received from the reseller. The Company recognizes revenues from resellers when the following criteria are met: | ||||||||||||||||||
o | persuasive evidence of an arrangement exists through a contract with the customer; | |||||||||||||||||
o | the service is being provided to the customer or the product has been delivered; | |||||||||||||||||
o | the amount of fees to be paid by the customer is fixed or determinable; and | |||||||||||||||||
o | the collection of the fees is reasonably assured. | |||||||||||||||||
The Company’s deliverables sold through its reseller agreements consist of the Company’s services subscriptions and products. Service subscriptions sold through resellers are recognized on a straight-line basis over the period the underlying services are provided to the end customer. Products sold through resellers are shipped directly to the end customer and are recognized when title transfers to the end customer. Revenues from resellers have predominantly been recorded on a gross basis for all periods presented. | ||||||||||||||||||
The Company records reductions to revenues for estimated sales returns and customer credits at the time the related revenues are recognized. Sales returns and customer credits are estimated based on historical experience, current trends and expectations regarding future experience. | ||||||||||||||||||
Customer billings related to taxes imposed by and remitted to governmental authorities on revenue-producing transactions are reported on a net basis. When such remitted taxes exceed the amount billed to customers, the cost is included in general and administrative expenses. | ||||||||||||||||||
Amounts billed in excess of revenues recognized for the period are reported as deferred revenue on the consolidated balance sheet. The Company’s deferred revenue consists primarily of unearned revenue on annual and monthly service plans. | ||||||||||||||||||
Cost of Revenues | ' | |||||||||||||||||
Cost of Revenues | ||||||||||||||||||
Cost of services revenues primarily consists of costs of network capacity purchased from third-party telecommunications providers, network operations, costs to equip and maintain data centers, including co-location fees for the right to place the Company’s servers in data centers owned by third-parties, depreciation of the servers and equipment, along with related utilities and maintenance costs. Cost of services revenue also includes personnel costs associated with non-administrative customer care and support of the functionality of the Company’s platform and data center operations, including share-based compensation expenses and allocated costs of facilities and information technology. Cost of services revenues is expensed as incurred. | ||||||||||||||||||
Cost of product revenues is comprised primarily of the cost associated with purchased phones, shipping costs, as well as personnel costs for contractors and allocated costs of facilities and information technology related to the procurement, management and shipment of phones. Cost of product revenues is expensed in the period product is delivered to the customer. | ||||||||||||||||||
Share-Based Compensation | ' | |||||||||||||||||
Share-Based Compensation | ||||||||||||||||||
All share-based compensation granted to employees is measured as the grant date fair value of the award and recognized in the consolidated statement of operations over the requisite service period, which is generally the vesting period. The Company estimates the fair value of stock options using the Black-Scholes-Merton option pricing model. Compensation expense is recognized using the straight-line method net of estimated forfeitures. | ||||||||||||||||||
Compensation expense for stock options granted to non-employees is calculated using the Black-Scholes-Merton option pricing model and is recognized in the consolidated statement of operations over the service period. Compensation expense for non-employee stock options subject to vesting is revalued as of each reporting date until the stock options are vested. | ||||||||||||||||||
Research and Development | ' | |||||||||||||||||
Research and Development | ||||||||||||||||||
Research and development expenses consist primarily of third-party contractor costs, personnel costs, technology license expenses, and depreciation associated with research and development equipment. Research and development costs are expensed as incurred, except for internal-use software development costs that qualify for capitalization. | ||||||||||||||||||
Advertising Costs | ' | |||||||||||||||||
Advertising Costs | ||||||||||||||||||
Advertising costs, which include various forms of e-commerce such as search engine marketing, as well as more traditional forms of media advertising such as radio and billboards, are expensed as incurred and were $22,943,000, $21,915,000, and $13,046,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||
Commissions | ' | |||||||||||||||||
Commissions | ||||||||||||||||||
Commissions consist of variable compensation earned by sales personnel and third-party resellers. Sales commissions associated with the acquisition of a new customer contract are recognized as sales and marketing expense at the time the customer has entered into a binding agreement. | ||||||||||||||||||
Income Taxes | ' | |||||||||||||||||
Income Taxes | ||||||||||||||||||
The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. The Company records a valuation allowance to reduce its deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. As of December 31, 2013 and 2012, except for deferred tax assets associated with its subsidiary in China, the Company recorded a full valuation allowance against all other net deferred tax assets because of its history of operating losses. The Company classifies interest and penalties on unrecognized tax benefits as income tax expense. | ||||||||||||||||||
Segment Information | ' | |||||||||||||||||
Segment Information | ||||||||||||||||||
The Company has determined the chief executive officer is the chief operating decision maker. The Company’s chief executive officer reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. Accordingly, the Company has determined that it operates in a single reporting segment. | ||||||||||||||||||
Indemnification | ' | |||||||||||||||||
Indemnification | ||||||||||||||||||
Certain of the Company’s agreements with resellers and customers include provisions for indemnification against liabilities if its services infringe a third-party’s intellectual property rights. At least quarterly, the Company assesses the status of any significant matters and its potential financial statement exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount or the range of loss can be estimated, the Company accrues a liability for the estimated loss. The Company has not incurred any material costs as a result of such indemnification provisions and the Company has not accrued any liabilities related to such obligations in the consolidated financial statements as of December 31, 2013 or 2012. | ||||||||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||
In February 2013, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The new guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The Company has adopted this standard during the first quarter of 2013. The adoption of this standard expanded the consolidated financial statement footnote disclosures, however there were no amounts reclassified out of accumulated other comprehensive income in any period presented. | ||||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740) Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exists. The new guidance requires the netting of unrecognized tax benefits (“UTBs”) against a deferred tax asset for a loss or other carry-forward that would apply in settlement of the uncertain tax positions. Under the new standard, UTBs will be netted against all available same-jurisdiction loss or other tax carry-forwards that would be utilized, rather than only against carry-forwards that are created by the UTBs. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The ASU should be applied prospectively to all UTBs that exist at the effective date. Retrospective application is permitted. The Company does not expect the adoption of this guidance to have any significant impact on the Company’s consolidated financial statements. |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Changes in Allowance for Doubtful Accounts | ' | |||||||||||||||||
Below is a summary of the changes in allowance for doubtful accounts for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||
Balance at | Provision, net | Write-offs | Balance at | |||||||||||||||
Beginning of | of Recoveries | End of | ||||||||||||||||
Period | Period | |||||||||||||||||
Year ended December 31, 2011 | $ | — | $ | 5 | $ | — | $ | 5 | ||||||||||
Year ended December 31, 2012 | 5 | 428 | — | 433 | ||||||||||||||
Year ended December 31, 2013 | 433 | (8 | ) | 286 | 139 | |||||||||||||
Financial_Statement_Components1
Financial Statement Components (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Components of Cash and Cash Equivalents | ' | ||||||||
Cash and cash equivalents consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Cash | $ | 34,561 | $ | 3,599 | |||||
Money market funds | 81,817 | 34,265 | |||||||
Total cash and cash equivalents | $ | 116,378 | $ | 37,864 | |||||
Components of Accounts Receivable, Net | ' | ||||||||
Accounts receivable, net consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accounts receivable-trade | $ | 2,192 | $ | 2,683 | |||||
Unbilled accounts receivable-trade | 992 | 440 | |||||||
Allowance for doubtful accounts | -139 | (433 | ) | ||||||
Accounts receivable, net | $ | 3,045 | $ | 2,690 | |||||
Components of Property and Equipment, Net | ' | ||||||||
Property and equipment, net consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Computer hardware and software | $ | 30,449 | $ | 23,973 | |||||
Internal-use software development costs | 4,636 | 3,319 | |||||||
Furniture and fixtures | 1,127 | 700 | |||||||
Leasehold improvements | 859 | 441 | |||||||
Property and equipment, gross | 37,071 | 28,433 | |||||||
Less: accumulated depreciation | -20,411 | (11,425 | ) | ||||||
Property and equipment, net | $ | 16,660 | $ | 17,008 | |||||
Components of Accrued Liabilities | ' | ||||||||
Accrued liabilities consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued compensation and benefits | $ | 5,660 | $ | 3,216 | |||||
Accrued sales, use and telecom related taxes | 3,967 | 4,580 | |||||||
Accrued expenses | 10,168 | 11,998 | |||||||
Other | 764 | 1,693 | |||||||
Total accrued liabilities | $ | 20,559 | $ | 21,487 | |||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value of Assets Carried at Fair Value | ' | ||||||||||||||||
The fair value of assets carried at fair value was determined using the following inputs (in thousands): | |||||||||||||||||
Balance at | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 81,817 | $ | 72,717 | $ | 9,000 | $ | — | |||||||||
Other assets: | |||||||||||||||||
Certificates of deposit | $ | 630 | $ | — | $ | 630 | $ | — | |||||||||
Balance at | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
December 31, 2012 | |||||||||||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | $ | 34,265 | $ | 34,265 | $ | — | $ | — | |||||||||
Other assets: | |||||||||||||||||
Certificates of deposit | $ | 500 | $ | — | $ | 500 | $ | — | |||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule of Debt | ' | ||||||||
The Company’s outstanding balances under its debt agreements as of December 31, 2013 and 2012 were as follows (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
SVB loan and security agreement | $ | 29,111 | $ | 6,000 | |||||
TriplePoint growth capital loan agreement | — | 5,348 | |||||||
TriplePoint equipment loan agreement | 5,032 | 8,151 | |||||||
Other | 500 | 1,000 | |||||||
34,643 | 20,499 | ||||||||
Loan discounts | (416 | ) | (435 | ) | |||||
Net carrying value of debt | $ | 34,227 | $ | 20,064 | |||||
Schedule of Maturities of Long-term Debt | ' | ||||||||
As of December 31, 2013, future principal payments are scheduled as follows (in thousands): | |||||||||
December 31, | |||||||||
2013 | |||||||||
Year ending December 31: | |||||||||
2014 | $ | 9,910 | |||||||
2015 | 16,920 | ||||||||
2016 | 3,750 | ||||||||
2017 | 3,750 | ||||||||
2018 | 313 | ||||||||
$ | 34,643 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule of Future Minimum Lease Payments for Capital and Operating Leases | ' | ||||||||
The Company leases facilities for office space under noncancelable operating leases for its U.S. and international locations and has entered into capital lease arrangements to obtain property and equipment for its operations. In addition, the Company leases space from third party datacenter hosting facilities under co-location agreements to support its cloud infrastructure. As of December 31, 2013, noncancelable leases expire on various dates between 2014 and 2017 and require the following future minimum lease payments by year (in thousands): | |||||||||
Capital | Operating | ||||||||
Leases | Leases | ||||||||
Year ending December 31: | |||||||||
2014 | $ | 388 | $ | 2,724 | |||||
2015 | 258 | 2,563 | |||||||
2016 | — | 1,311 | |||||||
2017 | — | 435 | |||||||
Total future minimum lease payments | 646 | $ | 7,033 | ||||||
Less: amount representing interest | (52 | ) | |||||||
Total capital lease obligation | 594 | ||||||||
Less: Current portion of capital lease obligation | (347 | ) | |||||||
Capital lease obligation | $ | 247 | |||||||
Property and Equipment Recorded Under Capital Leases | ' | ||||||||
Property and equipment recorded under capital leases consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Total assets acquired under capital lease | $ | 2,317 | $ | 2,317 | |||||
Less: accumulated amortization | (1,693 | ) | (1,029 | ) | |||||
Leased property and equipment, net | $ | 624 | $ | 1,288 | |||||
Stockolders_Equity_Tables
Stockolders' Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Convertible Preferred Stock Authorized, Issued and Outstanding | ' | ||||||||||||||||
Convertible preferred stock authorized, issued and outstanding as of December 31, 2012 (in thousands) follows: | |||||||||||||||||
Shares | Shares issued | Net | Aggregate | ||||||||||||||
authorized | and | proceeds | liquidation | ||||||||||||||
outstanding | preference | ||||||||||||||||
Series A | 16,847 | 16,847 | $ | 12,064 | $ | 12,164 | |||||||||||
Series B | 5,729 | 5,657 | 11,790 | 11,868 | |||||||||||||
Series C | 3,289 | 3,031 | 9,870 | 10,000 | |||||||||||||
Series D | 2,300 | 1,737 | 10,385 | 10,464 | |||||||||||||
Series E | 4,129 | 3,097 | 29,911 | 30,000 | |||||||||||||
32,294 | 30,369 | $ | 74,020 | $ | 74,496 | ||||||||||||
Schedule of Common Stock Reserved for Issuance | ' | ||||||||||||||||
Shares of Class A common stock reserved for future issuance were as follows (in thousands): | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
Preferred stock | 100,000 | ||||||||||||||||
Class B common stock | 53,043 | ||||||||||||||||
Common stock warrants | 502 | ||||||||||||||||
2013 Employee stock purchase plan | 1,250 | ||||||||||||||||
2013 Equity incentive plan: | |||||||||||||||||
Outstanding options and restricted stock unit awards | 11,224 | ||||||||||||||||
Available for future grants | 6,014 | ||||||||||||||||
172,033 | |||||||||||||||||
Schedule of Outstanding Warrants to Purchase Common Stock and Preferred Stock | ' | ||||||||||||||||
The Company has issued common stock warrants to consultants for services and preferred stock warrants to lenders in connection with its debt agreements. Upon effectiveness of the Company’s Registration Statement and the filing of its Certificate of Incorporation in Delaware on September 26, 2013, all outstanding preferred stock warrants automatically converted to Class B common stock warrants. As of December 31, 2013, outstanding warrants to purchase shares of Class B common stock were as follows(number of warrant shares in thousands): | |||||||||||||||||
Class of shares | Number of | Weighted- | Weighted- | ||||||||||||||
Warrant | Average | Average | |||||||||||||||
Shares | Exercise price | Contractual | |||||||||||||||
Outstanding | Per Share | Term | |||||||||||||||
and | (in Years) | ||||||||||||||||
Exercisable | |||||||||||||||||
Common stock | 502 | $ | 5.05 | 5.9 | |||||||||||||
Schedule of Assumptions of Fair Value of Preferred Stock Warrants using Black-Scholes Option Pricing Model | ' | ||||||||||||||||
The weighted-average assumptions used in the option pricing models and the resulting grant date fair value of stock options granted in the periods presented were as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected term for employees (in years) | 6.1 | 6.1 | 6.2 | ||||||||||||||
Expected term for non-employees (in years) | 10 | 10 | 10 | ||||||||||||||
Expected volatility | 54 | % | 61 | % | 67 | % | |||||||||||
Risk-free interest | 1.68 | % | 0.97 | % | 2.08 | % | |||||||||||
Expected dividends | — | — | — | ||||||||||||||
Grant date fair value of employee options | $ | 6.19 | $ | 3.07 | $ | 1.18 | |||||||||||
Series E Preferred Stock | ' | ||||||||||||||||
Schedule of Assumptions of Fair Value of Preferred Stock Warrants using Black-Scholes Option Pricing Model | ' | ||||||||||||||||
The 2013 TriplePoint Series E warrants were issued with an exercise price equal to the lower of: (i) $9.68 or (ii) lowest price per share in the next round of equity financing. As the 2013 TriplePoint Series E warrants were issued in connection with a loan, the proceeds were allocated to the loan and the warrants based on the relative fair value of the instruments resulting in a loan discount of $495,000 being recorded. As a result of the exercise price adjustment feature, the 2013 TriplePoint Series E warrants were not indexed to the Company’s stock and were classified as liabilities on the date of issuance. The exercise price adjustment feature for the 2013TriplePoint Series E warrants expired upon the effectiveness of the Registration Statement and the filing of the Company’s Certificate of Incorporation in Delaware (September 26, 2013). Upon the expiration of the exercise price adjustment feature, the 2013TriplePoint Series E warrants became indexed to the Company’s stock and were reclassified as stockholders’ equity. The 2013 TriplePoint Series E warrants were recorded at fair value for the period the warrants were classified as liabilities with changes in fair value recognized in other income and expense. The fair value of the 2013 TriplePoint Series E warrants was reclassified to stockholders’ equity on September 26, 2013 when the Series E preferred stock and preferred stock warrants were converted into Class B common stock and warrants to purchase Class B common stock, respectively. The fair value of the 2013 TriplePoint Series E warrants was measured during the period outstanding through the reclassification date using the Black-Scholes-Merton option pricing model with the following assumptions: | |||||||||||||||||
Expected volatility | 58%-60% | ||||||||||||||||
Expected life in years | 9.9-10.0 | ||||||||||||||||
Risk free interest rate | 2.64%-2.71% | ||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||
Series D Preferred Stock | ' | ||||||||||||||||
Schedule of Assumptions of Fair Value of Preferred Stock Warrants using Black-Scholes Option Pricing Model | ' | ||||||||||||||||
In connection with the $4,000,000 growth capital part II loan draw from TriplePoint in June 2013, the Company issued TriplePoint a warrant to purchase 33,192 shares of Series D preferred stock with the exercise price set at the lower of: (i) $6.03 per share or (ii) the lowest price per share in the next round of equity financing (the “2013 TriplePoint Series D warrants”). As the 2013 TriplePoint Series D warrants were issued in connection with a loan, the proceeds were allocated to the loan and the warrants based on the relative fair value of the instruments resulting in a loan discount of $265,000 being recorded. As a result of the exercise price adjustment feature, the 2013 TriplePoint Series D warrants were not indexed to the Company’s stock and were classified as liabilities on the date of issuance. The exercise price adjustment feature for the 2013TriplePoint Series D warrants expired upon the effectiveness of the Registration Statement and the filing of the Company’s Certificate of Incorporation in Delaware (September 26, 2013). Upon the expiration of the exercise price adjustment feature, the 2013TriplePoint Series D warrants became indexed to the Company’s stock and were reclassified as stockholders’ equity. The 2013TriplePoint Series D warrants were recorded at fair value for the period the warrants were classified as liabilities with changes in fair value recognized in other income and expense. The fair value of the 2013TriplePoint Series D warrants was reclassified to stockholders’ equity on September 26, 2013 when the Series D preferred stock and preferred stock warrants were converted into Class B common stock and warrants to purchase Class B common stock, respectively. The fair value of the 2013TriplePoint Series D warrants was measured during the period outstanding through the reclassification date using the Black-Scholes-Merton option pricing model with the following assumptions: : | |||||||||||||||||
Expected volatility | 55%-58% | ||||||||||||||||
Expected life in years | 6.8-7.0 | ||||||||||||||||
Risk free interest rate | 1.91%-2.64% | ||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||
In connection with the execution of the TriplePoint credit facility and the growth capital part I and equipment loan draws, warrants to purchase 106,975 shares of Series D preferred stock were issued to TriplePoint in June and August 2012 (the “2012 Series D warrants”), with an exercise price equal to the lower of: (i) $6.03 or (ii) lowest price per share in the next round of equity financing. As a result of the exercise price adjustment feature, the 2012 Series D warrants were not indexed to the Company’s stock and were classified as liabilities on the date of issuance. The exercise price adjustment feature for the 2012 Series D warrants expired with the issuance of Series E preferred stock in November 2012. Upon the expiration of the exercise price adjustment feature, the 2012 Series D warrants became indexed to the Company’s stock and were reclassified as stockholders’ equity. The 2012 Series D warrants were recorded at fair value for the period the warrants were classified as liabilities with changes in fair value recognized in other income and expense. The fair value of the 2012 Series D warrants was measured during the period outstanding through the reclassification date using the Black-Scholes-Merton option pricing model with the following assumptions: | |||||||||||||||||
Expected volatility | 56%-65% | ||||||||||||||||
Expected life in years | 6.5-7.0 | ||||||||||||||||
Risk free interest rate | 1.06%-1.15% | ||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Share-Based Compensation Expense Recognized to Statements of Operations | ' | ||||||||||||||||
A summary of share-based compensation expense recognized in the Company’s consolidated statements of operations follows (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of services revenues | $ | 539 | $ | 235 | $ | 141 | |||||||||||
Research and development | 1,495 | 837 | 260 | ||||||||||||||
Sales and marketing | 1,313 | 651 | 297 | ||||||||||||||
General and administrative | 4,193 | 1,379 | 490 | ||||||||||||||
Total share-based compensation expense | $ | 7,540 | $ | 3,102 | $ | 1,188 | |||||||||||
Summary of Share-based Compensation Expense by Award Type | ' | ||||||||||||||||
A summary of share-based compensation expense by award type follows (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Options | $ | 7,069 | $ | 3,102 | $ | 1,188 | |||||||||||
Employee stock purchase plan rights | 453 | — | — | ||||||||||||||
Restricted stock units | 18 | — | — | ||||||||||||||
Total share-based compensation expense | $ | 7,540 | $ | 3,102 | $ | 1,188 | |||||||||||
Summary of Stock Option Activity Plans | ' | ||||||||||||||||
A summary of option activity under all of the plans at December 31, 2013 and changes during the periods then ended is presented in the following table: | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Outstanding | Exercise Price | Contractual | Value | ||||||||||||||
(in thousands) | Per Share | Term | (in thousands) | ||||||||||||||
(in Years) | |||||||||||||||||
Outstanding at December 31, 2011 | 5,621 | $ | 1.14 | 7.8 | $ | 8,917 | |||||||||||
Granted | 4,369 | 4.91 | |||||||||||||||
Exercised | (484 | ) | 1.15 | ||||||||||||||
Canceled/Forfeited | (897 | ) | 2.18 | ||||||||||||||
Outstanding at December 31, 2012 | 8,609 | 2.89 | 7.2 | $ | 40,705 | ||||||||||||
Granted | 3,856 | $ | 11.54 | ||||||||||||||
Exercised | (607 | ) | 1.47 | ||||||||||||||
Canceled/Forfeited | (702 | ) | 4.31 | ||||||||||||||
Outstanding at December 31, 2013 | 11,156 | $ | 5.87 | 7.7 | $ | 139,484 | |||||||||||
Vested and expected to vest as of December 31, 2013 | 10,346 | $ | 5.56 | 7.6 | $ | 132,578 | |||||||||||
Exercisable as of December 31, 2013 | 5,023 | $ | 2.37 | 6.1 | $ | 80,378 | |||||||||||
Weighted Average Grant Date Fair Value of Options Granted and Total Intrinsic Value of Options Exercised | ' | ||||||||||||||||
The weighted average grant date fair value of options granted and the total intrinsic value of options exercised were as follows (in thousands, except weighted average grant date fair value): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Weighted average grant date fair value per share | $ | 6.19 | $ | 3.07 | $ | 1.18 | |||||||||||
Total intrinsic value of options exercised | $ | 10,261 | $ | 3,134 | $ | 2,035 | |||||||||||
Summary of Status of Nonvested Shares Activity | ' | ||||||||||||||||
The Company’s option agreements with certain employees permit the early exercise of nonvested stock options. The Company has the right to repurchase issued but nonvested shares of common stock at the original exercise price following the termination of service. The shares are released from the repurchase right according to the vesting schedule specified in the option agreement. The Company treats the proceeds from early exercise as a deposit of the exercise price and records the cash received initially as a liability that is reclassified to stockholders’ equity as the shares vest. A summary of the status of the Company’s nonvested shares as of December 31, 2013 and 2012, and changes during the periods then ended is presented below (in thousands): | |||||||||||||||||
Number of | Nonvested | ||||||||||||||||
Shares | Common Stock | ||||||||||||||||
Liability | |||||||||||||||||
Nonvested as of December 31, 2011 | 58 | $ | 64 | ||||||||||||||
Early exercises | 100 | 200 | |||||||||||||||
Vested | (58 | ) | (60 | ) | |||||||||||||
Nonvested as of December 31, 2012 | 100 | 204 | |||||||||||||||
Early exercises | — | — | |||||||||||||||
Vested | (63 | ) | (117 | ) | |||||||||||||
Nonvested as of December 31, 2013 | 37 | $ | 87 | ||||||||||||||
Schedule of Assumptions of Fair Value of Preferred Stock Warrants using Black-Scholes Option Pricing Model | ' | ||||||||||||||||
The weighted-average assumptions used in the option pricing models and the resulting grant date fair value of stock options granted in the periods presented were as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected term for employees (in years) | 6.1 | 6.1 | 6.2 | ||||||||||||||
Expected term for non-employees (in years) | 10 | 10 | 10 | ||||||||||||||
Expected volatility | 54 | % | 61 | % | 67 | % | |||||||||||
Risk-free interest | 1.68 | % | 0.97 | % | 2.08 | % | |||||||||||
Expected dividends | — | — | — | ||||||||||||||
Grant date fair value of employee options | $ | 6.19 | $ | 3.07 | $ | 1.18 | |||||||||||
Summary of Assumptions Used to Value Employee Stock Purchase Rights Under the Black-Scholes Model | ' | ||||||||||||||||
The assumptions used to value employee stock purchase plan rights under the Black-Scholes-Merton model during the twelve months ended December 31, 2013 were as follows: | |||||||||||||||||
Expected term (in months) | 7 | ||||||||||||||||
Risk-free interest rate | 0.07 | % | |||||||||||||||
Expected volatility | 40 | % | |||||||||||||||
Expected dividend rate | — | % | |||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Provision (Benefit) from Continuing Operations on Basis of Segment Reporting | ' | ||||||||||||
The provision (benefit) for income taxes consisted of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | — | $ | 28 | $ | — | |||||||
State | 3 | 9 | 5 | ||||||||||
Foreign | (32 | ) | 111 | 10 | |||||||||
Total current | (29 | ) | 148 | 15 | |||||||||
Deferred: | |||||||||||||
Foreign | (16 | ) | (56 | ) | — | ||||||||
Total income tax expense | $ | (45 | ) | $ | 92 | $ | 15 | ||||||
Summary of Income from Continuing Operations Before Income Taxes on Basis of Segment Reporting | ' | ||||||||||||
Net loss before provision (benefit) for income taxes consisted of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | (41,778 | ) | $ | (33,883 | ) | $ | (13,292 | ) | ||||
International | (4,365 | ) | (1,415 | ) | (596 | ) | |||||||
Total net loss before provision (benefit) for income taxes | $ | (46,143 | ) | $ | (35,298 | ) | $ | (13,888 | ) | ||||
Summary of Variation of Effective Provision (Benefit) for Income Taxes from Statutory Federal Income Tax Rate | ' | ||||||||||||
The provision (benefit) for income tax differed from the amounts computed by applying the U.S. federal income tax rate of 35% to pretax loss as a result of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal tax benefit at statutory rate | $ | (15,687 | ) | $ | (12,002 | ) | $ | (4,722 | ) | ||||
State tax, net of federal benefit | 2 | 6 | 3 | ||||||||||
Share-based compensation | 641 | 534 | 385 | ||||||||||
Other permanent differences | 294 | 171 | (141 | ) | |||||||||
Foreign tax rate differential | (20 | ) | (253 | ) | (212 | ) | |||||||
Net operating losses not recognized | 14,725 | 11,636 | 4,702 | ||||||||||
Total income tax provision (benefit) | $ | (45 | ) | $ | 92 | $ | 15 | ||||||
Schedule of Deferred Income Tax Assets and Liabilities | ' | ||||||||||||
The types of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss and credit carry-forwards | $ | 35,904 | $ | 24,554 | |||||||||
Research and development credits | 2,353 | 895 | |||||||||||
Sales tax liability | 1,418 | 1,385 | |||||||||||
Share-based compensation | 2,247 | — | |||||||||||
Accrued liabilities | 2,528 | 2,704 | |||||||||||
Gross deferred tax assets | 44,450 | 29,538 | |||||||||||
Valuation allowance | (44,032 | ) | (28,847 | ) | |||||||||
Total deferred tax assets | 418 | 691 | |||||||||||
Deferred tax liabilities—Property and equipment | (327 | ) | (616 | ) | |||||||||
Net deferred tax assets | $ | 91 | $ | 75 | |||||||||
Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | ' | ||||||||||||
The Company has adopted the accounting policy that interest and penalties recognized are classified as part of its income taxes. The following shows the changes in the gross amount of unrecognized tax benefits as of December 31, 2013 (in thousands): | |||||||||||||
Balance as of December 31, 2011 | $ | 230 | |||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions taken in current year | 133 | ||||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions taken in prior year | 12 | ||||||||||||
Balance as of December 31, 2012 | 375 | ||||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions taken in current year | 168 | ||||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions taken in prior year | 390 | ||||||||||||
Balance as of December 31, 2013 | $ | 933 | |||||||||||
Basic_and_Diluted_Net_Loss_Per1
Basic and Diluted Net Loss Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Computation of Company's Basic and Diluted Net Loss Per Share of Common Stock | ' | ||||||||||||
The following table sets forth the computation of the Company’s basic and diluted net loss per share during the years ended December 31, 2013, 2012 and 2011 (in thousands, except per share data): | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net loss | $ | (46,098 | ) | $ | (35,390 | ) | $ | (13,903 | ) | ||||
Denominator: | |||||||||||||
Weighted-average common shares for basic and diluted net loss per share | 33,155 | 22,353 | 21,678 | ||||||||||
Basic and diluted net loss per share | $ | (1.39 | ) | $ | (1.58 | ) | $ | (0.64 | ) | ||||
Potential Shares of Common Stock Excluded from Diluted Weighted-Average Common Shares Outstanding | ' | ||||||||||||
Following is a table summarizing the potentially dilutive common shares that were excluded from diluted weighted-average common shares outstanding (in thousands): | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Shares of common stock issuable upon conversion | — | 30,369 | 27,272 | ||||||||||
of preferred stock | |||||||||||||
Shares of common stock issuable upon conversion of warrants | 502 | 337 | 181 | ||||||||||
Shares of common stock subject to repurchase | 37 | 100 | 58 | ||||||||||
Shares of common stock issuable under equity incentive plans outstanding | 11,224 | 8,609 | 5,621 | ||||||||||
Potential common shares excluded from diluted net loss | 11,763 | 39,415 | 33,132 | ||||||||||
per share | |||||||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Selected Unaudited Quarterly Consolidated Statements of Operations Data | ' | ||||||||||||||||||||||||||||||||
The following tables set forth selected unaudited quarterly consolidated statements of operations data for each of the eight quarters in the years ended December 31, 2013 and 2012 (in thousands except per share data): | |||||||||||||||||||||||||||||||||
Quarter ended | |||||||||||||||||||||||||||||||||
Dec 31, | Sept 30, | June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, | Mar 31, | ||||||||||||||||||||||||||
2013 | 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | ||||||||||||||||||||||||||
Consolidated Statements of Operations Data: | |||||||||||||||||||||||||||||||||
Revenues | $ | 45,342 | $ | 41,934 | $ | 37,704 | $ | 35,525 | $ | 33,125 | $ | 29,588 | $ | 27,005 | $ | 24,808 | |||||||||||||||||
Gross profit | 28,190 | 25,966 | 23,042 | 21,788 | 20,755 | 18,356 | 15,943 | 14,569 | |||||||||||||||||||||||||
Operating loss | (10,355 | ) | (8,151 | ) | (13,119 | ) | (9,408 | ) | (6,341 | ) | (9,038 | ) | (8,725 | ) | (9,723 | ) | |||||||||||||||||
Net loss(1) | (13,365 | ) | (8,852 | ) | (13,619 | ) | (10,262 | ) | (7,083 | ) | (9,568 | ) | (9,010 | ) | (9,729 | ) | |||||||||||||||||
Net loss per share, basic and diluted | $ | (0.22 | ) | $ | (0.36 | ) | $ | (0.60 | ) | $ | (0.45 | ) | $ | (0.31 | ) | $ | (0.43 | ) | $ | (0.40 | ) | $ | (0.44 | ) | |||||||||
× | In the fourth quarter of 2013, in connection with a debt refinancing transaction, the Company recorded a loss on early extinguishment of debt, which was classified in interest expense. Refer to Note 4 for additional details. |
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 02, 2013 | Oct. 02, 2013 | |
Customer | Customer A | Customer A | Class A common stock | Class A common stock | Class A common stock | Class A common stock | ||||
Initial Public Offering | Subsequent Event | |||||||||
Initial Public Offering | ||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | ' | ' | ' | ' | ' | 9,201,000 | 0 | 8,545,000 | 8,545,000 |
Underwriters' overallotment option | ' | ' | ' | ' | ' | ' | ' | ' | 1,125,000 | 1,125,000 |
Common stock shares sold | ' | ' | ' | ' | ' | ' | ' | ' | 80,000 | 80,000 |
Sale of stock, price per share | ' | ' | ' | ' | ' | ' | ' | ' | $13 | $13 |
Proceeds from issuance of initial public offering | $99,589,000 | ' | ' | ' | ' | ' | ' | ' | ' | $103,309,000 |
Deferred offering costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,032,000 |
Accumulated deficit | 129,755,000 | 83,657,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 116,378,000 | 37,864,000 | 13,577,000 | 11,137,000 | ' | ' | ' | ' | ' | ' |
Impairment loss of assets | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage | ' | ' | ' | ' | 68.00% | 54.00% | ' | ' | ' | ' |
Percentage of accounts receivable | 10.00% | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Number of Customers | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising Expense | 22,943,000 | 21,915,000 | 13,046,000 | ' | ' | ' | ' | ' | ' | ' |
Software development cost incurred | $1,317,000 | $1,480,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Changes_in_Allowance_for_Doubt
Changes in Allowance for Doubtful Accounts (Detail) (Allowance for doubtful accounts, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for doubtful accounts | ' | ' | ' |
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | $433 | $5 | ' |
Provision, net of Recoveries | -8 | 428 | 5 |
Write-offs | 286 | ' | ' |
Balance at End of Period | $139 | $433 | $5 |
Components_of_Cash_and_Cash_Eq
Components of Cash and Cash Equivalents (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Cash And Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | $34,561 | $3,599 | ' | ' |
Money market funds | 81,817 | 34,265 | ' | ' |
Total cash and cash equivalents | $116,378 | $37,864 | $13,577 | $11,137 |
Components_of_Accounts_Receiva
Components of Accounts Receivable, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Accounts receivable-trade | $2,192 | $2,683 |
Unbilled accounts receivable-trade | 992 | 440 |
Allowance for doubtful accounts | -139 | -433 |
Accounts receivable, net | $3,045 | $2,690 |
Components_of_Property_and_Equ
Components of Property and Equipment, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | $37,071 | $28,433 |
Less: accumulated depreciation | -20,411 | -11,425 |
Property and equipment, net | 16,660 | 17,008 |
Computer hardware and software | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 30,449 | 23,973 |
Internal-use software development costs | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 4,636 | 3,319 |
Furniture and fixtures | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | 1,127 | 700 |
Leasehold improvements | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property and equipment, gross | $859 | $441 |
Components_of_Accrued_Liabilit
Components of Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued compensation and benefits | $5,660 | $3,216 |
Accrued sales, use and telecom related taxes | 3,967 | 4,580 |
Accrued expenses | 10,168 | 11,998 |
Other | 764 | 1,693 |
Total accrued liabilities | $20,559 | $21,487 |
Financial_Statement_Components2
Financial Statement Components - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Depreciation and amortization | $8,980 | $6,191 | $3,546 |
Fair_Value_of_Assets_Carried_a
Fair Value of Assets Carried at Fair Value (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Money market funds | ' | ' |
Cash equivalents: | ' | ' |
Cash equivalents, Fair value | $81,817 | $34,265 |
Certificates of deposit | ' | ' |
Other assets: | ' | ' |
Other assets, Fair value | 630 | 500 |
Level 1 | Money market funds | ' | ' |
Cash equivalents: | ' | ' |
Cash equivalents, Fair value | 72,717 | 34,265 |
Level 1 | Certificates of deposit | ' | ' |
Other assets: | ' | ' |
Other assets, Fair value | ' | ' |
Level 2 | Money market funds | ' | ' |
Cash equivalents: | ' | ' |
Cash equivalents, Fair value | 9,000 | ' |
Level 2 | Certificates of deposit | ' | ' |
Other assets: | ' | ' |
Other assets, Fair value | 630 | 500 |
Level 3 | Money market funds | ' | ' |
Cash equivalents: | ' | ' |
Cash equivalents, Fair value | ' | ' |
Level 3 | Certificates of deposit | ' | ' |
Other assets: | ' | ' |
Other assets, Fair value | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Aug. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Warrants issued at June 2013 | Warrants issued at August 2013 | ||||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ' | ' | ' | ' | ' |
Fair value of warrants at issuance date | $495,000 | $265,000 | $454,000 | ' | ' |
Fair value of warrants | ' | ' | $473,000 | $320,000 | $500,000 |
Debt_Components_of_Debt_Instru
Debt - Components of Debt Instrument (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Gross | $34,643 | $20,499 |
Loan discounts | -416 | -435 |
Net carrying value of debt | 34,227 | 20,064 |
SVB loan and security agreement | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Gross | 29,111 | 6,000 |
TriplePoint growth capital loan agreement | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Gross | ' | 5,348 |
TriplePoint equipment loan agreement | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Gross | 5,032 | 8,151 |
Other | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Gross | $500 | $1,000 |
Debt_Schedule_of_Future_Princi
Debt - Schedule of Future Principal Payments of Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
2014 | $9,910 | ' |
2015 | 16,920 | ' |
2016 | 3,750 | ' |
2017 | 3,750 | ' |
2018 | 313 | ' |
Long-term Debt, Gross | $34,643 | $20,499 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 20, 2012 | Aug. 31, 2012 | Aug. 31, 2012 | Aug. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 30, 2010 | Mar. 31, 2012 | Jan. 30, 2010 | Mar. 31, 2012 | Dec. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Aug. 14, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Aug. 14, 2013 | Aug. 16, 2013 | Aug. 31, 2012 | Jun. 30, 2012 | Aug. 31, 2012 | Dec. 31, 2013 | Jun. 21, 2013 | Jun. 21, 2013 | Jun. 21, 2013 | Sep. 30, 2013 | Aug. 19, 2013 | Aug. 19, 2013 | |
Installment | Apr-12 | Jan-13 | Jan-14 | Minimum | Minimum | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Maximum | Maximum | Series E Preferred Stock | Series E Preferred Stock | Series E Preferred Stock | Series D Preferred Stock | Series D Preferred Stock | Series D Preferred Stock | Silicon Valley Bank Jan 2010 Term Loan | Silicon Valley Bank March 2012 Capital Growth Term Loan | Two Thousand and Ten Term Loan | Two Thousand Twelve Capital Growth Term Loans | Silicon Valley Bank Capital Growth Term Loan | Silicon Valley Bank Aug 2013 Mezzanine Term Loan | Silicon Valley Bank Aug 2013 Mezzanine Term Loan | Silicon Valley Bank Aug 2013 Mezzanine Term Loan | Silicon Valley Bank Aug 2013 Mezzanine Term Loan | Silicon Valley Bank Aug 2013 Mezzanine Term Loan | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Silicon Valley Bank Aug 2013 Revolving Line of Credit | TriplePoint 2012 Capital Growth Loan (part 1) | TriplePoint 2012 Capital Growth Loan (part 1) | Triple Point 2012 Equipment Loan | Triple Point 2012 Equipment Term Loan | Growth capital loan part II | Growth capital loan part II | TriplePoint June 2013 Capital Growth Loan (part II) | TriplePoint Aug 2013 Capital Growth Loan (part III) | TriplePoint Aug 2013 Capital Growth Loan (part III) | Growth capital loan part III | ||||
Prime Rate | Prime Rate | LIBOR Rate | LIBOR Rate | Prime Rate | Prime Rate | LIBOR Rate | LIBOR Rate | Minimum | Maximum | Minimum | Maximum | Installment | Installment | Minimum | Series E Preferred Stock | Installment | Installment | Series D Preferred Stock | Installment | Series E Preferred Stock | |||||||||||||||||||||||||||
Amendment | Amendment | Amendment | Amendment | ||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,500,000 | $8,000,000 | ' | ' | ' | $5,000,000 | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $6,000,000 | $9,691,000 | ' | ' | ' | $4,000,000 | ' | $5,000,000 | ' |
Number of monthly installments | 48 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | 36 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan fixed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.50% | 5.75% | ' | ' | ' | 8.50% | ' | 11.00% | ' |
Maturity payment interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | 0.50% | ' | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 10.00% | ' | ' | ' | 4.00% | ' | ' | ' |
Interest rate on debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance of term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,333,000 | ' | ' | 4,222,000 | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | 5,032,000 | ' | ' | ' | ' | ' | ' |
Revolving line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving line of credit maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13-Aug-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Aug-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing under the revolving line of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,778,000 | 10,778,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, available borrowing capacity | 889,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of warrants to purchase preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,324 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,192 | ' | 51,614 | ' |
Warrants, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.69 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.03 | ' | $9.69 | ' |
Discount on Issuance of Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 866,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 265,000 | ' | 495,000 | ' |
Expected volatility rate | ' | ' | ' | ' | ' | ' | ' | 56.00% | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | 58.00% | 60.00% | ' | 55.00% | 58.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55.00% | ' | ' | ' | 60.00% |
Expected life | ' | ' | ' | ' | ' | ' | ' | '6 years 6 months | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | '9 years 10 months 24 days | '10 years | ' | '6 years 9 months 18 days | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | '10 years |
Risk free interest rate | ' | ' | ' | ' | ' | ' | ' | 1.06% | ' | ' | ' | ' | 1.15% | ' | ' | ' | ' | ' | 2.64% | 2.71% | ' | 1.91% | 2.64% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.90% | ' | ' | ' | 2.70% |
Dividend yield | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | 0.00% |
Fair value of preferred stock per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.86 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11.41 | ' | ' | ' | $12.86 |
Gains (Losses) on Extinguishment of Debt, before Write off of Deferred Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,833,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,342,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | 5,384,000 | 1,503,000 | 158,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 491,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of margin | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | 0.25% | 3.75% | 3.25% | ' | 1.00% | 0.50% | 4.00% | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | 34,561,000 | 3,599,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of principal and interest payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33 | ' | ' | ' | ' | 33 | ' | ' | ' |
Available lending commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' |
Additional borrowings under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | 5,000,000 | ' |
Conditional requirement for additional borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' |
Period for interest payment only | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 months | ' | ' | '36 months | ' | ' |
Fixed rate of interest for interest only period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' |
Final payment percentage amount advanced under the term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' |
Loan to purchase software | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan to purchase software, installment payments | ' | ' | ' | ' | $500,000 | $500,000 | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Capital and Operating Leases (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Future Lease Payments Due [Line Items] | ' | ' |
Capital leases due in 2014 | $388 | ' |
Capital leases due in 2015 | 258 | ' |
Capital leases due in 2016 | 0 | ' |
Capital leases due in 2017 | 0 | ' |
Total future minimum capital lease payments | 646 | ' |
Less: amount representing interest | -52 | ' |
Total capital lease obligation | 594 | ' |
Less: Current portion of capital lease obligation | -347 | -312 |
Capital lease obligation | 247 | 703 |
Operating leases due in 2014 | 2,724 | ' |
Operating leases due in 2015 | 2,563 | ' |
Operating leases due in 2016 | 1,311 | ' |
Operating leases due in 2017 | 435 | ' |
Total future minimum operating lease payments | $7,033 | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Property and Equipment Recorded under Capital Leases (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Total assets acquired under capital lease | $2,317 | $2,317 |
Less: accumulated amortization | -1,693 | -1,029 |
Leased property and equipment, net | $624 | $1,288 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Commitments And Contingencies Additional Information Detail [Line Items] | ' | ' | ' |
Long-term sales tax liability | $3,988,000 | $3,877,000 | ' |
Current sales tax liability for noncontingent amounts | 3,451,000 | 3,574,000 | ' |
Accrued liabilities of estimable amount of all loss contingencies related to legal matters | ' | 1,075,000 | ' |
Total rent expense | $1,324,000 | $1,261,000 | $533,000 |
Stockolders_Equity_Summary_of_
Stockolders' Equity - Summary of Convertible Preferred Stock Authorized and Issued and Outstanding (Detail) (USD $) | Dec. 31, 2012 |
Shares authorized | 32,294,000 |
Shares issued and outstanding | 30,369,000 |
Net proceeds | $74,020,000 |
Aggregate liquidation preference | 74,496,000 |
Series A Preferred Stock | ' |
Shares authorized | 16,847,000 |
Shares issued and outstanding | 16,847,000 |
Net proceeds | 12,064,000 |
Aggregate liquidation preference | 12,164,000 |
Series B Preferred Stock | ' |
Shares authorized | 5,729,000 |
Shares issued and outstanding | 5,657,000 |
Net proceeds | 11,790,000 |
Aggregate liquidation preference | 11,868,000 |
Series C Preferred Stock | ' |
Shares authorized | 3,289,000 |
Shares issued and outstanding | 3,031,000 |
Net proceeds | 9,870,000 |
Aggregate liquidation preference | 10,000,000 |
Series D Preferred Stock | ' |
Shares authorized | 2,300,000 |
Shares issued and outstanding | 1,737,000 |
Net proceeds | 10,385,000 |
Aggregate liquidation preference | 10,464,000 |
Series E Preferred Stock | ' |
Shares authorized | 4,129,000 |
Shares issued and outstanding | 3,097,000 |
Net proceeds | 29,911,000 |
Aggregate liquidation preference | $30,000,000 |
Stockolders_Equity_Summary_of_1
Stockolders' Equity - Summary of Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Common stock reserved for future issuance | 172,033,000 | ' | ' |
Outstanding options and restricted stock unit awards | 11,156,000 | 8,609,000 | 5,621,000 |
Two Thousand and Thirteen Equity Incentive Plan | ' | ' | ' |
Common stock reserved for future issuance | 6,014,000 | ' | ' |
Outstanding options and restricted stock unit awards | 11,224,000 | ' | ' |
Employee Stock | ' | ' | ' |
Common stock reserved for future issuance | 1,250,000 | ' | ' |
Class B common stock | ' | ' | ' |
Common stock reserved for future issuance | 53,043,000 | ' | ' |
Common Stock Warrants | ' | ' | ' |
Common stock reserved for future issuance | 502,000 | ' | ' |
Preferred Stock | ' | ' | ' |
Common stock reserved for future issuance | 100,000,000 | ' | ' |
Stockolders_Equity_Summary_of_2
Stockolders' Equity - Summary of Outstanding Warrants to Purchase Common Stock and Preferred Stock (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Weighted-Average Exercise price Per Share | $5.87 | $2.89 | $1.14 |
Weighted-Average Contractual Term (in Years) | '7 years 8 months 12 days | '7 years 2 months 12 days | '7 years 9 months 18 days |
Common Stock | ' | ' | ' |
Number of Warrant Shares Outstanding and Exercisable | 502 | ' | ' |
Weighted-Average Exercise price Per Share | $5.05 | ' | ' |
Weighted-Average Contractual Term (in Years) | '5 years 10 months 24 days | ' | ' |
Stockolders_Equity_Summary_of_3
Stockolders' Equity - Summary of Black-Scholes Options Pricing Model (Detail) | 12 Months Ended | ||||||||
Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Minimum | Maximum | Series E Preferred Stock | Series E Preferred Stock | Series E Preferred Stock | Series D Preferred Stock | Series D Preferred Stock | Series D Preferred Stock | ||
Minimum | Maximum | Minimum | Maximum | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility rate | ' | 56.00% | 65.00% | ' | 58.00% | 60.00% | ' | 55.00% | 58.00% |
Expected life in years | ' | '6 years 6 months | '7 years | ' | '9 years 10 months 24 days | '10 years | ' | '6 years 9 months 18 days | '7 years |
Risk free interest rate | ' | 1.06% | 1.15% | ' | 2.64% | 2.71% | ' | 1.91% | 2.64% |
Dividend yield | 0.00% | ' | ' | 0.00% | ' | ' | 0.00% | ' | ' |
Stockolders_Equity_Additional_
Stockolders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 02, 2013 | Dec. 31, 2013 | Sep. 26, 2013 | Dec. 31, 2012 | Oct. 02, 2013 | Sep. 26, 2013 | Sep. 26, 2013 | Sep. 26, 2013 | Dec. 31, 2012 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2012 | Jun. 21, 2013 | |
Preferred Stock | Class A common stock | Class A common stock | Class A common stock | Class B common stock | Class B common stock | Class B common stock | Class B common stock | Class B common stock | Class B common stock | Class B common stock | Series E Preferred Stock | Series E Preferred Stock | Series E Preferred Stock | Series E Preferred Stock | Series D Preferred Stock | Series D Preferred Stock | |||
Initial Public Offering | Initial Public Offering | Initial Public Offering | Initial Public Offering | Initial Public Offering | Silicon Valley Bank Aug 2013 Mezzanine Term Loan | TriplePoint Aug 2013 Capital Growth Loan (part III) | Minimum | TriplePoint June 2013 Capital Growth Loan (part II) | |||||||||||
Convertible Preferred Stock | Common Stock | ||||||||||||||||||
Common stock, par value | ' | ' | ' | $0.00 | $0.00 | ' | $0.00 | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.68 | ' | ' |
Conversion of stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,368,527 | 23,316,877 | ' | ' | ' | ' | ' | ' |
Common stock, shares, outstanding | 37,075,000 | 100,193,000 | ' | 9,201,000 | 0 | ' | 53,043,000 | ' | 22,694,000 | ' | 53,685,404 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares, issued | ' | ' | ' | 9,201,000 | 0 | 8,545,000 | 53,043,000 | ' | 22,694,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Overallotment option of shares in connection to Initial Public Offering | ' | ' | ' | ' | ' | 1,125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares sold in connection with Initial Public Offering | ' | ' | ' | ' | ' | 80,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of stock, price per share | ' | ' | ' | ' | ' | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reserved for future issuance | 172,033,000 | ' | 100,000,000 | ' | ' | 9,200,774 | 53,043,000 | ' | ' | 53,043,295 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued and outstanding | ' | 30,369,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,097,000 | ' | ' | ' | 1,737,000 | ' |
Convertible preferred stock outstanding | ' | ' | ' | ' | ' | ' | ' | 30,368,527 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, conversion basis | 'each share of Class B common stock will convert automatically to Class A common stock upon: (i) the date specified by an affirmative vote or written consent of holders of at least 67% of the outstanding shares of Class B common stock, or (ii) the seven year anniversary of the closing date of the IPO (October 2, 2020) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | ' | 1,000,000,000 | 0 | ' | 250,000,000 | ' | 65,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of warrants to purchase preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90,324 | 51,614 | ' | ' | 33,192 |
Warrants, exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.68 | ' | ' | ' | $6.03 |
Discount on Issuance of Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $866,000 | ' | ' | ' | $265,000 |
Term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,000,000 |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Share-Based Compensation Expense Recognized to Statements of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation expense | $7,540 | $3,102 | $1,188 |
Cost of Services Revenues | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation expense | 539 | 235 | 141 |
Research and Development | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation expense | 1,495 | 837 | 260 |
Sales and Marketing | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation expense | 1,313 | 651 | 297 |
General and Administrative | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation expense | $4,193 | $1,379 | $490 |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Share-Based Compensation Expense by Award Type (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation expense | $7,540 | $3,102 | $1,188 |
Options | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation expense | 7,069 | 3,102 | 1,188 |
Restricted Stock Units | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation expense | 18 | 0 | 0 |
Employee Stock Purchase Plan Rights | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation expense | $453 | $0 | $0 |
ShareBased_Compensation_Summar2
Share-Based Compensation - Summary of Stock Option Activity Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Number of Options Outstanding, Beginning Balance | 8,609 | 5,621 | ' |
Number of Options Outstanding, Granted | 3,856 | 4,369 | ' |
Number of Options Outstanding, Exercised | -607 | -484 | ' |
Number of Options Outstanding, Canceled/Forfeited Options | -702 | -897 | ' |
Number of Options Outstanding, Ending Balance | 11,156 | 8,609 | 5,621 |
Number of Options Outstanding, Vested and expected to vest | 10,346 | ' | ' |
Number of Options Outstanding, Exercisable | 5,023 | ' | ' |
Weighted Average Exercise Price Per Share, Beginning Balance | $2.89 | $1.14 | ' |
Weighted Average Exercise Price Per Share, Granted | $11.54 | $4.91 | ' |
Weighted Average Exercise Price Per Share, Exercised | $1.47 | $1.15 | ' |
Weighted Average Exercise Price Per Share, Canceled/Forfeited | $4.31 | $2.18 | ' |
Weighted Average Exercise Price Per Share, Ending Balance | $5.87 | $2.89 | $1.14 |
Weighted Average Exercise Price Per Share, Vested and expected to vest | $5.56 | ' | ' |
Weighted Average Exercise Price Per Share, Exercisable | $2.37 | ' | ' |
Weighted-Average Contractual Term, Beginning balance | '7 years 8 months 12 days | '7 years 2 months 12 days | '7 years 9 months 18 days |
Weighted-Average Contractual Term, Ending balance | '7 years 8 months 12 days | '7 years 2 months 12 days | '7 years 9 months 18 days |
Weighted-Average Contractual Term, Vested and expected to vest | '7 years 7 months 6 days | ' | ' |
Weighted-Average Contractual Term, Exercisable | '6 years 1 month 6 days | ' | ' |
Aggregate Intrinsic Value, Beginning Balance | $40,705 | $8,917 | ' |
Aggregate Intrinsic Value, Ending Balance | 139,484 | 40,705 | 8,917 |
Aggregate Intrinsic Value, Vested and expected to vest | 132,578 | ' | ' |
Aggregate Intrinsic Value, Exercisable | $80,378 | ' | ' |
ShareBased_Compensation_Weight
Share-Based Compensation - Weighted Average Grant Date Fair Value of Options Granted and Total Intrinsic Value of Options Exercised (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant date fair value per share | $6.19 | $3.07 | $1.18 |
Total intrinsic value of options exercised | $10,261 | $3,134 | $2,035 |
ShareBased_Compensation_Summar3
Share-Based Compensation - Summary of Status of Nonvested Shares Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Number of Shares Nonvested, Beginning Balance | 100 | 58 |
Number of Shares, Early exercises | ' | 100 |
Number of Shares, Vested | -63 | -58 |
Number of Shares Nonvested, Ending Balance | 37 | 100 |
Nonvested Common Stock Liability, Beginning Balance | $204 | $64 |
Nonvested Common Stock Liability, Early exercises | ' | 200 |
Nonvested Common Stock Liability, Vested | -117 | -60 |
Nonvested Common Stock Liability, Ending Balance | $87 | $204 |
ShareBased_Compensation_Weight1
Share-Based Compensation - Weighted Average Assumptions Used to Fair Value of Stock Options Granted (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | 54.00% | 61.00% | 67.00% |
Risk-free interest rate | 1.68% | 0.97% | 2.08% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Grant date fair value | $6.19 | $3.07 | $1.18 |
Employees | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Expected life (in years) | '6 years 1 month 6 days | '6 years 1 month 6 days | '6 years 2 months 12 days |
Non-Employees | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Expected life (in years) | '10 years | '10 years | '10 years |
Options | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Grant date fair value | $6.19 | $3.07 | $1.18 |
ShareBased_Compensation_Summar4
Share-Based Compensation - Summary of Assumptions Used to Value Employee Stock Purchase Rights Under the Black-Scholes Model (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Risk-free interest rate | 1.68% | 0.97% | 2.08% |
Expected volatility | 54.00% | 61.00% | 67.00% |
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Black Scholes Option Pricing Model | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Expected term (in months) | '7 months | ' | ' |
Risk-free interest rate | 0.07% | ' | ' |
Expected volatility | 40.00% | ' | ' |
Expected dividend rate | ' | ' | ' |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Common stock reserved for issuance | 172,033,000 | ' | ' |
Common stock, shares, outstanding | 37,075,000 | 100,193,000 | ' |
Contractual term | '6 years 1 month 6 days | ' | ' |
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Weighted average grant date fair value per share | $6.19 | $3.07 | $1.18 |
Restricted Stock Units | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Unrecognized share-based compensation expense | $890,000 | ' | ' |
Unrecognized share-based compensation expense, remaining weighted-average vesting periods | '3 years 9 months 18 days | ' | ' |
Employee Stock | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Common stock reserved for issuance | 1,250,000 | ' | ' |
Percentage of outstanding shares of common stock | 1.00% | ' | ' |
Common stock, shares, outstanding | 1,250,000 | ' | ' |
Eligible compensation under the Employee Stock Purchase Plan | 15.00% | ' | ' |
Eligible compensation under the Employee Stock Purchase Plan, amount | 25,000 | ' | ' |
Purchase of maximum shares by employees under Employee Stock Purchase Plan | 3,000 | ' | ' |
Shares available for issuance under the Employee Stock Purchase Plan | 1,250,000 | ' | ' |
Unrecognized share-based compensation expense | 728,000 | ' | ' |
Unrecognized share-based compensation expense, remaining weighted-average vesting periods | '4 months 24 days | ' | ' |
Employee Stock | Minimum | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Purchase price of Employee Stock Purchase Plan as a percentage of fair value | 90.00% | ' | ' |
Class A common stock | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Common stock, shares, outstanding | 9,201,000 | 0 | ' |
Two Thousand and Thirteen Equity Incentive Plan | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Common stock reserved for issuance | 6,014,000 | ' | ' |
Percentage of outstanding shares of common stock | 5.00% | ' | ' |
Common stock, shares, outstanding | 6,200,000 | ' | ' |
Graded vesting schedule, number of years continuous service | '4 years | ' | ' |
Contractual term | '10 years | ' | ' |
Expected dividend rate | 0.00% | ' | ' |
Unrecognized share-based compensation expense | $22,439,000 | $9,587,000 | ' |
Unrecognized share-based compensation expense, remaining weighted-average vesting periods | '3 years | '2 years 8 months 12 days | ' |
Two Thousand and Thirteen Equity Incentive Plan | Restricted Stock Units | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Restricted stock units issued | 68,100 | ' | ' |
Restricted stock units issued vesting period | '4 years | ' | ' |
Weighted average grant date fair value per share | $17.22 | ' | ' |
Two Thousand and Thirteen Equity Incentive Plan | Class A common stock | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Common stock reserved for issuance | 6,200,000 | ' | ' |
Income_Taxes_Summary_of_Provis
Income Taxes - Summary of Provision (Benefit) from Continuing Operations on Basis of Segment Reporting (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | ' | $28 | ' |
State | 3 | 9 | 5 |
Foreign | -32 | 111 | 10 |
Total current | -29 | 148 | 15 |
Deferred: | ' | ' | ' |
Foreign | -16 | -56 | ' |
Total income tax provision (benefit) | ($45) | $92 | $15 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income from Continuing Operations Before Income Taxes on Basis of Segment Reporting (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
United States | ($41,778) | ($33,883) | ($13,292) |
International | -4,365 | -1,415 | -596 |
Loss before provision (benefit) for income taxes | ($46,143) | ($35,298) | ($13,888) |
Income_Taxes_Summary_of_Variat
Income Taxes - Summary of Variation of Effective Provision (Benefit) for Income Taxes from Statutory Federal Income Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Federal tax benefit at statutory rate | ($15,687) | ($12,002) | ($4,722) |
State tax, net of federal benefit | 2 | 6 | 3 |
Share-based compensation | 641 | 534 | 385 |
Other permanent differences | 294 | 171 | -141 |
Foreign tax rate differential | -20 | -253 | -212 |
Net operating losses not recognized | 14,725 | 11,636 | 4,702 |
Total income tax provision (benefit) | ($45) | $92 | $15 |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating loss and credit carry-forwards | $35,904 | $24,554 |
Research and development credits | 2,353 | 895 |
Sales tax liability | 1,418 | 1,385 |
Share-based compensation | 2,247 | ' |
Accrued liabilities | 2,528 | 2,704 |
Gross deferred tax assets | 44,450 | 29,538 |
Valuation allowance | -44,032 | -28,847 |
Total deferred tax assets | 418 | 691 |
Deferred tax liabilitiesbProperty and equipment | -327 | -616 |
Net deferred tax assets | $91 | $75 |
Income_Taxes_Summary_of_Reconc
Income Taxes - Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | ' | ' |
Beginning balance | $375 | $230 |
Gross amount of increases in unrecognized tax benefits for tax positions taken in current year | 168 | 133 |
Gross amount of increases in unrecognized tax benefits for tax positions taken in prior year | 390 | 12 |
Ending balance | $933 | $375 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | ' | ' | ' |
Statutory federal income tax rate | 35.00% | ' | ' |
Net operating loss carry-forwards for federal income tax | $94,749,000 | $61,914,000 | ' |
Net operating loss carry-forwards for state income tax | 77,941,000 | 60,410,000 | ' |
Limitations in use of net operating losses | 'Events which may cause limitations in the amount of the net operating losses that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. | ' | ' |
Period for cumulative ownership change | '3 years | ' | ' |
Valuation allowances, deferred tax asset, increase | 15,185,000 | 12,336,000 | 5,351,000 |
Minimum | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Cumulative ownership change percentage | 50.00% | ' | ' |
Federal | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Research credit carry-forwards for tax purposes | 1,879,000 | 490,000 | ' |
California | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Research credit carry-forwards for tax purposes | $1,851,000 | $1,020,000 | ' |
Basic_and_Diluted_Net_Loss_Per2
Basic and Diluted Net Loss Per Share - Computation of Company's Basic and Diluted Net Loss Per Share of Common Stock (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net loss | ($13,365) | [1] | ($8,852) | [1] | ($13,619) | [1] | ($10,262) | [1] | ($7,083) | [1] | ($9,568) | [1] | ($9,010) | [1] | ($9,729) | [1] | ($46,098) | ($35,390) | ($13,903) |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Weighted-average common shares for basic and diluted net loss per share | ' | ' | ' | ' | ' | ' | ' | ' | 33,155 | 22,353 | 21,678 | ||||||||
Basic and diluted net loss per share | ($0.22) | ($0.36) | ($0.60) | ($0.45) | ($0.31) | ($0.43) | ($0.40) | ($0.44) | ($1.39) | ($1.58) | ($0.64) | ||||||||
[1] | In the fourth quarter of 2013, in connection with a debt refinancing transaction, the Company recorded a loss on early extinguishment of debt, which was classified in interest expense. Refer to Note 4 for additional details. |
Basic_and_Diluted_Net_Loss_Per3
Basic and Diluted Net Loss Per Share - Potential Shares of Common Stock Excluded from Diluted Weighted-Average Common Shares Outstanding (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' |
Potential common shares excluded from diluted net loss per share | 11,763 | 39,415 | 33,132 |
Conversion Of Preferred Stock | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' |
Potential common shares excluded from diluted net loss per share | ' | 30,369 | 27,272 |
Conversion Of Warrants | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' |
Potential common shares excluded from diluted net loss per share | 502 | 337 | 181 |
Repurchase Common Stock | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' |
Potential common shares excluded from diluted net loss per share | 37 | 100 | 58 |
Employee Stock Option | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' |
Potential common shares excluded from diluted net loss per share | 11,224 | 8,609 | 5,621 |
Geographic_Concentrations_Addi
Geographic Concentrations - Additional Information (Detail) (Operating Segments) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
United States | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' |
Percentage of revenue | 90.00% | 90.00% | 90.00% |
Percentage of property and equipment held | 84.00% | 84.00% | ' |
Other Individual Country | Maximum | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' |
Percentage of property and equipment held | 10.00% | 10.00% | ' |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) - Selected Unaudited Quarterly Consolidated Statements of Operations Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Consolidated Statements of Operations Data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenues | $45,342 | $41,934 | $37,704 | $35,525 | $33,125 | $29,588 | $27,005 | $24,808 | $160,505 | $114,526 | $78,877 | ||||||||
Gross profit | 28,190 | 25,966 | 23,042 | 21,788 | 20,755 | 18,356 | 15,943 | 14,569 | 98,986 | 69,623 | 45,879 | ||||||||
Operating loss | -10,355 | -8,151 | -13,119 | -9,408 | -6,341 | -9,038 | -8,725 | -9,723 | -41,033 | -33,827 | -13,839 | ||||||||
Net loss | ($13,365) | [1] | ($8,852) | [1] | ($13,619) | [1] | ($10,262) | [1] | ($7,083) | [1] | ($9,568) | [1] | ($9,010) | [1] | ($9,729) | [1] | ($46,098) | ($35,390) | ($13,903) |
Net loss per share, basic and diluted | ($0.22) | ($0.36) | ($0.60) | ($0.45) | ($0.31) | ($0.43) | ($0.40) | ($0.44) | ($1.39) | ($1.58) | ($0.64) | ||||||||
[1] | In the fourth quarter of 2013, in connection with a debt refinancing transaction, the Company recorded a loss on early extinguishment of debt, which was classified in interest expense. Refer to Note 4 for additional details. |