Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Feb. 27, 2015 | Oct. 09, 2014 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | ||||
Document Type | 10-K | |||
Amendment Flag | FALSE | |||
Document Period End Date | 31-Dec-14 | |||
Document Fiscal Year Focus | 2014 | |||
Document Fiscal Period Focus | FY | |||
Trading Symbol | HUBS | |||
Entity Registrant Name | HUBSPOT INC | |||
Entity Central Index Key | 1404655 | |||
Current Fiscal Year End Date | -19 | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Current Reporting Status | Yes | |||
Entity Voluntary Filers | No | |||
Entity Filer Category | Non-accelerated Filer | |||
Entity Common Stock, Shares Outstanding | 31,498,756 | |||
Entity Public Float | $372,747,534 | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets and cash equivalents: | ||
Cash and cash equivalents | $123,721 | $12,643 |
Accounts receivable - net of allowance for doubtful accounts of $218 and $175 at December 31, 2014 and 2013, respectively | 14,270 | 7,220 |
Deferred commission expense | 5,995 | 3,991 |
Restricted cash | 230 | 307 |
Prepaid hosting costs | 1,777 | 2,958 |
Prepaid expenses and other current assets | 3,516 | 1,566 |
Total current assets | 149,509 | 28,685 |
Property and equipment, net | 11,381 | 7,243 |
Capitalized software development costs, net | 4,433 | 3,479 |
Restricted cash | 1,610 | |
Other assets | 116 | 65 |
Intangible assets, net | 89 | 147 |
Goodwill | 9,330 | 9,330 |
Total assets | 174,858 | 50,559 |
Current liabilities: | ||
Accounts payable | 2,800 | 2,547 |
Accrued compensation costs | 7,660 | 5,079 |
Other accrued expenses | 7,953 | 7,160 |
Capital lease obligations | 100 | 96 |
Deferred rent | 110 | |
Deferred revenue | 40,805 | 24,662 |
Total current liabilities | 59,428 | 39,544 |
Capital lease obligations, net of current portion | 78 | 203 |
Deferred rent, net of current portion | 4,153 | 2,523 |
Deferred revenue, net of current portion | 500 | 244 |
Total liabilities | 64,159 | 42,514 |
Commitments and contingencies (Note 8) | ||
Redeemable convertible preferred stock: | ||
Redeemable convertible preferred stock, $0.001 par value - authorized 25,000 and 58,589 shares at December 31, 2014 and 2013: Designated, issued, and outstanding, 0 and 58,589 shares at December 31, 2014 and 2013, respectively (liquidation and redemption value of $0 at December 31, 2014 and $97,407 at December 31, 2013) | 101,293 | |
Stockholders' equity (deficit): | ||
Common stock, $0.001 par value - authorized, 500,000 and 100,000 shares; issued and outstanding, 31,431 and 5,301 at December 31, 2014 and 2013, respectively | 32 | 5 |
Additional paid-in capital | 265,113 | 12,898 |
Accumulated other comprehensive loss | -145 | -79 |
Accumulated deficit | -154,301 | -106,072 |
Total stockholders' equity (deficit) | 110,699 | -93,248 |
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $174,858 | $50,559 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $218 | $175 |
Redeemable convertible preferred stock, par value | $0.00 | $0.00 |
Redeemable convertible preferred stock, shares authorized | 25,000,000 | 58,589,000 |
Redeemable convertible preferred stock, shares designated | 0 | 58,589,000 |
Redeemable convertible preferred stock, shares issued | 0 | 58,589,000 |
Redeemable convertible preferred stock, shares outstanding | 0 | 58,589,000 |
Redeemable convertible preferred stock, liquidation value | 0 | 97,407 |
Redeemable convertible preferred stock, redemption value | $0 | $97,407 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 100,000,000 |
Common stock, shares issued | 31,431,000 | 5,301,000 |
Common stock, shares outstanding | 31,431,000 | 5,301,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Subscription | $106,319 | $70,819 | $45,870 |
Professional services and other | 9,557 | 6,815 | 5,734 |
Total revenue | 115,876 | 77,634 | 51,604 |
Cost of Revenues: | |||
Subscription | 25,655 | 20,280 | 10,834 |
Services | 11,425 | 8,759 | 6,004 |
Total cost of revenues | 37,080 | 29,039 | 16,838 |
Gross profit | 78,796 | 48,595 | 34,766 |
Operating expenses: | |||
Research and development | 25,638 | 15,018 | 10,585 |
Sales and marketing | 78,809 | 53,158 | 34,949 |
General and administrative | 22,958 | 14,669 | 7,972 |
Total operating expenses | 127,405 | 82,845 | 53,506 |
Loss from operations | -48,609 | -34,250 | -18,740 |
Total other income (expense): | |||
Interest income | 46 | 34 | 26 |
Interest expense | -322 | -20 | -63 |
Other | 564 | -38 | -1 |
Total other income (expense) | 288 | -24 | -38 |
Income before benefit for income taxes | -48,321 | -34,274 | -18,778 |
Income tax benefit | 92 | ||
Net loss | -48,229 | -34,274 | -18,778 |
Preferred stock accretion | 331 | 54 | 81 |
Net loss attributable to common stockholders | ($48,560) | ($34,328) | ($18,859) |
Net loss per common share, basic and diluted | ($4.20) | ($6.71) | ($4.01) |
Weighted average common shares used in computing basic and diluted net loss per common share: | 11,562 | 5,113 | 4,699 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net loss | ($48,229) | ($34,274) | ($18,778) |
Other comprehensive loss: | |||
Foreign currency translation adjustment | -66 | -69 | -10 |
Comprehensive loss | ($48,295) | ($34,343) | ($18,788) |
Consolidated_Statement_of_Rede
Consolidated Statement of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (USD $) | Total | Redeemable Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Equity (Deficit) [Member] |
In Thousands, except Share data | ||||||
Beginning Balance at Dec. 31, 2011 | ($47,702) | $66,062 | $5 | $5,313 | ($53,020) | |
Beginning Balance, shares at Dec. 31, 2011 | 52,322,000 | 4,421,000 | ||||
Exercise of common stock options | 697 | 697 | ||||
Exercise of common stock options, shares | 494,000 | |||||
Stock based compensation | 2,102 | 2,102 | ||||
Restricted shares vesting | 513 | 513 | ||||
Vesting of restricted common stock, shares | 89,000 | |||||
Issuance of common stock warrants | 50 | 50 | ||||
Issuance of Series E redeemable convertible preferred stock - net of issuance costs of $103 | 35,096 | |||||
Issuance of Series E redeemable convertible preferred stock, shares | 6,267,000 | |||||
Accretion of redeemable convertible preferred stock to redemption | -81 | -81 | -81 | |||
Accretion of redeemable convertible preferred stock to redemption | 81 | 81 | 81 | |||
Cumulative translation adjustment | -10 | -10 | ||||
Net loss | -18,778 | -18,778 | ||||
Ending Balance, Amount at Dec. 31, 2012 | -63,209 | 101,239 | 5 | 8,594 | -10 | -71,798 |
Ending Balance, shares at Dec. 31, 2012 | 58,589,000 | 5,004,000 | ||||
Exercise of common stock options | 621 | 621 | ||||
Exercise of common stock options, shares | 230,000 | |||||
Stock based compensation | 3,353 | 3,353 | ||||
Restricted shares vesting | 384 | 384 | ||||
Vesting of restricted common stock, shares | 67,000 | |||||
Accretion of redeemable convertible preferred stock to redemption | -54 | -54 | -54 | |||
Accretion of redeemable convertible preferred stock to redemption | 54 | 54 | 54 | |||
Cumulative translation adjustment | -69 | -69 | ||||
Net loss | -34,274 | -34,274 | ||||
Ending Balance, Amount at Dec. 31, 2013 | -93,248 | 101,293 | 5 | 12,898 | -79 | -106,072 |
Ending Balance, shares at Dec. 31, 2013 | 58,589,000 | 5,301,000 | ||||
Exercise of common stock options | 3,794 | 1 | 3,793 | |||
Exercise of common stock options, shares | 850,000 | 850,000 | ||||
Stock based compensation | 16,593 | 16,593 | ||||
Accretion of redeemable convertible preferred stock to redemption | -331 | -331 | -331 | |||
Accretion of redeemable convertible preferred stock to redemption | 331 | 331 | 331 | |||
Conversion of preferred stock to common stock | 101,624 | -101,624 | 20 | 101,604 | ||
Conversion of preferred stock to common stock, shares | -58,589,000 | 19,530,000 | ||||
Issuance of common stock in relation to Initial Public Offering, net of offering costs incurred of $3,126 | 130,562 | 6 | 130,556 | |||
Issuance of common stock in relation to Initial Public Offering, shares | 5,750,000 | |||||
Cumulative translation adjustment | -66 | -66 | ||||
Net loss | -48,229 | -48,229 | ||||
Ending Balance, Amount at Dec. 31, 2014 | $110,699 | $32 | $265,113 | ($145) | ($154,301) | |
Ending Balance, shares at Dec. 31, 2014 | 31,431,000 |
Consolidated_Statement_of_Rede1
Consolidated Statement of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Common stock, par value | $0.00 | $0.00 |
Net offering costs incurred | $3,126 | |
Series E Preferred Stock [Member] | Redeemable Convertible Preferred Stock [Member] | ||
Preferred stock issuance costs | $103 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities: | |||
Net loss | ($48,229) | ($34,274) | ($18,778) |
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: | |||
Depreciation and amortization | 5,714 | 4,472 | 2,736 |
Stock-based compensation | 16,358 | 3,464 | 2,515 |
Provision for income taxes | -133 | ||
Noncash interest expense | 50 | ||
Provision for doubtful accounts | 632 | 523 | 384 |
Noncash rent expense | 286 | 908 | |
Unrealized currency translation | -213 | ||
Changes in assets and liabilities | |||
Accounts receivable | -7,890 | -2,478 | -3,077 |
Prepaid expenses and other assets | -713 | -3,351 | -448 |
Deferred commission expense | -2,004 | -1,155 | -10 |
Accounts payable | 286 | -1,158 | 1,190 |
Accrued expenses | 4,734 | 4,259 | 2,118 |
Restricted cash | 157 | -67 | |
Deferred rent | 1,467 | 258 | -325 |
Deferred revenue | 17,084 | 8,791 | 7,838 |
Net cash and cash equivalents used in operating activities | -12,464 | -19,808 | -5,807 |
Investing Activities: | |||
Purchases of property and equipment | -7,266 | -4,358 | -322 |
Capitalization of software development costs | -4,634 | -3,432 | -2,261 |
Acquired of intangible assets ` | -80 | -190 | |
Restricted cash | 1,500 | -1,190 | 190 |
Net cash and cash equivalents used in investing activities | -10,480 | -9,170 | -2,393 |
Financing Activities: | |||
IPO proceeds, net of offering costs paid of $2,924 | 130,764 | ||
Net proceeds from issuance of redeemable convertible | 35,096 | ||
Proceeds from exercise of options | 3,794 | 621 | 697 |
Proceeds from draw-down on line of credit | 18,000 | -375 | |
Payments on line of credit | -18,000 | ||
Repayment of capital lease obligations | -121 | -107 | -83 |
Net cash and cash equivalents provided by financing activities | 134,437 | 514 | 35,335 |
Effect on exchange rate changes | -415 | 10 | -10 |
Net increase (decrease) in cash and cash equivalents | 111,078 | -28,454 | 27,125 |
Cash, beginning of year | 12,643 | 41,097 | 13,972 |
Cash and cash equivalents, end of year | 123,721 | 12,643 | 41,097 |
Supplemental cash flow disclosure: | |||
Cash paid for interest | 199 | 3 | 13 |
Non-cash investing and financing activities: | |||
Property and equipment acquired under capital lease | 299 | ||
Capital expenditures incurred but not yet paid | 111 | 1,499 | 206 |
IPO costs incurred but not yet paid | 202 | ||
Accretion of preferred stock | 331 | 54 | 81 |
Conversion of preferred stock to common stock | $101,624 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Statement of Cash Flows [Abstract] | |
Offering cost paid on initial public offering | $2,924 |
Organization_and_Operations
Organization and Operations | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Organization and Operations | 1. Organization and Operations |
HubSpot, Inc. (the “Company”), was formed as a limited liability company in Delaware on April 4, 2005. The Company converted to a Delaware corporation on June 7, 2007. The Company provides a cloud-based inbound marketing and sales platform which features integrated applications to help businesses attract visitors to their websites, convert visitors into leads, close leads into customers and delight customers so they become promoters of those businesses. These integrated applications include social media, search engine optimization, blogging, website content management, marketing automation, email, CRM, analytics, and reporting. | |
The Company is headquartered in Cambridge, Massachusetts, and has wholly-owned subsidiaries in Dublin, Ireland, which commenced operations in January of 2013 and in Sydney, Australia, which commenced operations in August of 2014. | |
On September 25, 2014, the Company’s Board of Directors and stockholders approved a 1-for-3 reverse stock split of the Company’s common stock. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the Stock Split. See Note 10 for additional information about the Stock Split. | |
On October 15, 2014, the Company closed its initial public offering (“IPO”) whereby 5,750,000 shares of common stock were sold to the public, including the underwriters’ overallotment option of 750,000 shares of common stock, at a price of $25.00 per share. The Company received aggregate proceeds of approximately $133.7 million from the IPO, net of underwriters’ discounts and commissions, but before deduction of offering expenses of approximately $3.1 million. Upon the closing of the IPO, all shares of the Company’s outstanding convertible preferred stock automatically converted into 19,529,713 shares of common stock. | |
All restricted stock units, or RSUs, granted to employees prior to the IPO vest upon the satisfaction of both a service condition and a performance condition. The service condition for a majority of the RSUs is satisfied over a period of four years. The performance condition will be satisfied on the date that is six months following the Company’s IPO. No stock-based compensation expense was recognized for RSUs prior to the IPO because an IPO is not considered probable until it occurs. Upon completion of the Company’s IPO the Company began recording stock-based compensation expense based on the grant-date fair value of the RSUs using the accelerated attribution method for RSUs granted prior to its IPO and using the straight-line method for RSUs granted following its IPO, net of estimated forfeitures. The stock compensation expense associated with RSUs where the service condition had been met prior to the IPO was also recognized on the date of the IPO, using the accelerated attribution method. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | ||||||||||||||||
Basis of Presentation —The consolidated financial statements have been prepared in U.S. dollars, in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions have been eliminated in consolidation. | |||||||||||||||||
Use of Estimates —The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Operating Segments —The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision makers (“CODMs”), which are the Company’s chief executive officer and chief operating officer, in deciding how to allocate resources and assess performance. The Company’s CODMs evaluate the Company’s financial information and resources and assess the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. | |||||||||||||||||
Historical Loss Per Share —Basic net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, common stock warrant, nonvested shares of restricted stock, RSUs and redeemable convertible preferred stock are considered to be common stock equivalents. The Company applied the two-class method to calculate its basic and diluted net loss per share of common stock, as its convertible preferred stock and common stock are participating securities. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. However, the two-class method does not impact the net loss per share of common stock as the Company was in a loss position for each of the periods presented and preferred stockholders do not participate in losses. | |||||||||||||||||
A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net loss attributable to common stockholders | $ | (48,560 | ) | $ | (34,328 | ) | $ | (18,859 | ) | ||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding—basic | 11,562 | 5,113 | 4,699 | ||||||||||||||
Dilutive effect of share equivalents resulting from stock options, RSUs, nonvested restricted stock, common stock warrant and redeemable convertible preferred shares (as converted) | — | — | — | ||||||||||||||
Weighted-average common shares outstanding-diluted | 11,562 | 5,113 | 4,699 | ||||||||||||||
Net loss per common share, basic and diluted | $ | (4.20 | ) | $ | (6.71 | ) | $ | (4.01 | ) | ||||||||
For the years ended December 2014, 2013 and 2012, the Company incurred net losses and, therefore, the effect of the Company’s outstanding stock options, common stock warrant, redeemable convertible preferred stock, RSUs and nonvested shares of restricted stock was not included in the calculation of diluted loss per share as the effect would be anti-dilutive. The following table contains share totals with a potentially dilutive impact (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Options to purchase common shares | 4,588 | 4,695 | 4,180 | ||||||||||||||
Common stock warrant | 13 | 13 | 13 | ||||||||||||||
Common stock subject to repurchase | — | — | 67 | ||||||||||||||
Convertible preferred shares (as converted) | — | 19,530 | 19,530 | ||||||||||||||
RSUs | 1,376 | 858 | — | ||||||||||||||
Cash and Cash Equivalents—The Company considers all highly liquid investments purchased with original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash held in bank deposit accounts and short-term, highly-liquid investments with remaining maturities of three months or less at the date of purchase, consisting of money-market funds. | |||||||||||||||||
Restricted Cash — The Company had restricted cash of $230 thousand at December 31, 2014 related to a leased facility. The Company had restricted cash of $1.9 million at December 31, 2013 which included $1.8 million for letters of credit for the Company’s leased facilities and $157 thousand in collateral for the Company’s corporate credit card borrowings. During the year ended December 31, 2014 the Company released from restrictions $1.7 million of cash, which includes the $157 thousand in collateral related to the Company’s corporate credit card borrowings and $1.5 million related to its leased facilities. | |||||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts —Accounts receivable are carried at the original invoiced amount less an allowance for doubtful accounts based on the probability of future collection. When management becomes aware of circumstances that may decrease the likelihood of collection, it records a specific allowance against amounts due, which reduces the receivable to the amount that management reasonably believes will be collected. For all other customers, management determines the adequacy of the allowance based on historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with specific accounts. To date, losses resulting from uncollected receivables have not exceeded management’s expectations. | |||||||||||||||||
The following is a rollforward of the Company’s allowance for doubtful accounts (in thousands): | |||||||||||||||||
Balance | Charged to | Deductions (1) | Balance | ||||||||||||||
Beginning | Costs or | at | |||||||||||||||
of Period | Expenses | End of | |||||||||||||||
Period | |||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||
Year ended December 31, 2014 | $ | 175 | $ | 632 | $ | (589 | ) | $ | 218 | ||||||||
Year ended December 31, 2013 | $ | 122 | $ | 523 | $ | (470 | ) | $ | 175 | ||||||||
Year ended December 31, 2012 | $ | 61 | $ | 384 | $ | (323 | ) | $ | 122 | ||||||||
-1 | Deductions include actual accounts written-off, net of recoveries. | ||||||||||||||||
Property and Equipment —Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to leasehold improvements. Depreciation is recorded over the following estimated useful lives: | |||||||||||||||||
Estimated Useful Life | |||||||||||||||||
Computer equipment and purchased software | 3 years | ||||||||||||||||
Office equipment | 5 years | ||||||||||||||||
Furniture and fixtures | 5 years | ||||||||||||||||
Leasehold improvements | Lesser of lease term or useful life | ||||||||||||||||
Impairment of Long-Lived Assets —Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable or that the useful lives of those assets are no longer appropriate. Management considers the following potential indicators of impairment of its long-lived assets (asset group): a substantial decrease in the Company’s stock price, a significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used, a significant adverse change in legal factors or in the business climate that could affect the value of the long-lived asset (asset group), an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group), and a current expectation that, more likely than not, a long lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. When such events occur, the Company compares the carrying amounts of the assets to their undiscounted expected future cash flows. If this comparison indicates that there may be an impairment, the amount of the impairment is calculated as the difference between the carrying value and fair value. For the years presented, the Company did not recognize an impairment charge. | |||||||||||||||||
Goodwill —Goodwill represents the excess of cost over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company has no other intangible assets with indefinite useful lives. Goodwill is not subject to amortization, but is monitored annually for impairment or more frequently if there are indicators of impairment. Management considers the following potential indicators of impairment: significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of acquired assets or the strategy of the Company’s overall business, significant negative industry or economic trends and a significant decline in the Company’s stock price for a sustained period. The Company performs its annual impairment test on November 30. Currently, the Company’s goodwill is evaluated at the entity level as it is determined there is only one reporting unit. The Company performs a two step impairment test. In the first step, the fair value of each reporting unit is compared to its carrying amount. If the fair value exceeds the carrying value of the net assets assigned, goodwill is not considered impaired and the second step is not required. If the carrying value exceeds the fair value, then the second step of the impairment test is performed in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of the goodwill exceeds the fair value, then an impairment charge is recorded. On November 30, 2014, the estimated fair value of the Company’s single reporting unit exceeded its carrying amount. Because the fair value of the Company’s single reporting unit was in excess of its carrying value and there were no indicators that the Company’s goodwill had become impaired since that date, there was no impairment as of November 30, 2014 through December 31, 2014. | |||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company did not recognize an impairment charge. | |||||||||||||||||
Advertising Expense —The Company expenses advertising as incurred, which is included in sales and marketing expense in the accompanying consolidated statements of operations. The Company incurred $3.3 million of advertising expense in 2014, $3.5 million in 2013, and $3.0 million in 2012. | |||||||||||||||||
Revenue Recognition —The Company primarily generates revenue from multi-element arrangements, which typically include subscriptions to its online software solution and professional services which includes on-boarding and training services. The Company’s customers do not have the right to take possession of the online software solution. The Company recognizes revenue when all of the following have occurred: | |||||||||||||||||
• | persuasive evidence of an arrangement with the customer exists; | ||||||||||||||||
• | service has been or is being provided; | ||||||||||||||||
• | the fees are fixed or determinable; and | ||||||||||||||||
• | collectability of the fees is reasonably assured. | ||||||||||||||||
The Company’s arrangements do not contain general rights of return. | |||||||||||||||||
In order to treat elements in a multiple-element arrangement as separate units of accounting, the delivered elements must have standalone value and delivery of the undelivered element is probable and within control of the Company. | |||||||||||||||||
The Company has determined that subscriptions for its online software solution have standalone value because, once a customer launches its initial site, the online software solution is fully functional and does not require any additional development, modification, or customization. | |||||||||||||||||
Professional services consists primarily of on-boarding and web-based and in-person training, are not required to use the online software solution, and are determined to have stand-alone value from the related subscription services because they are sold separately by the Company and third parties. | |||||||||||||||||
When multiple element arrangements are separated into different units of accounting, the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The estimated fair value of each element is determined based upon the following hierarchy: (1) vendor specific objective evidence (“VSOE”) of fair value, (2) third party evidence of selling price (“TPE”), or (3) the Company’s best estimate of selling price (“BESP”). The Company is not able to establish VSOE of fair value for undelivered elements, which in most instances is subscription and training and professional services, based on its pricing practices, and there is not a reliable measure of TPE of selling price. As such, arrangement consideration is allocated amongst multiple deliverable arrangements using BESP. The Company establishes BESP for each deliverable primarily considering the median of actual sales prices of each type of subscription and other professional services sold. The Company considers each type of subscription and service as well as pricing and geographic information when establishing BESP. Arrangement consideration is allocated such that the revenue recognized does not exceed the fee subject to refund. | |||||||||||||||||
Revenue from subscriptions is recognized ratably over the subscription period beginning on the date the Company’s subscription is made available to customers. Substantially all subscription contracts are one year or less. The Company recognizes revenue from on-boarding and training services as the services are provided. | |||||||||||||||||
The Company pays its marketing agency partners a commission of the subscription sales price for sales to customers. The classification of the commission paid on the Company’s consolidated statements of operations depends on who is purchasing its subscription. In instances where the customer is purchasing the subscription, the Company is the primary obligor and records the commission paid to the agency partner as sales and marketing expense. When the agency partner purchases the subscription directly from the Company, the Company nets the consideration paid to the partner against the associated revenue it recognizes, as in these instances the Company’s customer is the partner and the Company’s remaining obligations are to the partner. The Company does not believe that it receives a tangible benefit from the payment back to the partner. | |||||||||||||||||
Sales taxes collected from customers and remitted to government authorities are excluded from revenue. | |||||||||||||||||
Amounts that have been invoiced are recorded in accounts receivable and deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Deferred revenue represents amounts billed for which revenue has not yet been recognized. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as long-term deferred revenue. | |||||||||||||||||
Concentrations of Credit Risk and Significant Customers —Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, restricted cash and accounts receivable. | |||||||||||||||||
A significant portion of the Company’s cash is held at one financial institution that management believes to be of high credit quality. Although the Company deposits it cash with multiple financial institutions, its deposits exceed federally insured limits. | |||||||||||||||||
The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts, or other hedging arrangements. | |||||||||||||||||
The Company generally does not require collateral from its customers and generally requires payment 30 days from the invoice date. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. Credit risk arising from accounts receivable is mitigated as a result of transacting with a large number of geographically dispersed customers spread across various industries. | |||||||||||||||||
At December 31, 2014 and 2013 there were no customers that represented more than 10% of the net accounts receivable balance. There were no customers that individually exceeded 10% of the Company’s revenue in any of the periods presented. | |||||||||||||||||
Foreign Currency —The functional currency of the Company’s foreign subsidiaries is the local currency. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rates in effect at the balance sheet dates; with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive income (loss). Income and expense accounts are translated at the weighted-average exchange rates during the period. Equity transactions are translated at historical exchange rates. Foreign currency transaction gains and losses are recorded in other income (expense). | |||||||||||||||||
Research and Development —Research and development expenses include payroll, employee benefits and other expenses associated with product development. | |||||||||||||||||
Capitalized Software Development Costs —Certain payroll and stock compensation costs incurred to develop functionality for the Company’s software platform, as well as certain upgrades and enhancements that are expected to result in increased functionality are capitalized. The costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, certain internal costs are capitalized until the software is substantially complete and ready for its intended use. Capitalized software development costs are amortized on a straight-line basis over their estimated useful life of two years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. | |||||||||||||||||
Capitalized software development costs consisted of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Gross capitalized software development costs | $ | 14,219 | $ | 9,351 | |||||||||||||
Accumulated amortization | (9,786 | ) | (5,872 | ) | |||||||||||||
Capitalized software development costs, net | $ | 4,433 | $ | 3,479 | |||||||||||||
The Company capitalized software development costs of $4.9 million in 2014, $3.7 million in 2013, and $2.4 million in 2012. Stock-based compensation costs included in capitalized software were $235 thousand in 2014, $273 thousand in 2013, and $100 thousand in 2012. | |||||||||||||||||
Amortization of capitalized software development costs was $3.9 million in 2014, $2.6 million in 2013, and $1.5 million in 2012. Amortization expense is included in cost of revenue in the consolidated statements of operations. | |||||||||||||||||
Income Taxes —Deferred tax assets and liabilities are recognized for the differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities using tax rates expected to be in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||||||||||
The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of income tax expense. | |||||||||||||||||
Stock-Based Compensation —The Company accounts for all stock options and awards granted to employees and nonemployees using a fair value method. Stock-based compensation is recognized as an expense and is measured at the fair value of the award. The measurement date for employee awards is generally the date of the grant. The measurement date for nonemployee awards is generally the date the options vest. Stock-based compensation costs are recognized as expense over the requisite service period, which is generally the vesting period for awards, on a straight-line basis for awards with only a service condition, and using the graded-method for awards with both a performance and service that were granted prior to our IPO, and on a straight-line basis for the awards that were granted following our IPO. | |||||||||||||||||
Recent Accounting Pronouncements—In May 2014, the Financial Accounting Standards Board issued updated guidance and disclosure requirements for recognizing revenue. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for the Company on January 1, 2017 and may be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is evaluating the potential impact of adopting this new accounting guidance. | |||||||||||||||||
In June 2014, the Financial Accounting Standards Board issued a standards update on accounting for share-based payments when the terms of the award provide that a performance target could be achieved after a requisite service period. The standard is effective beginning January 1, 2016, with early adoption permitted. We do not expect it to have a material impact on our consolidated financial position, results of operations or cash flows. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value of Financial Instruments | 3. Fair Value of Financial Instruments | ||||||||||||
The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: | |||||||||||||
• | Level 1—Quoted prices in active markets for identical assets or liabilities. | ||||||||||||
• | Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||
• | Level 3—Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. | ||||||||||||
The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. The fair value of the Company’s investments in certain money market funds is their face value. Such instruments are classified as Level 1 and are included in cash and cash equivalents. | |||||||||||||
For certain other financial instruments, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. | |||||||||||||
The fair value of these financial assets was determined using the following inputs for the year end December 31, 2014. The Company did not have any cash equivalents at December 31, 2013. | |||||||||||||
December 31, 2014 | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | |||||||||||||
Money market funds | $ | 100,000 | $ | — | $ | — | |||||||
Total | $ | 100,000 | $ | — | $ | — | |||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | 4. Property and Equipment | ||||||||
Property and equipment as of December 31, 2014 and 2013 consists of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Computer equipment and purchased software | $ | 904 | $ | 1,504 | |||||
Furniture and fixtures | 3,010 | 2,106 | |||||||
Office equipment | 1,118 | 990 | |||||||
Leasehold improvements | 10,153 | 5,845 | |||||||
Capital leases and equipment under capital lease | 562 | 562 | |||||||
15,747 | 11,007 | ||||||||
Less accumulated depreciation and amortization | (4,366 | ) | (3,764 | ) | |||||
Total | $ | 11,381 | $ | 7,243 | |||||
Depreciation expense was $1.7 million in 2014, $1.5 million in 2013, and $988 thousand in 2012. | |||||||||
Accumulated depreciation for equipment under capital lease was $339 thousand as of December 31, 2014, $272 thousand as of December 31, 2013, and $153 thousand as of December 31, 2012 |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Intangible Assets | 5. Intangible Assets | ||||||||||||
Intangible assets as of December 31, 2014 and 2013 consist of the following: | |||||||||||||
Average Remaining | December 31, | ||||||||||||
Useful Life | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Acquired technology | 14 Months | $ | 745 | $ | 745 | ||||||||
Acquired intellectual property | 27 Months | 80 | — | ||||||||||
Accumulated amortization | (736 | ) | (598 | ) | |||||||||
Total | $ | 89 | $ | 147 | |||||||||
The estimated useful life of acquired technology and intellectual property is three years. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. | |||||||||||||
Amortization expense related to intangible assets was $138 thousand in 2014, $359 thousand in 2013, and $224 thousand in 2012. Amortization expense of acquired technology is included in cost of subscription revenue in the consolidated statements of operations. Amortization expense of acquired intellectual property is included in sales and marketing expense in the consolidated statements of operations. Estimated future amortization expense for intangible assets as of December 31, 2014 is as follows: | |||||||||||||
Years ended December 31, | Amortization | ||||||||||||
Expense | |||||||||||||
(in thousands) | |||||||||||||
2015 | $ | 52 | |||||||||||
2016 | 31 | ||||||||||||
2017 | 6 | ||||||||||||
Total | $ | 89 | |||||||||||
Debt
Debt | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Debt Disclosure [Abstract] | |||||
Debt | 6. Debt | ||||
Equipment Line—In June 2010, the Company executed a loan and security agreement (the “Loan Agreement”) establishing a $500,000 equipment line of credit (the “Equipment Line”) with a bank for eligible equipment purchases through June 28, 2011. Borrowings under the Line were due in 24 equal monthly payments of principal, plus accrued interest, at an annual rate of 3.25% beginning July 1, 2011 through June 1, 2013. Borrowings were collateralized by the equipment, software and other property financed by the Loan Agreement. The Company was required to maintain certain non-financial covenants. The Equipment Line expired on June 1, 2013 and was not renewed. | |||||
Growth Capital and Revolving Line—In April 2012, the Company amended and restated the Loan Agreement. The Company could borrow up to $5.0 million on a growth capital line of credit (“Growth Capital Line”) through April 2013, at the bank’s prime rate plus one percent. The Growth Capital Line was repayable beginning May 2013 in monthly installments of principal and interest through October 2015. The Company could borrow up to $5.0 million on a revolving line of credit (“Revolving Line”) at the bank’s prime rate, which was payable in full in October 2013. Both lines were established to provide financing for general corporate purposes. The Company was required to maintain a minimum cash account balance of $1.0 million and all of the Company’s assets, excluding intellectual property, was pledged as collateral. | |||||
As part of the amended and restated Loan Agreement, the Company issued the bank a fully exercisable warrant to purchase 13,158 shares of common stock at an exercise price of $5.70 per share with an expiration date of April 2022. The fair value of the warrant of $50 thousand was recorded as interest expense in 2012 as it was issued fully vested. The fair value of the warrant was estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions: | |||||
Risk-free interest rate | 2.25 | % | |||
Expected term (in years) | 10 | ||||
Volatility | 55 | % | |||
Expected dividends | — | % | |||
In May 2013, the Company executed the first amendment to the amended and restated Loan Agreement. The Growth Capital Line was extended through May 2014 and was repayable beginning June 2014 in monthly installments of principal and interest through November 2016. The Revolving Line was extended through May 2014. | |||||
In September 2013, the Company executed the second amendment to the amended and restated Loan Agreement, increasing the Revolving Line to $20.0 million and extending the maturity date to December 31, 2014. A 0.25% annual unused facility fee is applicable to the Revolving Line. | |||||
In March 2014, the Company executed the third amendment to the amended and restated Loan Agreement. The Growth Capital Line was extended with borrowings available through December 2014 and repayable over 30 months through June 2017. Additionally, the Revolving Line was increased to $30.0 million and is payable in full in March 2016. | |||||
In September 2014, the Company amended its Loan Agreement to combine its $5.0 million Growth Capital Line and $30.0 million Revolving Line into a single $35.0 million Revolving Line. The interest rate on the new Revolving Line is the bank’s prime rate plus 0.5% and is due in full in March 2016. During 2014 the Company drew down $18 million under the Revolving line. In October 2014, in connection with the Company’s IPO, the Company paid off the $18.0 million outstanding balance under the Revolving Line and there is no outstanding balance under the Revolving Line at December 31, 2014. |
Geographic_Data
Geographic Data | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Geographic Data | 7. Geographic Data | ||||||||||||
As more fully described in the Company’s Summary of Significant Accounting Policies, the Company operates in one operating segment. Revenue and long-lived assets by geographic region, based on physical location of the operations recording the sale or the assets are as follows: | |||||||||||||
Revenues by geographical region (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 103,356 | $ | 74,437 | $ | 51,604 | |||||||
Ireland | 12,270 | 3,197 | — | ||||||||||
Australia | 250 | — | — | ||||||||||
Total | $ | 115,876 | $ | 77,634 | $ | 51,604 | |||||||
Percentage of revenues generated outside of the United States | 11 | % | 4 | % | — | ||||||||
Total long lived assets by geographical region (in thousands): | |||||||||||||
As of | As of | ||||||||||||
December 31, | December 31 | ||||||||||||
2014 | 2013 | ||||||||||||
United States | $ | 10,711 | $ | 6,775 | |||||||||
Ireland | 670 | 468 | |||||||||||
Australia | — | — | |||||||||||
Total Long Lived Assets | $ | 11,381 | $ | 7,243 | |||||||||
Percentage of long lived assets held outside of the United States | 6 | % | 6 | % | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies | 8. Commitments and Contingencies | ||||||||
The Company leases its office facilities under non-cancelable operating leases that expire at various dates through November 2020. Rent expense for non-cancellable operating leases with free rental periods or scheduled rent increases is recognized on a straight-line basis over the terms of the leases. Improvement reimbursements from landlords of $3.3 million are being amortized on a straight-line basis into rent expense over the terms of the leases. The difference between required lease payments and rent expense has been recorded as deferred rent. | |||||||||
Rent expense was $4.9 million in 2014, $3.1 million in 2013, and $1.3 million in 2012. Deferred rent was $4.3 million as of December 31, 2014 and $2.5 million as of December 31, 2013. | |||||||||
In August 2011, the Company sublet a portion of its office space to an unrelated third party and entered into a sublease that expired in January 2014. Sublease income was $11 thousand in 2014, $135 thousand in 2013, and $130 thousand in 2012. | |||||||||
In October 2013, the Company extended a lease agreement for the purchase of equipment with a fair value of $299 thousand. The lease is payable in 36 monthly payments through September 2016. The total outstanding balance financed under capital leases was $178 thousand as of December 31, 2014, $299 thousand as of December 31, 2013. Amortization of assets recorded under capital leases is included in depreciation expense. | |||||||||
Future minimum payments under all operating and capital lease agreements as of December 31, 2014, are as follows: | |||||||||
Operating | Capital | ||||||||
(in thousands) | |||||||||
2015 | $ | 5,350 | 107 | ||||||
2016 | 5,893 | 80 | |||||||
2017 | 6,337 | — | |||||||
2018 | 6,099 | — | |||||||
2019 | 6,225 | — | |||||||
Thereafter | 5,707 | — | |||||||
Total | $ | 35,611 | 187 | ||||||
Less: Portion representing interest | 9 | ||||||||
Capital Lease Obligation | $ | 178 | |||||||
On November 13, 2013, a putative class action complaint was filed in the Middlesex County Superior Court in the Commonwealth of Massachusetts, entitled Albert McCormack v. HubSpot, Inc. The complaint alleged that the Company maintained a policy of not paying overtime to its business development representatives for all hours worked in excess of 40 hours per week. The complaint sought unpaid wages, multiple damages, injunctive relief, attorneys’ fees and costs. The Company settled this matter for an immaterial amount and the complaint was dismissed on November 3, 2014. | |||||||||
In addition, from time to time the Company may become involved in legal proceedings or be subject to claims arising in the ordinary course of its business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not have a material adverse effect on its business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. | |||||||||
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Loss | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Equity [Abstract] | |||||
Changes in Accumulated Other Comprehensive Loss | 9. Changes in Accumulated Other Comprehensive Loss | ||||
The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders’ equity (deficit), for the years ended December 31, 2014 and 2013: | |||||
Foreign | |||||
Currency Items | |||||
(in thousands) | |||||
Beginning balance at January 1, 2013 | $ | (10 | ) | ||
Other comprehensive income before reclassifications | (69 | ) | |||
Amounts reclassified from accumulated other comprehensive income | — | ||||
Ending balance at December 31, 2013 | $ | (79 | ) | ||
Other comprehensive income before reclassifications | (66 | ) | |||
Amounts reclassified from accumulated other comprehensive income | — | ||||
Ending balance at December 31, 2014 | $ | (145 | ) | ||
Reverse_Stock_Split
Reverse Stock Split | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Reverse Stock Split | 10. Reverse Stock Split |
On September 25, 2014, the Company’s Board of Directors and stockholders approved a 1-for-3 reverse stock split of the Company’s common stock. The reverse stock split became effective on September 25, 2014. Upon the effectiveness of the reverse stock split, (i) every three shares of outstanding common stock was combined into one share of common stock, (ii) the number of shares of common stock into which each outstanding warrant or option to purchase common stock is exercisable was proportionally decreased, (iii) the exercise price of each outstanding warrant or option to purchase common stock was proportionately increased, and (iv) the conversion ratio for each share of preferred stock outstanding was proportionately reduced. Unless otherwise indicated, all of the share numbers, share prices and exercise prices in these consolidated financial statements have been adjusted, on a retroactive basis, to reflect this 1-for-3 reverse stock split. |
Redeemable_Convertible_Preferr
Redeemable Convertible Preferred Stock | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Text Block [Abstract] | |||||
Redeemable Convertible Preferred Stock | 11. Redeemable Convertible Preferred Stock | ||||
Upon the closing of the IPO on October 15, 2014, all outstanding convertible preferred stock was converted into 19,529,713 shares of common stock on a one-to-three basis. No convertible preferred stock was outstanding as of December 31, 2014. | |||||
Prior to the IPO, the Company had authorized and issued Series A redeemable convertible preferred stock (“Series A”), Series B redeemable convertible preferred stock (“Series B”), Series C redeemable convertible preferred stock (“Series C”), Series D redeemable convertible preferred stock (“Series D”), Series D-1, and Series E redeemable convertible preferred stock (“Series E”) (collectively, “Preferred Stock”); which was classified as temporary equity. | |||||
The rights and privileges of Series A, Series B, Series C, Series D, Series D-1 and Series E (collectively, the “Preferred Stock”) were as follows: | |||||
Voting Rights—The holders of the Preferred Stock were entitled to vote on all matters and had the number of votes equal to the number of shares of common stock into which the Preferred Stock were then convertible. | |||||
Dividends—The holder of shares of Preferred Stock were entitled to receive dividends, when and if declared by the Company’s Board of Directors, out of any assets at the time legally available therefore, in preference to common stockholders. No dividends on convertible preferred stock were declared or paid by the Company through the date of the IPO. | |||||
Conversion—Prior to the IPO, each share of Preferred Stock was convertible at any time, at the option of the holder into shares of common stock, subject to the applicable conversion rate as determined by dividing the original issue price by the conversion price, with the exception of Series D-1. The issuance price was approximately $0.41 for Series A, $0.84 for Series B, $1.27 for Series C, $2.82 for Series D and $5.62 for Series E. The initial conversion prices were the same as the issuance prices and were adjusted to give effect to the Stock Split. Each share of Series D-1 could be converted as determined by dividing the Series D issuance price by the Series D conversion price (as adjusted for certain dilutive events). | |||||
Each share of Preferred Stock automatically converted into shares of common stock at the then-effective conversion rate on the date of the Company’s IPO. | |||||
Liquidation Preference—Prior to the IPO, the holders of the Preferred Stock had preferences over the holders of the Company’s common stock in the event of any voluntary or involuntary liquidation, dissolution, or winding-up of the Company, including a merger or consolidation. The amount that would have been paid per share was equal to the greater of approximately $0.41 for Series A, $0.84 for Series B, $1.27 for Series C, $2.82 for Series D, $1.77 for Series D-1 and $5.62 for Series E (as adjusted for certain dilutive events) plus any declared and unpaid dividends or such amount per share as would have been payable had all shares of the Preferred Stock been converted to common stock immediately prior to the liquidation event. Thereafter, any remaining assets available for distribution would have been distributed among the common stockholders. | |||||
Redemption—Prior to the IPO, upon written notice of 65% of the holders of Preferred Stock, the Preferred Stock was redeemable in three annual installments commencing 30 days after receipt by the Company at any time on or after March 3, 2020 for all series, except Series E. Series E was redeemable in one installment commencing 30 days after receipt by the Company at any time on or after March 3, 2020. The redemption price per share was approximately $0.41 for Series A, $0.84 for Series B, $1.27 for Series C, $2.82 for Series D, $1.77 for Series D-1 and $5.62 for Series E, plus any declared and unpaid dividends. | |||||
The Company was accreting Series A, Series B, Series C, Series D and Series E to their redemption value over the period from the date of issuance to March 3, 2020, such that the carrying amounts of the securities would equal the redemption amounts at the earliest redemption date. Upon the closing of the Company’s IPO all outstanding shares of preferred stock were accreted to their redemption value. | |||||
The following table contains the value of each class of Preferred Stock as of December 31, 2013, as well as the liquidation and redemption value at December 31, 2013: | |||||
December 31 2013 | |||||
(in thousands) | |||||
Series A designated, issued, and outstanding, 13,687 shares at December 31, 2013 (liquidation and redemption value of $5,625 at December 31, 2013) | $ | 5,528 | |||
Series B designated, issued, and outstanding, 14,313 shares at December 31, 2013 (liquidation and redemption value of $12,000 at December 31, 2013) | 11,979 | ||||
Series C designated, issued, and outstanding, 12,950 shares at December 31, 2013 (liquidation and redemption value of $16,458 at December 31, 2013) | 16,419 | ||||
Series D designated, issued, and outstanding, 7,634 shares at December 31, 2013 (liquidation and redemption value of $21,500 at December 31, 2013) | 22,388 | ||||
Series D-1 designated, issued, and outstanding, 3,737 shares at December 31, 2013 (liquidation and redemption value of $6,625 at December 31, 2013) | 9,866 | ||||
Series E designated, issued, and outstanding, 6,267 shares at December 31, 2013 (liquidation and redemption value of $35,199 at December 31, 2013) | 35,113 | ||||
Total | $ | 101,293 | |||
Stockholders_Equity_Deficit_an
Stockholders' Equity (Deficit) and Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stockholders' Equity (Deficit) and Stock-Based Compensation | 12. Stockholders’ Equity (Deficit) and Stock-Based Compensation | ||||||||||||||||
Common Stock Reserved—As of December 31, 2013 and 2014, the Company has authorized 100 million shares and 500 million shares of common stock, respectively. The number of shares of common stock reserved for the potential conversion of preferred stock, vesting of RSUs and exercise of a warrant and common stock options are as follows (in thousands): | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Conversion of Series A | — | 4,562 | |||||||||||||||
Conversion of Series B | — | 4,771 | |||||||||||||||
Conversion of Series C | — | 4,317 | |||||||||||||||
Conversion of Series D | — | 2,545 | |||||||||||||||
Conversion of Series D-1 | — | 1,246 | |||||||||||||||
Conversion of Series E | — | 2,089 | |||||||||||||||
Common stock warrant | 13 | 13 | |||||||||||||||
Restricted stock units | 1,376 | 858 | |||||||||||||||
Common stock options | 4,588 | 4,695 | |||||||||||||||
5,977 | 25,096 | ||||||||||||||||
Equity Incentive Plan—The Company’s 2007 Equity Incentive Plan (the “2007 Plan”) was terminated in connection with the IPO, and accordingly, no shares are available for issuance under the 2007 Plan. The 2007 Plan will continue to govern outstanding awards granted thereunder, The 2007 Plan provided for the grant of qualified incentive stock options and nonqualified stock options or other awards such as RSUs to the Company’s employees, officers, directors and outside consultants. As of December 31, 2014, 4.4 million options to purchase common stock and 1.3 million RSUs remained outstanding under the 2007 Plan. | |||||||||||||||||
On September 25, 2014, the Company’s board of directors adopted and the Company’s stockholders approved the 2014 Stock Option and Incentive Plan (the “2014 Plan”). The 2014 Plan became effective upon the closing of the Company’s IPO. The Company initially reserved 1,973,551 shares of its common stock, or the Initial Limit, for the issuance of awards under the 2014 Plan. The 2014 Plan provides that the number of shares reserved and available for issuance under the plan automatically increases each January 1, beginning on January 1, 2015, by 5% of the outstanding number of shares of the Company’s common stock on the immediately preceding December 31 or such lesser number of shares as determined by the compensation committee. This number is subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. As of December 31, 2014, 140 thousand options to purchase common stock and 35 thousand RSUs remained outstanding under the 2014 Plan. | |||||||||||||||||
Equity Compensation Expense—The Company’s equity compensation expense is comprised of awards of options to purchase common stock, restricted stock awards (RSAs) and RSUs. | |||||||||||||||||
The following two tables show stock compensation expense by award type and where the stock compensation expense is recorded in the Company’s consolidated statements of operations (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Options | $ | 5,128 | $ | 3,080 | $ | 2,002 | |||||||||||
Vesting of RSAs | — | 384 | 513 | ||||||||||||||
RSUs | 11,230 | — | — | ||||||||||||||
Total stock-based compensation | $ | 16,358 | $ | 3,464 | $ | 2,515 | |||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Cost of revenue, subscription | $ | 128 | $ | 50 | $ | 27 | |||||||||||
Cost of revenue, service | 498 | 211 | 100 | ||||||||||||||
Research and development | 6,190 | 691 | 739 | ||||||||||||||
Sales and marketing | 5,596 | 1,194 | 691 | ||||||||||||||
General and administrative | 3,946 | 1,318 | 958 | ||||||||||||||
Total stock-based compensation | $ | 16,358 | $ | 3,464 | $ | 2,515 | |||||||||||
Excluded from stock-based compensation expense is $235 thousand of capitalized software development costs in 2014, $273 thousand in 2013, and $100 thousand in 2012. | |||||||||||||||||
Stock Options—The fair value of employee options is estimated on the date of each grant using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Risk-free interest rate | 1.79% - 2.67% | 0.82% - 1.86% | 0.56% - 1.23% | ||||||||||||||
Expected term (in years) | 5.0 - 6.5 | 4.6 - 6.5 | 3.5 - 6.5 | ||||||||||||||
Volatility | 44.8% - 50.9% | 46.8% - 54.7% | 48% - 51% | ||||||||||||||
Expected dividends | — | — | — | ||||||||||||||
The weighted-average grant-date fair value of options granted was $9.72 per share in 2014, $6.84 per share in 2013, and $3.09 per share in 2012. | |||||||||||||||||
The interest rate was based on the U.S. Treasury bond rate at the date of grant with a maturity approximately equal to the expected term. The expected term of options granted to employees was calculated using the simplified method, which represents the average of the contractual term of the option and the weighted-average vesting period of the option. The expected term of options granted to nonemployees is equal to the remaining contractual term as of the measurement date. Expected volatility for the Company’s common stock was based on an average of the historical volatility of a peer group of similar public companies. The assumed dividend yield is based upon the Company’s expectation of not paying dividends in the foreseeable future. The estimation of share-based awards that will ultimately vest requires judgment, and to the extent actual results differ from the Company’s estimates, such amounts will be recorded as an adjustment in the period estimates are revised. | |||||||||||||||||
Prior to the Company’s IPO, the fair value of the common stock was determined by the Board of Directors at each award grant date based upon a variety of factors, including the results obtained from independent third-party valuations, the Company’s financial position and historical financial performance, the status of technological developments within the Company’s products, the composition and ability of the engineering and management team, an evaluation of benchmark of the Company’s competition, the climate in the marketplace, the illiquid nature of the common stock, arm’s-length sales of the Company’s capital stock (including redeemable convertible preferred stock), the effect of the rights and preferences of the preferred stockholders and the prospects of a liquidity event, among others. After the Company’s IPO, the fair value of the Company’s common stock is the closing price of the stock on the date of grant. | |||||||||||||||||
The stock option activity for the year ended December 31, 2014 is as follows: | |||||||||||||||||
Options (in | Weighted- | Weighted- | Aggregate | ||||||||||||||
thousands) | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Life (in years) | (in thousands) | |||||||||||||||
Outstanding—December 31, 2013 | 4,695 | $ | 6.66 | 8 | $ | 37,651 | |||||||||||
Granted | 1,067 | 19.39 | |||||||||||||||
Exercised | (850 | ) | 4.46 | ||||||||||||||
Forfeited/expired | (324 | ) | 12.1 | ||||||||||||||
Outstanding—December 31, 2014 | 4,588 | 9.64 | 7.6 | $ | 110,396 | ||||||||||||
Options vested or expected to vest—December 31, 2014 | 4,296 | $ | 9.14 | 7.5 | $ | 105,418 | |||||||||||
Options exercisable—December 31, 2014 | 2,438 | $ | 5.9 | 6.8 | $ | 67,557 | |||||||||||
Total unrecognized compensation cost related to the nonvested options granted under the 2007 Plan and the 2014 Plan was $10.4 million at December 31, 2014. That cost is expected to be recognized over a weighted-average period of 2.8 years as of December 31, 2014. | |||||||||||||||||
Common Stock Warrant—In 2012, in conjunction with the revolving and term loan agreement (see Note 6), the Company issued a warrant to purchase 13 thousand shares of common stock at an exercise price of $5.70 per share with an expiration date of April 2022. The warrant is exercisable and outstanding at December 31, 2013 and December 31, 2014. | |||||||||||||||||
Restricted Stock Awards—In June 2011, in connection with the Performable acquisition, the Company issued 220 thousand shares of restricted common stock to former Performable employees. These shares were subject to repurchase agreements and if the holder ceased to have a business relationship with the Company, the Company could repurchase any unvested shares of common stock held by these individuals at prices that ranged from $0.00143 to $0.855 per share. These shares were issued for no consideration and therefore the fair value of these shares of $1.2 million was recorded as compensation expense over the vesting period. As of December 31, 2013 the Company’s right to repurchase the RSAs had fully lapsed. | |||||||||||||||||
During 2012, the Company reclassified $2 thousand into stockholder’s deficit representing the amounts no longer subject to repurchase for 90 thousand shares that vested during the year. During 2013, the Company reclassified $2 thousand into stockholder’s deficit representing the amounts no longer subject to repurchase for 67 thousand shares that vested during the year. | |||||||||||||||||
The activity for the RSAs for the year ended December 31, 2013, is as follows: | |||||||||||||||||
Restricted Shares | Weighted- | ||||||||||||||||
(in thousands) | Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding—January 1, 2013 | 67 | $ | 5.7 | ||||||||||||||
Lapse in Company buyback right | (67 | ) | $ | 5.7 | |||||||||||||
Outstanding—December 31, 2013 | — | ||||||||||||||||
Restricted Stock Units—RSUs vest upon achievement of a service condition and a performance condition. As soon as practicable following each vesting date, the Company will issue to the holder of the RSUs the number of shares of common stock equal to the aggregate number of RSUs that have vested. Notwithstanding the foregoing, the Company may, in its sole discretion, in lieu of issuing shares of common stock to the holder of the RSUs, pay the holder an amount in cash equal to the fair market value of such shares of common stock. The service condition is a time-based condition met over a period of four years, with 25% met after one year, and then in equal monthly installments over the succeeding three years. The performance condition is met upon a sale event or six months following the Company’s IPO, which was not considered probable as of December 31, 2013 and therefore no stock-based compensation expense was recorded in the consolidated financial statements as of that date. Upon completion of the Company’s IPO the Company began recording stock-based compensation expense based on the grant-date fair value of the RSUs using the accelerated attribution method for RSUs granted prior to its IPO and using the straight-line method for RSUs granted following its IPO, net of estimated forfeitures. The stock compensation expense associated with RSUs where the service condition had been met prior to the IPO was also recognized on the date of the IPO, using the accelerated attribution method. The total stock-based compensation expense expected to be recorded over the remaining life of outstanding RSUs is approximately $10.5 million at December 31, 2014. That cost is expected to be recognized over a weighted-average period of 3.3 years as of December 31, 2014. As of December 31, 2014 there are 905 thousand RSUs expected to vest with an aggregate intrinsic value of $30.4 million. | |||||||||||||||||
The following table summarizes the activity related to RSUs for the year ended December 31, 2014: | |||||||||||||||||
RSUs Outstanding | |||||||||||||||||
Shares (in | Weighted-Average Grant | ||||||||||||||||
thousands) | Date Fair Value Per Share | ||||||||||||||||
Unvested and outstanding at December 31, 2013 | 858 | $ | 13.29 | ||||||||||||||
Granted | 784 | $ | 20.55 | ||||||||||||||
Vested | — | $ | — | ||||||||||||||
Canceled | (266 | ) | $ | 13.42 | |||||||||||||
Unvested and outstanding at December 31, 2014 | 1,376 | $ | 17.4 | ||||||||||||||
Employee_Stock_Purchase_Plan
Employee Stock Purchase Plan | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Purchase Plan | 13. Employee Stock Purchase Plan |
On September 25, 2014, the Company’s board of directors adopted and the Company’s stockholders approved the 2014 Employee Share Purchase Plan (the “2014 ESPP”). The 2014 ESPP became effective upon the closing of the Company’s IPO. The 2014 ESPP authorizes the issuance of up to a total of 394,710 shares of common stock to participating employees, and allows eligible employees to purchase shares of common stock at a 15% discount from the fair market value of the stock as determined on specific dates at six-month intervals. The offering periods generally start on the first trading day on or after January 1st and July 1st of each year. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 14. Income Taxes | ||||||||||||
Loss before provision for income taxes was as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
United States | $ | (49,634 | ) | $ | (34,393 | ) | $ | (18,358 | ) | ||||
Foreign | 1,313 | 119 | (420 | ) | |||||||||
Total | $ | (48,321 | ) | $ | (34,274 | ) | $ | (18,778 | ) | ||||
The following reconciles the differences between income taxes computed at the federal statutory rate of 35% and the provision for income taxes: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Expected income tax benefit at the federal statutory rate | $ | 16,913 | $ | 11,997 | $ | 6,572 | |||||||
State tax net of federal benefit | 1,709 | 1,197 | 653 | ||||||||||
Stock-based compensation | (886 | ) | (830 | ) | (462 | ) | |||||||
Difference in foreign tax rates | 289 | 27 | (95 | ) | |||||||||
Research and development credits | 1,331 | 444 | 140 | ||||||||||
Valuation allowance for deferred tax assets | (16,839 | ) | (12,367 | ) | (6,959 | ) | |||||||
Expired state net operating losses | (1,880 | ) | — | — | |||||||||
Other | (545 | ) | (468 | ) | 151 | ||||||||
Income tax benefit | $ | 92 | $ | — | $ | — | |||||||
In 2014, the Company had a current state and foreign income tax expense of $(20) thousand and $(12) thousand, respectively, and a deferred foreign income tax benefit of $124 thousand, in 2014. | |||||||||||||
Deferred Tax Assets and Liabilities—Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 46,615 | $ | 35,077 | $ | 23,810 | |||||||
Research and investment credits | 2,334 | 986 | 541 | ||||||||||
Accruals and reserves | 3,423 | 2,430 | 2,025 | ||||||||||
Depreciation | 372 | 172 | 202 | ||||||||||
Stock-based compensation | 5,409 | 395 | 124 | ||||||||||
Total deferred tax assets | $ | 58,153 | $ | 39,060 | $ | 26,702 | |||||||
Deferred tax liabilities: | |||||||||||||
Intangible and prepaid assets | (2,367 | ) | (57 | ) | (123 | ) | |||||||
Capitalized costs | (441 | ) | (620 | ) | (563 | ) | |||||||
Total deferred tax liabilities | (2,808 | ) | (677 | ) | (686 | ) | |||||||
Valuation allowance | (55,221 | ) | (38,383 | ) | (26,016 | ) | |||||||
Net deferred tax assets | $ | 124 | $ | — | $ | — | |||||||
The Company reviews all available evidence to evaluate its recovery of deferred tax assets, including its recent history of accumulated losses in all tax jurisdictions over the most recent three years as well as its ability to generate income in future periods. The Company has provided a valuation allowance against its U.S. net deferred tax assets as it is more likely than not that these assets will not be realized given the nature of the assets and the likelihood of future utilization. | |||||||||||||
The valuation allowance increased by $16.8 million in 2014, $12.4 million in 2013, and $7.0 million in 2012 due to the increase in the deferred tax assets by approximately the same amounts (primarily due to the increase in the net operating loss carryforwards). | |||||||||||||
U.S. income taxes on the undistributed earnings of the Company’s two non-U.S. subsidiaries have not been provided for as the Company currently plans to indefinitely reinvest these amounts and has the ability to do so. Cumulative undistributed foreign earnings were not material at December 31, 2014 and December 31, 2013. The Company does not believe it is practicable to estimate with reasonable accuracy the hypothetical amount of the unrecognized deferred tax liability on undistributed foreign earnings given the many factors and assumptions required to estimate the taxable amount after reduction for available foreign tax credits. | |||||||||||||
The Company had federal and state net operating loss carryforwards of $124.3 million and $79.7 million, respectively at December 31, 2014, which expire at various dates through 2034. The Company has generated net operating loss carryforwards from stock compensation deductions and the amount of federal and state excess tax benefits totaling $1.5 million will be credited to additional paid-in capital when realized. | |||||||||||||
The Company had federal research and development credit carryforwards of $2.7 million at December 31, 2014 that expire at various dates through 2034. The Company also has state research and investment credit carryforwards of $1.7 million and $320 thousand, respectively that expire at various dates through 2034. | |||||||||||||
On December 19, 2014 the Tax Increase Prevention Act was signed into law. The Act contains provisions that extended the federal research credit through the end of 2014. The federal research credit provisions had previously expired at the end of 2013. A benefit of $839 thousand for 2014 federal research credit is reflected in the financial statements. | |||||||||||||
Uncertain Tax Positions—The Company accounts for uncertainty in income taxes using a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination by the tax authority, including resolutions of any related appeals or litigation processes, based on technical merit. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. | |||||||||||||
The following summarizes activity related to unrecognized tax benefits: | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Unrecognized benefit—beginning of the year | $ | 1,030 | $ | 667 | $ | 552 | |||||||
Gross increases—current period positions | 683 | 363 | 115 | ||||||||||
Unrecognized benefit—end of period | $ | 1,713 | $ | 1,030 | $ | 667 | |||||||
All of the unrecognized tax benefits decrease deferred tax assets with a corresponding decrease to the valuation allowance. None of the unrecognized tax benefits would affect the Company’s effective tax rate if recognized in the future. | |||||||||||||
The Company has elected to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. No interest or penalties have been recorded through December 31, 2014. | |||||||||||||
The Company does not expect any significant change in its unrecognized tax benefits within the next 12 months. | |||||||||||||
The Company files tax returns in the United States, Ireland, Australia, and various state jurisdictions. All of the Company’s tax years remain open to examination by major taxing jurisdictions to which the Company is subject, as carryforward attributes generated in past years may still be adjusted upon examination by the Internal Revenue Service or state and foreign tax authorities if they have or will be used in future periods. The Company is routinely examined by various taxing authorities. The Company does not expect that the results of ongoing examinations will have a material effect on its financial condition or results of operations. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | 15. Employee Benefit Plan |
In July 2008, the Company established a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pretax basis, subject to legal limitations. Fiscal year 2013 was the first year the Company made matching contributions to the 401(k) Plan. Total contributions were $549 thousand in 2014 and $366 thousand in 2013. |
Quarterly_Financial_Results_un
Quarterly Financial Results (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Results (unaudited) | 16. Quarterly Financial Results (unaudited) | ||||||||||||||||
Fourth | Third | Second | First | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
Revenue | $ | 34,157 | $ | 30,448 | $ | 27,098 | $ | 24,174 | |||||||||
Cost of revenue | 10,522 | 9,705 | 8,739 | 8,114 | |||||||||||||
Gross profit | 23,635 | 20,743 | 18,359 | 16,060 | |||||||||||||
Net loss | (19,697 | ) | (10,793 | ) | (8,279 | ) | (9,465 | ) | |||||||||
Net loss attributable to common stockholders | (19,988 | ) | (10,806 | ) | (8,292 | ) | (9,478 | ) | |||||||||
Basic and diluted net loss attributable to common stockholders per share | $ | (0.69 | ) | $ | (1.84 | ) | $ | (1.44 | ) | $ | (1.73 | ) | |||||
Year ended December 31, 2013 | |||||||||||||||||
Revenue | $ | 22,379 | $ | 20,179 | $ | 18,336 | $ | 16,740 | |||||||||
Cost of revenue | 7,870 | 7,382 | 7,347 | 6,440 | |||||||||||||
Gross profit | 14,509 | 12,797 | 10,989 | 10,300 | |||||||||||||
Net loss | (8,425 | ) | (9,511 | ) | (8,803 | ) | (7,536 | ) | |||||||||
Net loss attributable to common stockholders | (8,438 | ) | (9,524 | ) | (8,816 | ) | (7,549 | ) | |||||||||
Basic and diluted net loss attributable to common stockholders per share | $ | (1.63 | ) | $ | (1.85 | ) | $ | (1.73 | ) | $ | (1.50 | ) | |||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Basis of Presentation | Basis of Presentation — The consolidated financial statements have been prepared in U.S. dollars, in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions have been eliminated in consolidation. | ||||||||||||||||
Use of Estimates | Use of Estimates — The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||
Operating Segments | Operating Segments — The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision makers (“CODMs”), which are the Company’s chief executive officer and chief operating officer, in deciding how to allocate resources and assess performance. The Company’s CODMs evaluate the Company’s financial information and resources and assess the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. | ||||||||||||||||
Historical Loss Per Share | Historical Loss Per Share — Basic net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net loss per share attributable to common stockholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, common stock warrant, nonvested shares of restricted stock, RSUs and redeemable convertible preferred stock are considered to be common stock equivalents. The Company applied the two-class method to calculate its basic and diluted net loss per share of common stock, as its convertible preferred stock and common stock are participating securities. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. However, the two-class method does not impact the net loss per share of common stock as the Company was in a loss position for each of the periods presented and preferred stockholders do not participate in losses. | ||||||||||||||||
A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands, except per share | |||||||||||||||||
amounts) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net loss attributable to common stockholders | $ | (48,560 | ) | $ | (34,328 | ) | $ | (18,859 | ) | ||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding—basic | 11,562 | 5,113 | 4,699 | ||||||||||||||
Dilutive effect of share equivalents resulting from stock options, RSUs, nonvested restricted stock, common stock warrant and redeemable convertible preferred shares (as converted) | — | — | — | ||||||||||||||
Weighted-average common shares outstanding-diluted | 11,562 | 5,113 | 4,699 | ||||||||||||||
Net loss per common share, basic and diluted | $ | (4.20 | ) | $ | (6.71 | ) | $ | (4.01 | ) | ||||||||
For the years ended December 2014, 2013 and 2012, the Company incurred net losses and, therefore, the effect of the Company’s outstanding stock options, common stock warrant, redeemable convertible preferred stock, RSUs and nonvested shares of restricted stock was not included in the calculation of diluted loss per share as the effect would be anti-dilutive. The following table contains share totals with a potentially dilutive impact (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Options to purchase common shares | 4,588 | 4,695 | 4,180 | ||||||||||||||
Common stock warrant | 13 | 13 | 13 | ||||||||||||||
Common stock subject to repurchase | — | — | 67 | ||||||||||||||
Convertible preferred shares (as converted) | — | 19,530 | 19,530 | ||||||||||||||
RSUs | 1,376 | 858 | — | ||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents—The Company considers all highly liquid investments purchased with original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash held in bank deposit accounts and short-term, highly-liquid investments with remaining maturities of three months or less at the date of purchase, consisting of money-market funds. | ||||||||||||||||
Restricted Cash | Restricted Cash — The Company had restricted cash of $230 thousand at December 31, 2014 related to a leased facility. The Company had restricted cash of $1.9 million at December 31, 2013 which included $1.8 million for letters of credit for the Company’s leased facilities and $157 thousand in collateral for the Company’s corporate credit card borrowings. During the year ended December 31, 2014 the Company released from restrictions $1.7 million of cash, which includes the $157 thousand in collateral related to the Company’s corporate credit card borrowings and $1.5 million related to its leased facilities. | ||||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts —Accounts receivable are carried at the original invoiced amount less an allowance for doubtful accounts based on the probability of future collection. When management becomes aware of circumstances that may decrease the likelihood of collection, it records a specific allowance against amounts due, which reduces the receivable to the amount that management reasonably believes will be collected. For all other customers, management determines the adequacy of the allowance based on historical loss patterns, the number of days that billings are past due and an evaluation of the potential risk of loss associated with specific accounts. To date, losses resulting from uncollected receivables have not exceeded management’s expectations. | ||||||||||||||||
The following is a rollforward of the Company’s allowance for doubtful accounts (in thousands): | |||||||||||||||||
Balance | Charged to | Deductions (1) | Balance | ||||||||||||||
Beginning | Costs or | at | |||||||||||||||
of Period | Expenses | End of | |||||||||||||||
Period | |||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||
Year ended December 31, 2014 | $ | 175 | $ | 632 | $ | (589 | ) | $ | 218 | ||||||||
Year ended December 31, 2013 | $ | 122 | $ | 523 | $ | (470 | ) | $ | 175 | ||||||||
Year ended December 31, 2012 | $ | 61 | $ | 384 | $ | (323 | ) | $ | 122 | ||||||||
-1 | Deductions include actual accounts written-off, net of recoveries. | ||||||||||||||||
Property and Equipment | Property and Equipment — Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to leasehold improvements. Depreciation is recorded over the following estimated useful lives: | ||||||||||||||||
Estimated Useful Life | |||||||||||||||||
Computer equipment and purchased software | 3 years | ||||||||||||||||
Office equipment | 5 years | ||||||||||||||||
Furniture and fixtures | 5 years | ||||||||||||||||
Leasehold improvements | Lesser of lease term or useful life | ||||||||||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets — Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable or that the useful lives of those assets are no longer appropriate. Management considers the following potential indicators of impairment of its long-lived assets (asset group): a substantial decrease in the Company’s stock price, a significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used, a significant adverse change in legal factors or in the business climate that could affect the value of the long-lived asset (asset group), an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group), and a current expectation that, more likely than not, a long lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. When such events occur, the Company compares the carrying amounts of the assets to their undiscounted expected future cash flows. If this comparison indicates that there may be an impairment, the amount of the impairment is calculated as the difference between the carrying value and fair value. For the years presented, the Company did not recognize an impairment charge. | ||||||||||||||||
Goodwill | Goodwill — Goodwill represents the excess of cost over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company has no other intangible assets with indefinite useful lives. Goodwill is not subject to amortization, but is monitored annually for impairment or more frequently if there are indicators of impairment. Management considers the following potential indicators of impairment: significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of acquired assets or the strategy of the Company’s overall business, significant negative industry or economic trends and a significant decline in the Company’s stock price for a sustained period. The Company performs its annual impairment test on November 30. Currently, the Company’s goodwill is evaluated at the entity level as it is determined there is only one reporting unit. The Company performs a two step impairment test. In the first step, the fair value of each reporting unit is compared to its carrying amount. If the fair value exceeds the carrying value of the net assets assigned, goodwill is not considered impaired and the second step is not required. If the carrying value exceeds the fair value, then the second step of the impairment test is performed in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of the goodwill exceeds the fair value, then an impairment charge is recorded. On November 30, 2014, the estimated fair value of the Company’s single reporting unit exceeded its carrying amount. Because the fair value of the Company’s single reporting unit was in excess of its carrying value and there were no indicators that the Company’s goodwill had become impaired since that date, there was no impairment as of November 30, 2014 through December 31, 2014. | ||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company did not recognize an impairment charge. | |||||||||||||||||
Advertising Expense | Advertising Expense — The Company expenses advertising as incurred, which is included in sales and marketing expense in the accompanying consolidated statements of operations. The Company incurred $3.3 million of advertising expense in 2014, $3.5 million in 2013, and $3.0 million in 2012. | ||||||||||||||||
Revenue Recognition | Revenue Recognition —The Company primarily generates revenue from multi-element arrangements, which typically include subscriptions to its online software solution and professional services which includes on-boarding and training services. The Company’s customers do not have the right to take possession of the online software solution. The Company recognizes revenue when all of the following have occurred: | ||||||||||||||||
• | persuasive evidence of an arrangement with the customer exists; | ||||||||||||||||
• | service has been or is being provided; | ||||||||||||||||
• | the fees are fixed or determinable; and | ||||||||||||||||
• | collectability of the fees is reasonably assured. | ||||||||||||||||
The Company’s arrangements do not contain general rights of return. | |||||||||||||||||
In order to treat elements in a multiple-element arrangement as separate units of accounting, the delivered elements must have standalone value and delivery of the undelivered element is probable and within control of the Company. | |||||||||||||||||
The Company has determined that subscriptions for its online software solution have standalone value because, once a customer launches its initial site, the online software solution is fully functional and does not require any additional development, modification, or customization. | |||||||||||||||||
Professional services consists primarily of on-boarding and web-based and in-person training, are not required to use the online software solution, and are determined to have stand-alone value from the related subscription services because they are sold separately by the Company and third parties. | |||||||||||||||||
When multiple element arrangements are separated into different units of accounting, the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The estimated fair value of each element is determined based upon the following hierarchy: (1) vendor specific objective evidence (“VSOE”) of fair value, (2) third party evidence of selling price (“TPE”), or (3) the Company’s best estimate of selling price (“BESP”). The Company is not able to establish VSOE of fair value for undelivered elements, which in most instances is subscription and training and professional services, based on its pricing practices, and there is not a reliable measure of TPE of selling price. As such, arrangement consideration is allocated amongst multiple deliverable arrangements using BESP. The Company establishes BESP for each deliverable primarily considering the median of actual sales prices of each type of subscription and other professional services sold. The Company considers each type of subscription and service as well as pricing and geographic information when establishing BESP. Arrangement consideration is allocated such that the revenue recognized does not exceed the fee subject to refund. | |||||||||||||||||
Revenue from subscriptions is recognized ratably over the subscription period beginning on the date the Company’s subscription is made available to customers. Substantially all subscription contracts are one year or less. The Company recognizes revenue from on-boarding and training services as the services are provided. | |||||||||||||||||
The Company pays its marketing agency partners a commission of the subscription sales price for sales to customers. The classification of the commission paid on the Company’s consolidated statements of operations depends on who is purchasing its subscription. In instances where the customer is purchasing the subscription, the Company is the primary obligor and records the commission paid to the agency partner as sales and marketing expense. When the agency partner purchases the subscription directly from the Company, the Company nets the consideration paid to the partner against the associated revenue it recognizes, as in these instances the Company’s customer is the partner and the Company’s remaining obligations are to the partner. The Company does not believe that it receives a tangible benefit from the payment back to the partner. | |||||||||||||||||
Sales taxes collected from customers and remitted to government authorities are excluded from revenue. | |||||||||||||||||
Amounts that have been invoiced are recorded in accounts receivable and deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Deferred revenue represents amounts billed for which revenue has not yet been recognized. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as long-term deferred revenue. | |||||||||||||||||
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers —Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, restricted cash and accounts receivable. | ||||||||||||||||
A significant portion of the Company’s cash is held at one financial institution that management believes to be of high credit quality. Although the Company deposits it cash with multiple financial institutions, its deposits exceed federally insured limits. | |||||||||||||||||
The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts, or other hedging arrangements. | |||||||||||||||||
The Company generally does not require collateral from its customers and generally requires payment 30 days from the invoice date. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. Credit risk arising from accounts receivable is mitigated as a result of transacting with a large number of geographically dispersed customers spread across various industries. | |||||||||||||||||
At December 31, 2014 and 2013 there were no customers that represented more than 10% of the net accounts receivable balance. There were no customers that individually exceeded 10% of the Company’s revenue in any of the periods presented. | |||||||||||||||||
Foreign Currency | Foreign Currency — The functional currency of the Company’s foreign subsidiaries is the local currency. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rates in effect at the balance sheet dates; with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive income (loss). Income and expense accounts are translated at the weighted-average exchange rates during the period. Equity transactions are translated at historical exchange rates. Foreign currency transaction gains and losses are recorded in other income (expense). | ||||||||||||||||
Research and Development | Research and Development — Research and development expenses include payroll, employee benefits and other expenses associated with product development. | ||||||||||||||||
Capitalized Software Development Costs | Capitalized Software Development Costs — Certain payroll and stock compensation costs incurred to develop functionality for the Company’s software platform, as well as certain upgrades and enhancements that are expected to result in increased functionality are capitalized. The costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, certain internal costs are capitalized until the software is substantially complete and ready for its intended use. Capitalized software development costs are amortized on a straight-line basis over their estimated useful life of two years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. | ||||||||||||||||
Capitalized software development costs consisted of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Gross capitalized software development costs | $ | 14,219 | $ | 9,351 | |||||||||||||
Accumulated amortization | (9,786 | ) | (5,872 | ) | |||||||||||||
Capitalized software development costs, net | $ | 4,433 | $ | 3,479 | |||||||||||||
The Company capitalized software development costs of $4.9 million in 2014, $3.7 million in 2013, and $2.4 million in 2012. Stock-based compensation costs included in capitalized software were $235 thousand in 2014, $273 thousand in 2013, and $100 thousand in 2012. | |||||||||||||||||
Amortization of capitalized software development costs was $3.9 million in 2014, $2.6 million in 2013, and $1.5 million in 2012. Amortization expense is included in cost of revenue in the consolidated statements of operations. | |||||||||||||||||
Income Taxes | Income Taxes — Deferred tax assets and liabilities are recognized for the differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities using tax rates expected to be in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. | ||||||||||||||||
The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. Potential interest and penalties associated with such uncertain tax positions are recorded as a component of income tax expense. | |||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation —The Company accounts for all stock options and awards granted to employees and nonemployees using a fair value method. Stock-based compensation is recognized as an expense and is measured at the fair value of the award. The measurement date for employee awards is generally the date of the grant. The measurement date for nonemployee awards is generally the date the options vest. Stock-based compensation costs are recognized as expense over the requisite service period, which is generally the vesting period for awards, on a straight-line basis for awards with only a service condition, and using the graded-method for awards with both a performance and service that were granted prior to our IPO, and on a straight-line basis for the awards that were granted following our IPO. | ||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements—In May 2014, the Financial Accounting Standards Board issued updated guidance and disclosure requirements for recognizing revenue. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for the Company on January 1, 2017 and may be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is evaluating the potential impact of adopting this new accounting guidance. | ||||||||||||||||
In June 2014, the Financial Accounting Standards Board issued a standards update on accounting for share-based payments when the terms of the award provide that a performance target could be achieved after a requisite service period. The standard is effective beginning January 1, 2016, with early adoption permitted. We do not expect it to have a material impact on our consolidated financial position, results of operations or cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Summary of Reconciliation of Denominator Used in Calculation of Basic and Diluted Loss Per Share | A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands, except per share | |||||||||||||||||
amounts) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net loss attributable to common stockholders | $ | (48,560 | ) | $ | (34,328 | ) | $ | (18,859 | ) | ||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding—basic | 11,562 | 5,113 | 4,699 | ||||||||||||||
Dilutive effect of share equivalents resulting from stock options, RSUs, nonvested restricted stock, common stock warrant and redeemable convertible preferred shares (as converted) | — | — | — | ||||||||||||||
Weighted-average common shares outstanding-diluted | 11,562 | 5,113 | 4,699 | ||||||||||||||
Net loss per common share, basic and diluted | $ | (4.20 | ) | $ | (6.71 | ) | $ | (4.01 | ) | ||||||||
Schedule of Share Totals with Potentially Dilutive Impact | The following table contains share totals with a potentially dilutive impact (in thousands): | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Options to purchase common shares | 4,588 | 4,695 | 4,180 | ||||||||||||||
Common stock warrant | 13 | 13 | 13 | ||||||||||||||
Common stock subject to repurchase | — | — | 67 | ||||||||||||||
Convertible preferred shares (as converted) | — | 19,530 | 19,530 | ||||||||||||||
RSUs | 1,376 | 858 | — | ||||||||||||||
Schedule of Rollforward of Company's Allowance for Doubtful Accounts | The following is a rollforward of the Company’s allowance for doubtful accounts (in thousands): | ||||||||||||||||
Balance | Charged to | Deductions (1) | Balance | ||||||||||||||
Beginning | Costs or | at | |||||||||||||||
of Period | Expenses | End of | |||||||||||||||
Period | |||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||
Year ended December 31, 2014 | $ | 175 | $ | 632 | $ | (589 | ) | $ | 218 | ||||||||
Year ended December 31, 2013 | $ | 122 | $ | 523 | $ | (470 | ) | $ | 175 | ||||||||
Year ended December 31, 2012 | $ | 61 | $ | 384 | $ | (323 | ) | $ | 122 | ||||||||
-1 | Deductions include actual accounts written-off, net of recoveries. | ||||||||||||||||
Schedule of Property Plant and Equipment Useful Life | leasehold improvements. Depreciation is recorded over the following estimated useful lives: | ||||||||||||||||
Estimated Useful Life | |||||||||||||||||
Computer equipment and purchased software | 3 years | ||||||||||||||||
Office equipment | 5 years | ||||||||||||||||
Furniture and fixtures | 5 years | ||||||||||||||||
Leasehold improvements | Lesser of lease term or useful life | ||||||||||||||||
Summary of Capitalized Software Development Costs | Capitalized software development costs consisted of the following: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Gross capitalized software development costs | $ | 14,219 | $ | 9,351 | |||||||||||||
Accumulated amortization | (9,786 | ) | (5,872 | ) | |||||||||||||
Capitalized software development costs, net | $ | 4,433 | $ | 3,479 | |||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Schedule of Fair Value of Financial Assets | The fair value of these financial assets was determined using the following inputs for the year end December 31, 2014. The Company did not have any cash equivalents at December 31, 2013. | ||||||||||||
December 31, 2014 | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
(in thousands) | |||||||||||||
Money market funds | $ | 100,000 | $ | — | $ | — | |||||||
Total | $ | 100,000 | $ | — | $ | — | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of Property and Equipment | Property and equipment as of December 31, 2014 and 2013 consists of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Computer equipment and purchased software | $ | 904 | $ | 1,504 | |||||
Furniture and fixtures | 3,010 | 2,106 | |||||||
Office equipment | 1,118 | 990 | |||||||
Leasehold improvements | 10,153 | 5,845 | |||||||
Capital leases and equipment under capital lease | 562 | 562 | |||||||
15,747 | 11,007 | ||||||||
Less accumulated depreciation and amortization | (4,366 | ) | (3,764 | ) | |||||
Total | $ | 11,381 | $ | 7,243 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Intangible Assets | Intangible assets as of December 31, 2014 and 2013 consist of the following: | ||||||||||||
Average Remaining | December 31, | ||||||||||||
Useful Life | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Acquired technology | 14 Months | $ | 745 | $ | 745 | ||||||||
Acquired intellectual property | 27 Months | 80 | — | ||||||||||
Accumulated amortization | (736 | ) | (598 | ) | |||||||||
Total | $ | 89 | $ | 147 | |||||||||
Estimated Future Amortization Expense for Intangible Assets | Estimated future amortization expense for intangible assets as of December 31, 2014 is as follows: | ||||||||||||
Years ended December 31, | Amortization | ||||||||||||
Expense | |||||||||||||
(in thousands) | |||||||||||||
2015 | $ | 52 | |||||||||||
2016 | 31 | ||||||||||||
2017 | 6 | ||||||||||||
Total | $ | 89 | |||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Debt Disclosure [Abstract] | |||||
Schedule of Fair Value Measurements Recurring and Nonrecurring Valuation Techniques | The fair value of the warrant was estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions: | ||||
Risk-free interest rate | 2.25 | % | |||
Expected term (in years) | 10 | ||||
Volatility | 55 | % | |||
Expected dividends | — | % |
Geographic_Data_Tables
Geographic Data (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Revenues by Geographical Region | Revenues by geographical region (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 103,356 | $ | 74,437 | $ | 51,604 | |||||||
Ireland | 12,270 | 3,197 | — | ||||||||||
Australia | 250 | — | — | ||||||||||
Total | $ | 115,876 | $ | 77,634 | $ | 51,604 | |||||||
Percentage of revenues generated outside of the United States | 11 | % | 4 | % | — | ||||||||
Long Lived Assets by Geographical Region | Total long lived assets by geographical region (in thousands): | ||||||||||||
As of | As of | ||||||||||||
December 31, | December 31 | ||||||||||||
2014 | 2013 | ||||||||||||
United States | $ | 10,711 | $ | 6,775 | |||||||||
Ireland | 670 | 468 | |||||||||||
Australia | — | — | |||||||||||
Total Long Lived Assets | $ | 11,381 | $ | 7,243 | |||||||||
Percentage of long lived assets held outside of the United States | 6 | % | 6 | % | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Schedule of Future Minimum Payments | Future minimum payments under all operating and capital lease agreements as of December 31, 2014, are as follows: | ||||||||
Operating | Capital | ||||||||
(in thousands) | |||||||||
2015 | $ | 5,350 | 107 | ||||||
2016 | 5,893 | 80 | |||||||
2017 | 6,337 | — | |||||||
2018 | 6,099 | — | |||||||
2019 | 6,225 | — | |||||||
Thereafter | 5,707 | — | |||||||
Total | $ | 35,611 | 187 | ||||||
Less: Portion representing interest | 9 | ||||||||
Capital Lease Obligation | $ | 178 | |||||||
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Equity [Abstract] | |||||
Changes in Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders’ equity (deficit), for the years ended December 31, 2014 and 2013: | ||||
Foreign | |||||
Currency Items | |||||
(in thousands) | |||||
Beginning balance at January 1, 2013 | $ | (10 | ) | ||
Other comprehensive income before reclassifications | (69 | ) | |||
Amounts reclassified from accumulated other comprehensive income | — | ||||
Ending balance at December 31, 2013 | $ | (79 | ) | ||
Other comprehensive income before reclassifications | (66 | ) | |||
Amounts reclassified from accumulated other comprehensive income | — | ||||
Ending balance at December 31, 2014 | $ | (145 | ) | ||
Redeemable_Convertible_Preferr1
Redeemable Convertible Preferred Stock (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Text Block [Abstract] | |||||
Schedule of Value of Each Class of Preferred Stock, Liquidation and Redemption Value | The following table contains the value of each class of Preferred Stock as of December 31, 2013, as well as the liquidation and redemption value at December 31, 2013: | ||||
December 31 2013 | |||||
(in thousands) | |||||
Series A designated, issued, and outstanding, 13,687 shares at December 31, 2013 (liquidation and redemption value of $5,625 at December 31, 2013) | $ | 5,528 | |||
Series B designated, issued, and outstanding, 14,313 shares at December 31, 2013 (liquidation and redemption value of $12,000 at December 31, 2013) | 11,979 | ||||
Series C designated, issued, and outstanding, 12,950 shares at December 31, 2013 (liquidation and redemption value of $16,458 at December 31, 2013) | 16,419 | ||||
Series D designated, issued, and outstanding, 7,634 shares at December 31, 2013 (liquidation and redemption value of $21,500 at December 31, 2013) | 22,388 | ||||
Series D-1 designated, issued, and outstanding, 3,737 shares at December 31, 2013 (liquidation and redemption value of $6,625 at December 31, 2013) | 9,866 | ||||
Series E designated, issued, and outstanding, 6,267 shares at December 31, 2013 (liquidation and redemption value of $35,199 at December 31, 2013) | 35,113 | ||||
Total | $ | 101,293 | |||
Stockholders_Equity_Deficit_an1
Stockholders' Equity (Deficit) and Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Number of Shares of Common Stock Reserved for Potential Conversion | The number of shares of common stock reserved for the potential conversion of preferred stock, vesting of RSUs and exercise of a warrant and common stock options are as follows (in thousands): | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Conversion of Series A | — | 4,562 | |||||||||||||||
Conversion of Series B | — | 4,771 | |||||||||||||||
Conversion of Series C | — | 4,317 | |||||||||||||||
Conversion of Series D | — | 2,545 | |||||||||||||||
Conversion of Series D-1 | — | 1,246 | |||||||||||||||
Conversion of Series E | — | 2,089 | |||||||||||||||
Common stock warrant | 13 | 13 | |||||||||||||||
Restricted stock units | 1,376 | 858 | |||||||||||||||
Common stock options | 4,588 | 4,695 | |||||||||||||||
5,977 | 25,096 | ||||||||||||||||
Stock Compensation Expense by Award is Recorded in the Company's Consolidated Statements of Operations | The following two tables show stock compensation expense by award type and where the stock compensation expense is recorded in the Company’s consolidated statements of operations (in thousands): | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Options | $ | 5,128 | $ | 3,080 | $ | 2,002 | |||||||||||
Vesting of RSAs | — | 384 | 513 | ||||||||||||||
RSUs | 11,230 | — | — | ||||||||||||||
Total stock-based compensation | $ | 16,358 | $ | 3,464 | $ | 2,515 | |||||||||||
Effect of Stock-Based Compensation on Income by Line Item | The following two tables show stock compensation expense by award type and where the stock compensation expense is recorded in the Company’s consolidated statements of operations in thousands: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Cost of revenue, subscription | $ | 128 | $ | 50 | $ | 27 | |||||||||||
Cost of revenue, service | 498 | 211 | 100 | ||||||||||||||
Research and development | 6,190 | 691 | 739 | ||||||||||||||
Sales and marketing | 5,596 | 1,194 | 691 | ||||||||||||||
General and administrative | 3,946 | 1,318 | 958 | ||||||||||||||
Total stock-based compensation | $ | 16,358 | $ | 3,464 | $ | 2,515 | |||||||||||
Schedule of Assumptions Used for Estimation of Fair Value of Options Granted to Employees | Stock Options—The fair value of employee options is estimated on the date of each grant using the Black-Scholes option-pricing model with the following assumptions: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Risk-free interest rate | 1.79% - 2.67% | 0.82% - 1.86% | 0.56% - 1.23% | ||||||||||||||
Expected term (in years) | 5.0 - 6.5 | 4.6 - 6.5 | 3.5 - 6.5 | ||||||||||||||
Volatility | 44.8% - 50.9% | 46.8% - 54.7% | 48% - 51% | ||||||||||||||
Expected dividends | — | — | — | ||||||||||||||
Summary of Stock Option Activity | The stock option activity for the year ended December 31, 2014 is as follows: | ||||||||||||||||
Options (in | Weighted- | Weighted- | Aggregate | ||||||||||||||
thousands) | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Life (in years) | (in thousands) | |||||||||||||||
Outstanding—December 31, 2013 | 4,695 | $ | 6.66 | 8 | $ | 37,651 | |||||||||||
Granted | 1,067 | 19.39 | |||||||||||||||
Exercised | (850 | ) | 4.46 | ||||||||||||||
Forfeited/expired | (324 | ) | 12.1 | ||||||||||||||
Outstanding—December 31, 2014 | 4,588 | 9.64 | 7.6 | $ | 110,396 | ||||||||||||
Options vested or expected to vest— December 31, 2014 | 4,296 | $ | 9.14 | 7.5 | $ | 105,418 | |||||||||||
Options exercisable— December 31, 2014 | 2,438 | $ | 5.9 | 6.8 | $ | 67,557 | |||||||||||
Summary of Activity Related to RSUs | The following table summarizes the activity related to RSUs for the year ended December 31, 2014: | ||||||||||||||||
RSUs Outstanding | |||||||||||||||||
Shares (in | Weighted-Average Grant | ||||||||||||||||
thousands) | Date Fair Value Per Share | ||||||||||||||||
Unvested and outstanding at December 31, 2013 | 858 | $ | 13.29 | ||||||||||||||
Granted | 784 | $ | 20.55 | ||||||||||||||
Vested | — | $ | — | ||||||||||||||
Canceled | (266 | ) | $ | 13.42 | |||||||||||||
Unvested and outstanding at December 31, 2014 | 1,376 | $ | 17.4 | ||||||||||||||
Restricted Stock Award [Member] | |||||||||||||||||
Summary of Activity for RSAs | The activity for the RSAs for the year ended December 31, 2013, is as follows: | ||||||||||||||||
Restricted Shares | Weighted- | ||||||||||||||||
(in thousands) | Average | ||||||||||||||||
Grant- | |||||||||||||||||
Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding—January 1, 2013 | 67 | $ | 5.7 | ||||||||||||||
Lapse in Company buyback right | (67 | ) | $ | 5.7 | |||||||||||||
Outstanding—December 31, 2013 | — | ||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Loss Before Provision for Income Taxes | Loss before provision for income taxes was as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
United States | $ | (49,634 | ) | $ | (34,393 | ) | $ | (18,358 | ) | ||||
Foreign | 1,313 | 119 | (420 | ) | |||||||||
Total | $ | (48,321 | ) | $ | (34,274 | ) | $ | (18,778 | ) | ||||
Schedule of Differences Between Income Taxes Computed at the Federal Statutory Rate and the Provision for Income Taxes | The following reconciles the differences between income taxes computed at the federal statutory rate of 35% and the provision for income taxes: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Expected income tax benefit at the federal statutory rate | $ | 16,913 | $ | 11,997 | $ | 6,572 | |||||||
State tax net of federal benefit | 1,709 | 1,197 | 653 | ||||||||||
Stock-based compensation | (886 | ) | (830 | ) | (462 | ) | |||||||
Difference in foreign tax rates | 289 | 27 | (95 | ) | |||||||||
Research and development credits | 1,331 | 444 | 140 | ||||||||||
Valuation allowance for deferred tax assets | (16,839 | ) | (12,367 | ) | (6,959 | ) | |||||||
Expired state net operating losses | (1,880 | ) | — | — | |||||||||
Other | (545 | ) | (468 | ) | 151 | ||||||||
Income tax benefit | $ | 92 | $ | — | $ | — | |||||||
Components of the Company's Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities were as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 46,615 | $ | 35,077 | $ | 23,810 | |||||||
Research and investment credits | 2,334 | 986 | 541 | ||||||||||
Accruals and reserves | 3,423 | 2,430 | 2,025 | ||||||||||
Depreciation | 372 | 172 | 202 | ||||||||||
Stock-based compensation | 5,409 | 395 | 124 | ||||||||||
Total deferred tax assets | $ | 58,153 | $ | 39,060 | $ | 26,702 | |||||||
Deferred tax liabilities: | |||||||||||||
Intangible and prepaid assets | (2,367 | ) | (57 | ) | (123 | ) | |||||||
Capitalized costs | (441 | ) | (620 | ) | (563 | ) | |||||||
Total deferred tax liabilities | (2,808 | ) | (677 | ) | (686 | ) | |||||||
Valuation allowance | (55,221 | ) | (38,383 | ) | (26,016 | ) | |||||||
Net deferred tax assets | $ | 124 | $ | — | $ | — | |||||||
Summary of Activity Related to Unrecognized Tax Benefits | The following summarizes activity related to unrecognized tax benefits: | ||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Unrecognized benefit—beginning of the year | $ | 1,030 | $ | 667 | $ | 552 | |||||||
Gross increases—current period positions | 683 | 363 | 115 | ||||||||||
Unrecognized benefit—end of period | $ | 1,713 | $ | 1,030 | $ | 667 | |||||||
Quarterly_Financial_Results_un1
Quarterly Financial Results (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Results | |||||||||||||||||
Fourth | Third | Second | First | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||
Revenue | $ | 34,157 | $ | 30,448 | $ | 27,098 | $ | 24,174 | |||||||||
Cost of revenue | 10,522 | 9,705 | 8,739 | 8,114 | |||||||||||||
Gross profit | 23,635 | 20,743 | 18,359 | 16,060 | |||||||||||||
Net loss | (19,697 | ) | (10,793 | ) | (8,279 | ) | (9,465 | ) | |||||||||
Net loss attributable to common stockholders | (19,988 | ) | (10,806 | ) | (8,292 | ) | (9,478 | ) | |||||||||
Basic and diluted net loss attributable to common stockholders per share | $ | (0.69 | ) | $ | (1.84 | ) | $ | (1.44 | ) | $ | (1.73 | ) | |||||
Year ended December 31, 2013 | |||||||||||||||||
Revenue | $ | 22,379 | $ | 20,179 | $ | 18,336 | $ | 16,740 | |||||||||
Cost of revenue | 7,870 | 7,382 | 7,347 | 6,440 | |||||||||||||
Gross profit | 14,509 | 12,797 | 10,989 | 10,300 | |||||||||||||
Net loss | (8,425 | ) | (9,511 | ) | (8,803 | ) | (7,536 | ) | |||||||||
Net loss attributable to common stockholders | (8,438 | ) | (9,524 | ) | (8,816 | ) | (7,549 | ) | |||||||||
Basic and diluted net loss attributable to common stockholders per share | $ | (1.63 | ) | $ | (1.85 | ) | $ | (1.73 | ) | $ | (1.50 | ) | |||||
Organization_and_Operations_Ad
Organization and Operations - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
Oct. 15, 2014 | Sep. 25, 2014 | Dec. 31, 2014 | |
Summary Of Organization And Operations [Line Items] | |||
Stock split ratio | 0.33 | ||
Aggregate proceeds from IPO | $133,700,000 | $130,764,000 | |
Number of preferred stock converted to common stock | 19,529,713 | ||
Stock-based compensation expense | 0 | ||
IPO [Member] | |||
Summary Of Organization And Operations [Line Items] | |||
Number of shares issued to public | 5,750,000 | ||
Issued price per share of common stock | $25 | ||
Share offering expenses | $3,100,000 | ||
Over-Allotment Option [Member] | |||
Summary Of Organization And Operations [Line Items] | |||
Number of shares issued to public | 750,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Nov. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reporting_Unit | ||||
Segment | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Number of operating segment | 1 | |||
Cash and cash equivalents, maturity description | Three months or less at the date of purchase, consisting of money-market funds. | |||
Restricted cash | $230,000 | $1,900,000 | ||
Amount released from restrictions | 1,700,000 | |||
Impairment charges of long lived assets | 0 | |||
Intangible assets with indefinite useful lives | 0 | |||
Number of reporting unit | 1 | |||
Goodwill impairment | 0 | 0 | 0 | 0 |
Advertising expense | 3,300,000 | 3,500,000 | 3,000,000 | |
Revenue subscription contract period | One year or less | |||
Off-balance sheet risk amount | 0 | |||
Accounts receivable payment period | 30 days | |||
Capitalized software development costs | 4,433,000 | 3,479,000 | 2,400,000 | |
Stock-based compensation in capitalized software development costs | 235,000 | 273,000 | 100,000 | |
Amortization of software development costs | 3,900,000 | 2,600,000 | 1,500,000 | |
Software Development Costs [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Property and Equipment, Estimated Useful Life | 2 years | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 10.00% | 10.00% | ||
Revenue [Member] | Customer Concentration Risk [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 10.00% | 10.00% | ||
Letter of Credit [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Restricted cash | 1,800,000 | |||
Amount released from restrictions | 1,500,000 | |||
Corporate Credit Card [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Restricted cash | 157,000 | |||
Amount released from restrictions | $157,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Summary of Reconciliation of Denominator Used in Calculation of Basic and Diluted Loss Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||||||||||
Net loss attributable to common stockholders | ($19,988) | ($10,806) | ($8,292) | ($9,478) | ($8,438) | ($9,524) | ($8,816) | ($7,549) | ($48,560) | ($34,328) | ($18,859) |
Denominator: | |||||||||||
Weighted-average common shares outstanding - basic | 11,562 | 5,113 | 4,699 | ||||||||
Dilutive effect of share equivalents resulting from stock options, RSUs, nonvested restricted stock, common stock warrant and redeemable convertible preferred shares (as converted) | 0 | 0 | 0 | ||||||||
Weighted-average common shares outstanding - diluted | 11,562 | 5,113 | 4,699 | ||||||||
Net loss per common share, basic and diluted | ($0.69) | ($1.84) | ($1.44) | ($1.73) | ($1.63) | ($1.85) | ($1.73) | ($1.50) | ($4.20) | ($6.71) | ($4.01) |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Schedule of Potentially Dilutive Common Stock Equivalents (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Options to Purchase Common Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 4,588 | 4,695 | 4,180 |
Common Stock Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 13 | 13 | 13 |
Common Stock Subject To Repurchase [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 67 | ||
Convertible Preferred Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 19,530 | 19,530 | |
RSUs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 1,376 | 858 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Schedule of Rollforward of Company's Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | |||
Allowance for doubtful accounts, Beginning Balance | $175 | $122 | $61 |
Allowance for doubtful accounts, Charged to Costs or Expenses | 632 | 523 | 384 |
Allowance for doubtful accounts, Deductions | -589 | -470 | -323 |
Allowance for doubtful accounts, Ending Balance | $218 | $175 | $122 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Schedule of Property Plant and Equipment Useful Life (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Computer Equipment and Purchased Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 3 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life, Description | Lesser of lease term or useful life |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Summary of Capitalized Software Development Costs (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Capitalized Computer Software, Net [Abstract] | |||
Gross capitalized software development costs | $14,219 | $9,351 | |
Accumulated amortization | -9,786 | -5,872 | |
Capitalized software development costs, net | $4,433 | $3,479 | $2,400 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | |
Cash equivalents, fair value | $0 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Assets (Detail) (Fair Value, Inputs, Level 1 [Member], Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |
Fair value of financial assets | $100,000 |
Money Market Funds [Member] | |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | |
Fair value of financial assets | $100,000 |
Property_and_Equipment_Net_Sch
Property and Equipment, Net - Schedule of Property and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $15,747 | $11,007 |
Less accumulated depreciation and amortization | -4,366 | -3,764 |
Property and equipment, net | 11,381 | 7,243 |
Computer Equipment and Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 904 | 1,504 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,010 | 2,106 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,118 | 990 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 10,153 | 5,845 |
Capital Leases and Equipment under Capital Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $562 | $562 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | $339 | $272 | $153 |
Property and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $1,700 | $1,500 | $988 |
Intangible_Assets_Schedule_of_
Intangible Assets - Schedule of Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | ($736) | ($598) |
Acquired intangible assets | 89 | 147 |
Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | 745 | 745 |
Acquired intangible assets, Average remaining useful life | 14 months | |
Acquired Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | $80 | |
Acquired intangible assets, Average remaining useful life | 27 months |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $138 | $359 | $224 |
Acquired Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years | ||
Acquired Intellectual Property [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life | 3 years |
Intangible_Assets_Estimated_Fu
Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $52 |
2016 | 31 |
2017 | 6 |
Total | $89 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||
Apr. 30, 2012 | Dec. 31, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Jun. 01, 2010 | Sep. 30, 2013 | |
Credit Facilities [Line Items] | ||||||
Credit facility, borrowing capacity | $35,000,000 | |||||
Minimum cash account balance under revolving credit facility | 1,000,000 | |||||
Purchase of common stock | 13,158 | |||||
Class of warrant or right, exercise price of warrants or rights | $5.70 | |||||
Debt instrument, expiration date | 2022-04 | |||||
Interest expense charged against fair value of warrant | 50,000 | |||||
Credit facility payments | 18,000,000 | |||||
Third Amendment [Member] | ||||||
Credit Facilities [Line Items] | ||||||
Credit borrowings repayable term | 30 months | |||||
Equipment Line Member | ||||||
Credit Facilities [Line Items] | ||||||
Credit facility, borrowing capacity | 500,000 | |||||
Credit borrowings repayable term | 24 months | |||||
Credit facility, frequency of payment and payment terms | Borrowings under the Line were due in 24B equal monthly payments of principal, plus accrued interest, at an annual rate of 3.25% beginning JulyB 1, 2011 through JuneB 1, 2013 | |||||
Credit facility interest rate | 3.25% | |||||
Credit facility, maturity date | 1-Jun-13 | |||||
Growth Capital Line [Member] | ||||||
Credit Facilities [Line Items] | ||||||
Credit facility, borrowing capacity | 5,000,000 | 5,000,000 | ||||
Credit facility interest rate | 1.00% | |||||
Credit facility, interest rate description | Bankbs prime rate plus one percent | |||||
Revolving Line [Member] | ||||||
Credit Facilities [Line Items] | ||||||
Credit facility, borrowing capacity | 5,000,000 | 30,000,000 | 20,000,000 | |||
Credit facility interest rate | 0.50% | |||||
Credit facility, maturity date | 31-Dec-14 | |||||
Credit facility, interest rate description | Bank's prime rate plus 0.5% | |||||
Rate of interest on unused facility | 0.25% | |||||
Revolving credit facility, drew down for the period | 18,000,000 | |||||
Credit facility payments | 18,000,000 | |||||
Revolving credit facility, outstanding balance | 0 | |||||
Revolving Line [Member] | Third Amendment [Member] | ||||||
Credit Facilities [Line Items] | ||||||
Credit facility, borrowing capacity | $30,000,000 |
Debt_Schedule_of_Fair_Value_Me
Debt - Schedule of Fair Value Measurements Recurring and Nonrecurring Valuation Techniques (Detail) | 1 Months Ended |
Apr. 30, 2012 | |
Debt Disclosure [Abstract] | |
Risk-free interest rate | 2.25% |
Expected term (in years) | 10 years |
Volatility | 55.00% |
Expected dividends | 0.00% |
Geographic_Data_Additional_Inf
Geographic Data - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Geographic_Data_Revenues_by_Ge
Geographic Data - Revenues by Geographical Region (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | $34,157 | $30,448 | $27,098 | $24,174 | $22,379 | $20,179 | $18,336 | $16,740 | $115,876 | $77,634 | $51,604 |
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 103,356 | 74,437 | 51,604 | ||||||||
Ireland [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 12,270 | 3,197 | |||||||||
Australia [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | $250 | ||||||||||
Revenue [Member] | Foreign [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of revenues generated outside of the United States | 11.00% | 4.00% |
Geographic_Data_Long_Lived_Ass
Geographic Data - Long Lived Assets by Geographical Region (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Total Long Lived Assets | $11,381 | $7,243 |
Percentage of long lived assets held outside of the United States | 6.00% | 6.00% |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Long Lived Assets | 10,711 | 6,775 |
Ireland [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Long Lived Assets | $670 | $468 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Improvement reimbursements from landlords | $3,300,000 | |||
Rent expense | 4,900,000 | 3,100,000 | 1,300,000 | |
Deferred Rent | 4,153,000 | 2,523,000 | ||
Sublease income | 11,000 | 135,000 | 130,000 | |
Outstanding balance under capital leases | 178,000 | 299,000 | ||
Lease payment | 2016-09 | |||
Purchase of equipment under capital lease | $299,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Capital Leases, 2015 | $107 | |
Capital Leases, 2016 | 80 | |
Capital Leases, 2017 | 0 | |
Capital Leases, 2018 | 0 | |
Capital Leases, 2019 | 0 | |
Capital Leases, Thereafter | 0 | |
Capital Leases, Total | 187 | |
Less: Portion representing interest | 9 | |
Capital Lease Obligation | 178 | 299 |
Operating, 2015 | 5,350 | |
Operating, 2016 | 5,893 | |
Operating, 2017 | 6,337 | |
Operating, 2018 | 6,099 | |
Operating, 2019 | 6,225 | |
Operating, Thereafter | 5,707 | |
Operating, Total | $35,611 |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Ending balance at December 31, 2013 | ($145) | ($79) |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance at January 1, 2013 | -79 | -10 |
Other comprehensive income before reclassifications | -66 | -69 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Ending balance at December 31, 2013 | ($145) | ($79) |
Reverse_Stock_Split_Additional
Reverse Stock Split - Additional Information (Detail) | 0 Months Ended | 12 Months Ended |
Sep. 25, 2014 | Dec. 31, 2014 | |
Equity [Abstract] | ||
Stock split ratio | 0.33 | |
Stockholders' equity note, stock split description | On SeptemberB 25, 2014, the Companybs Board of Directors approved a 1-for-3 reverse stock split of the Companybs common stock. The reverse stock split became effective on SeptemberB 25, 2014. Upon the effectiveness of the reverse stock split, (i)B every three shares of outstanding common stock was combined into one share of common stock, (ii)B the number of shares of common stock into which each outstanding warrant or option to purchase common stock is exercisable was proportionally decreased, (iii)B the exercise price of each outstanding warrant or option to purchase common stock was proportionately increased, and (iv)B the conversion ratio for each share of preferred stock outstanding was proportionately reduced. |
Redeemable_Convertible_Preferr2
Redeemable Convertible Preferred Stock - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Oct. 15, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | |||
Convertible preferred stock | 19,529,713 | ||
Convertible preferred stock outstanding | 0 | 58,589,000 | |
Preferred stock, redemption date | 3-Mar-20 | ||
Preferred stock, redemption terms | Prior to the IPO, upon written notice of 65% of the holders of Preferred Stock, the Preferred Stock was redeemable in three annual installments commencing 30 days after receipt by the Company at any time on or after March 3, 2020 | ||
Convertible Preferred Shares [Member] | |||
Class of Stock [Line Items] | |||
Dividends declared | 0 | ||
Series A Designated, Issued, and Outstanding [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, issuance price | 0.41 | ||
Preferred stock, liquidation preference per share | 0.41 | ||
Preferred stock, redemption price | 0.41 | ||
Series B Designated, Issued, and Outstanding [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, issuance price | 0.84 | ||
Preferred stock, liquidation preference per share | 0.84 | ||
Preferred stock, redemption price | 0.84 | ||
Series C Designated, Issued, and Outstanding [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, issuance price | 1.27 | ||
Preferred stock, liquidation preference per share | 1.27 | ||
Preferred stock, redemption price | 1.27 | ||
Series D Designated, Issued, and Outstanding [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, issuance price | 2.82 | ||
Preferred stock, liquidation preference per share | 2.82 | ||
Preferred stock, redemption price | 2.82 | ||
Series E Designated, Issued, and Outstanding [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, issuance price | 5.62 | ||
Preferred stock, liquidation preference per share | 5.62 | ||
Preferred stock, redemption price | 5.62 | ||
Series D-1 Designated, Issued, and Outstanding [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, liquidation preference per share | 1.77 | ||
Preferred stock, redemption price | 1.77 |
Redeemable_Convertible_Preferr3
Redeemable Convertible Preferred Stock - Schedule of Value of Each Class of Preferred Stock, Liquidation and Redemption Value (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Class of Stock [Line Items] | |
Preferred Stock value | $101,293 |
Series A Designated, Issued, and Outstanding [Member] | |
Class of Stock [Line Items] | |
Preferred Stock value | 5,528 |
Series B Designated, Issued, and Outstanding [Member] | |
Class of Stock [Line Items] | |
Preferred Stock value | 11,979 |
Series C Designated, Issued, and Outstanding [Member] | |
Class of Stock [Line Items] | |
Preferred Stock value | 16,419 |
Series D Designated, Issued, and Outstanding [Member] | |
Class of Stock [Line Items] | |
Preferred Stock value | 22,388 |
Series D-1 Designated, Issued, and Outstanding [Member] | |
Class of Stock [Line Items] | |
Preferred Stock value | 9,866 |
Series E Designated, Issued, and Outstanding [Member] | |
Class of Stock [Line Items] | |
Preferred Stock value | $35,113 |
Redeemable_Convertible_Preferr4
Redeemable Convertible Preferred Stock - Schedule of Value of Each Class of Preferred Stock, Liquidation and Redemption Value (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Series A Designated, Issued, and Outstanding [Member] | |
Class of Stock [Line Items] | |
Preferred Stock, shares designated | 13,687 |
Preferred Stock, shares issued | 13,687 |
Preferred Stock, shares outstanding | 13,687 |
Preferred Stock, redemption value | $5,625 |
Preferred Stock, liquidation value | 5,625 |
Series B Designated, Issued, and Outstanding [Member] | |
Class of Stock [Line Items] | |
Preferred Stock, shares designated | 14,313 |
Preferred Stock, shares issued | 14,313 |
Preferred Stock, shares outstanding | 14,313 |
Preferred Stock, redemption value | 12,000 |
Preferred Stock, liquidation value | 12,000 |
Series C Designated, Issued, and Outstanding [Member] | |
Class of Stock [Line Items] | |
Preferred Stock, shares designated | 12,950 |
Preferred Stock, shares issued | 12,950 |
Preferred Stock, shares outstanding | 12,950 |
Preferred Stock, redemption value | 16,458 |
Preferred Stock, liquidation value | 16,458 |
Series D Designated, Issued, and Outstanding [Member] | |
Class of Stock [Line Items] | |
Preferred Stock, shares designated | 7,634 |
Preferred Stock, shares issued | 7,634 |
Preferred Stock, shares outstanding | 7,634 |
Preferred Stock, redemption value | 21,500 |
Preferred Stock, liquidation value | 21,500 |
Series D-1 Designated, Issued, and Outstanding [Member] | |
Class of Stock [Line Items] | |
Preferred Stock, shares designated | 3,737 |
Preferred Stock, shares issued | 3,737 |
Preferred Stock, shares outstanding | 3,737 |
Preferred Stock, redemption value | 6,625 |
Preferred Stock, liquidation value | 6,625 |
Series E Designated, Issued, and Outstanding [Member] | |
Class of Stock [Line Items] | |
Preferred Stock, shares designated | 6,267 |
Preferred Stock, shares issued | 6,267 |
Preferred Stock, shares outstanding | 6,267 |
Preferred Stock, redemption value | 35,199 |
Preferred Stock, liquidation value | $35,199 |
Stockholders_Equity_Deficit_an2
Stockholders' Equity (Deficit) and Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2011 | Sep. 25, 2014 | Apr. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Common stock authorized | 500,000,000 | 100,000,000 | |||||
Number of Shares outstanding | 4,588,000 | 4,695,000 | |||||
Capitalized software development costs excluded from stock based compensation | $235,000 | $273,000 | $100,000 | ||||
Common stock shares issued | 31,431,000 | 5,301,000 | |||||
Common stock warrant exercisable price | $5.70 | ||||||
Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Restricted common stock shares issued | 67,000 | 89,000 | |||||
Common Stock Warrant [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Common stock shares issued | 13,000 | ||||||
Common stock warrant exercisable price | $5.70 | ||||||
Common stock warrant expiration date | 30-Apr-22 | ||||||
Restricted Stock Award [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Weighted-average grant date fair value of options granted | $5.70 | ||||||
Restricted common stock shares issued | 220,000 | ||||||
Compensation expense over the vesting period | 1,200,000 | ||||||
Stock reclassified amount | 2,000 | 2,000 | |||||
Shares vested during the period | 90,000 | 67,000 | |||||
Restricted Stock Award [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Repurchase of unvested shares of common stock price | $0.00 | ||||||
Restricted Stock Award [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Repurchase of unvested shares of common stock price | $0.86 | ||||||
Common Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Weighted-average grant date fair value of options granted | $9.72 | $6.84 | $3.09 | ||||
RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Shares vested during the period | 0 | ||||||
Percentage of service condition met | 25.00% | ||||||
The total stock-based compensation expense expected to be recorded | 10,500,000 | 0 | |||||
Weighted average period of RSU | 3 years 3 months 18 days | ||||||
Number of RSUs expected to vest | 905,000 | ||||||
Aggregate intrinsic value of RSUs expected to vest | 30,400,000 | ||||||
RSUs [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Period of service condition met | 1 year | ||||||
RSUs [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Period of service condition met | 4 years | ||||||
2007 Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Number of shares available for issuance | 0 | ||||||
2007 Equity Incentive Plan [Member] | Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Number of Shares outstanding | 4,400,000 | ||||||
2007 Equity Incentive Plan [Member] | RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Number of Shares outstanding | 1,300,000 | ||||||
2014 Stock Option and Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Percentage of common stock outstanding | 5.00% | ||||||
2014 Stock Option and Incentive Plan [Member] | Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Number of shares available for issuance | 1,973,551 | ||||||
Number of Shares outstanding | 140,000 | ||||||
2014 Stock Option and Incentive Plan [Member] | RSUs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Number of Shares outstanding | 35,000 | ||||||
2007 and 2014 Equity Incentive Plans [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||||
Unrecognized compensation costs | $10,400,000 | ||||||
Unrecognized compensation costs, weighted average period | 2 years 9 months 18 days |
Stockholders_Equity_Deficit_an3
Stockholders' Equity (Deficit) and Stock-Based Compensation - Summary of Number of Shares of Common Stock Reserved for Potential Conversion (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 5,977,000 | 25,096,000 |
Conversion of Series A [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 4,562,000 | |
Conversion of Series B [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 4,771,000 | |
Conversion of Series C [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 4,317,000 | |
Conversion of Series D [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 2,545,000 | |
Conversion of Series D-1 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 1,246,000 | |
Conversion of Series E [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 2,089,000 | |
Common Stock Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 13,000 | 13,000 |
Common Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 4,588,000 | 4,695,000 |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 1,376,000 | 858,000 |
Stockholders_Equity_Deficit_an4
Stockholders' Equity (Deficit) and Stock-Based Compensation - Stock Compensation Expense by Award is Recorded in the Company's Consolidated Statements of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $16,358 | $3,464 | $2,515 |
Common Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 5,128 | 3,080 | 2,002 |
Restricted Stock Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 384 | 513 | |
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $11,230 |
Stockholders_Equity_Deficit_an5
Stockholders' Equity (Deficit) and Stock-Based Compensation - Effect of Stock-Based Compensation on Income by Line Item (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation | $16,358 | $3,464 | $2,515 |
Cost of Revenue, Subscription [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation | 128 | 50 | 27 |
Cost of Revenue, Service [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation | 498 | 211 | 100 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation | 6,190 | 691 | 739 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation | 5,596 | 1,194 | 691 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation | $3,946 | $1,318 | $958 |
Stockholders_Equity_Deficit_an6
Stockholders' Equity (Deficit) and Stock-Based Compensation - Schedule of Assumptions Used for Estimation of Fair Value of Options Granted to Employees (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.79% | 0.82% | 0.56% |
Expected term (in years) | 5 years | 4 years 7 months 6 days | 3 years 6 months |
Volatility | 44.80% | 46.80% | 48.00% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.67% | 1.86% | 1.23% |
Expected term (in years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Volatility | 50.90% | 54.70% | 51.00% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Stockholders_Equity_Deficit_an7
Stockholders' Equity (Deficit) and Stock-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of Shares, Beginning balance | 4,695 | |
Number of Shares, Granted | 1,067 | |
Number of Shares, Exercised | -850 | |
Number of Shares, Forfeited/Expired | -324 | |
Number of Shares, Ending balance | 4,588 | 4,695 |
Number of Shares, Vested and expected to vest | 4,296 | |
Number of Shares, Exercisable | 2,438 | |
Weighted Average Exercise Price, Beginning balance | $6.66 | |
Weighted Average Exercise Price, Granted | $19.39 | |
Weighted Average Exercise Price, Exercised | $4.46 | |
Weighted Average Exercise Price, Forfeited/ Expired | $12.10 | |
Weighted Average Exercise Price , Ending balance | $9.64 | $6.66 |
Weighted Average Exercise Price, Vested and expected to vest | $9.14 | |
Weighted Average Exercise Price, Exercisable | $5.90 | |
Weighted Average Remaining Life, Outstanding | 7 years 7 months 6 days | 8 years |
Weighted Average Remaining Life, Options vested or expected to vest | 7 years 6 months | |
Weighted Average Remaining Life, Options exercisable | 6 years 9 months 18 days | |
Aggregate Intrinsic Value, Outstanding | $110,396 | $37,651 |
Aggregate Intrinsic Value, Options vested or expected to vest | 105,418 | |
Aggregate Intrinsic Value, Options exercisable | $67,557 |
Stockholders_Equity_Deficit_an8
Stockholders' Equity (Deficit) and Stock-Based Compensation - Summary of Activity for RSAs (Detail) (Restricted Stock Award [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Restricted Stock Award [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Shares, Beginning balance | 67 |
Restricted shares, Lapse in buyback right | -67 |
Weighted average grant date fair value, Beginning balance | $5.70 |
Weighted average grant date fair value, Lapse in buyback right | $5.70 |
Weighted average grant date fair value, Ending balance | $0 |
Stockholders_Equity_Deficit_an9
Stockholders' Equity (Deficit) and Stock-Based Compensation - Summary of Activity Related to RSUs (Detail) (RSUs [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Shares, Beginning balance | 858 |
Shares, Granted | 784 |
Shares, Vested | 0 |
Shares, Canceled | -266 |
Restricted shares, Ending balance | 1,376 |
Weighted average grant date fair value, Beginning balance | $13.29 |
Weighted- Average Grant Date Fair Value, Granted | $20.55 |
Weighted- Average Grant Date Fair Value, Vested | $0 |
Weighted- Average Grant Date Fair, Canceled | $13.42 |
Weighted average grant date fair value, Ending balance | $17.40 |
Employee_Stock_Purchase_Plan_A
Employee Stock Purchase Plan - Additional Information (Detail) | 0 Months Ended | ||
Sep. 20, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance | 5,977,000 | 25,096,000 | |
Percentage of discount allowed to employee to purchase common stock | 15.00% | ||
2014 Employee Share Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance | 394,710 |
Income_Taxes_Schedule_of_Loss_
Income Taxes - Schedule of Loss Before Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
United States | ($49,634) | ($34,393) | ($18,358) |
Foreign | 1,313 | 119 | -420 |
Total | ($48,321) | ($34,274) | ($18,778) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation Of Income Taxes [Line Items] | |||
Federal statutory income tax rate | 35.00% | ||
Current income tax expense, State | ($20,000) | ||
Current income tax expense, Foreign | -12,000 | ||
Deferred foreign income tax benefit | 124,000 | ||
Increase in valuation allowance | 16,800,000 | 12,400,000 | 7,000,000 |
Federal net operating loss carryforwards | 124,300,000 | ||
State net operating loss carryforwards | 79,700,000 | ||
Federal and state net operating loss carryforwards, expiration year | 31-Dec-34 | ||
Net operating loss carryforwards | 46,615,000 | 35,077,000 | 23,810,000 |
Research and development credits | 2,334,000 | 986,000 | 541,000 |
Federal research credit, description | On December 19, 2014 the Tax Increase Prevention Act was signed into law. The Act contains provisions that extended the federal research credit through the end of 2014. The federal research credit provisions had previously expired at the end of 2013. A benefit of $839 for 2014 federal research credit is reflected in the financial statements. | ||
Federal research credit | 839,000 | ||
Minimum percentage chances of tax benefit to be realized on examination | 50.00% | ||
Unrecognized tax benefits affect the Company's effective tax rate | 0 | ||
Interest or penalties recorded | 0 | ||
Expected significant change in unrecognized tax benefits, description | The Company does not expect any significant change in its unrecognized tax benefits within the next 12 months. | ||
Additional Paid-In Capital [Member] | |||
Reconciliation Of Income Taxes [Line Items] | |||
Net operating loss carryforwards | 1,500,000 | ||
Non-U.S [Member] | |||
Reconciliation Of Income Taxes [Line Items] | |||
Number of subsidiaries | 2 | ||
Federal [Member] | |||
Reconciliation Of Income Taxes [Line Items] | |||
Research and development credits | 2,700,000 | ||
Research and development credit carryforwards, expiration year | 31-Dec-34 | ||
State [Member] | |||
Reconciliation Of Income Taxes [Line Items] | |||
Research and development credits | 1,700,000 | ||
Research and development credit carryforwards, expiration year | 31-Dec-34 | ||
Investments credits | $320,000 |
Income_Taxes_Schedule_of_Diffe
Income Taxes - Schedule of Differences Between Income Taxes Computed at the Federal Statutory Rate and the Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Expected income tax benefit at the federal statutory rate | $16,913 | $11,997 | $6,572 |
State tax net of federal benefit | 1,709 | 1,197 | 653 |
Stock-based compensation | -886 | -830 | -462 |
Difference in foreign tax rates | 289 | 27 | -95 |
Research and development credits | 1,331 | 444 | 140 |
Valuation allowance for deferred tax assets | -16,839 | -12,367 | -6,959 |
Expired state net operating losses | -1,880 | ||
Other | -545 | -468 | 151 |
Income tax benefit | $92 |
Income_Taxes_Components_of_the
Income Taxes - Components of the Company's Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred tax assets: | |||
Net operating loss carryforwards | $46,615 | $35,077 | $23,810 |
Research and investment credits | 2,334 | 986 | 541 |
Accruals and reserves | 3,423 | 2,430 | 2,025 |
Depreciation | 372 | 172 | 202 |
Stock-based compensation | 5,409 | 395 | 124 |
Total deferred tax assets | 58,153 | 39,060 | 26,702 |
Deferred tax liabilities: | |||
Intangible and prepaid assets | -2,367 | -57 | -123 |
Capitalized costs | -441 | -620 | -563 |
Total deferred tax liabilities | -2,808 | -677 | -686 |
Valuation allowance | -55,221 | -38,383 | -26,016 |
Net deferred tax assets | $124 |
Income_Taxes_Summary_of_Activi
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Unrecognized benefit - beginning of the year | $1,030 | $667 | $552 |
Gross increases-current period positions | 683 | 363 | 115 |
Unrecognized benefit - end of period | $1,713 | $1,030 | $667 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Postemployment Benefits [Abstract] | ||
Contribution to Defined contribution savings plan | $549 | $366 |
Recovered_Sheet1
Quarterly Financial Results (Unaudited) - Schedule of Quarterly Financial Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $34,157 | $30,448 | $27,098 | $24,174 | $22,379 | $20,179 | $18,336 | $16,740 | $115,876 | $77,634 | $51,604 |
Cost of revenue | 10,522 | 9,705 | 8,739 | 8,114 | 7,870 | 7,382 | 7,347 | 6,440 | 37,080 | 29,039 | 16,838 |
Gross profit | 23,635 | 20,743 | 18,359 | 16,060 | 14,509 | 12,797 | 10,989 | 10,300 | 78,796 | 48,595 | 34,766 |
Net loss | -19,697 | -10,793 | -8,279 | -9,465 | -8,425 | -9,511 | -8,803 | -7,536 | -48,229 | -34,274 | -18,778 |
Net loss attributable to common stockholders | ($19,988) | ($10,806) | ($8,292) | ($9,478) | ($8,438) | ($9,524) | ($8,816) | ($7,549) | ($48,560) | ($34,328) | ($18,859) |
Basic and diluted net loss attributable to common stockholders per share | ($0.69) | ($1.84) | ($1.44) | ($1.73) | ($1.63) | ($1.85) | ($1.73) | ($1.50) | ($4.20) | ($6.71) | ($4.01) |