Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 01, 2016 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | RNG | |
Entity Registrant Name | RingCentral Inc | |
Entity Central Index Key | 1,384,905 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A common stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 60,474,474 | |
Class B common stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 13,109,918 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 152,390 | $ 137,588 |
Accounts receivable, net | 23,583 | 19,163 |
Inventory | 84 | 2,317 |
Prepaid expenses and other current assets | 16,644 | 11,978 |
Total current assets | 192,701 | 171,046 |
Property and equipment, net | 31,139 | 28,160 |
Goodwill | 9,393 | 9,393 |
Acquired intangibles, net | 2,500 | 3,266 |
Other assets | 3,064 | 2,948 |
Total assets | 238,797 | 214,813 |
Current liabilities | ||
Accounts payable | 4,701 | 5,196 |
Accrued liabilities | 46,368 | 34,702 |
Current portion of capital lease obligation | 181 | 269 |
Current portion of long-term debt | 14,528 | 3,750 |
Deferred revenue | 42,738 | 36,657 |
Total current liabilities | 108,516 | 80,574 |
Long-term debt | 1,250 | 14,840 |
Sales tax liability | 3,527 | 3,670 |
Capital lease obligation | 181 | |
Other long-term liabilities | 3,402 | 5,416 |
Total liabilities | 116,695 | 104,681 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity | ||
Common stock | 7 | 7 |
Additional paid-in capital | 351,784 | 319,792 |
Accumulated other comprehensive income | 2,868 | 527 |
Accumulated deficit | (232,557) | (210,194) |
Total stockholders' equity | 122,102 | 110,132 |
Total liabilities and stockholders' equity | $ 238,797 | $ 214,813 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||||
Software subscriptions | $ 91,853 | $ 70,321 | $ 257,898 | $ 194,713 |
Other | 4,986 | 6,459 | 17,323 | 18,076 |
Total revenues | 96,839 | 76,780 | 275,221 | 212,789 |
Cost of revenues | ||||
Software subscriptions | 19,211 | 17,084 | 54,107 | 49,503 |
Other | 4,244 | 5,249 | 13,452 | 14,906 |
Total cost of revenues | 23,455 | 22,333 | 67,559 | 64,409 |
Gross profit | 73,384 | 54,447 | 207,662 | 148,380 |
Operating expenses | ||||
Research and development | 16,490 | 13,475 | 48,097 | 37,612 |
Sales and marketing | 50,306 | 34,878 | 137,796 | 101,473 |
General and administrative | 13,649 | 11,922 | 41,114 | 34,231 |
Total operating expenses | 80,445 | 60,275 | 227,007 | 173,316 |
Loss from operations | (7,061) | (5,828) | (19,345) | (24,936) |
Other income (expense), net | ||||
Interest expense | (176) | (245) | (585) | (927) |
Other income (expense), net | (696) | (319) | (2,280) | (637) |
Other income (expense), net | (872) | (564) | (2,865) | (1,564) |
Loss before provision (benefit) for income taxes | (7,933) | (6,392) | (22,210) | (26,500) |
Provision (benefit) for income taxes | 46 | (56) | 153 | (1,342) |
Net loss | $ (7,979) | $ (6,336) | $ (22,363) | $ (25,158) |
Net loss per common share | ||||
Basic and diluted | $ (0.11) | $ (0.09) | $ (0.31) | $ (0.36) |
Weighted-average number of shares used in computing net loss per share | ||||
Basic and diluted | 73,285 | 70,580 | 72,669 | 69,614 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (7,979) | $ (6,336) | $ (22,363) | $ (25,158) |
Other comprehensive income/(loss) | ||||
Foreign currency translation adjustments | 665 | 159 | 2,341 | 146 |
Unrealized loss on available-for-sale securities | 94 | 190 | ||
Comprehensive loss | $ (7,314) | $ (6,083) | $ (20,022) | $ (24,822) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (22,363) | $ (25,158) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 10,749 | 9,935 |
Share-based compensation | 22,603 | 15,790 |
Foreign currency remeasurement loss | 2,450 | 315 |
Tax benefit from release of valuation allowance | (1,411) | |
Non-cash interest expense and other expenses related to debt | 156 | |
Net accretion of discount and amortization of premium on available-for-sale securities | 602 | |
Provision for bad debt | 458 | 152 |
Deferred income taxes | (4) | 5 |
Others | 464 | 220 |
Changes in assets and liabilities: | ||
Accounts receivable | (4,878) | (7,688) |
Inventory | 2,233 | (577) |
Prepaid expenses and other current assets | (4,667) | (3,907) |
Other assets | 201 | 173 |
Accounts payable | (2,470) | (61) |
Accrued liabilities | 13,737 | 4,758 |
Deferred revenue | 6,080 | 8,700 |
Other liabilities | (2,157) | 204 |
Net cash provided by operating activities | 22,436 | 2,208 |
Cash flows from investing activities | ||
Purchases of property and equipment | (9,634) | (11,106) |
Capitalized internal-use software | (1,515) | (1,836) |
Cash paid in business combination, net of cash acquired | (4,670) | |
Proceeds from the maturity of available-for-sale securities | 25,760 | |
Proceeds from the maturity of restricted investments | 100 | |
Net cash provided by (used in) investing activities | (11,149) | 8,248 |
Cash flows from financing activities | ||
Proceeds from issuance of stock in connection with stock plans | 8,268 | 12,040 |
Taxes paid related to net share settlement of equity awards | (131) | (105) |
Payment of holdback from Glip acquisition | (1,500) | |
Repayment of debt | (2,813) | (5,205) |
Repayment of capital lease obligations | (269) | (509) |
Net cash provided by financing activities | 3,555 | 6,221 |
Effect of exchange rate changes on cash and cash equivalents | (40) | 145 |
Net increase in cash and cash equivalents | 14,802 | 16,822 |
Cash and cash equivalents | ||
Beginning of period | 137,588 | 113,182 |
End of period | 152,390 | 130,004 |
Supplemental disclosure of cash flow data | ||
Cash paid for interest | 568 | 1,697 |
Cash paid for income taxes | 190 | 71 |
Non-cash investing and financing activities | ||
Issuance of common stock for business combination | 3,447 | |
Change in liability for unvested exercised options | 3 | 28 |
Equipment and capitalized internal-use software purchased and unpaid at period end | 2,617 | 1,617 |
Change in unrealized gain (loss) on available-for-sale securities | $ 190 | |
Glip, Inc. | ||
Non-cash investing and financing activities | ||
Issuance of common stock for business combination | $ 1,080 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
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 and collaboration. The Company was incorporated in California in 1999 and was reincorporated in Delaware on September 26, 2013. Basis of Presentation and Consolidation The unaudited condensed consolidated financial statements and accompanying notes of the Company reflect all adjustments (all of which are normal, recurring in nature and those discussed in these notes) that are, in the opinion of management, 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, 2016. Certain information and note disclosures normally included in annual consolidated 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 (SEC). The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Use of Estimates The preparation of condensed consolidated 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 condensed consolidated financial statements and the reported results of operations during the reporting period. The significant estimates made by management affect revenues, accounts receivable, allowance for doubtful accounts, inventory reserves, intangibles, goodwill, 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, which are adjusted prospectively based upon such periodic evaluation. Actual results could differ from these estimates and such differences may be material to the accompanying condensed consolidated financial statements. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718) In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (Topic 606) In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory Reclassification Cer tain immaterial items previously reported have been reclassified to conform to the current year’s reporting presentation. |
Agency Agreement with Westcon G
Agency Agreement with Westcon Group | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Agency Agreement with Westcon Group | Note 2. Agency Agreement with Westcon Group In January 2016, the Company entered into a sales agency agreement with Westcon Group, Inc. (Westcon), a global distributor of communications devices, to provide the phones purchased by customers. Under this agreement, the Company is an agent of Westcon and receives a commission for its services, which primarily include referring phone sales to Westcon. Westcon will provide phones directly to the Company’s customers instead of the Company purchasing phones from third-party vendors and reselling the phones to the Company’s customers. Commission revenues from the arrangement are recorded as the Company is the agent for these sales based on the following criteria: • the Company is not the primary obligor in the arrangement and the customer contracts for the sales of phones are entered into with Westcon; • the Company does not have latitude to establish pricing with customers as the sales agency agreement restricts the prices at which phones may be sold by the Company; • the Company does not have collection risk for phones sold under this model since it is entitled to a sales commission regardless of whether the customer pays Westcon; • the Company does not carry inventory and does not have general inventory risk; and • warranty responsibility and services are provided by Westcon. The Company completed its transition of direct phone sales to Westcon during the three months ended June 30, 2016. The transition excludes the Company’s carriers’ phone sales from the agency model. The Company does not plan to transition the carrier partners to the agency model as the billing relationships to these customers are through the carriers. The Company’s sales of phones that are provided free or significantly discounted to customers are not part of the sales agency agreement with Westcon. The Company recognizes revenues and cost from these sales as the Company is the primary obligor and has latitude in pricing. |
Change in Presentation
Change in Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Change in Presentation | Note 3. Change in Presentation As a result of the new sales agency model, the Company replaced the product revenues line in its consolidated statements of operations with a line called other revenues, which includes the commission revenues earned as an agent of Westcon, product revenues from sales of phones not sold under the sales agency agreement with Westcon, phone sales to carrier partners, phone rentals, and professional implementation services. Correspondingly, costs of other revenues include the costs for all the above items. For the three and nine months ended September 30, 2016 and 2015, the majority of other revenues were product revenues from sales of phones that fell outside the sales agency agreement with Westcon. Accordingly, to provide a comparison of product revenues and product cost of revenues prior to and subsequent to the change in presentation, product revenues were $2.2 million and $6.0 million for the three months ended September 30, 2016 and 2015, respectively, and $10.0 million and $16.9 million for the nine months ended September 30, 2016 and 2015, respectively. Product cost of revenues were $3.4 million and $5.1 million for the three months ended September 30, 2016 and 2015, respectively, and $11.6 million and $14.5 million for the nine months ended September 30, 2016 and 2015, respectively. |
Financial Statement Components
Financial Statement Components | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Financial Statement Components | Note 4. Financial Statement Components Cash and cash equivalents consisted of the following (in thousands): September 30, December 31, 2016 2015 Cash $ 33,045 $ 18,522 Money market funds 119,345 119,066 Total cash and cash equivalents $ 152,390 $ 137,588 Accounts receivable, net consisted of the following (in thousands): September 30, December 31, 2016 2015 Accounts receivable $ 20,811 $ 15,509 Unbilled accounts receivable 3,177 4,031 Allowance for doubtful accounts (405 ) (377 ) Accounts receivable, net $ 23,583 $ 19,163 Property and equipment, net consisted of the following (in thousands): September 30, December 31, 2016 2015 Computer hardware and software $ 58,394 $ 49,774 Internal-use software development costs 9,174 7,432 Furniture and fixtures 4,391 3,610 Leasehold improvements 2,480 2,412 Total property and equipment 74,439 63,228 Less: accumulated depreciation and amortization (43,300 ) (35,068 ) Property and equipment, net $ 31,139 $ 28,160 Accrued liabilities consisted of the following (in thousands): September 30, December 31, 2016 2015 Accrued compensation and benefits $ 14,937 $ 10,128 Accrued sales, use and telecom related taxes 7,241 5,243 Accrued marketing 6,385 3,930 Other accrued expenses 17,805 15,401 Total accrued liabilities $ 46,368 $ 34,702 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 5. Fair Value of Financial Instruments 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. The Company measures and reports certain cash equivalents, including money market funds and certificates of deposit, at fair value in accordance with the provisions of the authoritative accounting guidance that addresses fair value measurements. This guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: Level 1: Valuations based on observable inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Valuations based on 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: Valuations based on 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 financial assets carried at fair value were determined using the following inputs (in thousands): Balance at September 30, 2016 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 119,345 $ 119,345 $ — $ — Other assets: Certificates of deposit $ 530 $ — $ 530 $ — Balance at December 31, 2015 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 119,066 $ 119,066 $ — $ — Other assets: Certificates of deposit $ 530 $ — $ 530 $ — The At September 30, 2016 and December 31, 2015, the Company estimated the fair value of its debt 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. The estimated fair value of the Company’s current and non-current debt obligations was $15.8 million at September 30, 2016, compared to its carrying amount of $15.8 million at that date. The estimated fair value of the Company’s current and non-current debt obligations was $19.0 million at December 31, 2015, compared to its carrying amount of $18.6 million at that date. If the debt was measured at fair value in th |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Note 6. Business Combinations On June 4, 2015, the Company acquired Glip, Inc. (Glip), a cloud messaging and collaboration company based in Boca Raton, Florida. Glip is a provider of team messaging services, integrated with project management, group calendars, notes, annotations, and file sharing. The consideration for this acquisition, net of cash acquired and including the fair value of contingent consideration payable in cash upon achievement of certain earn out milestones and the fair value of common stock issuable to the former stockholders of Glip was $11.9 million. Of this total consideration, $1.5 million of cash was held back by the Company upon closing as security for certain indemnification obligations of such stockholders. In June 2016, the Company paid the $1.5 million in full. The initial fair value of the milestone based earn out liability was determined to be $2.3 million using various estimates, including probabilities of achievement and discount rates. During the three months ended September 30, 2016, the Company issued 45,893 shares of the Company’s Class A common stock to settle certain milestones achieved. Based on the completion of milestones for the quarter ended September 30, 2016 and the estimated probability of completing the remaining milestones, the estimated fair value of the milestones based earn out liability was $1.9 million at September 30, 2016, which is classified as a current liability in the condensed consolidated balance sheets. Additionally, under the terms of the acquisition, the Company may also pay up to $2.0 million in payments at the end of a two-year period to certain Glip employees, who continue to be employees of the Company, which are accounted for as a post-combination expense. At September 30, 2016, the contingent payment liability was $1.2 million and classified as a current liability in the consolidated balance sheets. The carrying values of intangible assets are as follows (in thousands): September 30, 2016 December 31, 2015 Estimated Lives Cost Accumulated Amortization Acquired Intangibles, Net Accumulated Amortization Acquired Intangibles, Net Customer relationships 2 years $ 840 $ 555 $ 285 $ 240 $ 600 Developed technology 5 years 3,010 796 2,214 344 2,666 Total acquired intangible assets $ 3,850 $ 1,351 $ 2,499 $ 584 $ 3,266 Amortization expense from acquired intangible assets for the three months ended September 30, 2016 and 2015 was $0.3 million for both periods. Amortization expense from acquired intangible assets for the nine months ended September 30, 2016 and 2015 was $0.8 million and $0.3 million, respectively. Amortization of developed technology is included in cost of revenues and amortization of customer relationships is included in sales and marketing expenses in the condensed consolidated statements of operations. At September 30, 2016, the weighted average amortization periods for customer relationship and developed technology approximate 0.7 years and 3.7 years, respectively. Estimated amortization expense for acquired intangible assets for the following five fiscal years and thereafter is as follows (in thousands): 2016 (remaining) $ 255 2017 782 2018 602 2019 602 2020 258 Total estimated amortization expense $ 2,499 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 7. Debt As of September 30, 2016, the Company’s debt was comprised of borrowings under the Third Amended and Restated Loan and Security Agreement dated March 30, 2015 (SVB Agreement), as amended, with Silicon Valley Bank (SVB). The 2013 Term Loan was borrowed on December 31, 2013 with a principal amount of $15.0 million, which is being repaid in 48 equal monthly installments of principal, plus accrued and unpaid 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. In May 2016, the terms of the SVB Agreement were amended to reduce the margin on the annual rate of the 2013 Term Loan to either (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%, resulting in a current interest rate of 3.75% based on the prime rate option and cash balance maintained with SVB. As of September 30, 2016, the outstanding principal balance of the 2013 Term Loan was $5.0 million, of which $1.3 million is payable subsequent to September 30, 2017 and is classified as a non-current liability in the accompanying condensed consolidated balance sheet. The revolving line of credit provides for a maximum borrowing of up to $15.0 million in principal amount, subject to limits based on recurring software subscription revenue amounts as defined in the SVB Agreement. The recurring software 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 an annual rate of either 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. In August 2015, the terms of the SVB Agreement were amended to extend the maturity of the revolving line of credit from August 13, 2015 to August 14, 2017. In May 2016, the terms of the SVB Agreement were amended to reduce the margin on the annual rate of the revolving line of credit to either the (i) prime rate plus a margin of 0% or 0.25% or (ii) adjusted LIBOR rate (based on one, two, three, or six-month interest periods) plus a margin of 3.0% to 3.25%, resulting in a current interest rate of 3.50% based on the prime rate option and cash balance maintained with SVB. As of September 30, 2016, the outstanding principal balance and the available borrowing capacity of the line of credit were $10.8 million and $4.2 million, respectively. The outstanding principal balance is classified as a current liability in the condensed consolidated balance sheet as the principal balance is due in August 2017. 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 $10.0 million, as defined in the agreement, and (ii) maintain minimum EBITDA levels, as determined in accordance with the agreement. In March 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 September 30, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8. 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. The Company leases space for its corporate headquarters in Belmont, California through July 2021. Sales Tax Liability The Company regularly increases its sales and marketing activities in various states within the U.S., which may create nexus in those states to collect sales taxes on sales to customers. Although the Company is diligent in collecting and remitting such taxes, there is uncertainty as to what constitutes sufficient in state presence for a state to levy taxes, fees, and surcharges for sales made over the Internet. As of September 30, 2016 and December 31, 2015, the Company had a long-term sales tax liability of $3.5 million and $3.7 million, 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. The Company recorded a current sales tax liability for non-contingent amounts expected to be remitted in the next twelve months of $4.7 million and $4.4 million as of September 30, 2016 and December 31, 2015, respectively, which is included in accrued liabilities. 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. TCPA Matter On April 21, 2016, Supply Pro Sorbents, LLC (SPS) filed a putative class action against the Company in the United States District Court for the Northern District of California (Court), alleging common law conversion and violations of the federal Telephone Consumer Protection Act (TCPA) arising from fax cover sheets used by the Company’s customers when sending facsimile transmissions over the Company’s system (Lawsuit). SPS sought statutory damages, costs, attorneys’ fees and an injunction in connection with its TCPA claim, and unspecified damages and punitive damages in connection with its conversion claim. On July 6, 2016, the Company filed a Petition for Expedited Declaratory Ruling before the Federal Communications Commission (FCC), requesting that the FCC issue a ruling clarifying certain portions of its regulations promulgated under TCPA at issue in the Lawsuit (Petition). On July 8, 2016, the Company filed a motion to dismiss the Lawsuit in its entirety, along with a collateral motion to dismiss or stay the Lawsuit pending a ruling by the FCC on the Company’s Petition. On October 7, 2016, the Court granted the Company’s motion to dismiss and gave SPS 20 days to amend its complaint. The Court concurrently dismissed the Company’s motion to dismiss or stay as moot. SPS filed its amended complaint on October 27, 2016, alleging the same theories and claims. The Company intends to vigorously defend itself and anticipates filing another motion to dismiss and a collateral motion to dismiss or stay the case pending resolution of the FCC Petition. Litigation is inherently uncertain, however, and it is too early in this proceeding to predict the outcome of this Lawsuit. Based on the information known by the Company as of the date of this filing and the rules and regulations applicable to the preparation of the Company’s condensed consolidated financial statements, it is not possible to provide an estimated amount of any such loss or range of loss that may occur. As of December 31, 2015, there were no significant ongoing legal matters and the Company did not have any accrued liabilities recorded for such loss contingencies. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 9. Share-Based Compensation A summary of share-based compensation expense recognized in the Company’s condensed consolidated statements of operations is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Cost of revenues $ 859 $ 535 $ 2,324 $ 1,468 Research and development 1,996 1,351 5,491 3,745 Sales and marketing 3,023 1,797 7,791 5,333 General and administrative 2,511 2,069 6,997 5,244 Total share-based compensation expense $ 8,389 $ 5,752 $ 22,603 $ 15,790 A summary of share-based compensation expense by award type is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Options $ 2,382 $ 2,744 $ 7,366 $ 8,357 Employee stock purchase plan rights 527 287 1,375 854 Restricted stock units 5,480 2,721 13,862 6,579 Total share-based compensation expense $ 8,389 $ 5,752 $ 22,603 $ 15,790 Equity Incentive Plans As of September 30, 2016, a total of 8,775,309 shares remained available for grant under the 2013 Equity Incentive Plan (2013 Plan). A summary of option activity under all of the Company’s equity incentive plans at September 30, 2016 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, 2015 8,048 $ 10.27 6.2 $ 107,091 Granted 539 16.46 Exercised (601 ) 9.07 Canceled/Forfeited (236 ) 15.53 Outstanding at September 30, 2016 7,750 $ 10.64 5.5 $ 101,047 Vested and expected to vest as of September 30, 2016 7,379 $ 10.37 5.5 $ 98,134 Exercisable as of September 30, 2016 5,389 $ 8.53 5.4 $ 81,557 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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Weighted average grant date fair value per share $ 9.22 $ 7.48 $ 6.70 $ 6.76 Total intrinsic value of options exercised $ 2,561 $ 7,135 $ 6,956 $ 16,964 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 model in the periods presented were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Expected term for employees (in years) 4.7 4.7 4.7 4.8 Expected term for non-employees (in years) 5.8 7.2 6.1 7.1 Risk-free interest rate 1.1 % 1.5 % 1.1 % 1.2 % Expected volatility 46.4 % 47.0 % 47.2 % 48.0 % Expected dividend yield 0 % 0 % 0 % 0 % As of September 30, 2016, there was approximately $12.7 million 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 period of approximately 2.2 years. Employee Stock Purchase Plan The 2013 Employee Stock Purchase Plan (ESPP) allows eligible employees to purchase shares of the Class A common stock at a discounted price, through payroll deductions of up to the lesser of 15% of their eligible compensation or the IRS allowable limit per calendar year. A participant may purchase a maximum of 3,000 shares during an offering period. The offering periods start on the first trading day on or after May 11th and November 11th of each year. At the end of the offering period, the discounted purchase price is set at the lower of: (i) 90% of the fair value of the Company’s Class A common stock at the beginning of the six month offering period and (ii) 90% of the fair value of the Company’s Class A common stock at the end of the six month offering period. As of September 30, 2016, there was a total of $0.2 million 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 September 30, 2016, a total of 2,450,266 shares were available for issuance under the ESPP. Restricted Stock Units The 2013 Plan provides for the issuance of restricted stock units (RSUs) to employees, directors, and consultants. RSUs issued under the 2013 Plan generally vest and are released over four years. A summary of activity of RSUs under the 2013 Plan at September 30, 2016 and changes during the period then ended is presented in the following table: Number of Weighted- RSUs Average Aggregate Outstanding Grant Date Fair Intrinsic Value (in thousands) Value Per Share (in thousands) Outstanding at December 31, 2015 2,288 $ 16.63 $ 53,972 Granted 2,597 18.48 Released (803 ) 16.59 Canceled/Forfeited (326 ) 17.69 Outstanding at September 30, 2016 3,756 $ 17.82 $ 89,068 As of September 30, 2016, there was a total of $49.1 million 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 3.0 years. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 10. Segment Reporting 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. Concentrations Revenue by geographic location is based on the billing address of the customer. More than 90% of the Company’s revenues were derived from the U.S. during the three and nine months ended September 30, 2016 and 2015. Generally, 77% of the Company’s billings, including carrier partner billings, are collected through credit card payments, resulting in a minimal accounts receivable balance. The Company’s accounts receivable balance primarily consists of receivables due from larger customers and carriers who are billed on invoices at customary payment terms. As the Company moves up-market and acquires larger customers, the Company expects the accounts receivable balance to increase. At September 30, 2016 and December 31, 2015, one of the Company’s carriers accounted for 37% and 39% of the Company’s total accounts receivable, respectively. Long-lived assets by geographic location is based on the location of the legal entity that owns the asset. At September 30, 2016 and December 31, 2015, more than 89% of the Company’s consolidated long-lived assets were located in the U.S. with no single country outside of the U. S. representing more than 10% of the Company’s consolidated long-lived assets. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes The provision for income taxes for the three and nine months ended September 30, 2016, was $46,000 and $153,000, respectively, and consisted primarily of state minimum taxes and foreign income taxes. For the three and nine months ended September 30, 2015, the Company recorded a benefit for income taxes of $56,000 and $1.3 million, respectively, which was due to partially releasing its valuation allowance. During June 2015, the Company recorded a deferred tax liability for the book-tax basis difference for the intangibles acquired as part of the Glip acquisition. As this deferred tax liability provided an additional source of income to support the realizability of the Company’s pre-existing deferred tax asset, the Company released $1.4 million of its valuation allowance in June 2015. For the three and nine months ended September 30, 2016 and September 30, 2015, the provision for income taxes differed from the U.S federal statutory rate primarily due to state and foreign taxes currently payable. Additionally, the Company realized no benefit for current year losses due to a full valuation allowance against the U.S. and the 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 September 30, 2016 and December 31, 2015. The Company intends to maintain the full valuation allowance on the U.S. net deferred tax assets until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance. During the three and nine months ended September 30, 2016, there have been no significant changes to the total amount of unrecognized tax benefits. |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | Note 12. 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 shares of 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, stock options, restricted stock units, ESPP, stock options related to the non-vested early exercises, and stock related to non-vested restricted stock awards, to the extent they are dilutive. For the three and nine months ended September 30, 2016 and 2015, 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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator Net loss $ (7,979 ) $ (6,336 ) $ (22,363 ) $ (25,158 ) Denominator Weighted-average common shares for basic and diluted net loss per share 73,285 70,580 72,669 69,614 Basic and diluted net loss per share $ (0.11 ) $ (0.09 ) $ (0.31 ) $ (0.36 ) The following table presents the weighted-average potential shares that were excluded from the computation of weighted-average common shares in computing the diluted net loss per common share for the periods presented because including them would have had an anti-dilutive effect (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Shares of unvested common stock subject to repurchase — 5 — 5 Shares of common stock issuable under equity incentive awards outstanding 11,990 11,519 11,784 11,598 Potential common shares excluded from diluted net loss per share 11,990 11,524 11,784 11,603 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 13. Related Party Transactions In the ordinary course of business, the Company made purchases from Alphabet Inc., the parent company of Google Inc., at which one of the Company’s directors serves as a Vice President of Google, Inc. Total payables to Alphabet at September 30, 2016 and December 31, 2015 were $1.5 million and $2.0 million, respectively. Total expenses incurred from Alphabet were $3.8 million and $9.8 million in the three and nine months ended September 30, 2016, respectively, and $2.8 million and $8.9 million for the three and nine months ended September 30, 2015, respectively. |
Description of Business and S19
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The unaudited condensed consolidated financial statements and accompanying notes of the Company reflect all adjustments (all of which are normal, recurring in nature and those discussed in these notes) that are, in the opinion of management, 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, 2016. Certain information and note disclosures normally included in annual consolidated 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 (SEC). The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated 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 condensed consolidated financial statements and the reported results of operations during the reporting period. The significant estimates made by management affect revenues, accounts receivable, allowance for doubtful accounts, inventory reserves, intangibles, goodwill, 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, which are adjusted prospectively based upon such periodic evaluation. Actual results could differ from these estimates and such differences may be material to the accompanying condensed consolidated financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718) In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (Topic 606) In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory |
Reclassification | Reclassification Cer tain immaterial items previously reported have been reclassified to conform to the current year’s reporting presentation. |
Financial Statement Components
Financial Statement Components (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Statement Of Financial Position [Abstract] | |
Components of Cash and Cash Equivalents | Cash and cash equivalents consisted of the following (in thousands): September 30, December 31, 2016 2015 Cash $ 33,045 $ 18,522 Money market funds 119,345 119,066 Total cash and cash equivalents $ 152,390 $ 137,588 |
Components of Accounts Receivable, Net | Accounts receivable, net consisted of the following (in thousands): September 30, December 31, 2016 2015 Accounts receivable $ 20,811 $ 15,509 Unbilled accounts receivable 3,177 4,031 Allowance for doubtful accounts (405 ) (377 ) Accounts receivable, net $ 23,583 $ 19,163 |
Components of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): September 30, December 31, 2016 2015 Computer hardware and software $ 58,394 $ 49,774 Internal-use software development costs 9,174 7,432 Furniture and fixtures 4,391 3,610 Leasehold improvements 2,480 2,412 Total property and equipment 74,439 63,228 Less: accumulated depreciation and amortization (43,300 ) (35,068 ) Property and equipment, net $ 31,139 $ 28,160 |
Components of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): September 30, December 31, 2016 2015 Accrued compensation and benefits $ 14,937 $ 10,128 Accrued sales, use and telecom related taxes 7,241 5,243 Accrued marketing 6,385 3,930 Other accrued expenses 17,805 15,401 Total accrued liabilities $ 46,368 $ 34,702 |
Fair Value of Financial Instr21
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Carried at Fair Value | The financial assets carried at fair value were determined using the following inputs (in thousands): Balance at September 30, 2016 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 119,345 $ 119,345 $ — $ — Other assets: Certificates of deposit $ 530 $ — $ 530 $ — Balance at December 31, 2015 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 119,066 $ 119,066 $ — $ — Other assets: Certificates of deposit $ 530 $ — $ 530 $ — |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Carrying Values of Intangible Assets | The carrying values of intangible assets are as follows (in thousands): September 30, 2016 December 31, 2015 Estimated Lives Cost Accumulated Amortization Acquired Intangibles, Net Accumulated Amortization Acquired Intangibles, Net Customer relationships 2 years $ 840 $ 555 $ 285 $ 240 $ 600 Developed technology 5 years 3,010 796 2,214 344 2,666 Total acquired intangible assets $ 3,850 $ 1,351 $ 2,499 $ 584 $ 3,266 |
Glip, Inc. | |
Summary of Estimated Amortization Expense for Acquired Intangible Assets | Estimated amortization expense for acquired intangible assets for the following five fiscal years and thereafter is as follows (in thousands): 2016 (remaining) $ 255 2017 782 2018 602 2019 602 2020 258 Total estimated amortization expense $ 2,499 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Cost of revenues $ 859 $ 535 $ 2,324 $ 1,468 Research and development 1,996 1,351 5,491 3,745 Sales and marketing 3,023 1,797 7,791 5,333 General and administrative 2,511 2,069 6,997 5,244 Total share-based compensation expense $ 8,389 $ 5,752 $ 22,603 $ 15,790 |
Summary of Share-Based Compensation Expense by Award Type | A summary of share-based compensation expense by award type is as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Options $ 2,382 $ 2,744 $ 7,366 $ 8,357 Employee stock purchase plan rights 527 287 1,375 854 Restricted stock units 5,480 2,721 13,862 6,579 Total share-based compensation expense $ 8,389 $ 5,752 $ 22,603 $ 15,790 |
Summary of Stock Option Activity Plans | A summary of option activity under all of the Company’s equity incentive plans at September 30, 2016 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, 2015 8,048 $ 10.27 6.2 $ 107,091 Granted 539 16.46 Exercised (601 ) 9.07 Canceled/Forfeited (236 ) 15.53 Outstanding at September 30, 2016 7,750 $ 10.64 5.5 $ 101,047 Vested and expected to vest as of September 30, 2016 7,379 $ 10.37 5.5 $ 98,134 Exercisable as of September 30, 2016 5,389 $ 8.53 5.4 $ 81,557 |
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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Weighted average grant date fair value per share $ 9.22 $ 7.48 $ 6.70 $ 6.76 Total intrinsic value of options exercised $ 2,561 $ 7,135 $ 6,956 $ 16,964 |
Weighted Average Assumptions Used to Fair Value of Stock Options Granted | The weighted-average assumptions used in the option pricing model in the periods presented were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Expected term for employees (in years) 4.7 4.7 4.7 4.8 Expected term for non-employees (in years) 5.8 7.2 6.1 7.1 Risk-free interest rate 1.1 % 1.5 % 1.1 % 1.2 % Expected volatility 46.4 % 47.0 % 47.2 % 48.0 % Expected dividend yield 0 % 0 % 0 % 0 % |
Summary of RSUs Activity | The 2013 Plan provides for the issuance of restricted stock units (RSUs) to employees, directors, and consultants. RSUs issued under the 2013 Plan generally vest and are released over four years. A summary of activity of RSUs under the 2013 Plan at September 30, 2016 and changes during the period then ended is presented in the following table: Number of Weighted- RSUs Average Aggregate Outstanding Grant Date Fair Intrinsic Value (in thousands) Value Per Share (in thousands) Outstanding at December 31, 2015 2,288 $ 16.63 $ 53,972 Granted 2,597 18.48 Released (803 ) 16.59 Canceled/Forfeited (326 ) 17.69 Outstanding at September 30, 2016 3,756 $ 17.82 $ 89,068 |
Basic and Diluted Net Loss Pe24
Basic and Diluted Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator Net loss $ (7,979 ) $ (6,336 ) $ (22,363 ) $ (25,158 ) Denominator Weighted-average common shares for basic and diluted net loss per share 73,285 70,580 72,669 69,614 Basic and diluted net loss per share $ (0.11 ) $ (0.09 ) $ (0.31 ) $ (0.36 ) |
Weighted Average Potential Common Shares Excluded from Computation of Diluted Net Loss Per Common Share | The following table presents the weighted-average potential shares that were excluded from the computation of weighted-average common shares in computing the diluted net loss per common share for the periods presented because including them would have had an anti-dilutive effect (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Shares of unvested common stock subject to repurchase — 5 — 5 Shares of common stock issuable under equity incentive awards outstanding 11,990 11,519 11,784 11,598 Potential common shares excluded from diluted net loss per share 11,990 11,524 11,784 11,603 |
Change in Presentation - Additi
Change in Presentation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Product revenues | $ 2.2 | $ 6 | $ 10 | $ 16.9 |
Product cost of revenues | $ 3.4 | $ 5.1 | $ 11.6 | $ 14.5 |
Financial Statement Component26
Financial Statement Components - Components of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Cash And Cash Equivalents [Abstract] | ||||
Cash | $ 33,045 | $ 18,522 | ||
Money market funds | 119,345 | 119,066 | ||
Total cash and cash equivalents | $ 152,390 | $ 137,588 | $ 130,004 | $ 113,182 |
Financial Statement Component27
Financial Statement Components - Components of Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Accounts receivable | $ 20,811 | $ 15,509 |
Unbilled accounts receivable | 3,177 | 4,031 |
Allowance for doubtful accounts | (405) | (377) |
Accounts receivable, net | $ 23,583 | $ 19,163 |
Financial Statement Component28
Financial Statement Components - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 74,439 | $ 63,228 |
Less: accumulated depreciation and amortization | (43,300) | (35,068) |
Property and equipment, net | 31,139 | 28,160 |
Computer hardware and software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 58,394 | 49,774 |
Internal-use software development costs | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 9,174 | 7,432 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 4,391 | 3,610 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 2,480 | $ 2,412 |
Financial Statement Component29
Financial Statement Components - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Accrued compensation and benefits | $ 14,937 | $ 10,128 |
Accrued sales, use and telecom related taxes | 7,241 | 5,243 |
Accrued marketing | 6,385 | 3,930 |
Other accrued expenses | 17,805 | 15,401 |
Total accrued liabilities | $ 46,368 | $ 34,702 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments - Financial Assets Carried at Fair Value (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Money market funds | $ 119,345 | $ 119,066 |
Money market funds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Money market funds | 119,345 | 119,066 |
Certificates of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Certificates of deposit | 530 | 530 |
Certificates of deposit | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Certificates of deposit | $ 530 | $ 530 |
Fair Value of Financial Instr31
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Fair value of debt obligation | $ 15.8 | $ 19 |
Carrying value of debt obligation | $ 15.8 | $ 18.6 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) | Jun. 04, 2015 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Business Acquisition [Line Items] | ||||||
Business combination, contingent consideration paid in full | $ 1,500,000 | |||||
Glip, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, consideration payable in combination of cash and common stock | $ 11,900,000 | |||||
Business combination, fair value of milestone based earn out liability | 2,300,000 | |||||
Business combination, fair value of milestone based earn out liability, current | $ 1,900,000 | 1,900,000 | ||||
Business combination contingent consideration maximum potential cash payment | 2,000,000 | $ 2,000,000 | ||||
Business combination earn out period of contingent consideration | 2 years | |||||
Business combination, contingent payment liability | 1,200,000 | $ 1,200,000 | ||||
Amortization expense of Intangible Assets | $ 300,000 | $ 300,000 | $ 800,000 | $ 300,000 | ||
Glip, Inc. | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average amortization periods | 8 months 12 days | |||||
Glip, Inc. | Developed Technology | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average amortization periods | 3 years 8 months 12 days | |||||
Asset purchase agreement | Glip, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, contingent consideration paid in full | $ 1,500,000 | |||||
Business combination, fair value of milestone based earn out liability | $ 1,500,000 | |||||
Class A common stock | Glip, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, shares issued to settle certain milestones achieved | 45,893 |
Business Combinations - Summary
Business Combinations - Summary of Carrying Values of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Acquired Intangibles, Net | $ 2,500 | $ 3,266 |
Glip, Inc. | ||
Business Acquisition [Line Items] | ||
Cost | 3,850 | 3,850 |
Accumulated Amortization | 1,351 | 584 |
Acquired Intangibles, Net | 2,499 | 3,266 |
Glip, Inc. | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Cost | 840 | 840 |
Accumulated Amortization | 555 | 240 |
Acquired Intangibles, Net | $ 285 | $ 600 |
Estimated Lives | 2 years | 2 years |
Glip, Inc. | Developed Technology | ||
Business Acquisition [Line Items] | ||
Cost | $ 3,010 | $ 3,010 |
Accumulated Amortization | 796 | 344 |
Acquired Intangibles, Net | $ 2,214 | $ 2,666 |
Estimated Lives | 5 years | 5 years |
Business Combinations - Summa34
Business Combinations - Summary of Estimated Amortization Expense for Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Acquired Indefinite Lived Intangible Assets [Line Items] | ||
Acquired Intangibles, Net | $ 2,500 | $ 3,266 |
Glip, Inc. | ||
Acquired Indefinite Lived Intangible Assets [Line Items] | ||
2016 (remaining) | 255 | |
2,017 | 782 | |
2,018 | 602 | |
2,019 | 602 | |
2,020 | 258 | |
Acquired Intangibles, Net | $ 2,499 | $ 3,266 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Apr. 30, 2016 | Dec. 31, 2013USD ($)Installment | May 31, 2016 | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,250,000 | $ 14,840,000 | |||
Required Cash Balances Maintained With Silicon Valley Bank | Prime Rate | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Percentage of margin | 0.25% | ||||
Required Cash Balances Maintained With Silicon Valley Bank | LIBOR Rate | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Percentage of margin | 3.25% | ||||
Required Cash Balances Not Maintained With Silicon Valley Bank | Prime Rate | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Percentage of margin | 0.50% | ||||
Required Cash Balances Not Maintained With Silicon Valley Bank | LIBOR Rate | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Percentage of margin | 3.50% | ||||
SVB Agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt covenant requirement | $ 10,000,000 | ||||
SVB Agreement | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt | 3.50% | ||||
Debt instrument, maturity, description | due in August 2017 | ||||
Revolving line of credit, maximum borrowing amount | $ 15,000,000 | ||||
Line of credit facility, expiration date prior to amendment | Aug. 13, 2015 | ||||
Debt instrument maturity date | Aug. 14, 2017 | ||||
Borrowing under the revolving line of credit facility | $ 10,800,000 | ||||
Line of credit, available borrowing capacity | $ 4,200,000 | ||||
SVB Agreement | 2013 Capital Growth Term Loan | |||||
Debt Instrument [Line Items] | |||||
Term loan | $ 15,000,000 | ||||
Number of monthly installments for principal and interest payment | Installment | 48 | ||||
Interest rate on debt | 3.75% | ||||
Outstanding balance of term loan | $ 5,000,000 | ||||
Long-term debt | $ 1,300,000 | ||||
Debt instrument, maturity, description | payable subsequent to September 30, 2017 | ||||
SVB 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 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 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 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% | ||||
Amended SVB Agreement | Required Cash Balances Maintained With Silicon Valley Bank | Prime Rate | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Percentage of margin | 0.00% | ||||
Amended SVB Agreement | Required Cash Balances Maintained With Silicon Valley Bank | LIBOR Rate | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Percentage of margin | 3.00% | ||||
Amended SVB Agreement | Required Cash Balances Not Maintained With Silicon Valley Bank | Prime Rate | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Percentage of margin | 0.25% | ||||
Amended SVB Agreement | Required Cash Balances Not Maintained With Silicon Valley Bank | LIBOR Rate | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Percentage of margin | 3.25% | ||||
Amended SVB Agreement | 2013 Capital Growth Term Loan | Required Cash Balances Maintained With Silicon Valley Bank | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Percentage of margin | 0.25% | ||||
Amended SVB Agreement | 2013 Capital Growth Term Loan | Required Cash Balances Maintained With Silicon Valley Bank | LIBOR Rate | |||||
Debt Instrument [Line Items] | |||||
Percentage of margin | 3.25% | ||||
Amended SVB Agreement | 2013 Capital Growth Term Loan | Required Cash Balances Not Maintained With Silicon Valley Bank | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Percentage of margin | 0.50% | ||||
Amended SVB Agreement | 2013 Capital Growth Term Loan | Required Cash Balances Not Maintained With Silicon Valley Bank | LIBOR Rate | |||||
Debt Instrument [Line Items] | |||||
Percentage of margin | 3.50% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($)Legal_Matter |
Commitments And Contingencies Disclosure [Abstract] | ||
Long-term sales tax liability | $ 3,527,000 | $ 3,670,000 |
Current sales tax liability for non-contingent amounts | $ 4,700,000 | 4,400,000 |
Accrued liabilities recorded for loss contingencies | $ 0 | |
Number of ongoing legal matters | Legal_Matter | 0 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-Based Compensation Expense Recognized to Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 8,389 | $ 5,752 | $ 22,603 | $ 15,790 |
Cost of Revenues | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 859 | 535 | 2,324 | 1,468 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 1,996 | 1,351 | 5,491 | 3,745 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 3,023 | 1,797 | 7,791 | 5,333 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 2,511 | $ 2,069 | $ 6,997 | $ 5,244 |
Share-Based Compensation - Su38
Share-Based Compensation - Summary of Share-Based Compensation Expense by Award Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 8,389 | $ 5,752 | $ 22,603 | $ 15,790 |
Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | 2,382 | 2,744 | 7,366 | 8,357 |
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | 5,480 | 2,721 | 13,862 | 6,579 |
Employee Stock Purchase Plan Rights | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 527 | $ 287 | $ 1,375 | $ 854 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)shares | |
2013 Employee stock purchase plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Available for future grants | shares | 2,450,266 |
Unrecognized share-based compensation expense, remaining weighted-average vesting periods | 1 month 6 days |
Eligible compensation under the Employee Stock Purchase Plan | 15.00% |
Purchase of maximum shares by employees under Employee Stock Purchase Plan | shares | 3,000 |
Unrecognized share-based compensation expense | $ | $ 0.2 |
Class A common stock | 2013 Employee stock purchase plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Discounted 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 | $ | $ 12.7 |
Unrecognized share-based compensation expense, remaining weighted-average vesting periods | 2 years 2 months 12 days |
Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting period contractual term | 4 years |
RSUs | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized share-based compensation expense, remaining weighted-average vesting periods | 3 years |
Unrecognized share-based compensation expense | $ | $ 49.1 |
2013 Equity Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Available for future grants | shares | 8,775,309 |
Share-Based Compensation - Su40
Share-Based Compensation - Summary of Stock Option Activity Plans (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Number of Options Outstanding | ||
Number of Options Outstanding, Beginning Balance | 8,048 | |
Number of Options Outstanding, Granted | 539 | |
Number of Options Outstanding, Exercised | (601) | |
Number of Options Outstanding, Canceled/Forfeited | (236) | |
Number of Options Outstanding, Ending Balance | 7,750 | 8,048 |
Number of Options Outstanding, Vested and expected to vest | 7,379 | |
Number of Options Outstanding, Exercisable | 5,389 | |
Weighted-Average Exercise Price Per Share | ||
Weighted-Average Exercise Price Per Share, Beginning Balance | $ 10.27 | |
Weighted-Average Exercise Price Per Share, Granted | 16.46 | |
Weighted-Average Exercise Price Per Share, Exercised | 9.07 | |
Weighted-Average Exercise Price Per Share, Canceled/Forfeited | 15.53 | |
Weighted-Average Exercise Price Per Share, Ending Balance | 10.64 | $ 10.27 |
Weighted-Average Exercise Price Per Share, Vested and expected to vest | 10.37 | |
Weighted-Average Exercise Price Per Share, Exercisable | $ 8.53 | |
Weighted-Average Contractual Term | ||
Weighted-Average Contractual Term | 5 years 6 months | 6 years 2 months 12 days |
Weighted-Average Contractual Term, Vested and expected to vest | 5 years 6 months | |
Weighted-Average Contractual Term, Exercisable | 5 years 4 months 24 days | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value, Outstanding | $ 101,047 | $ 107,091 |
Aggregate Intrinsic Value, Vested and expected to vest | 98,134 | |
Aggregate Intrinsic Value, Exercisable | $ 81,557 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted Average Grant Date Fair Value of Options Granted and Total Intrinsic Value of Options Exercised (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Weighted average grant date fair value per share | $ 9.22 | $ 7.48 | $ 6.70 | $ 6.76 |
Total intrinsic value of options exercised | $ 2,561 | $ 7,135 | $ 6,956 | $ 16,964 |
Share-Based Compensation - We42
Share-Based Compensation - Weighted Average Assumptions Used to Fair Value of Stock Options Granted (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 1.10% | 1.50% | 1.10% | 1.20% |
Expected volatility | 46.40% | 47.00% | 47.20% | 48.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 4 years 8 months 12 days | 4 years 8 months 12 days | 4 years 8 months 12 days | 4 years 9 months 18 days |
Non Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 9 months 18 days | 7 years 2 months 12 days | 6 years 1 month 6 days | 7 years 1 month 6 days |
Share-Based Compensation - Su43
Share-Based Compensation - Summary of RSUs Activity (Detail) - Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of RSUs Outstanding, Beginning Balance | 2,288 | |
Number of RSUs Outstanding, Granted | 2,597 | |
Number of RSUs Outstanding, Released | (803) | |
Number of RSUs Outstanding, Canceled/Forfeited | (326) | |
Number of RSUs Outstanding, Ending Balance | 3,756 | |
Weighted-Average Grant Date Fair Value Per Share, Beginning Balance | $ 16.63 | |
Weighted-Average Grant Date Fair Value Per Share, Granted | 18.48 | |
Weighted-Average Grant Date Fair Value Per Share, Released | 16.59 | |
Weighted-Average Grant Date Fair Value Per Share, Canceled/Forfeited | 17.69 | |
Weighted-Average Grant Date Fair Value Per Share, Ending Balance | $ 17.82 | |
Aggregate Intrinsic Value, Outstanding | $ 89,068 | $ 53,972 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016Country | Sep. 30, 2015 | Sep. 30, 2016SegmentCountry | Sep. 30, 2015 | Dec. 31, 2015Country | |
Concentration Risk [Line Items] | |||||
Number of reporting segment | Segment | 1 | ||||
Percentage of billings including carrier partner billings collected through credit cards, resulting in minimal accounts receivable balance | 77.00% | ||||
Accounts Receivable | Customer Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 37.00% | 39.00% | |||
Non-US [Member] | Long-lived Assets | Geographic Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Number of foreign countries representing more than ten percent | Country | 0 | 0 | 0 | ||
Minimum | U.S. | Sales Revenue, Segment | Geographic Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 90.00% | 90.00% | 90.00% | 90.00% | |
Minimum | U.S. | Long-lived Assets | Geographic Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 89.00% | 89.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Provision (benefit) for income taxes | $ 46,000 | $ (56,000) | $ 153,000 | $ (1,342,000) | |
Deferred tax assets, valuation allowance | $ 1,400,000 | ||||
Unrecognized tax benefits | $ 0 | $ 0 |
Basic and Diluted Net Loss Pe46
Basic and Diluted Net Loss Per Share - Computation of Company's Basic and Diluted Net Loss Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator | ||||
Net loss | $ (7,979) | $ (6,336) | $ (22,363) | $ (25,158) |
Denominator | ||||
Weighted-average common shares for basic and diluted net loss per share | 73,285 | 70,580 | 72,669 | 69,614 |
Basic and diluted net loss per share | $ (0.11) | $ (0.09) | $ (0.31) | $ (0.36) |
Basic and Diluted Net Loss Pe47
Basic and Diluted Net Loss Per Share - Weighted Average Potential Common Shares Excluded from Computation of Diluted Net Loss Per Common Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potential common shares excluded from diluted net loss per share | 11,990 | 11,524 | 11,784 | 11,603 |
Repurchase Unvested Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potential common shares excluded from diluted net loss per share | 5 | 5 | ||
Equity Incentive Awards | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potential common shares excluded from diluted net loss per share | 11,990 | 11,519 | 11,784 | 11,598 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Alphabet Inc. - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Total payables to related party | $ 1.5 | $ 1.5 | $ 2 | ||
Total expenses incurred from related party | $ 3.8 | $ 2.8 | $ 9.8 | $ 8.9 |