RingCentral (RNG) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 02, 2017
Document And Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
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		62,299,595
Class B common stock
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		12,866,564

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 149,690	$ 160,355
Accounts receivable, net	31,325	30,243
Prepaid expenses and other current assets	17,351	15,313
Total current assets	198,366	205,911
Property and equipment, net	34,161	31,994
Goodwill	9,393	9,393
Acquired intangibles, net	1,989	2,244
Other assets	3,025	3,087
Total assets	246,934	252,629
Current liabilities
Accounts payable	4,738	7,810
Accrued liabilities	51,890	48,322
Current portion of capital lease obligation		181
Current portion of long-term debt		14,528
Deferred revenue	49,368	45,159
Total current liabilities	105,996	116,000
Long-term debt		312
Sales tax liability	3,077	3,077
Other long-term liabilities	3,377	3,199
Total liabilities	112,450	122,588
Commitments and contingencies (Note 8)
Stockholders' equity
Common stock	7	7
Additional paid-in capital	378,521	366,800
Accumulated other comprehensive income	2,768	2,737
Accumulated deficit	(246,812)	(239,503)
Total stockholders' equity	134,484	130,041
Total liabilities and stockholders' equity	$ 246,934	$ 252,629

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues
Software subscriptions	$ 103,687	$ 79,978
Other	8,104	6,560
Total revenues	111,791	86,538
Cost of revenues
Software subscriptions	20,263	16,723
Other	7,043	5,017
Total cost of revenues	27,306	21,740
Gross profit	84,485	64,798
Operating expenses
Research and development	17,087	14,926
Sales and marketing	58,894	41,828
General and administrative	15,805	14,024
Total operating expenses	91,786	70,778
Loss from operations	(7,301)	(5,980)
Other income (expense), net
Interest expense	(79)	(216)
Other income (expense), net	122	(367)
Other income (expense), net	43	(583)
Loss before income taxes	(7,258)	(6,563)
Provision for income taxes	51	50
Net loss	$ (7,309)	$ (6,613)
Net loss per common share
Basic and diluted	$ (0.10)	$ (0.09)
Weighted-average number of shares used in computing net loss per share
Basic and diluted	74,682	72,114

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (7,309)	$ (6,613)
Other comprehensive loss
Foreign currency translation adjustments	31	542
Comprehensive loss	$ (7,278)	$ (6,071)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net loss	$ (7,309)	$ (6,613)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	3,785	3,377
Share-based compensation	8,935	6,737
Foreign currency remeasurement (gain) loss	(44)	448
Provision for bad debt	289	228
Deferred income taxes	(2)	(4)
Other	98	17
Changes in assets and liabilities:
Accounts receivable	(1,371)	(6,689)
Prepaid expenses and other current assets	(2,038)	444
Other assets	45	4
Accounts payable	(2,224)	(2,430)
Accrued liabilities	4,159	6,927
Deferred revenue	4,209	2,375
Other liabilities	178	(12)
Net cash provided by operating activities	8,710	4,809
Cash flows from investing activities
Purchases of property and equipment	(5,155)	(2,023)
Capitalized internal-use software	(1,640)	(439)
Net cash used in investing activities	(6,795)	(2,462)
Cash flows from financing activities
Proceeds from issuance of stock in connection with stock plans	2,679	281
Taxes paid related to net share settlement of equity awards	(221)
Repayment of debt	(14,840)	(938)
Repayment of capital lease obligations	(181)	(87)
Net cash used in financing activities	(12,563)	(744)
Effect of exchange rate changes on cash and cash equivalents	(17)	(117)
Net (decrease) increase in cash and cash equivalents	(10,665)	1,486
Cash and cash equivalents
Beginning of period	160,355	137,588
End of period	149,690	139,074
Supplemental disclosure of cash flow data
Cash paid for interest	116	169
Cash paid for income taxes	83	123
Non-cash investing and financing activities
Change in liability for unvested exercised options		3
Equipment and capitalized internal-use software purchased and unpaid at period end	757	$ 496
Glip, Inc.
Non-cash investing and financing activities
Issuance of common stock for business combination	$ 200

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
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, 2017. 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, 2016. 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, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The significant estimates made by management affect revenues, the allowance for doubtful accounts, goodwill, share-based compensation, capitalization of internally developed software, return reserves, provision for income taxes, uncertain tax positions, loss contingencies, sales tax liabilities, and accrued liabilities. Management periodically evaluates these estimates and will make adjustments prospectively based upon the results of such periodic evaluations. Actual results could differ from these estimates. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), The Company is currently evaluating the potential changes from adopting the new standard on its financial statements and disclosures. The Company is in the process of implementing appropriate changes to its business processes, systems and controls to support revenue recognition and disclosures under the new standard. Based on this evaluation, the Company will adopt the requirements of the new standard in the first quarter of 2018 and anticipates using the modified retrospective transition method. Additionally, as the Company continues to assess the new standard along with industry trends and internal progress, the Company may adjust its implementation plan and methodology to use the full retrospective method accordingly. Under the new standard, the Company expects in some cases to recognize revenue earlier for subscription plans with free periods and products sold at discounts. The impact of adopting the new standard on the Company’s total revenues is not expected to be material. The Company anticipates the most significant impact of adopting the new standard primarily relates to the deferral of sales commissions due to capitalization of certain sales commissions, which previously were expensed as incurred and to the incremental disclosure requirements. Under the new standard, certain commissions will be capitalized and amortized over the expected period of benefit. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 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 In November 2016, the FASB issued ASU 2016-18, Restricted Cash In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718) 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	3 Months Ended
	Mar. 31, 2017
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 was an agent of Westcon and received a commission for its services, which primarily included referring phone sales to Westcon. Westcon provided 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 were recorded as the Company was the agent for these sales. The Company completed its transition of direct phone sales to Westcon during the three months ended June 30, 2016, which excluded carriers’ phone sales. The Company did not 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 were not part of the sales agency agreement with Westcon. The Company recognizes revenue and costs from these sales as the Company is the primary obligor and has latitude in determining pricing. In December 2016, the Company terminated the Westcon sales agency agreement and entered into a reseller (direct sale) agreement with Westcon. Effective January 1, 2017, the Company switched from the agency model to the direct sale model whereby the Company will no longer serve as an agent for referring phone sales to Westcon and will no longer receive commissions for its services. Under the reseller agreement, the Company will purchase phones directly from Westcon for resale to its customers and will recognize revenues and costs for phone sales based on the following criteria: • The Company is the primary obligor in the arrangement and customer contracts for sales of phones are entered into with the Company; • The Company has latitude in determining pricing with customers; • The Company assumes the general inventory risk; and • The Company has collection risk for phones sold to customers.

Other Revenue and Cost of Reven

Other Revenue and Cost of Revenue	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Other Revenue and Cost of Revenue	Note 3. Other Revenue and Cost of Revenue For the three months ended March 31, 2017 and 2016, the majority of other revenues consisted of product revenues from sales of phones. Product revenues were $6.1 million and $4.6 million for the three months ended March 31, 2017 and 2016, respectively. Product cost of revenues were $5.9 million and $4.5 million for the three months ended March 31, 2017 and 2016, respectively.

Financial Statement Components

Financial Statement Components	3 Months Ended
	Mar. 31, 2017
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): March 31, December 31, 2017 2016 Cash $ 40,104 $ 40,908 Money market funds 109,586 119,447 Total cash and cash equivalents $ 149,690 $ 160,355 Accounts receivable, net consisted of the following (in thousands): March 31, December 31, 2017 2016 Accounts receivable $ 25,928 $ 25,687 Unbilled accounts receivable 5,968 4,990 Allowance for doubtful accounts (571 ) (434 ) Accounts receivable, net $ 31,325 $ 30,243 Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, 2017 2016 Prepaid expenses $ 12,753 $ 9,780 Inventory 170 63 Other current assets 4,428 5,470 Total prepaid expenses and other current assets $ 17,351 $ 15,313 Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2017 2016 Computer hardware and software $ 63,325 $ 61,546 Internal-use software development costs 11,888 9,931 Furniture and fixtures 5,099 4,508 Leasehold improvements 3,674 2,596 Total property and equipment 83,986 78,581 Less: accumulated depreciation and amortization (49,825 ) (46,587 ) Property and equipment, net $ 34,161 $ 31,994 Accrued liabilities consisted of the following (in thousands): March 31, December 31, 2017 2016 Accrued compensation and benefits $ 15,837 $ 14,041 Accrued sales, use and telecom related taxes 9,444 7,220 Accrued marketing 6,045 5,082 Other accrued expenses 20,564 21,979 Total accrued liabilities $ 51,890 $ 48,322

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 109,586 $ 109,586 $ — $ — Other assets: Certificates of deposit $ 530 $ — $ 530 $ — Balance at December 31, 2016 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 119,447 $ 119,447 $ — $ — Other assets: Certificates of deposit $ 530 $ — $ 530 $ — The On February 10, 2017, the Company paid off its debt in full, which was held by Silicon Valley Bank. At December 31, 2016, 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 $14.9 million at December 31, 2016, compared to its carrying amount of $14.8 million at that date. If the debt was measured at fair value in th

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Business Combinations	Note 6. Business Combinations In June 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 the acquisition, net of cash acquired, which also included the fair value of contingent consideration payable upon achievement of certain earn out milestones and the fair value of common stock issuable to the sellers, 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 sellers. 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 year ended December 31, 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 three months ended March 31, 2017 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 March 31, 2017 and December 31, 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 March 31, 2017 and December 31, 2016, the contingent payment liability was $1.4 million, respectively, and is classified as a current liability in the condensed consolidated balance sheets as settlement will occur in 2017. The carrying values of intangible assets are as follows (in thousands): March 31, 2017 December 31, 2016 Estimated Lives Cost Accumulated Amortization Acquired Intangibles, Net Accumulated Amortization Acquired Intangibles, Net Customer relationships 2 years $ 840 $ 765 $ 75 $ 660 $ 180 Developed technology 5 years 3,010 1,096 1,914 946 2,064 Total acquired intangible assets $ 3,850 $ 1,861 $ 1,989 $ 1,606 $ 2,244 Amortization expense from acquired intangible assets for the three months ended March 31, 2017 and 2016 was $0.3 million in both periods. 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 March 31, 2017, the weighted average amortization periods for customer relationships and developed technology approximate 0.2 years and 3.2 years, respectively. Estimated amortization expense for acquired intangible assets for the following five fiscal years and thereafter is as follows (in thousands): 2017 (remaining) 527 2018 602 2019 602 2020 258 Total estimated amortization expense $ 1,989

Debt

Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt	Note 7. Debt As of December 31, 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). On February 10, 2017, the Company paid off its 2013 Term Loan and revolving line of credit balances of $14.8 million to SVB. Upon repayment, the SVB Agreement was terminated. The 2013 Term Loan was borrowed on December 31, 2013 with a principal amount of $15.0 million, which was being repaid in 48 equal monthly installments of principal, plus accrued and unpaid interest. Interest was due monthly and accrued 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 was 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%, which resulted in an interest rate of 4.00% at December 31, 2016, based on the prime rate option and cash balance maintained with SVB. As of December 31, 2016, the outstanding principal balance of the 2013 Term Loan was $4.0 million, of which $0.3 million was payable subsequent to December 31, 2017 and was classified as a non-current liability in the accompanying condensed consolidated balance sheet. The revolving line of credit provided 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 did not limit the amount of borrowings available under the line of credit. Under the line of credit, interest was paid monthly and accrued 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 was 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 3.00% to 3.25%, resulting in an interest rate of 3.75% at December 31, 2016, based on the prime rate option and cash balance maintained with SVB. As of December 31, 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 was classified as a current liability in the condensed consolidated balance sheet as the principal balance was due in August 2017. The Company had pledged substantially all of its assets, excluding intellectual property, as collateral to secure its obligations under the SVB Agreement. The SVB Agreement contained customary negative covenants that limited 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 contained customary affirmative covenants, as well as financial covenants that required the Company to (i) maintain minimum cash balances of $10.0 million, as defined in the SVB Agreement, and (ii) maintain minimum EBITDA levels, as determined in accordance with the SVB Agreement. In March 2016, the Company adjusted certain financial covenants thresholds 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 December 31, 2016. With the repayment of the debt, the lien on the assets has been removed.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 and December 31, 2016, the Company had a long-term sales tax liability of $3.1 million at both period ends, 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 $5.8 million and $6.0 million as of March 31, 2017 and December 31, 2016, respectively, which is included in accrued liabilities in the condensed consolidated balance sheets. 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 seeks 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). The Petition remains pending. 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. On November 21, 2016, the Company filed a motion to dismiss the amended complaint, along with a renewed motion to dismiss or stay the case pending resolution of the FCC Petition. The motions to dismiss and to stay the Lawsuit are fully briefed and under submission to the Court. Discovery has not yet commenced. The Company intends to vigorously defend itself in the Lawsuit. 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 consolidated financial statements, it is not possible to provide an estimated amount of any such loss or range of loss that may occur. Patent Infringement Matter On April 25, 2017, Uniloc USA, Inc. and Uniloc Luxembourg, S.A. filed in the U.S. District Court for the Eastern District of Texas two actions against the Company alleging infringement of U.S. Patent Nos. 7,804,948; 7,853,000; and 8,571,194 by RingCentral’s Glip unified communications application. The Company has not yet been served with the lawsuits. The plaintiffs seek a declaration that the Company has infringed the patents, damages according to proof, injunctive relief, as well as their costs, attorney’s fees, expenses and interest. This litigation is still in its earliest stages and the Company is unable to estimate any reasonably possible loss, or range of loss, with respect to this matter. The Company intends to vigorously defend against this lawsuit.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 2016 Cost of revenues $ 757 $ 653 Research and development 1,859 1,638 Sales and marketing 3,525 2,190 General and administrative 2,794 2,256 Total share-based compensation expense $ 8,935 $ 6,737 A summary of share-based compensation expense by award type is as follows (in thousands): Three Months Ended March 31, 2017 2016 Options $ 2,190 $ 2,547 Employee stock purchase plan rights 461 550 Restricted stock units 6,284 3,640 Total share-based compensation expense $ 8,935 $ 6,737 Equity Incentive Plans As of March 31, 2017, a total of 7,557,532 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 March 31, 2017 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, 2016 7,384 $ 10.59 5.3 $ 74,065 Granted 23 23.39 Exercised (317 ) 8.44 Canceled/Forfeited (28 ) 17.54 Outstanding at March 31, 2017 7,062 $ 10.70 5.0 $ 124,328 Vested and expected to vest as of March 31, 2017 6,825 $ 10.50 5.0 $ 121,468 Exercisable as of March 31, 2017 5,367 $ 9.06 5.0 $ 103,276 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, 2017 2016 Weighted average grant date fair value per share $ 8.87 $ 6.53 Total intrinsic value of options exercised $ 5,448 $ 1,463 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 March 31, 2017 2016 Expected term for employees (in years) 4.4 4.7 Expected term for non-employees (in years) 5.2 6.2 Risk-free interest rate 1.8 % 1.1 % Expected volatility 44 % 47 % Expected dividend yield 0 % 0 % As of March 31, 2017, there was approximately $9.3 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 1.9 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 March 31, 2017, 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 March 31, 2017, a total of 2,291,580 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 over four years. A summary of activity of RSUs under the 2013 Plan at March 31, 2017 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, 2016 3,554 $ 18.01 $ 73,261 Granted 1,326 23.67 Released (301 ) 17.01 Canceled/Forfeited (175 ) 18.80 Outstanding at March 31, 2017 4,404 $ 19.75 $ 124,646 As of March 31, 2017, there was a total of $62.8 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	3 Months Ended
	Mar. 31, 2017
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 months ended March 31, 2017 and 2016. Generally, 75% of the Company’s total billings are collected through credit card payments, resulting in a minimal accounts receivable balance. The Company’s accounts receivable balance of $31.3 million as of March 31, 2017, 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 March 31, 2017 and December 31, 2016, one of the Company’s carriers accounted for 28% and 30% 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 March 31, 2017 and December 31, 2016, more than 87% 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	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Note 11. Income Taxes The provision for income taxes for the three 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, 2017 and December 31, 2016. 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 months ended March 31, 2017, 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	3 Months Ended
	Mar. 31, 2017
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, and ESPP to the extent they are dilutive. For the three months ended March 31, 2017 and 2016, 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, 2017 2016 Numerator Net loss $ (7,309 ) $ (6,613 ) Denominator Weighted-average common shares for basic and diluted net loss per share 74,682 72,114 Basic and diluted net loss per share $ (0.10 ) $ (0.09 ) The following table summarizes the potentially dilutive common shares that were excluded from diluted weighted-average common shares outstanding because including them would have had an anti-dilutive effect (in thousands): Three Months Ended March 31, 2017 2016 Shares of common stock issuable under equity incentive awards outstanding 11,581 11,379 Potential common shares excluded from diluted net loss per share 11,581 11,379

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Note 13. Related Party Transactions In the ordinary course of business, the Company made purchases from Google Inc. at which one of the Company’s directors serves as President, Americas. Total payables to Google Inc. at March 31, 2017 and December 31, 2016 were $1.6 million and $1.0 million, respectively. Total expenses incurred from Google Inc. were $4.0 million and $2.9 million in the three months ended March 31, 2017 and 2016, respectively.

Description of Business and S19

Description of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
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, 2017. 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, 2016.
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, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The significant estimates made by management affect revenues, the allowance for doubtful accounts, goodwill, share-based compensation, capitalization of internally developed software, return reserves, provision for income taxes, uncertain tax positions, loss contingencies, sales tax liabilities, and accrued liabilities. Management periodically evaluates these estimates and will make adjustments prospectively based upon the results of such periodic evaluations. Actual results could differ from these estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), The Company is currently evaluating the potential changes from adopting the new standard on its financial statements and disclosures. The Company is in the process of implementing appropriate changes to its business processes, systems and controls to support revenue recognition and disclosures under the new standard. Based on this evaluation, the Company will adopt the requirements of the new standard in the first quarter of 2018 and anticipates using the modified retrospective transition method. Additionally, as the Company continues to assess the new standard along with industry trends and internal progress, the Company may adjust its implementation plan and methodology to use the full retrospective method accordingly. Under the new standard, the Company expects in some cases to recognize revenue earlier for subscription plans with free periods and products sold at discounts. The impact of adopting the new standard on the Company’s total revenues is not expected to be material. The Company anticipates the most significant impact of adopting the new standard primarily relates to the deferral of sales commissions due to capitalization of certain sales commissions, which previously were expensed as incurred and to the incremental disclosure requirements. Under the new standard, certain commissions will be capitalized and amortized over the expected period of benefit. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) 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 In November 2016, the FASB issued ASU 2016-18, Restricted Cash In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718)
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)	3 Months Ended
	Mar. 31, 2017
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, 2017 2016 Cash $ 40,104 $ 40,908 Money market funds 109,586 119,447 Total cash and cash equivalents $ 149,690 $ 160,355
Components of Accounts Receivable, Net	Accounts receivable, net consisted of the following (in thousands): March 31, December 31, 2017 2016 Accounts receivable $ 25,928 $ 25,687 Unbilled accounts receivable 5,968 4,990 Allowance for doubtful accounts (571 ) (434 ) Accounts receivable, net $ 31,325 $ 30,243
Components of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, 2017 2016 Prepaid expenses $ 12,753 $ 9,780 Inventory 170 63 Other current assets 4,428 5,470 Total prepaid expenses and other current assets $ 17,351 $ 15,313
Components of Property and Equipment, Net	Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2017 2016 Computer hardware and software $ 63,325 $ 61,546 Internal-use software development costs 11,888 9,931 Furniture and fixtures 5,099 4,508 Leasehold improvements 3,674 2,596 Total property and equipment 83,986 78,581 Less: accumulated depreciation and amortization (49,825 ) (46,587 ) Property and equipment, net $ 34,161 $ 31,994
Components of Accrued Liabilities	Accrued liabilities consisted of the following (in thousands): March 31, December 31, 2017 2016 Accrued compensation and benefits $ 15,837 $ 14,041 Accrued sales, use and telecom related taxes 9,444 7,220 Accrued marketing 6,045 5,082 Other accrued expenses 20,564 21,979 Total accrued liabilities $ 51,890 $ 48,322

Fair Value of Financial Instr21

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 109,586 $ 109,586 $ — $ — Other assets: Certificates of deposit $ 530 $ — $ 530 $ —

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Mar. 31, 2017
Summary of Carrying Values of Intangible Assets	The carrying values of intangible assets are as follows (in thousands): March 31, 2017 December 31, 2016 Estimated Lives Cost Accumulated Amortization Acquired Intangibles, Net Accumulated Amortization Acquired Intangibles, Net Customer relationships 2 years $ 840 $ 765 $ 75 $ 660 $ 180 Developed technology 5 years 3,010 1,096 1,914 946 2,064 Total acquired intangible assets $ 3,850 $ 1,861 $ 1,989 $ 1,606 $ 2,244
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): 2017 (remaining) 527 2018 602 2019 602 2020 258 Total estimated amortization expense $ 1,989

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 2016 Cost of revenues $ 757 $ 653 Research and development 1,859 1,638 Sales and marketing 3,525 2,190 General and administrative 2,794 2,256 Total share-based compensation expense $ 8,935 $ 6,737
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 March 31, 2017 2016 Options $ 2,190 $ 2,547 Employee stock purchase plan rights 461 550 Restricted stock units 6,284 3,640 Total share-based compensation expense $ 8,935 $ 6,737
Summary of Stock Option Activity Plans	A summary of option activity under all of the Company’s equity incentive plans at March 31, 2017 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, 2016 7,384 $ 10.59 5.3 $ 74,065 Granted 23 23.39 Exercised (317 ) 8.44 Canceled/Forfeited (28 ) 17.54 Outstanding at March 31, 2017 7,062 $ 10.70 5.0 $ 124,328 Vested and expected to vest as of March 31, 2017 6,825 $ 10.50 5.0 $ 121,468 Exercisable as of March 31, 2017 5,367 $ 9.06 5.0 $ 103,276
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, 2017 2016 Weighted average grant date fair value per share $ 8.87 $ 6.53 Total intrinsic value of options exercised $ 5,448 $ 1,463
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 March 31, 2017 2016 Expected term for employees (in years) 4.4 4.7 Expected term for non-employees (in years) 5.2 6.2 Risk-free interest rate 1.8 % 1.1 % Expected volatility 44 % 47 % Expected dividend yield 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 over four years. A summary of activity of RSUs under the 2013 Plan at March 31, 2017 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, 2016 3,554 $ 18.01 $ 73,261 Granted 1,326 23.67 Released (301 ) 17.01 Canceled/Forfeited (175 ) 18.80 Outstanding at March 31, 2017 4,404 $ 19.75 $ 124,646

Basic and Diluted Net Loss Pe24

Basic and Diluted Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
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, 2017 2016 Numerator Net loss $ (7,309 ) $ (6,613 ) Denominator Weighted-average common shares for basic and diluted net loss per share 74,682 72,114 Basic and diluted net loss per share $ (0.10 ) $ (0.09 )
Potential Shares of Common Stock Excluded from Diluted Weighted-Average Common Shares Outstanding	The following table summarizes the potentially dilutive common shares that were excluded from diluted weighted-average common shares outstanding because including them would have had an anti-dilutive effect (in thousands): Three Months Ended March 31, 2017 2016 Shares of common stock issuable under equity incentive awards outstanding 11,581 11,379 Potential common shares excluded from diluted net loss per share 11,581 11,379

Other Revenue and Cost of Rev25

Other Revenue and Cost of Revenue - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Product revenues	$ 6.1	$ 4.6
Product cost of revenues	$ 5.9	$ 4.5

Financial Statement Component26

Financial Statement Components - Components of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Cash And Cash Equivalents [Abstract]
Cash	$ 40,104	$ 40,908
Money market funds	109,586	119,447
Total cash and cash equivalents	$ 149,690	$ 160,355	$ 139,074	$ 137,588

Financial Statement Component27

Financial Statement Components - Components of Accounts Receivable, Net (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Accounts receivable	$ 25,928	$ 25,687
Unbilled accounts receivable	5,968	4,990
Allowance for doubtful accounts	(571)	(434)
Accounts receivable, net	$ 31,325	$ 30,243

Financial Statement Component28

Financial Statement Components - Components of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Prepaid Expense And Other Assets Current [Abstract]
Prepaid expenses	$ 12,753	$ 9,780
Inventory	170	63
Other current assets	4,428	5,470
Total prepaid expenses and other current assets	$ 17,351	$ 15,313

Financial Statement Component29

Financial Statement Components - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property Plant And Equipment [Line Items]
Total property and equipment	$ 83,986	$ 78,581
Less: accumulated depreciation and amortization	(49,825)	(46,587)
Property and equipment, net	34,161	31,994
Computer hardware and software
Property Plant And Equipment [Line Items]
Total property and equipment	63,325	61,546
Internal-use software development costs
Property Plant And Equipment [Line Items]
Total property and equipment	11,888	9,931
Furniture and fixtures
Property Plant And Equipment [Line Items]
Total property and equipment	5,099	4,508
Leasehold improvements
Property Plant And Equipment [Line Items]
Total property and equipment	$ 3,674	$ 2,596

Financial Statement Component30

Financial Statement Components - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables And Accruals [Abstract]
Accrued compensation and benefits	$ 15,837	$ 14,041
Accrued sales, use and telecom related taxes	9,444	7,220
Accrued marketing	6,045	5,082
Other accrued expenses	20,564	21,979
Total accrued liabilities	$ 51,890	$ 48,322

Fair Value of Financial Instr31

Fair Value of Financial Instruments - Financial Assets Carried at Fair Value (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Money market funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds	$ 109,586	$ 119,447
Money market funds | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds	109,586	119,447
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 Instr32

Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions	Dec. 31, 2016USD ($)
Fair Value Disclosures [Abstract]
Fair value of debt obligation	$ 14.9
Carrying value of debt obligation	$ 14.8

Business Combinations - Additio

Business Combinations - Additional Information (Detail) - Glip, Inc. - USD ($)	1 Months Ended		3 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
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
Business combination earn out period of contingent consideration			2 years
Business combination, contingent payment liability			$ 1,400,000		$ 1,400,000
Amortization expense of Intangible Assets			$ 300,000	$ 300,000
Customer Relationships
Business Acquisition [Line Items]
Weighted average amortization periods			2 months 12 days
Developed Technology
Business Acquisition [Line Items]
Weighted average amortization periods			3 years 2 months 12 days
Class A common stock
Business Acquisition [Line Items]
Business combination, consideration common stock issued					45,893
Asset purchase agreement
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

Business Combinations - Summary

Business Combinations - Summary of Carrying Values of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Acquired Intangibles, Net	$ 1,989	$ 2,244
Glip, Inc.
Business Acquisition [Line Items]
Cost	3,850	3,850
Accumulated Amortization	1,861	1,606
Acquired Intangibles, Net	$ 1,989	$ 2,244
Glip, Inc. | Customer Relationships
Business Acquisition [Line Items]
Estimated Lives	2 years	2 years
Cost	$ 840	$ 840
Accumulated Amortization	765	660
Acquired Intangibles, Net	$ 75	$ 180
Glip, Inc. | Developed Technology
Business Acquisition [Line Items]
Estimated Lives	5 years	5 years
Cost	$ 3,010	$ 3,010
Accumulated Amortization	1,096	946
Acquired Intangibles, Net	$ 1,914	$ 2,064

Business Combinations - Summa35

Business Combinations - Summary of Estimated Amortization Expense for Acquired Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Acquired Indefinite Lived Intangible Assets [Line Items]
Acquired Intangibles, Net	$ 1,989	$ 2,244
Glip, Inc.
Acquired Indefinite Lived Intangible Assets [Line Items]
2017 (remaining)	527
2,018	602
2,019	602
2,020	258
Acquired Intangibles, Net	$ 1,989	$ 2,244

Debt - Additional Information (

Debt - Additional Information (Detail)	Feb. 10, 2017USD ($)	Apr. 30, 2016	Dec. 31, 2013USD ($)Installment	May 31, 2016	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Term loan and revolving line of credit paid					$ 14,840,000	$ 938,000
Long-term debt							$ 312,000
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							3.75%
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 | Revolving Credit Facility | Required Cash Balances Maintained With Silicon Valley Bank | Prime Rate
Debt Instrument [Line Items]
Percentage of margin		0.25%		0.00%
SVB Agreement | Revolving Credit Facility | Required Cash Balances Maintained With Silicon Valley Bank | LIBOR Rate
Debt Instrument [Line Items]
Percentage of margin		3.25%		3.00%
SVB Agreement | Revolving Credit Facility | Required Cash Balances Not Maintained With Silicon Valley Bank | Prime Rate
Debt Instrument [Line Items]
Percentage of margin		0.50%		0.25%
SVB Agreement | Revolving Credit Facility | Required Cash Balances Not Maintained With Silicon Valley Bank | LIBOR Rate
Debt Instrument [Line Items]
Percentage of margin		3.50%		3.25%
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							4.00%
Outstanding balance of term loan							$ 4,000,000
Long-term debt							$ 300,000
Debt instrument, maturity, description					payable subsequent to December 31, 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%		0.25%
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%		3.25%
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%		0.50%
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%		3.50%
SVB Agreement | 2013 Capital Growth Term Loan | Revolving Credit Facility
Debt Instrument [Line Items]
Term loan and revolving line of credit paid	$ 14,800,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Long-term sales tax liability	$ 3,077	$ 3,077
Current sales tax liability for non-contingent amounts	$ 5,800	$ 6,000

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
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 8,935	$ 6,737
Cost of Revenues
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	757	653
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	1,859	1,638
Sales and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	3,525	2,190
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 2,794	$ 2,256

Share-Based Compensation - Su39

Share-Based Compensation - Summary of Share-Based Compensation Expense by Award Type (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	$ 8,935	$ 6,737
Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	2,190	2,547
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	6,284	3,640
Employee Stock Purchase Plan Rights
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	$ 461	$ 550

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)shares
2013 Employee stock purchase plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Available for future grants | shares	2,291,580
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 | $	$ 9.3
Unrecognized share-based compensation expense, remaining weighted-average vesting periods	1 year 10 months 24 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 | $	$ 62.8
2013 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Available for future grants | shares	7,557,532

Share-Based Compensation - Su41

Share-Based Compensation - Summary of Stock Option Activity Plans (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Number of Options Outstanding
Number of Options Outstanding, Beginning Balance	7,384
Number of Options Outstanding, Granted	23
Number of Options Outstanding, Exercised	(317)
Number of Options Outstanding, Canceled/Forfeited	(28)
Number of Options Outstanding, Ending Balance	7,062	7,384
Number of Options Outstanding, Vested and expected to vest	6,825
Number of Options Outstanding, Exercisable	5,367
Weighted-Average Exercise Price Per Share
Weighted-Average Exercise Price Per Share, Beginning Balance	$ 10.59
Weighted-Average Exercise Price Per Share, Granted	23.39
Weighted-Average Exercise Price Per Share, Exercised	8.44
Weighted-Average Exercise Price Per Share, Canceled/Forfeited	17.54
Weighted-Average Exercise Price Per Share, Ending Balance	10.70	$ 10.59
Weighted-Average Exercise Price Per Share, Vested and expected to vest	10.50
Weighted-Average Exercise Price Per Share, Exercisable	$ 9.06
Weighted-Average Contractual Term
Weighted-Average Contractual Term	5 years	5 years 3 months 18 days
Weighted-Average Contractual Term, Vested and expected to vest	5 years
Weighted-Average Contractual Term, Exercisable	5 years
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Outstanding	$ 124,328	$ 74,065
Aggregate Intrinsic Value, Vested and expected to vest	121,468
Aggregate Intrinsic Value, Exercisable	$ 103,276

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
	Mar. 31, 2017	Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Weighted average grant date fair value per share	$ 8.87	$ 6.53
Total intrinsic value of options exercised	$ 5,448	$ 1,463

Share-Based Compensation - We43

Share-Based Compensation - Weighted Average Assumptions Used to Fair Value of Stock Options Granted (Detail)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate	1.80%	1.10%
Expected volatility	44.00%	47.00%
Expected dividend yield	0.00%	0.00%
Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	4 years 4 months 24 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)	5 years 2 months 12 days	6 years 2 months 12 days

Share-Based Compensation - Su44

Share-Based Compensation - Summary of RSUs Activity (Detail) - Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of RSUs Outstanding, Beginning Balance	3,554
Number of RSUs Outstanding, Granted	1,326
Number of RSUs Outstanding, Released	(301)
Number of RSUs Outstanding, Canceled/Forfeited	(175)
Number of RSUs Outstanding, Ending Balance	4,404
Weighted-Average Grant Date Fair Value Per Share, Beginning Balance	$ 18.01
Weighted-Average Grant Date Fair Value Per Share, Granted	23.67
Weighted-Average Grant Date Fair Value Per Share, Released	17.01
Weighted-Average Grant Date Fair Value Per Share, Canceled/Forfeited	18.80
Weighted-Average Grant Date Fair Value Per Share, Ending Balance	$ 19.75
Aggregate Intrinsic Value, Outstanding	$ 124,646	$ 73,261

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)SegmentCountry	Mar. 31, 2016	Dec. 31, 2016USD ($)Country
Concentration Risk [Line Items]
Number of reporting segment | Segment	1
Percentage of total billings collected through credit cards, resulting in minimal accounts receivable balance	75.00%
Accounts receivable | $	$ 31,325		$ 30,243
Accounts Receivable | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk	28.00%		30.00%
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
Minimum | U.S. | Sales Revenue, Segment | Geographic Concentration Risk
Concentration Risk [Line Items]
Concentration risk	90.00%	90.00%
Minimum | U.S. | Long-lived Assets | Geographic Concentration Risk
Concentration Risk [Line Items]
Concentration risk	87.00%		87.00%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes	$ 51,000	$ 50,000
Unrecognized tax benefits	$ 0

Basic and Diluted Net Loss Pe47

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
	Mar. 31, 2017	Mar. 31, 2016
Numerator
Net loss	$ (7,309)	$ (6,613)
Denominator
Weighted-average common shares for basic and diluted net loss per share	74,682	72,114
Basic and diluted net loss per share	$ (0.10)	$ (0.09)

Basic and Diluted Net Loss Pe48

Basic and Diluted Net Loss Per Share - Potential Shares of Common Stock Excluded from Diluted Weighted-Average Common Shares Outstanding (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potential common shares excluded from diluted net loss per share	11,581	11,379
Equity Incentive Awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potential common shares excluded from diluted net loss per share	11,581	11,379

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - Google Inc. - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Total payables to related party	$ 1.6		$ 1
Total expenses incurred from related party	$ 4	$ 2.9