Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MRIN | |
Entity Registrant Name | MARIN SOFTWARE INC | |
Entity Central Index Key | 1,389,002 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 39,421,440 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | [1] |
Current assets | |||
Cash and cash equivalents | $ 32,999 | $ 34,420 | |
Restricted cash | 1,293 | 1,293 | |
Accounts receivable, net | 15,929 | 18,761 | |
Prepaid expenses and other current assets | 5,233 | 3,808 | |
Total current assets | 55,454 | 58,282 | |
Property and equipment, net | 19,175 | 20,581 | |
Goodwill | 19,342 | 19,318 | |
Intangible assets, net | 6,595 | 7,325 | |
Other noncurrent assets | 1,587 | 1,587 | |
Total assets | 102,153 | 107,093 | |
Current liabilities | |||
Accounts payable | 2,389 | 2,434 | |
Accrued expenses and other current liabilities | 7,801 | 8,362 | |
Deferred revenues | 961 | 795 | |
Current portion of long-term debt | 1,029 | 1,015 | |
Total current liabilities | 12,180 | 12,606 | |
Long-term debt, less current portion | 2,125 | 2,381 | |
Other long-term liabilities | 4,447 | 4,508 | |
Total liabilities | 18,752 | 19,495 | |
Commitments and contingencies (Note 11) | |||
Stockholders’ equity | |||
Common stock, $0.001 par value - 500,000 shares authorized, 39,421 and 38,792 shares issued, 39,416 and 38,787 outstanding at March 31, 2017 and December 31, 2016, respectively | 39 | 39 | |
Additional paid-in capital | 288,369 | 286,659 | |
Accumulated deficit | (202,339) | (196,213) | |
Accumulated other comprehensive loss | (2,668) | (2,887) | |
Total stockholders’ equity | 83,401 | 87,598 | |
Total liabilities and stockholders’ equity | $ 102,153 | $ 107,093 | |
[1] | Derived from our audited consolidated financial statements as of December 31, 2016. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
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 | 39,421,000 | 38,792,000 |
Common stock, shares outstanding | 39,416,000 | 38,787,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues, net | $ 20,333 | $ 27,188 |
Cost of revenues | 8,324 | 9,190 |
Gross profit | 12,009 | 17,998 |
Operating expenses | ||
Sales and marketing | 6,676 | 9,107 |
Research and development | 7,138 | 8,009 |
General and administrative | 4,177 | 4,969 |
Total operating expenses | 17,991 | 22,085 |
Loss from operations | (5,982) | (4,087) |
Interest expense, net | (37) | (18) |
Other income, net | 299 | 33 |
Loss before provision for income taxes | (5,720) | (4,072) |
Provision for income taxes | (406) | (341) |
Net loss | (6,126) | (4,413) |
Foreign currency translation adjustments | 219 | 425 |
Comprehensive loss | $ (5,907) | $ (3,988) |
Net loss per share available to common stockholders, basic and diluted | $ (0.16) | $ (0.12) |
Weighted-average shares used to compute net loss per share available to common stockholders, basic and diluted | 39,081 | 37,767 |
Amortization of intangible assets is allocated as follows (Note 3): | ||
Amortization of intangible assets | $ 730 | $ 826 |
Cost of Revenues [Member] | ||
Stock-based compensation expense is allocated as follows (Note 7): | ||
Allocation of stock-based compensation | 311 | 421 |
Amortization of intangible assets is allocated as follows (Note 3): | ||
Amortization of intangible assets | 247 | 271 |
Sales and Marketing [Member] | ||
Stock-based compensation expense is allocated as follows (Note 7): | ||
Allocation of stock-based compensation | 212 | 499 |
Amortization of intangible assets is allocated as follows (Note 3): | ||
Amortization of intangible assets | 223 | 248 |
Research and Development [Member] | ||
Stock-based compensation expense is allocated as follows (Note 7): | ||
Allocation of stock-based compensation | 996 | 2,022 |
Amortization of intangible assets is allocated as follows (Note 3): | ||
Amortization of intangible assets | 247 | 271 |
General and Administrative [Member] | ||
Stock-based compensation expense is allocated as follows (Note 7): | ||
Allocation of stock-based compensation | 323 | 880 |
Amortization of intangible assets is allocated as follows (Note 3): | ||
Amortization of intangible assets | $ 13 | $ 36 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities | ||
Net loss | $ (6,126) | $ (4,413) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||
Depreciation | 1,336 | 1,665 |
Amortization of internally developed software | 788 | 681 |
Amortization of intangible assets | 730 | 826 |
(Gain) loss on disposal of property and equipment | (1) | 1 |
Unrealized foreign currency (gains) losses | (12) | 7 |
Noncash interest expense related to debt agreements | 6 | 7 |
Stock-based compensation related to equity awards and restricted stock | 1,842 | 3,822 |
Provision for bad debts | 416 | 195 |
Deferred income tax benefits | 18 | 0 |
Payment of contingent consideration for prior acquisition | 0 | (93) |
Changes in operating assets and liabilities | ||
Accounts receivable | 2,439 | (2,204) |
Prepaid expenses and other current assets | (1,418) | 0 |
Other assets | 1 | (6) |
Accounts payable | (49) | (331) |
Deferred revenues | 167 | 122 |
Accrued expenses and other current liabilities | (915) | 323 |
Net cash (used in) provided by operating activities | (778) | 602 |
Investing activities | ||
Purchases of property and equipment | (169) | (267) |
Proceeds from disposal of property and equipment | 1 | 0 |
Capitalization of internally developed software | (543) | (1,493) |
Net cash used in investing activities | (711) | (1,760) |
Financing activities | ||
Repayment of notes payable | (249) | (646) |
Proceeds from exercise of common stock options | 0 | 162 |
Proceeds from employee stock purchase plan, net | 136 | 384 |
Net cash used in financing activities | (113) | (100) |
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash | 181 | 169 |
Net decrease in cash and cash equivalents and restricted cash | (1,421) | (1,089) |
Beginning of period | 35,713 | 37,326 |
End of period | 34,292 | 36,237 |
Supplemental disclosure of noncash investing and financing activities | ||
Purchases of property and equipment recorded in accounts payable and accrued expenses | $ 12 | $ 4 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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, cross-device, enterprise marketing software platform for search, display and social advertising channels, offered as an integrated software-as-a-service, or SaaS, solution for advertisers and agencies. 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: Austin, Chicago, Dublin, Hamburg, London, New York, Paris, Portland, Shanghai, Sydney and Tokyo. 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 United States generally accepted accounting principles (“GAAP”) 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. Necessary reclassifications are made in prior periods’ financial statements whenever appropriate to conform to the most current presentation. The results of operations for the three months ended March 31, 2017, are not necessarily indicative of the results to be expected for the year ending December 31, 2017, 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 intercompany accounts and transactions have been eliminated on consolidation. The condensed consolidated balance sheet as of December 31, 2016, is derived from audited financial statements as of that date but does not include all of the information and footnotes required by GAAP 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, 2016 filed with the Securities and Exchange Commission (“SEC”) on February 28, 2017. Amounts are shown in thousands unless otherwise indicated. Fair Value Measurements 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, and in consideration of the Company’s credit risk profile, the carrying value of borrowings (Note 4) approximates fair value (level 2 within the fair value hierarchy). Cash equivalents consist of money market funds, which are readily convertible into cash and have original maturity dates of less than three months from the date of their respective purchases. These money market funds presented as cash equivalents on the consolidated balance sheets are classified as level 1 within the fair value hierarchy, and totaled $11,688 and $15,657 as of March 31, 2017 and December 31, 2016, respectively. Allowances 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 historically 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. As of March 31, 2017 and December 31, 2016, the Company recorded an allowance for doubtful accounts in the amount of $3,597 and $3,510, respectively. From time to time, the Company provides credits to customers and an allowance is made based on historical credit activity. As of March 31, 2017, and December 31, 2016, the Company recorded an allowance for potential customer credits in the amount of $1,759 and $1,947, respectively. Goodwill and Intangible Assets 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. The Company evaluates goodwill for impairment in the fourth quarter annually, or more frequently if events or changes in circumstances indicate that these assets may be impaired. Because the Company operates its business in one reporting unit, the goodwill is tested for impairment at the enterprise level. No goodwill impairment has been identified in any of the periods presented. During the fourth quarter of 2016 and continuing into the first quarter of 2017, the market capitalization of the Company’s common stock sustained a decline to the extent that it fell below the book value of the Company’s net assets. Management considered the possible factors affecting the assessment of the fair value of the Company’s reporting unit for the purposes of performing a goodwill impairment assessment, including management assumptions about expected future revenue forecasts and discount rates, changes in the overall economy, trends in the stock price, any estimated control premium and other operating conditions. Ultimately, management determined that no goodwill impairment was identified in any of the periods presented. 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, social and display advertising. The Company’s direct search 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 March 31, 2017, 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 enterprise marketing software 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, indirect overhead, amortization expense associated with capitalized internally developed software and intangible assets and property and equipment depreciation. Recent Accounting Pronouncements Adopted in 2017 In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting Recent Accounting Pronouncements Not Yet Effective In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Accounting for Goodwill Impairment In February 2016, the FASB issued ASU 2016-02, Leases most leases on the balance sheet as lease assets and lease liabilities, as well as both quantitative and qualitative disclosures regarding key information about leasing arrangements. This new standard is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on the consolidated financial statements, as well as the expected adoption method. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, this new guidance will require significantly expanded disclosures about revenue recognition. This guidance will be effective for fiscal years and interim periods within those years beginning after December 15, 2017, and early adoption is permitted. The Company expects to adopt the new guidance on January 1, 2018 using the modified retrospective approach, which would result in an adjustment to accumulated deficit for the cumulative effect, if any, of applying this standard to contracts in process as of the adoption date. Under this approach, the Company would not restate the prior financial statements presented, but would provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period during 2018 as a result of applying the new revenue standard and qualitative explanation of the significant changes between the reported results under the revenue standard and the previous guidance, if any. The Company has conducted an initial assessment to identify the potential impact this standard will have on its consolidated financial statements and related disclosures, but cannot reasonably estimate the quantitative impact of this standard at this time. The Company currently expects to identify performance obligations under the new standard comparable to the deliverables and units of accounts identified under previous guidance. In addition, the new standard may impact the timing of recognition for some contract costs, including sales commissions, which may be required to be capitalized and amortized if they are associated with a contract with an expected term that is greater than one year. Currently, the Company’s policy is to expense these costs as incurred. The Company continues to assess all potential impacts of the guidance and, given ongoing business dynamics, preliminary conclusions are subject to change. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 2. Balance Sheet Components The following table shows the components of property and equipment as of the dates presented: March 31, December 31, 2017 2016 Computer equipment $ 28,885 $ 28,905 Software 21,864 21,323 Office equipment 950 951 Furniture, fixtures and leasehold improvements 5,947 5,946 57,646 57,125 Less: Accumulated depreciation and amortization (38,471 ) (36,544 ) $ 19,175 $ 20,581 Depreciation and amortization of internally developed software for the three months ended March 31, 2017 and 2016 was $2,124 and 2,346, respectively. The following table shows the components of accrued expenses and other current liabilities as of the dates presented: March 31, December 31, 2017 2016 Accrued salary and payroll related expenses $ 3,279 $ 3,894 Accrued accounts payable 2,037 1,915 Customer advances 1,506 1,582 Sales and use tax payable 223 210 Other 756 761 $ 7,801 $ 8,362 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets The goodwill activity for the three months ended March 31, 2017 consisted of the following: Balance at December 31, 2016 $ 19,318 Foreign currency translation adjustments 24 Balance at March 31, 2017 $ 19,342 Intangible assets consisted of the following as of the dates presented (in thousands, except years): March 31, December 31, Estimated 2017 2016 Useful Life Developed technology $ 9,910 $ 9,910 5 - 6 years Customer relationships 3,370 3,370 4 years Non-compete agreements and tradenames 1,390 1,390 2 - 3 years 14,670 14,670 Less: accumulated amortization (8,075 ) (7,345 ) $ 6,595 $ 7,325 Amortization expense was $730 and $826 for the three months ended March 31, 2017 and 2016, respectively. Future estimated amortization of intangible assets as of March 31, 2017, is presented below: Remaining nine months of 2017 $ 2,120 Year ending December 31, 2018 2,537 Year ending December 31, 2019 1,843 Year ending December 31, 2020 95 $ 6,595 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 4. Debt Capital Lease Arrangements Since 2013, the Company has entered into capital lease arrangements with an equipment manufacturer to finance acquisitions of computer equipment. These leases have effective annual interest rates ranging from 5.2% to 5.7%, and carry terms of 48 months. At the end of the lease periods, the Company has the option to purchase the underlying equipment at the estimated fair market value, or for a nominal amount in some cases. As of March 31, 2017 and December 31, 2016, the net book value of the equipment under these capital leases was $2,895 and $3,158, respectively, and the remaining principal balance payable was $3,162 and $3,411, respectively. The maturities of all outstanding debt, consisting of the capital lease arrangements, as of March 31, 2017, are as follows: Year ending 2017 $ 853 2018 1,078 2019 886 2020 345 3,162 Less: Current portion (1,029 ) Discount on long-term debt (8 ) Non-current portion of debt $ 2,125 Revolving Credit Facility In December 2016, the Company terminated its existing revolving credit facility with Silicon Valley Bank. No amounts were outstanding pursuant to the revolving credit facility at the date of termination. |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Common Stock | 5. Common Stock As of March 31, 2017, and December 31, 2016, 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: March 31, December 31, 2017 2016 Options or restricted stock units (RSUs) available for future grant under stock option plans 8,594 5,875 Options outstanding under stock option plans 3,259 3,749 RSUs outstanding under stock option plans 2,544 3,003 Shares available for future issuance under employee stock purchase plan 1,578 1,190 Shares to be issued in connection with acquisition of SocialMoov — 464 15,975 14,281 |
Equity Award Plans
Equity Award Plans | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Award Plans | 6. 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 Board. The term of options granted under the 2006 Plan may not exceed 10 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 three shares of common stock as of March 31, 2017 and December 31, 2016, respectively. The Company records cash received from the exercise of unvested stock options as a long-term liability, as well as the fair value of vested outstanding options to non-employee consultants. As of March 31, 2017 and December 31, 2016, $13 and $41, respectively, has been recorded as a long-term liability on the accompanying unaudited condensed consolidated balance sheets. 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 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 10 calendar years through 2023, the number of shares of common stock reserved under the 2013 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 Board. Pursuant to terms of the 2013 Plan, the shares available for issuance increased by approximately 1,940 shares of common stock on January 1, 2017. Stock Options A summary of stock option activity under the 2006 Plan and 2013 Plan is as follows (in thousands except per share amounts and contractual terms): Options Outstanding Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Balances at December 31, 2016 3,749 $ 6.26 7.48 $ 194 Options forfeited and cancelled (490 ) 5.60 — Balances at March 31, 2017 3,259 $ 6.36 6.35 $ 57 Options exercisable 2,173 $ 7.67 5.11 $ 57 Options vested 2,171 $ 7.67 5.11 $ 57 Options vested and expected to vest 3,200 $ 6.41 6.30 $ 57 RSUs A summary of RSUs granted and unvested under the 2013 Plan is as follows: RSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value Per Unit Granted and unvested at December 31, 2016 3,003 $ 3.07 RSUs granted 328 1.81 RSUs vested (165 ) 4.20 RSUs cancelled and withheld to cover taxes (622 ) 3.01 Granted and unvested at March 31, 2017 2,544 $ 2.85 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 ESPP will be 85% of the lesser of the fair market value of the common stock on (1) the first trading day of the applicable offering period and (2) 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 ESPP 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 388 shares on January 1, 2017. During the three months ended March 31, 2017 and 2016, no shares were issued under the 2013 ESPP. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 7. 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 expense of $1,842 and $3,822 for the three months ended March 31, 2017 and 2016, 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. As there were no stock options granted during the three months ended March 31, 2017, it was not necessary to update these assumptions for the purposes of calculating stock-based compensation expense for the period. For historical stock option grants, because 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 No. 110, the Company will continue to use 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 zero and $162 during the three months ended March 31, 2017 and 2016, respectively. Compensation expense is recognized ratably over the requisite service period. As of March 31, 2017, there was $ 1,440 Restricted Stock and RSUs As of March 31, 2017, there was $ 5,889 2.3 Employee Stock Purchase Plan The Company estimates the fair value of purchase rights under the 2013 ESPP using the Black-Scholes valuation model. The fair value of each purchase right under the 2013 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 | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. 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 months ended March 31, 2017 and 2016 was $406 and $341, respectively, on pre-tax losses of $5,720 and $4,072, respectively. As of March 31, 2017, the income tax rate varies from the U.S. 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 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. Tax positions taken by the Company are subject to audits by multiple tax jurisdictions. The Company accounts for uncertain tax positions and believes that it has provided adequate reserves for its unrecognized tax benefits for all tax years still open for assessment. The Company also believes that it does not have any tax position for which it is not reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next year. There were no interest or penalties associated with uncertain tax positions included within the income tax expense balance for the three months ended March 31, 2017 and 2016. |
Net Loss Per Share Available to
Net Loss Per Share Available to Common Stockholders | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Available to Common Stockholders | 9. 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 March 31, 2017 2016 Numerator: Net loss available to common stockholders $ (6,126 ) $ (4,413 ) Denominator: Weighted average number of shares, basic and diluted 39,081 37,767 Net loss per share available to common stockholders Basic and diluted net loss per common share available to common stockholders $ (0.16 ) $ (0.12 ) 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 Months Ended March 31, 2017 2016 Options to purchase common stock 3,259 6,161 RSUs 2,544 2,217 Restricted common stock issued 1 66 Common stock subject to repurchase 3 8 Total 5,807 8,452 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | 10. 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 March 31, 2017 2016 United States of America $ 13,612 $ 18,740 International 6,721 8,448 Total revenues, net $ 20,333 $ 27,188 Long-lived assets, excluding goodwill and intangible assets, by geographic area were as follows for the periods presented: March 31, December 31, 2017 2016 United States of America $ 18,530 $ 19,861 International 645 720 Total long-lived assets, net $ 19,175 $ 20,581 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Operating Leases Rent expense for the three months ended March 31, 2017 and 2016 was $2,080 and $2,168, respectively. Future minimum lease payments for significant operating leases, net of sublease payments from a portion of the Company’s San Francisco and Portland office spaces, as of March 31, 2017, were as follows: Remaining nine months of 2017 $ 4,562 Year ending December 31, 2018 4,442 Year ending December 31, 2019 4,016 Year ending December 31, 2020 3,338 Year ending December 31, 2021 and thereafter 5,994 $ 22,352 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 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 sheet as of March 31, 2017 and audited consolidated balance sheet as of December 31, 2016. 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 as of March 31, 2017 and December 31, 2016. 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 Signi17
Summary of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
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 United States generally accepted accounting principles (“GAAP”) 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. Necessary reclassifications are made in prior periods’ financial statements whenever appropriate to conform to the most current presentation. The results of operations for the three months ended March 31, 2017, are not necessarily indicative of the results to be expected for the year ending December 31, 2017, 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 intercompany accounts and transactions have been eliminated on consolidation. The condensed consolidated balance sheet as of December 31, 2016, is derived from audited financial statements as of that date but does not include all of the information and footnotes required by GAAP 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, 2016 filed with the Securities and Exchange Commission (“SEC”) on February 28, 2017. Amounts are shown in thousands unless otherwise indicated. |
Fair Value Measurements | Fair Value Measurements 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, and in consideration of the Company’s credit risk profile, the carrying value of borrowings (Note 4) approximates fair value (level 2 within the fair value hierarchy). Cash equivalents consist of money market funds, which are readily convertible into cash and have original maturity dates of less than three months from the date of their respective purchases. These money market funds presented as cash equivalents on the consolidated balance sheets are classified as level 1 within the fair value hierarchy, and totaled $11,688 and $15,657 as of March 31, 2017 and December 31, 2016, respectively. |
Allowances for Doubtful Accounts and Revenue Credits | Allowances 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 historically 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. As of March 31, 2017 and December 31, 2016, the Company recorded an allowance for doubtful accounts in the amount of $3,597 and $3,510, respectively. From time to time, the Company provides credits to customers and an allowance is made based on historical credit activity. As of March 31, 2017, and December 31, 2016, the Company recorded an allowance for potential customer credits in the amount of $1,759 and $1,947, respectively. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets 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. The Company evaluates goodwill for impairment in the fourth quarter annually, or more frequently if events or changes in circumstances indicate that these assets may be impaired. Because the Company operates its business in one reporting unit, the goodwill is tested for impairment at the enterprise level. No goodwill impairment has been identified in any of the periods presented. During the fourth quarter of 2016 and continuing into the first quarter of 2017, the market capitalization of the Company’s common stock sustained a decline to the extent that it fell below the book value of the Company’s net assets. Management considered the possible factors affecting the assessment of the fair value of the Company’s reporting unit for the purposes of performing a goodwill impairment assessment, including management assumptions about expected future revenue forecasts and discount rates, changes in the overall economy, trends in the stock price, any estimated control premium and other operating conditions. Ultimately, management determined that no goodwill impairment was identified in any of the periods presented. |
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, social and display advertising. The Company’s direct search 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 March 31, 2017, 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 enterprise marketing software 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, indirect overhead, amortization expense associated with capitalized internally developed software and intangible assets and property and equipment depreciation. |
Recent Accounting Pronouncements Adopted in 2017 | Recent Accounting Pronouncements Adopted in 2017 In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting |
Recent Accounting Pronouncements Not Yet Effective | Recent Accounting Pronouncements Not Yet Effective In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Accounting for Goodwill Impairment In February 2016, the FASB issued ASU 2016-02, Leases most leases on the balance sheet as lease assets and lease liabilities, as well as both quantitative and qualitative disclosures regarding key information about leasing arrangements. This new standard is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on the consolidated financial statements, as well as the expected adoption method. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. Additionally, this new guidance will require significantly expanded disclosures about revenue recognition. This guidance will be effective for fiscal years and interim periods within those years beginning after December 15, 2017, and early adoption is permitted. The Company expects to adopt the new guidance on January 1, 2018 using the modified retrospective approach, which would result in an adjustment to accumulated deficit for the cumulative effect, if any, of applying this standard to contracts in process as of the adoption date. Under this approach, the Company would not restate the prior financial statements presented, but would provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period during 2018 as a result of applying the new revenue standard and qualitative explanation of the significant changes between the reported results under the revenue standard and the previous guidance, if any. The Company has conducted an initial assessment to identify the potential impact this standard will have on its consolidated financial statements and related disclosures, but cannot reasonably estimate the quantitative impact of this standard at this time. The Company currently expects to identify performance obligations under the new standard comparable to the deliverables and units of accounts identified under previous guidance. In addition, the new standard may impact the timing of recognition for some contract costs, including sales commissions, which may be required to be capitalized and amortized if they are associated with a contract with an expected term that is greater than one year. Currently, the Company’s policy is to expense these costs as incurred. The Company continues to assess all potential impacts of the guidance and, given ongoing business dynamics, preliminary conclusions are subject to change. |
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 expense of $1,842 and $3,822 for the three months ended March 31, 2017 and 2016, 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. As there were no stock options granted during the three months ended March 31, 2017, it was not necessary to update these assumptions for the purposes of calculating stock-based compensation expense for the period. For historical stock option grants, because 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 No. 110, the Company will continue to use 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 zero and $162 during the three months ended March 31, 2017 and 2016, respectively. Compensation expense is recognized ratably over the requisite service period. As of March 31, 2017, there was $ 1,440 Restricted Stock and RSUs As of March 31, 2017, there was $ 5,889 2.3 Employee Stock Purchase Plan The Company estimates the fair value of purchase rights under the 2013 ESPP using the Black-Scholes valuation model. The fair value of each purchase right under the 2013 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 | 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 months ended March 31, 2017 and 2016 was $406 and $341, respectively, on pre-tax losses of $5,720 and $4,072, respectively. As of March 31, 2017, the income tax rate varies from the U.S. 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 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. Tax positions taken by the Company are subject to audits by multiple tax jurisdictions. The Company accounts for uncertain tax positions and believes that it has provided adequate reserves for its unrecognized tax benefits for all tax years still open for assessment. The Company also believes that it does not have any tax position for which it is not reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next year. There were no interest or penalties associated with uncertain tax positions included within the income tax expense balance for the three months ended March 31, 2017 and 2016. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, December 31, 2017 2016 Computer equipment $ 28,885 $ 28,905 Software 21,864 21,323 Office equipment 950 951 Furniture, fixtures and leasehold improvements 5,947 5,946 57,646 57,125 Less: Accumulated depreciation and amortization (38,471 ) (36,544 ) $ 19,175 $ 20,581 |
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: March 31, December 31, 2017 2016 Accrued salary and payroll related expenses $ 3,279 $ 3,894 Accrued accounts payable 2,037 1,915 Customer advances 1,506 1,582 Sales and use tax payable 223 210 Other 756 761 $ 7,801 $ 8,362 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The goodwill activity for the three months ended March 31, 2017 consisted of the following: Balance at December 31, 2016 $ 19,318 Foreign currency translation adjustments 24 Balance at March 31, 2017 $ 19,342 |
Schedule of Intangible Assets | Intangible assets consisted of the following as of the dates presented (in thousands, except years): March 31, December 31, Estimated 2017 2016 Useful Life Developed technology $ 9,910 $ 9,910 5 - 6 years Customer relationships 3,370 3,370 4 years Non-compete agreements and tradenames 1,390 1,390 2 - 3 years 14,670 14,670 Less: accumulated amortization (8,075 ) (7,345 ) $ 6,595 $ 7,325 |
Schedule of Future Estimated Amortization Costs of Intangible Assets | Future estimated amortization of intangible assets as of March 31, 2017, is presented below: Remaining nine months of 2017 $ 2,120 Year ending December 31, 2018 2,537 Year ending December 31, 2019 1,843 Year ending December 31, 2020 95 $ 6,595 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Maturities of Outstanding Debt | The maturities of all outstanding debt, consisting of the capital lease arrangements, as of March 31, 2017, are as follows: Year ending 2017 $ 853 2018 1,078 2019 886 2020 345 3,162 Less: Current portion (1,029 ) Discount on long-term debt (8 ) Non-current portion of debt $ 2,125 |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Reserved Shares of Common Stock | As of March 31, 2017, and December 31, 2016, 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: March 31, December 31, 2017 2016 Options or restricted stock units (RSUs) available for future grant under stock option plans 8,594 5,875 Options outstanding under stock option plans 3,259 3,749 RSUs outstanding under stock option plans 2,544 3,003 Shares available for future issuance under employee stock purchase plan 1,578 1,190 Shares to be issued in connection with acquisition of SocialMoov — 464 15,975 14,281 |
Equity Award Plans (Tables)
Equity Award Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 (in thousands except per share amounts and contractual terms): Options Outstanding Number of Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value Balances at December 31, 2016 3,749 $ 6.26 7.48 $ 194 Options forfeited and cancelled (490 ) 5.60 — Balances at March 31, 2017 3,259 $ 6.36 6.35 $ 57 Options exercisable 2,173 $ 7.67 5.11 $ 57 Options vested 2,171 $ 7.67 5.11 $ 57 Options vested and expected to vest 3,200 $ 6.41 6.30 $ 57 |
Summary of RSUs Granted and Unvested under the 2013 Plan | A summary of RSUs granted and unvested under the 2013 Plan is as follows: RSUs Outstanding Number of Shares Weighted Average Grant Date Fair Value Per Unit Granted and unvested at December 31, 2016 3,003 $ 3.07 RSUs granted 328 1.81 RSUs vested (165 ) 4.20 RSUs cancelled and withheld to cover taxes (622 ) 3.01 Granted and unvested at March 31, 2017 2,544 $ 2.85 |
Net Loss Per Share Available 23
Net Loss Per Share Available to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 2016 Numerator: Net loss available to common stockholders $ (6,126 ) $ (4,413 ) Denominator: Weighted average number of shares, basic and diluted 39,081 37,767 Net loss per share available to common stockholders Basic and diluted net loss per common share available to common stockholders $ (0.16 ) $ (0.12 ) |
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 Months Ended March 31, 2017 2016 Options to purchase common stock 3,259 6,161 RSUs 2,544 2,217 Restricted common stock issued 1 66 Common stock subject to repurchase 3 8 Total 5,807 8,452 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 2016 United States of America $ 13,612 $ 18,740 International 6,721 8,448 Total revenues, net $ 20,333 $ 27,188 Long-lived assets, excluding goodwill and intangible assets, by geographic area were as follows for the periods presented: March 31, December 31, 2017 2016 United States of America $ 18,530 $ 19,861 International 645 720 Total long-lived assets, net $ 19,175 $ 20,581 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Annual Future Minimum Payments under Operating Leases | Future minimum lease payments for significant operating leases, net of sublease payments from a portion of the Company’s San Francisco and Portland office spaces, as of March 31, 2017, were as follows: Remaining nine months of 2017 $ 4,562 Year ending December 31, 2018 4,442 Year ending December 31, 2019 4,016 Year ending December 31, 2020 3,338 Year ending December 31, 2021 and thereafter 5,994 $ 22,352 |
Summary of Business and Signi26
Summary of Business and Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Incorporation date | Mar. 31, 2006 | ||
Allowance for doubtful accounts | $ 3,597,000 | $ 3,510,000 | |
Allowance for potential customer credits | 1,759,000 | 1,947,000 | |
Goodwill impairment | 0 | $ 0 | |
ASU 2016-09 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Increase in valuation allowance | $ 1,423,000 | ||
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 | ||
Money Market Funds [Member] | Level 1 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cash equivalents - money market funds | $ 11,688,000 | $ 15,657,000 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 57,646 | $ 57,125 | |
Less: Accumulated depreciation and amortization | (38,471) | (36,544) | |
Property and equipment, net | 19,175 | 20,581 | [1] |
Computer Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 28,885 | 28,905 | |
Software [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 21,864 | 21,323 | |
Office Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | 950 | 951 | |
Furniture, Fixtures and Leasehold Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, gross | $ 5,947 | $ 5,946 | |
[1] | Derived from our audited consolidated financial statements as of December 31, 2016. |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Depreciation and amortization of internally developed software | $ 2,124 | $ 2,346 |
Balance Sheet Components - Co29
Balance Sheet Components - Components of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Accrued Liabilities And Other Liabilities [Abstract] | |||
Accrued salary and payroll related expenses | $ 3,279 | $ 3,894 | |
Accrued accounts payable | 2,037 | 1,915 | |
Customer advances | 1,506 | 1,582 | |
Sales and use tax payable | 223 | 210 | |
Other | 756 | 761 | |
Accrued expenses and other current liabilities | $ 7,801 | $ 8,362 | [1] |
[1] | Derived from our audited consolidated financial statements as of December 31, 2016. |
Goodwill and Intangible Asset30
Goodwill and Intangible Assets - Schedule of Goodwill (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($) | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Balance at December 31, 2016 | $ 19,318 | [1] |
Foreign currency translation adjustments | 24 | |
Balance at March 31, 2017 | $ 19,342 | |
[1] | Derived from our audited consolidated financial statements as of December 31, 2016. |
Goodwill and Intangible Asset31
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | ||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 14,670 | $ 14,670 | |
Less: accumulated amortization | (8,075) | (7,345) | |
Intangible assets, net | $ 6,595 | 7,325 | [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 | 9,910 | |
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 | 3,370 | |
Intangible assets amortized useful lives | 4 years | ||
Non-compete agreements and tradename [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | $ 1,390 | $ 1,390 | |
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, 2016. |
Goodwill and Intangible Asset32
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 730 | $ 826 |
Goodwill and Intangible Asset33
Goodwill and Intangible Assets - Schedule of Future Estimated Amortization Costs of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | [1] |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Remaining nine months of 2017 | $ 2,120 | ||
Year ending December 31, 2018 | 2,537 | ||
Year ending December 31, 2019 | 1,843 | ||
Year ending December 31, 2020 | 95 | ||
Intangible assets, net | $ 6,595 | $ 7,325 | |
[1] | Derived from our audited consolidated financial statements as of December 31, 2016. |
Debt - Additional Information (
Debt - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2017USD ($)Installment | Dec. 31, 2016USD ($) | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility, amount outstanding | $ 0 | |
Line of credit facility termination month and year | 2016-12 | |
Capital Lease for Acquisition of Computer Equipment [Member] | ||
Line of Credit Facility [Line Items] | ||
Number of monthly installments | Installment | 48 | |
Net book value of equipment under capital leases | $ 2,895,000 | 3,158,000 |
Remaining principal balance payable | $ 3,162,000 | $ 3,411,000 |
Capital Lease for Acquisition of Computer Equipment [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Effective annual interest rate | 5.20% | |
Capital Lease for Acquisition of Computer Equipment [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Effective annual interest rate | 5.70% |
Debt - Maturities of Outstandin
Debt - Maturities of Outstanding Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | [1] |
Debt Disclosure [Abstract] | |||
2,017 | $ 853 | ||
2,018 | 1,078 | ||
2,019 | 886 | ||
2,020 | 345 | ||
Total | 3,162 | ||
Current portion | (1,029) | $ (1,015) | |
Discount on long-term debt | (8) | ||
Non-current portion of debt | $ 2,125 | $ 2,381 | |
[1] | Derived from our audited consolidated financial statements as of December 31, 2016. |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
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 | Mar. 31, 2017 | Dec. 31, 2016 | Feb. 28, 2013 |
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 15,975 | 14,281 | |
Shares Available for Future Issuance under Employee Stock Purchase Plan [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 1,578 | 1,190 | 1,000 |
RSUs [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 2,544 | 3,003 | |
Options Outstanding [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 3,259 | 3,749 | |
Shares to be Issued in Connection with Acquisition of SocialMoov [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 0 | 464 | |
Options or Restricted Stock Units (RSUs) Available for Future Grant [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 8,594 | 5,875 |
Equity Award Plans - Additional
Equity Award Plans - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Feb. 28, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Reserved shares of Common Stock | 15,975,000 | 14,281,000 | |||
2013 Employee Stock Purchase Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Reserved shares of Common Stock | 1,578,000 | 1,190,000 | 1,000,000 | ||
Percentage of shares outstanding under Equity Award Plan | 1.00% | ||||
Increase in common stock available for issuance | 388,000 | ||||
Percentage of fair market value of common stock of lesser | 85.00% | ||||
Number of shares reserved under Employee Stock Purchase Plan | 700,000 | ||||
Shares issued under 2013 ESPP | 0 | 0 | |||
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 | 3,000 | 3,000 | |||
Long-term liability | $ 13 | $ 41 | |||
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 | 1,940,000 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Shares, Options Outstanding, Balance | 3,749 | |
Number of Shares, Options Forfeited and Cancelled | (490) | |
Number of Shares, Options Outstanding, Balance | 3,259 | 3,749 |
Number of Shares, Options Exercisable, Balance | 2,173 | |
Number of Shares, Options Vested, Balance | 2,171 | |
Number of Shares, Options Vested and Expected to Vest, Balance | 3,200 | |
Weighted Average Exercise Price Per Share, Options Outstanding, Balance | $ 6.26 | |
Weighted Average Exercise Price Per Share, Options forfeited and cancelled | 5.60 | |
Weighted Average Exercise Price Per Share, Options Outstanding, Balance | 6.36 | $ 6.26 |
Weighted Average Exercise Price Per Share, Options exercisable, Balance | 7.67 | |
Weighted Average Exercise Price Per Share, Options vested, Balance | 7.67 | |
Weighted Average Exercise Price Per Share, Options vested and expected to vest, Balance | $ 6.41 | |
Weighted Average Remaining Contractual Term, Options Outstanding (in years) | 6 years 4 months 6 days | 7 years 5 months 23 days |
Weighted Average Remaining Contractual Term, Options forfeited and cancelled (in years) | 0 years | |
Weighted Average Remaining Contractual Term, Options exercisable (in years) | 5 years 1 month 10 days | |
Weighted Average Remaining Contractual Term, Options vested (in years) | 5 years 1 month 10 days | |
Weighted Average Remaining Contractual Term, Options vested and expected to vest (in years) | 6 years 3 months 18 days | |
Aggregate Intrinsic Value, Options Outstanding, Balance | $ 57 | $ 194 |
Aggregate Intrinsic Value, Options exercisable, Balance | 57 | |
Aggregate Intrinsic Value, Options vested, Balance | 57 | |
Aggregate Intrinsic Value, Options vested and expected to vest, Balance | $ 57 |
Equity Award Plans - Summary 40
Equity Award Plans - Summary of RSUs Granted and Unvested under the 2013 Plan (Detail) shares in Thousands | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of RSUs, Granted and unvested, Beginning balance | shares | 3,003 |
Number of RSUs, granted | shares | 328 |
Number of RSUs, vested | shares | (165) |
Number of RSUs, cancelled and withheld to cover taxes | shares | (622) |
Number of RSUs, Granted and unvested, Ending balance | shares | 2,544 |
Weighted Average Grant Date Fair Value Per Unit, RSUs Granted and unvested, Beginning balance | $ / shares | $ 3.07 |
Weighted Average Grant Date Fair Value Per Unit, RSUs granted | $ / shares | 1.81 |
Weighted Average Grant Date Fair Value Per Unit, RSUs vested | $ / shares | 4.20 |
Weighted Average Grant Date Fair Value Per Unit, RSUs cancelled and withheld to cover taxes | $ / shares | 3.01 |
Weighted Average Grant Date Fair Value Per Unit, RSUs Granted and unvested, Ending balance | $ / shares | $ 2.85 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1,842 | $ 3,822 |
Stock options granted | 0 | |
Proceeds from exercise of common stock options | $ 0 | $ 162 |
Unrecognized compensation cost related to options | $ 1,440 | |
Options Available for Future Grant [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Recognized weighted-average period | 1 year 9 months 18 days | |
Restricted Stock and RSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Recognized weighted-average period | 2 years 3 months 18 days | |
Unrecognized compensation cost related to restricted stock and RSUs | $ 5,889 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 406,000 | $ 341,000 |
Pre-tax loss | 5,720,000 | 4,072,000 |
Income tax benefit recognized with respect to losses incurred | 0 | |
Income tax expense with respect to earnings | 0 | |
Increase or decrease in unrecognized tax benefits | 0 | |
Interest or penalties associated with uncertain tax positions | $ 0 | $ 0 |
Net Loss Per Share Available 43
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net loss available to common stockholders | $ (6,126) | $ (4,413) |
Denominator: | ||
Weighted average number of shares, basic and diluted | 39,081 | 37,767 |
Net loss per share available to common stockholders | ||
Basic and diluted net loss per common share available to common stockholders | $ (0.16) | $ (0.12) |
Net Loss Per Share Available 44
Net Loss Per Share Available to Common Stockholders - Potential Common Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares outstanding | 5,807 | 8,452 |
RSUs [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares outstanding | 2,544 | 2,217 |
Options to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares outstanding | 3,259 | 6,161 |
Restricted Common Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares outstanding | 1 | 66 |
Common Stock Subject to Repurchase [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares outstanding | 3 | 8 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segment | 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 | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues, net | $ 20,333 | $ 27,188 | ||
Total long-lived assets, net | 19,175 | $ 20,581 | [1] | |
United States of America [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues, net | 13,612 | 18,740 | ||
Total long-lived assets, net | 18,530 | 19,861 | ||
International [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues, net | 6,721 | $ 8,448 | ||
Total long-lived assets, net | $ 645 | $ 720 | ||
[1] | Derived from our audited consolidated financial statements as of December 31, 2016. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rent expense | $ 2,080 | $ 2,168 | |
Liabilities obligations | $ 0 | $ 0 |
Commitments and Contingencies48
Commitments and Contingencies - Annual Future Minimum Payments under Operating Leases (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining nine months of 2017 | $ 4,562 |
Year ending December 31, 2018 | 4,442 |
Year ending December 31, 2019 | 4,016 |
Year ending December 31, 2020 | 3,338 |
Year ending December 31, 2021 and thereafter | 5,994 |
Future minimum lease payments for significant operating leases | $ 22,352 |