Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 28, 2015 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | RNG | |
Entity Registrant Name | RingCentral Inc | |
Entity Central Index Key | 1384905 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Class A common stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 54,537,338 | |
Class B common stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 14,531,831 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $114,152 | $113,182 |
Short-term investments | 21,554 | 28,479 |
Accounts receivable, net | 11,572 | 7,651 |
Inventory | 2,054 | 1,710 |
Prepaid expenses and other current assets | 9,521 | 8,767 |
Total current assets | 158,853 | 159,789 |
Property and equipment, net | 26,697 | 25,527 |
Other assets | 2,609 | 3,021 |
Total assets | 188,159 | 188,337 |
Current liabilities: | ||
Accounts payable | 4,923 | 4,181 |
Accrued liabilities | 32,804 | 29,236 |
Current portion of capital lease obligation | 377 | 509 |
Current portion of long-term debt | 14,434 | 16,764 |
Deferred revenue | 28,325 | 25,586 |
Total current liabilities | 80,863 | 76,276 |
Long-term debt | 6,875 | 7,813 |
Sales tax liability | 3,887 | 3,953 |
Capital lease obligation | 450 | 535 |
Other long-term liabilities | 3,660 | 3,255 |
Total liabilities | 95,735 | 91,832 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Common stock | 7 | 7 |
Additional paid-in capital | 281,083 | 274,844 |
Accumulated other comprehensive gain/(loss) | 40 | -251 |
Accumulated deficit | -188,706 | -178,095 |
Total stockholders' equity | 92,424 | 96,505 |
Total liabilities and stockholders' equity | $188,159 | $188,337 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Subscriptions | $59,951 | $43,850 |
Product | 5,367 | 4,412 |
Total revenues | 65,318 | 48,262 |
Cost of revenues: | ||
Subscriptions | 15,914 | 13,714 |
Product | 4,633 | 4,189 |
Total cost of revenues | 20,547 | 17,903 |
Gross profit | 44,771 | 30,359 |
Operating expenses: | ||
Research and development | 11,840 | 9,673 |
Sales and marketing | 31,969 | 23,957 |
General and administrative | 10,531 | 8,967 |
Total operating expenses | 54,340 | 42,597 |
Loss from operations | -9,569 | -12,238 |
Other income (expense), net: | ||
Interest expense | -403 | -601 |
Other income (expense), net | -556 | -37 |
Other income (expense), net | -959 | -638 |
Loss before provision for income taxes | -10,528 | -12,876 |
Provision for income taxes | 83 | 28 |
Net loss | ($10,611) | ($12,904) |
Net loss per common share: | ||
Basic and diluted | ($0.15) | ($0.20) |
Weighted-average number of shares used in computing net loss per share: | ||
Basic and diluted | 68,764 | 63,800 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | ($10,611) | ($12,904) |
Other comprehensive gain/(loss): | ||
Foreign currency translation adjustments, net | 340 | -100 |
Unrealized loss on available-for-sale securities | -50 | |
Comprehensive loss | ($10,321) | ($13,004) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net loss | ($10,611) | ($12,904) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 3,224 | 2,119 |
Share-based compensation | 4,747 | 3,177 |
Noncash interest expense related to debt | 62 | 73 |
Net accretion of discount and amortization of premium on available-for-sale securities | 95 | |
Loss on disposal of assets | 11 | 4 |
Deferred income tax | 14 | 1 |
Changes in assets and liabilities: | ||
Accounts receivable | -3,921 | -828 |
Inventory | -343 | -190 |
Prepaid expenses and other current assets | -754 | -1,561 |
Other assets | 614 | -188 |
Accounts payable | 485 | -1,353 |
Accrued liabilities | 2,812 | 7,009 |
Deferred revenue | 2,739 | 1,763 |
Other liabilities | 139 | 415 |
Net cash used in operating activities | -687 | -2,463 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -3,298 | -3,509 |
Proceeds from the maturity of available-for-sale securities | 6,780 | |
Proceeds from restricted investments | 100 | |
Net cash provided by (used in) investing activities | 3,582 | -3,509 |
Cash flows from financing activities: | ||
Net proceeds from secondary public offering of common stock | 57,167 | |
Repayment of debt | -3,330 | -2,330 |
Repayment of capital lease obligations | -216 | -113 |
Payment of offering costs | -246 | |
Proceeds from issuance of stock in connection with stock plans | 1,482 | 1,943 |
Net cash provided by (used in) financing activities | -2,064 | 56,421 |
Effect of exchange rate changes on cash and cash equivalents | 139 | -1 |
Net increase in cash and cash equivalents | 970 | 50,448 |
Cash and cash equivalents: | ||
Beginning of period | 113,182 | 116,378 |
End of period | 114,152 | 166,826 |
Supplemental disclosure of cash flow data: | ||
Cash paid for interest | 1,267 | 299 |
Cash paid for income taxes | 47 | 18 |
Noncash investing and financing activities: | ||
Change in liability for unvested exercised options | 9 | 19 |
Accrued liability for deferred offering costs | 1,123 | |
Equipment purchased and unpaid at period end | 2,236 | 1,867 |
Unrealized loss on available-for-sale securities | $50 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
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. | |
Basis of Presentation | |
The unaudited condensed consolidated financial statements and accompanying notes of the Company reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending December 31, 2015. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (the “SEC”). | |
The unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2014 included in the Company’s fiscal 2014 Annual Report on Form 10-K. There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2014. | |
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. | |
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 | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Cash | $ | 11,866 | $ | 12,800 | ||||
Money market funds | 102,286 | 100,382 | ||||||
Total cash and cash equivalents | $ | 114,152 | $ | 113,182 | ||||
Accounts receivable, net consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Accounts receivable | $ | 9,753 | $ | 5,935 | ||||
Unbilled accounts receivable | 1,969 | 1,841 | ||||||
Allowance for doubtful accounts | (150 | ) | (125 | ) | ||||
Accounts receivable, net | $ | 11,572 | $ | 7,651 | ||||
Property and equipment, net consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Computer hardware and software | $ | 45,360 | $ | 43,805 | ||||
Internal-use software development costs | 5,773 | 5,335 | ||||||
Furniture and fixtures | 2,224 | 2,020 | ||||||
Leasehold improvements | 2,803 | 2,870 | ||||||
Property and equipment, gross | 56,160 | 54,030 | ||||||
Less: accumulated depreciation and amortization | (29,463 | ) | (28,503 | ) | ||||
Property and equipment, net | $ | 26,697 | $ | 25,527 | ||||
Accrued liabilities consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Accrued compensation and benefits | $ | 10,542 | $ | 7,596 | ||||
Accrued sales, use and telecom related taxes | 5,729 | 5,277 | ||||||
Other accrued expenses | 16,533 | 16,363 | ||||||
Total accrued liabilities | $ | 32,804 | $ | 29,236 | ||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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, certificates of deposit, commercial paper and corporate debt securities 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 techniques. | ||||||||||||||||
The fair value of assets carried at fair value was determined using the following inputs (in thousands): | ||||||||||||||||
Balance at | ||||||||||||||||
31-Mar-15 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 102,543 | $ | 101,247 | $ | 1,296 | $ | — | ||||||||
Short-term investments: | ||||||||||||||||
Corporate debt securities | $ | 20,554 | $ | 20,554 | $ | — | $ | — | ||||||||
Commercial paper | $ | 1,000 | $ | — | $ | 1,000 | $ | — | ||||||||
Other assets: | ||||||||||||||||
Certificates of deposit | $ | 530 | $ | — | $ | 530 | $ | — | ||||||||
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 | $ | — | ||||||||
At March 31, 2015, all short-term 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. We may sell these short-term investments 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 short-term investments held at March 31, 2015, including securities with maturities beyond twelve months, were classified as current assets in the accompanying condensed consolidated balance sheet. | ||||||||||||||||
At March 31, 2015, 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 | $ | 20,823 | $ | — | $ | (269 | ) | $ | 20,554 | |||||||
Commercial paper | 998 | 2 | — | 1,000 | ||||||||||||
Total | $ | 21,821 | $ | 2 | $ | (269 | ) | $ | 21,554 | |||||||
The Company does not believe any of the unrealized losses represent an other-than-temporary impairment based on its evaluation of available evidence as of March 31, 2015. The Company expects to receive the full principal and interest on all of these marketable securities. | ||||||||||||||||
The expected maturities of our short-term investments in available-for-sale securities at March 31, 2015 are shown below (in thousands): | ||||||||||||||||
Available-for-Sale Securities | Amortized Cost | Estimated Fair Value | ||||||||||||||
Due in less than one year | $ | 21,821 | $ | 21,554 | ||||||||||||
Total | $ | 21,821 | $ | 21,554 | ||||||||||||
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. | ||||||||||||||||
At December 31, 2014 and March 31, 2015, 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. The estimated fair value of the Company’s current and non-current debt obligations was $21,344,000 at March 31, 2015, compared to its carrying amount of $21,309,000 at that date. If the debt was measured at fair value in the condensed consolidated balance sheets, the Company’s current and non-current debt would be classified in Level 2 of the fair value hierarchy. | ||||||||||||||||
Debt
Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Note 4. Debt |
As of March 31, 2015, the Company’s debt is comprised of borrowings under loan agreements (“SVB Agreement”), as amended, with Silicon Valley Bank (“SVB”). | |
SVB Loan Agreement | |
Under the SVB agreement, at March 31, 2015, the Company has one outstanding growth capital term loan (i.e., “the 2013 term loan”) and a revolving line of credit. The Company borrowed an additional growth capital loan in March 2012 (the “2012 term loan”) that has since been repaid. | |
The 2012 term loan was in the principal amount of $8,000,000, which was to be repaid in 36 equal monthly installments of principal and interest. Under the 2012 term loan, interest was paid monthly and accrued 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, the interest rate was 3.5%. In addition, a final terminal payment equal to 0.5% of the original loan principal, or $40,000, was due at maturity. The 2012 term loan matured in March 2015 and was repaid in full. | |
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 March 31, 2015, the current interest rate is 4.0%. As of March 31, 2015, the outstanding principal balance of the 2013 term loan was $10,625,000. Approximately $6,875,000 of the remaining principal balance is classified as non-current liabilities in the accompanying condensed consolidated balance sheet as this portion of the remaining principal balance is due beyond March 31, 2016. | |
The revolving line of credit provides for a maximum borrowing of up to $15,000,000 in principal amount, subject to limits based on 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 March 31, 2015, the current interest rate is 3.5%. All outstanding principal and unpaid interest under the revolving line of credit must be repaid by August 13, 2015. The outstanding principal balance is classified as a current liability in the accompanying condensed consolidated balance sheet because the loan matures August 2015. As of March 31, 2015, the outstanding principal balance and the available borrowing capacity of the line of credit were $10,778,000 and $4,222,000, respectively. As of March 31, 2015, the unamortized discount on the revolving line of credit was $94,000 which is recorded in the current portion of long-term debt line in the accompanying condensed consolidated balance sheet. | |
The Company has pledged substantially 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, as amended, also contains customary affirmative covenants, as well as financial covenants that require the Company to (i) maintain minimum cash balances of $10,000,000, as defined in the amended agreement, and (ii) maintain minimum EBITDA levels, as determined in accordance with the agreement. On March 30, 2015, the Company adjusted certain financial covenants to expand its ability to invest in certain foreign subsidiaries and property and equipment. The Company was in compliance with all covenants under its credit agreement with SVB as of March 31, 2015. | |
TriplePoint Loan Agreement | |
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 were being repaid in 36 equal monthly installments of principal and interest, which accrued at an annual fixed rate of 5.75%, however, the Company repaid the equipment term loans in full in March 2015. In addition, a final terminal payment was due upon repayment equal to 10% of the original loan principal, or $970,000. | |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5. Commitments and Contingencies |
Leases | |
The Company leases facilities for office space under non-cancelable 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. On September 25, 2014, the Company entered into a new lease for its headquarters for a total lease commitment of $17,497,000 through 2021 and lease incentives totaling $1,486,000. The Company took full possession of the building in the first quarter of fiscal 2015. On February 25, 2015, the Company signed an agreement that accelerated the termination date of the lease for its old headquarters office located in San Mateo, California from May 31, 2017 to April 30, 2015. The effectiveness of the early termination of the lease was 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. The early termination of the lease was deemed effective on March 9, 2015 as both conditions were met. No additional lease payments are imposed by the early termination agreement and the Company’s future lease obligation ends on April 30, 2015. All agreements contain escalating monthly rental payments over the lease term, which will be amortized to rent expense on a straight-line basis over the lease term. | |
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 so a loss contingency related to sales taxes exists for sales and marketing activities in 2010, 2011 and the six months ended June 30, 2012. As of March 31, 2015 and December 31, 2014, the Company had a balance for a long-term sales tax liability of $3,887,000 and $3,953,000, 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 condensed 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 noncontingent amounts expected to be remitted in the next twelve months of $4,193,000 and $4,178,000, is included in accrued liabilities as of March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, the Company did not have any accrued liabilities recorded for such loss contingencies. | |
On April 17, 2015, UrgenSync, LLC filed a complaint against us and over 20 other companies in the United States District Court for the Eastern District of Texas, Tyler Division. In the complaint, UrgenSync alleges that RingCentral infringes U.S. patent number 8,295,802, which relates to making and/or using communication control apparatuses for emergency calls placed using VoIP. The complaint seeks unspecified damages. We believe that we have meritorious defenses to UrgenSync’s allegations and intend to defend this matter vigorously. We have not recorded any loss provision in connection with this contingency. However, there can be no assurance that we will be successful in our defense, and our financial position, results of operations and our business could be adversely affected in the event of an unfavorable outcome. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||||||
Share-Based Compensation | Note 6. Share-Based Compensation | |||||||||||||||
A summary of share-based compensation expense recognized in the Company’s condensed consolidated statements of operations follows (in thousands): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Cost of subscriptions revenues | $ | 457 | $ | 296 | ||||||||||||
Research and development | 1,113 | 652 | ||||||||||||||
Sales and marketing | 1,844 | 960 | ||||||||||||||
General and administrative | 1,333 | 1,269 | ||||||||||||||
Total share-based compensation expense | $ | 4,747 | $ | 3,177 | ||||||||||||
A summary of share-based compensation expense by award type follows (in thousands): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Options | $ | 2,705 | $ | 2,454 | ||||||||||||
Employee stock purchase plan rights | 286 | 505 | ||||||||||||||
Restricted stock units | 1,756 | 218 | ||||||||||||||
Total share-based compensation expense | $ | 4,747 | $ | 3,177 | ||||||||||||
As of March 31, 2015 and December 31, 2014, there was approximately $24,553,000 and $20,069,000 of unrecognized share-based compensation expense, net of estimated forfeitures, related to non-vested stock option grants, which will be recognized on a straight-line basis over the remaining weighted-average vesting periods of approximately 2.6 years and 2.4 years, respectively. | ||||||||||||||||
Equity Incentive Plans | ||||||||||||||||
As of March 31, 2015 a total of 9,309,000 shares remained available for grant under the 2013 Plan. A summary of option activity under all of the Company’s equity incentive plans at March 31, 2015 and changes during the period 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, 2014 | 9,158 | $ | 8.23 | 7.2 | $ | 61,367 | ||||||||||
Granted | 1,079 | 15.69 | ||||||||||||||
Exercised | (345 | ) | 4.42 | |||||||||||||
Canceled/Forfeited | (50 | ) | 14.45 | |||||||||||||
Outstanding at March 31, 2015 | 9,842 | $ | 9.15 | 6.9 | $ | 62,614 | ||||||||||
Vested and expected to vest as of March 31, 2015 | 9,594 | $ | 9.11 | 6.9 | $ | 61,482 | ||||||||||
Exercisable as of March 31, 2015 | 5,205 | $ | 6.29 | 6.5 | $ | 47,466 | ||||||||||
The weighted average grant date fair value of options granted and the total intrinsic value of options exercised were as follows (in thousands, except weighted average grant date fair value): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Weighted average grant date fair value per share | $ | 6.53 | $ | 8.66 | ||||||||||||
Total intrinsic value of options exercised | $ | 3,815 | $ | 27,396 | ||||||||||||
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 rate and dividend yield. The weighted-average assumptions used in the option pricing models in the periods presented were as follows: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Expected term for employees (in years) | 4.8 | 4.7 | ||||||||||||||
Expected term for non-employees (in years) | 7 | 7 | ||||||||||||||
Risk-free interest rate | 1.47 | % | 1.42 | % | ||||||||||||
Expected volatility | 48 | % | 48 | % | ||||||||||||
Expected dividend rate | 0 | % | 0 | % | ||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||
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 starts on the first trading day on or after May 11th and November 11th of each year. At the end of the offering period, the purchase price is set at the lower of: (i) 90% of the fair value of the Company’s common stock at the beginning of the six month offering period, and (ii) 90% of the fair value of the Company’s common stock at the end of the six month offering period. As of March 31, 2015, there was a total of $131,000 of unrecognized share-based compensation expense, net of estimated forfeitures, related to ESPP, which will be recognized on a straight-line basis over the remaining weighted-average vesting period of approximately 0.1 years. At March 31, 2015, a total of 2,191,000 shares were available for issuance under the ESPP. | ||||||||||||||||
Restricted Stock Units | ||||||||||||||||
For the three months ended March 31, 2015, we issued 188,000 restricted stock units of Class A common stock under the 2013 Plan with a weighted average grant date fair value of $15.18 per share. As of March 31, 2015, there was a total of $24,712,000 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 3.4 years. |
Concentrations
Concentrations | 3 Months Ended |
Mar. 31, 2015 | |
Risks And Uncertainties [Abstract] | |
Concentrations | Note 7. Concentrations |
Revenue by geographic location is based on the billing address of the customer. More than 90% of the Company’s revenue is from the United States during the three months ended March 31, 2015 and 2014. Property and equipment by geographic location is based on the location of the legal entity that owns the asset. At March 31, 2015 and December 31, 2014, more than 87% of the Company’s property and equipment was located in the United States, with no single country outside the United States representing more than 10% of property and equipment. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes |
The provision for income taxes for the three months ended March 31, 2015 and 2014, was $83,000 and $28,000, respectively. The provision for income taxes during the three months ended March 31, 2015 and 2014 consisted primarily of state minimum taxes, and foreign income taxes. | |
For the three months ended March 31, 2015 and 2014, the provision for income taxes differed from the U.S federal statutory amount primarily due to state and foreign taxes currently payable, and the Company realized no benefit for current year losses due to maintaining a full valuation allowance against the U.S. and foreign net deferred tax assets. | |
The realization of tax benefits of net deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence, the Company does not believe it is more likely than not that the net deferred tax assets will be realizable. Accordingly, the Company has provided a full valuation allowance against the entire domestic and the majority of the foreign net deferred tax assets as of March 31, 2015 and December 31, 2014. The Company intends to maintain the full valuation allowance until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance. | |
During the three months ended March 31, 2015, there have been no material changes to the total amount of unrecognized tax benefits. |
Basic_and_Diluted_Net_Loss_Per
Basic and Diluted Net Loss Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, less the weighted-average unvested common stock subject to repurchase or forfeiture as they are not deemed to be issued for accounting purposes. Diluted net loss per share is computed by giving effect to all potential shares of common stock, warrants to purchase common and preferred stock, stock options and restricted stock units, to the extent they are dilutive. For the three months ended March 31, 2015 and 2014, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive. | ||||||||
The following table sets forth the computation of the Company’s basic and diluted net loss per share of common stock (in thousands, except per share data): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Numerator | ||||||||
Net loss | $ | (10,611 | ) | $ | (12,904 | ) | ||
Denominator | ||||||||
Weighted-average common shares for basic and diluted net | 68,764 | 63,800 | ||||||
loss per share | ||||||||
Basic and diluted net loss per share | $ | (0.15 | ) | $ | (0.20 | ) | ||
The following table sets forth the potential shares of common stock that were excluded from diluted weighted-average common shares outstanding (in thousands): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Shares of common stock issuable upon conversion of warrants | — | 70 | ||||||
Shares of common stock subject to repurchase | 13 | 25 | ||||||
Shares of common stock issuable under equity incentive awards | 11,611 | 9,999 | ||||||
outstanding | ||||||||
Potential common shares excluded from diluted net loss per | 11,624 | 10,094 | ||||||
share | ||||||||
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The unaudited condensed consolidated financial statements and accompanying notes of the Company reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending December 31, 2015. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (the “SEC”). | |
The unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended December 31, 2014 included in the Company’s fiscal 2014 Annual Report on Form 10-K. There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2014. | |
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. | |
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. | |
Financial_Statement_Components1
Financial Statement Components (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Statement Of Financial Position [Abstract] | ||||||||
Components of Cash and Cash Equivalents | Cash and cash equivalents consisted of the following (in thousands): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Cash | $ | 11,866 | $ | 12,800 | ||||
Money market funds | 102,286 | 100,382 | ||||||
Total cash and cash equivalents | $ | 114,152 | $ | 113,182 | ||||
Components of Accounts Receivable, Net | Accounts receivable, net consisted of the following (in thousands): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Accounts receivable | $ | 9,753 | $ | 5,935 | ||||
Unbilled accounts receivable | 1,969 | 1,841 | ||||||
Allowance for doubtful accounts | (150 | ) | (125 | ) | ||||
Accounts receivable, net | $ | 11,572 | $ | 7,651 | ||||
Components of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Computer hardware and software | $ | 45,360 | $ | 43,805 | ||||
Internal-use software development costs | 5,773 | 5,335 | ||||||
Furniture and fixtures | 2,224 | 2,020 | ||||||
Leasehold improvements | 2,803 | 2,870 | ||||||
Property and equipment, gross | 56,160 | 54,030 | ||||||
Less: accumulated depreciation and amortization | (29,463 | ) | (28,503 | ) | ||||
Property and equipment, net | $ | 26,697 | $ | 25,527 | ||||
Components of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Accrued compensation and benefits | $ | 10,542 | $ | 7,596 | ||||
Accrued sales, use and telecom related taxes | 5,729 | 5,277 | ||||||
Other accrued expenses | 16,533 | 16,363 | ||||||
Total accrued liabilities | $ | 32,804 | $ | 29,236 | ||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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-Mar-15 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 102,543 | $ | 101,247 | $ | 1,296 | $ | — | ||||||||
Short-term investments: | ||||||||||||||||
Corporate debt securities | $ | 20,554 | $ | 20,554 | $ | — | $ | — | ||||||||
Commercial paper | $ | 1,000 | $ | — | $ | 1,000 | $ | — | ||||||||
Other assets: | ||||||||||||||||
Certificates of deposit | $ | 530 | $ | — | $ | 530 | $ | — | ||||||||
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 | $ | — | ||||||||
Components of Available-for-Sale Securities | At March 31, 2015, 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 | $ | 20,823 | $ | — | $ | (269 | ) | $ | 20,554 | |||||||
Commercial paper | 998 | 2 | — | 1,000 | ||||||||||||
Total | $ | 21,821 | $ | 2 | $ | (269 | ) | $ | 21,554 | |||||||
The Company does not believe any of the unrealized losses represent an other-than-temporary impairment based on its evaluation of available evidence as of March 31, 2015. The Company expects to receive the full principal and interest on all of these marketable securities. | ||||||||||||||||
Expected Maturities of Short-term Investments in Available-for-Sale Securities | The expected maturities of our short-term investments in available-for-sale securities at March 31, 2015 are shown below (in thousands): | |||||||||||||||
Available-for-Sale Securities | Amortized Cost | Estimated Fair Value | ||||||||||||||
Due in less than one year | $ | 21,821 | $ | 21,554 | ||||||||||||
Total | $ | 21,821 | $ | 21,554 | ||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||||||
Summary of Share-Based Compensation Expense Recognized to Statements of Operations | A summary of share-based compensation expense recognized in the Company’s condensed consolidated statements of operations follows (in thousands): | |||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Cost of subscriptions revenues | $ | 457 | $ | 296 | ||||||||||||
Research and development | 1,113 | 652 | ||||||||||||||
Sales and marketing | 1,844 | 960 | ||||||||||||||
General and administrative | 1,333 | 1,269 | ||||||||||||||
Total share-based compensation expense | $ | 4,747 | $ | 3,177 | ||||||||||||
Summary of Share-Based Compensation Expense by Award Type | A summary of share-based compensation expense by award type follows (in thousands): | |||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Options | $ | 2,705 | $ | 2,454 | ||||||||||||
Employee stock purchase plan rights | 286 | 505 | ||||||||||||||
Restricted stock units | 1,756 | 218 | ||||||||||||||
Total share-based compensation expense | $ | 4,747 | $ | 3,177 | ||||||||||||
Summary of Stock Option Activity Plans | A summary of option activity under all of the Company’s equity incentive plans at March 31, 2015 and changes during the period 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, 2014 | 9,158 | $ | 8.23 | 7.2 | $ | 61,367 | ||||||||||
Granted | 1,079 | 15.69 | ||||||||||||||
Exercised | (345 | ) | 4.42 | |||||||||||||
Canceled/Forfeited | (50 | ) | 14.45 | |||||||||||||
Outstanding at March 31, 2015 | 9,842 | $ | 9.15 | 6.9 | $ | 62,614 | ||||||||||
Vested and expected to vest as of March 31, 2015 | 9,594 | $ | 9.11 | 6.9 | $ | 61,482 | ||||||||||
Exercisable as of March 31, 2015 | 5,205 | $ | 6.29 | 6.5 | $ | 47,466 | ||||||||||
Weighted Average Grant Date Fair Value of Options Granted and Total Intrinsic Value of Options Exercised | The weighted average grant date fair value of options granted and the total intrinsic value of options exercised were as follows (in thousands, except weighted average grant date fair value): | |||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Weighted average grant date fair value per share | $ | 6.53 | $ | 8.66 | ||||||||||||
Total intrinsic value of options exercised | $ | 3,815 | $ | 27,396 | ||||||||||||
Weighted Average Assumptions Used to Fair Value of Stock Options Granted | The weighted-average assumptions used in the option pricing models in the periods presented were as follows: | |||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Expected term for employees (in years) | 4.8 | 4.7 | ||||||||||||||
Expected term for non-employees (in years) | 7 | 7 | ||||||||||||||
Risk-free interest rate | 1.47 | % | 1.42 | % | ||||||||||||
Expected volatility | 48 | % | 48 | % | ||||||||||||
Expected dividend rate | 0 | % | 0 | % | ||||||||||||
Basic_and_Diluted_Net_Loss_Per1
Basic and Diluted Net Loss Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 of common stock (in thousands, except per share data): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Numerator | ||||||||
Net loss | $ | (10,611 | ) | $ | (12,904 | ) | ||
Denominator | ||||||||
Weighted-average common shares for basic and diluted net | 68,764 | 63,800 | ||||||
loss per share | ||||||||
Basic and diluted net loss per share | $ | (0.15 | ) | $ | (0.20 | ) | ||
Potential Shares of Common Stock Excluded from Diluted Weighted-Average Common Shares Outstanding | The following table sets forth the potential shares of common stock that were excluded from diluted weighted-average common shares outstanding (in thousands): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Shares of common stock issuable upon conversion of warrants | — | 70 | ||||||
Shares of common stock subject to repurchase | 13 | 25 | ||||||
Shares of common stock issuable under equity incentive awards | 11,611 | 9,999 | ||||||
outstanding | ||||||||
Potential common shares excluded from diluted net loss per | 11,624 | 10,094 | ||||||
share | ||||||||
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Class A common stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted Stock units issued | 188,000 | |
2013 Employee stock purchase plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized share-based compensation expense, remaining weighted-average vesting periods | 1 month 6 days | |
Available for future grants | 2,191,000 | |
Eligible compensation under the Employee Stock Purchase Plan | 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 | |
Percentage of fair value of Common stock offering | 90.00% | |
Unrecognized share-based compensation expense | 131 | |
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 | 24,553 | 20,069 |
Unrecognized share-based compensation expense, remaining weighted-average vesting periods | 2 years 7 months 6 days | 2 years 4 months 24 days |
Restricted Stock Units | Class A common stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average grant date fair value per share of equity-based awards other than stock option plans | $15.18 | |
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 4 months 24 days | |
Unrecognized share-based compensation expense | $24,712 | |
2013 Equity incentive plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period contractual term | 7 years | |
Effective Contractual Term Grant Date | 29-Jan-14 | |
Available for future grants | 9,309,000 | |
2013 Equity incentive plan | Previously Reported | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period contractual term | 10 years |
Components_of_Cash_and_Cash_Eq
Components of Cash and Cash Equivalents (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Cash And Cash Equivalents [Abstract] | ||||
Cash | $11,866 | $12,800 | ||
Money market funds | 102,286 | 100,382 | ||
Total cash and cash equivalents | $114,152 | $113,182 | $166,826 | $116,378 |
Components_of_Accounts_Receiva
Components of Accounts Receivable, Net (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Accounts receivable | $9,753 | $5,935 |
Unbilled accounts receivable | 1,969 | 1,841 |
Allowance for doubtful accounts | -150 | -125 |
Accounts receivable, net | $11,572 | $7,651 |
Components_of_Property_and_Equ
Components of Property and Equipment, Net (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $56,160 | $54,030 |
Less: accumulated depreciation and amortization | -29,463 | -28,503 |
Property and equipment, net | 26,697 | 25,527 |
Computer hardware and software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 45,360 | 43,805 |
Internal-use software development costs | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 5,773 | 5,335 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,224 | 2,020 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $2,803 | $2,870 |
Components_of_Accrued_Liabilit
Components of Accrued Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ||
Accrued compensation and benefits | $10,542 | $7,596 |
Accrued sales, use and telecom related taxes | 5,729 | 5,277 |
Other accrued expenses | 16,533 | 16,363 |
Total accrued liabilities | $32,804 | $29,236 |
Fair_Value_of_Assets_Carried_a
Fair Value of Assets Carried at Fair Value (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | $21,554 | |
Fair Value, Measurements, Recurring | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Money market funds | 102,543 | 100,570 |
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 | 101,247 | 94,274 |
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 | 1,296 | 6,296 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 20,554 | 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 | 20,554 | 26,481 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,000 | 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 | 1,000 | 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 | 530 | 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 | $530 | $630 |
Components_of_AvailableforSale
Components of Available-for-Sale Securities (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Available-for-Sale Securities, Amortized Cost | $21,821 |
Available-for-Sale Securities, Gross Unrealized Gains | 2 |
Available-for-Sale Securities, Gross Unrealized Losses | -269 |
Available-for-Sale Securities, Estimated Fair Value | 21,554 |
Corporate debt securities | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Available-for-Sale Securities, Amortized Cost | 20,823 |
Available-for-Sale Securities, Gross Unrealized Losses | -269 |
Available-for-Sale Securities, Estimated Fair Value | 20,554 |
Commercial paper | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Available-for-Sale Securities, Amortized Cost | 998 |
Available-for-Sale Securities, Gross Unrealized Gains | 2 |
Available-for-Sale Securities, Estimated Fair Value | $1,000 |
Expected_Maturities_of_Shortte
Expected Maturities of Short-term Investment in Available-for-Sale Securities (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Available-for-Sale Securities, Amortized Cost | |
Due in less than one year, Amortized Cost | $21,821 |
Available-for-Sale Securities, Amortized Cost | 21,821 |
Available-for-Sale Securities, Estimated Fair Value | |
Due in less than one year, Estimated Fair Value | 21,554 |
Total, Estimated Fair Value | $21,554 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Fair value of debt obligation | $21,344 | $25,671 |
Carrying value of debt obligation | $21,309 | $24,577 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Aug. 31, 2012 | Aug. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | |
Installment | Installment | Installment | ||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $6,875,000 | $7,813,000 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on debt | 3.50% | |||||
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 | 4,222,000 | |||||
Unamortized Discount | 94,000 | |||||
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] | ||||||
Term loan | 9,691,000 | 9,691,000 | ||||
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 | |||||
Debt instrument maturity date, month and year | 2015-08 | |||||
Term loan fixed interest rate | 5.75% | 5.75% | ||||
SVB Loan Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt covenant requirement | 10,000,000 | |||||
SVB Loan Agreement | 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 | |||||
Debt instrument maturity date, month and year | 2015-03 | |||||
SVB Loan Agreement | 2012 Capital Growth Term Loan | Required Cash Balances Maintained With Silicon Valley Bank | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of margin | 0.25% | |||||
SVB Loan Agreement | 2012 Capital Growth Term Loan | Required Cash Balances Maintained With Silicon Valley Bank | LIBOR Rate | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of margin | 3.25% | |||||
SVB Loan Agreement | 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% | |||||
SVB Loan Agreement | 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% | |||||
SVB Loan Agreement | 2013 Capital Growth Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Term loan | 15,000,000 | |||||
Number of monthly installments for principal and interest payment | 48 | |||||
Interest rate on debt | 4.00% | |||||
Outstanding balance of term loan | 10,625,000 | |||||
Long-term debt | $6,875,000 | |||||
Debt instrument, maturity, description | due beyond March 31, 2016 | |||||
SVB Loan Agreement | 2013 Capital Growth Term Loan | Required Cash Balances Maintained With Silicon Valley Bank | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of margin | 0.75% | |||||
SVB Loan Agreement | 2013 Capital Growth Term Loan | Required Cash Balances Maintained With Silicon Valley Bank | LIBOR Rate | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of margin | 3.75% | |||||
SVB Loan Agreement | 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% | |||||
SVB Loan Agreement | 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% |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | ||||
Feb. 25, 2015 | Mar. 09, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 25, 2014 | |
Loss Contingencies [Line Items] | |||||
Lease commitment | $17,497,000 | ||||
Lease incentives | 1,486,000 | ||||
Additional lease payments | 0 | ||||
Long-term sales tax liability | 3,887,000 | 3,953,000 | |||
Current sales tax liability for non-contingent amounts | 4,193,000 | 4,178,000 | |||
Accrued liabilities recorded for loss contingencies | $0 | $0 | |||
San Mateo | |||||
Loss Contingencies [Line Items] | |||||
Termination date of the lease | 31-May-17 | ||||
San Mateo | Accelerated Lease Termination Date Agreement | |||||
Loss Contingencies [Line Items] | |||||
Termination date of the lease | 30-Apr-15 |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Share-Based Compensation Expense Recognized to Statements of Operations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $4,747 | $3,177 |
Cost of Subscriptions Revenues | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 457 | 296 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 1,113 | 652 |
Sales and Marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 1,844 | 960 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $1,333 | $1,269 |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Share-Based Compensation Expense by Award Type (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | $4,747 | $3,177 |
Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | 2,705 | 2,454 |
Restricted Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | 1,756 | 218 |
Employee Stock Purchase Plan Rights | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | $286 | $505 |
ShareBased_Compensation_Summar2
Share-Based Compensation - Summary of Stock Option Activity Plans (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Number of Options Outstanding | ||
Number of Options Outstanding, Beginning Balance | 9,158 | |
Number of Options Outstanding, Granted | 1,079 | |
Number of Options Outstanding, Exercised | -345 | |
Number of Options Outstanding, Canceled/Forfeited | -50 | |
Number of Options Outstanding, Ending Balance | 9,842 | 9,158 |
Number of Options Outstanding, Vested and expected to vest | 9,594 | |
Number of Options Outstanding, Exercisable | 5,205 | |
Weighted-Average Exercise Price Per Share | ||
Weighted Average Exercise Price Per Share, Beginning Balance | $8.23 | |
Weighted Average Exercise Price Per Share, Granted | $15.69 | |
Weighted Average Exercise Price Per Share, Exercised | $4.42 | |
Weighted Average Exercise Price Per Share, Canceled/Forfeited | $14.45 | |
Weighted Average Exercise Price Per Share, Ending Balance | $9.15 | $8.23 |
Weighted Average Exercise Price Per Share, Vested and expected to vest | $9.11 | |
Weighted Average Exercise Price Per Share, Exercisable | $6.29 | |
Weighted-Average Contractual Term | ||
Weighted-Average Contractual Term | 6 years 10 months 24 days | 7 years 2 months 12 days |
Weighted-Average Contractual Term, Vested and expected to vest | 6 years 10 months 24 days | |
Weighted-Average Contractual Term, Exercisable | 6 years 6 months | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value, Beginning Balance | $61,367 | |
Aggregate Intrinsic Value, Ending Balance | 62,614 | 61,367 |
Aggregate Intrinsic Value, Vested and expected to vest | 61,482 | |
Aggregate Intrinsic Value, Exercisable | $47,466 |
ShareBased_Compensation_Weight
Share-Based Compensation - Weighted Average Grant Date Fair Value of Options Granted and Total Intrinsic Value of Options Exercised (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Weighted average grant date fair value per share | $6.53 | $8.66 |
Total intrinsic value of options exercised | $3,815 | $27,396 |
ShareBased_Compensation_Weight1
Share-Based Compensation - Weighted Average Assumptions Used to Fair Value of Stock Options Granted (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 1.47% | 1.42% |
Expected volatility | 48.00% | 48.00% |
Expected dividend rate | 0.00% | 0.00% |
Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 4 years 9 months 18 days | 4 years 8 months 12 days |
Non Employee Stock Option | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 7 years | 7 years |
Concentrations_Additional_Info
Concentrations - Additional Information (Detail) (Geographic Concentration Risk) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
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% | |
Minimum | United States | Property, Plant and Equipment | |||
Concentration Risk [Line Items] | |||
Concentration risk | 87.00% | 87.00% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Provision (benefit) for income taxes | $83,000 | $28,000 |
Unrecognized tax benefits | $0 |
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 | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator | ||
Net loss | ($10,611) | ($12,904) |
Denominator | ||
Weighted-average common shares for basic and diluted net loss per share | 68,764 | 63,800 |
Basic and diluted net loss per share | ($0.15) | ($0.20) |
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) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share | 11,624 | 10,094 |
Conversion Of Warrants | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share | 70 | |
Repurchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share | 13 | 25 |
Equity Incentive Plans | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share | 11,611 | 9,999 |