Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 13, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Limelight Networks, Inc. | |
Document Type | 10-Q | |
Entity Central Index Key | 0001391127 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-33508 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1677033 | |
Entity Address, Address Line One | 1465 North Scottsdale Road | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Scottsdale | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85257 | |
City Area Code | 602 | |
Local Phone Number | 850-5000 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | LLNW | |
Security Exchange Name | NASDAQ | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 122,072,457 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 18,200 | $ 18,335 |
Accounts receivable, net | 45,246 | 34,476 |
Income taxes receivable | 68 | 82 |
Prepaid expenses and other current assets | 10,241 | 9,920 |
Total current assets | 73,755 | 62,813 |
Property and equipment, net | 48,908 | 46,136 |
Operating lease right of use assets | 11,449 | 12,842 |
Marketable securities, less current portion | 40 | 40 |
Deferred income taxes | 1,328 | 1,319 |
Goodwill | 77,113 | 77,102 |
Other assets | 7,915 | 9,117 |
Total assets | 220,508 | 209,369 |
Current liabilities: | ||
Accounts payable | 17,004 | 12,020 |
Deferred revenue | 934 | 976 |
Operating lease liability obligations | 2,390 | 2,056 |
Income taxes payable | 169 | 178 |
Other current liabilities | 17,028 | 13,398 |
Total current liabilities | 37,525 | 28,628 |
Operating lease liability obligations, less current portion | 12,316 | 13,488 |
Deferred income taxes | 283 | 239 |
Deferred revenue, less current portion | 265 | 161 |
Other long-term liabilities | 304 | 316 |
Total liabilities | 50,693 | 42,832 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Convertible preferred stock, $0.001 par value; 7,500 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 300,000 shares authorized; 121,692 and 118,368 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 122 | 118 |
Additional paid-in capital | 541,363 | 530,285 |
Accumulated other comprehensive loss | (10,031) | (9,210) |
Accumulated deficit | (361,639) | (354,656) |
Total stockholders’ equity | 169,815 | 166,537 |
Total liabilities and stockholders’ equity | $ 220,508 | $ 209,369 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized | 7,500,000 | 7,500,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 121,692,000 | 118,368,000 |
Common stock, shares outstanding | 121,692,000 | 118,368,000 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 58,546 | $ 45,904 | $ 115,558 | $ 89,184 |
Cost of revenue: | ||||
Cost of services | 29,389 | 22,769 | 60,502 | 45,710 |
Depreciation — network | 5,360 | 4,628 | 10,510 | 8,944 |
Total cost of revenue | 34,749 | 27,397 | 71,012 | 54,654 |
Gross profit | 23,797 | 18,507 | 44,546 | 34,530 |
Operating expenses: | ||||
General and administrative | 8,187 | 8,340 | 16,069 | 15,875 |
Sales and marketing | 10,929 | 10,994 | 22,823 | 21,966 |
Research and development | 5,572 | 6,013 | 11,189 | 11,915 |
Depreciation and amortization | 323 | 127 | 665 | 372 |
Total operating expenses | 25,011 | 25,474 | 50,746 | 50,128 |
Operating loss | (1,214) | (6,967) | (6,200) | (15,598) |
Other income (expense): | ||||
Interest expense | (71) | (10) | (82) | (20) |
Interest income | 6 | 110 | 31 | 321 |
Other, net | (312) | (70) | (421) | (76) |
Total other (expense) income | (377) | 30 | (472) | 225 |
Loss before income taxes | (1,591) | (6,937) | (6,672) | (15,373) |
Income tax expense | 136 | 255 | 311 | 378 |
Net loss | $ (1,727) | $ (7,192) | $ (6,983) | $ (15,751) |
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.01) | $ (0.06) | $ (0.06) | $ (0.14) |
Diluted (in dollars per share) | $ (0.01) | $ (0.06) | $ (0.06) | $ (0.14) |
Weighted average shares used in per share calculation: | ||||
Basic (shares) | 120,230 | 115,275 | 119,597 | 114,843 |
Diluted (shares) | 120,230 | 115,275 | 119,597 | 114,843 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (1,727) | $ (7,192) | $ (6,983) | $ (15,751) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain on investments | 0 | 8 | 0 | 37 |
Foreign currency translation (loss) gain | 518 | 166 | (821) | 513 |
Other comprehensive income (loss) | 518 | 174 | (821) | 550 |
Comprehensive loss | $ (1,209) | $ (7,018) | $ (7,804) | $ (15,201) |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance, shares at Dec. 31, 2018 | 114,246,000 | ||||
Beginning balance at Dec. 31, 2018 | $ 165,151 | $ 114 | $ 513,682 | $ (10,033) | $ (338,612) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (15,751) | (15,751) | |||
Change in unrealized loss on available-for-sale investments, net of taxes | 37 | 37 | |||
Foreign currency translation adjustment, net of taxes | 513 | 513 | |||
Exercise of common stock options, shares | 5,000 | ||||
Exercise of common stock options | 8 | 8 | |||
Vesting of restricted stock units, shares | 1,566,000 | ||||
Vesting of restricted stock units | 0 | $ 2 | (2) | ||
Restricted stock units surrendered in lieu of withholding taxes, shares | (506,000) | ||||
Restricted stock units surrendered in lieu of withholding taxes | (1,513) | (1,513) | |||
Issuance of common stock under employee stock purchase plan, shares | 449,000 | ||||
Issuance of common stock under employee stock purchase plan | 1,095 | 1,095 | |||
Share-based compensation | 7,105 | 7,105 | |||
Ending balance, shares at Jun. 30, 2019 | 115,760,000 | ||||
Ending balance at Jun. 30, 2019 | 156,645 | $ 116 | 520,375 | (9,483) | (354,363) |
Beginning balance, shares at Mar. 31, 2019 | 114,874,000 | ||||
Beginning balance at Mar. 31, 2019 | 159,538 | $ 115 | 516,251 | (9,657) | (347,171) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (7,192) | (7,192) | |||
Change in unrealized loss on available-for-sale investments, net of taxes | 8 | 8 | |||
Foreign currency translation adjustment, net of taxes | 166 | 166 | |||
Vesting of restricted stock units, shares | 638,000 | ||||
Vesting of restricted stock units | 0 | $ 1 | (1) | ||
Restricted stock units surrendered in lieu of withholding taxes, shares | (201,000) | ||||
Restricted stock units surrendered in lieu of withholding taxes | (619) | (619) | |||
Issuance of common stock under employee stock purchase plan, shares | 449,000 | ||||
Issuance of common stock under employee stock purchase plan | 1,095 | 1,095 | |||
Share-based compensation | 3,649 | 3,649 | |||
Ending balance, shares at Jun. 30, 2019 | 115,760,000 | ||||
Ending balance at Jun. 30, 2019 | $ 156,645 | $ 116 | 520,375 | (9,483) | (354,363) |
Beginning balance, shares at Dec. 31, 2019 | 118,368,000 | 118,368,000 | |||
Beginning balance at Dec. 31, 2019 | $ 166,537 | $ 118 | 530,285 | (9,210) | (354,656) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (6,983) | (6,983) | |||
Change in unrealized loss on available-for-sale investments, net of taxes | 0 | ||||
Foreign currency translation adjustment, net of taxes | (821) | (821) | |||
Exercise of common stock options, shares | 1,860,000 | ||||
Exercise of common stock options | 5,011 | $ 2 | 5,009 | ||
Vesting of restricted stock units, shares | 1,745,000 | ||||
Vesting of restricted stock units | 7 | $ 2 | 5 | ||
Restricted stock units surrendered in lieu of withholding taxes, shares | (581,000) | ||||
Restricted stock units surrendered in lieu of withholding taxes | (2,945) | (2,945) | |||
Issuance of common stock under employee stock purchase plan, shares | 300,000 | ||||
Issuance of common stock under employee stock purchase plan | 1,074 | 1,074 | |||
Share-based compensation | $ 7,935 | 7,935 | |||
Ending balance, shares at Jun. 30, 2020 | 121,692,000 | 121,692,000 | |||
Ending balance at Jun. 30, 2020 | $ 169,815 | $ 122 | 541,363 | (10,031) | (361,639) |
Beginning balance, shares at Mar. 31, 2020 | 119,642,000 | ||||
Beginning balance at Mar. 31, 2020 | 163,864 | $ 120 | 534,205 | (10,549) | (359,912) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (1,727) | (1,727) | |||
Change in unrealized loss on available-for-sale investments, net of taxes | 0 | ||||
Foreign currency translation adjustment, net of taxes | 518 | 518 | |||
Exercise of common stock options, shares | 1,162,000 | ||||
Exercise of common stock options | 2,872 | $ 1 | 2,871 | ||
Vesting of restricted stock units, shares | 869,000 | ||||
Vesting of restricted stock units | 7 | $ 1 | 6 | ||
Restricted stock units surrendered in lieu of withholding taxes, shares | (281,000) | ||||
Restricted stock units surrendered in lieu of withholding taxes | (1,430) | (1,430) | |||
Issuance of common stock under employee stock purchase plan, shares | 300,000 | ||||
Issuance of common stock under employee stock purchase plan | 1,074 | 1,074 | |||
Share-based compensation | $ 4,637 | 4,637 | |||
Ending balance, shares at Jun. 30, 2020 | 121,692,000 | 121,692,000 | |||
Ending balance at Jun. 30, 2020 | $ 169,815 | $ 122 | $ 541,363 | $ (10,031) | $ (361,639) |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||
Net loss | $ (6,983) | $ (15,751) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 11,175 | 9,316 |
Share-based compensation | 10,315 | 7,105 |
Foreign currency remeasurement gain | (140) | (125) |
Deferred income taxes | 15 | 31 |
Gain on sale of property and equipment | 0 | (51) |
Accounts receivable charges | 313 | 694 |
Amortization of premium on marketable securities | 0 | 20 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (11,083) | (5,751) |
Prepaid expenses and other current assets | (447) | 108 |
Income taxes receivable | 13 | (2) |
Other assets | 1,747 | (3,422) |
Accounts payable and other current liabilities | 6,937 | 6,473 |
Deferred revenue | 63 | (445) |
Income taxes payable | 2 | 143 |
Payments related to litigation, net | 0 | (3,040) |
Other long term liabilities | (11) | (152) |
Net cash provided by (used in) operating activities | 11,916 | (4,849) |
Investing activities | ||
Purchases of marketable securities | 0 | (10,279) |
Sale and maturities of marketable securities | 0 | 31,153 |
Purchases of property and equipment | (14,948) | (16,474) |
Proceeds from sale of property and equipment | 0 | 46 |
Net cash used in investing activities | (14,948) | 4,446 |
Financing activities | ||
Payments of employee tax withholdings related to restricted stock vesting | (2,945) | (1,513) |
Proceeds from employee stock plans | 6,092 | 1,103 |
Net cash provided by (used in) financing activities | 3,147 | (410) |
Effect of exchange rate changes on cash and cash equivalents | (250) | 128 |
Net decrease in cash and cash equivalents | (135) | (685) |
Cash and cash equivalents, beginning of period | 18,335 | 25,383 |
Cash and cash equivalents, end of period | 18,200 | 24,698 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest | 82 | 20 |
Cash paid during the period for income taxes, net of refunds | $ 261 | $ 213 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Limelight Networks Inc., a provider of digital content delivery, online video delivery, cloud security, edge computing and cloud storage services, empowers customers to provide exceptional digital experiences. Limelight’s edge services platform includes a globally distributed, high performance private network, intelligent software, and expert support services that enable current and future workflows. We were incorporated in Delaware in 2003, and have operated in the Phoenix metropolitan area since 2001 and elsewhere throughout the United States since 2003. We began international operations in 2004. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim periods presented and of a normal recurring nature. This quarterly report on Form 10-Q should be read in conjunction with our audited financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended December 31, 2019. All information is presented in thousands, except per share amounts and where specifically noted. The consolidated financial statements include accounts of Limelight and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. In addition, certain other reclassifications have been made to prior year amounts to conform to the current year presentation. Use of Estimates The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results and outcomes may differ from those estimates. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2020, or for any future periods. Recent Accounting Standards Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, which requires measurement and recognition of expected credit losses for financial assets held. The standard is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures and there was no cumulative-effect adjustment required. In January 2017, the FASB issued ASU 2017-04, which simplifies the accounting for goodwill impairment. The updated guidance eliminates Step 2 of the impairment test, which requires entities to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value, determined in Step 1. We adopted this guidance effective January 1, 2020, using a prospective approach. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, which removes, modifies and adds to the disclosure requirements on fair value measurements in Topic 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this updated guidance and delay adoption of the additional disclosures until their effective date. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15 , to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments . We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. For contracts that contain minimum commitments over the contractual term, we estimate an amount of variable consideration by using either the expected value method or the most likely amount method. We include estimates of variable consideration in revenue only when we have a high degree of confidence that revenue will not be reversed in a subsequent reporting period. We believe that the expected value method is the most appropriate estimate of the amount of variable consideration. These customers have entered into contracts with contract terms generally from one to four years. As of June 30, 2020, we have approximately $4,372 of remaining unsatisfied performance obligations. We recognized revenue of approximately $1,943 and $2,500, respectively, during the three months ended June 30, 2020 and 2019, related to these types of contracts with our customers. During the six months ended June 30, 2020 and 2019, we recognized approximately $4,097 and $5,200, respectively. We expect to recognize approximately 60% of the remaining unsatisfied performance obligations in 2020, approximately 34% in 2021, and approximately 6% in 2022. |
Accounts Receivable, net
Accounts Receivable, net | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable, net include: June 30, December 31, 2020 2019 Accounts receivable $ 46,254 $ 35,619 Less: credit allowance (170) (170) Less: allowance for doubtful accounts (838) (973) Total accounts receivable, net $ 45,246 $ 34,476 All trade receivables are reported on the Consolidated Balance Sheets at their amortized cost adjusted for any write-offs and net of allowances for credit losses. We maintain an allowance for credit losses, which represents an estimate of expected losses of our receivables considering current market conditions and estimates for supportable forecasts when appropriate. The estimate is a result of our ongoing assessments and evaluations of collectability, historical loss experience, and future expectations in estimating credit losses for our trade receivables. For trade receivables, we apply a reserve percentage to the specific age of the receivable to estimate the allowance for doubtful accounts. The reserve percentages are determined based on our historical write-off experience. Determination of the proper amount of allowance requires management to exercise judgment about the timing, frequency and severity of potential credit losses that could materially affect the provision for credit losses and, as a result, net earnings. The allowance takes into consideration numerous quantitative and qualitative factors that include receivable type, historical loss experience, delinquency trends, collection experience, current economic conditions, estimates for supportable forecasts, when appropriate, and credit risk characteristics. We evaluate the credit risk of the customer when extending credit based on a combination of various financial and qualitative factors that may affect our customers’ ability to pay. These factors may include the customer’s financial condition, past payment experience, and credit bureau information. The following is a roll-forward of the allowances for doubtful accounts related to trade accounts receivable for the six months ended June 30, 2020: Six Months Ended June 30, 2020 Beginning of period 973 Provision for credit losses 313 Write-offs (448) End of period 838 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets include: June 30, December 31, 2020 2019 Prepaid bandwidth and backbone 1,553 1,717 VAT receivable 3,096 3,068 Prepaid expenses and insurance 2,208 1,685 Vendor deposits and other 3,384 3,450 Total prepaid expenses and other current assets $ 10,241 $ 9,920 |
Property and Equipment, net
Property and Equipment, net | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net include: June 30, December 31, 2020 2019 Network equipment $ 132,298 $ 126,975 Computer equipment and software 7,307 7,603 Furniture and fixtures 1,893 1,906 Leasehold improvements 7,925 7,888 Other equipment 31 54 Total property and equipment 149,454 144,426 Less: accumulated depreciation (100,546) (98,290) Total property and equipment, net $ 48,908 $ 46,136 Cost of revenue depreciation expense related to property and equipment was approximately $5,360 and $4,628, respectively, for the three months ended June 30, 2020 and 2019, respectively. For the six months ended June 30, 2020 and 2019, respectively, cost of revenue depreciation expense related to property and equipment was approximately $10,510 and $8,944, respectively. |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities include: June 30, December 31, 2020 2019 Accrued compensation and benefits $ 8,832 $ 4,918 Accrued cost of revenue 4,722 4,176 Other accrued expenses 3,474 4,304 Total other current liabilities $ 17,028 $ 13,398 |
Line of Credit
Line of Credit | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit In April 2020, we entered into a Fifth Amendment (Fifth Amendment) to the Loan and Security Agreement (the Credit Agreement) with Silicon Valley Bank (SVB) originally entered into in November 2015. Under the Fifth Amendment, the maximum principal commitment amount remained at $20,000. Our borrowing capacity is the lesser of the commitment amount or 80% of eligible accounts receivable. All outstanding borrowings owed under the Credit Agreement become due and payable no later than the extended final maturity date of November 2, 2022. As of June 30, 2020, and December 31, 2019, we had no outstanding borrowings, and we had availability under the Credit Agreement of approximately $20,000. As of June 30, 2020, borrowings under the Credit Agreement bear interest at the current prime rate minus 0.25%. In the event of default, obligations shall bear interest at a rate per annum that is 3% above the then applicable rate. Amendment fees and other commitment fees are included in interest expense. During the three months ended June 30, 2020 and 2019, there was no interest expense, and fees expense and amortization was $71 and $10, respectively. For the six months ended June 30, 2020 and 2019, there was no interest expense, and fees expense and amortization was $82 and $20, respectively. Any borrowings are secured by essentially all of our domestic personal property, with a negative pledge on intellectual property. SVB’s security interest in our foreign subsidiaries is limited to 65% of the voting stock of each such foreign subsidiary. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters We are subject to various legal proceedings and claims, either asserted or unasserted, arising in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not believe the outcome of any of these matters will have a material adverse effect on our business, financial position, results of operations, or cash flows and accordingly, no legal contingencies were accrued as of June 30, 2020 and December 31, 2019. Litigation relating to the content delivery services industry is not uncommon, and we are, and from time to time have been, subject to such litigation. No assurances can be given with respect to the extent or outcome of any such litigation in the future. Taxes We are subject to indirect taxation in various states and foreign jurisdictions. Laws and regulations that apply to communications and commerce conducted over the Internet are becoming more prevalent, both in the United States and internationally, and may impose additional burdens on us conducting business online or providing Internet-related services. Increased regulation could negatively affect our business directly, as well as the businesses of our customers, which could reduce their demand for our services. For example, tax authorities in various states and abroad may impose taxes on the Internet-related revenue we generate based on regulations currently being applied to similar but not directly comparable industries. There are many transactions and calculations where the ultimate tax determination is uncertain. In addition, domestic and international taxation laws are subject to change. In the future, we may come under audit, which could result in changes to our tax estimates. We believe we maintain adequate tax reserves, that are not material in amount, to offset potential liabilities that may arise upon audit. Although we believe our tax estimates and associated reserves are reasonable, the final determination of tax audits and any related litigation could be materially different than the amounts established for tax contingencies. To the extent these estimates ultimately prove to be inaccurate, the associated reserves would be adjusted, resulting in the recording of a benefit or expense in the period in which a change in estimate or a final determination is made. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share We calculate basic and diluted loss per weighted average share. We use the weighted-average number of shares of common stock outstanding during the period for the computation of basic loss per share. Diluted loss per share include the dilutive effect of all potentially dilutive common stock, including awards granted under our equity incentive compensation plans in the weighted-average number of shares of common stock outstanding. The following table sets forth the components used in the computation of basic and diluted net loss per share for the periods indicated (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net loss $ (1,727) $ (7,192) $ (6,983) $ (15,751) Basic weighted average outstanding shares of common stock 120,230 115,275 119,597 114,843 Basic weighted average outstanding shares of common stock 120,230 115,275 119,597 114,843 Dilutive effect of stock options, restricted stock units, and other equity incentive plans — — — — Diluted weighted average outstanding shares of common stock 120,230 115,275 119,597 114,843 Basic net loss per share $ (0.01) $ (0.06) $ (0.06) $ (0.14) Diluted net loss per share: $ (0.01) $ (0.06) $ (0.06) $ (0.14) For the three and six months ended June 30, 2020 and 2019, respectively, the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Employee stock purchase plan 68 128 68 128 Stock options 6,510 2,425 6,232 2,243 Restricted stock units 1,764 779 1,846 890 8,342 3,332 8,146 3,261 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock On March 14, 2017, our board of directors authorized a $25,000 share repurchase program. Any shares repurchased under this program will be canceled and returned to authorized but unissued status. During the six months ended June 30, 2020 and 2019, we did not repurchase any shares under the repurchase program. As of June 30, 2020, there remained $21,200 under this share repurchase program. Amended and Restated Equity Incentive Plan We established the 2007 Equity Incentive Plan, or the 2007 Plan, which allows for the grant of equity, including stock options and restricted stock unit awards. In June 2016, our stockholders approved the Amended and Restated 2007 Equity Incentive Plan, or the Restated 2007 Plan, which amended and restated the 2007 Plan. Approval of the Restated 2007 Plan replaced the terms and conditions of the 2007 Plan with the terms and conditions of the Restated 2007 Plan and extended the term of the plan to April 2026. There was no increase in the aggregate amount of shares available for issuance. The total number of shares authorized for issuance under the Restated 2007 Plan as of June 30, 2020 was approximately 10,525. Employee Stock Purchase Plan In June 2013, our stockholders approved our 2013 Employee Stock Purchase Plan (ESPP), authorizing the issuance of 4,000 shares. In May 2019, our stockholders approved the adoption of Amendment 1 to the ESPP. Amendment 1 increased the number of shares authorized to 9,000 shares (an increase of 5,000 shares) and amended the maximum number of shares of common stock that an eligible employee may be permitted to purchase during each offering period to be 5 shares. The ESPP allows participants to purchase our common stock at a 15% discount of the lower of the beginning or end of the offering period using the closing price on that day. During the three and six months ended June 30, 2020, we issued 300 shares under the ESPP. Total cash proceeds from the purchase of shares under the ESPP was approximately $1,075. As of June 30, 2020, shares reserved for issuance to employees under this plan totaled 3,940, and we held employee contributions of $299 (included in other current liabilities) for future purchases under the ESPP. Preferred Stock Our board of directors has authorized the issuance of up to 7,500 shares of preferred stock at June 30, 2020. The preferred stock may be issued in one or more series pursuant to a resolution or resolutions providing for such issuance duly adopted by the board of directors. As of June 30, 2020, the board of directors had not adopted any resolutions for the issuance of preferred stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in the components of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2020, was as follows: Foreign Currency Balance, December 31, 2019 $ (9,210) Other comprehensive loss before reclassifications (821) Amounts reclassified from accumulated other comprehensive — Net current period other comprehensive loss (821) Balance, June 30, 2020 $ (10,031) |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The following table summarizes the components of share-based compensation expense included in our consolidated statements of operations: Three Months Ended Six Months Ended 2020 2019 2020 2019 Share-based compensation expense by type: Stock options $ 1,071 $ 1,044 $ 2,119 $ 2,086 Restricted stock units 3,819 2,435 7,700 4,685 ESPP 361 170 496 334 Total share-based compensation expense $ 5,251 $ 3,649 $ 10,315 $ 7,105 Share-based compensation expense: Cost of services $ 792 $ 377 $ 1,555 $ 788 General and administrative expense 2,257 2,140 4,498 4,234 Sales and marketing expense 1,322 598 2,550 1,082 Research and development expense 880 534 1,712 1,001 Total share-based compensation expense $ 5,251 $ 3,649 $ 10,315 $ 7,105 Unrecognized share-based compensation expense totaled approximately $21,132 at June 30, 2020, of which $6,871 related to stock options and $14,261 related to restricted stock units. We currently expect to recognize share-based compensation expense of $6,446 during the remainder of 2020, $8,964 in 2021 and the remainder thereafter based on scheduled vesting of the stock options and restricted stock units outstanding at June 30, 2020. We have recorded $2,376 of share based compensation expense during the six months ended June 30, 2020, related to restricted stock units issued and expected to be issued as part of our annual corporate bonus plan. |
Operating Leases - Right of Use
Operating Leases - Right of Use Assets and Purchase Commitments | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases - Right of Use Assets and Purchase Commitments | Operating Leases - Right of Use Assets and Purchase CommitmentsRight of Use Assets We have various operating leases for office space that expire through 2030. Below is a summary of our right of use assets and liabilities as of June 30, 2020. Right-of-use assets $ 11,449 Lease liability obligations, current $ 2,390 Lease liability obligations, less current portion 12,316 Total lease liability obligations $ 14,706 Weighted-average remaining lease term 8.3 years Weighted-average discount rate 5.05 % During the three months ended June 30, 2020, we recognized approximately $794 in operating lease costs. Operating lease costs of $118 are included in cost of revenue, and $676 are included in operating expenses in our consolidated statements of operations. During the three months ended June 30, 2020, cash paid for operating leases was approximately $472. For the six months ended June 30, 2020, we recognized approximately $1,598 in operating lease costs. Operating lease costs of $249 are included in cost of revenue, and $1,349 are included in operating expenses in our consolidated statements of operations. For the six months ended June 30, 2020, cash paid for operating leases was approximately $965. During the three months ended June 30, 2019, we recognized approximately $977 in operating lease costs. Operating lease costs of $147 are included in cost of revenue, and $830 are included in operating expenses in our consolidated statements of operations. During the three months ended June 30, 2019, cash paid for operating leases was approximately $464. For the six months ended June 30, 2019, we recognized approximately $1,943 in operating lease costs. Operating lease costs of $291 are included in cost of revenue, and $1,652 are included in operating expenses in our consolidated statements of operations. For the six months ended June 30, 2019, cash paid for operating leases was approximately $1,052. Approximate future minimum lease payments for our right of use assets over the remaining lease periods as of June 30, 2020, are as follows: Remainder of 2020 $ 1,405 2021 3,048 2022 2,217 2023 1,740 2024 1,441 Thereafter 8,269 Total minimum payments 18,120 Less: amount representing interest 3,414 Total $ 14,706 Purchase Commitments We have long-term commitments for bandwidth usage and co-location with various networks and Internet service providers. The following summarizes our minimum non-cancellable commitments for future periods as of June 30, 2020: Remainder of 2020 $ 20,973 2021 18,880 2022 5,739 2023 2,319 2024 344 Thereafter — Total minimum payments $ 48,255 |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations During the three and six months ended June 30, 2020, we had two customers, Amazon and Sony, who each represented 10% or more of our total revenue. During the three and six months ended June 30, 2019, we had one customer, Amazon, who represented 10% or more of our total revenue. Revenue from customers located within the United States, our country of domicile, was $35,605 for the three months ended June 30, 2020, compared to $28,087 for the three months ended June 30, 2019. For the six months ended June 30, 2020, revenue from customers located within the United States was $69,623, compared to $52,063 for the six months ended June 30, 2019. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes for the interim periods presented have been included in the accompanying consolidated financial statements on the basis of an estimated annual effective tax rate. Based on an estimated annual effective tax rate and discrete items, income tax expense for the three months ended June 30, 2020 and 2019, was $136 and $255, respectively. For the six months ended June 30, 2020 and 2019, income tax expense was $311 and $378, respectively. Income tax expense was different than the statutory income tax rate primarily due to us providing for a valuation allowance on deferred tax assets in certain jurisdictions, and the recording of state and foreign tax expense for the three month periods. We file income tax returns in jurisdictions with varying statutes of limitations. Tax years 2017 through 2019 remain subject to examination by federal tax authorities. Tax years 2016 through 2019 generally remain subject to examination by state tax authorities. As of June 30, 2020, we are not under any federal or state examination for income taxes. For the three and six months ended June 30, 2020 and 2019, there was no impact to income tax expense related to the Global Intangible Low-Taxed Income inclusion (GILTI) as a result of our net operating loss carryforwards (NOL) and valuation allowance position. We do not expect the GILTI to have a material impact on future earnings due to our NOL and valuation allowance position. |
Segment Reporting and Geographi
Segment Reporting and Geographic Areas | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Areas | Segment Reporting and Geographic Areas Our chief operating decision maker (who is our Chief Executive Officer) reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. We operate in one industry segment — content delivery and related services and we operate in three geographic areas — Americas, Europe, Middle East, and Africa (EMEA), and Asia Pacific. Revenue by geography is based on the location of the customer from which the revenue is earned. The following table sets forth our revenue by geographic area: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Americas $ 36,343 62 % $ 28,970 63 % $ 71,058 62 % $ 54,005 61 % EMEA 9,262 16 % 7,282 16 % 18,821 16 % 14,547 16 % Asia Pacific 12,941 22 % 9,652 21 % 25,679 22 % 20,632 23 % Total revenue $ 58,546 100 % $ 45,904 100 % $ 115,558 100 % $ 89,184 100 % The following table sets forth the individual countries and their respective revenue for those countries whose revenue exceeded 10% of our total revenue: Three Months Ended June 30, Six Months Ended June 30, Country / Region 2020 2019 2020 2019 United States / Americas $ 35,605 $ 28,087 $ 69,623 $ 52,063 United Kingdom / EMEA $ 7,483 $ 5,285 $ 15,077 $ 10,414 Japan / Asia Pacific $ 8,326 $ 5,682 $ 16,548 $ 11,505 The following table sets forth long-lived assets by geographic area in which the assets are located: June 30, December 31, 2020 2019 Americas $ 35,064 $ 33,450 International 13,844 12,686 Total long-lived assets $ 48,908 $ 46,136 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (U.S. GAAP) for complete financial statements. Such interim financial information is unaudited but reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the interim periods presented and of a normal recurring nature. This quarterly report on Form 10-Q should be read in conjunction with our audited financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended December 31, 2019. All information is presented in thousands, except per share amounts and where specifically noted. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results and outcomes may differ from those estimates. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results that may be expected for the year ending December 31, 2020, or for any future periods. |
Recent Accounting Standards | Recent Accounting Standards Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, which requires measurement and recognition of expected credit losses for financial assets held. The standard is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures and there was no cumulative-effect adjustment required. In January 2017, the FASB issued ASU 2017-04, which simplifies the accounting for goodwill impairment. The updated guidance eliminates Step 2 of the impairment test, which requires entities to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value, determined in Step 1. We adopted this guidance effective January 1, 2020, using a prospective approach. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, which removes, modifies and adds to the disclosure requirements on fair value measurements in Topic 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this updated guidance and delay adoption of the additional disclosures until their effective date. We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15 , to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments . We adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. |
Revenue Recognition | Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. For contracts that contain minimum commitments over the contractual term, we estimate an amount of variable consideration by using either the expected value method or the most likely amount method. We include estimates of variable consideration in revenue only when we have a high degree of confidence that revenue will not be reversed in a subsequent reporting period. We believe that the expected value method is the most appropriate estimate of the amount of variable consideration. These customers have entered into contracts with contract terms generally from one to four years. As of June 30, 2020, we have approximately $4,372 of remaining unsatisfied performance obligations. We recognized revenue of approximately $1,943 and $2,500, respectively, during the three months ended June 30, 2020 and 2019, related to these types of contracts with our customers. During the six months ended June 30, 2020 and 2019, we recognized approximately $4,097 and $5,200, respectively. We expect to recognize approximately 60% of the remaining unsatisfied performance obligations in 2020, approximately 34% in 2021, and approximately 6% in 2022. |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Summary of Accounts Receivable and Allowances for Doubtful Accounts | Accounts receivable, net include: June 30, December 31, 2020 2019 Accounts receivable $ 46,254 $ 35,619 Less: credit allowance (170) (170) Less: allowance for doubtful accounts (838) (973) Total accounts receivable, net $ 45,246 $ 34,476 Six Months Ended June 30, 2020 Beginning of period 973 Provision for credit losses 313 Write-offs (448) End of period 838 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets include: June 30, December 31, 2020 2019 Prepaid bandwidth and backbone 1,553 1,717 VAT receivable 3,096 3,068 Prepaid expenses and insurance 2,208 1,685 Vendor deposits and other 3,384 3,450 Total prepaid expenses and other current assets $ 10,241 $ 9,920 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net include: June 30, December 31, 2020 2019 Network equipment $ 132,298 $ 126,975 Computer equipment and software 7,307 7,603 Furniture and fixtures 1,893 1,906 Leasehold improvements 7,925 7,888 Other equipment 31 54 Total property and equipment 149,454 144,426 Less: accumulated depreciation (100,546) (98,290) Total property and equipment, net $ 48,908 $ 46,136 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities include: June 30, December 31, 2020 2019 Accrued compensation and benefits $ 8,832 $ 4,918 Accrued cost of revenue 4,722 4,176 Other accrued expenses 3,474 4,304 Total other current liabilities $ 17,028 $ 13,398 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share | The following table sets forth the components used in the computation of basic and diluted net loss per share for the periods indicated (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net loss $ (1,727) $ (7,192) $ (6,983) $ (15,751) Basic weighted average outstanding shares of common stock 120,230 115,275 119,597 114,843 Basic weighted average outstanding shares of common stock 120,230 115,275 119,597 114,843 Dilutive effect of stock options, restricted stock units, and other equity incentive plans — — — — Diluted weighted average outstanding shares of common stock 120,230 115,275 119,597 114,843 Basic net loss per share $ (0.01) $ (0.06) $ (0.06) $ (0.14) Diluted net loss per share: $ (0.01) $ (0.06) $ (0.06) $ (0.14) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the three and six months ended June 30, 2020 and 2019, respectively, the following potentially dilutive common stock, including awards granted under our equity incentive compensation plans were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Employee stock purchase plan 68 128 68 128 Stock options 6,510 2,425 6,232 2,243 Restricted stock units 1,764 779 1,846 890 8,342 3,332 8,146 3,261 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Changes in the components of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2020, was as follows: Foreign Currency Balance, December 31, 2019 $ (9,210) Other comprehensive loss before reclassifications (821) Amounts reclassified from accumulated other comprehensive — Net current period other comprehensive loss (821) Balance, June 30, 2020 $ (10,031) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Components of Share-based Compensation Expense | The following table summarizes the components of share-based compensation expense included in our consolidated statements of operations: Three Months Ended Six Months Ended 2020 2019 2020 2019 Share-based compensation expense by type: Stock options $ 1,071 $ 1,044 $ 2,119 $ 2,086 Restricted stock units 3,819 2,435 7,700 4,685 ESPP 361 170 496 334 Total share-based compensation expense $ 5,251 $ 3,649 $ 10,315 $ 7,105 Share-based compensation expense: Cost of services $ 792 $ 377 $ 1,555 $ 788 General and administrative expense 2,257 2,140 4,498 4,234 Sales and marketing expense 1,322 598 2,550 1,082 Research and development expense 880 534 1,712 1,001 Total share-based compensation expense $ 5,251 $ 3,649 $ 10,315 $ 7,105 |
Operating Leases - Right of U_2
Operating Leases - Right of Use Assets and Purchase Commitments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Right-of-use Assets and Lease Liabilities | Below is a summary of our right of use assets and liabilities as of June 30, 2020. Right-of-use assets $ 11,449 Lease liability obligations, current $ 2,390 Lease liability obligations, less current portion 12,316 Total lease liability obligations $ 14,706 Weighted-average remaining lease term 8.3 years Weighted-average discount rate 5.05 % |
Future Minimum Lease Payments Over Remaining Lease Periods | Approximate future minimum lease payments for our right of use assets over the remaining lease periods as of June 30, 2020, are as follows: Remainder of 2020 $ 1,405 2021 3,048 2022 2,217 2023 1,740 2024 1,441 Thereafter 8,269 Total minimum payments 18,120 Less: amount representing interest 3,414 Total $ 14,706 |
Minimum Purchase Commitments | The following summarizes our minimum non-cancellable commitments for future periods as of June 30, 2020: Remainder of 2020 $ 20,973 2021 18,880 2022 5,739 2023 2,319 2024 344 Thereafter — Total minimum payments $ 48,255 |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Areas (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Revenue Earned by Geographic Area | The following table sets forth our revenue by geographic area: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Americas $ 36,343 62 % $ 28,970 63 % $ 71,058 62 % $ 54,005 61 % EMEA 9,262 16 % 7,282 16 % 18,821 16 % 14,547 16 % Asia Pacific 12,941 22 % 9,652 21 % 25,679 22 % 20,632 23 % Total revenue $ 58,546 100 % $ 45,904 100 % $ 115,558 100 % $ 89,184 100 % |
Schedule of Concentration of Revenue by Country | The following table sets forth the individual countries and their respective revenue for those countries whose revenue exceeded 10% of our total revenue: Three Months Ended June 30, Six Months Ended June 30, Country / Region 2020 2019 2020 2019 United States / Americas $ 35,605 $ 28,087 $ 69,623 $ 52,063 United Kingdom / EMEA $ 7,483 $ 5,285 $ 15,077 $ 10,414 Japan / Asia Pacific $ 8,326 $ 5,682 $ 16,548 $ 11,505 |
Long-lived Assets by Geographical Area | The following table sets forth long-lived assets by geographic area in which the assets are located: June 30, December 31, 2020 2019 Americas $ 35,064 $ 33,450 International 13,844 12,686 Total long-lived assets $ 48,908 $ 46,136 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accounting Policies [Abstract] | ||||
Contract terms | These customers have entered into contracts with contract terms generally from one to four years. | |||
Committed revenue from minimum commitment contracts | $ 4,372 | $ 4,372 | ||
Minimum commitment contracts revenue recognized in period | $ 1,943 | $ 2,500 | $ 4,097 | $ 5,200 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Performance Obligations (Details) | Jun. 30, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations to be recognized period | 6 months |
Percent of remaining unsatisfied performance obligations to be recognized | 60.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations to be recognized period | 1 year |
Percent of remaining unsatisfied performance obligations to be recognized | 34.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations to be recognized period | 1 year |
Percent of remaining unsatisfied performance obligations to be recognized | 6.00% |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
Summary of Accounts Receivable, net | ||||
Accounts receivable | $ 46,254 | $ 35,619 | ||
Less: credit allowance | (170) | (170) | ||
Less: allowance for doubtful accounts | $ (838) | (838) | (973) | |
Total accounts receivable, net | $ 45,246 | $ 34,476 | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning of period | 973 | |||
Provision for credit losses | 313 | $ 694 | ||
Write-offs | (448) | |||
End of period | $ 838 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid bandwidth and backbone | $ 1,553 | $ 1,717 |
VAT receivable | 3,096 | 3,068 |
Prepaid expenses and insurance | 2,208 | 1,685 |
Vendor deposits and other | 3,384 | 3,450 |
Total prepaid expenses and other current assets | $ 10,241 | $ 9,920 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property and equipment, net | ||
Total property and equipment | $ 149,454 | $ 144,426 |
Less: accumulated depreciation | (100,546) | (98,290) |
Total property and equipment, net | 48,908 | 46,136 |
Network equipment | ||
Property and equipment, net | ||
Total property and equipment | 132,298 | 126,975 |
Computer equipment and software | ||
Property and equipment, net | ||
Total property and equipment | 7,307 | 7,603 |
Furniture and fixtures | ||
Property and equipment, net | ||
Total property and equipment | 1,893 | 1,906 |
Leasehold improvements | ||
Property and equipment, net | ||
Total property and equipment | 7,925 | 7,888 |
Other equipment | ||
Property and equipment, net | ||
Total property and equipment | $ 31 | $ 54 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Cost of revenue depreciation expense | $ 5,360 | $ 4,628 | $ 10,510 | $ 8,944 |
Operating expense depreciation | $ 323 | $ 127 | $ 665 | $ 372 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Accrued compensation and benefits | $ 8,832 | $ 4,918 |
Accrued cost of revenue | 4,722 | 4,176 |
Other accrued expenses | 3,474 | 4,304 |
Total other current liabilities | $ 17,028 | $ 13,398 |
Line of Credit (Details)
Line of Credit (Details) - Revolving Credit Facility - Credit Agreement - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing amount | $ 20,000,000 | |||||
Borrowing capacity limit, percent of accounts receivable | 80.00% | |||||
Proceeds from line of credit | $ 0 | $ 0 | $ 0 | |||
Current borrowing capacity | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | |||
Increase in interest rate in event of default | 3.00% | 3.00% | ||||
Interest expense | $ 0 | $ 0 | $ 0 | $ 0 | ||
Commitment fees amortization | $ 71,000 | $ 10,000 | $ 82,000 | $ 20,000 | ||
Voting stock percentage in foreign subsidiaries | 65.00% | |||||
Line of credit facility, covenant compliance, adjusted quick ratio | 1 | 1 | ||||
Alternative Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Variable rate minimum | 0.25% |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (1,727) | $ (7,192) | $ (6,983) | $ (15,751) |
Basic weighted average outstanding shares of common stock | 120,230 | 115,275 | 119,597 | 114,843 |
Dilutive effect of stock options, restricted stock units, and other equity incentive plans (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted average outstanding shares of common stock | 120,230 | 115,275 | 119,597 | 114,843 |
Basic net loss per share (in dollars per share) | $ (0.01) | $ (0.06) | $ (0.06) | $ (0.14) |
Diluted net loss per share (in dollars per share) | $ (0.01) | $ (0.06) | $ (0.06) | $ (0.14) |
Net Loss per Share - Dilutive C
Net Loss per Share - Dilutive Common Stock (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units (in shares) | 8,342 | 3,332 | 8,146 | 3,261 |
Employee stock purchase plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units (in shares) | 68 | 128 | 68 | 128 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units (in shares) | 6,510 | 2,425 | 6,232 | 2,243 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units (in shares) | 1,764 | 779 | 1,846 | 890 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
May 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Mar. 14, 2017 | Sep. 30, 2013 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Issuance of common stock under employee stock purchase plan | $ 1,074,000 | $ 1,095,000 | $ 1,074,000 | $ 1,095,000 | ||||
Issuance of preferred stock authorized (in shares) | 7,500,000 | 7,500,000 | 7,500,000 | |||||
Employee Stock Purchase Plan | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of shares authorized for issuance | 9,000,000 | 4,000,000 | ||||||
Increase in shares available for issuance | 5,000,000 | |||||||
Maximum number of shares permitted to purchase per period | 5,000 | |||||||
Discount from market price for employees | 15.00% | |||||||
Shares issued | 300,000 | 300,000 | ||||||
Issuance of common stock under employee stock purchase plan | $ 1,075,000 | $ 1,075,000 | ||||||
Common Stock reserved for future options and restricted stock awards (in shares) | 3,940,000 | 3,940,000 | ||||||
Employee funds held by company for future purchase of shares | $ 299,000 | $ 299,000 | ||||||
2007 Equity Incentive Plan | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of shares authorized for issuance | 10,525,000 | 10,525,000 | ||||||
2017 Share Repurchase Program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Stock repurchase amount authorized | $ 25,000,000 | |||||||
Shares purchased and canceled | 0 | 0 | ||||||
Remaining authorized repurchase amount | $ 21,200,000 | $ 21,200,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 163,864 | $ 159,538 | $ 166,537 | $ 165,151 |
Other comprehensive income (loss) | 518 | 174 | (821) | 550 |
Ending balance | 169,815 | 156,645 | 169,815 | 156,645 |
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (10,549) | (9,657) | (9,210) | (10,033) |
Other comprehensive loss before reclassifications | (821) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Other comprehensive income (loss) | (821) | |||
Ending balance | $ (10,031) | $ (9,483) | $ (10,031) | $ (9,483) |
Share-Based Compensation - Comp
Share-Based Compensation - Components of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Components of share-based compensation expense | ||||
Share-based compensation | $ 5,251 | $ 3,649 | $ 10,315 | $ 7,105 |
Cost of services | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 792 | 377 | 1,555 | 788 |
General and administrative expense | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 2,257 | 2,140 | 4,498 | 4,234 |
Sales and marketing expense | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 1,322 | 598 | 2,550 | 1,082 |
Research and development expense | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 880 | 534 | 1,712 | 1,001 |
Stock options | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 1,071 | 1,044 | 2,119 | 2,086 |
Restricted stock units | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 3,819 | 2,435 | 7,700 | 4,685 |
ESPP | ||||
Components of share-based compensation expense | ||||
Share-based compensation | $ 361 | $ 170 | $ 496 | $ 334 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense total | $ 21,132 | $ 21,132 | ||
Share-based compensation expense, remainder of year | 6,446 | 6,446 | ||
Share-based compensation expense, 2021 | 8,964 | 8,964 | ||
Share-based compensation expense | 5,251 | $ 3,649 | 10,315 | $ 7,105 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense total | 6,871 | 6,871 | ||
Share-based compensation expense | 1,071 | 1,044 | 2,119 | 2,086 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense total | 14,261 | 14,261 | ||
Share-based compensation expense | $ 3,819 | $ 2,435 | 7,700 | $ 4,685 |
Annual Corporate Bonus Plan | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 2,376 |
Operating Leases - Right of U_3
Operating Leases - Right of Use Assets and Purchase Commitments - Right-of-use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Operating Leased Assets [Line Items] | |||||
Right-of-use assets | $ 11,449 | $ 11,449 | $ 12,842 | ||
Operating lease liability obligations | 2,390 | 2,390 | 2,056 | ||
Operating lease liability obligations, less current portion | 12,316 | 12,316 | $ 13,488 | ||
Total lease liability obligations | $ 14,706 | $ 14,706 | |||
Weighted-average remaining lease term | 8 years 3 months 18 days | 8 years 3 months 18 days | |||
Weighted-average discount rate | 5.05% | 5.05% | |||
Operating lease costs | $ 794 | $ 977 | $ 1,598 | $ 1,943 | |
Operating cash flows from operating leases | 472 | 464 | 965 | 1,052 | |
Cost of Revenue | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease costs | 118 | 147 | 249 | 291 | |
Operating Expenses | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease costs | $ 676 | $ 830 | $ 1,349 | $ 1,652 |
Operating Leases - Right of U_4
Operating Leases - Right of Use Assets and Purchase Commitments - Future Minimum Lease Payments Over Remaining Lease Periods (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Future minimum lease payments over remaining lease periods | |
Remainder of 2020 | $ 1,405 |
2021 | 3,048 |
2022 | 2,217 |
2023 | 1,740 |
2024 | 1,441 |
Thereafter | 8,269 |
Total minimum payments | 18,120 |
Less: amount representing interest | 3,414 |
Total | $ 14,706 |
Operating Leases - Right of U_5
Operating Leases - Right of Use Assets and Purchase Commitments - Minimum Purchase Commitments (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Minimum purchase commitments | |
Remainder of 2020 | $ 20,973 |
2021 | 18,880 |
2022 | 5,739 |
2023 | 2,319 |
2024 | 344 |
Thereafter | 0 |
Total minimum payments | $ 48,255 |
Concentrations (Details)
Concentrations (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)countrycustomer | Jun. 30, 2019USD ($)customercountry | Jun. 30, 2020USD ($)countrycustomer | Jun. 30, 2019USD ($)customercountry | |
Concentration Risk [Line Items] | ||||
Number of customers who represented 10% or more of total revenue | customer | 2 | 1 | 2 | 1 |
Revenue | $ 58,546 | $ 45,904 | $ 115,558 | $ 89,184 |
Geographic concentration | Sales revenue | ||||
Concentration Risk [Line Items] | ||||
Number of countries accounting for 10% or more of revenue | country | 3 | 3 | 3 | 3 |
United States / Americas | Geographic concentration | Sales revenue | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 35,605 | $ 28,087 | $ 69,623 | $ 52,063 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 136 | $ 255 | $ 311 | $ 378 |
Segment Reporting and Geograp_3
Segment Reporting and Geographic Areas - Narrative (Details) | 6 Months Ended |
Jun. 30, 2020SegmentLocation | |
Segment Reporting [Abstract] | |
Number of industry segment | Segment | 1 |
Number of geographic areas | Location | 3 |
Segment Reporting and Geograp_4
Segment Reporting and Geographic Areas - Revenue Earned by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue earned by geographic area | ||||
Revenue | $ 58,546 | $ 45,904 | $ 115,558 | $ 89,184 |
Americas | ||||
Revenue earned by geographic area | ||||
Revenue | 36,343 | 28,970 | 71,058 | 54,005 |
EMEA | ||||
Revenue earned by geographic area | ||||
Revenue | 9,262 | 7,282 | 18,821 | 14,547 |
Asia Pacific | ||||
Revenue earned by geographic area | ||||
Revenue | $ 12,941 | $ 9,652 | $ 25,679 | $ 20,632 |
Sales revenue | Geographic concentration | ||||
Revenue earned by geographic area | ||||
Percent of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Sales revenue | Geographic concentration | Americas | ||||
Revenue earned by geographic area | ||||
Percent of revenue | 62.00% | 63.00% | 62.00% | 61.00% |
Sales revenue | Geographic concentration | EMEA | ||||
Revenue earned by geographic area | ||||
Percent of revenue | 16.00% | 16.00% | 16.00% | 16.00% |
Sales revenue | Geographic concentration | Asia Pacific | ||||
Revenue earned by geographic area | ||||
Percent of revenue | 22.00% | 21.00% | 22.00% | 23.00% |
Segment Reporting and Geograp_5
Segment Reporting and Geographic Areas - Schedule of Concentration of Revenue by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 58,546 | $ 45,904 | $ 115,558 | $ 89,184 |
Geographic concentration | Sales revenue | United States / Americas | ||||
Concentration Risk [Line Items] | ||||
Revenue | 35,605 | 28,087 | 69,623 | 52,063 |
Geographic concentration | Sales revenue | United Kingdom / EMEA | ||||
Concentration Risk [Line Items] | ||||
Revenue | 7,483 | 5,285 | 15,077 | 10,414 |
Geographic concentration | Sales revenue | Japan / Asia Pacific | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 8,326 | $ 5,682 | $ 16,548 | $ 11,505 |
Segment Reporting and Geograp_6
Segment Reporting and Geographic Areas - Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Long-lived assets by geographical area | ||
Long-lived assets | $ 48,908 | $ 46,136 |
Americas | ||
Long-lived assets by geographical area | ||
Long-lived assets | 35,064 | 33,450 |
International | ||
Long-lived assets by geographical area | ||
Long-lived assets | $ 13,844 | $ 12,686 |