Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HUBS | |
Entity Registrant Name | HUBSPOT INC | |
Entity Central Index Key | 1,404,655 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,943,502 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 53,019 | $ 55,580 |
Short-term investments | 54,633 | 48,972 |
Accounts receivable — net of allowance for doubtful accounts of $409 and $371 at March 31, 2016 and December 31, 2015, respectively | 25,072 | 25,142 |
Deferred commission expense | 8,453 | 8,114 |
Prepaid hosting costs | 2,531 | 3,047 |
Prepaid expenses and other current assets | 8,030 | 4,899 |
Total current assets | 151,738 | 145,754 |
Long-term investments | 35,113 | 40,566 |
Property and equipment, net | 26,897 | 18,161 |
Capitalized software development costs, net | 5,086 | 4,655 |
Restricted cash | 381 | 363 |
Other assets | 928 | 1,007 |
Intangible assets, net | 76 | 100 |
Goodwill | 9,773 | 9,773 |
Total assets | 229,992 | 220,379 |
Current liabilities: | ||
Accounts payable | 2,674 | 2,588 |
Accrued compensation costs | 8,920 | 11,371 |
Other accrued expenses | 14,993 | 12,313 |
Capital lease obligations | 649 | 542 |
Deferred rent | 174 | 86 |
Deferred revenue | 73,262 | 64,407 |
Total current liabilities | 100,672 | 91,307 |
Capital lease obligations, net of current portion | 285 | 277 |
Deferred rent, net of current portion | 7,378 | 6,345 |
Deferred revenue, net of current portion | 692 | 732 |
Other long-term liabilities | 13 | 10 |
Total liabilities | $ 109,040 | $ 98,671 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Common stock | $ 35 | $ 34 |
Additional paid-in capital | 331,730 | 322,833 |
Accumulated other comprehensive loss | (305) | (805) |
Accumulated deficit | (210,508) | (200,354) |
Total stockholders’ equity | 120,952 | 121,708 |
Total liabilities and stockholders’ equity | $ 229,992 | $ 220,379 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 409 | $ 371 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Subscription | $ 54,936 | $ 34,939 |
Professional services and other | 4,024 | 3,227 |
Total revenue | 58,960 | 38,166 |
Cost of Revenues: | ||
Subscription | 8,910 | 6,940 |
Professional services and other | 5,061 | 3,525 |
Total cost of revenues | 13,971 | 10,465 |
Gross profit | 44,989 | 27,701 |
Operating expenses: | ||
Research and development | 9,804 | 7,501 |
Sales and marketing | 35,198 | 23,897 |
General and administrative | 9,848 | 7,715 |
Total operating expenses | 54,850 | 39,113 |
Loss from operations | (9,861) | (11,412) |
Other (expense) income: | ||
Interest income | 179 | 10 |
Interest expense | (87) | (32) |
Other (expense) income | (333) | 628 |
Total other (expense) income | (241) | 606 |
Loss before income tax provision | (10,102) | (10,806) |
Income tax provision | (52) | (52) |
Net loss | $ (10,154) | $ (10,858) |
Net loss per share, basic and diluted | $ (0.29) | $ (0.34) |
Weighted average common shares used in computing basic and diluted net loss per share: | 34,692 | 31,636 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (10,154) | $ (10,858) |
Other comprehensive loss: | ||
Foreign currency translation adjustment | 166 | (209) |
Changes in unrealized gain (loss) on investments, net of income taxes of $0 for the three months ended March 31, 2016 and 2015 | 334 | (26) |
Comprehensive loss | $ (9,654) | $ (11,093) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Changes in unrealized gain (loss) on investments, income taxes | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities: | ||
Net loss | $ (10,154) | $ (10,858) |
Adjustments to reconcile net loss to net cash and cash equivalents provided by (used in) operating activities | ||
Depreciation and amortization | 2,201 | 1,747 |
Stock-based compensation | 6,231 | 5,142 |
Provision for deferred income taxes | 3 | 26 |
Amortization of bond premium discount | 221 | 2 |
Noncash rent expense | 1,112 | 168 |
Unrealized currency translation | (252) | (448) |
Changes in assets and liabilities, net of acquisitions | ||
Accounts receivable | 347 | (1,451) |
Prepaid expenses and other assets | (2,403) | (1,151) |
Deferred commission expense | (299) | 4 |
Accounts payable | (804) | (1,110) |
Accrued expenses | (1,154) | 652 |
Deferred rent | (23) | |
Deferred revenue | 8,152 | 6,462 |
Net cash and cash equivalents provided by (used in) operating activities | 3,178 | (815) |
Investing Activities: | ||
Purchases of investments | (8,969) | (25,784) |
Maturities of investments | 8,875 | |
Purchases of property and equipment | (6,641) | (1,025) |
Capitalization of software development costs | (1,434) | (770) |
Acquisition of a business | (600) | |
Net cash and cash equivalents used in investing activities | (8,169) | (28,179) |
Financing Activities: | ||
Secondary offering proceeds, net of offering costs paid of $138 | 34,114 | |
Employee taxes paid related to the net share settlement of stock-based awards | (958) | |
Proceeds related to the issuance of common stock under stock plans | 2,992 | 966 |
Repayments of capital lease obligations | (142) | (24) |
Net cash and cash equivalents provided by financing activities | 1,892 | 35,056 |
Effect of exchange rate changes on cash and cash equivalents | 538 | (408) |
Net (decrease) increase in cash and cash equivalents | (2,561) | 5,654 |
Cash and cash equivalents, beginning of period | 55,580 | 123,721 |
Cash and cash equivalents, end of period | 53,019 | 129,375 |
Supplemental cash flow disclosure: | ||
Cash and cash equivalents paid for interest | 87 | 29 |
Cash and cash equivalents paid for income taxes | 73 | |
Non-cash investing and financing activities: | ||
Property acquired under capital lease | 257 | |
Offering costs incurred but not yet paid | 295 | |
Capital expenditures incurred but not yet paid | $ 2,974 | $ 5 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Statement Of Cash Flows [Abstract] | |
Offering costs paid on secondary offering | $ 138 |
Organization and Operations
Organization and Operations | 3 Months Ended |
Mar. 31, 2016 | |
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 2013, in Sydney, Australia, which commenced operations in August 2014, and in Singapore which commenced operations in October 2015. Additionally, the Company has announced that it will open an office in Tokyo, Japan in July 2016. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) applicable to interim periods, under the rules and regulations of the United States Securities and Exchange Commission (“SEC”). In the opinion of management, the Company has prepared the accompanying unaudited consolidated financial statements on a basis substantially consistent with the audited consolidated financial statements of the Company as of and for the year ended December 31, 2015, and these consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. All intercompany balances and transactions have been eliminated in consolidation. The Company has $5.6 million accrued for partner commissions at March 31, 2016 and $4.9 million accrued for partner commissions at December 31, 2015. These amounts are included within other accrued expenses on the unaudited consolidated balance sheets. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for any subsequent quarter or for the entire year ending December 31, 2016. The year-end balance sheet data was derived from audited financial statements, but this Form 10-Q does not include all disclosures required under GAAP. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted under the rules and regulations of the SEC. These interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 24, 2016. There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s Annual Report on Form 10-K that have had a material impact on our consolidated financial statements and related notes. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued guidance that changes the accounting for certain aspects of share-based payments to employees. The guidance requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid-in capital pools. The guidance also allows for the employer to repurchase or sell more shares than required under local statutory regulation without triggering liability accounting. In addition, the guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis. The guidance is effective in 2017 with early adoption permitted. The Company is currently evaluating the impact of this guidance on the consolidated financial statements. In February 2016, the FASB issued guidance that requires lessees to recognize most leases on their balance sheets but record expenses on their income statements in a manner similar to current accounting. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The guidance is effective in 2019 with early adoption permitted. The Company is currently evaluating the impact of this guidance on the consolidated financial statements. In May 2014, the FASB 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. In July 2015, the FASB approved the deferral of the new standard's effective date by one year. The new standard now is effective for annual reporting periods beginning January 1, 2018. The FASB will permit companies to adopt the new standard early, but not before the original effective date of January 1, 2017. The Company is currently evaluating the impact of this guidance on the consolidated financial statements. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 2. Net Loss per Share Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per share 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 warrants, and restricted stock units (“RSUs”) are considered to be potential common stock equivalents. A reconciliation of the denominator used in the calculation of basic and diluted net loss per share is as follows: Three Months Ended March 31, 2016 2015 Net loss $ (10,154 ) $ (10,858 ) Weighted-average common shares outstanding — basic 34,692 31,636 Dilutive effect of share equivalents resulting from stock options, common stock warrants and RSUs — — Weighted-average common shares, outstanding — diluted 34,692 31,636 Net loss per share, basic and diluted $ (0.29 ) $ (0.34 ) Additionally, since the Company incurred net losses for each of the periods presented, diluted net loss per share is the same as basic net loss per share. The Company’s outstanding stock options, common stock warrants and RSUs were not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. The following table contains all potentially dilutive common stock equivalents. As of March 31, 2016 2015 (in thousands) Options to purchase common shares 3,200 4,742 Common stock warrants — 13 RSUs 1,785 2,043 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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 following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities at March 31, 2016 and December 31, 2015. March 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 32,370 $ — $ — $ 32,370 Commercial paper — 7,730 — 7,730 Corporate bonds — 70,017 — 70,017 U.S. government agency obligations — 11,999 — 11,999 Total $ 32,370 $ 89,746 $ — $ 122,116 December 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 32,014 $ — $ — $ 32,014 Commercial paper — 7,711 — 7,711 Corporate bonds — 70,869 — 70,869 U.S. government agency obligations — 10,958 — 10,958 Total $ 32,014 $ 89,538 $ — $ 121,552 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 and such instruments are classified as Level 1 and are included in cash and cash equivalents on the consolidated balance sheets. At March 31, 2016 and December 31, 2015, our Level 2 securities were priced by pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. For certain other financial instruments, including accounts receivable, accounts payable, capital leases and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. The following tables summarize the composition of our short- and long-term investments at March 31, 2016 and December 31, 2015. March 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 7,733 $ - $ (3 ) $ 7,730 Corporate bonds 70,071 28 (82 ) 70,017 U.S. government agency obligations 11,996 9 (6 ) 11,999 Total $ 89,800 $ 37 $ (91 ) $ 89,746 December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 7,721 $ — $ (10 ) $ 7,711 Corporate bonds 71,207 — (338 ) 70,869 U.S. government agency obligations 10,998 — (40 ) 10,958 Total $ 89,926 $ — $ (388 ) $ 89,538 For all of our securities for which the amortized cost basis was greater than the fair value at March 31, 2016, the Company has concluded that there is no plan to sell the security nor is it more likely than not that the Company would be required to sell the security before its anticipated recovery. In making the determination as to whether the unrealized loss is other-than-temporary, the Company considered the length of time and extent the investment has been in an unrealized loss position, the financial condition and near-term prospects of the issuers, the issuers’ credit rating and the time to maturity. Contractual Maturities The contractual maturities of short-term and long-term investments held at March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 December 31, 2015 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value ( in thousands) ( in thousands) Due within one year $ 54,666 $ 54,633 $ 49,068 $ 48,972 Due after 1 year through 2 years 35,134 35,113 40,858 40,566 Total $ 89,800 $ 89,746 $ 89,926 $ 89,538 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, Net Property and equipment, net consists of the following: March 31, 2016 December 31, 2015 (in thousands) Computer equipment and purchased software $ 2,290 $ 1,237 Employee computer equipment 686 307 Furniture and fixtures 6,432 3,907 Office equipment 2,307 1,209 Leasehold improvements 21,521 17,086 Equipment under capital lease 1,666 1,409 Total property and equipment 34,902 25,155 Less accumulated depreciation and amortization (8,005 ) (6,994 ) Property and equipment, net $ 26,897 $ 18,161 Depreciation and amortization expense on property and equipment was $981 thousand for the three months ended March 31, 2016 and $668 thousand for the three months ended March 31, 2015. |
Capitalized Software Developmen
Capitalized Software Development Costs | 3 Months Ended |
Mar. 31, 2016 | |
Research And Development [Abstract] | |
Capitalized Software Development Costs | 5. Capitalized Software Development Costs Capitalized software development costs consisted of the following: March 31, 2016 December 31, 2015 (in thousands) Gross capitalized software development costs $ 20,363 $ 18,737 Accumulated amortization (15,277 ) (14,082 ) Capitalized software development costs, net $ 5,086 $ 4,655 The following table summarizes software development costs capitalized, stock-based compensation included in capitalized software development costs, and amortization of capitalized software development costs. For the Three Months Ended March 31, 2016 2015 (in thousands) Software development costs capitalized $ 1,627 $ 854 Stock-based compensation included in capitalized software development costs $ 193 $ 84 Amortization of software development costs $ 1,196 $ 1,062 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Contractual Obligations There were no material changes in our commitments under contractual obligations, as disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2015 and related notes thereto contained in the Company’s Annual Report on Form 10-K. Legal Contingencies From time to time, we may become a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, and threatened claims, breach of contract claims, tax, and other matters. We currently have no material pending litigation. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | 7. 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, for the three months ended March 31, 2016. Cumulative Translation Adjustment Unrealized Loss Investments Total (in thousands) Beginning balance at January 1, 2016 $ (417 ) $ (388 ) $ (805 ) Other comprehensive loss before reclassifications 166 334 500 Amounts reclassified from accumulated other comprehensive income — — — Ending balance at March 31, 2016 $ (251 ) $ (54 ) $ (305 ) |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense | 8. Stock-Based Compensation Expense The following two tables show stock-based compensation expense by award type and where the stock-based compensation expense is recorded in the Company’s consolidated statements of operations: Three Months Ended March 31, 2016 2015 (in thousands) Options $ 1,478 $ 1,582 RSUs 4,533 3,396 Employee stock purchase plan 220 164 Total stock-based compensation expense $ 6,231 $ 5,142 Effect of stock-based compensation expense on income by line item: Three Months Ended March 31, 2016 2015 (in thousands) Cost of revenue, subscription $ 94 $ 67 Cost of revenue, service 324 257 Research and development 1,758 1,633 Sales and marketing 2,427 2,055 General and administrative 1,628 1,130 Total stock-based compensation expense $ 6,231 $ 5,142 Excluded from stock-based compensation expense is $193 thousand of capitalized software development costs for the three months ended March 31, 2016 and $84 thousand for the three months ended March 31, 2015. |
Segment Information and Geograp
Segment Information and Geographic Data | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | 9. Segment Information and Geographic Data 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. Revenue and long-lived assets by geographic region, based on the physical location of the operations recording the sale or the asset, are as follows: Revenues by geographical region: Three Months Ended March 31, 2016 2015 Americas $ 48,777 $ 33,225 Europe 8,499 4,502 Asia Pacific 1,684 439 Total $ 58,960 $ 38,166 Percentage of revenues generated outside of the Americas 17 % 13 % Total long-lived assets by geographical region: As of March 31, 2016 As of December 31, 2015 Americas $ 18,457 $ 15,108 Europe 5,968 1,885 Asia Pacific 2,472 1,168 Total long-lived assets $ 26,897 $ 18,161 Percentage of long-lived assets held outside of the Americas 31 % 17 % |
Organization and Operations (Po
Organization and Operations (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued guidance that changes the accounting for certain aspects of share-based payments to employees. The guidance requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid-in capital pools. The guidance also allows for the employer to repurchase or sell more shares than required under local statutory regulation without triggering liability accounting. In addition, the guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis. The guidance is effective in 2017 with early adoption permitted. The Company is currently evaluating the impact of this guidance on the consolidated financial statements. In February 2016, the FASB issued guidance that requires lessees to recognize most leases on their balance sheets but record expenses on their income statements in a manner similar to current accounting. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The guidance is effective in 2019 with early adoption permitted. The Company is currently evaluating the impact of this guidance on the consolidated financial statements. In May 2014, the FASB 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. In July 2015, the FASB approved the deferral of the new standard's effective date by one year. The new standard now is effective for annual reporting periods beginning January 1, 2018. The FASB will permit companies to adopt the new standard early, but not before the original effective date of January 1, 2017. The Company is currently evaluating the impact of this guidance on the consolidated financial statements. |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Denominator Used in Calculation of Basic and Diluted Net Loss Per Share | A reconciliation of the denominator used in the calculation of basic and diluted net loss per share is as follows: Three Months Ended March 31, 2016 2015 Net loss $ (10,154 ) $ (10,858 ) Weighted-average common shares outstanding — basic 34,692 31,636 Dilutive effect of share equivalents resulting from stock options, common stock warrants and RSUs — — Weighted-average common shares, outstanding — diluted 34,692 31,636 Net loss per share, basic and diluted $ (0.29 ) $ (0.34 ) |
Schedule of Potentially Dilutive Common Stock Equivalents | The following table contains all potentially dilutive common stock equivalents. As of March 31, 2016 2015 (in thousands) Options to purchase common shares 3,200 4,742 Common stock warrants — 13 RSUs 1,785 2,043 |
Fair Value of Financial Instr20
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements of Financial Assets and Liabilities | The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities at March 31, 2016 and December 31, 2015. March 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 32,370 $ — $ — $ 32,370 Commercial paper — 7,730 — 7,730 Corporate bonds — 70,017 — 70,017 U.S. government agency obligations — 11,999 — 11,999 Total $ 32,370 $ 89,746 $ — $ 122,116 December 31, 2015 Level 1 Level 2 Level 3 Total (in thousands) Money market funds $ 32,014 $ — $ — $ 32,014 Commercial paper — 7,711 — 7,711 Corporate bonds — 70,869 — 70,869 U.S. government agency obligations — 10,958 — 10,958 Total $ 32,014 $ 89,538 $ — $ 121,552 |
Summary of Composition of Short and Long Term Investments | The following tables summarize the composition of our short- and long-term investments at March 31, 2016 and December 31, 2015. March 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 7,733 $ - $ (3 ) $ 7,730 Corporate bonds 70,071 28 (82 ) 70,017 U.S. government agency obligations 11,996 9 (6 ) 11,999 Total $ 89,800 $ 37 $ (91 ) $ 89,746 December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 7,721 $ — $ (10 ) $ 7,711 Corporate bonds 71,207 — (338 ) 70,869 U.S. government agency obligations 10,998 — (40 ) 10,958 Total $ 89,926 $ — $ (388 ) $ 89,538 |
Summary of Contractual Maturities of Short and Long Term Investments | The contractual maturities of short-term and long-term investments held at March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 December 31, 2015 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value ( in thousands) ( in thousands) Due within one year $ 54,666 $ 54,633 $ 49,068 $ 48,972 Due after 1 year through 2 years 35,134 35,113 40,858 40,566 Total $ 89,800 $ 89,746 $ 89,926 $ 89,538 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment Net | Property and equipment, net consists of the following: March 31, 2016 December 31, 2015 (in thousands) Computer equipment and purchased software $ 2,290 $ 1,237 Employee computer equipment 686 307 Furniture and fixtures 6,432 3,907 Office equipment 2,307 1,209 Leasehold improvements 21,521 17,086 Equipment under capital lease 1,666 1,409 Total property and equipment 34,902 25,155 Less accumulated depreciation and amortization (8,005 ) (6,994 ) Property and equipment, net $ 26,897 $ 18,161 |
Capitalized Software Developm22
Capitalized Software Development Costs (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Research And Development [Abstract] | |
Summary of Capitalized Software Development Costs | Capitalized software development costs consisted of the following: March 31, 2016 December 31, 2015 (in thousands) Gross capitalized software development costs $ 20,363 $ 18,737 Accumulated amortization (15,277 ) (14,082 ) Capitalized software development costs, net $ 5,086 $ 4,655 |
Summary of Capitalized Software Development Costs Including Stock-Based Compensation and Amortization | The following table summarizes software development costs capitalized, stock-based compensation included in capitalized software development costs, and amortization of capitalized software development costs. For the Three Months Ended March 31, 2016 2015 (in thousands) Software development costs capitalized $ 1,627 $ 854 Stock-based compensation included in capitalized software development costs $ 193 $ 84 Amortization of software development costs $ 1,196 $ 1,062 |
Changes in Accumulated Other 23
Changes in Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, for the three months ended March 31, 2016. Cumulative Translation Adjustment Unrealized Loss Investments Total (in thousands) Beginning balance at January 1, 2016 $ (417 ) $ (388 ) $ (805 ) Other comprehensive loss before reclassifications 166 334 500 Amounts reclassified from accumulated other comprehensive income — — — Ending balance at March 31, 2016 $ (251 ) $ (54 ) $ (305 ) |
Stock-Based Compensation Expe24
Stock-Based Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation Expense by Award is Recorded in the Company's Consolidated Statements of Operations | The following two tables show stock-based compensation expense by award type and where the stock-based compensation expense is recorded in the Company’s consolidated statements of operations: Three Months Ended March 31, 2016 2015 (in thousands) Options $ 1,478 $ 1,582 RSUs 4,533 3,396 Employee stock purchase plan 220 164 Total stock-based compensation expense $ 6,231 $ 5,142 |
Effect of Stock-Based Compensation on Income by Line Item | Effect of stock-based compensation expense on income by line item: Three Months Ended March 31, 2016 2015 (in thousands) Cost of revenue, subscription $ 94 $ 67 Cost of revenue, service 324 257 Research and development 1,758 1,633 Sales and marketing 2,427 2,055 General and administrative 1,628 1,130 Total stock-based compensation expense $ 6,231 $ 5,142 |
Segment Information and Geogr25
Segment Information and Geographic Data (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenues by Geographical Region | Revenues by geographical region: Three Months Ended March 31, 2016 2015 Americas $ 48,777 $ 33,225 Europe 8,499 4,502 Asia Pacific 1,684 439 Total $ 58,960 $ 38,166 Percentage of revenues generated outside of the Americas 17 % 13 % |
Long Lived Assets by Geographical Region | Total long-lived assets by geographical region: As of March 31, 2016 As of December 31, 2015 Americas $ 18,457 $ 15,108 Europe 5,968 1,885 Asia Pacific 2,472 1,168 Total long-lived assets $ 26,897 $ 18,161 Percentage of long-lived assets held outside of the Americas 31 % 17 % |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Accrued for partner commissions | $ 5.6 | $ 4.9 |
Net Loss per Share - Summary of
Net Loss per Share - Summary of Reconciliation of Denominator Used in Calculation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share Basic And Diluted [Abstract] | ||
Net loss | $ (10,154) | $ (10,858) |
Weighted-average common shares outstanding — basic | 34,692 | 31,636 |
Weighted-average common shares, outstanding — diluted | 34,692 | 31,636 |
Net loss per share, basic and diluted | $ (0.29) | $ (0.34) |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Potentially Dilutive Common Stock Equivalents (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | 3,200 | 4,742 |
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 | |
RSUs [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 1,785 | 2,043 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | $ 89,746 | $ 89,538 |
Fair value of financial assets | 122,116 | 121,552 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 32,370 | 32,014 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 89,746 | 89,538 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of cash and cash equivalents | 32,370 | 32,014 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of cash and cash equivalents | 32,370 | 32,014 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of cash and cash equivalents | 7,730 | 7,711 |
Fair value of short and long term investments | 7,730 | 7,711 |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of cash and cash equivalents | 7,730 | 7,711 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 70,017 | 70,869 |
Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 70,017 | 70,869 |
US Government Agency Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 11,999 | 10,958 |
US Government Agency Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | $ 11,999 | $ 10,958 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments - Summary of Composition of Short and Long Term Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 89,800 | $ 89,926 |
Unrealized Gains | 37 | |
Unrealized Losses | (91) | (388) |
Aggregate Fair Value | 89,746 | 89,538 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,733 | 7,721 |
Unrealized Losses | (3) | (10) |
Aggregate Fair Value | 7,730 | 7,711 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 70,071 | 71,207 |
Unrealized Gains | 28 | |
Unrealized Losses | (82) | (338) |
Aggregate Fair Value | 70,017 | 70,869 |
US Government Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,996 | 10,998 |
Unrealized Gains | 9 | |
Unrealized Losses | (6) | (40) |
Aggregate Fair Value | $ 11,999 | $ 10,958 |
Fair Value of Financial Instr31
Fair Value of Financial Instruments - Summary of Contractual Maturities of Short and Long Term Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Amortized Cost Basis, Due within one year | $ 54,666 | $ 49,068 |
Amortized Cost Basis, Due after 1 year through 2 years | 35,134 | 40,858 |
Amortized Cost | 89,800 | 89,926 |
Aggregate Fair Value, Due within one year | 54,633 | 48,972 |
Aggregate Fair Value, Due after 1 year through 2 years | 35,113 | 40,566 |
Aggregate Fair Value, Total | $ 89,746 | $ 89,538 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 34,902 | $ 25,155 |
Less accumulated depreciation and amortization | (8,005) | (6,994) |
Property and equipment, net | 26,897 | 18,161 |
Computer Equipment and Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,290 | 1,237 |
Employee Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 686 | 307 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,432 | 3,907 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,307 | 1,209 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 21,521 | 17,086 |
Equipment under Capital Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,666 | $ 1,409 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization | $ 981 | $ 668 |
Capitalized Software Developm34
Capitalized Software Development Costs - Summary of Capitalized Software Development Costs (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Capitalized Computer Software Net [Abstract] | ||
Gross capitalized software development costs | $ 20,363 | $ 18,737 |
Accumulated amortization | (15,277) | (14,082) |
Capitalized software development costs, net | $ 5,086 | $ 4,655 |
Capitalized Software Developm35
Capitalized Software Development Costs - Summary of Capitalized Software Development Costs Including Stock-Based Compensation and Amortization (Detail) - Software Development [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Capitalized Computer Software [Line Items] | ||
Software development costs capitalized | $ 1,627 | $ 854 |
Stock-based compensation included in capitalized software development costs | 193 | 84 |
Amortization of software development costs | $ 1,196 | $ 1,062 |
Changes in Accumulated Other 36
Changes in Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance at January 1, 2016 | $ (805) |
Other comprehensive loss before reclassifications | 500 |
Ending balance at March 31, 2016 | (305) |
Cumulative Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance at January 1, 2016 | (417) |
Other comprehensive loss before reclassifications | 166 |
Ending balance at March 31, 2016 | (251) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning balance at January 1, 2016 | (388) |
Other comprehensive loss before reclassifications | 334 |
Ending balance at March 31, 2016 | $ (54) |
Stock-Based Compensation Expe37
Stock-Based Compensation Expense - Stock Compensation Expense by Award is Recorded in the Company's Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 6,231 | $ 5,142 |
Common Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 1,478 | 1,582 |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 4,533 | 3,396 |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 220 | $ 164 |
Stock-Based Compensation Expe38
Stock-Based Compensation Expense - Effect of Stock-Based Compensation on Income by Line Item (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 6,231 | $ 5,142 |
Cost of Revenue, Subscription [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 94 | 67 |
Cost of Revenue, Service [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 324 | 257 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 1,758 | 1,633 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 2,427 | 2,055 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 1,628 | $ 1,130 |
Stock-Based Compensation Expe39
Stock-Based Compensation Expense - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Software Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Capitalized software development costs excluded from stock based compensation | $ 193 | $ 84 |
Segment Information and Geogr40
Segment Information and Geographic Data - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment Information and Geogr41
Segment Information and Geographic Data - Revenues by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Total Revenues | $ 58,960 | $ 38,166 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 48,777 | 33,225 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 8,499 | 4,502 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | $ 1,684 | $ 439 |
Revenue [Member] | Outside Of Americas [Member] | Geographic Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenues generated outside of the Americas | 17.00% | 13.00% |
Segment Information and Geogr42
Segment Information and Geographic Data - Long Lived Assets by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 26,897 | $ 18,161 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 18,457 | 15,108 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 5,968 | 1,885 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 2,472 | $ 1,168 |
Outside Of Americas [Member] | Assets Total [Member] | Geographic Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of long lived assets held outside of the Americas | 31.00% | 17.00% |