Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 | Feb. 23, 2015 |
Document And Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RNG | ||
Entity Registrant Name | RingCentral Inc | ||
Entity Central Index Key | 1384905 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $617 | ||
Class A common stock | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 52,320,814 | ||
Class B common stock | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 16,437,570 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $113,182 | $116,378 |
Short-term investments | 28,479 | |
Accounts receivable, net | 7,651 | 3,045 |
Inventory | 1,710 | 2,111 |
Prepaid expenses and other current assets | 8,767 | 5,214 |
Total current assets | 159,789 | 126,748 |
Property and equipment, net | 25,527 | 16,660 |
Other assets | 3,021 | 1,777 |
Total assets | 188,337 | 145,185 |
Current liabilities: | ||
Accounts payable | 4,181 | 4,414 |
Accrued liabilities | 29,236 | 20,559 |
Current portion of capital lease obligation | 509 | 347 |
Current portion of long-term debt | 16,764 | 9,871 |
Deferred revenue | 25,586 | 16,552 |
Total current liabilities | 76,276 | 51,743 |
Long-term debt | 7,813 | 24,356 |
Sales tax liability | 3,953 | 3,988 |
Capital lease obligation | 535 | 247 |
Other long-term liabilities | 3,255 | 1,336 |
Total liabilities | 91,832 | 81,670 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Additional paid-in capital | 274,844 | 193,574 |
Accumulated other comprehensive loss | -251 | -310 |
Accumulated deficit | -178,095 | -129,755 |
Total stockholders' equity | 96,505 | 63,515 |
Total liabilities and stockholders' equity | 188,337 | 145,185 |
Class A common stock | ||
Stockholders' equity: | ||
Common stock | 5 | 1 |
Class B common stock | ||
Stockholders' equity: | ||
Common stock | $2 | $5 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Class A common stock | ||
Common stock, par or stated value per share | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 50,770,000 | 9,201,000 |
Common stock, shares outstanding | 50,770,000 | 9,201,000 |
Class B common stock | ||
Common stock, par or stated value per share | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 17,789,000 | 53,043,000 |
Common stock, shares outstanding | 17,789,000 | 53,043,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Subscriptions | $200,098 | $145,995 | $105,693 |
Product | 19,789 | 14,510 | 8,833 |
Total revenues | 219,887 | 160,505 | 114,526 |
Cost of revenues: | |||
Subscriptions | 58,673 | 47,230 | 36,215 |
Product | 18,100 | 14,289 | 8,688 |
Total cost of revenues | 76,773 | 61,519 | 44,903 |
Gross profit | 143,114 | 98,986 | 69,623 |
Operating expenses: | |||
Research and development | 44,582 | 33,399 | 24,450 |
Sales and marketing | 104,827 | 72,336 | 54,566 |
General and administrative | 38,910 | 34,284 | 24,434 |
Total operating expenses | 188,319 | 140,019 | 103,450 |
Loss from operations | -45,205 | -41,033 | -33,827 |
Other income (expense), net: | |||
Interest expense | -2,007 | -5,384 | -1,503 |
Other income (expense), net | -1,031 | 274 | 32 |
Other income (expense), net | -3,038 | -5,110 | -1,471 |
Loss before provision (benefit) for income taxes | -48,243 | -46,143 | -35,298 |
Provision (benefit) for income taxes | 97 | -45 | 92 |
Net loss | ($48,340) | ($46,098) | ($35,390) |
Net loss per common share: | |||
Basic and diluted | ($0.72) | ($1.39) | ($1.58) |
Weighted-average number of shares used in computing net loss per share: | |||
Basic and diluted | 66,818 | 33,155 | 22,353 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | ($48,340) | ($46,098) | ($35,390) |
Other comprehensive loss: | |||
Foreign currency translation adjustments, net | 276 | -225 | -65 |
Unrealized loss on available-for-sale securities | -217 | ||
Comprehensive loss | ($48,281) | ($46,323) | ($35,455) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Convertible Preferred Stock | Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
In Thousands, except Share data | Series E Preferred Stock | ||||||
Beginning Balance at Dec. 31, 2011 | $1,452 | $44,109 | $2 | $5,628 | ($20) | ($48,267) | |
Beginning Balance, shares at Dec. 31, 2011 | 27,272,000 | 22,210,000 | |||||
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 | 484,000 | ||||||
Issuance of preferred stock warrants in connection with a debt agreement | 169 | 169 | |||||
Issuance of stock | 29,911 | 29,911 | |||||
Issuance of stock, shares | 3,097,000 | ||||||
Reclassification of preferred stock warrant | 473 | 473 | |||||
Share-based compensation | 3,102 | 3,102 | |||||
Foreign currency translation adjustments, net | -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 | 30,369,000 | 22,694,000 | |||||
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 | 616,000 | ||||||
Issuance of common stock for legal settlement | 257 | 257 | |||||
Issuance of common stock for legal settlement, shares | 20,000 | ||||||
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 | 8,545,000 | ||||||
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 | -30,369,000 | 30,369,000 | |||||
Share-based compensation | 7,540 | 7,540 | |||||
Foreign currency translation adjustments, net | -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 | 62,244,000 | ||||||
Issuance of stock | 56,117 | 56,117 | |||||
Issuance of stock, shares | 2,792,000 | ||||||
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans | 9,638 | 1 | 9,637 | ||||
Issuance of common stock in connection with Equity Incentive and Employee Stock Purchase plans, shares | 3,523,000 | ||||||
Share-based compensation | 15,516 | 15,516 | |||||
Foreign currency translation adjustments, net | 276 | 276 | |||||
Unrealized loss on available-for-sale corporate debt securities | -217 | -217 | |||||
Net loss | -48,340 | -48,340 | |||||
Ending Balance at Dec. 31, 2014 | $96,505 | $7 | $274,844 | ($251) | ($178,095) | ||
Ending Balance, shares at Dec. 31, 2014 | 68,559,000 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock | |||
Issuance costs | $1,050 | $11,809 | |
Series E Preferred Stock | |||
Issuance costs | $89 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($48,340) | ($46,098) | ($35,390) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 10,378 | 8,980 | 6,191 |
Share-based compensation | 15,516 | 7,540 | 3,102 |
Non-cash interest and other expense related to debt | 259 | 2,014 | 265 |
Loss on disposal of assets | 100 | 338 | 26 |
Deferred income tax | -35 | -16 | -56 |
Changes in assets and liabilities: | |||
Accounts receivable | -4,606 | -355 | -2,256 |
Inventory | 401 | -1,279 | 769 |
Prepaid expenses and other current assets | -3,553 | -1,873 | -2,022 |
Other assets | -1,012 | -328 | -366 |
Accounts payable | -510 | -453 | -1,392 |
Accrued liabilities | 9,054 | 1,370 | 12,898 |
Deferred revenue | 9,034 | 5,262 | 2,248 |
Other liabilities | 1,884 | 1,127 | 968 |
Net cash used in operating activities | -11,430 | -23,771 | -15,015 |
Cash flows from investing activities: | |||
Purchases of property and equipment | -17,965 | -10,789 | -10,172 |
Purchases of available-for-sale securities | -28,696 | ||
Restricted investments | -130 | ||
Net cash used in investing activities | -46,661 | -10,919 | -10,172 |
Cash flows from financing activities: | |||
Net proceeds from public offerings of common stock | 57,167 | 103,309 | |
Net proceeds from debt agreements | 37,857 | 24,538 | |
Repayment of debt | -9,909 | -26,309 | -5,356 |
Repayment of capital lease obligations | -698 | -422 | -675 |
Net proceeds from issuance of preferred stock | 29,911 | ||
Proceeds from issuance of preferred stock warrants | 1,625 | 501 | |
Payment of offering costs | -1,219 | -3,720 | |
Proceeds from issuance of stock in connection with stock plans | 9,446 | 893 | 556 |
Net cash provided by financing activities | 54,787 | 113,233 | 49,475 |
Effect of exchange rate changes on cash and cash equivalents | 108 | -29 | -1 |
Net increase (decrease) in cash and cash equivalents | -3,196 | 78,514 | 24,287 |
Cash and cash equivalents: | |||
Beginning of period | 116,378 | 37,864 | 13,577 |
End of period | 113,182 | 116,378 | 37,864 |
Supplemental disclosure of cash flow data: | |||
Cash paid for interest | 1,267 | 2,437 | 791 |
Cash paid for income taxes | 96 | 46 | 64 |
Noncash investing and financing activities: | |||
Change in liability for unvested exercised options | 47 | 114 | 20 |
Accrued liability for deferred offering costs | 313 | ||
Conversion of convertible preferred stock into common stock | 74,020 | ||
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 | ||
Equipment purchased and unpaid at period end | 1,013 | 775 | 2,700 |
Equipment acquired under capital lease | 1,149 | 1,329 | |
Unrealized loss on available-for-sale securities | $217 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||||||||||
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. | ||||||||||||||||
Public Offerings | ||||||||||||||||
On October 2, 2013, the Company completed an initial public offering (the “IPO”) and sold 8,625,000 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 80,000 shares of Class A common stock sold by selling stockholders, at a price of $13.00 per share. The offer and sale of all of the shares in the IPO were registered under the Securities Act pursuant to a registration statement on Form S-1 (File No. 333-190815) (the “Initial Registration Statement”). 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 $3,888,000. | ||||||||||||||||
On March 11, 2014, the Company completed a secondary public offering and sold 7,991,551 shares of Class A common stock to the public, including 791,551 of the underwriters’ overallotment option and 5,200,000 shares of Class A common stock sold by selling stockholders, at a price of $21.50 per share. The offer and sale of all of the shares in the secondary public offering were registered under the Securities Act pursuant to a registration statement on Form S-1 (File No. 333-194132) (the “Secondary Registration Statement”). The Company received aggregate proceeds of $57,167,000 from the secondary public offering, net of underwriters’ discounts and commissions, but before deduction of offering expenses of approximately $1,050,000. | ||||||||||||||||
The Company did not receive any proceeds from the sale of shares by the selling stockholders. | ||||||||||||||||
Principles of Consolidation | ||||||||||||||||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the consolidated accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||||||
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, Cash Equivalents and Investments in Marketable Securities | ||||||||||||||||
The Company considers highly liquid investments 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. Cash equivalents are stated at cost plus accrued interest, which approximates fair value. | ||||||||||||||||
Management determines the appropriate classification of its investments in marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. At December 31, 2014 the Company’s marketable securities consist of investments in commercial paper and corporate debt securities. At December 31, 2014, all investments were designated as available-for-sale and reported at fair value based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in accumulated other comprehensive loss in the consolidated balance sheet. We may sell these securities at any time for use in current operations or for other purposes, such as consideration for acquisitions, even if they have not yet reached maturity. As a result, all of our investments held at December 31, 2014 were classified as current assets in the accompanying consolidated balance sheet. We determine any realized gains or losses on the sale of marketable securities on a specific identification method, and we record such gains and losses as a component of other income (expense). | ||||||||||||||||
The Company monitors its investment portfolio for potential impairment on a quarterly basis. When the carrying amount of an investment in debt securities exceeds its fair value and the decline in value is determined to be other-than-temporary (i.e., when the Company does not intend to sell the debt securities and it is not more likely than not that the Company will be required to sell the debt securities prior to anticipated recovery of its amortized cost basis), management records an impairment charge to other income (expense), in the amount of the credit loss and the balance, if any, is recorded in accumulated other comprehensive loss in the consolidated balance sheets. No impairment losses have been recognized for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||
For the years ended December 31, 2012 and 2013, a significant portion of revenues were realized from credit card transactions with only a small portion of revenues generating accounts receivable. For the year ended December 31, 2014, the portion of revenues generating accounts receivable has increased as the Company has been acquiring larger customers that request credit terms. For all periods presented, 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, 2014, 2013 and 2012: | ||||||||||||||||
Balance at Beginning of Period | Provision, net of Recoveries | Write-offs | Balance at End of Period | |||||||||||||
Year ended December 31, 2012 | $ | 5 | $ | 428 | $ | — | $ | 433 | ||||||||
Year ended December 31, 2013 | 433 | (8 | ) | 286 | 139 | |||||||||||
Year ended December 31, 2014 | 139 | 40 | 54 | 125 | ||||||||||||
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, 2014 and 2013, the Company capitalized $698,000 and $1,317,000 of internal-use software development costs incurred, respectively. The carrying value of internal-use software development costs, net of amortization, was $1,658,000 and $2,325,000 at December 31, 2014 and 2013, 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 useful lives ranging from three to five 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, 2014, 2013 and 2012. | ||||||||||||||||
Concentrations | ||||||||||||||||
Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments in marketable securities and accounts receivable. The Company maintains its cash, cash equivalent and investment balances, which may exceed federally insured limits, with financial institutions and corporate entities 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, 2014 and 2013, AT&T, one of our resellers, accounted for 44% and 68% of the Company’s total accounts receivable, respectively. For the year ended December 31, 2014, AT&T accounted for 12% of the Company’s total revenues. For the years ended December 31, 2013 and 2012, 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, 2014, 2013 and 2012, 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 subscriptions revenues and product revenues. The Company’s subscriptions 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 subscriptions 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 subscription 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 subscription plans are recognized as follows: | ||||||||||||||||
· | fixed plan subscription and administrative cost recovery fees are recognized on a straight-line basis over their respective contractual subscription 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 subscriptions. 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 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 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 subscriptions 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 subscription, 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 subscription 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 subscriptions and products. Subscriptions sold through resellers are recognized on a straight-line basis over the period the underlying subscriptions 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 subscription plans. | ||||||||||||||||
The Company received one-time up-front payments for implementation services to be performed in connection with its carrier agreements with British Telecom (“BT”) and TELUS Corporation (“TELUS”) during the year ended December 31, 2014. These amounts will be amortized on a straight-line basis over their respective initial contractual terms beginning in 2015 when customer acceptance criteria are met. The BT and TELUS arrangements have initial contractual terms of three to five years, which approximates the estimated average customer life of each respective agreement. Accordingly, the portion of these one-time up-front payments that is estimated to be realized beyond December 31, 2015, or $1,372,000, is included as a component of other long-term liabilities in the consolidated balance sheet. | ||||||||||||||||
Cost of Revenues | ||||||||||||||||
Cost of subscriptions 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 subscriptions 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 subscriptions 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, search engine optimization and online display advertising, as well as more traditional forms of media advertising such as radio and billboards, are expensed as incurred and were $27,110,000, $22,943,000, and $21,915,000 for the years ended December 31, 2014, 2013 and 2012, 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, 2014 and 2013, except for deferred tax assets associated with its subsidiaries in the United Kingdom, the Netherlands and 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 subscriptions 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, 2014 or 2013. | ||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The new guidance is a result of a joint project with the International Accounting Standards Board (the “IASB”) to clarify and converge the revenue recognition principles under U.S. GAAP and IFRS and to develop guidance that would streamline and enhance revenue recognition requirements. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Financial_Statement_Components
Financial Statement Components | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||
Financial Statement Components | Note 2. Financial Statement Components | |||||||
Cash and cash equivalents consisted of the following (in thousands): | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Cash | $ | 12,800 | $ | 34,561 | ||||
Money market funds | 100,382 | 81,817 | ||||||
Total cash and cash equivalents | $ | 113,182 | $ | 116,378 | ||||
Accounts receivable, net consisted of the following (in thousands): | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accounts receivable | $ | 5,935 | $ | 2,192 | ||||
Unbilled accounts receivable | 1,841 | 992 | ||||||
Allowance for doubtful accounts | (125 | ) | (139 | ) | ||||
Accounts receivable, net | $ | 7,651 | $ | 3,045 | ||||
Property and equipment, net consisted of the following (in thousands): | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Computer hardware and software | $ | 43,805 | $ | 30,449 | ||||
Internal-use software development costs | 5,335 | 4,636 | ||||||
Furniture and fixtures | 2,020 | 1,127 | ||||||
Leasehold improvements | 2,870 | 859 | ||||||
Property and equipment, gross | 54,030 | 37,071 | ||||||
Less: accumulated depreciation and amortization | (28,503 | ) | (20,411 | ) | ||||
Property and equipment, net | $ | 25,527 | $ | 16,660 | ||||
Total depreciation and amortization expense was $10,378,000, $8,980,000, and $6,191,000 for the fiscal years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Accrued liabilities consisted of the following (in thousands): | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued compensation and benefits | $ | 7,596 | $ | 5,660 | ||||
Accrued sales, use and telecom related taxes | 5,277 | 3,967 | ||||||
Other accrued expenses | 16,363 | 10,932 | ||||||
Total accrued liabilities | $ | 29,236 | $ | 20,559 | ||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
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 | ||||||||||||||||
31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 100,570 | $ | 94,274 | $ | 6,296 | $ | — | ||||||||
Short-term investments: | ||||||||||||||||
Corporate debt securities | $ | 26,481 | $ | 26,481 | $ | — | $ | — | ||||||||
Commercial paper | $ | 1,998 | $ | — | $ | 1,998 | $ | — | ||||||||
Other assets: | ||||||||||||||||
Certificates of deposit | $ | 630 | $ | — | $ | 630 | $ | — | ||||||||
Balance at | ||||||||||||||||
31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 81,817 | $ | 72,717 | $ | 9,000 | $ | — | ||||||||
Other assets: | ||||||||||||||||
Certificates of deposit | $ | 630 | $ | — | $ | 630 | $ | — | ||||||||
During the third quarter of 2014, the Company purchased investments in commercial paper and corporate debt securities. At December 31, 2014, all investments were designated as available-for-sale and reported at fair value based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in other comprehensive loss. At December 31, 2014, available-for-sale securities consisted of the following (in thousands): | ||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
Corporate debt securities | $ | 26,700 | $ | 45 | $ | (264 | ) | $ | 26,481 | |||||||
Commercial paper | 1,996 | 2 | — | 1,998 | ||||||||||||
Total | $ | 28,696 | $ | 47 | $ | (264 | ) | $ | 28,479 | |||||||
The expected maturities of our investments in available-for-sale securities at December 31, 2014 are shown below (in thousands): | ||||||||||||||||
Available-for-Sale Securities | Amortized Cost | Estimated Fair Value | ||||||||||||||
Due in less than one year | $ | 28,696 | $ | 28,479 | ||||||||||||
Total | $ | 28,696 | $ | 28,479 | ||||||||||||
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. | ||||||||||||||||
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 (September 26, 2013), the date of effectiveness of the Registration Statement for the IPO, 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. | ||||||||||||||||
On December 31, 2013, the Company refinanced a substantial portion of its outstanding debt obligations. Based on borrowing rates available to the Company for loans with similar terms, the stable interest rate environment and considering the Company’s credit risks, management concluded the carrying value of debt approximated fair value at December 31, 2013. At December 31, 2014, the Company estimated the fair value of its debt primarily using an expected present value technique, which is based on observable market inputs using interest rates currently available to companies of similar credit standing for similar terms and remaining maturities, and considering its own credit risk. The estimated fair value of the Company’s current and non-current debt obligations was $25,671,000 at December 31, 2014, compared to its carrying amount of $24,577,000 at that date. If the debt was measured at fair value in the consolidated balance sheets, the Company’s current and non-current debt would be classified in Level 2 of the fair value hierarchy. | ||||||||||||||||
Debt
Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Note 4. Debt | |||||||
Silicon Valley Bank Credit Facility | ||||||||
Under the SVB agreement, the Company has two outstanding growth capital term loans (i.e., “the 2012 term loan” and “the 2013 term loan”), and a revolving line of credit. | ||||||||
The 2012 term loan was borrowed in March 2012 with a principal amount of $8,000,000, which is being repaid in 36 equal monthly installments of principal and interest. Under the 2012 term loan, interest is paid monthly and accrues at a floating rate based on the Company’s option of the (i) prime rate 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 cash balances maintained with SVB. The Company elected the prime rate option and, based on cash balances maintained with SVB at December 31, 2014, the current interest rate is 3.5%. In addition, a final terminal payment equal to 0.5% of the original loan principal, or $40,000, is due at maturity. The remaining principal balance and the final terminal payment are classified as current liabilities in the accompanying consolidated balance sheet because the loan matures in March 2015. As of December 31, 2014, the outstanding principal balance of the 2012 term loan was $667,000. As of December 31, 2014, the unamortized discount on the 2012 term loan was $2,000 which is recorded in the current portion of long-term debt line in the accompanying consolidated balance sheet. | ||||||||
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 “2013 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 previously outstanding debt obligations (borrowed in fiscal years 2012 and 2013 from SVB and TriplePoint Capital). 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 2013 term loan was borrowed on December 31, 2013 with a principal amount of $15,000,000, which is being repaid in 48 equal monthly installments of principal and interest. Interest is due monthly and accrues at a floating rate based on the Company’s option of an annual rate of either the (i) prime rate 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 cash balances maintained with SVB. The Company elected the prime rate option and based on cash balances maintained with SVB at December 31, 2014, the current interest rate is 4.0%. As of December 31, 2014, the outstanding principal balance of the 2013 term loan was $11,563,000. Approximately $7,813,000 of the remaining principal balance is classified as non-current liabilities in the accompanying consolidated balance sheet as this portion of the remaining principal balance is due beyond December 31, 2015. | ||||||||
The revolving line of credit provides for a maximum borrowing of up to $15,000,000 subject to limits based on the outstanding principal balance of the 2012 term loan and recurring subscription revenue amounts as defined in the agreement. The recurring subscription revenue requirement is not expected to limit the amount of borrowings available under the line of credit. Under the line of credit, interest is paid monthly and accrues at a floating rate based on the Company’s option of the (i) prime rate 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 cash balances maintained with SVB. The Company elected the prime rate option and based on cash balances maintained with SVB at December 31, 2014, the current interest rate is 3.5%. All outstanding principal and unpaid interest must be repaid by August 13, 2015. The outstanding principal balance is classified as a current liability in the accompanying consolidated balance sheet because the loan matures in August 2015. As of December 31, 2014, the outstanding principal balance and the available borrowing capacity of the line of credit were $10,778,000 and $3,556,000, respectively. As of December 31, 2014, the unamortized discount on the revolving line of credit was $149,000 which is recorded in the current portion of long-term debt line in the accompanying consolidated balance sheet. | ||||||||
The Company has pledged all of its assets, excluding intellectual property, as collateral to secure its obligations under the SVB agreement. The SVB 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 SVB agreement also contains customary affirmative covenants, 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 agreement, and (ii) maintain minimum EBITDA levels, as determined in accordance with the agreement. On June 17, 2014, the Company adjusted certain financial covenant thresholds to expand its ability to invest in certain foreign subsidiaries. The Company was in compliance with all covenants under its credit agreement with SVB as of December 31, 2014. | ||||||||
TriplePoint Capital Credit Facility | ||||||||
Under the equipment loan and security agreement with TriplePoint, the Company borrowed equipment term loans with aggregate principal of $9,691,000 in August 2012. The equipment term loans are being 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, or $970,000. The remaining principal balance and the final terminal payment are classified as current liabilities in the accompanying consolidated balance sheet because the loan matures in August 2015. As of December 31, 2014, the outstanding principal balance of the TriplePoint equipment term loan was $1,725,000. As of December 31, 2014, the unamortized discount on the revolving line of credit was $5,000 which is recorded in the current portion of long-term debt line in the accompanying consolidated balance sheet. | ||||||||
The TriplePoint equipment loan is securitized by certain hardware and software equipment totaling $9,691,000 that was purchased by the Company prior to the loan draw down in August 2012. The Company has pledged this equipment as collateral to secure its obligations under the equipment loan agreement. The TriplePoint equipment loan and security 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 TriplePoint equipment loan and security agreement also contain customary affirmative covenants, including requirements to, among other things, deliver audited financial statements. On June 17, 2014, the Company adjusted certain financial covenant thresholds to expand its ability to invest in certain foreign subsidiaries. The Company was in compliance with all covenants under its credit agreements with TriplePoint as of December 31, 2014. | ||||||||
The Company’s outstanding balances under its debt agreements as of December 31, 2014 and 2013 were as follows (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
SVB loan and security agreement | $ | 23,008 | $ | 29,111 | ||||
TriplePoint equipment loan agreement | 1,725 | 5,032 | ||||||
Other | — | 500 | ||||||
24,733 | 34,643 | |||||||
Loan discounts | (156 | ) | (416 | ) | ||||
Net carrying value of debt | $ | 24,577 | $ | 34,227 | ||||
Less: Current portion of long-term debt | (16,764 | ) | (9,871 | ) | ||||
Long-term debt | $ | 7,813 | $ | 24,356 | ||||
As of December 31, 2014, future principal payments are scheduled as follows (in thousands): | ||||||||
31-Dec-14 | ||||||||
Year ending December 31, | ||||||||
2015 | $ | 16,920 | ||||||
2016 | 3,750 | |||||||
2017 | 3,750 | |||||||
2018 | 313 | |||||||
$ | 24,733 | |||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments And Contingencies Disclosure [Abstract] | ||||||||
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, 2014, noncancelable leases expire on various dates between 2016 and 2021 and require the following future minimum lease payments by year (in thousands): | ||||||||
Capital Leases | Operating Leases | |||||||
Year ending December 31, | ||||||||
2015 | $ | 581 | $ | 5,609 | ||||
2016 | 397 | 5,747 | ||||||
2017 | 188 | 4,756 | ||||||
2018 | — | 4,271 | ||||||
2019 | — | 3,787 | ||||||
2020 | — | 3,104 | ||||||
2021 | — | 1,866 | ||||||
Total future minimum lease payments | 1,166 | $ | 29,140 | |||||
Less: amount representing interest | (122 | ) | ||||||
Total capital lease obligation | 1,044 | |||||||
Less: Current portion of capital lease obligation | (509 | ) | ||||||
Capital lease obligation | $ | 535 | ||||||
Property and equipment recorded under capital leases consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Total assets acquired under capital lease | $ | 3,466 | $ | 2,317 | ||||
Less: accumulated amortization | (2,129 | ) | (1,693 | ) | ||||
Leased property and equipment, net | $ | 1,337 | $ | 624 | ||||
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 $2,243,000, $1,324,000, and $1,261,000 for the fiscal years ended December 31, 2014, 2013 and 2012, 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, 2014 and 2013, the Company recorded a long-term sales tax liability of $3,953,000, and $3,988,000, 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 $4,178,000 and $3,451,000 is included in accrued liabilities as of December 31, 2014 and 2013, 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, 2014 and 2013, there were no significant ongoing legal matters and the Company did not have any accrued liabilities recorded for such loss contingencies. | ||||||||
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, 2014, 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. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Stockholders' Equity | Note 6. Stockholders’ Equity | |||||||||||
In connection with the Company’s initial public offering (“IPO”), the Company reincorporated in Delaware on September 26, 2013. The Delaware certificate of incorporation provides for two classes of common stock: 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 terms of preferred stock are described below. | ||||||||||||
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 authorizes 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, 2014, there were 100,000,000 shares of preferred stock authorized and no shares issued or outstanding. | ||||||||||||
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): | ||||||||||||
31-Dec-14 | ||||||||||||
Preferred stock | 100,000 | |||||||||||
Class B common stock | 17,789 | |||||||||||
2013 Employee stock purchase plan | 1,505 | |||||||||||
2013 Equity incentive plan: | ||||||||||||
Outstanding options and restricted stock unit awards | 10,897 | |||||||||||
Available for future grants | 7,198 | |||||||||||
137,389 | ||||||||||||
As of December 31, 2014 and 2013, there were 14,893 and 37,075 shares of common stock outstanding related to the early exercise of nonvested options subject to repurchase at the original exercise price 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 Warrant Shares Outstanding and Exercisable | Weighted-Average Exercise price Per Share | Weighted-Average Contractual Term (in Years) | |||||||||
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 2013 TriplePoint 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 2013 TriplePoint 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 2013 TriplePoint 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 2013 TriplePoint Series D warrants became indexed to the Company’s stock and were reclassified as stockholders’ equity. The 2013 TriplePoint 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 2013 TriplePoint 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 2013 TriplePoint 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% | |||||||||||
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||||||
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 | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Cost of subscriptions revenues | $ | 1,294 | $ | 539 | $ | 235 | ||||||||||
Research and development | 3,343 | 1,495 | 837 | |||||||||||||
Sales and marketing | 5,260 | 1,313 | 651 | |||||||||||||
General and administrative | 5,619 | 4,193 | 1,379 | |||||||||||||
Total share-based compensation expense | $ | 15,516 | $ | 7,540 | $ | 3,102 | ||||||||||
A summary of share-based compensation expense by award type follows (in thousands): | ||||||||||||||||
Year Ended December, 31 | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Options | $ | 10,323 | $ | 7,069 | $ | 3,102 | ||||||||||
Employee stock purchase plan rights | 1,628 | 453 | — | |||||||||||||
Restricted stock units | 3,565 | 18 | — | |||||||||||||
Total share-based compensation expense | $ | 15,516 | $ | 7,540 | $ | 3,102 | ||||||||||
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. During the year ended December 31, 2014, a total of 3,112,203 shares of Class A common stock were added to the 2013 Plan in connection with the annual automatic increase provision. | ||||||||||||||||
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 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. On January 29, 2014, the Compensation Committee of the Board of Directors approved an amendment to decrease the contractual term of all equity awards issued from the 2013 Plan from 10 years to 7 years for all awards granted after January 29, 2014. 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, 2014 a total of 7,197,698 shares remain available for grant under the 2013 Plan. | ||||||||||||||||
A summary of option activity under all of the plans at December 31, 2014 and changes during the periods then ended is presented in the following table: | ||||||||||||||||
Weighted- | ||||||||||||||||
Number of | Weighted- | Average | Aggregate | |||||||||||||
Options | Average | Contractual | Intrinsic | |||||||||||||
Outstanding | Exercise Price | Term | Value | |||||||||||||
(in thousands) | Per Share | (in Years) | (in thousands) | |||||||||||||
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 | ||||||||||
Granted | 1,302 | 15.12 | ||||||||||||||
Exercised | (2,673 | ) | 1.97 | |||||||||||||
Canceled/Forfeited | (627 | ) | 7.19 | |||||||||||||
Outstanding at December 31, 2014 | 9,158 | $ | 8.23 | 7.2 | $ | 61,367 | ||||||||||
Vested and expected to vest as of December 31, 2014 | 8,844 | $ | 8.15 | 7.1 | $ | 60,052 | ||||||||||
Exercisable as of December 31, 2014 | 5,026 | $ | 5.78 | 6.6 | $ | 45,387 | ||||||||||
The total intrinsic value of options exercised were as follows (in thousands): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Total intrinsic value of options exercised | $ | 41,454 | $ | 10,261 | $ | 3,134 | ||||||||||
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 has 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 (i.e., the “Simplified Method”). During the fourth quarter of 2014, the Company also began to incorporate its own expectations about future exercise behavior assigning a 25% weighting to the Company specific estimate and a 75% weighting to the Simplified Method estimate. 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. During the fourth quarter of 2014, the Company also began to incorporate its own historical volatility assigning a 25% weighting to the Company specific estimate and a 75% weighting to the historical peer group of similarly traded companies. | ||||||||||||||||
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, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Expected term for employees (in years) | 4.6 | 6.1 | 6.1 | |||||||||||||
Expected term for non-employees (in years) | 7 | 10 | 10 | |||||||||||||
Expected volatility | 48 | % | 54 | % | 61 | % | ||||||||||
Risk-free interest rate | 1.41 | % | 1.68 | % | 0.97 | % | ||||||||||
Expected dividend rate | 0 | % | 0 | % | 0 | % | ||||||||||
Weighted average grant date fair value of employee options | $ | 6.16 | $ | 6.19 | $ | 3.07 | ||||||||||
As of December 31, 2014 and 2013, there was approximately $20,069,000 and $22,439,000 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 2.4 years and 3.0 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. During the year ended December 31, 2014, a total of 622,441 shares of Class A common stock were added to the 2013 ESPP Plan in connection with the annual increase provision. | ||||||||||||||||
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 in 2013 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, 2014, a total of 1,505,340 shares were available for issuance under the ESPP. | ||||||||||||||||
The weighted-average assumptions used to value employee stock purchase plan rights under the Black-Scholes-Merton model and the resulting grant date fair value of employee stock purchase plan rights granted in the periods presented were as follows: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Expected term (in years) | 0.5 | 0.6 | ||||||||||||||
Expected volatility | 50 | % | 40 | % | ||||||||||||
Risk-free interest rate | 0.07 | % | 0.07 | % | ||||||||||||
Expected dividend rate | 0 | % | 0 | % | ||||||||||||
Weighted average grant date fair value of employee options | $ | 3.93 | $ | 5.76 | ||||||||||||
As of December 31, 2014 and 2013, there was approximately $418,000 and $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 and 0.4 years, respectively. | ||||||||||||||||
Restricted Stock Units | ||||||||||||||||
The 2013 Plan provides for the issuance of restricted stock units to employees and consultants. Restricted stock units issued under the 2013 Plan generally vest over four years. A summary of activity of restricted stock units under the 2013 Plan at December 31, 2014 and changes during the periods then ended is presented in the following table: | ||||||||||||||||
Number of | Weighted- | Aggregate | ||||||||||||||
RSUs | Average | Intrinsic | ||||||||||||||
Outstanding | Grant Date Fair | Value | ||||||||||||||
(in thousands) | Value Per Share | (in thousands) | ||||||||||||||
Outstanding at December 31, 2012 | — | $ | — | $ | — | |||||||||||
Granted | 68 | 17.22 | ||||||||||||||
Released | — | — | ||||||||||||||
Canceled/Forfeited | — | — | ||||||||||||||
Outstanding at December 31, 2013 | 68 | $ | 17.22 | $ | 1,251 | |||||||||||
Granted | 1,915 | 15.08 | ||||||||||||||
Released | (110 | ) | 16.82 | |||||||||||||
Canceled/Forfeited | (134 | ) | 17.43 | |||||||||||||
Outstanding at December 31, 2014 | 1,739 | $ | 14.87 | $ | 25,617 | |||||||||||
As of December 31, 2014 and 2013, there was a total of $24,158,000 and $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 3.6 and 3.8 years, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Note 8. Income Taxes | |||||||||||
The provision (benefit) for income taxes consisted of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | — | $ | 28 | ||||||
State | 18 | 3 | 9 | |||||||||
Foreign | 114 | (32 | ) | 111 | ||||||||
Total current | 132 | (29 | ) | 148 | ||||||||
Deferred: | ||||||||||||
Foreign | (35 | ) | (16 | ) | (56 | ) | ||||||
Total income tax expense | $ | 97 | $ | (45 | ) | $ | 92 | |||||
Net loss before provision (benefit) for income taxes consisted of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United states | $ | (50,065 | ) | $ | (41,778 | ) | $ | (33,883 | ) | |||
International | 1,822 | (4,365 | ) | (1,415 | ) | |||||||
Total net loss before provision (benefit) for income taxes | $ | (48,243 | ) | $ | (46,143 | ) | $ | (35,298 | ) | |||
The provision (benefit) for income tax differed from the amounts computed by applying the U.S. federal income tax rate of 34% to pretax loss as a result of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal tax benefit at statutory rate | $ | (16,403 | ) | $ | (15,687 | ) | $ | (12,002 | ) | |||
State tax, net of federal benefit | 12 | 2 | 6 | |||||||||
Research and development credits | (654 | ) | (774 | ) | (620 | ) | ||||||
Share-based compensation | 1,836 | 641 | 534 | |||||||||
Other permanent differences | 211 | 294 | 171 | |||||||||
Foreign tax rate differential | (33 | ) | (20 | ) | (253 | ) | ||||||
Net operating losses not recognized | 15,128 | 15,499 | 12,256 | |||||||||
Total income tax provision (benefit) | $ | 97 | $ | (45 | ) | $ | 92 | |||||
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): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Deferred tax assets | ||||||||||||
Net operating loss and credit carry-forwards | $ | 45,552 | $ | 35,904 | $ | 24,554 | ||||||
Research and development credits | 3,497 | 2,353 | 895 | |||||||||
Sales tax liability | 1,442 | 1,418 | 1,385 | |||||||||
Share-based compensation | 5,560 | 2,247 | — | |||||||||
Accrued liabilities | 4,676 | 2,528 | 2,704 | |||||||||
Gross deferred tax assets | 60,727 | 44,450 | 29,538 | |||||||||
Valuation allowance | (60,405 | ) | (44,032 | ) | (28,847 | ) | ||||||
Total deferred tax assets | 322 | 418 | 691 | |||||||||
Deferred tax liabilities - Property and equipment | (197 | ) | (327 | ) | (616 | ) | ||||||
Net deferred tax assets | $ | 125 | $ | 91 | $ | 75 | ||||||
At December 31, 2014, the Company had net operating loss carry-forwards for federal and state income tax purposes of approximately $140,107,000 and $102,415,000, 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 $2,752,000 and $2,840,000, respectively, available to reduce future income subject to income taxes. The federal research credit carry-forwards will begin to expire in 2027 and the California research credits carry forward indefinitely. As of December 31, 2013, we had federal and state net operating loss carry-forwards of $94,749,000 and $77,941,000, respectively, and federal and state research and development tax credit carry-forwards in the amount of $1,879,000 and $1,851,000, 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, 2014, the Company has provided a valuation allowance against the Company’s U.S. and U.K. net deferred tax assets. The net change in the valuation allowance for the years ended December 31, 2014, 2013 and 2012 was an increase of $16,373,000, $15,185,000 and $12,336,000, 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, 2014 (in thousands): | ||||||||||||
Balance as of December 31, 2012 | $ | 375 | ||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions | 168 | |||||||||||
taken in current year | ||||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions | 390 | |||||||||||
taken in prior year | ||||||||||||
Balance as of December 31, 2013 | 933 | |||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions | 465 | |||||||||||
taken in current year (reduction of deferred tax assets of R&D credit) | ||||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions | 1,217 | |||||||||||
taken in prior year (reduction of deferred tax assets of NOL carryforward) | ||||||||||||
Balance as of December 31, 2014 | $ | 2,615 | ||||||||||
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, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
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, 2014, 2013 and 2012 (in thousands, except per share data): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator | ||||||||||||
Net loss | $ | (48,340 | ) | $ | (46,098 | ) | $ | (35,390 | ) | |||
Denominator | ||||||||||||
Weighted-average common shares for basic and diluted net | 66,818 | 33,155 | 22,353 | |||||||||
loss per share | ||||||||||||
Basic and diluted net loss per share | $ | (0.72 | ) | $ | (1.39 | ) | $ | (1.58 | ) | |||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Shares of common stock issuable upon conversion of | — | — | 30,369 | |||||||||
preferred stock | ||||||||||||
Shares of common stock issuable upon conversion of warrants | — | 502 | 337 | |||||||||
Shares of common stock subject to repurchase | 15 | 37 | 100 | |||||||||
Shares of common stock issuable under equity incentive plans | 10,897 | 11,224 | 8,609 | |||||||||
outstanding | ||||||||||||
Potential common shares excluded from diluted net loss per | 10,912 | 11,763 | 39,415 | |||||||||
share | ||||||||||||
Geographic_Concentrations
Geographic Concentrations | 12 Months Ended |
Dec. 31, 2014 | |
Risks And Uncertainties [Abstract] | |
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, 2014, 2013 and 2012. No other individual country exceeded 10% of total revenues for fiscal years ended December 31, 2014, 2013 and 2012. Property and equipment by geographic location is based on the location of the legal entity that owns the asset. At December 31, 2014 and 2013, more than 87% and 84% of the Company’s property and equipment is located in the United States, respectively. No other individual country exceeded 10% of total property and equipment at December 31, 2014 and 2013. |
401_k_Plan
401 (k) Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |
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, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
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, 2014 and 2013 (in thousands except per share data): | ||||||||||||||||||||||||||||||||
Quarter ended | ||||||||||||||||||||||||||||||||
31-Dec-14 | 30-Sep-14 | 30-Jun-14 | 31-Mar-14 | 31-Dec-13 | 30-Sep-13 | 30-Jun-13 | 31-Mar-13 | |||||||||||||||||||||||||
Consolidated Statement of Operations Data: | ||||||||||||||||||||||||||||||||
Revenues | $ | 61,893 | $ | 56,944 | $ | 52,787 | $ | 48,262 | $ | 45,342 | $ | 41,934 | $ | 37,704 | $ | 35,525 | ||||||||||||||||
Gross profit | 41,972 | 37,539 | 33,244 | 30,359 | 28,190 | 25,966 | 23,042 | 21,788 | ||||||||||||||||||||||||
Operating loss | (9,343 | ) | (10,814 | ) | (12,810 | ) | (12,238 | ) | (10,355 | ) | (8,151 | ) | (13,119 | ) | (9,408 | ) | ||||||||||||||||
Net Loss (1) | (10,120 | ) | (11,986 | ) | (13,330 | ) | (12,904 | ) | (13,365 | ) | (8,852 | ) | (13,619 | ) | (10,262 | ) | ||||||||||||||||
Net loss per share, basic and diluted | $ | (0.15 | ) | $ | (0.18 | ) | $ | (0.20 | ) | $ | (0.20 | ) | $ | (0.22 | ) | $ | (0.36 | ) | $ | (0.60 | ) | $ | (0.45 | ) | ||||||||
-1 | In the fourth quarter of 2013, in connection with a debt refinancing transaction, the Company recorded a $1.8 million loss on early extinguishment of debt, which was classified in interest expense. Refer to Note 4 for additional details. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13. Subsequent Events |
On February 25, 2015, the Company signed an agreement that accelerates the termination date of the lease for its headquarters office located in San Mateo, California from May 31, 2017 to April 30, 2015. The effectiveness of the early termination of the lease is contingent upon a third party entering into a lease agreement with the landlord for the San Mateo office space by February 28, 2015, and obtaining by March 30, 2015 the consent of the landlord’s lender to the early termination. No additional lease payments are imposed by the early termination agreement and, if and when the agreement becomes effective, the Company’s future lease obligation will be reduced. The table of future lease commitments appearing in Note 5 has not been adjusted for any potential reductions in the Company’s future lease obligation under the early termination agreement. | |
The Company has evaluated subsequent events through February 27, 2015, the date the annual consolidated financial statements were issued. |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||||||||||
Public Offerings | Public Offerings | |||||||||||||||
On October 2, 2013, the Company completed an initial public offering (the “IPO”) and sold 8,625,000 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 80,000 shares of Class A common stock sold by selling stockholders, at a price of $13.00 per share. The offer and sale of all of the shares in the IPO were registered under the Securities Act pursuant to a registration statement on Form S-1 (File No. 333-190815) (the “Initial Registration Statement”). 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 $3,888,000. | ||||||||||||||||
On March 11, 2014, the Company completed a secondary public offering and sold 7,991,551 shares of Class A common stock to the public, including 791,551 of the underwriters’ overallotment option and 5,200,000 shares of Class A common stock sold by selling stockholders, at a price of $21.50 per share. The offer and sale of all of the shares in the secondary public offering were registered under the Securities Act pursuant to a registration statement on Form S-1 (File No. 333-194132) (the “Secondary Registration Statement”). The Company received aggregate proceeds of $57,167,000 from the secondary public offering, net of underwriters’ discounts and commissions, but before deduction of offering expenses of approximately $1,050,000. | ||||||||||||||||
The Company did not receive any proceeds from the sale of shares by the selling stockholders. | ||||||||||||||||
Principles of Consolidation | Principles of Consolidation | |||||||||||||||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the consolidated accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||||||
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, Cash Equivalents and Investments in Marketable Securities | Cash, Cash Equivalents and Investments in Marketable Securities | |||||||||||||||
The Company considers highly liquid investments 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. Cash equivalents are stated at cost plus accrued interest, which approximates fair value. | ||||||||||||||||
Management determines the appropriate classification of its investments in marketable securities at the time of purchase and reevaluates such designation at each balance sheet date. At December 31, 2014 the Company’s marketable securities consist of investments in commercial paper and corporate debt securities. At December 31, 2014, all investments were designated as available-for-sale and reported at fair value based either upon quoted prices in active markets, quoted prices in less active markets, or quoted market prices for similar investments, with unrealized gains and losses, net of related tax, if any, included in accumulated other comprehensive loss in the consolidated balance sheet. We may sell these securities at any time for use in current operations or for other purposes, such as consideration for acquisitions, even if they have not yet reached maturity. As a result, all of our investments held at December 31, 2014 were classified as current assets in the accompanying consolidated balance sheet. We determine any realized gains or losses on the sale of marketable securities on a specific identification method, and we record such gains and losses as a component of other income (expense). | ||||||||||||||||
The Company monitors its investment portfolio for potential impairment on a quarterly basis. When the carrying amount of an investment in debt securities exceeds its fair value and the decline in value is determined to be other-than-temporary (i.e., when the Company does not intend to sell the debt securities and it is not more likely than not that the Company will be required to sell the debt securities prior to anticipated recovery of its amortized cost basis), management records an impairment charge to other income (expense), in the amount of the credit loss and the balance, if any, is recorded in accumulated other comprehensive loss in the consolidated balance sheets. No impairment losses have been recognized for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | |||||||||||||||
For the years ended December 31, 2012 and 2013, a significant portion of revenues were realized from credit card transactions with only a small portion of revenues generating accounts receivable. For the year ended December 31, 2014, the portion of revenues generating accounts receivable has increased as the Company has been acquiring larger customers that request credit terms. For all periods presented, 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, 2014, 2013 and 2012: | ||||||||||||||||
Balance at Beginning of Period | Provision, net of Recoveries | Write-offs | Balance at End of Period | |||||||||||||
Year ended December 31, 2012 | $ | 5 | $ | 428 | $ | — | $ | 433 | ||||||||
Year ended December 31, 2013 | 433 | (8 | ) | 286 | 139 | |||||||||||
Year ended December 31, 2014 | 139 | 40 | 54 | 125 | ||||||||||||
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, 2014 and 2013, the Company capitalized $698,000 and $1,317,000 of internal-use software development costs incurred, respectively. The carrying value of internal-use software development costs, net of amortization, was $1,658,000 and $2,325,000 at December 31, 2014 and 2013, 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 useful lives ranging from three to five 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, 2014, 2013 and 2012. | ||||||||||||||||
Concentrations | Concentrations | |||||||||||||||
Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments in marketable securities and accounts receivable. The Company maintains its cash, cash equivalent and investment balances, which may exceed federally insured limits, with financial institutions and corporate entities 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, 2014 and 2013, AT&T, one of our resellers, accounted for 44% and 68% of the Company’s total accounts receivable, respectively. For the year ended December 31, 2014, AT&T accounted for 12% of the Company’s total revenues. For the years ended December 31, 2013 and 2012, 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, 2014, 2013 and 2012, 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 subscriptions revenues and product revenues. The Company’s subscriptions 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 subscriptions 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 subscription 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 subscription plans are recognized as follows: | ||||||||||||||||
· | fixed plan subscription and administrative cost recovery fees are recognized on a straight-line basis over their respective contractual subscription 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 subscriptions. 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 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 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 subscriptions 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 subscription, 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 subscription 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 subscriptions and products. Subscriptions sold through resellers are recognized on a straight-line basis over the period the underlying subscriptions 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 subscription plans. | ||||||||||||||||
The Company received one-time up-front payments for implementation services to be performed in connection with its carrier agreements with British Telecom (“BT”) and TELUS Corporation (“TELUS”) during the year ended December 31, 2014. These amounts will be amortized on a straight-line basis over their respective initial contractual terms beginning in 2015 when customer acceptance criteria are met. The BT and TELUS arrangements have initial contractual terms of three to five years, which approximates the estimated average customer life of each respective agreement. Accordingly, the portion of these one-time up-front payments that is estimated to be realized beyond December 31, 2015, or $1,372,000, is included as a component of other long-term liabilities in the consolidated balance sheet. | ||||||||||||||||
Cost of Revenues | Cost of Revenues | |||||||||||||||
Cost of subscriptions 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 subscriptions 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 subscriptions 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, search engine optimization and online display advertising, as well as more traditional forms of media advertising such as radio and billboards, are expensed as incurred and were $27,110,000, $22,943,000, and $21,915,000 for the years ended December 31, 2014, 2013 and 2012, 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, 2014 and 2013, except for deferred tax assets associated with its subsidiaries in the United Kingdom, the Netherlands and 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 subscriptions 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, 2014 or 2013. | ||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||||||||||||||
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The new guidance is a result of a joint project with the International Accounting Standards Board (the “IASB”) to clarify and converge the revenue recognition principles under U.S. GAAP and IFRS and to develop guidance that would streamline and enhance revenue recognition requirements. Entities have the option of using either a full retrospective or modified retrospective approach for the adoption of the standard. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||||||||||
Changes in Allowance for Doubtful Accounts | Below is a summary of the changes in allowance for doubtful accounts for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||
Balance at Beginning of Period | Provision, net of Recoveries | Write-offs | Balance at End of Period | |||||||||||||
Year ended December 31, 2012 | $ | 5 | $ | 428 | $ | — | $ | 433 | ||||||||
Year ended December 31, 2013 | 433 | (8 | ) | 286 | 139 | |||||||||||
Year ended December 31, 2014 | 139 | 40 | 54 | 125 | ||||||||||||
Financial_Statement_Components1
Financial Statement Components (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Statement Of Financial Position [Abstract] | ||||||||
Components of Cash and Cash Equivalents | Cash and cash equivalents consisted of the following (in thousands): | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Cash | $ | 12,800 | $ | 34,561 | ||||
Money market funds | 100,382 | 81,817 | ||||||
Total cash and cash equivalents | $ | 113,182 | $ | 116,378 | ||||
Components of Accounts Receivable, Net | Accounts receivable, net consisted of the following (in thousands): | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accounts receivable | $ | 5,935 | $ | 2,192 | ||||
Unbilled accounts receivable | 1,841 | 992 | ||||||
Allowance for doubtful accounts | (125 | ) | (139 | ) | ||||
Accounts receivable, net | $ | 7,651 | $ | 3,045 | ||||
Components of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Computer hardware and software | $ | 43,805 | $ | 30,449 | ||||
Internal-use software development costs | 5,335 | 4,636 | ||||||
Furniture and fixtures | 2,020 | 1,127 | ||||||
Leasehold improvements | 2,870 | 859 | ||||||
Property and equipment, gross | 54,030 | 37,071 | ||||||
Less: accumulated depreciation and amortization | (28,503 | ) | (20,411 | ) | ||||
Property and equipment, net | $ | 25,527 | $ | 16,660 | ||||
Components of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued compensation and benefits | $ | 7,596 | $ | 5,660 | ||||
Accrued sales, use and telecom related taxes | 5,277 | 3,967 | ||||||
Other accrued expenses | 16,363 | 10,932 | ||||||
Total accrued liabilities | $ | 29,236 | $ | 20,559 | ||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
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 | ||||||||||||||||
31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 100,570 | $ | 94,274 | $ | 6,296 | $ | — | ||||||||
Short-term investments: | ||||||||||||||||
Corporate debt securities | $ | 26,481 | $ | 26,481 | $ | — | $ | — | ||||||||
Commercial paper | $ | 1,998 | $ | — | $ | 1,998 | $ | — | ||||||||
Other assets: | ||||||||||||||||
Certificates of deposit | $ | 630 | $ | — | $ | 630 | $ | — | ||||||||
Balance at | ||||||||||||||||
31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 81,817 | $ | 72,717 | $ | 9,000 | $ | — | ||||||||
Other assets: | ||||||||||||||||
Certificates of deposit | $ | 630 | $ | — | $ | 630 | $ | — | ||||||||
Components of Available-for-Sale Securities | At December 31, 2014, available-for-sale securities consisted of the following (in thousands): | |||||||||||||||
Available-for-Sale Securities | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
Corporate debt securities | $ | 26,700 | $ | 45 | $ | (264 | ) | $ | 26,481 | |||||||
Commercial paper | 1,996 | 2 | — | 1,998 | ||||||||||||
Total | $ | 28,696 | $ | 47 | $ | (264 | ) | $ | 28,479 | |||||||
Expected Maturities of Investments in Available-for-Sale Securities | ||||||||||||||||
The expected maturities of our investments in available-for-sale securities at December 31, 2014 are shown below (in thousands): | ||||||||||||||||
Available-for-Sale Securities | Amortized Cost | Estimated Fair Value | ||||||||||||||
Due in less than one year | $ | 28,696 | $ | 28,479 | ||||||||||||
Total | $ | 28,696 | $ | 28,479 | ||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Debt | The Company’s outstanding balances under its debt agreements as of December 31, 2014 and 2013 were as follows (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
SVB loan and security agreement | $ | 23,008 | $ | 29,111 | ||||
TriplePoint equipment loan agreement | 1,725 | 5,032 | ||||||
Other | — | 500 | ||||||
24,733 | 34,643 | |||||||
Loan discounts | (156 | ) | (416 | ) | ||||
Net carrying value of debt | $ | 24,577 | $ | 34,227 | ||||
Less: Current portion of long-term debt | (16,764 | ) | (9,871 | ) | ||||
Long-term debt | $ | 7,813 | $ | 24,356 | ||||
Schedule of Maturities of Long-term Debt | As of December 31, 2014, future principal payments are scheduled as follows (in thousands): | |||||||
31-Dec-14 | ||||||||
Year ending December 31, | ||||||||
2015 | $ | 16,920 | ||||||
2016 | 3,750 | |||||||
2017 | 3,750 | |||||||
2018 | 313 | |||||||
$ | 24,733 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments And Contingencies Disclosure [Abstract] | ||||||||
Schedule of Future Minimum Lease Payments for Capital and Operating Leases | As of December 31, 2014, noncancelable leases expire on various dates between 2016 and 2021 and require the following future minimum lease payments by year (in thousands): | |||||||
Capital Leases | Operating Leases | |||||||
Year ending December 31, | ||||||||
2015 | $ | 581 | $ | 5,609 | ||||
2016 | 397 | 5,747 | ||||||
2017 | 188 | 4,756 | ||||||
2018 | — | 4,271 | ||||||
2019 | — | 3,787 | ||||||
2020 | — | 3,104 | ||||||
2021 | — | 1,866 | ||||||
Total future minimum lease payments | 1,166 | $ | 29,140 | |||||
Less: amount representing interest | (122 | ) | ||||||
Total capital lease obligation | 1,044 | |||||||
Less: Current portion of capital lease obligation | (509 | ) | ||||||
Capital lease obligation | $ | 535 | ||||||
Property and Equipment Recorded Under Capital Leases | ||||||||
Property and equipment recorded under capital leases consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Total assets acquired under capital lease | $ | 3,466 | $ | 2,317 | ||||
Less: accumulated amortization | (2,129 | ) | (1,693 | ) | ||||
Leased property and equipment, net | $ | 1,337 | $ | 624 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Schedule of Common Stock Reserved for Issuance | Shares of Class A common stock reserved for future issuance were as follows (in thousands): | |||||||||||
31-Dec-14 | ||||||||||||
Preferred stock | 100,000 | |||||||||||
Class B common stock | 17,789 | |||||||||||
2013 Employee stock purchase plan | 1,505 | |||||||||||
2013 Equity incentive plan: | ||||||||||||
Outstanding options and restricted stock unit awards | 10,897 | |||||||||||
Available for future grants | 7,198 | |||||||||||
137,389 | ||||||||||||
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 Warrant Shares Outstanding and Exercisable | Weighted-Average Exercise price Per Share | Weighted-Average Contractual Term (in Years) | |||||||||
Common stock | 502 | $ | 5.05 | 5.9 | ||||||||
Schedule of Assumptions of Fair Value of Stock Options 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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Expected term for employees (in years) | 4.6 | 6.1 | 6.1 | |||||||||
Expected term for non-employees (in years) | 7 | 10 | 10 | |||||||||
Expected volatility | 48 | % | 54 | % | 61 | % | ||||||
Risk-free interest rate | 1.41 | % | 1.68 | % | 0.97 | % | ||||||
Expected dividend rate | 0 | % | 0 | % | 0 | % | ||||||
Weighted average grant date fair value of employee options | $ | 6.16 | $ | 6.19 | $ | 3.07 | ||||||
Series E Preferred Stock | ||||||||||||
Schedule of Assumptions of Fair Value of Stock Options 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 2013 TriplePoint 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 2013 TriplePoint 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 Stock Options 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 2013 TriplePoint 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 2013 TriplePoint Series D warrants became indexed to the Company’s stock and were reclassified as stockholders’ equity. The 2013 TriplePoint 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 2013 TriplePoint 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 2013 TriplePoint 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% | |||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
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 | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Cost of subscriptions revenues | $ | 1,294 | $ | 539 | $ | 235 | ||||||||||
Research and development | 3,343 | 1,495 | 837 | |||||||||||||
Sales and marketing | 5,260 | 1,313 | 651 | |||||||||||||
General and administrative | 5,619 | 4,193 | 1,379 | |||||||||||||
Total share-based compensation expense | $ | 15,516 | $ | 7,540 | $ | 3,102 | ||||||||||
Summary of Stock Option Activity Plans | A summary of option activity under all of the plans at December 31, 2014 and changes during the periods then ended is presented in the following table: | |||||||||||||||
Weighted- | ||||||||||||||||
Number of | Weighted- | Average | Aggregate | |||||||||||||
Options | Average | Contractual | Intrinsic | |||||||||||||
Outstanding | Exercise Price | Term | Value | |||||||||||||
(in thousands) | Per Share | (in Years) | (in thousands) | |||||||||||||
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 | ||||||||||
Granted | 1,302 | 15.12 | ||||||||||||||
Exercised | (2,673 | ) | 1.97 | |||||||||||||
Canceled/Forfeited | (627 | ) | 7.19 | |||||||||||||
Outstanding at December 31, 2014 | 9,158 | $ | 8.23 | 7.2 | $ | 61,367 | ||||||||||
Vested and expected to vest as of December 31, 2014 | 8,844 | $ | 8.15 | 7.1 | $ | 60,052 | ||||||||||
Exercisable as of December 31, 2014 | 5,026 | $ | 5.78 | 6.6 | $ | 45,387 | ||||||||||
Schedule of Total Intrinsic Value of Options Exercised | The total intrinsic value of options exercised were as follows (in thousands): | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Total intrinsic value of options exercised | $ | 41,454 | $ | 10,261 | $ | 3,134 | ||||||||||
Schedule of Assumptions of Fair Value of Stock Options 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, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Expected term for employees (in years) | 4.6 | 6.1 | 6.1 | |||||||||||||
Expected term for non-employees (in years) | 7 | 10 | 10 | |||||||||||||
Expected volatility | 48 | % | 54 | % | 61 | % | ||||||||||
Risk-free interest rate | 1.41 | % | 1.68 | % | 0.97 | % | ||||||||||
Expected dividend rate | 0 | % | 0 | % | 0 | % | ||||||||||
Weighted average grant date fair value of employee options | $ | 6.16 | $ | 6.19 | $ | 3.07 | ||||||||||
Summary of Assumptions Used to Value Employee Stock Purchase Rights Under the Black-Scholes Model | The weighted-average assumptions used to value employee stock purchase plan rights under the Black-Scholes-Merton model and the resulting grant date fair value of employee stock purchase plan rights granted in the periods presented were as follows: | |||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Expected term (in years) | 0.5 | 0.6 | ||||||||||||||
Expected volatility | 50 | % | 40 | % | ||||||||||||
Risk-free interest rate | 0.07 | % | 0.07 | % | ||||||||||||
Expected dividend rate | 0 | % | 0 | % | ||||||||||||
Weighted average grant date fair value of employee options | $ | 3.93 | $ | 5.76 | ||||||||||||
Summary of Restricted Stock Units Activity | The 2013 Plan provides for the issuance of restricted stock units to employees and consultants. Restricted stock units issued under the 2013 Plan generally vest over four years. A summary of activity of restricted stock units under the 2013 Plan at December 31, 2014 and changes during the periods then ended is presented in the following table: | |||||||||||||||
Number of | Weighted- | Aggregate | ||||||||||||||
RSUs | Average | Intrinsic | ||||||||||||||
Outstanding | Grant Date Fair | Value | ||||||||||||||
(in thousands) | Value Per Share | (in thousands) | ||||||||||||||
Outstanding at December 31, 2012 | — | $ | — | $ | — | |||||||||||
Granted | 68 | 17.22 | ||||||||||||||
Released | — | — | ||||||||||||||
Canceled/Forfeited | — | — | ||||||||||||||
Outstanding at December 31, 2013 | 68 | $ | 17.22 | $ | 1,251 | |||||||||||
Granted | 1,915 | 15.08 | ||||||||||||||
Released | (110 | ) | 16.82 | |||||||||||||
Canceled/Forfeited | (134 | ) | 17.43 | |||||||||||||
Outstanding at December 31, 2014 | 1,739 | $ | 14.87 | $ | 25,617 | |||||||||||
Award Types | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||||
Summary of Share-Based Compensation Expense Recognized to Statements of Operations | A summary of share-based compensation expense by award type follows (in thousands): | |||||||||||||||
Year Ended December, 31 | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Options | $ | 10,323 | $ | 7,069 | $ | 3,102 | ||||||||||
Employee stock purchase plan rights | 1,628 | 453 | — | |||||||||||||
Restricted stock units | 3,565 | 18 | — | |||||||||||||
Total share-based compensation expense | $ | 15,516 | $ | 7,540 | $ | 3,102 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | — | $ | 28 | ||||||
State | 18 | 3 | 9 | |||||||||
Foreign | 114 | (32 | ) | 111 | ||||||||
Total current | 132 | (29 | ) | 148 | ||||||||
Deferred: | ||||||||||||
Foreign | (35 | ) | (16 | ) | (56 | ) | ||||||
Total income tax expense | $ | 97 | $ | (45 | ) | $ | 92 | |||||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United states | $ | (50,065 | ) | $ | (41,778 | ) | $ | (33,883 | ) | |||
International | 1,822 | (4,365 | ) | (1,415 | ) | |||||||
Total net loss before provision (benefit) for income taxes | $ | (48,243 | ) | $ | (46,143 | ) | $ | (35,298 | ) | |||
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 34% to pretax loss as a result of the following (in thousands): | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal tax benefit at statutory rate | $ | (16,403 | ) | $ | (15,687 | ) | $ | (12,002 | ) | |||
State tax, net of federal benefit | 12 | 2 | 6 | |||||||||
Research and development credits | (654 | ) | (774 | ) | (620 | ) | ||||||
Share-based compensation | 1,836 | 641 | 534 | |||||||||
Other permanent differences | 211 | 294 | 171 | |||||||||
Foreign tax rate differential | (33 | ) | (20 | ) | (253 | ) | ||||||
Net operating losses not recognized | 15,128 | 15,499 | 12,256 | |||||||||
Total income tax provision (benefit) | $ | 97 | $ | (45 | ) | $ | 92 | |||||
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): | |||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Deferred tax assets | ||||||||||||
Net operating loss and credit carry-forwards | $ | 45,552 | $ | 35,904 | $ | 24,554 | ||||||
Research and development credits | 3,497 | 2,353 | 895 | |||||||||
Sales tax liability | 1,442 | 1,418 | 1,385 | |||||||||
Share-based compensation | 5,560 | 2,247 | — | |||||||||
Accrued liabilities | 4,676 | 2,528 | 2,704 | |||||||||
Gross deferred tax assets | 60,727 | 44,450 | 29,538 | |||||||||
Valuation allowance | (60,405 | ) | (44,032 | ) | (28,847 | ) | ||||||
Total deferred tax assets | 322 | 418 | 691 | |||||||||
Deferred tax liabilities - Property and equipment | (197 | ) | (327 | ) | (616 | ) | ||||||
Net deferred tax assets | $ | 125 | $ | 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, 2014 (in thousands): | |||||||||||
Balance as of December 31, 2012 | $ | 375 | ||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions | 168 | |||||||||||
taken in current year | ||||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions | 390 | |||||||||||
taken in prior year | ||||||||||||
Balance as of December 31, 2013 | 933 | |||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions | 465 | |||||||||||
taken in current year (reduction of deferred tax assets of R&D credit) | ||||||||||||
Gross amount of increases in unrecognized tax benefits for tax positions | 1,217 | |||||||||||
taken in prior year (reduction of deferred tax assets of NOL carryforward) | ||||||||||||
Balance as of December 31, 2014 | $ | 2,615 | ||||||||||
Basic_and_Diluted_Net_Loss_Per1
Basic and Diluted Net Loss Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
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, 2014, 2013 and 2012 (in thousands, except per share data): | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator | ||||||||||||
Net loss | $ | (48,340 | ) | $ | (46,098 | ) | $ | (35,390 | ) | |||
Denominator | ||||||||||||
Weighted-average common shares for basic and diluted net | 66,818 | 33,155 | 22,353 | |||||||||
loss per share | ||||||||||||
Basic and diluted net loss per share | $ | (0.72 | ) | $ | (1.39 | ) | $ | (1.58 | ) | |||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Shares of common stock issuable upon conversion of | — | — | 30,369 | |||||||||
preferred stock | ||||||||||||
Shares of common stock issuable upon conversion of warrants | — | 502 | 337 | |||||||||
Shares of common stock subject to repurchase | 15 | 37 | 100 | |||||||||
Shares of common stock issuable under equity incentive plans | 10,897 | 11,224 | 8,609 | |||||||||
outstanding | ||||||||||||
Potential common shares excluded from diluted net loss per | 10,912 | 11,763 | 39,415 | |||||||||
share | ||||||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
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, 2014 and 2013 (in thousands except per share data): | |||||||||||||||||||||||||||||||
Quarter ended | ||||||||||||||||||||||||||||||||
31-Dec-14 | 30-Sep-14 | 30-Jun-14 | 31-Mar-14 | 31-Dec-13 | 30-Sep-13 | 30-Jun-13 | 31-Mar-13 | |||||||||||||||||||||||||
Consolidated Statement of Operations Data: | ||||||||||||||||||||||||||||||||
Revenues | $ | 61,893 | $ | 56,944 | $ | 52,787 | $ | 48,262 | $ | 45,342 | $ | 41,934 | $ | 37,704 | $ | 35,525 | ||||||||||||||||
Gross profit | 41,972 | 37,539 | 33,244 | 30,359 | 28,190 | 25,966 | 23,042 | 21,788 | ||||||||||||||||||||||||
Operating loss | (9,343 | ) | (10,814 | ) | (12,810 | ) | (12,238 | ) | (10,355 | ) | (8,151 | ) | (13,119 | ) | (9,408 | ) | ||||||||||||||||
Net Loss (1) | (10,120 | ) | (11,986 | ) | (13,330 | ) | (12,904 | ) | (13,365 | ) | (8,852 | ) | (13,619 | ) | (10,262 | ) | ||||||||||||||||
Net loss per share, basic and diluted | $ | (0.15 | ) | $ | (0.18 | ) | $ | (0.20 | ) | $ | (0.20 | ) | $ | (0.22 | ) | $ | (0.36 | ) | $ | (0.60 | ) | $ | (0.45 | ) | ||||||||
In the fourth quarter of 2013, in connection with a debt refinancing transaction, the Company recorded a $1.8 million 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 | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 02, 2013 | Mar. 11, 2014 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Deferred offering costs | $1,219,000 | $3,720,000 | |||
Proceeds from issuance of common stock | 57,167,000 | 103,309,000 | |||
Impairment losses | 0 | 0 | 0 | ||
Software development cost incurred | 698,000 | 1,317,000 | |||
Internal-use software development costs, net of amortization | 1,658,000 | 2,325,000 | |||
Concentration Risk, Customer | For the years ended December 31, 2013 and 2012, no single customer accounted for greater than 10% of the Companybs total revenues. | ||||
Advertising Expense | 27,110,000 | 22,943,000 | 21,915,000 | ||
TELUS And BT | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
One time upfront payment | 1,372,000 | ||||
Accounts receivable | Customer A | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 44.00% | 68.00% | |||
Revenues | Customer A | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 12.00% | ||||
Minimum | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Contractual arrangement subscriptions period | 1 month | ||||
Minimum | TELUS And BT | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
TELUS and BT transaction agreement initial, term years | 3 years | ||||
Maximum | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Contractual arrangement subscriptions period | 3 years | ||||
Maximum | TELUS And BT | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
TELUS and BT transaction agreement initial, term years | 5 years | ||||
Furniture and Fixtures | Minimum | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and Equipment, useful lives | 3 years | ||||
Furniture and Fixtures | Maximum | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and Equipment, useful lives | 5 years | ||||
Computer Hardware and Software | Minimum | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and Equipment, useful lives | 3 years | ||||
Computer Hardware and Software | Maximum | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and Equipment, useful lives | 5 years | ||||
Internal-use software development costs | Minimum | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Amortized useful lives | 3 years | ||||
Internal-use software development costs | Maximum | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Amortized useful lives | 4 years | ||||
Class A common stock | Initial Public Offering | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Common stock, shares issued | 8,625,000 | ||||
Sale of stock, price per share | $13 | ||||
Proceeds from issuance of initial public offering | 103,309,000 | ||||
Deferred offering costs | 3,888,000 | ||||
Class A common stock | Secondary Public Offering | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Common stock, shares issued | 7,991,551 | ||||
Sale of stock, price per share | $21.50 | ||||
Deferred offering costs | 1,050,000 | ||||
Proceeds from issuance of common stock | $57,167,000 | ||||
Overallotment Option | Class A common stock | Initial Public Offering | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Common stock, shares issued | 1,125,000 | ||||
Overallotment Option | Class A common stock | Secondary Public Offering | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Common stock, shares issued | 791,551 | ||||
Selling Stockholders | Class A common stock | Initial Public Offering | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Common stock, shares issued | 80,000 | ||||
Selling Stockholders | Class A common stock | Secondary Public Offering | |||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Common stock, shares issued | 5,200,000 |
Changes_in_Allowance_for_Doubt
Changes in Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | |||
Balance at Beginning of Period | $139 | $433 | $5 |
Provision, net of Recoveries | 40 | -8 | 428 |
Write-offs | 54 | 286 | |
Balance at End of Period | $125 | $139 | $433 |
Components_of_Cash_and_Cash_Eq
Components of Cash and Cash Equivalents (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash And Cash Equivalents [Abstract] | ||||
Cash | $12,800 | $34,561 | ||
Money market funds | 100,382 | 81,817 | ||
Total cash and cash equivalents | $113,182 | $116,378 | $37,864 | $13,577 |
Components_of_Accounts_Receiva
Components of Accounts Receivable, Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Receivables [Abstract] | ||||
Accounts receivable | $5,935 | $2,192 | ||
Unbilled accounts receivable | 1,841 | 992 | ||
Allowance for doubtful accounts | -125 | -139 | -433 | -5 |
Accounts receivable, net | $7,651 | $3,045 |
Components_of_Property_and_Equ
Components of Property and Equipment, Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $54,030 | $37,071 |
Less: accumulated depreciation and amortization | -28,503 | -20,411 |
Property and equipment, net | 25,527 | 16,660 |
Computer Hardware and Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 43,805 | 30,449 |
Internal-use software development costs | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 5,335 | 4,636 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,020 | 1,127 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $2,870 | $859 |
Financial_Statement_Components2
Financial Statement Components - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | |||
Depreciation and amortization | $10,378 | $8,980 | $6,191 |
Components_of_Accrued_Liabilit
Components of Accrued Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ||
Accrued compensation and benefits | $7,596 | $5,660 |
Accrued sales, use and telecom related taxes | 5,277 | 3,967 |
Other accrued expenses | 16,363 | 10,932 |
Total accrued liabilities | $29,236 | $20,559 |
Fair_Value_of_Assets_Carried_a
Fair Value of Assets Carried at Fair Value (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | $28,479 | |
Fair Value, Measurements, Recurring | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Money market funds | 100,570 | 81,817 |
Fair Value, Measurements, Recurring | Money market funds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Money market funds | 94,274 | 72,717 |
Fair Value, Measurements, Recurring | Money market funds | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Money market funds | 6,296 | 9,000 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 26,481 | |
Fair Value, Measurements, Recurring | Corporate debt securities | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 26,481 | |
Fair Value, Measurements, Recurring | Commercial paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,998 | |
Fair Value, Measurements, Recurring | Commercial paper | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,998 | |
Fair Value, Measurements, Recurring | Certificates of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Certificates of deposit | 630 | 630 |
Fair Value, Measurements, Recurring | Certificates of deposit | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Certificates of deposit | $630 | $630 |
Components_of_AvailableforSale
Components of Available-for-Sale Securities (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Available-for-Sale Securities, Amortized Cost | $28,696 |
Available-for-Sale Securities, Gross Unrealized Gains | 47 |
Available-for-Sale Securities, Gross Unrealized Losses | -264 |
Available-for-Sale Securities, Estimated Fair Value | 28,479 |
Corporate debt securities | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Available-for-Sale Securities, Amortized Cost | 26,700 |
Available-for-Sale Securities, Gross Unrealized Gains | 45 |
Available-for-Sale Securities, Gross Unrealized Losses | -264 |
Available-for-Sale Securities, Estimated Fair Value | 26,481 |
Commercial paper | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Available-for-Sale Securities, Amortized Cost | 1,996 |
Available-for-Sale Securities, Gross Unrealized Gains | 2 |
Available-for-Sale Securities, Estimated Fair Value | $1,998 |
Expected_Maturities_of_Investm
Expected Maturities of Investment in Available-for-Sale Securities (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Available-for-Sale Securities, Amortized Cost | |
Due in less than one year, Amortized Cost | $28,696 |
Total, Amortized Cost | 28,696 |
Available-for-Sale Securities, Estimated Fair Value | |
Due in less than one year, Estimated Fair Value | 28,479 |
Total, Estimated Fair Value | $28,479 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 26, 2013 | Aug. 31, 2013 | Jun. 30, 2013 |
Fair Value Inputs Liabilities Quantitative Information [Line Items] | |||||
Fair value of debt obligation | $25,671,000 | ||||
Carrying value of debt obligation | 24,577,000 | 34,227,000 | |||
Warrants issued at August 2013 | |||||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | |||||
Fair value of warrants | 500,000 | 495,000 | |||
Warrants issued at June 2013 | |||||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | |||||
Fair value of warrants | $320,000 | $265,000 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2012 | Mar. 31, 2012 | |
Installment | Installment | ||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding balance of term loan | $34,643,000 | $24,733,000 | $34,643,000 | $34,643,000 | $34,643,000 | ||||
Unamortized Discount | 416,000 | 156,000 | 416,000 | 416,000 | 416,000 | ||||
The loss which has been charged to interest expense | -1,800,000 | ||||||||
Interest expense | 2,007,000 | 5,384,000 | 1,503,000 | ||||||
Long-term debt | 24,356,000 | 7,813,000 | 24,356,000 | 24,356,000 | 24,356,000 | ||||
Silicon Valley Bank Aug 2013 Mezzanine Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan | 15,000,000 | ||||||||
TriplePoint 2012 Capital Growth Loan (part 1) | |||||||||
Debt Instrument [Line Items] | |||||||||
The loss which has been charged to interest expense | 1,833,000 | ||||||||
Non-cash interest expense | 1,342,000 | ||||||||
Interest expense | 491,000 | ||||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate on debt | 3.50% | ||||||||
Unamortized Discount | 149,000 | ||||||||
Debt instrument maturity date, month and year | 2015-08 | ||||||||
Revolving line of credit, maximum borrowing amount | 15,000,000 | ||||||||
Debt instrument maturity date | 13-Aug-15 | ||||||||
Borrowing under the revolving line of credit facility | 10,778,000 | ||||||||
Line of credit, available borrowing capacity | 3,556,000 | ||||||||
Revolving Credit Facility | Required Cash Balances Maintained With Silicon Valley Bank | Prime Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of margin | 0.25% | ||||||||
Revolving Credit Facility | Required Cash Balances Maintained With Silicon Valley Bank | LIBOR Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of margin | 3.25% | ||||||||
Revolving Credit Facility | Required Cash Balances Not Maintained With Silicon Valley Bank | Prime Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of margin | 0.50% | ||||||||
Revolving Credit Facility | Required Cash Balances Not Maintained With Silicon Valley Bank | LIBOR Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of margin | 3.50% | ||||||||
Triple Point Equipment Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of monthly installments for principal and interest payment | 36 | ||||||||
Percentage of final terminal payment of original loan principal at maturity | 10.00% | ||||||||
Final terminal payment due at maturity | 970,000 | ||||||||
Outstanding balance of term loan | 1,725,000 | ||||||||
Unamortized Discount | 5,000 | ||||||||
Debt instrument maturity date, month and year | 2015-08 | ||||||||
Term loan | 9,691,000 | 9,691,000 | |||||||
Term loan fixed interest rate | 5.75% | 5.75% | |||||||
Amount of equipment pledged as collateral | 9,691,000 | 9,691,000 | |||||||
Silicon Valley Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding balance of term loan | 29,111,000 | 23,008,000 | 29,111,000 | 29,111,000 | 29,111,000 | ||||
Silicon Valley Bank | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt covenant requirement | 10,000,000 | ||||||||
Silicon Valley Bank | 2012 Capital Growth Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan | 8,000,000 | ||||||||
Number of monthly installments for principal and interest payment | 36 | ||||||||
Interest rate on debt | 3.50% | ||||||||
Percentage of final terminal payment of original loan principal at maturity | 0.50% | ||||||||
Final terminal payment due at maturity | 40,000 | ||||||||
Outstanding balance of term loan | 667,000 | ||||||||
Unamortized Discount | 2,000 | ||||||||
Debt instrument maturity date, month and year | 2015-03 | ||||||||
Silicon Valley Bank | 2012 Capital Growth Term Loan | Required Cash Balances Maintained With Silicon Valley Bank | Prime Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of margin | 0.25% | ||||||||
Silicon Valley Bank | 2012 Capital Growth Term Loan | Required Cash Balances Maintained With Silicon Valley Bank | LIBOR Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of margin | 3.25% | ||||||||
Silicon Valley Bank | 2012 Capital Growth Term Loan | Required Cash Balances Not Maintained With Silicon Valley Bank | Prime Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of margin | 0.50% | ||||||||
Silicon Valley Bank | 2012 Capital Growth Term Loan | Required Cash Balances Not Maintained With Silicon Valley Bank | LIBOR Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of margin | 3.50% | ||||||||
Silicon Valley Bank | 2013 Capital Growth Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan | 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | |||||
Number of monthly installments for principal and interest payment | 48 | ||||||||
Interest rate on debt | 4.00% | ||||||||
Outstanding balance of term loan | 11,563,000 | ||||||||
Long-term debt | $7,813,000 | ||||||||
Debt instrument, maturity, description | due beyond December 31, 2015 | ||||||||
Silicon Valley Bank | 2013 Capital Growth Term Loan | Required Cash Balances Maintained With Silicon Valley Bank | Prime Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of margin | 0.75% | ||||||||
Silicon Valley Bank | 2013 Capital Growth Term Loan | Required Cash Balances Maintained With Silicon Valley Bank | LIBOR Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of margin | 3.75% | ||||||||
Silicon Valley Bank | 2013 Capital Growth Term Loan | Required Cash Balances Not Maintained With Silicon Valley Bank | Prime Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of margin | 1.00% | ||||||||
Silicon Valley Bank | 2013 Capital Growth Term Loan | Required Cash Balances Not Maintained With Silicon Valley Bank | LIBOR Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of margin | 4.00% |
Debt_Components_of_Debt_Instru
Debt - Components of Debt Instrument (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $24,733,000 | $34,643,000 |
Loan discounts | -156,000 | -416,000 |
Net carrying value of debt | 24,577,000 | 34,227,000 |
Less: Current portion of long-term debt | -16,764,000 | -9,871,000 |
Long-term debt | 7,813,000 | 24,356,000 |
Silicon Valley Bank | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 23,008,000 | 29,111,000 |
Triple Point Equipment Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1,725,000 | 5,032,000 |
Other loan agreement | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $500,000 |
Debt_Schedule_of_Future_Princi
Debt - Schedule of Future Principal Payments of Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $16,920 | |
2016 | 3,750 | |
2017 | 3,750 | |
2018 | 313 | |
Long-term Debt, Gross | $24,733 | $34,643 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Capital and Operating Leases (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Capital leases | ||
Capital leases due in 2015 | $581 | |
Capital leases due in 2016 | 397 | |
Capital leases due in 2017 | 188 | |
Total future minimum lease payments | 1,166 | |
Less: amount representing interest | -122 | |
Total capital lease obligation | 1,044 | |
Less: Current portion of capital lease obligation | -509 | -347 |
Capital lease obligation | 535 | 247 |
Operating leases | ||
Operating leases due in 2015 | 5,609 | |
Operating leases due in 2016 | 5,747 | |
Operating leases due in 2017 | 4,756 | |
Operating leases due in 2018 | 4,271 | |
Operating leases due in 2019 | 3,787 | |
Operating leases due in 2020 | 3,104 | |
Operating leases due in 2021 | 1,866 | |
Total future minimum lease payments | $29,140 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Property and Equipment Recorded under Capital Leases (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ||
Total assets acquired under capital lease | $3,466 | $2,317 |
Less: accumulated amortization | -2,129 | -1,693 |
Leased property and equipment, net | $1,337 | $624 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Legal_Matter | Legal_Matter | ||
Commitments And Contingencies Disclosure [Abstract] | |||
Total rent expense | $2,243,000 | $1,324,000 | $1,261,000 |
Long-term sales tax liability | 3,953,000 | 3,988,000 | |
Current sales tax liability for non-contingent amounts | 4,178,000 | 3,451,000 | |
Accrued liabilities recorded for loss contingencies | 0 | 0 | |
Number of ongoing legal matters | 0 | 0 | |
Contingent liabilities related to employment agreement | $0 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Aug. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | |
Stockholders Equity Note Disclosure [Line Items] | ||||
Preferred stock, par value | $0.00 | |||
Preferred stock, shares authorized | 100,000,000 | |||
Preferred stock, shares issued | 0 | |||
Preferred stock, shares outstanding | 0 | |||
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) | |||
Year of anniversary | 7 years | |||
Anniversary Closing Date of the IPO | 2-Oct-20 | |||
Unamortized Discount | $156,000 | $416,000 | ||
Early Exercises of Nonvested Options | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Common stock outstanding related to the early exercise of nonvested options | 14,893 | 37,075 | ||
Class A common stock | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Common stock, par or stated value per share | $0.00 | $0.00 | ||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | ||
Class B common stock | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Common stock, par or stated value per share | $0.00 | $0.00 | ||
Common stock, shares authorized | 250,000,000 | 250,000,000 | ||
Percentage of written consent of shareholders | 67.00% | |||
Series E Preferred Stock | Silicon Valley Bank Aug 2013 Mezzanine Term Loan | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Issuance of warrants to purchase preferred stock | 90,324 | |||
Warrants, exercise price | $9.68 | |||
Unamortized Discount | 866,000 | |||
Series E Preferred Stock | TriplePoint Aug 2013 Capital Growth Loan (part III) | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Issuance of warrants to purchase preferred stock | 51,614 | |||
Unamortized Discount | 495,000 | |||
Series E Preferred Stock | TriplePoint Aug 2013 Capital Growth Loan (part III) | Maximum | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Warrants, exercise price | $9.68 | |||
Series D Preferred Stock | TriplePoint June 2013 Capital Growth Loan (part II) | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Issuance of warrants to purchase preferred stock | 33,192 | |||
Unamortized Discount | 265,000 | |||
Term loan | $4,000,000 | |||
Series D Preferred Stock | TriplePoint June 2013 Capital Growth Loan (part II) | Maximum | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Warrants, exercise price | $6.03 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2014 |
Class Of Stock [Line Items] | |
Common stock reserved for future issuance | 137,389,000 |
2013 Equity incentive plan | |
Class Of Stock [Line Items] | |
Outstanding options and restricted stock unit awards | 10,897,000 |
Available for future grants | 7,197,698 |
2013 Employee stock purchase plan | |
Class Of Stock [Line Items] | |
Common stock reserved for future issuance | 1,505,000 |
Available for future grants | 1,505,340 |
Class B common stock | |
Class Of Stock [Line Items] | |
Common stock reserved for future issuance | 17,789,000 |
Preferred Stock | |
Class Of Stock [Line Items] | |
Common stock reserved for future issuance | 100,000,000 |
Stockholders_Equity_Summary_of1
Stockholders' 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Weighted-Average Exercise price Per Share | $8.23 | $5.87 | $2.89 | $1.14 |
Weighted-Average Contractual Term (in Years) | 7 years 2 months 12 days | 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 |
Stockholders_Equity_Summary_of2
Stockholders' Equity - Summary of Black-Scholes Options Pricing Model (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Series E Preferred Stock | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Dividend yield | 0.00% |
Series E Preferred Stock | Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Expected volatility | 58.00% |
Expected life in years | 9 years 10 months 24 days |
Risk free interest rate | 2.64% |
Series E Preferred Stock | Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Expected volatility | 60.00% |
Expected life in years | 10 years |
Risk free interest rate | 2.71% |
Series D Preferred Stock | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Dividend yield | 0.00% |
Series D Preferred Stock | Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Expected volatility | 55.00% |
Expected life in years | 6 years 9 months 18 days |
Risk free interest rate | 1.91% |
Series D Preferred Stock | Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Expected volatility | 58.00% |
Expected life in years | 7 years |
Risk free interest rate | 2.64% |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $15,516 | $7,540 | $3,102 |
Cost of Subscriptions Revenues | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 1,294 | 539 | 235 |
Research and Development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 3,343 | 1,495 | 837 |
Sales and Marketing | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 5,260 | 1,313 | 651 |
General and Administrative | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $5,619 | $4,193 | $1,379 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | $15,516 | $7,540 | $3,102 |
Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | 10,323 | 7,069 | 3,102 |
Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | 3,565 | 18 | |
Employee Stock Purchase Plan Rights | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | $1,628 | $453 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 137,389,000 | 137,389,000 | ||
Estimate expected weighting percentage | 75.00% | |||
Expected dividend rate | 0.00% | 0.00% | 0.00% | |
2013 Employee stock purchase plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 1,505,000 | 1,505,000 | ||
Available for future grants | 1,505,340 | 1,505,340 | ||
Expected dividend rate | 0.00% | 0.00% | ||
Unrecognized share-based compensation expense, remaining weighted-average vesting periods | 4 months 24 days | 4 months 24 days | ||
Eligible compensation under the Employee Stock Purchase Plan | 15.00% | 15.00% | ||
Eligible compensation under the Employee Stock Purchase Plan, amount | 25 | |||
Purchase of maximum shares by employees under Employee Stock Purchase Plan | 3,000 | |||
Unrecognized share-based compensation expense | 418 | 418 | 728 | |
2013 Employee stock purchase plan | 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% | |||
Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense | 20,069 | 20,069 | 22,439 | |
Unrecognized share-based compensation expense, remaining weighted-average vesting periods | 2 years 4 months 24 days | 3 years | ||
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period contractual term | 4 years | |||
Restricted Stock Units (RSUs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense, remaining weighted-average vesting periods | 3 years 7 months 6 days | 3 years 9 months 18 days | ||
Unrecognized share-based compensation expense | 24,158 | 24,158 | 890 | |
Company Specific Estimate | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Estimate expected weighting percentage | 25.00% | |||
Simplified Method Estimate | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Estimate expected weighting percentage | 75.00% | |||
Class A common stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock, shares outstanding | 50,770,000 | 50,770,000 | 9,201,000 | |
Class A common stock | 2013 Employee stock purchase plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 1,250,000 | 1,250,000 | ||
Common stock, shares outstanding | 1,250,000 | 1,250,000 | ||
Percentage of outstanding shares of common stock | 1.00% | |||
Common stock shares, additional | 622,441 | |||
2013 Equity incentive plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of outstanding shares of common stock | 5.00% | |||
Graded vesting schedule, number of years continuous service | 4 years | |||
Contractual term | 10 years | |||
Available for future grants | 7,197,698 | 7,197,698 | ||
Vesting period contractual term | 7 years | |||
2013 Equity incentive plan | Previously Reported | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period contractual term | 10 years | |||
2013 Equity incentive plan | Class A common stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 6,200,000 | 6,200,000 | ||
Common stock, shares outstanding | 6,200,000 | 6,200,000 | ||
Common stock shares, additional | 3,112,203 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Number of Options Outstanding | ||||
Number of Options Outstanding, Beginning Balance | 11,156 | 8,609 | 5,621 | |
Number of Options Outstanding, Granted | 1,302 | 3,856 | 4,369 | |
Number of Options Outstanding, Exercised | -2,673 | -607 | -484 | |
Number of Options Outstanding, Canceled/Forfeited | -627 | -702 | -897 | |
Number of Options Outstanding, Ending Balance | 9,158 | 11,156 | 8,609 | 5,621 |
Number of Options Outstanding, Vested and expected to vest | 8,844 | |||
Number of Options Outstanding, Exercisable | 5,026 | |||
Weighted-Average Exercise Price Per Share | ||||
Weighted Average Exercise Price Per Share, Beginning Balance | $5.87 | $2.89 | $1.14 | |
Weighted Average Exercise Price Per Share, Granted | $15.12 | $11.54 | $4.91 | |
Weighted Average Exercise Price Per Share, Exercised | $1.97 | $1.47 | $1.15 | |
Weighted Average Exercise Price Per Share, Canceled/Forfeited | $7.19 | $4.31 | $2.18 | |
Weighted Average Exercise Price Per Share, Ending Balance | $8.23 | $5.87 | $2.89 | $1.14 |
Weighted Average Exercise Price Per Share, Vested and expected to vest | $8.15 | |||
Weighted Average Exercise Price Per Share, Exercisable | $5.78 | |||
Weighted-Average Contractual Term | ||||
Weighted-Average Contractual Term | 7 years 2 months 12 days | 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 1 month 6 days | |||
Weighted-Average Contractual Term, Exercisable | 6 years 7 months 6 days | |||
Aggregate Intrinsic Value | ||||
Aggregate Intrinsic Value, Beginning Balance | $139,484 | $40,705 | $8,917 | |
Aggregate Intrinsic Value, Ending Balance | 61,367 | 139,484 | 40,705 | 8,917 |
Aggregate Intrinsic Value, Vested and expected to vest | 60,052 | |||
Aggregate Intrinsic Value, Exercisable | $45,387 |
ShareBased_Compensation_Total_
Share-Based Compensation - Total Intrinsic Value of Options Exercised (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Total intrinsic value of options exercised | $41,454 | $10,261 | $3,134 |
ShareBased_Compensation_Weight
Share-Based Compensation - Weighted Average Assumptions Used to Fair Value of Stock Options Granted (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 48.00% | 54.00% | 61.00% |
Risk-free interest rate | 1.41% | 1.68% | 0.97% |
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 7 months 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Weighted average grant date fair value of employee options | 6.16 | 6.19 | 3.07 |
Non Employee Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 7 years | 10 years | 10 years |
ShareBased_Compensation_Summar3
Share-Based Compensation - Summary of Assumptions Used to Value Employee Stock Purchase Rights Under the Black-Scholes Model (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 48.00% | 54.00% | 61.00% |
Risk-free interest rate | 1.41% | 1.68% | 0.97% |
Expected dividend rate | 0.00% | 0.00% | 0.00% |
2013 Employee stock purchase plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 7 months 6 days | |
Expected volatility | 50.00% | 40.00% | |
Risk-free interest rate | 0.07% | 0.07% | |
Expected dividend rate | 0.00% | 0.00% | |
Weighted average grant date fair value of employee options | 3.93 | 5.76 |
ShareBased_Compensation_Summar4
Share-Based Compensation - Summary of Restricted Stock Units Activity (Detail) (Restricted Stock Units, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of RSUs Outstanding, Beginning Balance | 68 | |
Number of RSUs Outstanding, Granted | 1,915 | 68 |
Number of RSUs Outstanding, Released | -110 | |
Number of RSUs Outstanding, Canceled/Forfeited | -134 | |
Number of RSUs Outstanding, Ending Balance | 1,739 | 68 |
Weighted Average Grant Date Fair Value Per Share, Beginning Balance | $17.22 | |
Weighted Average Grant Date Fair Value Per Share, Granted | $15.08 | $17.22 |
Weighted Average Grant Date Fair Value Per Share, Released | $16.82 | |
Weighted Average Grant Date Fair Value Per Share, Canceled/Forfeited | $17.43 | |
Weighted Average Grant Date Fair Value Per Share, Ending Balance | $14.87 | $17.22 |
Aggregate Intrinsic Value, Beginning Balance | $1,251 | |
Aggregate Intrinsic Value, Ending Balance | $25,617 | $1,251 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $28 | ||
State | 18 | 3 | 9 |
Foreign | 114 | -32 | 111 |
Total current | 132 | -29 | 148 |
Deferred: | |||
Foreign | -35 | -16 | -56 |
Total income tax provision (benefit) | $97 | ($45) | $92 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
United states | ($50,065) | ($41,778) | ($33,883) |
International | 1,822 | -4,365 | -1,415 |
Loss before provision (benefit) for income taxes | ($48,243) | ($46,143) | ($35,298) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | |||
Statutory federal income tax rate | 34.00% | ||
Net operating loss carry-forwards for federal income tax, expiration period | 2023 | ||
Net operating loss carry-forwards for state income tax, expiration period | 2014 | ||
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 | $16,373 | $15,185 | $12,336 |
Minimum | |||
Income Taxes [Line Items] | |||
Cumulative ownership change percentage | 50.00% | ||
Federal | |||
Income Taxes [Line Items] | |||
Net operating loss carry-forwards | 140,107 | 94,749 | |
Research credit carry-forwards for tax purposes, expiration period | 2027 | ||
California | |||
Income Taxes [Line Items] | |||
Net operating loss carry-forwards | 102,415 | 77,941 | |
Research credit carry-forwards | Federal | |||
Income Taxes [Line Items] | |||
Research credit carry-forwards for tax purposes | 2,752 | 1,879 | |
Research credit carry-forwards | California | |||
Income Taxes [Line Items] | |||
Research credit carry-forwards for tax purposes | $2,840 | $1,851 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal tax benefit at statutory rate | ($16,403) | ($15,687) | ($12,002) |
State tax, net of federal benefit | 12 | 2 | 6 |
Research and development credits | -654 | -774 | -620 |
Share-based compensation | 1,836 | 641 | 534 |
Other permanent differences | 211 | 294 | 171 |
Foreign tax rate differential | -33 | -20 | -253 |
Net operating losses not recognized | 15,128 | 15,499 | 12,256 |
Total income tax provision (benefit) | $97 | ($45) | $92 |
Schedule_of_Deferred_Income_Ta
Schedule of Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred tax assets | |||
Net operating loss and credit carry-forwards | $45,552 | $35,904 | $24,554 |
Research and development credits | 3,497 | 2,353 | 895 |
Sales tax liability | 1,442 | 1,418 | 1,385 |
Share-based compensation | 5,560 | 2,247 | |
Accrued liabilities | 4,676 | 2,528 | 2,704 |
Gross deferred tax assets | 60,727 | 44,450 | 29,538 |
Valuation allowance | -60,405 | -44,032 | -28,847 |
Total deferred tax assets | 322 | 418 | 691 |
Deferred tax liabilities - Property and equipment | -197 | -327 | -616 |
Net deferred tax assets | $125 | $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, 2014 |
Income Taxes [Line Items] | ||
Beginning balance | $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 | |
Ending balance | 933 | 2,615 |
R&D Credit | ||
Income Taxes [Line Items] | ||
Gross amount of increases in unrecognized tax benefits for tax positions taken in current year | 465 | |
NOL Carryforward | ||
Income Taxes [Line Items] | ||
Gross amount of increases in unrecognized tax benefits for tax positions taken in prior year | $1,217 |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Numerator | |||||||||||||||||||
Net loss | ($10,120) | [1] | ($11,986) | [1] | ($13,330) | [1] | ($12,904) | [1] | ($13,365) | [1] | ($8,852) | [1] | ($13,619) | [1] | ($10,262) | [1] | ($48,340) | ($46,098) | ($35,390) |
Denominator | |||||||||||||||||||
Weighted-average common shares for basic and diluted net loss per share | 66,818 | 33,155 | 22,353 | ||||||||||||||||
Basic and diluted net loss per share | ($0.15) | ($0.18) | ($0.20) | ($0.20) | ($0.22) | ($0.36) | ($0.60) | ($0.45) | ($0.72) | ($1.39) | ($1.58) | ||||||||
[1] | In the fourth quarter of 2013, in connection with a debt refinancing transaction, the Company recorded a $1.8 million 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential common shares excluded from diluted net loss per share | 10,912 | 11,763 | 39,415 |
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 | ||
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 | |
Repurchase Common Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential common shares excluded from diluted net loss per share | 15 | 37 | 100 |
Equity Incentive Plans | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential common shares excluded from diluted net loss per share | 10,897 | 11,224 | 8,609 |
Geographic_Concentrations_Addi
Geographic Concentrations - Additional Information (Detail) (Geographic Concentration Risk) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Foreign Countries | Sales Revenue, Segment | |||
Concentration Risk [Line Items] | |||
Number of foreign countries representing more than ten percent | 0 | 0 | 0 |
Foreign Countries | Property, Plant and Equipment | |||
Concentration Risk [Line Items] | |||
Number of foreign countries representing more than ten percent | 0 | 0 | |
Minimum | United States | Sales Revenue, Segment | |||
Concentration Risk [Line Items] | |||
Concentration risk | 90.00% | 90.00% | 90.00% |
Minimum | United States | Property, Plant and Equipment | |||
Concentration Risk [Line Items] | |||
Concentration risk | 87.00% | 84.00% |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Consolidated Statement of Operations Data: | |||||||||||||||||||
Revenues | $61,893 | $56,944 | $52,787 | $48,262 | $45,342 | $41,934 | $37,704 | $35,525 | $219,887 | $160,505 | $114,526 | ||||||||
Gross profit | 41,972 | 37,539 | 33,244 | 30,359 | 28,190 | 25,966 | 23,042 | 21,788 | 143,114 | 98,986 | 69,623 | ||||||||
Operating loss | -9,343 | -10,814 | -12,810 | -12,238 | -10,355 | -8,151 | -13,119 | -9,408 | -45,205 | -41,033 | -33,827 | ||||||||
Net loss | ($10,120) | [1] | ($11,986) | [1] | ($13,330) | [1] | ($12,904) | [1] | ($13,365) | [1] | ($8,852) | [1] | ($13,619) | [1] | ($10,262) | [1] | ($48,340) | ($46,098) | ($35,390) |
Basic and diluted net loss per share | ($0.15) | ($0.18) | ($0.20) | ($0.20) | ($0.22) | ($0.36) | ($0.60) | ($0.45) | ($0.72) | ($1.39) | ($1.58) | ||||||||
[1] | In the fourth quarter of 2013, in connection with a debt refinancing transaction, the Company recorded a $1.8 million loss on early extinguishment of debt, which was classified in interest expense. Refer to Note 4 for additional details. |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data (Unaudited) - Selected Unaudited Quarterly Consolidated Statements of Operations Data (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Quarterly Financial Information Disclosure [Abstract] | |
Loss on early extinguishment of debt | $1,800 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | 0 Months Ended |
Feb. 25, 2015 | |
Subsequent Event [Line Items] | |
Additional lease payments | $0 |
San Mateo | Maximum | |
Subsequent Event [Line Items] | |
Termination date of the lease | 31-May-17 |
San Mateo | Minimum | |
Subsequent Event [Line Items] | |
Termination date of the lease | 30-Apr-15 |