Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 | 5,751,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 21,983 | $ 27,544 |
Restricted cash | 1,293 | 1,293 |
Accounts receivable, net | 11,000 | 12,237 |
Prepaid expenses and other current assets | 5,652 | 3,989 |
Total current assets | 39,928 | 45,063 |
Property and equipment, net | 14,579 | 15,559 |
Goodwill | 16,816 | 16,768 |
Intangible assets, net | 3,785 | 4,475 |
Other non-current assets | 2,357 | 1,504 |
Total assets | 77,465 | 83,369 |
Current liabilities | ||
Accounts payable | 2,762 | 2,826 |
Accrued expenses and other current liabilities | 8,474 | 10,474 |
Capital lease obligations | 1,438 | 1,416 |
Total current liabilities | 12,674 | 14,716 |
Capital lease obligations, non-current | 1,347 | 1,687 |
Other long-term liabilities | 4,158 | 4,183 |
Total liabilities | 18,179 | 20,586 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity | ||
Common stock, $0.001 par value - 142,857 shares authorized, 5,748 and 5,729 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 6 | 6 |
Additional paid-in capital | 292,099 | 291,163 |
Accumulated deficit | (232,581) | (227,704) |
Accumulated other comprehensive loss | (238) | (682) |
Total stockholders’ equity | 59,286 | 62,783 |
Total liabilities and stockholders’ equity | $ 77,465 | $ 83,369 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 142,857,000 | 142,857,000 |
Common stock, shares issued | 5,748,000 | 5,729,000 |
Common stock, shares outstanding | 5,748,000 | 5,729,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues, net | $ 15,402 | $ 20,333 |
Cost of revenues | 7,572 | 8,324 |
Gross profit | 7,830 | 12,009 |
Operating expenses | ||
Sales and marketing | 7,381 | 6,676 |
Research and development | 6,155 | 7,138 |
General and administrative | 3,377 | 4,177 |
Total operating expenses | 16,913 | 17,991 |
Loss from operations | (9,083) | (5,982) |
Other income, net | 295 | 262 |
Loss before provision for income taxes | (8,788) | (5,720) |
Provision for income taxes | (324) | (406) |
Net loss | (9,112) | (6,126) |
Foreign currency translation adjustments | 444 | 219 |
Comprehensive loss | $ (8,668) | $ (5,907) |
Net loss per share available to common stockholders, basic and diluted (Note 11) | $ (1.59) | $ (1.10) |
Weighted-average shares used to compute net loss per share available to common stockholders, basic and diluted | 5,736 | 5,583 |
Amortization of intangible assets is allocated as follows (Note 4): | ||
Amortization of intangible assets | $ 690 | $ 730 |
Cost of Revenues [Member] | ||
Stock-based compensation expense is allocated as follows (Note 9): | ||
Allocation of stock-based compensation | 204 | 311 |
Amortization of intangible assets is allocated as follows (Note 4): | ||
Amortization of intangible assets | 237 | 247 |
Restructuring related expenses are allocated as follows (Note 5): | ||
Restructuring related expenses | 139 | 0 |
Sales and Marketing [Member] | ||
Stock-based compensation expense is allocated as follows (Note 9): | ||
Allocation of stock-based compensation | 240 | 212 |
Amortization of intangible assets is allocated as follows (Note 4): | ||
Amortization of intangible assets | 213 | 223 |
Restructuring related expenses are allocated as follows (Note 5): | ||
Restructuring related expenses | 497 | 0 |
Research and Development [Member] | ||
Stock-based compensation expense is allocated as follows (Note 9): | ||
Allocation of stock-based compensation | 339 | 996 |
Amortization of intangible assets is allocated as follows (Note 4): | ||
Amortization of intangible assets | 237 | 247 |
Restructuring related expenses are allocated as follows (Note 5): | ||
Restructuring related expenses | 115 | 0 |
General and Administrative [Member] | ||
Stock-based compensation expense is allocated as follows (Note 9): | ||
Allocation of stock-based compensation | 245 | 323 |
Amortization of intangible assets is allocated as follows (Note 4): | ||
Amortization of intangible assets | 3 | 13 |
Restructuring related expenses are allocated as follows (Note 5): | ||
Restructuring related expenses | $ 111 | $ 0 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net loss | $ (9,112) | $ (6,126) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 798 | 1,336 |
Amortization of internally developed software | 957 | 788 |
Amortization of intangible assets | 690 | 730 |
Amortization of deferred costs to obtain and fulfill contracts | 605 | 0 |
Unrealized foreign currency losses (gains) | 24 | (12) |
Non-cash interest expense related to debt agreements | 0 | 6 |
Stock-based compensation related to equity awards and restricted stock | 1,028 | 1,842 |
(Recovery from) provision for bad debts | (214) | 416 |
Changes in operating assets and liabilities | ||
Accounts receivable | 1,451 | 2,439 |
Prepaid expenses and other assets | (482) | (1,417) |
Accounts payable | (48) | (49) |
Accrued expenses and other liabilities | (620) | (574) |
Net cash used in operating activities | (4,923) | (621) |
Investing activities | ||
Purchases of property and equipment | (98) | (169) |
Capitalization of internally developed software | (693) | (543) |
Net cash used in investing activities | (791) | (712) |
Financing activities | ||
Repayments of capital lease obligations | (318) | (249) |
Employee taxes paid for withheld shares upon equity award settlement | (26) | (156) |
Proceeds from employee stock purchase plan, net | 78 | 136 |
Net cash used in financing activities | (266) | (269) |
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash | 419 | 181 |
Net decrease in cash and cash equivalents and restricted cash | (5,561) | (1,421) |
Beginning of period | 28,837 | 35,713 |
End of period | 23,276 | 34,292 |
Supplemental disclosure of non-cash investing and financing activities | ||
Purchases of property and equipment recorded in accounts payable and accrued expenses | $ 14 | $ 12 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
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, social and display advertising channels, offered as a 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, London, New York, Paris, Portland, Shanghai and Tokyo. Liquidity The Company has incurred significant losses in each fiscal year since its incorporation in 2006 and management expects such losses to continue over the next several years. The Company experienced a net loss of $9,112 for the three months ended March 31, 2018, and a net loss of $31,491 for the year ended December 31, 2017. As of March 31, 2018, the Company had an accumulated deficit of $232,581. The Company had cash, cash equivalents and restricted cash of $23,276 as of March 31, 2018. Management expects to incur additional losses and experience negative cash flows in the future. To continue to fund operations, including research and development, the Company will need to seek opportunities to increase revenues, lower costs and/or raise additional capital. In January 2018, the Company initiated a restructuring (see Note 5), which is expected to result in significant cost savings in 2018. The Company believes that its cash, cash equivalents and restricted cash will provide sufficient funds for the Company to continue as a going concern for at least 12 months from the date of issuance of these condensed consolidated financial statements. 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. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018, 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, 2017 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, as amended, for the fiscal year ended December 31, 2017, filed with the Securities and Exchange Commission (“SEC”) on March 5, 2018. Reclassifications When necessary, reclassifications have been made to prior period financial information to conform to the current period presentation. Reverse Stock Split and Reduction in Authorized Shares On October 5, 2017, the Company effected a reverse stock split of its outstanding common stock. As a result of the reverse stock split, each seven outstanding shares of the Company’s common stock was combined into one outstanding share of common stock, without any change in par value. In addition, the number of authorized shares of common stock was reduced from 500,000 shares to 142,857 shares. All share and per share amounts of the Company’s common stock, as well as stock options and restricted stock units (“RSUs”) included in the accompanying condensed consolidated financial statements have been presented to give effect to the reverse stock split for all periods presented. Fair Value Measurements The Company’s financial instruments, including 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 outstanding capital lease obligations (Note 5) 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 $9,208 and $8,831 as of March 31, 2018 and December 31, 2017, 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 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, 2018 and December 31, 2017, the Company recorded an allowance for doubtful accounts in the amount of $3,803 and $4,028, 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, 2018, and December 31, 2017, the Company recorded an allowance for potential customer credits in the amount of $849 and $799, respectively. Long-Lived Asset Impairment Assessments The Company evaluates goodwill for impairment in the fourth quarter of its fiscal year annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. For the purposes of impairment testing, the Company has determined that it has one reporting unit. The Company performs its goodwill impairment test using the simplified method, whereby the fair value of this reporting unit is compared to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not considered impaired. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, the goodwill is considered impaired by an amount equal to that difference. No goodwill impairment was recorded for the three months ended March 31, 2018, despite the decline in the market capitalization of the Company’s common stock during this time. Refer to Note 4 for details of the Company’s interim goodwill impairment assessment. 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 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 recorded in any of the periods presented. Recent Accounting Pronouncements Adopted in 2018 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers In May 2017, the FASB issued ASU Compensation – Stock Compensation In March 2018, the FASB issued ASU 2018-05, Income Taxes: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“SAB 118”) Recent Accounting Pronouncements Not Yet Effective 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. Although the Company is in the process of evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements, it currently believes the most significant change will be related to the recognition of right-of-use assets and lease liabilities on the Company’s balance sheet for real estate operating leases. In February 2018, the FASC issued ASU 2018-02, Income Statement – Reporting Comprehensive Income – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 2. Revenues Adoption of ASC 606 On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method applied to those contracts that were not completed as of that date. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with prior revenue recognition accounting guidance. The Company recorded a net reduction to opening accumulated deficit of $4,085, net of tax, as of January 1, 2018 due to the cumulative impact of adopting ASC 606, with the impact primarily related to the recognition of breakage revenues and the deferral of incremental costs to both obtain and fulfill contracts. The impact to revenues for the three months ended March 31, 2018 as a result of applying ASC 606 was not material. The adoption of ASC 606 did not have a material impact on the Company’s provision for income taxes, and had no impact on the net cash used in operating, investing and financing activities on the Company’s condensed consolidated statements of cash flows. Refer to “ASC 606 Adoption Impact on Reported Results,” below, for the impact of the adoption of ASC 606 on the Company’s condensed consolidated balance sheets and condensed consolidated statements of operations. Revenue Recognition The Company generates its revenues principally from subscriptions either directly with advertisers or with advertising agencies to its platform for the management of search, social and display advertising. Revenues are recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, the Company satisfies a performance obligation. The 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 and recognized on a monthly basis. Contracts with direct advertisers and certain contracts with independent advertising agencies also include a minimum monthly fee that is recognized ratably over the duration of the contract, commencing on the date that the Company’s platform is made available to the customer. Due to the nature of the platform and the services performed under the subscription agreements, the Company determined that the variable and fixed subscription fees should be allocated to the monthly period in which the Company has the contractual right to bill under the contract. As a result, the adoption of ASC 606 did not have a material impact on the Company’s subscription revenues. Disaggregation of Revenues Revenues by geographic area, based on the billing location of the customer, were as follows for the periods presented: Three Months Ended March 31, 2018 2017 United States of America $ 10,211 $ 13,612 United Kingdom 2,110 2,820 Other (1) 3,081 3,901 Total revenues, net $ 15,402 $ 20,333 (1) No individual country within the “Other” category accounted for 10% or more of revenues, net for any period presented. Contract Balances Accounts receivable, net The timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable are recorded at the invoiced amount, net of any necessary allowance for doubtful accounts or credit reserves. A receivable is recognized in the period the Company provides the underlying services or when the right to consideration is unconditional. The balance of accounts receivable, net of the allowance for doubtful accounts and the credit reserve, as of March 31, 2018 and December 31, 2017 is presented in the accompanying condensed consolidated balance sheets. Customer advances The Company records advances from customers for cash payments that are received in advance of its performance of the underlying services. These cash payments are generally received on a weekly basis at amounts that are at the discretion of the customers, based on established advertising budgets. The unused portion of these advances from customers is included within accruals and other current liabilities on the accompanying condensed consolidated balance sheets. Under the Company’s terms of service, individual customer advances that are not used by or refunded to the customer for a period of 180 days become the property of the Company. The Company recognizes these advances from customers that have remained outstanding for 180 days or more as breakage revenues. The Company recorded historical breakage up to January 1, 2018 as an adjustment to opening accumulated deficit, and breakage revenue for the three months ended March 31, 2018 within revenues, net. Changes in the balance of advances from customers during the three months ended March 31, 2018 are as follows: Balance at December 31, 2017, as previously reported $ 2,003 Impact of adoption of ASC 606 on January 1, 2018 (1,445 ) Balance at January 1, 2018, as adjusted 558 Customer advances received 1,979 Subscription revenue recognized (on a gross basis) (1,944 ) Breakage revenue recognized (74 ) Balance at March 31, 2018 $ 519 Costs to Obtain and Fulfill Contracts The Company capitalizes certain contract acquisition costs, consisting primarily of commissions paid and the related payroll taxes that are incremental to obtaining customer contracts, when customer contracts are signed (“deferred costs to obtain contracts”). The Company also capitalizes certain contract fulfillment costs, consisting primarily of on-boarding and integration services for new and existing customers performed by the Company’s professional services team. The professional services payroll and the related payroll taxes that are incremental to fulfilling customer contracts are capitalized (“deferred costs to fulfill contracts”). The deferred costs to obtain and fulfill contracts are amortized based on the expected period of benefit, which the Company determined to be three years. This period of benefit was determined by taking into consideration the duration of the Company’s customer contracts, historical contract renewal rates, the underlying technology and other factors. Amortization expense for deferred sales commissions and deferred professional services is included in sales and marketing expense and cost of sales, respectively, on the accompanying condensed consolidated statements of operations. The Company classifies deferred costs to obtain and fulfill contracts as current or non-current based on the timing of when the related amortization expense is expected be recognized. The current portion of these deferred costs is included in prepaid expenses and other current assets, while the non-current portion is included in other non-current assets on the accompanying condensed consolidated balance sheets. Changes in the balances of deferred costs to obtain and fulfill contracts during the three months ended March 31, 2018 were as follows: Costs to Obtain Contracts Costs to Fulfill Contracts Balances at January 1, 2018, as adjusted for adoption of ASC 606 $ 1,760 $ 880 Deferred costs 257 115 Amortization (432 ) (173 ) Balances at March 31, 2018 $ 1,585 $ 822 ASC 606 Adoption Impact on Reported Results The following table reflects the accounts impacted by the adoption of ASC 606 on the Company’s condensed consolidated balance sheets at March 31, 2018: March 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Assets Prepaid expenses and other current assets $ 5,652 $ 4,097 $ 1,555 Other non-current assets 2,357 1,505 852 Liabilities Accrued expenses and other current liabilities $ 8,474 $ 9,993 $ (1,519 ) Shareholders' equity Accumulated deficit $ (232,581 ) $ (236,507 ) $ 3,926 The following table reflects the impact of the adoption of ASC 606 on the Company’s condensed consolidated statements of operations for the three months ended March 31, 2018: Three Months Ended March 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Revenues, net $ 15,402 $ 15,328 $ 74 Cost of revenues 7,572 7,514 58 Gross profit 7,830 7,814 16 Operating expenses Sales and marketing 7,381 7,206 175 Research and development 6,155 6,155 — General and administrative 3,377 3,377 — Total operating expenses 16,913 16,738 175 Loss from operations (9,083 ) (8,924 ) (159 ) Other income, net 295 295 — Loss before provision for income taxes (8,788 ) (8,629 ) (159 ) Provision for income taxes (324 ) (324 ) — Net loss $ (9,112 ) $ (8,953 ) $ (159 ) Net loss per share available to common stockholders, basic and diluted $ (1.59 ) $ (1.56 ) $ (0.03 ) Practical Expedients and Exemptions The Company does not disclose the value of unsatisfied performance obligations since its contracts generally have an original expected term of one year or less and the Company recognizes revenues at the amount to which it has the right to invoice for services performed. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 3. Balance Sheet Components The following table shows the components of property and equipment as of the dates presented: March 31, December 31, Estimated Useful Life 2018 2017 Computer equipment 3 to 4 years $ 29,987 $ 29,938 Software, including internally developed software 3 years 24,082 23,389 Leasehold improvements Shorter of useful life or lease term 4,634 4,617 Office equipment, furniture and fixtures 3 to 5 years 2,130 2,127 60,833 60,071 Less: Accumulated depreciation and amortization (46,254 ) (44,512 ) $ 14,579 $ 15,559 Depreciation and amortization of internally developed software for the three months ended March 31, 2018 and 2017 was $1,755 and $2,124, respectively. The following table shows the components of accrued expenses and other current liabilities as of the dates presented: March 31, December 31, 2018 2017 Accrued salary and payroll-related expenses $ 3,225 $ 4,372 Accrued liabilities 2,147 2,161 Customer advances 519 2,003 Deferred rent 489 475 Advanced billings 417 459 Sales and use tax payable 338 341 Income taxes payable 290 142 Other 1,049 521 $ 8,474 $ 10,474 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets Due to a continued stock price decline, the Company’s market capitalization decreased to a value below the net book value of the Company’s net assets during the first quarter of 2018, triggering the Company to perform an interim goodwill impairment test at that time. For the purposes of this goodwill impairment test, t he Company estimated the fair value of its sole reporting unit using the market approach. Under the market approach, the Company utilized the market capitalization of its fully diluted common stock for March 31, 2018, and applied an estimated control premium based on an analysis of control premiums paid in acquisitions of companies in the same or similar industries as the Company. Because the significant inputs used in this analysis are readily available from public markets or can be derived from observable market transactions, they have been classified as level 2 within the fair value hierarchy. Based on this analysis, there was no impairment of goodwill recorded as of March 31, 2018. The goodwill activity for the three months ended March 31, 2018 consisted of the following: Balance at December 31, 2017 $ 16,768 Foreign currency translation adjustments 48 Balance at March 31, 2018 $ 16,816 Intangible assets consisted of the following as of the dates presented (in thousands, except years): March 31, December 31, Estimated Useful Life 2018 2017 Developed technology 5 to 6 years $ 9,910 $ 9,910 Customer relationships 4 years 3,370 3,370 Non-compete agreements and tradenames 2 to 3 years 1,390 1,390 14,670 14,670 Less: accumulated amortization (10,885 ) (10,195 ) $ 3,785 $ 4,475 Amortization of intangible assets was $690 and $730 for the three months ended March 31, 2018 and 2017, respectively. Future estimated amortization of intangible assets as of March 31, 2018, is presented below: Remaining nine months of 2018 $ 1,847 Year ending December 31, 2019 1,843 Year ending December 31, 2020 95 $ 3,785 |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Activities | 5. Restructuring Activities On January 24, 2018, the Company initiated an organizational restructuring plan (the “2018 Restructuring Plan”) designed to reduce operating expenses in response to declines in revenues and to better align the Company’s efforts to return to growth. The 2018 Restructuring Plan includes a headcount reduction of approximately 11% of the Company’s workforce, the closure of certain leased facilities and the consolidation of space in the Company’s San Francisco headquarters. Upon completion of the 2018 Restructuring Plan, the Company expects to recognize approximately $930 in pre-tax restructuring related expenses, primarily related to employee costs for severance and other one-time termination benefits. During the three months ended March 31, 2018, the Company recorded $862 of restructuring related expenses in connection with the 2018 Restructuring Plan in the accompanying condensed consolidated statements of operations. The remaining employee and facilities costs are expected to be incurred and paid primarily during the second quarter of 2018. As of March 31, 2018, approximately $138 in restructuring related expenses associated with the 2018 Restructuring Plan was incurred and unpaid. This amount is included primarily in accrued expenses and other current liabilities on the Company’s condensed consolidated balance sheets. |
Capital Lease Obligations
Capital Lease Obligations | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Capital Lease Obligations | 6. Capital Lease Obligations Since 2015, the Company has entered into various capital lease arrangements with two equipment manufacturers to finance acquisitions of computer equipment. These leases have effective annual interest rates ranging from 5.2% to 7.9%, and are repayable in 36 to 48 consecutive equal monthly installments of principal and interest. At the end of each lease period, 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, 2018 and December 31, 2017, the net book value of the computer equipment under these capital leases was $2,549 and $2,861, respectively, and the remaining principal balance payable was $2,785 and $3,103, respectively. The maturities of all outstanding debt, consisting of the capital lease arrangements, as of March 31, 2018, are as follows: Year ending December 31, 2018 $ 1,098 December 31, 2019 1,137 December 31, 2020 538 December 31, 2021 12 2,785 Less: Current portion (1,438 ) Non-current portion of debt $ 1,347 |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Common Stock | 7. Common Stock As of March 31, 2018, and December 31, 2017, the Company’s amended certificate of incorporation authorizes the issuance of 142,857 shares of $0.001 par value common stock. Reserved shares of common stock are as follows: March 31, December 31, 2018 2017 Options or RSUs available for future grant under stock option plans 1,235 999 RSUs outstanding under stock option plans 531 568 Options outstanding under stock option plans 502 436 Shares available for future issuance under employee stock purchase plan 239 182 2,507 2,185 |
Equity Award Plans
Equity Award Plans | 3 Months Ended |
Mar. 31, 2018 | |
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”), which provided for the grant of incentive and non-statutory stock options. In February 2013 the Board adopted and the stockholders approved the 2013 Equity Incentive Plan (“2013 Plan”), which became effective on March 21, 2013. At that time, the Company ceased to grant equity awards under the 2006 Plan. Under the 2013 Plan, 643 shares of common stock were originally reserved for issuance. Additionally, all reserved and unissued shares under the 2006 Plan are eligible for issuance under the 2013 Plan. The 2013 Plan authorizes the award of incentive and non-statutory 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 286 shares of common stock on January 1, 2018. 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, 2017 436 $ 37.60 7.04 $ 65 Options granted 71 7.40 9.94 Options forfeited and cancelled (5 ) 51.35 — Balances at March 31, 2018 502 33.19 7.15 8 Options exercisable 308 45.78 5.87 8 Options vested 308 45.77 5.88 8 Options vested and expected to vest 480 34.16 7.05 8 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, 2017 568 $ 14.22 RSUs granted 52 9.46 RSUs vested (19 ) 25.91 RSUs cancelled and withheld to cover taxes (70 ) 17.29 Granted and unvested at March 31, 2018 531 $ 12.92 Employee Stock Purchase Plan In February 2013, the Board and stockholders approved the 2013 Employee Stock Purchase Plan (“2013 ESPP”), under which 143 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 is 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 automatically increases by an amount equal to 1% of the total outstanding shares as of immediately preceding December 31, but not to exceed 100 shares. Pursuant to terms of the 2013 ESPP, the shares available for issuance increased by 57 shares on January 1, 2018. During the three months ended March 31, 2018 and 2017, no shares were issued under the 2013 ESPP. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
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 expense of $1,028 and $1,842 for the three months ended March 31, 2018 and 2017, 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. For stock options granted during the three months ended March 31, 2018, the Company used the following Black-Scholes option-pricing model assumptions (there were no stock options granted during the three months ended March 31, 2017): Dividend yield — Expected volatility 56.1 % Risk-free interest rate 2.52 % Expected life of options (in years) 4.0 During the three months ended March 31, 2018, the Company began estimating the expected volatility of its common stock and expected life of its stock options based on its own historical experience. The expected volatility reflects the actual historical volatility of the price of the Company’s common stock since it began trading publicly in March 2013. The expected life represents the period of time that stock options are expected to be outstanding, based on historical exercise and employee departure behavior. Prior to the three months ended March 31, 2018, the Company estimated its expected volatility using the historical stock volatilities of similar publicly-traded companies, and estimated the expected life based on the simplified method as allowed by the SEC staff. 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. There were no exercises of stock options during the three months ended March 31, 2018 and 2017, respectively. Compensation expense, net of estimated forfeitures, is recognized ratably over the requisite service period. As of March 31, 2018, there was $ 857 RSUs As of March 31, 2018, there was $5,188 of unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted-average period of 2.0 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, 2018 | |
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 months ended March 31, 2018 and 2017 was $324 and $406, respectively, on pre-tax losses of $8,788 and $5,720, respectively. As of March 31, 2018, the income tax rate varies from the federal 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 income tax benefit recognized with respect to losses incurred and no 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 uncertain tax positions will significantly increase or decrease within the next year. During the three months ended March 31, 2018 and 2017, the Company did not recognize any interest or penalties related to uncertain tax positions. The Tax Cuts and Jobs Act On December 22, 2017, the United States enacted the TCJA, which instituted fundamental changes to the taxation of multinational corporations, including, but not limited to: (1) a reduction of the U.S. federal corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017; (2) the creation of new minimum taxes such as the base erosion anti-abuse tax (“BEAT”) and Global Intangible Low Taxed Income (“GILTI”) tax and (3) the transition of international taxation from a worldwide tax system to a modified territorial system, which will result in a one time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. (“Transition Tax”). As a result of the reduced corporate income tax rate, the Company re-measured its deferred tax assets and liabilities and reduced them by $18,696 and $4,394, respectively, with a corresponding net adjustment to the valuation allowance of $14,302 for the year ended December 31, 2017. The BEAT provisions in the TCJA essentially represent a 10% minimum tax (5% for tax years beginning after December 31, 2017, increasing to 10% for years beginning after December 31, 2018) calculated on a base equal to taxpayer’s income determined without tax benefits arising from base erosion payments. BEAT does not apply to corporations with annual gross receipts for the three-taxable-year period, ending with the preceding taxable year, of less than $500,000. As a result, BEAT does not apply to the Company for the year ending December 31, 2018. In addition, the TCJA imposes a U.S. tax on GILTI that is earned by certain foreign subsidiaries. Due to the complexity of the GILTI tax rules, the Company’s accounting for GILTI is incomplete. The Company has not made any provisional adjustment related to potential GILTI tax on its condensed consolidated financial statements, and has not made a policy decision regarding whether to record deferred taxes related to GILTI. The Transition Tax is imposed on previously untaxed historical earnings and profits of foreign subsidiaries. Based on the current evaluation of the Company’s operations, no repatriation tax charge is anticipated due to negative earnings and profits in the Company’s foreign subsidiaries. The SEC staff issued SAB 118 to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the TCJA. For the three months ended March 31, 2018, the accounting for the TCJA remained incomplete, but there were no material changes to the provisional tax impacts assessed for the year ended December 31, 2017. The accounting is expected to be completed when the Company’s 2017 U.S. corporate income tax is filed in 2018. As of March 31, 2018, the amounts recorded or anticipated for the TCJA remain provisional for the Transition Tax, the re-measurement of deferred taxes, the reassessment of permanently reinvested earnings uncertain tax positions and valuation allowances. These estimates may be impacted by further analysis and future clarification and guidance regarding available tax accounting methods and elections, earnings and profits computations and state tax conformity to federal tax changes, among other factors. |
Net Loss Per Share Available to
Net Loss Per Share Available to Common Stockholders | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Available to Common Stockholders | 11. Net Loss Per Share Available to Common Stockholders Basic net loss of common stock 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 excludes those shares subject to repurchase related to stock options or restricted stock that were exercised or issued, respectively, prior to vesting, as these shares are not deemed to be outstanding for accounting purposes until they vest. 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. Basic and diluted net loss per share was the same for all periods presented, as the impact of all potentially dilutive securities outstanding was anti-dilutive. The following table presents the calculation of basic and diluted net loss per share: Three Months Ended March 31, 2018 2017 Numerator: Net loss available to common stockholders $ (9,112 ) $ (6,126 ) Denominator: Weighted average number of shares, basic and diluted 5,736 5,583 Net loss per share available to common stockholders Basic and diluted net loss per common share available to common stockholders $ (1.59 ) $ (1.10 ) 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, 2018 2017 Options to purchase common stock 502 466 Unvested RSUs 531 363 Common stock subject to repurchase — 1 Total 1,033 830 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2018 | |
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. See Note 2 for the Company’s revenues by geographic area, based on the billing location of the customer, for the periods presented. Long-lived assets, excluding goodwill and intangible assets, by geographic area were as follows for the periods presented: March 31, December 31, 2018 2017 United States of America $ 14,112 $ 15,069 International 467 490 Total long-lived assets, net $ 14,579 $ 15,559 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Operating Leases Rent expense for the three months ended March 31, 2018 and 2017 was $2,119 and $2,080, 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, 2018, were as follows: Remaining nine months of 2018 $ 5,735 Year ending December 31, 2019 8,028 Year ending December 31, 2020 3,684 Year ending December 31, 2021 3,454 Year ending December 31, 2022 and thereafter 2,709 $ 23,610 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, 2018 and audited consolidated balance sheet as of December 31, 2017. 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, 2018 and December 31, 2017. 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) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Liquidity | Liquidity The Company has incurred significant losses in each fiscal year since its incorporation in 2006 and management expects such losses to continue over the next several years. The Company experienced a net loss of $9,112 for the three months ended March 31, 2018, and a net loss of $31,491 for the year ended December 31, 2017. As of March 31, 2018, the Company had an accumulated deficit of $232,581. The Company had cash, cash equivalents and restricted cash of $23,276 as of March 31, 2018. Management expects to incur additional losses and experience negative cash flows in the future. To continue to fund operations, including research and development, the Company will need to seek opportunities to increase revenues, lower costs and/or raise additional capital. In January 2018, the Company initiated a restructuring (see Note 5), which is expected to result in significant cost savings in 2018. The Company believes that its cash, cash equivalents and restricted cash will provide sufficient funds for the Company to continue as a going concern for at least 12 months from the date of issuance of these condensed consolidated financial statements. |
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. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018, 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, 2017 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, as amended, for the fiscal year ended December 31, 2017, filed with the Securities and Exchange Commission (“SEC”) on March 5, 2018. |
Reclassifications | Reclassifications When necessary, reclassifications have been made to prior period financial information to conform to the current period presentation. |
Reverse Stock Split and Reduction in Authorized Shares | Reverse Stock Split and Reduction in Authorized Shares On October 5, 2017, the Company effected a reverse stock split of its outstanding common stock. As a result of the reverse stock split, each seven outstanding shares of the Company’s common stock was combined into one outstanding share of common stock, without any change in par value. In addition, the number of authorized shares of common stock was reduced from 500,000 shares to 142,857 shares. All share and per share amounts of the Company’s common stock, as well as stock options and restricted stock units (“RSUs”) included in the accompanying condensed consolidated financial statements have been presented to give effect to the reverse stock split for all periods presented. |
Fair Value Measurements | Fair Value Measurements The Company’s financial instruments, including 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 outstanding capital lease obligations (Note 5) 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 $9,208 and $8,831 as of March 31, 2018 and December 31, 2017, 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 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, 2018 and December 31, 2017, the Company recorded an allowance for doubtful accounts in the amount of $3,803 and $4,028, 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, 2018, and December 31, 2017, the Company recorded an allowance for potential customer credits in the amount of $849 and $799, respectively. |
Long-Lived Asset Impairment Assessments | Long-Lived Asset Impairment Assessments The Company evaluates goodwill for impairment in the fourth quarter of its fiscal year annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. For the purposes of impairment testing, the Company has determined that it has one reporting unit. The Company performs its goodwill impairment test using the simplified method, whereby the fair value of this reporting unit is compared to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not considered impaired. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, the goodwill is considered impaired by an amount equal to that difference. No goodwill impairment was recorded for the three months ended March 31, 2018, despite the decline in the market capitalization of the Company’s common stock during this time. Refer to Note 4 for details of the Company’s interim goodwill impairment assessment. 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 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 recorded in any of the periods presented. |
Recent Accounting Pronouncements Adopted in 2018 | Recent Accounting Pronouncements Adopted in 2018 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers In May 2017, the FASB issued ASU Compensation – Stock Compensation In March 2018, the FASB issued ASU 2018-05, Income Taxes: Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“SAB 118”) |
Recent Accounting Pronouncements Not Yet Effective | Recent Accounting Pronouncements Not Yet Effective 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. Although the Company is in the process of evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements, it currently believes the most significant change will be related to the recognition of right-of-use assets and lease liabilities on the Company’s balance sheet for real estate operating leases. In February 2018, the FASC issued ASU 2018-02, Income Statement – Reporting Comprehensive Income – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
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, 2018 and 2017 was $324 and $406, respectively, on pre-tax losses of $8,788 and $5,720, respectively. As of March 31, 2018, the income tax rate varies from the federal 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 income tax benefit recognized with respect to losses incurred and no 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 uncertain tax positions will significantly increase or decrease within the next year. During the three months ended March 31, 2018 and 2017, the Company did not recognize any interest or penalties related to uncertain tax positions. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disaggregation of Revenues By Geographic Area, Based on Billing Location of Customer | Revenues by geographic area, based on the billing location of the customer, were as follows for the periods presented: Three Months Ended March 31, 2018 2017 United States of America $ 10,211 $ 13,612 United Kingdom 2,110 2,820 Other (1) 3,081 3,901 Total revenues, net $ 15,402 $ 20,333 (1) No individual country within the “Other” category accounted for 10% or more of revenues, net for any period presented. |
ASU 2014-09 [Member] | |
Summary of Changes in Balance of Advances From Customers | Changes in the balance of advances from customers during the three months ended March 31, 2018 are as follows: Balance at December 31, 2017, as previously reported $ 2,003 Impact of adoption of ASC 606 on January 1, 2018 (1,445 ) Balance at January 1, 2018, as adjusted 558 Customer advances received 1,979 Subscription revenue recognized (on a gross basis) (1,944 ) Breakage revenue recognized (74 ) Balance at March 31, 2018 $ 519 |
Summary of Changes in Balances of Deferred Costs to Obtain and Fulfill Contracts | Changes in the balances of deferred costs to obtain and fulfill contracts during the three months ended March 31, 2018 were as follows: Costs to Obtain Contracts Costs to Fulfill Contracts Balances at January 1, 2018, as adjusted for adoption of ASC 606 $ 1,760 $ 880 Deferred costs 257 115 Amortization (432 ) (173 ) Balances at March 31, 2018 $ 1,585 $ 822 |
Summary of Impacted by Adoption of ASC 606 | The following table reflects the accounts impacted by the adoption of ASC 606 on the Company’s condensed consolidated balance sheets at March 31, 2018: March 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Assets Prepaid expenses and other current assets $ 5,652 $ 4,097 $ 1,555 Other non-current assets 2,357 1,505 852 Liabilities Accrued expenses and other current liabilities $ 8,474 $ 9,993 $ (1,519 ) Shareholders' equity Accumulated deficit $ (232,581 ) $ (236,507 ) $ 3,926 The following table reflects the impact of the adoption of ASC 606 on the Company’s condensed consolidated statements of operations for the three months ended March 31, 2018: Three Months Ended March 31, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Revenues, net $ 15,402 $ 15,328 $ 74 Cost of revenues 7,572 7,514 58 Gross profit 7,830 7,814 16 Operating expenses Sales and marketing 7,381 7,206 175 Research and development 6,155 6,155 — General and administrative 3,377 3,377 — Total operating expenses 16,913 16,738 175 Loss from operations (9,083 ) (8,924 ) (159 ) Other income, net 295 295 — Loss before provision for income taxes (8,788 ) (8,629 ) (159 ) Provision for income taxes (324 ) (324 ) — Net loss $ (9,112 ) $ (8,953 ) $ (159 ) Net loss per share available to common stockholders, basic and diluted $ (1.59 ) $ (1.56 ) $ (0.03 ) |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, Estimated Useful Life 2018 2017 Computer equipment 3 to 4 years $ 29,987 $ 29,938 Software, including internally developed software 3 years 24,082 23,389 Leasehold improvements Shorter of useful life or lease term 4,634 4,617 Office equipment, furniture and fixtures 3 to 5 years 2,130 2,127 60,833 60,071 Less: Accumulated depreciation and amortization (46,254 ) (44,512 ) $ 14,579 $ 15,559 |
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, 2018 2017 Accrued salary and payroll-related expenses $ 3,225 $ 4,372 Accrued liabilities 2,147 2,161 Customer advances 519 2,003 Deferred rent 489 475 Advanced billings 417 459 Sales and use tax payable 338 341 Income taxes payable 290 142 Other 1,049 521 $ 8,474 $ 10,474 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The goodwill activity for the three months ended March 31, 2018 consisted of the following: Balance at December 31, 2017 $ 16,768 Foreign currency translation adjustments 48 Balance at March 31, 2018 $ 16,816 |
Schedule of Intangible Assets | Intangible assets consisted of the following as of the dates presented (in thousands, except years): March 31, December 31, Estimated Useful Life 2018 2017 Developed technology 5 to 6 years $ 9,910 $ 9,910 Customer relationships 4 years 3,370 3,370 Non-compete agreements and tradenames 2 to 3 years 1,390 1,390 14,670 14,670 Less: accumulated amortization (10,885 ) (10,195 ) $ 3,785 $ 4,475 |
Schedule of Future Estimated Amortization Costs of Intangible Assets | Future estimated amortization of intangible assets as of March 31, 2018, is presented below: Remaining nine months of 2018 $ 1,847 Year ending December 31, 2019 1,843 Year ending December 31, 2020 95 $ 3,785 |
Capital Lease Obligations (Tabl
Capital Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Maturities of Outstanding Debt | The maturities of all outstanding debt, consisting of the capital lease arrangements, as of March 31, 2018, are as follows: Year ending December 31, 2018 $ 1,098 December 31, 2019 1,137 December 31, 2020 538 December 31, 2021 12 2,785 Less: Current portion (1,438 ) Non-current portion of debt $ 1,347 |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Reserved Shares of Common Stock | As of March 31, 2018, and December 31, 2017, the Company’s amended certificate of incorporation authorizes the issuance of 142,857 shares of $0.001 par value common stock. Reserved shares of common stock are as follows: March 31, December 31, 2018 2017 Options or RSUs available for future grant under stock option plans 1,235 999 RSUs outstanding under stock option plans 531 568 Options outstanding under stock option plans 502 436 Shares available for future issuance under employee stock purchase plan 239 182 2,507 2,185 |
Equity Award Plans (Tables)
Equity Award Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 436 $ 37.60 7.04 $ 65 Options granted 71 7.40 9.94 Options forfeited and cancelled (5 ) 51.35 — Balances at March 31, 2018 502 33.19 7.15 8 Options exercisable 308 45.78 5.87 8 Options vested 308 45.77 5.88 8 Options vested and expected to vest 480 34.16 7.05 8 |
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, 2017 568 $ 14.22 RSUs granted 52 9.46 RSUs vested (19 ) 25.91 RSUs cancelled and withheld to cover taxes (70 ) 17.29 Granted and unvested at March 31, 2018 531 $ 12.92 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Assumptions Used to Estimate Fair Value of Options | For stock options granted during the three months ended March 31, 2018, the Company used the following Black-Scholes option-pricing model assumptions (there were no stock options granted during the three months ended March 31, 2017): Dividend yield — Expected volatility 56.1 % Risk-free interest rate 2.52 % Expected life of options (in years) 4.0 |
Net Loss Per Share Available 27
Net Loss Per Share Available to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Numerator: Net loss available to common stockholders $ (9,112 ) $ (6,126 ) Denominator: Weighted average number of shares, basic and diluted 5,736 5,583 Net loss per share available to common stockholders Basic and diluted net loss per common share available to common stockholders $ (1.59 ) $ (1.10 ) |
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, 2018 2017 Options to purchase common stock 502 466 Unvested RSUs 531 363 Common stock subject to repurchase — 1 Total 1,033 830 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues by Geographic Area, Based on Billing Location of Customer and Long-Lived Assets, by Geographical Areas | See Note 2 for the Company’s revenues by geographic area, based on the billing location of the customer, for the periods presented. Long-lived assets, excluding goodwill and intangible assets, by geographic area were as follows for the periods presented: March 31, December 31, 2018 2017 United States of America $ 14,112 $ 15,069 International 467 490 Total long-lived assets, net $ 14,579 $ 15,559 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018, were as follows: Remaining nine months of 2018 $ 5,735 Year ending December 31, 2019 8,028 Year ending December 31, 2020 3,684 Year ending December 31, 2021 3,454 Year ending December 31, 2022 and thereafter 2,709 $ 23,610 |
Summary of Business and Signi30
Summary of Business and Significant Accounting Policies - Additional Information (Detail) | Oct. 05, 2017shares | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)shares | Oct. 04, 2017shares | Dec. 31, 2016USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Incorporation date | Mar. 31, 2006 | |||||
Net loss | $ (9,112,000) | $ (6,126,000) | $ (31,491,000) | |||
Accumulated deficit | (232,581,000) | (227,704,000) | ||||
Cash, cash equivalents and restricted cash | $ 23,276,000 | $ 34,292,000 | $ 28,837,000 | $ 35,713,000 | ||
Common stock, shares authorized | shares | 142,857,000 | 142,857,000 | 142,857,000 | 500,000,000 | ||
Allowance for doubtful accounts | $ 3,803,000 | $ 4,028,000 | ||||
Allowance for potential customer credits | 849,000 | 799,000 | ||||
Impairment of goodwill | 0 | |||||
Impairment losses on long-lived assets | 0 | 0 | ||||
Money Market Funds [Member] | Level 1 [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Cash equivalents - money market funds | $ 9,208,000 | $ 8,831,000 | ||||
Common Stock [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Reverse stock split of common stock, description | On October 5, 2017, the Company effected a reverse stock split of its outstanding common stock. As a result of the reverse stock split, each seven outstanding shares of the Company’s common stock was combined into one outstanding share of common stock, without any change in par value. | |||||
Reverse stock split of common stock, conversion ratio | 0.143 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Reduction to accumulated deficit | $ (232,581) | $ (227,704) | |
Deferred costs to fulfill contracts, expected period of benefit | 3 years | ||
Unsatisfied performance obligations for contracts with an original expected | 1 year | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASU 2014-09 [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Reduction to accumulated deficit | $ 3,926 | $ (4,085) | |
Individual customer advances used or refunded to customer for period | 180 days |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues By Geographic Area, Based on Billing Location of Customer (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenues, net | $ 15,402 | $ 20,333 |
United States of America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues, net | 10,211 | 13,612 |
United Kingdom [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues, net | 2,110 | 2,820 |
Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues, net | $ 3,081 | $ 3,901 |
Revenues - Disaggregation of 33
Revenues - Disaggregation of Revenues By Geographic Area, Based on Billing Location of Customer (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Geographic Concentration Risk [Member] | Other [Member] | Revenue from Contract with Customer [Member] | Minimum [Member] | |
Disaggregation Of Revenue [Line Items] | |
Concentration risk, percentage | 10.00% |
Revenues - Summary of Changes i
Revenues - Summary of Changes in Balance of Advances From Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Balance | $ 519 | $ 2,003 | |
ASU 2014-09 [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Balance | 519 | $ 558 | |
Customer advances received | 1,979 | ||
Subscription revenue recognized (on a gross basis) | (1,944) | ||
Breakage revenue recognized | $ (74) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASU 2014-09 [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Balance | $ (1,445) |
Revenues - Summary of Changes35
Revenues - Summary of Changes in Balances of Deferred Costs to Obtain and Fulfill Contracts (Detail) - ASU 2014-09 [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Costs to Obtain Contracts [Member] | |
Capitalized Contract Cost [Line Items] | |
Balances at January 1, 2018 | $ 1,760 |
Deferred costs | 257 |
Amortization | (432) |
Balances at March 31, 2018 | 1,585 |
Costs to Fulfill Contracts [Member] | |
Capitalized Contract Cost [Line Items] | |
Balances at January 1, 2018 | 880 |
Deferred costs | 115 |
Amortization | (173) |
Balances at March 31, 2018 | $ 822 |
Revenues - Summary of Impacted
Revenues - Summary of Impacted by Adoption of ASC 606 in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Prepaid expenses and other current assets | $ 5,652 | $ 3,989 | |
Other non-current assets | 2,357 | 1,504 | |
Liabilities | |||
Accrued expenses and other current liabilities | 8,474 | 10,474 | |
Shareholders' equity | |||
Accumulated deficit | (232,581) | $ (227,704) | |
Balances Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | |||
Assets | |||
Prepaid expenses and other current assets | 4,097 | ||
Other non-current assets | 1,505 | ||
Liabilities | |||
Accrued expenses and other current liabilities | 9,993 | ||
Shareholders' equity | |||
Accumulated deficit | (236,507) | ||
Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [Member] | |||
Assets | |||
Prepaid expenses and other current assets | 1,555 | ||
Other non-current assets | 852 | ||
Liabilities | |||
Accrued expenses and other current liabilities | (1,519) | ||
Shareholders' equity | |||
Accumulated deficit | $ 3,926 | $ (4,085) |
Revenues - Summary of Impacte37
Revenues - Summary of Impacted of the Adoption of ASC 606 in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenues, net | $ 15,402 | $ 20,333 | |
Cost of revenues | 7,572 | 8,324 | |
Gross profit | 7,830 | 12,009 | |
Operating expenses | |||
Sales and marketing | 7,381 | 6,676 | |
Research and development | 6,155 | 7,138 | |
General and administrative | 3,377 | 4,177 | |
Total operating expenses | 16,913 | 17,991 | |
Loss from operations | (9,083) | (5,982) | |
Other income, net | 295 | 262 | |
Loss before provision for income taxes | (8,788) | (5,720) | |
Provision for income taxes | (324) | (406) | |
Net loss | $ (9,112) | $ (6,126) | $ (31,491) |
Net loss per share available to common stockholders, basic and diluted (Note 11) | $ (1.59) | $ (1.10) | |
Balances Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | |||
Revenues, net | $ 15,328 | ||
Cost of revenues | 7,514 | ||
Gross profit | 7,814 | ||
Operating expenses | |||
Sales and marketing | 7,206 | ||
Research and development | 6,155 | ||
General and administrative | 3,377 | ||
Total operating expenses | 16,738 | ||
Loss from operations | (8,924) | ||
Other income, net | 295 | ||
Loss before provision for income taxes | (8,629) | ||
Provision for income taxes | (324) | ||
Net loss | $ (8,953) | ||
Net loss per share available to common stockholders, basic and diluted (Note 11) | $ (1.56) | ||
Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [Member] | |||
Revenues, net | $ 74 | ||
Cost of revenues | 58 | ||
Gross profit | 16 | ||
Operating expenses | |||
Sales and marketing | 175 | ||
Total operating expenses | 175 | ||
Loss from operations | (159) | ||
Loss before provision for income taxes | (159) | ||
Net loss | $ (159) | ||
Net loss per share available to common stockholders, basic and diluted (Note 11) | $ (0.03) |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 60,833 | $ 60,071 |
Less: Accumulated depreciation and amortization | (46,254) | (44,512) |
Property and equipment, net | 14,579 | 15,559 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 29,987 | 29,938 |
Computer Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life of property and equipment | 3 years | |
Computer Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life of property and equipment | 4 years | |
Software, Including Internally Developed Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life of property and equipment | 3 years | |
Property and equipment, gross | $ 24,082 | 23,389 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life of property and equipment | Shorter of useful life or lease term | |
Property and equipment, gross | $ 4,634 | 4,617 |
Office Equipment, Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,130 | $ 2,127 |
Office Equipment, Furniture and Fixtures [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life of property and equipment | 3 years | |
Office Equipment, Furniture and Fixtures [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life of property and equipment | 5 years |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Depreciation and amortization of internally developed software | $ 1,755 | $ 2,124 |
Balance Sheet Components - Co40
Balance Sheet Components - Components of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued salary and payroll-related expenses | $ 3,225 | $ 4,372 |
Accrued liabilities | 2,147 | 2,161 |
Customer advances | 519 | 2,003 |
Deferred rent | 489 | 475 |
Advanced billings | 417 | 459 |
Sales and use tax payable | 338 | 341 |
Income taxes payable | 290 | 142 |
Other | 1,049 | 521 |
Accrued expenses and other current liabilities | $ 8,474 | $ 10,474 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Impairment of goodwill | $ 0 | |
Amortization of intangible assets | $ 690,000 | $ 730,000 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Schedule of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Balance at December 31, 2017 | $ 16,768 |
Foreign currency translation adjustments | 48 |
Balance at March 31, 2018 | $ 16,816 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 14,670 | $ 14,670 |
Less: accumulated amortization | (10,885) | (10,195) |
Intangible assets, net | 3,785 | 4,475 |
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 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Schedule of Future Estimated Amortization Costs of Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remaining nine months of 2018 | $ 1,847 | |
Year ending December 31, 2019 | 1,843 | |
Year ending December 31, 2020 | 95 | |
Intangible assets, net | $ 3,785 | $ 4,475 |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Detail) - 2018 Restructuring Plan [Member] - USD ($) $ in Thousands | Jan. 24, 2018 | Mar. 31, 2018 |
Restructuring Cost And Reserve [Line Items] | ||
Restructing plan, headcount reduction percentage | 11.00% | |
Expected pre-tax restructuring related expenses | $ 930 | |
Restructuring related expenses | 862 | |
Restructuring related expenses incurred and unpaid | $ 138 |
Capital Lease Obligations - Add
Capital Lease Obligations - Additional Information (Detail) - Capital Lease for Acquisition of Computer Equipment [Member] $ in Thousands | Mar. 31, 2018USD ($)Installment | Dec. 31, 2017USD ($) |
Line of Credit Facility [Line Items] | ||
Net book value of equipment under capital leases | $ | $ 2,549 | $ 2,861 |
Remaining principal balance payable | $ | $ 2,785 | $ 3,103 |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Effective annual interest rate | 5.20% | |
Number of monthly installments | Installment | 36 | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Effective annual interest rate | 7.90% | |
Number of monthly installments | Installment | 48 |
Capital Lease Obligations - Mat
Capital Lease Obligations - Maturities of Outstanding Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
December 31, 2018 | $ 1,098 | |
December 31, 2019 | 1,137 | |
December 31, 2020 | 538 | |
December 31, 2021 | 12 | |
Total | 2,785 | |
Current portion | (1,438) | $ (1,416) |
Non-current portion of debt | $ 1,347 | $ 1,687 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 | Oct. 05, 2017 | Oct. 04, 2017 |
Equity [Abstract] | ||||
Common stock, shares authorized | 142,857,000 | 142,857,000 | 142,857,000 | 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, 2018 | Dec. 31, 2017 | Feb. 28, 2013 |
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 2,507 | 2,185 | |
Options or RSUs Available for Future Grant [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 1,235 | 999 | |
RSUs [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 531 | 568 | |
Options Outstanding [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 502 | 436 | |
Shares Available for Future Issuance under Employee Stock Purchase Plan [Member] | |||
Class Of Stock [Line Items] | |||
Reserved shares of Common Stock | 239 | 182 | 143 |
Equity Award Plans - Additional
Equity Award Plans - Additional Information (Detail) - shares | Jan. 02, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Feb. 28, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Reserved shares of Common Stock | 2,507,000 | 2,185,000 | |||
2013 Employee Stock Purchase Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Reserved shares of Common Stock | 239,000 | 182,000 | 143,000 | ||
Percentage of shares outstanding under Equity Award Plan | 1.00% | ||||
Increase in common stock available for issuance | 57,000 | ||||
Percentage of fair market value of common stock of lesser | 85.00% | ||||
Number of shares reserved under Employee Stock Purchase Plan | 100,000 | ||||
Shares issued under 2013 ESPP | 0 | 0 | |||
2013 Equity Incentive Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Reserved shares of Common Stock | 643,000 | ||||
Percentage of shares outstanding under Equity Award Plan | 5.00% | ||||
Increase in common stock available for issuance | 286,000 |
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, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Shares, Options Outstanding, Balance | 436 | |
Number of Shares, Options Granted | 71 | |
Number of Shares, Options Forfeited and Cancelled | (5) | |
Number of Shares, Options Outstanding, Balance | 502 | 436 |
Number of Shares, Options Exercisable, Balance | 308 | |
Number of Shares, Options Vested, Balance | 308 | |
Number of Shares, Options Vested and Expected to Vest, Balance | 480 | |
Weighted Average Exercise Price Per Share, Options Outstanding, Balance | $ 37.60 | |
Weighted Average Exercise Price Per Share, Options granted | 7.40 | |
Weighted Average Exercise Price Per Share, Options forfeited and cancelled | 51.35 | |
Weighted Average Exercise Price Per Share, Options Outstanding, Balance | 33.19 | $ 37.60 |
Weighted Average Exercise Price Per Share, Options exercisable, Balance | 45.78 | |
Weighted Average Exercise Price Per Share, Options vested, Balance | 45.77 | |
Weighted Average Exercise Price Per Share, Options vested and expected to vest, Balance | $ 34.16 | |
Weighted Average Remaining Contractual Term, Options Outstanding (in years) | 7 years 1 month 24 days | 7 years 14 days |
Weighted Average Remaining Contractual Term, Options granted (in years) | 9 years 11 months 8 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 10 months 13 days | |
Weighted Average Remaining Contractual Term, Options vested (in years) | 5 years 10 months 17 days | |
Weighted Average Remaining Contractual Term, Options vested and expected to vest (in years) | 7 years 18 days | |
Aggregate Intrinsic Value, Options Outstanding, Balance | $ 8 | $ 65 |
Aggregate Intrinsic Value, Options exercisable, Balance | 8 | |
Aggregate Intrinsic Value, Options vested, Balance | 8 | |
Aggregate Intrinsic Value, Options vested and expected to vest, Balance | $ 8 |
Equity Award Plans - Summary 52
Equity Award Plans - Summary of RSUs Granted and Unvested under the 2013 Plan (Detail) shares in Thousands | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of RSUs, Granted and unvested, Beginning balance | shares | 568 |
Number of RSUs, granted | shares | 52 |
Number of RSUs, vested | shares | (19) |
Number of RSUs, cancelled and withheld to cover taxes | shares | (70) |
Number of RSUs, Granted and unvested, Ending balance | shares | 531 |
Weighted Average Grant Date Fair Value Per Unit, RSUs Granted and unvested, Beginning balance | $ / shares | $ 14.22 |
Weighted Average Grant Date Fair Value Per Unit, RSUs granted | $ / shares | 9.46 |
Weighted Average Grant Date Fair Value Per Unit, RSUs vested | $ / shares | 25.91 |
Weighted Average Grant Date Fair Value Per Unit, RSUs cancelled and withheld to cover taxes | $ / shares | 17.29 |
Weighted Average Grant Date Fair Value Per Unit, RSUs Granted and unvested, Ending balance | $ / shares | $ 12.92 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1,028,000 | $ 1,842,000 |
Stock options granted | 0 | |
Exercises of stock options | 0 | $ 0 |
Unrecognized compensation cost related to stock options | $ 857,000 | |
Options Available for Future Grant [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Recognized weighted-average period | 2 years 1 month 6 days | |
RSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Recognized weighted-average period | 2 years | |
Unrecognized compensation cost related to RSUs | $ 5,188,000 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Estimate Fair Value of Options (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Dividend yield | 0.00% |
Expected volatility | 56.10% |
Risk-free interest rate | 2.52% |
Expected life of options (in years) | 4 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Schedule Of Income Taxes [Line Items] | |||
Income tax expense | $ 324,000 | $ 406,000 | |
Pre-tax loss | 8,788,000 | 5,720,000 | |
Income tax benefit recognized with respect to losses incurred | 0 | ||
Income tax expense with respect to earnings | 0 | ||
Interest or penalties related to uncertain tax positions | $ 0 | $ 0 | |
Federal corporate income tax rate | 21.00% | 35.00% | |
Re-measurement of deferred tax assets change in tax rate reduced amount | $ 18,696,000 | ||
Re-measurement of deferred tax liabilities change in tax rate reduced amount | 4,394,000 | ||
Adjustment to valuation allowance due to impact of tax cuts and jobs act | $ 14,302,000 | ||
BEAT provisions minimum tax | 10.00% | ||
BEAT provisions description | BEAT does not apply to corporations with annual gross receipts for the three-taxable-year period, ending with the preceding taxable year, of less than $500,000. | ||
BEAT provisions maximum limit of annual gross receipts | $ 500,000,000 | ||
Tax Years Beginning after 2017 [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
BEAT provisions minimum tax | 5.00% | ||
Tax Years Beginning after 2018 [Member] | |||
Schedule Of Income Taxes [Line Items] | |||
BEAT provisions minimum tax | 10.00% |
Net Loss Per Share Available 56
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 | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Numerator: | |||
Net loss available to common stockholders | $ (9,112) | $ (6,126) | $ (31,491) |
Denominator: | |||
Weighted average number of shares, basic and diluted | 5,736 | 5,583 | |
Net loss per share available to common stockholders | |||
Basic and diluted net loss per common share available to common stockholders | $ (1.59) | $ (1.10) |
Net Loss Per Share Available 57
Net Loss Per Share Available to Common Stockholders - Potential Common Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares outstanding | 1,033 | 830 |
Unvested RSUs [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares outstanding | 531 | 363 |
Options to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares outstanding | 502 | 466 |
Common Stock Subject to Repurchase [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares outstanding | 0 | 1 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018Segment | |
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 | Mar. 31, 2018 | Dec. 31, 2017 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets, net | $ 14,579 | $ 15,559 |
United States of America [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets, net | 14,112 | 15,069 |
International [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets, net | $ 467 | $ 490 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rent expense | $ 2,119 | $ 2,080 | |
Liabilities obligations | $ 0 | $ 0 |
Commitments and Contingencies61
Commitments and Contingencies - Annual Future Minimum Payments under Operating Leases (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining nine months of 2018 | $ 5,735 |
Year ending December 31, 2019 | 8,028 |
Year ending December 31, 2020 | 3,684 |
Year ending December 31, 2021 | 3,454 |
Year ending December 31, 2022 and thereafter | 2,709 |
Future minimum lease payments for significant operating leases | $ 23,610 |