Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 15, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-33508 | |
Entity Registrant Name | Limelight Networks, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1677033 | |
Entity Central Index Key | 0001391127 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
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 $0.001 per share | |
Trading Symbol | LLNW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 122,973,706 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 75,169 | $ 18,335 |
Marketable securities | 49,623 | 0 |
Accounts receivable, net | 42,222 | 34,476 |
Income taxes receivable | 81 | 82 |
Prepaid expenses and other current assets | 12,561 | 9,920 |
Total current assets | 179,656 | 62,813 |
Property and equipment, net | 47,493 | 46,136 |
Operating lease right of use assets | 10,844 | 12,842 |
Marketable securities, less current portion | 40 | 40 |
Deferred income taxes | 1,428 | 1,319 |
Goodwill | 77,126 | 77,102 |
Other assets | 7,459 | 9,117 |
Total assets | 324,046 | 209,369 |
Current liabilities: | ||
Accounts payable | 12,437 | 12,020 |
Deferred revenue | 797 | 976 |
Operating lease liability obligations | 2,654 | 2,056 |
Income taxes payable | 153 | 178 |
Other current liabilities | 17,584 | 13,398 |
Total current liabilities | 33,625 | 28,628 |
Convertible senior notes, net | 99,937 | 0 |
Operating lease liability obligations, less current portion | 11,745 | 13,488 |
Deferred income taxes | 251 | 239 |
Deferred revenue, less current portion | 230 | 161 |
Other long-term liabilities | 579 | 316 |
Total liabilities | 146,367 | 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; 122,824 and 118,368 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 123 | 118 |
Additional paid-in capital | 552,559 | 530,285 |
Accumulated other comprehensive loss | (9,379) | (9,210) |
Accumulated deficit | (365,624) | (354,656) |
Total stockholders’ equity | 177,679 | 166,537 |
Total liabilities and stockholders’ equity | $ 324,046 | $ 209,369 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 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 | 122,824,000 | 118,368,000 |
Common stock, shares outstanding | 122,824,000 | 118,368,000 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 59,243 | $ 51,321 | $ 174,801 | $ 140,505 |
Cost of revenue: | ||||
Cost of services | 31,905 | 25,602 | 92,406 | 71,311 |
Depreciation — network | 5,602 | 4,961 | 16,112 | 13,905 |
Total cost of revenue | 37,507 | 30,563 | 108,518 | 85,216 |
Gross profit | 21,736 | 20,758 | 66,283 | 55,289 |
Operating expenses: | ||||
General and administrative | 7,751 | 7,356 | 23,820 | 23,231 |
Sales and marketing | 10,456 | 10,713 | 33,279 | 32,679 |
Research and development | 5,425 | 5,160 | 16,614 | 17,075 |
Depreciation and amortization | 384 | 172 | 1,049 | 545 |
Total operating expenses | 24,016 | 23,401 | 74,762 | 73,530 |
Operating loss | (2,280) | (2,643) | (8,479) | (18,241) |
Other income (expense): | ||||
Interest expense | (1,674) | (10) | (1,756) | (30) |
Interest income | 10 | 81 | 40 | 402 |
Other, net | 25 | (13) | (396) | (89) |
Total other (expense) income | (1,639) | 58 | (2,112) | 283 |
Loss before income taxes | (3,919) | (2,585) | (10,591) | (17,958) |
Income tax expense | 66 | 166 | 377 | 544 |
Net loss | $ (3,985) | $ (2,751) | $ (10,968) | $ (18,502) |
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.09) | $ (0.16) |
Diluted (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.09) | $ (0.16) |
Weighted average shares used in per share calculation: | ||||
Basic (shares) | 122,363 | 116,270 | 120,519 | 115,318 |
Diluted (shares) | 122,363 | 116,270 | 120,519 | 115,318 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (3,985) | $ (2,751) | $ (10,968) | $ (18,502) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized (loss) gain on investments | (80) | 2 | (80) | 39 |
Foreign currency translation gain (loss) | 732 | (357) | (89) | 157 |
Other comprehensive income (loss) | 652 | (355) | (169) | 196 |
Comprehensive loss | $ (3,333) | $ (3,106) | $ (11,137) | $ (18,306) |
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 | (18,502) | (18,502) | |||
Change in unrealized loss on available-for-sale investments, net of taxes | 39 | 39 | |||
Foreign currency translation adjustment, net of taxes | 157 | 157 | |||
Exercise of common stock options, shares | 10,000 | ||||
Exercise of common stock options | 21 | 21 | |||
Vesting of restricted stock units, shares | 2,695,000 | ||||
Vesting of restricted stock units | 0 | $ 3 | (3) | ||
Restricted stock units surrendered in lieu of withholding taxes, shares | (887,000) | ||||
Restricted stock units surrendered in lieu of withholding taxes | (2,528) | (2,528) | |||
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 | 12,491 | 12,491 | |||
Ending balance, shares at Sep. 30, 2019 | 116,513,000 | ||||
Ending balance at Sep. 30, 2019 | 157,924 | $ 117 | 524,758 | (9,837) | (357,114) |
Beginning balance, shares at Jun. 30, 2019 | 115,760,000 | ||||
Beginning balance at Jun. 30, 2019 | 156,646 | $ 116 | 520,375 | (9,482) | (354,363) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (2,751) | (2,751) | |||
Change in unrealized loss on available-for-sale investments, net of taxes | 2 | 2 | |||
Foreign currency translation adjustment, net of taxes | (357) | (357) | |||
Exercise of common stock options, shares | 5,000 | ||||
Exercise of common stock options | 13 | 13 | |||
Vesting of restricted stock units, shares | 1,129,000 | ||||
Vesting of restricted stock units | 0 | $ 1 | (1) | ||
Restricted stock units surrendered in lieu of withholding taxes, shares | (381,000) | ||||
Restricted stock units surrendered in lieu of withholding taxes | (1,015) | (1,015) | |||
Share-based compensation | 5,386 | 5,386 | |||
Ending balance, shares at Sep. 30, 2019 | 116,513,000 | ||||
Ending balance at Sep. 30, 2019 | $ 157,924 | $ 117 | 524,758 | (9,837) | (357,114) |
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 | (10,968) | (10,968) | |||
Change in unrealized loss on available-for-sale investments, net of taxes | (80) | (80) | |||
Foreign currency translation adjustment, net of taxes | (89) | (89) | |||
Exercise of common stock options, shares | 2,672,000 | ||||
Exercise of common stock options | 7,610 | $ 3 | 7,607 | ||
Vesting of restricted stock units, shares | 2,233,000 | ||||
Vesting of restricted stock units | 7 | $ 2 | 5 | ||
Restricted stock units surrendered in lieu of withholding taxes, shares | (749,000) | ||||
Restricted stock units surrendered in lieu of withholding taxes | (3,986) | (3,986) | |||
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 | 12,240 | 12,240 | |||
Equity component of convertible senior notes, net | 21,747 | 21,747 | |||
Purchase of capped calls related to issuance of convertible senior notes | $ (16,413) | (16,413) | |||
Ending balance, shares at Sep. 30, 2020 | 122,824,000 | 122,824,000 | |||
Ending balance at Sep. 30, 2020 | $ 177,679 | $ 123 | 552,559 | (9,379) | (365,624) |
Beginning balance, shares at Jun. 30, 2020 | 121,692,000 | ||||
Beginning balance at Jun. 30, 2020 | 169,815 | $ 122 | 541,363 | (10,031) | (361,639) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (3,985) | (3,985) | |||
Change in unrealized loss on available-for-sale investments, net of taxes | (80) | (80) | |||
Foreign currency translation adjustment, net of taxes | 732 | 732 | |||
Exercise of common stock options, shares | 812,000 | ||||
Exercise of common stock options | 2,599 | $ 1 | 2,598 | ||
Vesting of restricted stock units, shares | 488,000 | ||||
Vesting of restricted stock units | 0 | ||||
Restricted stock units surrendered in lieu of withholding taxes, shares | (168,000) | ||||
Restricted stock units surrendered in lieu of withholding taxes | (1,041) | (1,041) | |||
Share-based compensation | 4,305 | 4,305 | |||
Equity component of convertible senior notes, net | 21,747 | 21,747 | |||
Purchase of capped calls related to issuance of convertible senior notes | $ (16,413) | (16,413) | |||
Ending balance, shares at Sep. 30, 2020 | 122,824,000 | 122,824,000 | |||
Ending balance at Sep. 30, 2020 | $ 177,679 | $ 123 | $ 552,559 | $ (9,379) | $ (365,624) |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities | ||
Net loss | $ (10,968) | $ (18,502) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 17,161 | 14,450 |
Share-based compensation | 12,238 | 10,463 |
Foreign currency remeasurement gain | (113) | (104) |
Deferred income taxes | (80) | (30) |
Gain on sale of property and equipment | (1) | (56) |
Accounts receivable charges | 476 | 1,274 |
Amortization of premium on marketable securities | 87 | 29 |
Noncash interest expense | 868 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,221) | (11,051) |
Prepaid expenses and other current assets | (2,679) | (777) |
Income taxes receivable | 3 | 43 |
Other assets | 2,504 | (2,641) |
Accounts payable and other current liabilities | 8,159 | 3,675 |
Deferred revenue | (109) | (557) |
Income taxes payable | (15) | 204 |
Payments related to litigation, net | 0 | (3,040) |
Other long term liabilities | 265 | (137) |
Net cash provided by (used in) operating activities | 19,575 | (6,757) |
Investing activities | ||
Purchases of marketable securities | (52,690) | (10,279) |
Sale and maturities of marketable securities | 2,900 | 32,153 |
Purchases of property and equipment | (22,128) | (24,224) |
Proceeds from sale of property and equipment | 1 | 51 |
Net cash used in investing activities | (71,917) | (2,299) |
Financing activities | ||
Proceeds from issuance of debt, net | 121,600 | 0 |
Purchase of capped calls | (16,413) | 0 |
Payment of debt issuance costs | (784) | 0 |
Payments of employee tax withholdings related to restricted stock vesting | (3,987) | (2,528) |
Proceeds from employee stock plans | 8,691 | 1,116 |
Net cash provided by (used in) financing activities | 109,107 | (1,412) |
Effect of exchange rate changes on cash and cash equivalents | 69 | (83) |
Net increase (decrease) in cash and cash equivalents | 56,834 | (10,551) |
Cash and cash equivalents, beginning of period | 18,335 | 25,383 |
Cash and cash equivalents, end of period | 75,169 | 14,832 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest | 97 | 30 |
Cash paid during the period for income taxes, net of refunds | $ 452 | $ 340 |
Nature of Business
Nature of Business | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 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. Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12 to simplifying the accounting for income taxes. ASU 2019-12 is intended to simplify various aspects related to accounting for income taxes, eliminates certain exceptions to the general principles in the Accounting Standards Codification (ASC) Topic 740 related to intra-period tax allocation, simplifies when companies recognize deferred taxes in an interim period, and clarifies certain aspects of the current guidance to promote consistent application. This guidance is effective for public business entities for fiscal years beginning after December 15, 2020, and for interim periods within those fiscal years, with early adoption permitted. ASU 2019-12 requires a retrospective, modified retrospective or prospective transition approach for individual aspects of the ASU. This guidance is applicable to us for our fiscal year beginning January 1, 2021. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, which simplifies the accounting for convertible instruments. ASU 2020-06 eliminates certain models that require separate accounting for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates certain of the conditions for equity classification for contracts in an entity’s own equity. ASU 2020-06 also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. ASU 2020-06 is effective for our fiscal year beginning after December 15, 2021, including interim periods within this fiscal year. Early adoption is permitted, but no earlier than our fiscal year beginning after December 15, 2020, including interim periods within those fiscal years. This guidance can be applied using either a modified or full retrospective approach. We expect to early adopt this guidance, however at this time we are currently evaluating the impact this guidance will have on our consolidated financial statements. Significant Accounting Policies There have been no changes in the significant accounting policies from those that were disclosed in our Annual Report, except for convertible senior notes as described below: Convertible Senior Notes In July 2020, we issued $125,000 aggregate principal amount of 3.50% convertible senior notes. We separate our convertible senior notes (the Notes) into liability and equity components. The carrying amount of the liability component is calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option is determined by deducting the fair value of the liability component from the principal amount of the Notes. The excess of the principal amount of the Notes over the carrying amount of the liability component (debt discount) is amortized to interest expense at an effective interest rate over the contractual term of the Notes. The equity component is recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. We allocate the issuance costs to the liability and equity components of the Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component are amortized to interest expense using the effective interest method over the contractual terms of the Notes. Issuance costs attributable to the equity component are netted with the equity component in stockholders’ equity. 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. |
Investments in Marketable Secur
Investments in Marketable Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Marketable Securities | Investments in Marketable Securities The following is a summary of marketable securities (designated as available-for-sale) at September 30, 2020. Amortized Gross Gross Estimated Certificate of deposit $ 40 $ — $ — $ 40 Corporate notes and bonds 46,705 — 78 46,627 Municipal securities 2,997 1 2 2,996 Total marketable securities $ 49,742 $ 1 $ 80 $ 49,663 The amortized cost and estimated fair value of marketable securities at September 30, 2020, by maturity are shown below: Amortized Gross Gross Estimated Available-for-sale securities: Due in one year or less $ 42,175 $ 1 $ 69 $ 42,107 Due after one year and through five years 7,567 — 11 7,556 Total marketable securities $ 49,742 $ 1 $ 80 $ 49,663 The following is a summary of marketable securities (designated as available-for-sale) at December 31, 2019. Amortized Gross Gross Estimated Certificate of deposit $ 40 $ — $ — $ 40 The amortized cost and estimated fair value of marketable securities at December 31, 2019, by maturity are shown below: Amortized Gross Gross Estimated Available-for-sale securities: Due after one year and through five years 40 — — 40 |
Accounts Receivable, net
Accounts Receivable, net | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable, net include: September 30, December 31, 2020 2019 Accounts receivable $ 43,306 $ 35,619 Less: credit allowance (200) (170) Less: allowance for doubtful accounts (884) (973) Total accounts receivable, net $ 42,222 $ 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 nine months ended September 30, 2020: Nine Months Ended September 30, 2020 Beginning of period 973 Provision for credit losses 476 Write-offs (565) End of period 884 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 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: September 30, December 31, 2020 2019 Prepaid bandwidth and backbone 1,324 1,717 VAT receivable 3,877 3,068 Prepaid expenses and insurance 2,731 1,685 Vendor deposits and other 4,629 3,450 Total prepaid expenses and other current assets $ 12,561 $ 9,920 |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net include: September 30, December 31, 2020 2019 Network equipment $ 134,082 $ 126,975 Computer equipment and software 7,293 7,603 Furniture and fixtures 1,785 1,906 Leasehold improvements 7,455 7,888 Other equipment 21 54 Total property and equipment 150,636 144,426 Less: accumulated depreciation (103,143) (98,290) Total property and equipment, net $ 47,493 $ 46,136 Cost of revenue depreciation expense related to property and equipment was approximately $5,602 and $4,961, respectively, for the three months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020 and 2019, respectively, cost of revenue depreciation expense related to property and equipment was approximately $16,112 and $13,905, respectively. |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities include: September 30, December 31, 2020 2019 Accrued compensation and benefits $ 8,565 $ 4,918 Accrued cost of revenue 5,104 4,176 Accrued interest payable 791 — Other accrued expenses 3,124 4,304 Total other current liabilities $ 17,584 $ 13,398 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Convertible Senior Notes - Due 2025 On July 27, 2020, we issued $125,000 aggregate principal amount of 3.50% Convertible Senior Notes due 2025 (the Notes), including the initial purchasers’ exercise in full of their option to purchase an additional $15,000 principal amount of the Notes, in a private placement to qualified institutional buyers in an offering exempt from registration under the Securities Act of 1933, as amended. The net proceeds from the issuance of the Notes was $120,816 after deducting transaction costs. The Notes are governed by an indenture (the Indenture) between us, as the issuer, and U.S. Bank, National Association, as trustee. The Notes are senior, unsecured obligations of ours and will be equal in right of payment with our senior, unsecured indebtedness; senior in right of payment to our indebtedness that is expressly subordinated to the notes; effectively subordinated to our senior, secured indebtedness, including future borrowings, if any, under our $20,000 credit facility with SVB, to the extent of the value of the collateral securing that indebtedness; and structurally subordinated to all indebtedness and other liabilities, including trade payables, and (to the extent we are not a holder thereof) preferred equity, if any, of our subsidiaries. The Indenture includes customary covenants and sets forth certain events of default after which the Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving us after which the Notes become automatically due and payable. The Notes mature on August 1, 2025 unless earlier converted, redeemed or repurchased in accordance with their term prior to the maturity date. Interest is payable semiannually in arrears on February 1 and August 1 of each year, beginning on February 1, 2021. The holders of the Notes may convert all or any portion of their Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 (and only during such calendar quarter), if the last reported sale price per share of our common stock exceeds 130% of the conversion price of $8.53 for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any ten consecutive trading day period (such ten consecutive trading day period, the “measurement period”) in which the trading price per $1 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions of our common stock; (4) if we call such Notes for redemption; and (5) at any time from, and including, May 1, 2025, until the close of business on the second scheduled trading day immediately before the maturity date. On or after May 1, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in minimum principal amount denominations of $1 or any integral multiple of $1 in excess thereof, at the option of the holder regardless of the foregoing circumstances. Upon conversion, we may satisfy our conversion obligation by paying or delivering, as applicable, cash, shares of common stock or a combination of cash and shares of common stock, at our election, in the manner and subject to the terms and conditions provided in the Indenture. The Notes have an initial conversion rate of 117.2367 shares of our common stock per $1 principal amount of Notes, which is equal to an initial conversion price of approximately $8.53 per share of our common stock. The initial conversion price of the notes represents a premium of approximately 27.5% over the last reported sale price of our common stock on The Nasdaq Global Select Market of $6.69 per share on July 22, 2020. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the Indenture. In addition, following certain corporate events that occur prior to the maturity date or if we deliver a notice of redemption, we will increase the conversion rate in certain circumstances for a holder who elects to convert its Notes in connection with such a corporate event or convert its Notes called (or deemed called) for redemption in connection with such notice of redemption, provided that the conversion rate will not exceed 149.4768 share of our common stock per $1 principal amount of Notes, subject to adjustment. We may not redeem the Notes prior to August 4, 2023. We may redeem for cash all, or any portion in an authorized denomination, of the Notes, at our option, on or after August 4, 2023, and on or prior to the 41st scheduled trading day immediately preceding the maturity date, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days, whether or not consecutive, including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes, which means that we are not required to redeem or retire the Notes periodically. If we undergo a fundamental change (as defined in the Indenture), holders may require us to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. During the three months ended September 30, 2020, the conditions allowing holders of the Notes to convert were not met and therefore the Notes are not yet convertible. The liability component of the Notes is classified as long-term debt on our condensed consolidated balance sheet as of September 30, 2020. We separately accounted for the liability and equity components of the Notes. We determined the initial carrying amount of the $102,500 liability component before consideration of debt discount and transaction fees by calculating the present value of the cash flows using an effective interest rate of 8.6%. The interest rate was determined based on non-convertible debt offerings of similar sizes and terms by companies with similar credit ratings (Level 2 inputs). The carrying amount of the equity component, representing the conversion option, was $22,500 and was calculated by deducting the initial carrying value of the liability component from the principal amount of the Notes as a whole. This difference represents a debt discount that is amortized to interest expense over the 5-year contractual term of the Notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. We allocated transaction costs related to the issuance of the Notes to the liability and equity components using the same proportions as the initial carrying value of the Notes. Transaction costs initially attributable to the liability component were $3,400 and are being amortized to interest expense using the effective interest method over the term of the Notes. Transaction costs attributable to the equity component were $800 and are accounted for consistently with the equity component of the debt. The net carrying amount of the liability and equity components of the Notes was as follows: September 30, 2020 Liability component: Principal $ 125,000 Debt discount (equity component) (21,747) Unamortized transaction costs (3,316) Net carrying amount $ 99,937 Equity component, net of transaction costs $ 21,747 Interest expense recognized related to the Notes was as follows: Three and Nine Months Ended September 30, 2020 Contractual interest expense $ 791 Amortization of debt discount 753 Amortization of transaction costs 115 Total $ 1,659 As of September 30, 2020, the estimated fair value of the Notes was $129,741. We estimated the fair value based on the quoted market prices in an inactive market on the last trading day of the reporting period, which are considered Level 2 inputs. Capped Call Transactions In connection with the offering of the Notes, we entered into privately negotiated capped call transactions with certain counterparties (collectively, the Capped Calls). The Capped Calls have an initial strike price of approximately $8.53 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have an initial cap price of $13.38 per share, subject to certain adjustments. The Capped Calls are generally intended to reduce or offset the potential economic dilution of approximately 14.7 million shares to our common stock upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. As the Capped Calls are considered indexed to our own stock and are equity classified, they are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $16,400 incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital. Convertible Senior Notes and Capped Calls – Impact on Earnings per Share The 14.7 million shares underlying the conversion option of the Notes will not have an impact on our diluted earnings per share until the average market price of our common stock exceeds the conversion price of $8.53 per share, as we intend and expect to have the ability to settle the principal amount of the Notes in cash upon conversion. Under current accounting guidance we do not have sufficient substance to overcome the presumption of stock settlement at this time and would be required to calculate earnings per share under the "if converted" method. However, we are in a loss position and therefore, the effects of the Notes are anti-dilutive. Once we achieve net income, we will re-evaluate our intent and ability to settle the Notes in cash and will apply the appropriate earnings per share calculation method at that time. Line of Credit In July 2020, we entered into a Sixth Amendment (Sixth Amendment) to the Loan and Security Agreement (the Credit Agreement) with Silicon Valley Bank (SVB) originally entered into in November 2015. Under the Sixth Amendment, the maximum principal commitment amount remained at $20,000. In addition, the Sixth Amendment modified language within the Credit Agreement, which permitted us to issue our Notes. 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 September 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 September 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 September 30, 2020 and 2019, there was no interest expense, and fees expense and amortization was $15 and $10, respectively. For the nine months ended September 30, 2020 and 2019, there was no interest expense, and fees expense and amortization was $97 and $30, 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 | 9 Months Ended |
Sep. 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 September 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 | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net loss $ (3,985) $ (2,751) $ (10,968) $ (18,502) Basic weighted average outstanding shares of common stock 122,363 116,270 120,519 115,318 Basic weighted average outstanding shares of common stock 122,363 116,270 120,519 115,318 Dilutive effect of stock options, restricted stock units, and other equity incentive plans — — — — Diluted weighted average outstanding shares of common stock 122,363 116,270 120,519 115,318 Basic net loss per share $ (0.03) $ (0.02) $ (0.09) $ (0.16) Diluted net loss per share: $ (0.03) $ (0.02) $ (0.09) $ (0.16) For the three and nine months ended September 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Employee stock purchase plan 187 324 187 324 Stock options 6,676 1,433 6,401 1,977 Restricted stock units 1,894 567 1,984 884 8,757 2,324 8,572 3,185 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 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 nine months ended September 30, 2020 and 2019, we did not repurchase any shares under the repurchase program. As of September 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 September 30, 2020 was approximately 10,917. 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 months ended September 30, 2020, we did not issue any shares under the ESPP. During the nine months ended September 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 September 30, 2020, shares reserved for issuance to employees under this plan totaled 3,940, and we held employee contributions of $820 (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 September 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 September 30, 2020, the board of directors had not adopted any resolutions for the issuance of preferred stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 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 nine months ended September 30, 2020, was as follows: Foreign Available for Currency Sale Securities Total Balance, December 31, 2019 $ (9,210) $ — $ (9,210) Other comprehensive loss before reclassifications (89) (80) (169) Amounts reclassified from accumulated other comprehensive — — — Net current period other comprehensive loss (89) (80) (169) Balance, September 30, 2020 $ (9,299) $ (80) $ (9,379) |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 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 Nine Months Ended 2020 2019 2020 2019 Share-based compensation expense by type: Stock options $ 1,024 $ 1,044 $ 3,143 $ 3,130 Restricted stock units 713 2,149 8,413 6,834 ESPP 186 165 682 499 Total share-based compensation expense $ 1,923 $ 3,358 $ 12,238 $ 10,463 Share-based compensation expense: Cost of services $ 130 $ 331 $ 1,685 $ 1,119 General and administrative expense 1,272 2,006 5,770 6,240 Sales and marketing expense 206 584 2,756 1,666 Research and development expense 315 437 2,027 1,438 Total share-based compensation expense $ 1,923 $ 3,358 $ 12,238 $ 10,463 Unrecognized share-based compensation expense totaled approximately $16,692 at September 30, 2020, of which $5,374 related to stock options and $11,318 related to restricted stock units. We currently expect to recognize share-based compensation expense of $3,002 during the remainder of 2020, $8,450 in 2021 and the remainder thereafter based on scheduled vesting of the stock options and restricted stock units outstanding at September 30, 2020. We have recorded $1,091 of share based compensation expense during the nine months ended September 30, 2020, related to restricted stock units issued as part of our 2019 annual corporate bonus plan. |
Operating Leases - Right of Use
Operating Leases - Right of Use Assets and Purchase Commitments | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases - Right of Use Assets and Purchase Commitments | Operating Leases - Right of Use Assets and Purchase Commitments Right 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 September 30, 2020. Right-of-use assets $ 10,844 Lease liability obligations, current $ 2,654 Lease liability obligations, less current portion 11,745 Total lease liability obligations $ 14,399 Weighted-average remaining lease term 8.2 years Weighted-average discount rate 5.05 % During the three months ended September 30, 2020, we recognized approximately $752 in operating lease costs. Operating lease costs of $111 are included in cost of revenue, and $641 are included in operating expenses in our consolidated statements of operations. During the three months ended September 30, 2020, cash paid for operating leases was approximately $473. For the nine months ended September 30, 2020, we recognized approximately $2,350 in operating lease costs. Operating lease costs of $360 are included in cost of revenue, and $1,990 are included in operating expenses in our consolidated statements of operations. For the nine months ended September 30, 2020, cash paid for operating leases was approximately $1,438. During the three months ended September 30, 2019, we recognized approximately $787 in operating lease costs. Operating lease costs of $111 are included in cost of revenue, and $676 are included in operating expenses in our consolidated statements of operations. During the three months ended September 30, 2019, cash paid for operating leases was approximately $463. For the nine months ended September 30, 2019, we recognized approximately $2,730 in operating lease costs. Operating lease costs of $402 are included in cost of revenue, and $2,328 are included in operating expenses in our consolidated statements of operations. For the nine months ended September 30, 2019, cash paid for operating leases was approximately $1,515. Approximate future minimum lease payments for our right of use assets over the remaining lease periods as of September 30, 2020, are as follows: Remainder of 2020 $ 887 2021 3,065 2022 2,226 2023 1,743 2024 1,441 Thereafter 8,269 Total minimum payments 17,631 Less: amount representing interest 3,232 Total $ 14,399 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 September 30, 2020: Remainder of 2020 $ 13,444 2021 25,099 2022 11,310 2023 2,848 2024 354 Thereafter — Total minimum payments $ 53,055 |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations During the three months ended September 30, 2020, we had one customer, Amazon, who represented 10% or more of our total revenue. During the nine months ended September 30, 2020, we had two customers, Amazon and Sony, who each represented 10% or more of our total revenue. During the three and nine months ended September 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 $38,075 for the three months ended September 30, 2020, compared to $32,052 for the three months ended September 30, 2019. For the nine months ended September 30, 2020, revenue from customers located within the United States was $107,698, compared to $84,115 for the nine months ended September 30, 2019. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 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 September 30, 2020 and 2019, was $66 and $166, respectively. For the nine months ended September 30, 2020 and 2019, income tax expense was $377 and $544, 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 September 30, 2020, we are not under any federal or state examination for income taxes. For the three and nine months ended September 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 | 9 Months Ended |
Sep. 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 our 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 38,594 65 % $ 32,860 64 % $ 109,652 63 % $ 86,865 62 % EMEA 8,590 15 % 7,574 15 % 27,411 16 % 22,122 16 % Asia Pacific 12,059 20 % 10,887 21 % 37,738 21 % 31,518 22 % Total revenue $ 59,243 100 % $ 51,321 100 % $ 174,801 100 % $ 140,505 100 % 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 September 30, Nine Months Ended September 30, Country / Region 2020 2019 2020 2019 United States / Americas $ 38,075 $ 32,052 $ 107,698 $ 84,115 United Kingdom / EMEA $ 6,939 $ 5,813 $ 22,016 $ 16,227 Japan / Asia Pacific $ 7,703 $ 6,556 $ 24,251 $ 18,061 The following table sets forth long-lived assets by geographic area in which the assets are located: September 30, December 31, 2020 2019 Americas $ 34,264 $ 33,450 International 13,229 12,686 Total long-lived assets $ 47,493 $ 46,136 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of September 30, 2020, and December 31, 2019, we held certain assets and liabilities that were required to be measured at fair value on a recurring basis. The following is a summary of fair value measurements at September 30, 2020: Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets Significant Significant Assets: Money market funds (2) $ 39,968 $ 39,968 $ — $ — Certificate of deposit (1) 40 — 40 — Corporate notes and bonds (1) 46,627 — 46,627 — Municipal securities (1) 2,996 — 2,996 — Total assets measured at fair value $ 89,631 $ 39,968 $ 49,663 $ — _______________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The following is a summary of fair value measurements at December 31, 2019: Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets Significant Significant Assets: Certificate of deposit (1) 40 — 40 — _________________ (1) Classified in marketable securities The carrying amount of cash equivalents approximates fair value because their maturity is less than three months. The carrying amount of short-term and long-term marketable securities approximates fair value as the securities are marked to market as of each balance sheet date with any unrealized gains and losses reported in stockholders’ equity. The carrying amount of accounts receivable, accounts payable, and accrued liabilities approximates fair value due to the short-term maturity of the amounts. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 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. Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12 to simplifying the accounting for income taxes. ASU 2019-12 is intended to simplify various aspects related to accounting for income taxes, eliminates certain exceptions to the general principles in the Accounting Standards Codification (ASC) Topic 740 related to intra-period tax allocation, simplifies when companies recognize deferred taxes in an interim period, and clarifies certain aspects of the current guidance to promote consistent application. This guidance is effective for public business entities for fiscal years beginning after December 15, 2020, and for interim periods within those fiscal years, with early adoption permitted. ASU 2019-12 requires a retrospective, modified retrospective or prospective transition approach for individual aspects of the ASU. This guidance is applicable to us for our fiscal year beginning January 1, 2021. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, which simplifies the accounting for convertible instruments. ASU 2020-06 eliminates certain models that require separate accounting for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates certain of the conditions for equity classification for contracts in an entity’s own equity. ASU 2020-06 also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. ASU 2020-06 is effective for our fiscal year beginning after December 15, 2021, including interim periods within this fiscal year. Early adoption is permitted, but no earlier than our fiscal year beginning after December 15, 2020, including interim periods within those fiscal years. This guidance can be applied using either a modified or full retrospective approach. We expect to early adopt this guidance, however at this time we are currently evaluating the impact this guidance will have on our consolidated financial statements. |
Convertible Senior Notes | Convertible Senior Notes In July 2020, we issued $125,000 aggregate principal amount of 3.50% convertible senior notes. We separate our convertible senior notes (the Notes) into liability and equity components. The carrying amount of the liability component is calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option is determined by deducting the fair value of the liability component from the principal amount of the Notes. The excess of the principal amount of the Notes over the carrying amount of the liability component (debt discount) is amortized to interest expense at an effective interest rate over the contractual term of the Notes. The equity component is recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. We allocate the issuance costs to the liability and equity components of the Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component are amortized to interest expense using the effective interest method over the contractual terms of the Notes. Issuance costs attributable to the equity component are netted with the equity component in stockholders’ equity. |
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. |
Investments in Marketable Sec_2
Investments in Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | The following is a summary of marketable securities (designated as available-for-sale) at September 30, 2020. Amortized Gross Gross Estimated Certificate of deposit $ 40 $ — $ — $ 40 Corporate notes and bonds 46,705 — 78 46,627 Municipal securities 2,997 1 2 2,996 Total marketable securities $ 49,742 $ 1 $ 80 $ 49,663 The following is a summary of marketable securities (designated as available-for-sale) at December 31, 2019. Amortized Gross Gross Estimated Certificate of deposit $ 40 $ — $ — $ 40 |
Amortized Cost and Estimated Fair Value of Marketable Securities by Maturity | The amortized cost and estimated fair value of marketable securities at September 30, 2020, by maturity are shown below: Amortized Gross Gross Estimated Available-for-sale securities: Due in one year or less $ 42,175 $ 1 $ 69 $ 42,107 Due after one year and through five years 7,567 — 11 7,556 Total marketable securities $ 49,742 $ 1 $ 80 $ 49,663 The amortized cost and estimated fair value of marketable securities at December 31, 2019, by maturity are shown below: Amortized Gross Gross Estimated Available-for-sale securities: Due after one year and through five years 40 — — 40 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Summary of Accounts Receivable and Allowances for Doubtful Accounts | Accounts receivable, net include: September 30, December 31, 2020 2019 Accounts receivable $ 43,306 $ 35,619 Less: credit allowance (200) (170) Less: allowance for doubtful accounts (884) (973) Total accounts receivable, net $ 42,222 $ 34,476 Nine Months Ended September 30, 2020 Beginning of period 973 Provision for credit losses 476 Write-offs (565) End of period 884 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets include: September 30, December 31, 2020 2019 Prepaid bandwidth and backbone 1,324 1,717 VAT receivable 3,877 3,068 Prepaid expenses and insurance 2,731 1,685 Vendor deposits and other 4,629 3,450 Total prepaid expenses and other current assets $ 12,561 $ 9,920 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net include: September 30, December 31, 2020 2019 Network equipment $ 134,082 $ 126,975 Computer equipment and software 7,293 7,603 Furniture and fixtures 1,785 1,906 Leasehold improvements 7,455 7,888 Other equipment 21 54 Total property and equipment 150,636 144,426 Less: accumulated depreciation (103,143) (98,290) Total property and equipment, net $ 47,493 $ 46,136 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities include: September 30, December 31, 2020 2019 Accrued compensation and benefits $ 8,565 $ 4,918 Accrued cost of revenue 5,104 4,176 Accrued interest payable 791 — Other accrued expenses 3,124 4,304 Total other current liabilities $ 17,584 $ 13,398 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Debt | The net carrying amount of the liability and equity components of the Notes was as follows: September 30, 2020 Liability component: Principal $ 125,000 Debt discount (equity component) (21,747) Unamortized transaction costs (3,316) Net carrying amount $ 99,937 Equity component, net of transaction costs $ 21,747 Interest expense recognized related to the Notes was as follows: Three and Nine Months Ended September 30, 2020 Contractual interest expense $ 791 Amortization of debt discount 753 Amortization of transaction costs 115 Total $ 1,659 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net loss $ (3,985) $ (2,751) $ (10,968) $ (18,502) Basic weighted average outstanding shares of common stock 122,363 116,270 120,519 115,318 Basic weighted average outstanding shares of common stock 122,363 116,270 120,519 115,318 Dilutive effect of stock options, restricted stock units, and other equity incentive plans — — — — Diluted weighted average outstanding shares of common stock 122,363 116,270 120,519 115,318 Basic net loss per share $ (0.03) $ (0.02) $ (0.09) $ (0.16) Diluted net loss per share: $ (0.03) $ (0.02) $ (0.09) $ (0.16) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the three and nine months ended September 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Employee stock purchase plan 187 324 187 324 Stock options 6,676 1,433 6,401 1,977 Restricted stock units 1,894 567 1,984 884 8,757 2,324 8,572 3,185 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Changes in the components of accumulated other comprehensive loss, net of tax, for the nine months ended September 30, 2020, was as follows: Foreign Available for Currency Sale Securities Total Balance, December 31, 2019 $ (9,210) $ — $ (9,210) Other comprehensive loss before reclassifications (89) (80) (169) Amounts reclassified from accumulated other comprehensive — — — Net current period other comprehensive loss (89) (80) (169) Balance, September 30, 2020 $ (9,299) $ (80) $ (9,379) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 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 Nine Months Ended 2020 2019 2020 2019 Share-based compensation expense by type: Stock options $ 1,024 $ 1,044 $ 3,143 $ 3,130 Restricted stock units 713 2,149 8,413 6,834 ESPP 186 165 682 499 Total share-based compensation expense $ 1,923 $ 3,358 $ 12,238 $ 10,463 Share-based compensation expense: Cost of services $ 130 $ 331 $ 1,685 $ 1,119 General and administrative expense 1,272 2,006 5,770 6,240 Sales and marketing expense 206 584 2,756 1,666 Research and development expense 315 437 2,027 1,438 Total share-based compensation expense $ 1,923 $ 3,358 $ 12,238 $ 10,463 |
Operating Leases - Right of U_2
Operating Leases - Right of Use Assets and Purchase Commitments (Tables) | 9 Months Ended |
Sep. 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 September 30, 2020. Right-of-use assets $ 10,844 Lease liability obligations, current $ 2,654 Lease liability obligations, less current portion 11,745 Total lease liability obligations $ 14,399 Weighted-average remaining lease term 8.2 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 September 30, 2020, are as follows: Remainder of 2020 $ 887 2021 3,065 2022 2,226 2023 1,743 2024 1,441 Thereafter 8,269 Total minimum payments 17,631 Less: amount representing interest 3,232 Total $ 14,399 |
Minimum Purchase Commitments | The following summarizes our minimum non-cancellable commitments for future periods as of September 30, 2020: Remainder of 2020 $ 13,444 2021 25,099 2022 11,310 2023 2,848 2024 354 Thereafter — Total minimum payments $ 53,055 |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Areas (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Revenue Earned by Geographic Area | The following table sets forth our revenue by geographic area: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Americas $ 38,594 65 % $ 32,860 64 % $ 109,652 63 % $ 86,865 62 % EMEA 8,590 15 % 7,574 15 % 27,411 16 % 22,122 16 % Asia Pacific 12,059 20 % 10,887 21 % 37,738 21 % 31,518 22 % Total revenue $ 59,243 100 % $ 51,321 100 % $ 174,801 100 % $ 140,505 100 % |
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 September 30, Nine Months Ended September 30, Country / Region 2020 2019 2020 2019 United States / Americas $ 38,075 $ 32,052 $ 107,698 $ 84,115 United Kingdom / EMEA $ 6,939 $ 5,813 $ 22,016 $ 16,227 Japan / Asia Pacific $ 7,703 $ 6,556 $ 24,251 $ 18,061 |
Long-lived Assets by Geographical Area | The following table sets forth long-lived assets by geographic area in which the assets are located: September 30, December 31, 2020 2019 Americas $ 34,264 $ 33,450 International 13,229 12,686 Total long-lived assets $ 47,493 $ 46,136 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Money Market Funds, Marketable Securities, Other Investment-related Assets and Current Liabilities | The following is a summary of fair value measurements at September 30, 2020: Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets Significant Significant Assets: Money market funds (2) $ 39,968 $ 39,968 $ — $ — Certificate of deposit (1) 40 — 40 — Corporate notes and bonds (1) 46,627 — 46,627 — Municipal securities (1) 2,996 — 2,996 — Total assets measured at fair value $ 89,631 $ 39,968 $ 49,663 $ — _______________ (1) Classified in marketable securities (2) Classified in cash and cash equivalents The following is a summary of fair value measurements at December 31, 2019: Fair Value Measurements at Reporting Date Using Description Total Quoted Prices In Active Markets for Identical Assets Significant Significant Assets: Certificate of deposit (1) 40 — 40 — _________________ (1) Classified in marketable securities |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jul. 27, 2020 | |
Debt Instrument [Line Items] | |||||
Contract terms | These customers have entered into contracts with contract terms generally from one to four years. | ||||
Committed revenue from minimum commitment contracts | $ 3,641,000 | $ 3,641,000 | |||
Minimum commitment contracts revenue recognized in period | $ 1,911,000 | $ 2,200,000 | $ 6,008,000 | $ 7,400,000 | |
Convertible Senior Notes due 2025 | Convertible debt | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 125,000,000 | ||||
Stated interest rate | 3.50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Performance Obligations (Details) | Sep. 30, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining unsatisfied performance obligations to be recognized period | 3 months |
Percent of remaining unsatisfied performance obligations to be recognized | 37.00% |
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 | 57.00% |
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% |
Investments in Marketable Sec_3
Investments in Marketable Securities - Summary of Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 49,742 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 80 | |
Estimated Fair Value | 49,663 | |
Certificate of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 40 | $ 40 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 40 | $ 40 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 46,705 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 78 | |
Estimated Fair Value | 46,627 | |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,997 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 2 | |
Estimated Fair Value | $ 2,996 |
Investments in Marketable Sec_4
Investments in Marketable Securities - Amortized Cost and Estimated Fair Value of Marketable Securities by Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 42,175 | |
Amortized Cost, Due after one year and through five years | 7,567 | $ 40 |
Amortized Cost | 49,742 | |
Gross Unrealized Gains, Due in one year or less | 1 | |
Gross Unrealized Gains, Due after one year and through five years | 0 | 0 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses, Due in one year or less | 69 | |
Gross Unrealized Losses, Due after one year and through five years | 11 | 0 |
Gross Unrealized Losses | 80 | |
Estimated Fair Value, Due in one year or less | 42,107 | |
Estimated Fair Value, Due after one year and through five years | 7,556 | $ 40 |
Estimated Fair Value | $ 49,663 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Summary of Accounts Receivable, net | ||||
Accounts receivable | $ 43,306 | $ 35,619 | ||
Less: credit allowance | (200) | (170) | ||
Less: allowance for doubtful accounts | $ (884) | (884) | (973) | |
Total accounts receivable, net | $ 42,222 | $ 34,476 | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning of period | 973 | |||
Provision for credit losses | 476 | $ 1,274 | ||
Write-offs | (565) | |||
End of period | $ 884 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid bandwidth and backbone | $ 1,324 | $ 1,717 |
VAT receivable | 3,877 | 3,068 |
Prepaid expenses and insurance | 2,731 | 1,685 |
Vendor deposits and other | 4,629 | 3,450 |
Total prepaid expenses and other current assets | $ 12,561 | $ 9,920 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property and equipment, net | ||
Total property and equipment | $ 150,636 | $ 144,426 |
Less: accumulated depreciation | (103,143) | (98,290) |
Total property and equipment, net | 47,493 | 46,136 |
Network equipment | ||
Property and equipment, net | ||
Total property and equipment | 134,082 | 126,975 |
Computer equipment and software | ||
Property and equipment, net | ||
Total property and equipment | 7,293 | 7,603 |
Furniture and fixtures | ||
Property and equipment, net | ||
Total property and equipment | 1,785 | 1,906 |
Leasehold improvements | ||
Property and equipment, net | ||
Total property and equipment | 7,455 | 7,888 |
Other equipment | ||
Property and equipment, net | ||
Total property and equipment | $ 21 | $ 54 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Cost of revenue depreciation expense | $ 5,602 | $ 4,961 | $ 16,112 | $ 13,905 |
Operating expense depreciation | $ 384 | $ 172 | $ 1,049 | $ 545 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Accrued compensation and benefits | $ 8,565 | $ 4,918 |
Accrued cost of revenue | 5,104 | 4,176 |
Accrued interest payable | 791 | 0 |
Other accrued expenses | 3,124 | 4,304 |
Total other current liabilities | $ 17,584 | $ 13,398 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ / shares in Units, shares in Millions | Jul. 27, 2020USD ($)trading_Day$ / sharesshares | Jul. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Jul. 22, 2020$ / shares | Dec. 31, 2019USD ($) |
Line of Credit Facility [Line Items] | ||||||||
Share price (in dollars per share) | $ / shares | $ 6.69 | |||||||
Convertible debt, fair value | $ 129,741,000 | $ 129,741,000 | ||||||
Costs incurred for capped calls | 16,413,000 | 16,413,000 | ||||||
Capped call | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Initial strike price (in dollars per share) | $ / shares | $ 8.53 | |||||||
Initial cap price (in dollars per share) | $ / shares | $ 13.38 | |||||||
Number of shares covered by capped calls | shares | 14.7 | |||||||
Costs incurred for capped calls | $ 16,400,000 | |||||||
Convertible Senior Notes due 2025 | Convertible debt | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Aggregate principal amount | $ 125,000,000 | |||||||
Stated interest rate | 3.50% | |||||||
Additional principal amount, option | $ 15,000,000 | |||||||
Net proceeds from debt issuance | $ 120,816,000 | |||||||
Conversion price (in dollars per share) | $ / shares | $ 8.53 | |||||||
Conversion ratio | 0.1172367 | |||||||
Share price premium | 27.50% | |||||||
Carrying amount | $ 102,500,000 | 99,937,000 | 99,937,000 | |||||
Effective interest rate | 8.60% | |||||||
Equity component, gross amount | $ 22,500,000 | |||||||
Debt term | 5 years | |||||||
Transaction costs, liability component | $ 3,400,000 | |||||||
Transaction costs, equity component | $ 800,000 | |||||||
Contractual interest expense | 791,000 | 791,000 | ||||||
Amortization of transaction costs | 115,000 | 115,000 | ||||||
Convertible Senior Notes due 2025 | Convertible debt | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Conversion ratio | 0.1494768 | |||||||
Convertible Senior Notes due 2025 | Convertible debt | Conversion covenant one | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Threshold percentage of stock price trigger | 130.00% | |||||||
Conversion price (in dollars per share) | $ / shares | $ 8.53 | |||||||
Threshold trading days | trading_Day | 20 | |||||||
Threshold consecutive trading days | trading_Day | 30 | |||||||
Convertible Senior Notes due 2025 | Convertible debt | Conversion covenant two | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Threshold percentage of stock price trigger | 98.00% | |||||||
Threshold consecutive trading days | trading_Day | 10 | |||||||
Consecutive trading days immediately after measurement period | trading_Day | 5 | |||||||
Convertible Senior Notes due 2025 | Convertible debt | Redemption option | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Threshold percentage of stock price trigger | 130.00% | |||||||
Threshold trading days | trading_Day | 41 | |||||||
Threshold consecutive trading days | trading_Day | 30 | |||||||
Redemption price percentage | 100.00% | |||||||
Convertible Senior Notes due 2025 | Convertible debt | Upon fundamental change | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Redemption price percentage | 100.00% | |||||||
Revolving credit facility | Credit Agreement | ||||||||
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% | ||||||
Contractual interest expense | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Amortization of transaction costs | $ 15,000 | $ 10,000 | $ 97,000 | $ 30,000 | ||||
Voting stock percentage in foreign subsidiaries | 65.00% | |||||||
Line of credit facility, covenant compliance, adjusted quick ratio | 1 | 1 | ||||||
Revolving credit facility | Credit Agreement | Alternative base rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Variable rate minimum | 0.25% |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Debt (Details) - Convertible Senior Notes due 2025 - Convertible debt - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Jul. 27, 2020 | |
Liability component: | |||
Principal | $ 125,000 | $ 125,000 | |
Debt discount (equity component) | (21,747) | (21,747) | |
Unamortized transaction costs | (3,316) | (3,316) | |
Net carrying amount | 99,937 | 99,937 | $ 102,500 |
Equity component, net of transaction costs | 21,747 | 21,747 | |
Interest Expense | |||
Contractual interest expense | 791 | 791 | |
Amortization of debt discount | 753 | 753 | |
Amortization of transaction costs | 115 | 115 | |
Total | $ 1,659 | $ 1,659 |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (3,985) | $ (2,751) | $ (10,968) | $ (18,502) |
Basic weighted average outstanding shares of common stock | 122,363 | 116,270 | 120,519 | 115,318 |
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 | 122,363 | 116,270 | 120,519 | 115,318 |
Basic net loss per share (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.09) | $ (0.16) |
Diluted net loss per share (in dollars per share) | $ (0.03) | $ (0.02) | $ (0.09) | $ (0.16) |
Net Loss per Share - Dilutive C
Net Loss per Share - Dilutive Common Stock (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units (in shares) | 8,757 | 2,324 | 8,572 | 3,185 |
Employee stock purchase plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units (in shares) | 187 | 324 | 187 | 324 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units (in shares) | 6,676 | 1,433 | 6,401 | 1,977 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded outstanding options and restricted stock units (in shares) | 1,894 | 567 | 1,984 | 884 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
May 31, 2019 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Mar. 14, 2017 | Jun. 30, 2013 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Issuance of common stock under employee stock purchase plan | $ 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 | 0 | 300,000 | |||||
Issuance of common stock under employee stock purchase plan | $ 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 | $ 820,000 | $ 820,000 | |||||
2007 Equity Incentive Plan | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Number of shares authorized for issuance | 10,917,000 | 10,917,000 | |||||
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 169,815 | $ 156,646 | $ 166,537 | $ 165,151 |
Other comprehensive loss before reclassifications | (169) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Other comprehensive income (loss) | 652 | (355) | (169) | 196 |
Ending balance | 177,679 | 157,924 | 177,679 | 157,924 |
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (10,031) | (9,482) | (9,210) | (10,033) |
Ending balance | (9,379) | $ (9,837) | (9,379) | $ (9,837) |
Foreign Currency | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (9,210) | |||
Other comprehensive loss before reclassifications | (89) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Other comprehensive income (loss) | (89) | |||
Ending balance | (9,299) | (9,299) | ||
Available for Sale Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | |||
Other comprehensive loss before reclassifications | (80) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Other comprehensive income (loss) | (80) | |||
Ending balance | $ (80) | $ (80) |
Share-Based Compensation - Comp
Share-Based Compensation - Components of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Components of share-based compensation expense | ||||
Share-based compensation | $ 1,923 | $ 3,358 | $ 12,238 | $ 10,463 |
Cost of services | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 130 | 331 | 1,685 | 1,119 |
General and administrative expense | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 1,272 | 2,006 | 5,770 | 6,240 |
Sales and marketing expense | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 206 | 584 | 2,756 | 1,666 |
Research and development expense | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 315 | 437 | 2,027 | 1,438 |
Stock options | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 1,024 | 1,044 | 3,143 | 3,130 |
Restricted stock units | ||||
Components of share-based compensation expense | ||||
Share-based compensation | 713 | 2,149 | 8,413 | 6,834 |
ESPP | ||||
Components of share-based compensation expense | ||||
Share-based compensation | $ 186 | $ 165 | $ 682 | $ 499 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense total | $ 16,692 | $ 16,692 | ||
Share-based compensation expense, remainder of year | 3,002 | 3,002 | ||
Share-based compensation expense, 2021 | 8,450 | 8,450 | ||
Share-based compensation expense | 1,923 | $ 3,358 | 12,238 | $ 10,463 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense total | 5,374 | 5,374 | ||
Share-based compensation expense | 1,024 | 1,044 | 3,143 | 3,130 |
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation expense total | 11,318 | 11,318 | ||
Share-based compensation expense | $ 713 | $ 2,149 | 8,413 | $ 6,834 |
Annual Corporate Bonus Plan | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,091 |
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 | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Operating Leased Assets [Line Items] | |||||
Right-of-use assets | $ 10,844 | $ 10,844 | $ 12,842 | ||
Operating lease liability obligations | 2,654 | 2,654 | 2,056 | ||
Operating lease liability obligations, less current portion | 11,745 | 11,745 | $ 13,488 | ||
Total lease liability obligations | $ 14,399 | $ 14,399 | |||
Weighted-average remaining lease term | 8 years 2 months 12 days | 8 years 2 months 12 days | |||
Weighted-average discount rate | 5.05% | 5.05% | |||
Operating lease costs | $ 752 | $ 787 | $ 2,350 | $ 2,730 | |
Operating cash flows from operating leases | 473 | 463 | 1,438 | 1,515 | |
Cost of Revenue | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease costs | 111 | 111 | 360 | 402 | |
Operating Expenses | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease costs | $ 641 | $ 676 | $ 1,990 | $ 2,328 |
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 | Sep. 30, 2020USD ($) |
Future minimum lease payments over remaining lease periods | |
Remainder of 2020 | $ 887 |
2021 | 3,065 |
2022 | 2,226 |
2023 | 1,743 |
2024 | 1,441 |
Thereafter | 8,269 |
Total minimum payments | 17,631 |
Less: amount representing interest | 3,232 |
Total | $ 14,399 |
Operating Leases - Right of U_5
Operating Leases - Right of Use Assets and Purchase Commitments - Minimum Purchase Commitments (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Minimum purchase commitments | |
Remainder of 2020 | $ 13,444 |
2021 | 25,099 |
2022 | 11,310 |
2023 | 2,848 |
2024 | 354 |
Thereafter | 0 |
Total minimum payments | $ 53,055 |
Concentrations (Details)
Concentrations (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)customercountry | Sep. 30, 2019USD ($)countrycustomer | Sep. 30, 2020USD ($)countrycustomer | Sep. 30, 2019USD ($)countrycustomer | |
Concentration Risk [Line Items] | ||||
Number of customers who represented 10% or more of total revenue | customer | 1 | 1 | 2 | 1 |
Revenue | $ 59,243 | $ 51,321 | $ 174,801 | $ 140,505 |
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 | $ 38,075 | $ 32,052 | $ 107,698 | $ 84,115 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 66 | $ 166 | $ 377 | $ 544 |
Segment Reporting and Geograp_3
Segment Reporting and Geographic Areas - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020LocationSegment | |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue earned by geographic area | ||||
Revenue | $ 59,243 | $ 51,321 | $ 174,801 | $ 140,505 |
Americas | ||||
Revenue earned by geographic area | ||||
Revenue | 38,594 | 32,860 | 109,652 | 86,865 |
EMEA | ||||
Revenue earned by geographic area | ||||
Revenue | 8,590 | 7,574 | 27,411 | 22,122 |
Asia Pacific | ||||
Revenue earned by geographic area | ||||
Revenue | $ 12,059 | $ 10,887 | $ 37,738 | $ 31,518 |
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 | 65.00% | 64.00% | 63.00% | 62.00% |
Sales revenue | Geographic concentration | EMEA | ||||
Revenue earned by geographic area | ||||
Percent of revenue | 15.00% | 15.00% | 16.00% | 16.00% |
Sales revenue | Geographic concentration | Asia Pacific | ||||
Revenue earned by geographic area | ||||
Percent of revenue | 20.00% | 21.00% | 21.00% | 22.00% |
Segment Reporting and Geograp_5
Segment Reporting and Geographic Areas - Schedule of Concentration of Revenue by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 59,243 | $ 51,321 | $ 174,801 | $ 140,505 |
Geographic concentration | Sales revenue | United States / Americas | ||||
Concentration Risk [Line Items] | ||||
Revenue | 38,075 | 32,052 | 107,698 | 84,115 |
Geographic concentration | Sales revenue | United Kingdom / EMEA | ||||
Concentration Risk [Line Items] | ||||
Revenue | 6,939 | 5,813 | 22,016 | 16,227 |
Geographic concentration | Sales revenue | Japan / Asia Pacific | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 7,703 | $ 6,556 | $ 24,251 | $ 18,061 |
Segment Reporting and Geograp_6
Segment Reporting and Geographic Areas - Long-lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Long-lived assets by geographical area | ||
Long-lived assets | $ 47,493 | $ 46,136 |
Americas | ||
Long-lived assets by geographical area | ||
Long-lived assets | 34,264 | 33,450 |
International | ||
Long-lived assets by geographical area | ||
Long-lived assets | $ 13,229 | $ 12,686 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | $ 89,631 | |
Money market funds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 39,968 | |
Certificate of deposit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 40 | $ 40 |
Corporate notes and bonds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 46,627 | |
Municipal securities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 2,996 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 39,968 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 39,968 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | Certificate of deposit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | Corporate notes and bonds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | Municipal securities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 49,663 | |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | |
Significant Other Observable Inputs (Level 2) | Certificate of deposit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 40 | 40 |
Significant Other Observable Inputs (Level 2) | Corporate notes and bonds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 46,627 | |
Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 2,996 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | |
Significant Unobservable Inputs (Level 3) | Certificate of deposit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | $ 0 |
Significant Unobservable Inputs (Level 3) | Corporate notes and bonds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | 0 | |
Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total assets measured at fair value | $ 0 |