HubSpot (HUBS) 10-Q 4 May 16 2016 Q1 Quarterly report Financial data

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%