RingCentral (RNG) 10-Q 7 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 02, 2017
Document And Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
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		63,899,687
Class B common stock
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		12,733,998

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 167,015	$ 160,355
Accounts receivable, net	33,264	30,243
Prepaid expenses and other current assets	17,936	15,313
Total current assets	218,215	205,911
Property and equipment, net	36,613	31,994
Goodwill	9,393	9,393
Acquired intangibles, net	1,763	2,244
Other assets	2,633	3,087
Total assets	268,617	252,629
Current liabilities
Accounts payable	5,556	7,810
Accrued liabilities	49,720	48,322
Current portion of capital lease obligation		181
Current portion of long-term debt		14,528
Deferred revenue	53,367	45,159
Total current liabilities	108,643	116,000
Long-term debt		312
Sales tax liability	3,077	3,077
Other long-term liabilities	3,175	3,199
Total liabilities	114,895	122,588
Commitments and contingencies (Note 8)
Stockholders' equity
Common stock	8	7
Additional paid-in capital	404,742	366,800
Accumulated other comprehensive income	2,815	2,737
Accumulated deficit	(253,843)	(239,503)
Total stockholders' equity	153,722	130,041
Total liabilities and stockholders' equity	$ 268,617	$ 252,629

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues
Software subscriptions	$ 110,413,000	$ 86,067,000	$ 214,100,000	$ 166,045,000
Other	9,023,000	5,777,000	17,127,000	12,337,000
Total revenues	119,436,000	91,844,000	231,227,000	178,382,000
Cost of revenues
Software subscriptions	21,795,000	18,173,000	42,058,000	34,896,000
Other	7,766,000	4,191,000	14,809,000	9,208,000
Total cost of revenues	29,561,000	22,364,000	56,867,000	44,104,000
Gross profit	89,875,000	69,480,000	174,360,000	134,278,000
Operating expenses
Research and development	18,617,000	16,681,000	35,704,000	31,607,000
Sales and marketing	60,794,000	45,662,000	119,688,000	87,490,000
General and administrative	18,007,000	13,441,000	33,812,000	27,465,000
Total operating expenses	97,418,000	75,784,000	189,204,000	146,562,000
Loss from operations	(7,543,000)	(6,304,000)	(14,844,000)	(12,284,000)
Other income (expense), net
Interest expense	(9,000)	(193,000)	(88,000)	(409,000)
Other income (expense), net	578,000	(1,217,000)	700,000	(1,584,000)
Other income (expense), net	569,000	(1,410,000)	612,000	(1,993,000)
Loss before income taxes	(6,974,000)	(7,714,000)	(14,232,000)	(14,277,000)
Provision for income taxes	57,000	57,000	108,000	107,000
Net loss	$ (7,031,000)	$ (7,771,000)	$ (14,340,000)	$ (14,384,000)
Net loss per common share
Basic and diluted	$ (0.09)	$ (0.11)	$ (0.19)	$ (0.20)
Weighted-average number of shares used in computing net loss per share
Basic and diluted	75,867	72,649	75,278	72,380

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (7,031)	$ (7,771)	$ (14,340)	$ (14,384)
Other comprehensive loss
Foreign currency translation adjustments	47	1,134	78	1,676
Comprehensive loss	$ (6,984)	$ (6,637)	$ (14,262)	$ (12,708)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net loss	$ (14,340)	$ (14,384)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	7,842	6,953
Share-based compensation	19,562	14,214
Foreign currency remeasurement (gain) loss	(463)	1,708
Provision for bad debt	1,003	388
Deferred income taxes	(12)	(4)
Other	113	113
Changes in assets and liabilities:
Accounts receivable	(4,024)	(5,395)
Prepaid expenses and other current assets	(2,623)	(452)
Other assets	501	131
Accounts payable	(1,427)	(3,911)
Accrued liabilities	3,136	11,492
Deferred revenue	8,208	5,448
Other liabilities	(24)	(1,620)
Net cash provided by operating activities	17,452	14,681
Cash flows from investing activities
Purchases of property and equipment	(8,814)	(6,056)
Capitalized internal-use software	(3,488)	(961)
Restricted investments	530
Net cash used in investing activities	(11,772)	(7,017)
Cash flows from financing activities
Proceeds from issuance of stock in connection with stock plans	17,449	6,168
Payment of holdback from Glip acquisition		(1,500)
Taxes paid related to net share settlement of equity awards	(1,118)
Repayment of debt	(14,840)	(1,875)
Repayment of capital lease obligations	(181)	(177)
Net cash provided by financing activities	1,310	2,616
Effect of exchange rate changes on cash and cash equivalents	(330)	(77)
Net increase in cash and cash equivalents	6,660	10,203
Cash and cash equivalents
Beginning of period	160,355	137,588
End of period	167,015	147,791
Supplemental disclosure of cash flow data
Cash paid for interest	116	407
Cash paid for income taxes	188	168
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	1,175	$ 1,212
Glip, Inc.
Non-cash investing and financing activities
Issuance of common stock for business combination	$ 1,760

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 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 continues to evaluate 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 May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting Compensation-Stock Compensation 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	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2017 and 2016, the majority of other revenues consisted of product revenues from sales of phones. Product revenues were $6.1 million and $3.2 million for the three months ended June 30, 2017 and 2016, respectively, and $12.2 million and $7.8 million for the six months ended June 30, 2017 and 2016. Product cost of revenues were $6.1 million and $3.7 million for the three months ended June 30, 2017 and 2016, respectively, and $12.0 million and $8.2 million for the six months ended June 30, 2017 and 2016, respectively.

Financial Statement Components

Financial Statement Components	6 Months Ended
	Jun. 30, 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): June 30, December 31, 2017 2016 Cash $ 57,237 $ 40,908 Money market funds 109,778 119,447 Total cash and cash equivalents $ 167,015 $ 160,355 Accounts receivable, net consisted of the following (in thousands): June 30, December 31, 2017 2016 Accounts receivable $ 29,625 $ 25,687 Unbilled accounts receivable 4,159 4,990 Allowance for doubtful accounts (520 ) (434 ) Accounts receivable, net $ 33,264 $ 30,243 Prepaid expenses and other current assets consisted of the following (in thousands): June 30, December 31, 2017 2016 Prepaid expenses $ 12,554 $ 9,780 Inventory 124 63 Other current assets 5,258 5,470 Total prepaid expenses and other current assets $ 17,936 $ 15,313 Property and equipment, net consisted of the following (in thousands): June 30, December 31, 2017 2016 Computer hardware and software $ 66,536 $ 61,546 Internal-use software development costs 13,929 9,931 Furniture and fixtures 5,504 4,508 Leasehold improvements 4,138 2,596 Total property and equipment 90,107 78,581 Less: accumulated depreciation and amortization (53,494 ) (46,587 ) Property and equipment, net $ 36,613 $ 31,994 Accrued liabilities consisted of the following (in thousands): June 30, December 31, 2017 2016 Accrued compensation and benefits $ 14,724 $ 14,041 Accrued sales, use and telecom related taxes 7,897 7,220 Accrued marketing 4,994 5,082 Other accrued expenses 22,105 21,979 Total accrued liabilities $ 49,720 $ 48,322 The carrying values of intangible assets are as follows (in thousands): June 30, 2017 December 31, 2016 Estimated Lives Cost Accumulated Amortization Acquired Intangibles, Net Accumulated Amortization Acquired Intangibles, Net Customer relationships 2 years $ 840 $ 840 — $ 660 $ 180 Developed technology 5 years 3,010 1,247 1,763 946 2,064 Total acquired intangible assets $ 3,850 $ 2,087 $ 1,763 $ 1,606 $ 2,244 Amortization expense from acquired intangible assets for the three months ended June 30, 2017 and 2016 was $0.2 million and $0.3 million, respectively. Amortization expense from acquired intangible assets was $0.5 million for both the six months ended June 30, 2017 and 2016. 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 June 30, 2017, the weighted average amortization period for developed technology was approximately 2.9 years. Estimated amortization expense for acquired intangible assets for the following five fiscal years and thereafter is as follows (in thousands): 2017 (remaining) 301 2018 602 2019 602 2020 258 Total estimated amortization expense $ 1,763

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 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 June 30, 2017 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 109,778 $ 109,778 $ — $ — 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 was based on observable market inputs using interest rates 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	6 Months Ended
	Jun. 30, 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 six months ended June 30, 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 June 30, 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. The Company paid the bonus in full during the three months ended June 30, 2017. At December 31, 2016, the contingent payment liability was $1.4 million and was classified as a current liability in the condensed consolidated balance sheet.

Debt

Debt	6 Months Ended
	Jun. 30, 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 Company had pledged substantially all of its assets, excluding intellectual property, as collateral to secure its obligations under the SVB Agreement. With the repayment of the debt, the lien on the assets has been removed.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 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. 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 June 30, 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 $7.0 million and $6.0 million as of June 30, 2017 and December 31, 2016, respectively, which is included in accrued liabilities in the condensed consolidated balance sheets. Legal Matters From time to time, the Company may be involved in a variety of claims, lawsuits, investigations, and proceedings relating to contractual disputes, intellectual property rights, employment matters, regulatory compliance matters, and other litigation matters relating to various claims that arise in the normal course of business. 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. The results of complex legal proceedings are difficult to predict and the Company's view of these matters may change in the future as the litigation and events related thereto unfold. 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, 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. Plaintiff filed its amended complaint on October 27, 2016, alleging essentially 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. On July 17, 2017, the Court granted the Company’s motion to dismiss with prejudice and concurrently dismissed the Company’s motion to dismiss or stay as moot. SPS filed a notice of appeal to the Ninth Circuit Court of Appeals on July 28, 2017. SPS’s opening brief on appeal must be filed by November 6, 2017, the Company’s opposition brief must be filed by December 5, 2017, and SPS’s optional reply brief must be filed within 21 days of the Company’s opposition brief. It is too early 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. 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 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. 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. The Company intends to vigorously defend against this lawsuit.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 Cost of revenues $ 1,038 $ 812 $ 1,795 $ 1,465 Research and development 2,342 1,857 4,201 3,495 Sales and marketing 3,926 2,578 7,451 4,768 General and administrative 3,321 2,230 6,115 4,486 Total share-based compensation expense $ 10,627 $ 7,477 $ 19,562 $ 14,214 A summary of share-based compensation expense by award type is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Options $ 1,953 $ 2,437 $ 4,143 $ 4,984 Employee stock purchase plan rights 518 298 979 848 Restricted stock units 8,156 4,742 14,440 8,382 Total share-based compensation expense $ 10,627 $ 7,477 $ 19,562 $ 14,214 Equity Incentive Plans As of June 30, 2017, a total of 10,944,284 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 June 30, 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 25 23.99 Exercised (1,202 ) 11.44 Canceled/Forfeited (326 ) 16.16 Outstanding at June 30, 2017 5,881 $ 10.17 4.7 $ 155,271 Vested and expected to vest as of June 30, 2017 5,738 $ 10.00 4.6 $ 152,311 Exercisable as of June 30, 2017 4,768 $ 8.76 4.6 $ 132,495 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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 Weighted average grant date fair value per share $ 10.94 $ 7.81 $ 9.08 $ 6.54 Total intrinsic value of options exercised $ 17,815 $ 2,932 $ 23,263 $ 4,395 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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 Expected term for employees (in years) 4.4 4.7 4.4 4.7 Expected term for non-employees (in years) 5.0 6.3 5.1 6.2 Risk-free interest rate 1.7 % 1.3 % 1.8 % 1.1 % Expected volatility 43.1 % 47.9 % 43.7 % 47.3 % Expected dividend yield 0 % 0 % 0 % 0 % As of June 30, 2017, there was approximately $6.1 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 1.8 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 June 30, 2017, there was a total of $0.7 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 0.4 years. At June 30, 2017, a total of 2,853,424 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 June 30, 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 2,162 25.89 Released (832 ) 19.02 Canceled/Forfeited (385 ) 19.82 Outstanding at June 30, 2017 4,499 $ 21.44 $ 164,455 As of June 30, 2017, there was a total of $71.5 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 2.9 years.

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2017 and 2016. Generally, 74% of the Company’s total billings are collected through credit card payments. The Company’s accounts receivable balance of $33.3 million as of June 30, 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 June 30, 2017 and December 31, 2016, one of the Company’s carriers accounted for 25% 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 June 30, 2017 and December 31, 2016, more than 86% and 87% of the Company’s consolidated long-lived assets, respectively, 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	6 Months Ended
	Jun. 30, 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 June 30, 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 and six months ended June 30, 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	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 Numerator Net loss $ (7,031 ) $ (7,771 ) $ (14,340 ) $ (14,384 ) Denominator Weighted-average common shares for basic and diluted net loss per share 75,867 72,649 75,278 72,380 Basic and diluted net loss per share $ (0.09 ) $ (0.11 ) $ (0.19 ) $ (0.20 ) 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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 Shares of common stock issuable under equity incentive awards outstanding 11,312 11,286 11,447 11,682 Potential common shares excluded from diluted net loss per share 11,312 11,286 11,447 11,682

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 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 June 30, 2017 and December 31, 2016 were $0.8 million and $1.0 million, respectively. Total expenses incurred from Google Inc. were $3.1 million in both the three months ended June 30, 2017 and 2016. Total expenses incurred from Google Inc. were $7.1 million and $6.0 million in the six months ended June 30, 2017 and 2016, respectively.

Description of Business and S19

Description of Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 continues to evaluate 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 May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting Compensation-Stock Compensation
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)	6 Months Ended
	Jun. 30, 2017
Statement Of Financial Position [Abstract]
Components of Cash and Cash Equivalents	Cash and cash equivalents consisted of the following (in thousands): June 30, December 31, 2017 2016 Cash $ 57,237 $ 40,908 Money market funds 109,778 119,447 Total cash and cash equivalents $ 167,015 $ 160,355
Components of Accounts Receivable, Net	Accounts receivable, net consisted of the following (in thousands): June 30, December 31, 2017 2016 Accounts receivable $ 29,625 $ 25,687 Unbilled accounts receivable 4,159 4,990 Allowance for doubtful accounts (520 ) (434 ) Accounts receivable, net $ 33,264 $ 30,243
Components of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): June 30, December 31, 2017 2016 Prepaid expenses $ 12,554 $ 9,780 Inventory 124 63 Other current assets 5,258 5,470 Total prepaid expenses and other current assets $ 17,936 $ 15,313
Components of Property and Equipment, Net	Property and equipment, net consisted of the following (in thousands): June 30, December 31, 2017 2016 Computer hardware and software $ 66,536 $ 61,546 Internal-use software development costs 13,929 9,931 Furniture and fixtures 5,504 4,508 Leasehold improvements 4,138 2,596 Total property and equipment 90,107 78,581 Less: accumulated depreciation and amortization (53,494 ) (46,587 ) Property and equipment, net $ 36,613 $ 31,994
Components of Accrued Liabilities	Accrued liabilities consisted of the following (in thousands): June 30, December 31, 2017 2016 Accrued compensation and benefits $ 14,724 $ 14,041 Accrued sales, use and telecom related taxes 7,897 7,220 Accrued marketing 4,994 5,082 Other accrued expenses 22,105 21,979 Total accrued liabilities $ 49,720 $ 48,322
Summary of Carrying Values of Intangible Assets	The carrying values of intangible assets are as follows (in thousands): June 30, 2017 December 31, 2016 Estimated Lives Cost Accumulated Amortization Acquired Intangibles, Net Accumulated Amortization Acquired Intangibles, Net Customer relationships 2 years $ 840 $ 840 — $ 660 $ 180 Developed technology 5 years 3,010 1,247 1,763 946 2,064 Total acquired intangible assets $ 3,850 $ 2,087 $ 1,763 $ 1,606 $ 2,244
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) 301 2018 602 2019 602 2020 258 Total estimated amortization expense $ 1,763

Fair Value of Financial Instr21

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2017 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 109,778 $ 109,778 $ — $ — 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 $ —

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 Cost of revenues $ 1,038 $ 812 $ 1,795 $ 1,465 Research and development 2,342 1,857 4,201 3,495 Sales and marketing 3,926 2,578 7,451 4,768 General and administrative 3,321 2,230 6,115 4,486 Total share-based compensation expense $ 10,627 $ 7,477 $ 19,562 $ 14,214
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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 Options $ 1,953 $ 2,437 $ 4,143 $ 4,984 Employee stock purchase plan rights 518 298 979 848 Restricted stock units 8,156 4,742 14,440 8,382 Total share-based compensation expense $ 10,627 $ 7,477 $ 19,562 $ 14,214
Summary of Stock Option Activity Plans	A summary of option activity under all of the Company’s equity incentive plans at June 30, 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 25 23.99 Exercised (1,202 ) 11.44 Canceled/Forfeited (326 ) 16.16 Outstanding at June 30, 2017 5,881 $ 10.17 4.7 $ 155,271 Vested and expected to vest as of June 30, 2017 5,738 $ 10.00 4.6 $ 152,311 Exercisable as of June 30, 2017 4,768 $ 8.76 4.6 $ 132,495
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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 Weighted average grant date fair value per share $ 10.94 $ 7.81 $ 9.08 $ 6.54 Total intrinsic value of options exercised $ 17,815 $ 2,932 $ 23,263 $ 4,395
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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 Expected term for employees (in years) 4.4 4.7 4.4 4.7 Expected term for non-employees (in years) 5.0 6.3 5.1 6.2 Risk-free interest rate 1.7 % 1.3 % 1.8 % 1.1 % Expected volatility 43.1 % 47.9 % 43.7 % 47.3 % 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 over four years. A summary of activity of RSUs under the 2013 Plan at June 30, 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 2,162 25.89 Released (832 ) 19.02 Canceled/Forfeited (385 ) 19.82 Outstanding at June 30, 2017 4,499 $ 21.44 $ 164,455

Basic and Diluted Net Loss Pe23

Basic and Diluted Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 Numerator Net loss $ (7,031 ) $ (7,771 ) $ (14,340 ) $ (14,384 ) Denominator Weighted-average common shares for basic and diluted net loss per share 75,867 72,649 75,278 72,380 Basic and diluted net loss per share $ (0.09 ) $ (0.11 ) $ (0.19 ) $ (0.20 )
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 Six Months Ended June 30, June 30, 2017 2016 2017 2016 Shares of common stock issuable under equity incentive awards outstanding 11,312 11,286 11,447 11,682 Potential common shares excluded from diluted net loss per share 11,312 11,286 11,447 11,682

Other Revenue and Cost of Rev24

Other Revenue and Cost of Revenue - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Product revenues	$ 6.1	$ 3.2	$ 12.2	$ 7.8
Product cost of revenues	$ 6.1	$ 3.7	$ 12	$ 8.2

Financial Statement Component25

Financial Statement Components - Components of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Cash And Cash Equivalents [Abstract]
Cash	$ 57,237	$ 40,908
Money market funds	109,778	119,447
Total cash and cash equivalents	$ 167,015	$ 160,355	$ 147,791	$ 137,588

Financial Statement Component26

Financial Statement Components - Components of Accounts Receivable, Net (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
Accounts receivable	$ 29,625	$ 25,687
Unbilled accounts receivable	4,159	4,990
Allowance for doubtful accounts	(520)	(434)
Accounts receivable, net	$ 33,264	$ 30,243

Financial Statement Component27

Financial Statement Components - Components of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Prepaid Expense And Other Assets Current [Abstract]
Prepaid expenses	$ 12,554	$ 9,780
Inventory	124	63
Other current assets	5,258	5,470
Total prepaid expenses and other current assets	$ 17,936	$ 15,313

Financial Statement Component28

Financial Statement Components - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Property Plant And Equipment [Line Items]
Total property and equipment	$ 90,107	$ 78,581
Less: accumulated depreciation and amortization	(53,494)	(46,587)
Property and equipment, net	36,613	31,994
Computer hardware and software
Property Plant And Equipment [Line Items]
Total property and equipment	66,536	61,546
Internal-use software development costs
Property Plant And Equipment [Line Items]
Total property and equipment	13,929	9,931
Furniture and fixtures
Property Plant And Equipment [Line Items]
Total property and equipment	5,504	4,508
Leasehold improvements
Property Plant And Equipment [Line Items]
Total property and equipment	$ 4,138	$ 2,596

Financial Statement Component29

Financial Statement Components - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Payables And Accruals [Abstract]
Accrued compensation and benefits	$ 14,724	$ 14,041
Accrued sales, use and telecom related taxes	7,897	7,220
Accrued marketing	4,994	5,082
Other accrued expenses	22,105	21,979
Total accrued liabilities	$ 49,720	$ 48,322

Financial Statement Component30

Financial Statement Components - Summary of Carrying Values of Intangible Assets (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Finite Lived Intangible Assets [Line Items]
Cost	$ 3,850	$ 3,850
Accumulated Amortization	2,087	1,606
Acquired Intangibles, Net	$ 1,763	$ 2,244
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Estimated Lives	2 years	2 years
Cost	$ 840	$ 840
Accumulated Amortization	$ 840	660
Acquired Intangibles, Net		$ 180
Developed Technology
Finite Lived Intangible Assets [Line Items]
Estimated Lives	5 years	5 years
Cost	$ 3,010	$ 3,010
Accumulated Amortization	1,247	946
Acquired Intangibles, Net	$ 1,763	$ 2,064

Financial Statement Component31

Financial Statement Components - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Finite Lived Intangible Assets [Line Items]
Amortization expense of Intangible Assets	$ 0.2	$ 0.3	$ 0.5	$ 0.5
Developed Technology
Finite Lived Intangible Assets [Line Items]
Weighted average amortization periods			2 years 10 months 24 days

Financial Statement Component32

Financial Statement Components - Summary of Estimated Amortization Expense for Acquired Intangible Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Finite Lived Intangible Assets Future Amortization Expense [Abstract]
2017 (remaining)	$ 301
2,018	602
2,019	602
2,020	258
Acquired Intangibles, Net	$ 1,763	$ 2,244

Fair Value of Financial Instr33

Fair Value of Financial Instruments - Financial Assets Carried at Fair Value (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Money market funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds	$ 109,778	$ 119,447
Money market funds | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds	$ 109,778	119,447
Certificates of deposit
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Certificates of deposit		530
Certificates of deposit | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Certificates of deposit		$ 530

Fair Value of Financial Instr34

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) - USD ($)	1 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
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
Business combination earn out period of contingent consideration			2 years
Business combination, contingent payment liability					$ 1,400,000
Glip, Inc. | Class A common stock
Business Acquisition [Line Items]
Business combination, consideration common stock issued					45,893
Glip, Inc. | 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

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($) $ in Thousands	Feb. 10, 2017	Jun. 30, 2017	Jun. 30, 2016
Debt Instrument [Line Items]
Term loan and revolving line of credit paid		$ 14,840	$ 1,875
SVB Agreement | 2013 Capital Growth Term Loan | Revolving Credit Facility
Debt Instrument [Line Items]
Term loan and revolving line of credit paid	$ 14,800

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 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	$ 7,000	$ 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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 10,627	$ 7,477	$ 19,562	$ 14,214
Cost of Revenues
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	1,038	812	1,795	1,465
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	2,342	1,857	4,201	3,495
Sales and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	3,926	2,578	7,451	4,768
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 3,321	$ 2,230	$ 6,115	$ 4,486

Share-Based Compensation - Su39

Share-Based Compensation - Summary of Share-Based Compensation Expense by Award Type (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	$ 10,627	$ 7,477	$ 19,562	$ 14,214
Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	1,953	2,437	4,143	4,984
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	8,156	4,742	14,440	8,382
Employee Stock Purchase Plan Rights
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	$ 518	$ 298	$ 979	$ 848

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2017USD ($)shares
2013 Employee stock purchase plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Available for future grants | shares	2,853,424
Unrecognized share-based compensation expense, remaining weighted-average vesting periods	4 months 24 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 | $	$ 0.7
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 | $	$ 6.1
Unrecognized share-based compensation expense, remaining weighted-average vesting periods	1 year 9 months 18 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	2 years 10 months 25 days
Unrecognized share-based compensation expense | $	$ 71.5
2013 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Available for future grants | shares	10,944,284

Share-Based Compensation - Su41

Share-Based Compensation - Summary of Stock Option Activity Plans (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Number of Options Outstanding
Number of Options Outstanding, Beginning Balance	7,384
Number of Options Outstanding, Granted	25
Number of Options Outstanding, Exercised	(1,202)
Number of Options Outstanding, Canceled/Forfeited	(326)
Number of Options Outstanding, Ending Balance	5,881	7,384
Number of Options Outstanding, Vested and expected to vest	5,738
Number of Options Outstanding, Exercisable	4,768
Weighted-Average Exercise Price Per Share
Weighted-Average Exercise Price Per Share, Beginning Balance	$ 10.59
Weighted-Average Exercise Price Per Share, Granted	23.99
Weighted-Average Exercise Price Per Share, Exercised	11.44
Weighted-Average Exercise Price Per Share, Canceled/Forfeited	16.16
Weighted-Average Exercise Price Per Share, Ending Balance	10.17	$ 10.59
Weighted-Average Exercise Price Per Share, Vested and expected to vest	10
Weighted-Average Exercise Price Per Share, Exercisable	$ 8.76
Weighted-Average Contractual Term
Weighted-Average Contractual Term	4 years 8 months 12 days	5 years 3 months 18 days
Weighted-Average Contractual Term, Vested and expected to vest	4 years 7 months 6 days
Weighted-Average Contractual Term, Exercisable	4 years 7 months 6 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Outstanding	$ 155,271	$ 74,065
Aggregate Intrinsic Value, Vested and expected to vest	152,311
Aggregate Intrinsic Value, Exercisable	$ 132,495

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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Weighted average grant date fair value per share	$ 10.94	$ 7.81	$ 9.08	$ 6.54
Total intrinsic value of options exercised	$ 17,815	$ 2,932	$ 23,263	$ 4,395

Share-Based Compensation - We43

Share-Based Compensation - Weighted Average Assumptions Used to Fair Value of Stock Options Granted (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate	1.70%	1.30%	1.80%	1.10%
Expected volatility	43.10%	47.90%	43.70%	47.30%
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 4 months 24 days	4 years 8 months 12 days	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	6 years 3 months 19 days	5 years 1 month 6 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	6 Months Ended
	Jun. 30, 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	2,162
Number of RSUs Outstanding, Released	(832)
Number of RSUs Outstanding, Canceled/Forfeited	(385)
Number of RSUs Outstanding, Ending Balance	4,499
Weighted-Average Grant Date Fair Value Per Share, Beginning Balance	$ 18.01
Weighted-Average Grant Date Fair Value Per Share, Granted	25.89
Weighted-Average Grant Date Fair Value Per Share, Released	19.02
Weighted-Average Grant Date Fair Value Per Share, Canceled/Forfeited	19.82
Weighted-Average Grant Date Fair Value Per Share, Ending Balance	$ 21.44
Aggregate Intrinsic Value, Outstanding	$ 164,455	$ 73,261

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017USD ($)Country	Jun. 30, 2016	Jun. 30, 2017USD ($)SegmentCountry	Jun. 30, 2016	Dec. 31, 2016USD ($)Country
Concentration Risk [Line Items]
Number of reporting segment | Segment			1
Percentage of total billings collected through credit cards			74.00%
Accounts receivable | $	$ 33,264		$ 33,264		$ 30,243
Accounts Receivable | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk			25.00%		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		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			86.00%		87.00%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Provision (benefit) for income taxes	$ 57,000	$ 57,000	$ 108,000	$ 107,000
Unrecognized tax benefits	$ 0		$ 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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Numerator
Net loss	$ (7,031)	$ (7,771)	$ (14,340)	$ (14,384)
Denominator
Weighted-average common shares for basic and diluted net loss per share	75,867	72,649	75,278	72,380
Basic and diluted net loss per share	$ (0.09)	$ (0.11)	$ (0.19)	$ (0.20)

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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potential common shares excluded from diluted net loss per share	11,312	11,286	11,447	11,682
Equity Incentive Awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potential common shares excluded from diluted net loss per share	11,312	11,286	11,447	11,682

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - Google Inc. - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Total payables to related party	$ 0.8		$ 0.8		$ 1
Total expenses incurred from related party	$ 3.1	$ 3.1	$ 7.1	$ 6