Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MRIN | |
Entity Registrant Name | MARIN SOFTWARE INC | |
Entity Central Index Key | 1,389,002 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,082,459 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | [1] |
Current assets | |||
Cash and cash equivalents | $ 33,332 | $ 68,253 | |
Accounts receivable, net | 22,690 | 18,726 | |
Prepaid expenses and other current assets | 6,530 | 4,751 | |
Total current assets | 62,552 | 91,730 | |
Property and equipment, net | 22,867 | 16,274 | |
Goodwill | 19,432 | 11,527 | |
Intangible assets, net | 11,231 | 7,399 | |
Other noncurrent assets | 893 | 1,287 | |
Total assets | 116,975 | 128,217 | |
Current liabilities | |||
Accounts payable | 2,938 | 3,737 | |
Accrued expenses and other current liabilities | 13,022 | 12,053 | |
Deferred revenues | 1,361 | 2,052 | |
Current portion of long-term debt | 1,826 | 2,587 | |
Total current liabilities | 19,147 | 20,429 | |
Long-term debt, less current portion | 1,346 | 621 | |
Other long-term liabilities | 4,185 | 1,050 | |
Total liabilities | $ 24,678 | $ 22,100 | |
Commitments and contingencies (Note 13) | |||
Stockholders’ equity | |||
Common stock, $0.001 par value - 500,000 shares authorized, 37,286 and 35,846 shares issued, 37,022 and 35,181 outstanding at September 30, 2015, and December 31, 2014, respectively | $ 37 | $ 35 | |
Additional paid-in capital | 271,236 | 253,221 | |
Accumulated deficit | (177,603) | (146,392) | |
Accumulated other comprehensive loss | (1,373) | (747) | |
Total stockholders’ equity | 92,297 | 106,117 | |
Total liabilities and stockholders’ equity | $ 116,975 | $ 128,217 | |
[1] | Derived from our audited consolidated financial statements as of December 31, 2014. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 37,286,000 | 35,846,000 |
Common stock, shares outstanding | 37,022,000 | 35,181,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues, net | $ 26,327 | $ 25,684 | $ 79,515 | $ 72,353 |
Cost of revenues | 10,375 | 9,145 | 30,683 | 26,291 |
Gross profit | 15,952 | 16,539 | 48,832 | 46,062 |
Operating expenses | ||||
Sales and marketing | 10,835 | 12,186 | 36,056 | 36,152 |
Research and development | 8,162 | 7,824 | 25,840 | 20,535 |
General and administrative | 5,882 | 5,682 | 17,257 | 15,466 |
Total operating expenses | 24,879 | 25,692 | 79,153 | 72,153 |
Loss from operations | (8,927) | (9,153) | (30,321) | (26,091) |
Interest expense, net | (63) | (33) | (82) | (162) |
Other (expenses) income, net | (214) | 201 | (134) | (80) |
(Provision for) benefit from income taxes | (300) | (259) | (674) | 1,992 |
Net loss | (9,504) | (9,244) | (31,211) | (24,341) |
Foreign currency translation adjustments | (13) | (589) | (626) | (373) |
Comprehensive loss | $ (9,517) | $ (9,833) | $ (31,837) | $ (24,714) |
Net loss per share available to common stockholders, basic and diluted | $ (0.26) | $ (0.27) | $ (0.86) | $ (0.72) |
Weighted-average shares used to compute net loss per share available to common stockholders, basic and diluted | 36,953 | 34,849 | 36,367 | 34,018 |
Amortization of intangible assets is allocated as follows (Note 5): | ||||
Amortization of intangible assets | $ 826 | $ 485 | $ 2,308 | $ 646 |
Cost of Revenues [Member] | ||||
Stock-based compensation is allocated as follows (Note 9): | ||||
Allocation of stock-based compensation | 249 | 173 | 800 | 576 |
Amortization of intangible assets is allocated as follows (Note 5): | ||||
Amortization of intangible assets | 271 | 171 | 762 | 227 |
Restructuring related expenses are allocated as follows (Note 3): | ||||
Restructuring related expenses | 105 | 0 | 105 | 0 |
Sales and Marketing [Member] | ||||
Stock-based compensation is allocated as follows (Note 9): | ||||
Allocation of stock-based compensation | 435 | 530 | 2,104 | 1,381 |
Amortization of intangible assets is allocated as follows (Note 5): | ||||
Amortization of intangible assets | 247 | 112 | 674 | 150 |
Restructuring related expenses are allocated as follows (Note 3): | ||||
Restructuring related expenses | 659 | 0 | 659 | 0 |
Research and Development [Member] | ||||
Stock-based compensation is allocated as follows (Note 9): | ||||
Allocation of stock-based compensation | 1,864 | 1,362 | 5,831 | 2,449 |
Amortization of intangible assets is allocated as follows (Note 5): | ||||
Amortization of intangible assets | 271 | 170 | 763 | 227 |
Restructuring related expenses are allocated as follows (Note 3): | ||||
Restructuring related expenses | 53 | 0 | 53 | 0 |
General and Administrative [Member] | ||||
Stock-based compensation is allocated as follows (Note 9): | ||||
Allocation of stock-based compensation | 1,058 | 851 | 3,305 | 1,947 |
Amortization of intangible assets is allocated as follows (Note 5): | ||||
Amortization of intangible assets | 37 | 32 | 109 | 42 |
Restructuring related expenses are allocated as follows (Note 3): | ||||
Restructuring related expenses | $ 264 | $ 0 | $ 264 | $ 0 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Operating activities | |||
Net loss | $ (31,211) | $ (24,341) | |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Depreciation | 5,166 | 4,145 | |
Amortization of internally developed software | 1,850 | 1,390 | |
Amortization of intangible assets | 2,308 | 646 | |
Loss on disposal of property and equipment | 19 | 16 | |
Unrealized foreign currency gains | (203) | 0 | |
Noncash interest expense related to warrants issued in connection with debt | 36 | 113 | |
Stock-based compensation related to equity awards and restricted stock | 12,040 | 6,353 | |
Provision for bad debts | 776 | 549 | |
Deferred income tax benefits | (307) | (2,775) | |
Excess tax benefits from stock-based award activities | (9) | (103) | |
Changes in operating assets and liabilities, net of effect of acquisitions | |||
Accounts receivable | (3,386) | (5,369) | |
Prepaid expenses and other current assets | (1,750) | (1,360) | |
Other assets | 407 | 68 | |
Accounts payable | (1,073) | 139 | |
Deferred revenues | (689) | 584 | |
Accrued expenses and other current liabilities | 2,426 | (183) | |
Net cash used in operating activities | (13,600) | (20,128) | |
Investing activities | |||
Purchases of property and equipment | (8,217) | (2,728) | |
Capitalization of internally developed software | (4,107) | (2,381) | |
Acquisitions of businesses, net of cash acquired | (7,509) | (4,151) | |
Net cash used in investing activities | (19,833) | (9,260) | |
Financing activities | |||
Repayment of notes payable | (2,967) | (2,391) | |
Debt issuance costs | (53) | 0 | |
Repurchase of unvested shares | (2) | (7) | |
Proceeds from exercise of common stock options | 1,107 | 1,977 | |
Proceeds from employee stock purchase plan, net of refunds | 995 | 1,056 | |
Stock issuance costs | (51) | 0 | |
Excess tax benefits from stock-based award activities | 9 | 103 | |
Net cash (used in) provided by financing activities | (962) | 738 | |
Effect of foreign exchange rate changes on cash and cash equivalents | (526) | 0 | |
Net decrease in cash and cash equivalents | (34,921) | (28,650) | |
Beginning of period | 68,253 | [1] | 104,407 |
End of period | 33,332 | 75,757 | |
Supplemental disclosure of noncash investing and financing activities | |||
Purchases of property and equipment recorded in accounts payable and accrued expenses | 712 | 100 | |
Acquisition of equipment through capital lease | 1,905 | 0 | |
Issuance of common stock under employee stock purchase plan | 548 | 715 | |
Issuance of common stock in connection with business combination | 4,337 | 11,195 | |
Shares withheld to cover payroll taxes related to the vesting of restricted stock units | $ 521 | $ 0 | |
[1] | Derived from our audited consolidated financial statements as of December 31, 2014. |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | 1. Summary of Business and Significant Accounting Policies Marin Software Incorporated (the “Company”) was incorporated in Delaware in March 2006. The Company provides a leading cross-channel performance advertising cloud platform for search, display and social advertising channels, offered as an integrated software-as-a-service, or SaaS, solution. The Company’s platform enables digital marketers to improve financial performance, realize efficiencies and time savings, and make better business decisions. The Company’s corporate headquarters are located in San Francisco, California, and the Company has additional offices in the following locations: New York, Chicago, Austin, Portland, London, Dublin, Hamburg, Paris, Tokyo, Sydney and Shanghai. Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of only normal recurring items, considered necessary for fair statement have been included. The results of operations for the three and nine months ended September 30, 2015, are not necessarily indicative of the results to be expected for the year ended December 31, 2015, or for other interim periods or for future years. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated on consolidation. The condensed consolidated balance sheet as of December 31, 2014, is derived from audited financial statements as of that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the Securities and Exchange Commission (“SEC”) on February 20, 2015. Recent Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. The new standard eliminates the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the standard requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. It requires that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The new standard is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Disclosures of Uncertainties About an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this ASU on the consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The guidance requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance as it relates to such awards. This guidance is effective for the Company in its first quarter of fiscal year ending December 31, 2017. The Company is currently evaluating the impact of the adoption of this ASU on the consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates when compared with the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This guidance will be effective for the Company in the first quarter of its fiscal year ending December 31, 2018. Early adoption is permitted for the Company in the first quarter of its fiscal year ending December 31, 2017. The Company is currently evaluating the impact of the adoption of this ASU on the consolidated financial statements. Cash and Cash Equivalents The Company considers all highly liquid investments with an original or remaining maturity from the Company’s date of purchase of 90 days or less to be cash equivalents. Deposits held with financial institutions are likely to exceed the amount of insurance on these deposits. Cash equivalents consist of money market funds, which are readily convertible into cash and are stated at cost, which approximates fair market value. Cash equivalents were $25,553 and $58,027 as of September 30, 2015, and December 31, 2014, respectively. Fair Value of Financial Instruments The Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at cost, which approximates fair value because of the short-term nature of those instruments. Based on borrowing rates available to the Company for loans with similar terms and maturities, the carrying value of borrowings approximates fair value (Level 2 within the fair value hierarchy). The Company measures and reports certain financial assets at fair value on a recurring basis, including its investments in money market funds. The fair value hierarchy prioritizes the inputs into three broad levels: Level 1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 Inputs are unobservable inputs based on the Company’s assumptions. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s cash equivalents as of September 30, 2015, and December 31, 2014, consisted of money market funds with original maturity dates of less than three months from the date of their respective purchase. Cash equivalents are classified as Level 1. The fair value of the Company’s money market funds approximated amortized cost and, as such, there were no unrealized gains or losses on money market funds as of September 30, 2015, and December 31, 2014. Allowance for Doubtful Accounts and Revenue Credits The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the Company’s receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available evidence. The Company has not experienced significant credit losses from its accounts receivable. The Company performs a regular review of its customers’ payment histories and associated credit risks and it does not require collateral from its customers. Certain contracts with advertising agencies contain sequential liability provisions, whereby the agency does not have an obligation to pay the Company until payment is received from the agency’s customers. In these circumstances, the Company evaluates the credit worthiness of the agency’s customers, in addition to the agency itself. From time to time, the Company provides credits to customers and an allowance is made based on historical credit activity. As of September 30, 2015, and December 31, 2014, the Company recorded an allowance for potential customer credits in the amount of $1,531 and $508, respectively. Property and Equipment Property and equipment are stated at historical cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets. The useful lives of the property and equipment are as follows: Computer equipment 3 to 5 years Office equipment, furniture and fixtures 3 to 5 years Software 3 years Leasehold improvements Shorter of useful life or lease term Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Major additions and improvements are capitalized while repairs and maintenance that do not extend the life of the asset are charged to operations as incurred. Depreciation and amortization expense is allocated to both cost of revenues and operating expenses. Internally Developed Software Costs incurred in the development phase are capitalized and amortized over the product’s estimated useful life, which is three years. The Company expenses all costs incurred that relate to planning and post implementation phases of development. Capitalized costs related to internally developed software under development are treated as construction in progress until the program, feature or functionality is ready for its intended use, at which time amortization commences. The Company capitalized internally developed software costs of $1,683 and $1,035 during the three months ended September 30, 2015 and 2014, respectively, and $4,107 and $2,381 during the nine months ended September 30, 2015 and 2014, respectively. Amortization of capitalized costs related to internally developed software for the three months ended September 30, 2015 and 2014, was $683 and $480, respectively, and for the nine months ended September 30, 2015 and 2014, was $1,850 and $1,390, respectively. As of September 30, 2015, and December 31, 2014, unamortized internally developed software costs totaled $7,734 and $5,476, respectively. Amortization of internally developed software is reflected in cost of revenues. Costs associated with minor enhancements and maintenance are expensed as incurred. Goodwill, Intangible Assets and Impairment Assessments Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Intangible assets that are not considered to have an indefinite useful life are amortized over their useful lives, which generally range from two to six years. Estimated remaining useful lives of purchased intangible assets are evaluated to assess whether events or changes in circumstances warrant a revision to the remaining periods of amortization. In addition, we evaluate our goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that these assets may be impaired. No goodwill impairment has been identified in any of the periods presented. Impairment of Long-Lived Assets The Company evaluates long-lived assets, excluding goodwill, for potential impairment whenever adverse events or changes in circumstances or business climate indicate that expected undiscounted future cash flows related to such long-lived assets may not be sufficient to support the net book value of such assets. An impairment exists when the carrying value of a long-lived asset exceeds its fair value. An impairment loss is recognized only if the carrying value of a long-lived asset is not recoverable and exceeds its fair value. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. There were no such impairment losses during the periods presented. Operating Leases The Company’s operating lease agreements include provisions for tenant improvement allowances, certain rent holidays and escalations in the base price of the rent payment. The Company defers tenant improvement allowances and amortizes the balance as a reduction to rent expense over the lease term. The Company records rent holidays and rent escalations on a straight-line basis over the lease term. Deferred rent is included in accrued expenses and other current liabilities, as well as other long-term liabilities in the accompanying unaudited condensed consolidated balance sheets. Revenue Recognition The Company generates revenues principally from subscriptions either directly with advertisers or with advertising agencies to its platform for the management of search, display and social advertising. The Company’s subscription agreements are generally one year or longer in length. The Company’s subscription fee under most contracts is variable based on the value of the advertising spend that the Company’s advertisers manage through the Company’s platform and is generally invoiced on a monthly basis. Contracts with direct advertisers and certain contracts with advertising agencies also include a minimum monthly fee that is payable over the duration of the contract. The Company’s customers do not have the right to take possession of the software supporting the application service at any time, nor do the arrangements contain general rights of return. The Company commences revenue recognition for both direct advertisers and advertising agencies when all of the following conditions are met: · persuasive evidence of an arrangement exists; · the Company’s platform is made available to the customer; · the fee is fixed or determinable; and · collection is reasonably assured. The Company recognizes the total minimum fee for both direct advertisers and advertising agencies, where applicable, over the duration of the contract, commencing on the date that the Company’s platform is made available to the customer, provided revenues recognized do not exceed amounts that are invoiced and due. The variable fee, which is based on a percentage of the value of the advertising spend managed through the Company’s platform, is recognized once the amount is fixed or determinable, which is generally on a monthly basis concurrent with the issuance of the customer invoice. Signed contracts are used as evidence of an arrangement. The Company assesses collectability based on a number of factors such as past collection history with the customer and creditworthiness of the customer. Certain agreements with advertising agencies also contain sequential liability provisions, which provide that the agency has no obligation to pay the Company until the agency receives payment from its customers. In these circumstances, the Company evaluates the credit worthiness of the agency’s customers, in addition to the agency itself, to conclude whether or not collectability is reasonably assured. If the Company determines collectability is not reasonably assured, the Company defers the revenue recognition until collectability becomes reasonably assured. The Company applies the authoritative accounting guidance regarding revenue recognition for arrangements with multiple deliverables. Professional services and training, when sold with the Company’s platform subscription services, are accounted for separately when those services have standalone value. In determining whether professional services and training services can be accounted for separately from subscription services, the Company considers the following factors: availability of the services from other vendors; the nature of the services; the dependence of the subscription services on the customer’s decision to buy the professional services; and whether the Company sells the Company’s subscription services without professional services. If the deliverables have stand-alone value, the Company accounts for each deliverable separately and revenues are recognized for the respective deliverables as they are delivered. If one or more of the deliverables do not have stand-alone value, the deliverables that do not have stand-alone value are combined with the final deliverables within the arrangement and treated as a single unit of accounting. Revenues for arrangements treated as a single unit of accounting are recognized over the period of the contract commencing upon delivery of the final deliverable. As of September 30, 2015, the Company did not have stand-alone value for the professional services and training services. This is because the Company includes professional services and training services with the Company’s subscription services and those services are not available from other vendors. Cost of Revenues Cost of revenues primarily consists of costs related to hosting the Company’s cloud-based platform, providing implementation and ongoing customer support, data communications expenses, salaries and benefits of operations and support personnel, software license fees, costs associated with website development activities, allocated overhead, amortization expense associated with capitalized internally developed software and intangible assets and property and equipment depreciation. Stock-Based Compensation Stock-based compensation is measured at grant date based on the fair value of the award and is expensed on a straight-line basis over the requisite service period. Fair values of stock option awards are determined on the date of grant using an option-pricing model. The Company has selected the Black-Scholes option pricing model to estimate the fair value of its stock option awards to employees and non-employees. In applying the Black-Scholes option pricing model, the Company’s determination of the fair value of the stock option award on the date of grant is affected by the Company’s fair value of its common stock, as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility and the optionholders’ actual and projected stock option exercise and employment termination behaviors. For stock option awards with time-based vesting, the Company recognizes stock-based compensation expense over the requisite service period using the straight-line method, based on awards ultimately expected to vest. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Restricted stock units (“RSUs”) are measured based on the fair market values of the underlying common stock on the dates of grant. Shares of common stock are issued on the vesting dates. For awards with time-based vesting, the Company recognizes stock-based compensation expense over the requisite service period using the straight-line method, based on awards ultimately expected to vest. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock options issued to non-employees such as consultants are recorded at their fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying equity instruments vest. The fair value of options granted to consultants is expensed when vested, and such vested outstanding options are recognized as liabilities on the accompanying unaudited condensed consolidated balance sheets. Non-employee stock-based compensation expense was not material for all periods presented. See Note 9 |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | 2. Business Combinations The Company accounts for business combinations using the acquisition accounting method in which the tangible and identifiable assets and liabilities of each acquired company are recorded at their respective fair values as of each acquisition date, including an amount for goodwill representing the difference between the respective purchase price and fair values of identifiable net assets. The goodwill arising from each of the Company’s two acquisitions described below is primarily attributable to the value of the synergies expected to arise from combining the technology and operations of the Company and the acquired entity and is not expected to be deductible for tax purposes. Best estimates and assumptions are used in the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business combination date. These estimates and assumptions are inherently uncertain and subject to further refinement. As a result, during the measurement period, which may be up to one year from the business combination date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding adjustment to goodwill. After the measurement period, adjustments are recorded in the operating results in the period in which the adjustments were determined. SocialMoov S.A.S. On February 12, 2015, pursuant to the terms of a Share Purchase Agreement, the Company acquired all outstanding shares of capital stock of SocialMoov S.A.S. (“SocialMoov”), with SocialMoov surviving as a wholly-owned subsidiary of the Company. Based in Paris, France, SocialMoov is a provider of social advertising tools for advertisers and agencies. The fair value of assets acquired and liabilities assumed was recorded based on a preliminary valuation and the Company’s estimates and assumptions are subject to change within the measurement period. The primary areas of the purchase price allocation that are not yet finalized are related to the fair values of intangible assets acquired and residual goodwill. The results of operations and the preliminary fair values of the assets acquired and liabilities assumed have been included in the accompanying unaudited condensed financial statements since the acquisition date. Revenue from SocialMoov was not material for the three and nine months ended September 30, 2015. The total purchase price for the acquisition was $13,195, which consisted of 636 shares of the Company’s common stock valued at $4,337 upon the closing date using the Company’s closing date stock price immediately preceding the acquisition, and $8,858 in cash. Of the cash consideration paid, $1,894 is held in escrow to secure indemnification obligations of the shareholders of SocialMoov to the Company following the closing, which has not been released as of the filing date of this Quarterly Report on Form 10-Q. In addition, the Company will issue 927 shares of common stock at future dates as defined in the Share Purchase Agreement, valued at $6,487 upon the closing date of the acquisition using the Company’s closing date stock price immediately preceding the acquisition, to existing shareholders of SocialMoov that are also employees of SocialMoov in connection with the acquisition, which are conditioned upon such employees’ continuous employment with the Company. These shares have been excluded from the purchase consideration and will be recognized as post-acquisition stock-based compensation expense. The Company also granted RSUs representing 219 shares of common stock, valued at $959, with time-based vesting to employees of SocialMoov that continued employment with SocialMoov subsequent to the acquisition. The Company recognizes compensation expense equal to the grant date fair value of the common stock or stock-based awards on a straight-line basis over the employee’s requisite service period. The following table summarizes the fair values of tangible assets acquired, liabilities assumed, intangible assets and residual goodwill from the acquisition of SocialMoov (in thousands except years): Estimated Estimated Fair Value Useful Life Tangible assets acquired $ 2,889 N/A Liabilities assumed (see Note 6) (3,759 ) N/A Developed technology 3,800 5 years Customer relationships 2,080 4 years Tradename 260 3 years Goodwill 7,925 Indefinite Total purchase price $ 13,195 NowSpots, Inc. On June 2, 2014, the Company acquired NowSpots, Inc. (which conducted business as Perfect Audience (“Perfect Audience”)), which provides audience retargeting in the display and social advertising channels. The total purchase price for the acquisition was $16,470, which consisted of 1,119 shares of the Company’s common stock valued upon the closing date of the acquisition using the Company’s closing date stock price immediately preceding the acquisition, and $5,275 in cash. In addition, the Company issued 630 shares of common stock, valued at $6,301 upon the closing date of the acquisition using the Company’s closing date stock price immediately preceding the acquisition, to existing Perfect Audience employees in connection with the acquisition, which are conditioned upon such employees’ continuous employment with the Company. These shares have been excluded from the purchase consideration and will be recognized as post-acquisition stock-based compensation expense. |
Restructuring Activities
Restructuring Activities | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | 3. Restructuring Activities During the third quarter of fiscal 2015, the Company executed organizational restructurings (the “2015 Restructuring Plans”) in order to improve cost efficiencies, increase the investment in its cloud-based platform and realign its sales and marketing operations. The total estimated restructuring related expenses associated with the 2015 Restructuring Plans, consisting primarily of severance costs, are $1,214, and will be recorded to cost of revenues or operating expenses, as applicable, within the Company’s condensed consolidated statements of operations as they are incurred. The Company recorded $1,081 of restructuring related expenses in connection with the 2015 Restructuring Plans for the three and nine months ended September 30, 2015, and the Company expects to incur and pay the majority of the estimated remaining amount of $133 by the end of fiscal 2016. As of September 30, 2015, approximately $636 in restructuring related expenses associated with the 2015 Restructuring Plans remained unpaid and included primarily in accrued expenses and other current liabilities on the Company’s condensed consolidated balance sheets. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 4. Balance Sheet Components The following table shows the components of property and equipment as of the dates presented: September 30, December 31, 2015 2014 Computer equipment $ 26,218 $ 21,422 Software 15,140 11,022 Office equipment 975 795 Furniture, fixtures and leasehold improvements 6,178 2,092 48,511 35,331 Less: Accumulated depreciation and amortization (25,644 ) (19,057 ) $ 22,867 $ 16,274 Depreciation and amortization of internally developed software for the nine months ended September 30, 2015 and 2014, was $7,016 and $5,535, respectively. The following table shows the components of accrued expenses and other current liabilities as of the dates presented: September 30, December 31, 2015 2014 Accrued salary and payroll related expenses $ 5,773 $ 6,017 Accrued accounts payable 4,185 3,709 Customer advances 1,399 1,366 Income tax payable 660 377 Sales and use tax payable 368 263 Deferred tax liabilities 223 — Deferred rent and other 414 321 $ 13,022 $ 12,053 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets The goodwill balance as of September 30, 2015, totaling $19,432 was the result of the business combinations disclosed in Note 2 of these unaudited condensed consolidated financial statements. The activity for the nine months ended September 30, 2015 consisted of the following: Balance at December 31, 2014 $ 11,527 Add: Goodwill from SocialMoov acquisition 7,925 Less: Other adjustments to goodwill (20 ) Balance at September 30, 2015 $ 19,432 Intangible assets, excluding goodwill, consisted of the following as of the dates presented: September 30, December 31, Estimated 2015 2014 Useful Life Developed technology $ 9,910 $ 6,110 5-6 years Customer relationships 3,370 1,290 4 years Non-compete agreements and tradenames 1,390 1,130 2-3 years 14,670 8,530 Less: accumulated amortization (3,439 ) (1,131 ) $ 11,231 $ 7,399 Amortization expense of intangible assets was $826 and $485 for the three months ended September 30, 2015 and 2014, respectively, and $2,308 and $646 for the nine months ended September 30, 2015 and 2014, respectively. Future estimated amortization of intangible assets as of September 30, 2015, is presented below: Remaining three months of 2015 $ 826 Year ending December 31, 2016 3,080 Year ending December 31, 2017 2,850 Year ending December 31, 2018 2,537 Year ending December 31, 2019 and thereafter 1,938 $ 11,231 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt In February 2013, the Company entered into a capital lease arrangement with an equipment manufacturer to finance the acquisition of computer equipment. The lease has an effective annual interest rate of 6.0% and is repayable in 36 consecutive equal monthly installments of principal and interest. In August 2015, the Company entered into a separate capital lease arrangement with the same equipment manufacturer to finance the acquisition of additional computer equipment. This lease has an effective annual interest rate of 5.8% and is repayable in 48 consecutive equal monthly installments of principal and interest. At the end of the lease periods of both leases, the Company has the option to purchase the underlying equipment at the estimated fair market value or for a nominal amount. As of September 30, 2015 and December 31, 2014, the net book value of the equipment under the capital leases was $2,448 and $1,439, respectively, and the remaining principal balance payable was $2,656 and $1,542, respectively. In December 2014, the Company entered into a standby letter of credit for $1,293 with Silicon Valley Bank in connection with the non-cancelable lease for the Company’s corporate headquarters in San Francisco. This standby letter of credit does not impact the balances available for withdrawal under the revolving credit facility or other facilities available to the Company. As of September 30, 2015 and December 31, 2014, no amount was drawn on this standby letter of credit. In connection with the acquisition of SocialMoov on February 12, 2015 (see Note 2), the Company assumed outstanding debt totaling approximately $1,043, which consisted primarily of individual loans payable to (a) an agency of the French government, (b) a French public-sector investment bank and (c) a French private-sector financial institution. As of September 30, 2015, these loans were fully repaid. In July 2015, the Company entered into an amendment to its existing loan and security agreement pursuant to which Silicon Valley Bank agreed to increase the revolving credit facility of up to the lesser of $20,000 or 80% of the Company’s eligible accounts receivable. Also, the expiration date of the revolving credit facility was extended to July 31, 2017, and the annual interest rate was amended to (a) the prime rate or (b) the London interbank offered rate then in effect, plus a margin of 2.75%, payable on a monthly basis. The amendment contains affirmative and negative covenants, including covenants related to the delivery of financial and other information, the maintenance of certain financial covenants, as well as limitations on dispositions, changes in business or management, mergers or consolidations, dividends and other corporate actions. No amounts were outstanding pursuant to the revolving credit facility as of September 30, 2015 and December 31, 2014. The maturities of all outstanding debt, including the capital lease arrangements, as of September 30, 2015, are as follows: Year ending 2015 $ 842 2016 1,099 2017 472 2018 500 2019 307 3,220 Less: Current portion (1,826 ) Discount on long-term debt (48 ) Noncurrent portion of debt $ 1,346 |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Common Stock | 7. Common Stock As of September 30, 2015, and December 31, 2014, the Company’s certificate of incorporation authorizes the issuance of 500,000 shares of $0.001 par value common stock. Reserved shares of common stock are as follows: September 30, December 31, 2015 2014 Options or RSUs available for future grant under stock option plans 3,658 3,154 Options outstanding under stock option plans 6,400 6,376 RSUs outstanding under stock option plans 1,334 769 Shares available for future issuance under ESPP 930 1,005 Shares to be issued in connection with acquisition of SocialMoov 927 — 13,249 11,304 |
Equity Award Plans
Equity Award Plans | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Award Plans | 8. Equity Award Plans In April 2006, the Company’s Board of Directors (the “Board”) adopted and the stockholders approved the 2006 Stock Option Plan (“2006 Plan”). The 2006 Plan provides for the grant of incentive stock options under the federal tax laws and non-statutory stock options. Only employees may receive incentive stock options, but non-statutory stock options may be granted to employees, non-employee directors and consultants. The stock options are exercisable at a price equal to the market value of the underlying shares of common stock on the date of the grant as determined by the Company’s Board. The term of options granted under the 2006 Plan may not exceed ten years. Certain options are eligible for exercise prior to vesting. Exercised but unvested shares of common stock are subject to repurchase by the Company at the initial exercise price. The proceeds from the shares of common stock subject to repurchase are classified as a liability and reclassified to equity as the shares vest. Under the 2006 Plan’s early exercise feature, the Company had the right to repurchase 25 In February 2013, the Board and stockholders approved the 2013 Equity Incentive Plan (“2013 Plan”), under which 4,500 shares of common stock were originally reserved for issuance. Additionally, all reserved and unissued shares under the 2006 Plan at the time the 2013 Plan became effective are eligible for issuance under the 2013 Plan. The 2013 Plan became effective on March 21, 2013, at which time the Company ceased to grant equity awards under the 2006 Plan. The 2013 Equity Incentive Plan authorizes the award of stock options, restricted stock awards, stock appreciation rights, RSUs, performance awards and stock bonuses to the Company’s employees, directors, consultants, independent contractors and advisors. On January 1 of each of the first ten calendar years through 2023, the number of shares of common stock reserved under the 2013 Equity Incentive Plan will automatically increase by an amount equal to 5% of the total outstanding shares as of immediately preceding December 31, or such lesser number of shares as determined by the Company’s Board of Directors. Pursuant to terms of the 2013 Plan, the shares available for issuance increased by approximately 1,792 shares of common stock on January 1, 2015. Stock Options A summary of stock option activity under the 2006 Plan and 2013 Plan is as follows: Options Outstanding Weighted Average Weighted Remaining Average Contractual Aggregate Number of Exercise Term Intrinsic Shares Price Per Share (in Years) Value Balances at December 31, 2014 6,376 $ 7.99 7.82 $ 9,697 Options granted 2,141 5.99 7.82 Options exercised (579 ) 1.91 — Options forfeited and cancelled (1,538 ) 8.87 — Balances at September 30, 2015 6,400 7.66 7.52 $ 869 Options exercisable 2,891 $ 7.65 5.56 $ 869 Options vested 2,708 $ 7.49 5.46 $ 869 Options vested and expected to vest 6,068 $ 7.67 7.43 $ 869 RSUs A summary of RSUs granted and unvested under the 2013 Plan as of September 30, 2015, is as follows: RSUs Outstanding Weighted Number of Grant Date Shares Fair Value Per Unit Granted and unvested at December 31, 2014 769 $ 9.36 RSUs granted 1,137 5.75 RSUs vested (121 ) 10.04 RSUs cancelled and withheld to cover taxes (451 ) 7.92 Granted and unvested at September 30, 2015 1,334 Employee Stock Purchase Plan In February 2013, the Board and stockholders approved the 2013 Employee Stock Purchase Plan (“2013 ESPP”), under which 1,000 shares of common stock were originally reserved for issuance. The 2013 ESPP became effective on March 22, 2013. The 2013 ESPP provides generally for six-month purchase periods and the purchase price for shares of common stock purchased under the 2013 Employee Stock Purchase Plan will be 85% of the lesser of the fair market value of the common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of each purchase period in the applicable offering period. On January 1 of each of the first 10 calendar years following the first offering date, the number of shares reserved under the 2013 Employee Stock Purchase Plan will automatically increase by an amount equal to 1% of the total outstanding shares as of immediately preceding December 31, but not to exceed 700 shares. Pursuant to terms of the 2013 ESPP, the shares available for issuance increased by approximately 358 shares on January 1, 2015. During the three and nine months ended September 30, 2015, 105 shares were issued under the 2013 ESPP. During the three and nine months ended September 30, 2014, 90 shares were issued under the 2013 ESPP. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation For stock-based awards granted by the Company, stock-based compensation expense is measured at grant date based on the fair value of the award and is expensed over the requisite service period. The Company recorded stock-based compensation of $3,606 and $2,916 for the three months ended September 30, 2015 and 2014, respectively, and $12,040 and $6,353 for the nine months ended September 30, 2015 and 2014, respectively. Stock Options The Company uses the Black-Scholes option pricing model to estimate the fair value of options. This model requires the input of highly subjective assumptions including the expected volatility, risk-free interest rate and the expected life of options. The Company used the following assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Dividend yield — — — — Expected volatility 44.3 % 51.3 % 49.2 % 51.3 % Risk-free interest rate 1.76 % 1.88 % 1.74 % 1.92 % Expected life of options (in years) 6.25 6.25 6.25 6.26 Forfeiture rate 7.0 % 7.0 % 7.0 % 7.0 % As the Company has limited historical option exercise data, the expected term of the stock options granted to employees was calculated based on the simplified method. Under the simplified method, the expected term is equal to the average of an option’s weighted-average vesting period and its contractual term. Pursuant to the SEC Staff Accounting Bulletin (“SAB”) No. 110, the Company is permitted to continue using the simplified method until sufficient information regarding exercise behavior, such as historical exercise data or exercise information from external sources, becomes available. The Company estimates the expected volatility of its common stock on the date of grant based on the historical stock volatilities of similar publicly-traded entities over a period equal to the expected terms of the options, as the Company does not have sufficient trading history to use the volatility of its own common stock. The Company has no history or expectation of paying cash dividends on its common stock. The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of the options in effect at the time of grant. Cash proceeds from the exercise of stock options were $1,107 and $1,977 during the nine months ended September 30, 2015 and 2014, respectively. Compensation expense is recognized ratably over the requisite service period. As of September 30, 2015, there was $ 11,710 Restricted Stock and RSUs As of September 30, 2015, there was $ 13,273 2.1 Employee Stock Purchase Plan The Company estimates the fair value of purchase rights under the ESPP using the Black-Scholes valuation model. The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes option valuation model and the straight-line attribution approach with assumptions substantially similar to those used for the valuation of our stock option awards. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company’s quarterly provision for income taxes is based on an estimated effective annual income tax rate. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. Income tax expense for the three and nine months ended September 30, 2015, was $300 and $674 on pre-tax losses of $9,204 and $30,537, respectively. As of September 30, 2015, the income tax rate varies from the United States statutory income tax rate primarily due to valuation allowances in the United States and taxable income generated by the Company’s foreign wholly-owned subsidiaries. The income tax expense for the three months ended September 30, 2014 was $259 on a pre-tax loss of $8,985 and the income tax benefit for the nine months ended September 30, 2014 was $1,992 on a pre-tax loss of $26,333. The benefit recorded for the nine months ended September 30, 2014, was primarily attributable to a decrease in our valuation allowances of $2,603 due to deferred tax liabilities recorded as part of our acquisition of Perfect Audience (Note 2). The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and, therefore, the need for valuation allowances on a quarterly basis. There is no corresponding income tax benefit recognized with respect to losses incurred and no corresponding income tax expense recognized with respect to earnings generated in jurisdictions with a valuation allowance. This causes variability in the Company’s effective tax rate. The Company will maintain the valuation allowances until it is more likely than not that the net deferred tax assets will be realized. As of September 30, 2015, the Company’s gross uncertain tax benefits totaled $1,581, and none of the Company’s uncertain tax benefits, including related accrued interest and penalties, would affect the Company’s effective tax rate if recognized. |
Net Loss Per Share Available to
Net Loss Per Share Available to Common Stockholders | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Available to Common Stockholders | 11. Net Loss Per Share Available to Common Stockholders Basic net loss per share available to common stockholders is calculated by dividing the net loss available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. The weighted-average number of shares of common stock used to calculate the Company’s basic net loss per share available to common stockholders excludes those shares subject to repurchase related to unvested common shares, stock options that were exercised prior to vesting, restricted stock issued and RSUs settled for shares of common stock, as these shares are not deemed to be outstanding for accounting purposes until they vest. The diluted net loss per share of common stock is computed by dividing the net loss using the weighted-average number of shares of common stock, excluding common stock subject to repurchase, and, if dilutive, potential shares of common stock outstanding during the period. Potential shares of common stock consist of common stock subject to repurchase, stock options to purchase common stock, restricted common stock issued and RSUs settled for shares of common stock. The following table presents the calculation of basic and diluted net loss per share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net loss $ (9,504 ) $ (9,244 ) $ (31,211 ) $ (24,341 ) Denominator: Weighted average number of shares, basic and diluted 36,953 34,849 36,367 34,018 Net loss per share available to common stockholders Basic and diluted net loss per common share available to common stockholders $ (0.26 ) $ (0.27 ) $ (0.86 ) $ (0.72 ) The following table presents the potential shares of common stock outstanding that were excluded from the computation of diluted net loss per share available to common stockholders for the periods presented because including them would have been anti-dilutive: Three and Nine Months Ended September 30, 2015 2014 Options to purchase common stock 6,400 6,204 Restricted stock units 1,334 355 Restricted common stock issued 239 606 Common stock subject to repurchase 25 103 7,998 7,268 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | 12. Segment Reporting The Company defines the term “chief operating decision maker” to be the Chief Executive Officer. The Chief Executive Officer reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating of financial performance. Accordingly, the Company has determined that it operates as a single reportable and operating segment. Revenues by geographic area, based on the billing location of the customer, were as follows for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 United States of America $ 18,123 $ 16,839 $ 53,333 $ 47,519 International 8,204 8,845 26,182 24,834 Total revenues, net $ 26,327 $ 25,684 $ 79,515 $ 72,353 Long-lived assets, excluding goodwill and intangible assets, by geographic area were as follows for the periods presented: September 30, December 31, 2015 2014 United States of America $ 21,788 $ 15,701 International 1,079 573 Total long-lived assets, net $ 22,867 $ 16,274 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Operating Leases Rent expense for the three months ended September 30, 2015 and 2014, was $2,279 and $1,856, respectively, and for the nine months ended September 30, 2015 and 2014, was $6,496 and $5,645, respectively. Future minimum lease payments for significant operating leases as of September 30, 2015, were as follows: Remaining three months of 2015 $ 1,937 Year ending December 31, 2016 7,732 Year ending December 31, 2017 7,427 Year ending December 31, 2018 4,503 Year ending December 31, 2019 and thereafter 13,752 $ 35,351 Legal Matters From time to time, the Company may be involved in lawsuits, claims, investigations and proceedings, consisting of intellectual property, commercial, employment and other matters, which arise in the ordinary course of business. In accordance with U.S. generally accepted accounting principles (“GAAP”), the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, ruling, advice of legal counsel and other information and events pertaining to a particular case. Litigation is inherently unpredictable. If any unfavorable ruling was to occur in any specific period or if a loss becomes probable and estimable, there exists the possibility of a material adverse impact on the Company’s results of operations, financial position or cash flows. Indemnification The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to the agreements, each party may indemnify, defend and hold the other party harmless with respect to such claim, suit or proceeding brought against it by a third party alleging that the indemnifying party’s intellectual property infringes upon the intellectual property of the third party, or results from a breach of the indemnifying party’s representations and warranties or covenants, or that results from any acts of negligence or willful misconduct. The term of these indemnification agreements is generally perpetual any time after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. Historically, the Company has not been obligated to make significant payments for these obligations and no liabilities have been recorded for these obligations on the unaudited consolidated condensed balance sheets as of September 30, 2015 and December 31, 2014. The Company also indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The maximum amount of potential future indemnification is unlimited; however, the Company has a Directors and Officers insurance policy that limits its exposure and enables the Company to recover a portion of any future amounts paid. Historically, the Company has not been obligated to make any payments for these obligations and no liabilities have been recorded for these obligations on the unaudited consolidated condensed balance sheets as of September 30, 2015 and December 31, 2014. Other Contingencies The Company is subject to claims and assessments from time to time in the ordinary course of business. The Company’s management does not believe that any such matters, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Summary of Business and Signi19
Summary of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of only normal recurring items, considered necessary for fair statement have been included. The results of operations for the three and nine months ended September 30, 2015, are not necessarily indicative of the results to be expected for the year ended December 31, 2015, or for other interim periods or for future years. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated on consolidation. The condensed consolidated balance sheet as of December 31, 2014, is derived from audited financial statements as of that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the Securities and Exchange Commission (“SEC”) on February 20, 2015. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. The new standard eliminates the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the standard requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. It requires that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The new standard is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Disclosures of Uncertainties About an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this ASU on the consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The guidance requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance as it relates to such awards. This guidance is effective for the Company in its first quarter of fiscal year ending December 31, 2017. The Company is currently evaluating the impact of the adoption of this ASU on the consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates when compared with the current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This guidance will be effective for the Company in the first quarter of its fiscal year ending December 31, 2018. Early adoption is permitted for the Company in the first quarter of its fiscal year ending December 31, 2017. The Company is currently evaluating the impact of the adoption of this ASU on the consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original or remaining maturity from the Company’s date of purchase of 90 days or less to be cash equivalents. Deposits held with financial institutions are likely to exceed the amount of insurance on these deposits. Cash equivalents consist of money market funds, which are readily convertible into cash and are stated at cost, which approximates fair market value. Cash equivalents were $25,553 and $58,027 as of September 30, 2015, and December 31, 2014, respectively. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at cost, which approximates fair value because of the short-term nature of those instruments. Based on borrowing rates available to the Company for loans with similar terms and maturities, the carrying value of borrowings approximates fair value (Level 2 within the fair value hierarchy). The Company measures and reports certain financial assets at fair value on a recurring basis, including its investments in money market funds. The fair value hierarchy prioritizes the inputs into three broad levels: Level 1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 Inputs are unobservable inputs based on the Company’s assumptions. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s cash equivalents as of September 30, 2015, and December 31, 2014, consisted of money market funds with original maturity dates of less than three months from the date of their respective purchase. Cash equivalents are classified as Level 1. The fair value of the Company’s money market funds approximated amortized cost and, as such, there were no unrealized gains or losses on money market funds as of September 30, 2015, and December 31, 2014. |
Allowance for Doubtful Accounts and Revenue Credits | Allowance for Doubtful Accounts and Revenue Credits The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the Company’s receivables portfolio determined on the basis of historical experience, specific allowances for known troubled accounts and other currently available evidence. The Company has not experienced significant credit losses from its accounts receivable. The Company performs a regular review of its customers’ payment histories and associated credit risks and it does not require collateral from its customers. Certain contracts with advertising agencies contain sequential liability provisions, whereby the agency does not have an obligation to pay the Company until payment is received from the agency’s customers. In these circumstances, the Company evaluates the credit worthiness of the agency’s customers, in addition to the agency itself. From time to time, the Company provides credits to customers and an allowance is made based on historical credit activity. As of September 30, 2015, and December 31, 2014, the Company recorded an allowance for potential customer credits in the amount of $1,531 and $508, respectively. |
Property and Equipment | Property and Equipment Property and equipment are stated at historical cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets. The useful lives of the property and equipment are as follows: Computer equipment 3 to 5 years Office equipment, furniture and fixtures 3 to 5 years Software 3 years Leasehold improvements Shorter of useful life or lease term Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Major additions and improvements are capitalized while repairs and maintenance that do not extend the life of the asset are charged to operations as incurred. Depreciation and amortization expense is allocated to both cost of revenues and operating expenses. |
Internally Developed Software | Internally Developed Software Costs incurred in the development phase are capitalized and amortized over the product’s estimated useful life, which is three years. The Company expenses all costs incurred that relate to planning and post implementation phases of development. Capitalized costs related to internally developed software under development are treated as construction in progress until the program, feature or functionality is ready for its intended use, at which time amortization commences. The Company capitalized internally developed software costs of $1,683 and $1,035 during the three months ended September 30, 2015 and 2014, respectively, and $4,107 and $2,381 during the nine months ended September 30, 2015 and 2014, respectively. Amortization of capitalized costs related to internally developed software for the three months ended September 30, 2015 and 2014, was $683 and $480, respectively, and for the nine months ended September 30, 2015 and 2014, was $1,850 and $1,390, respectively. As of September 30, 2015, and December 31, 2014, unamortized internally developed software costs totaled $7,734 and $5,476, respectively. Amortization of internally developed software is reflected in cost of revenues. Costs associated with minor enhancements and maintenance are expensed as incurred. |
Goodwill, Intangible Assets and Impairment Assessments | Goodwill, Intangible Assets and Impairment Assessments Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Intangible assets that are not considered to have an indefinite useful life are amortized over their useful lives, which generally range from two to six years. Estimated remaining useful lives of purchased intangible assets are evaluated to assess whether events or changes in circumstances warrant a revision to the remaining periods of amortization. In addition, we evaluate our goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that these assets may be impaired. No goodwill impairment has been identified in any of the periods presented. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates long-lived assets, excluding goodwill, for potential impairment whenever adverse events or changes in circumstances or business climate indicate that expected undiscounted future cash flows related to such long-lived assets may not be sufficient to support the net book value of such assets. An impairment exists when the carrying value of a long-lived asset exceeds its fair value. An impairment loss is recognized only if the carrying value of a long-lived asset is not recoverable and exceeds its fair value. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. There were no such impairment losses during the periods presented. |
Operating Leases | Operating Leases The Company’s operating lease agreements include provisions for tenant improvement allowances, certain rent holidays and escalations in the base price of the rent payment. The Company defers tenant improvement allowances and amortizes the balance as a reduction to rent expense over the lease term. The Company records rent holidays and rent escalations on a straight-line basis over the lease term. Deferred rent is included in accrued expenses and other current liabilities, as well as other long-term liabilities in the accompanying unaudited condensed consolidated balance sheets. |
Revenue Recognition | Revenue Recognition The Company generates revenues principally from subscriptions either directly with advertisers or with advertising agencies to its platform for the management of search, display and social advertising. The Company’s subscription agreements are generally one year or longer in length. The Company’s subscription fee under most contracts is variable based on the value of the advertising spend that the Company’s advertisers manage through the Company’s platform and is generally invoiced on a monthly basis. Contracts with direct advertisers and certain contracts with advertising agencies also include a minimum monthly fee that is payable over the duration of the contract. The Company’s customers do not have the right to take possession of the software supporting the application service at any time, nor do the arrangements contain general rights of return. The Company commences revenue recognition for both direct advertisers and advertising agencies when all of the following conditions are met: · persuasive evidence of an arrangement exists; · the Company’s platform is made available to the customer; · the fee is fixed or determinable; and · collection is reasonably assured. The Company recognizes the total minimum fee for both direct advertisers and advertising agencies, where applicable, over the duration of the contract, commencing on the date that the Company’s platform is made available to the customer, provided revenues recognized do not exceed amounts that are invoiced and due. The variable fee, which is based on a percentage of the value of the advertising spend managed through the Company’s platform, is recognized once the amount is fixed or determinable, which is generally on a monthly basis concurrent with the issuance of the customer invoice. Signed contracts are used as evidence of an arrangement. The Company assesses collectability based on a number of factors such as past collection history with the customer and creditworthiness of the customer. Certain agreements with advertising agencies also contain sequential liability provisions, which provide that the agency has no obligation to pay the Company until the agency receives payment from its customers. In these circumstances, the Company evaluates the credit worthiness of the agency’s customers, in addition to the agency itself, to conclude whether or not collectability is reasonably assured. If the Company determines collectability is not reasonably assured, the Company defers the revenue recognition until collectability becomes reasonably assured. The Company applies the authoritative accounting guidance regarding revenue recognition for arrangements with multiple deliverables. Professional services and training, when sold with the Company’s platform subscription services, are accounted for separately when those services have standalone value. In determining whether professional services and training services can be accounted for separately from subscription services, the Company considers the following factors: availability of the services from other vendors; the nature of the services; the dependence of the subscription services on the customer’s decision to buy the professional services; and whether the Company sells the Company’s subscription services without professional services. If the deliverables have stand-alone value, the Company accounts for each deliverable separately and revenues are recognized for the respective deliverables as they are delivered. If one or more of the deliverables do not have stand-alone value, the deliverables that do not have stand-alone value are combined with the final deliverables within the arrangement and treated as a single unit of accounting. Revenues for arrangements treated as a single unit of accounting are recognized over the period of the contract commencing upon delivery of the final deliverable. As of September 30, 2015, the Company did not have stand-alone value for the professional services and training services. This is because the Company includes professional services and training services with the Company’s subscription services and those services are not available from other vendors. |
Cost of Revenues | Cost of Revenues Cost of revenues primarily consists of costs related to hosting the Company’s cloud-based platform, providing implementation and ongoing customer support, data communications expenses, salaries and benefits of operations and support personnel, software license fees, costs associated with website development activities, allocated overhead, amortization expense associated with capitalized internally developed software and intangible assets and property and equipment depreciation. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation is measured at grant date based on the fair value of the award and is expensed on a straight-line basis over the requisite service period. Fair values of stock option awards are determined on the date of grant using an option-pricing model. The Company has selected the Black-Scholes option pricing model to estimate the fair value of its stock option awards to employees and non-employees. In applying the Black-Scholes option pricing model, the Company’s determination of the fair value of the stock option award on the date of grant is affected by the Company’s fair value of its common stock, as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility and the optionholders’ actual and projected stock option exercise and employment termination behaviors. For stock option awards with time-based vesting, the Company recognizes stock-based compensation expense over the requisite service period using the straight-line method, based on awards ultimately expected to vest. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Restricted stock units (“RSUs”) are measured based on the fair market values of the underlying common stock on the dates of grant. Shares of common stock are issued on the vesting dates. For awards with time-based vesting, the Company recognizes stock-based compensation expense over the requisite service period using the straight-line method, based on awards ultimately expected to vest. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock options issued to non-employees such as consultants are recorded at their fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying equity instruments vest. The fair value of options granted to consultants is expensed when vested, and such vested outstanding options are recognized as liabilities on the accompanying unaudited condensed consolidated balance sheets. Non-employee stock-based compensation expense was not material for all periods presented. See Note 9 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Useful Lives of Property and Equipment | The useful lives of the property and equipment are as follows: Computer equipment 3 to 5 years Office equipment, furniture and fixtures 3 to 5 years Software 3 years Leasehold improvements Shorter of useful life or lease term |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Summary of Fair Values of Tangible Assets Acquired, Liabilities Assumed, Intangible Assets and Residual Goodwill | The following table summarizes the fair values of tangible assets acquired, liabilities assumed, intangible assets and residual goodwill from the acquisition of SocialMoov (in thousands except years): Estimated Estimated Fair Value Useful Life Tangible assets acquired $ 2,889 N/A Liabilities assumed (see Note 6) (3,759 ) N/A Developed technology 3,800 5 years Customer relationships 2,080 4 years Tradename 260 3 years Goodwill 7,925 Indefinite Total purchase price $ 13,195 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Components of Property and Equipment | The following table shows the components of property and equipment as of the dates presented: September 30, December 31, 2015 2014 Computer equipment $ 26,218 $ 21,422 Software 15,140 11,022 Office equipment 975 795 Furniture, fixtures and leasehold improvements 6,178 2,092 48,511 35,331 Less: Accumulated depreciation and amortization (25,644 ) (19,057 ) $ 22,867 $ 16,274 |
Components of Accrued Expenses and Other Current Liabilities | The following table shows the components of accrued expenses and other current liabilities as of the dates presented: September 30, December 31, 2015 2014 Accrued salary and payroll related expenses $ 5,773 $ 6,017 Accrued accounts payable 4,185 3,709 Customer advances 1,399 1,366 Income tax payable 660 377 Sales and use tax payable 368 263 Deferred tax liabilities 223 — Deferred rent and other 414 321 $ 13,022 $ 12,053 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The goodwill balance as of September 30, 2015, totaling $19,432 was the result of the business combinations disclosed in Note 2 of these unaudited condensed consolidated financial statements. The activity for the nine months ended September 30, 2015 consisted of the following: Balance at December 31, 2014 $ 11,527 Add: Goodwill from SocialMoov acquisition 7,925 Less: Other adjustments to goodwill (20 ) Balance at September 30, 2015 $ 19,432 |
Schedule of Intangible Assets | Intangible assets, excluding goodwill, consisted of the following as of the dates presented: September 30, December 31, Estimated 2015 2014 Useful Life Developed technology $ 9,910 $ 6,110 5-6 years Customer relationships 3,370 1,290 4 years Non-compete agreements and tradenames 1,390 1,130 2-3 years 14,670 8,530 Less: accumulated amortization (3,439 ) (1,131 ) $ 11,231 $ 7,399 |
Schedule of Future Estimated Amortization Costs of Intangible Assets | Future estimated amortization of intangible assets as of September 30, 2015, is presented below: Remaining three months of 2015 $ 826 Year ending December 31, 2016 3,080 Year ending December 31, 2017 2,850 Year ending December 31, 2018 2,537 Year ending December 31, 2019 and thereafter 1,938 $ 11,231 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Maturities of Outstanding Debt | The maturities of all outstanding debt, including the capital lease arrangements, as of September 30, 2015, are as follows: Year ending 2015 $ 842 2016 1,099 2017 472 2018 500 2019 307 3,220 Less: Current portion (1,826 ) Discount on long-term debt (48 ) Noncurrent portion of debt $ 1,346 |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Reserved Shares of Common Stock | As of September 30, 2015, and December 31, 2014, the Company’s certificate of incorporation authorizes the issuance of 500,000 shares of $0.001 par value common stock. Reserved shares of common stock are as follows: September 30, December 31, 2015 2014 Options or RSUs available for future grant under stock option plans 3,658 3,154 Options outstanding under stock option plans 6,400 6,376 RSUs outstanding under stock option plans 1,334 769 Shares available for future issuance under ESPP 930 1,005 Shares to be issued in connection with acquisition of SocialMoov 927 — 13,249 11,304 |
Equity Award Plans (Tables)
Equity Award Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Activity under the 2006 Plan and 2013 Plan | A summary of stock option activity under the 2006 Plan and 2013 Plan is as follows: Options Outstanding Weighted Average Weighted Remaining Average Contractual Aggregate Number of Exercise Term Intrinsic Shares Price Per Share (in Years) Value Balances at December 31, 2014 6,376 $ 7.99 7.82 $ 9,697 Options granted 2,141 5.99 7.82 Options exercised (579 ) 1.91 — Options forfeited and cancelled (1,538 ) 8.87 — Balances at September 30, 2015 6,400 7.66 7.52 $ 869 Options exercisable 2,891 $ 7.65 5.56 $ 869 Options vested 2,708 $ 7.49 5.46 $ 869 Options vested and expected to vest 6,068 $ 7.67 7.43 $ 869 |
Summary of RSUs Granted and Unvested under the 2013 Plan | A summary of RSUs granted and unvested under the 2013 Plan as of September 30, 2015, is as follows: RSUs Outstanding Weighted Number of Grant Date Shares Fair Value Per Unit Granted and unvested at December 31, 2014 769 $ 9.36 RSUs granted 1,137 5.75 RSUs vested (121 ) 10.04 RSUs cancelled and withheld to cover taxes (451 ) 7.92 Granted and unvested at September 30, 2015 1,334 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Assumptions Used to Estimate Fair Value of Options | The Company used the following assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Dividend yield — — — — Expected volatility 44.3 % 51.3 % 49.2 % 51.3 % Risk-free interest rate 1.76 % 1.88 % 1.74 % 1.92 % Expected life of options (in years) 6.25 6.25 6.25 6.26 Forfeiture rate 7.0 % 7.0 % 7.0 % 7.0 % |
Net Loss Per Share Available 28
Net Loss Per Share Available to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net loss $ (9,504 ) $ (9,244 ) $ (31,211 ) $ (24,341 ) Denominator: Weighted average number of shares, basic and diluted 36,953 34,849 36,367 34,018 Net loss per share available to common stockholders Basic and diluted net loss per common share available to common stockholders $ (0.26 ) $ (0.27 ) $ (0.86 ) $ (0.72 ) |
Potential Common Shares Outstanding | The following table presents the potential shares of common stock outstanding that were excluded from the computation of diluted net loss per share available to common stockholders for the periods presented because including them would have been anti-dilutive: Three and Nine Months Ended September 30, 2015 2014 Options to purchase common stock 6,400 6,204 Restricted stock units 1,334 355 Restricted common stock issued 239 606 Common stock subject to repurchase 25 103 7,998 7,268 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Revenues by Geographic Area, Based on Billing Location of Customer and Long-Lived Assets, by Geographical Areas | Revenues by geographic area, based on the billing location of the customer, were as follows for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 United States of America $ 18,123 $ 16,839 $ 53,333 $ 47,519 International 8,204 8,845 26,182 24,834 Total revenues, net $ 26,327 $ 25,684 $ 79,515 $ 72,353 Long-lived assets, excluding goodwill and intangible assets, by geographic area were as follows for the periods presented: September 30, December 31, 2015 2014 United States of America $ 21,788 $ 15,701 International 1,079 573 Total long-lived assets, net $ 22,867 $ 16,274 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Annual Future Minimum Payments under Operating Leases | Future minimum lease payments for significant operating leases as of September 30, 2015, were as follows: Remaining three months of 2015 $ 1,937 Year ending December 31, 2016 7,732 Year ending December 31, 2017 7,427 Year ending December 31, 2018 4,503 Year ending December 31, 2019 and thereafter 13,752 $ 35,351 |
Summary of Business and Signi31
Summary of Business and Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Incorporation date | Mar. 31, 2006 | ||||
Cash equivalent consist of money market with maturity dates | 90 days | 90 days | |||
Cash equivalents | $ 25,553 | $ 25,553 | $ 58,027 | ||
Unrealized gains or losses on money market funds | 0 | 0 | |||
Allowance for potential customer credits | 1,531 | 1,531 | 508 | ||
Capitalization of internally developed software costs | 1,683 | $ 1,035 | 4,107 | $ 2,381 | |
Amortization of internally developed software | 683 | 480 | 1,850 | 1,390 | |
Unamortized internally developed software costs | 7,734 | 7,734 | $ 5,476 | ||
Goodwill impairment | 0 | 0 | 0 | 0 | |
Impairment losses on long-lived assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Minimum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortized useful lives | 2 years | ||||
Minimum [Member] | Subscription arrangement [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Length of subscription agreements | 1 year | ||||
Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortized useful lives | 6 years | ||||
Software [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of internally developed software | 3 years |
Summary of Business and Signi32
Summary of Business and Significant Accounting Policies - Schedule of Useful Lives of Property and Equipment (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
Computer Equipment [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Useful lives of property and equipment | 3 years |
Computer Equipment [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Useful lives of property and equipment | 5 years |
Office equipment, furniture and fixtures [Member] | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Useful lives of property and equipment | 3 years |
Office equipment, furniture and fixtures [Member] | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Useful lives of property and equipment | 5 years |
Software [Member] | |
Property Plant And Equipment [Line Items] | |
Useful lives of property and equipment | 3 years |
Leasehold improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Leasehold improvements | Shorter of useful life or lease term |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | Feb. 12, 2015 | Jun. 02, 2014 | Sep. 30, 2015 |
Business Acquisition [Line Items] | |||
Number of RSUs, granted | 1,137 | ||
SocialMoov [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition date | Feb. 12, 2015 | ||
Business acquisition, purchase price | $ 13,195 | ||
Number of common stock, shares at the date of acquisition | 636 | ||
Consideration in common stock | $ 4,337 | ||
Common stock value at the date of acquisition | 8,858 | ||
Held in escrow to secure indemnification obligations | $ 1,894 | ||
Additional shares of common stock issued in connection with acquisition | 927 | ||
Common stock issued in connection with acquisition closing date fair value | $ 6,487 | ||
SocialMoov [Member] | RSUs [Member] | |||
Business Acquisition [Line Items] | |||
Number of RSUs, granted | 219 | ||
Value of RSUs, granted | $ 959 | ||
NowSpots, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition date | Jun. 2, 2014 | ||
Business acquisition, purchase price | $ 16,470 | ||
Number of common stock, shares at the date of acquisition | 1,119 | ||
Consideration in common stock | $ 6,301 | ||
Common stock value at the date of acquisition | $ 5,275 | ||
Additional shares of common stock issued in connection with acquisition | 630 |
Business Combinations - Summary
Business Combinations - Summary of Fair Values of Tangible Assets Acquired, Liabilities Assumed, Intangible Assets and Residual Goodwill (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Business Acquisition [Line Items] | |
Tangible assets acquired | $ 2,889 |
Liabilities assumed (see Note 6) | (3,759) |
Total purchase price | 13,195 |
Developed technology [Member] | |
Business Acquisition [Line Items] | |
Developed technology | $ 3,800 |
Developed technology | 5 years |
Customer relationships [Member] | |
Business Acquisition [Line Items] | |
Developed technology | $ 2,080 |
Developed technology | 4 years |
Tradename [Member] | |
Business Acquisition [Line Items] | |
Developed technology | $ 260 |
Developed technology | 3 years |
SocialMoov [Member] | |
Business Acquisition [Line Items] | |
Goodwill | $ 7,925 |
Goodwill | Indefinite |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Detail) - 2015 Restructuring Plans [Member] $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||
Severance costs | $ 1,214 | |
Restructuring related expenses | 1,081 | $ 1,081 |
Restructuring and related cost, expected cost remaining | 133 | 133 |
Restructuring expense incurred to date | $ 636 | $ 636 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 48,511 | $ 35,331 | |
Less: Accumulated depreciation and amortization | (25,644) | (19,057) | |
Property and equipment, net | 22,867 | 16,274 | [1] |
Computer Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 26,218 | 21,422 | |
Software [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 15,140 | 11,022 | |
Office Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 975 | 795 | |
Furniture, Fixtures and Leasehold Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 6,178 | $ 2,092 | |
[1] | Derived from our audited consolidated financial statements as of December 31, 2014. |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Depreciation and amortization of internally developed software | $ 7,016 | $ 5,535 |
Balance Sheet Components - Co38
Balance Sheet Components - Components of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||
Accrued salary and payroll related expenses | $ 5,773 | $ 6,017 | |
Accrued accounts payable | 4,185 | 3,709 | |
Customer advances | 1,399 | 1,366 | |
Income tax payable | 660 | 377 | |
Sales and use tax payable | 368 | 263 | |
Deferred tax liabilities | 223 | 0 | |
Deferred rent and other | 414 | 321 | |
Accrued expenses and other current liabilities | $ 13,022 | $ 12,053 | [1] |
[1] | Derived from our audited consolidated financial statements as of December 31, 2014. |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | [1] | |
Finite Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 19,432 | $ 19,432 | $ 11,527 | |||
Amortization of intangible assets | 826 | $ 485 | 2,308 | $ 646 | ||
SocialMoov [Member] | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 19,432 | $ 19,432 | ||||
[1] | Derived from our audited consolidated financial statements as of December 31, 2014. |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets - Schedule of Goodwill (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($) | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Balance at December 31, 2014 | $ 11,527 | [1] |
Add: Goodwill from SocialMoov acquisition | 7,925 | |
Less: Other adjustments to goodwill | (20) | |
Balance at September 30, 2015 | $ 19,432 | |
[1] | Derived from our audited consolidated financial statements as of December 31, 2014. |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | ||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 14,670 | $ 8,530 | |
Less: accumulated amortization | (3,439) | (1,131) | |
Intangible assets, net | $ 11,231 | 7,399 | [1] |
Minimum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets amortized useful lives | 2 years | ||
Maximum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets amortized useful lives | 6 years | ||
Developed technology [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 9,910 | 6,110 | |
Intangible assets amortized useful lives | 5 years | ||
Developed technology [Member] | Minimum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets amortized useful lives | 5 years | ||
Developed technology [Member] | Maximum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets amortized useful lives | 6 years | ||
Customer relationships [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 3,370 | 1,290 | |
Intangible assets amortized useful lives | 4 years | ||
Non-compete agreements and tradename [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 1,390 | $ 1,130 | |
Non-compete agreements and tradename [Member] | Minimum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets amortized useful lives | 2 years | ||
Non-compete agreements and tradename [Member] | Maximum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets amortized useful lives | 3 years | ||
[1] | Derived from our audited consolidated financial statements as of December 31, 2014. |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Schedule of Future Estimated Amortization Costs of Intangible Assets (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Remaining three months of 2015 | $ 826 |
Year ending December 31, 2016 | 3,080 |
Year ending December 31, 2017 | 2,850 |
Year ending December 31, 2018 | 2,537 |
Year ending December 31, 2019 and thereafter | 1,938 |
Intangible assets, net | $ 11,231 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 1 Months Ended | |||||
Jul. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Aug. 31, 2015Installment | Feb. 12, 2015USD ($) | Dec. 31, 2014USD ($) | Feb. 28, 2013Installment | |
Line Of Credit Facility [Line Items] | ||||||
Revolving credit facility, amount outstanding | $ 0 | $ 0 | ||||
SocialMoov loans [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Loans payables | $ 1,043,000 | |||||
Letter of Credit [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Credit facility | 1,293,000 | |||||
Letter of credit drawn current | 0 | 0 | ||||
Revolving Credit Facility [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Credit facility | $ 20,000,000 | |||||
Percentage of eligible accounts receivable | 80.00% | |||||
Revolving credit facility, the expiration date | Jul. 31, 2017 | |||||
Revolving credit facility, amended annual interest rate | 2.75% | |||||
Computer Equipment [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Effective annual interest rate | 5.80% | 6.00% | ||||
Number of monthly installments | Installment | 48 | 36 | ||||
Net book value of equipment under capital leases | 2,448,000 | 1,439,000 | ||||
Remaining principal balance payable | $ 2,656,000 | $ 1,542,000 |
Debt - Maturities of Outstandin
Debt - Maturities of Outstanding Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | [1] |
Debt Disclosure [Abstract] | |||
2,015 | $ 842 | ||
2,016 | 1,099 | ||
2,017 | 472 | ||
2,018 | 500 | ||
2,019 | 307 | ||
Total | 3,220 | ||
Less: | |||
Current portion | (1,826) | $ (2,587) | |
Discount on long-term debt | (48) | ||
Noncurrent portion of debt | $ 1,346 | $ 621 | |
[1] | Derived from our audited consolidated financial statements as of December 31, 2014. |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Equity [Abstract] | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common Stock - Reserved Shares
Common Stock - Reserved Shares of Common Stock (Detail) - shares shares in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Feb. 28, 2013 |
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 13,249 | 11,304 | |
Shares Available for Future Issuance under ESPP [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 930 | 1,005 | 1,000 |
RSUs [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 1,334 | 769 | |
Options Outstanding [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 6,400 | 6,376 | |
Shares to be issued in connection with acquisition of SocialMoov [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 927 | 0 | |
Options or RSUs Available for Future Grant [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 3,658 | 3,154 |
Equity Award Plans - Additional
Equity Award Plans - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Feb. 28, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Reserved shares of Common Stock | 13,249,000 | 13,249,000 | 11,304,000 | ||||
2013 Equity Incentive Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Reserved shares of Common Stock | 4,500,000 | ||||||
Percentage of shares outstanding under Equity Award Plan | 5.00% | ||||||
Increase in common stock available for issuance | 1,792,000 | ||||||
2013 Employee Stock Purchase Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Reserved shares of Common Stock | 930,000 | 930,000 | 1,005,000 | 1,000,000 | |||
Percentage of shares outstanding under Equity Award Plan | 1.00% | ||||||
Increase in common stock available for issuance | 358,000 | ||||||
Percentage of fair market value of common stock of lesser | 85.00% | ||||||
Number of shares reserved under Employee Stock Purchase Plan | 700,000 | 700,000 | |||||
Shares issued under 2013 ESPP | 105,000 | 90,000 | 105,000 | 90,000 | |||
Employee Stock Plan 2006 Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock options, vest period | 10 years | ||||||
Repurchase of common stock | 25,000 | 25,000 | 85,000 | ||||
Long-term liability | $ 275 | $ 275 | $ 826 |
Equity Award Plans - Summary of
Equity Award Plans - Summary of Activity under the 2006 Plan and 2013 Plan (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Shares, Options Outstanding, Balance | 6,376 | |
Number of Shares, Options Granted | 2,141 | |
Number of Shares, Options Exercised | (579) | |
Number of Shares, Options Forfeited and Cancelled | (1,538) | |
Number of Shares, Options Outstanding, Balance | 6,400 | 6,376 |
Number of Shares, Options Exercisable, Balance | 2,891 | |
Number of Shares, Options Vested, Balance | 2,708 | |
Number of Shares, Options Vested and Expected to Vest, Balance | 6,068 | |
Weighted Average Exercise Price, Options Outstanding, Balance | $ 7.99 | |
Weighted Average Exercise Price, Options granted | 5.99 | |
Weighted Average Exercise Price, Options exercised | 1.91 | |
Weighted Average Exercise Price, Options forfeited and cancelled | 8.87 | |
Weighted Average Exercise Price, Options Outstanding, Balance | 7.66 | $ 7.99 |
Weighted Average Exercise Price, Options exercisable, Balance | 7.65 | |
Weighted Average Exercise Price, Options vested, Balance | 7.49 | |
Weighted Average Exercise Price, Options vested and expected to vest, Balance | $ 7.67 | |
Weighted Average Remaining Contractual Term, Options Outstanding (in years) | 7 years 6 months 7 days | 7 years 9 months 26 days |
Weighted Average Remaining Contractual Term, Options granted (in years) | 7 years 9 months 26 days | |
Weighted Average Remaining Contractual Term, Options exercised (in years) | 0 years | |
Weighted Average Remaining Contractual Term, Options vested and expected to vest (in years) | 0 years | |
Weighted Average Remaining Contractual Term, Options exercisable (in years) | 5 years 6 months 22 days | |
Weighted Average Remaining Contractual Term, Options vested (in years) | 5 years 5 months 16 days | |
Weighted Average Remaining Contractual Term, Options vested and expected to vest (in years) | 7 years 5 months 5 days | |
Aggregate Intrinsic Value, Options Outstanding, Balance | $ 869 | $ 9,697 |
Aggregate Intrinsic Value, Options exercisable, Balance | 869 | |
Aggregate Intrinsic Value, Options vested, Balance | 869 | |
Aggregate Intrinsic Value, Options vested and expected, Balance | $ 869 |
Equity Award Plans - Summary 49
Equity Award Plans - Summary of RSUs Granted and Unvested under the 2013 Plan (Detail) shares in Thousands | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of RSUs, Granted and unvested, Beginning balance | shares | 769 |
Number of RSUs, granted | shares | 1,137 |
Number of RSUs, vested | shares | (121) |
Number of RSUs, forfeited | shares | (451) |
Number of RSUs, Granted and unvested, Ending balance | shares | 1,334 |
Weighted Average Fair Value Per Unit, Granted and unvested, Beginning balance | $ 9.36 |
Weighted Average Fair Value Per Unit, RSUs granted | 5.75 |
Weighted Average Fair Value Per Unit, RSUs vested | 10.04 |
Weighted Average Fair Value Per Unit, RSUs forfeited | 7.92 |
Weighted Average Fair Value Per Unit, Granted and unvested, Ending balance | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation related to equity awards and restricted stock | $ 3,606 | $ 2,916 | $ 12,040 | $ 6,353 |
Proceeds from exercise of common stock options | 1,107 | $ 1,977 | ||
Unrecognized compensation cost related to options | 11,710 | $ 11,710 | ||
Recognized weighted-average period | 2 years 8 months 12 days | |||
Restricted Stock and RSUs [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to restricted stock and RSUs | $ 13,273 | $ 13,273 | ||
Weighted-average period over which unrecognized compensation cost expected to be recognized | 2 years 1 month 6 days |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Estimate Fair Value of Options (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility | 44.30% | 51.30% | 49.20% | 51.30% |
Risk-free interest rate | 1.76% | 1.88% | 1.74% | 1.92% |
Expected life of options (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months | 6 years 3 months 4 days |
Forfeiture rate | 7.00% | 7.00% | 7.00% | 7.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
(Provision for) benefit from income taxes | $ (300,000) | $ (259,000) | $ (674,000) | $ 1,992,000 |
Pre-tax loss | 9,204,000 | $ 8,985,000 | 30,537,000 | 26,333,000 |
Decrease in valuation allowances | $ 2,603,000 | |||
Income tax benefit recognized with respect to losses incurred | 0 | |||
Income tax expense with respect to earnings | 0 | 0 | ||
Uncertain tax benefits gross | 1,581,000 | 1,581,000 | ||
Interest and penalties related to unrecognized tax benefits | $ 0 | $ 0 |
Net Loss Per Share Available 53
Net Loss Per Share Available to Common Stockholders - Calculation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net loss | $ (9,504) | $ (9,244) | $ (31,211) | $ (24,341) |
Denominator: | ||||
Weighted average number of shares, basic and diluted | 36,953 | 34,849 | 36,367 | 34,018 |
Net loss per share available to common stockholders | ||||
Basic and diluted net loss per common share available to common stockholders | $ (0.26) | $ (0.27) | $ (0.86) | $ (0.72) |
Net Loss Per Share Available 54
Net Loss Per Share Available to Common Stockholders - Potential Common Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potential common shares outstanding | 7,998 | 7,268 | 7,998 | 7,268 |
RSUs [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potential common shares outstanding | 1,334 | 355 | 1,334 | 355 |
Options to Purchase Common Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potential common shares outstanding | 6,400 | 6,204 | 6,400 | 6,204 |
Restricted Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potential common shares outstanding | 239 | 606 | 239 | 606 |
Common Stock Subject to Repurchase [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potential common shares outstanding | 25 | 103 | 25 | 103 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Geographic Area, Based on Billing Location of Customer and Long-Lived Assets, by Geographical Areas (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Total revenues, net | $ 26,327 | $ 25,684 | $ 79,515 | $ 72,353 | ||
Total long-lived assets, net | 22,867 | 22,867 | $ 16,274 | [1] | ||
United States of America [Member] | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Total revenues, net | 18,123 | 16,839 | 53,333 | 47,519 | ||
Total long-lived assets, net | 21,788 | 21,788 | 15,701 | |||
International [Member] | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Total revenues, net | 8,204 | $ 8,845 | 26,182 | $ 24,834 | ||
Total long-lived assets, net | $ 1,079 | $ 1,079 | $ 573 | |||
[1] | Derived from our audited consolidated financial statements as of December 31, 2014. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |||||
Rent expense | $ 2,279 | $ 1,856 | $ 6,496 | $ 5,645 | |
Liabilities obligations | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies58
Commitments and Contingencies - Annual Future Minimum Payments under Operating Leases (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining three months of 2015 | $ 1,937 |
Year ending December 31, 2016 | 7,732 |
Year ending December 31, 2017 | 7,427 |
Year ending December 31, 2018 | 4,503 |
Year ending December 31, 2019 and thereafter | 13,752 |
Future minimum lease payments for significant operating leases | $ 35,351 |