Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 26, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 | 37,371,546 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 176,743 | $ 59,702 |
Short-term investments | 315,130 | 54,648 |
Accounts receivable — net of allowance for doubtful accounts of $622 and $617 at September 30, 2017 and December 31, 2016, respectively | 48,790 | 38,984 |
Deferred commission expense | 11,228 | 9,025 |
Restricted cash | 162 | |
Prepaid hosting costs | 1,411 | 5,299 |
Prepaid expenses and other current assets | 17,726 | 8,433 |
Total current assets | 571,028 | 176,253 |
Long-term investments | 35,669 | 35,718 |
Property and equipment, net | 40,601 | 30,201 |
Capitalized software development costs, net | 8,566 | 6,523 |
Restricted cash | 5,106 | 321 |
Other assets | 4,044 | 950 |
Intangible assets | 6,362 | 16 |
Goodwill | 14,950 | 9,773 |
Total assets | 686,326 | 259,755 |
Current liabilities: | ||
Accounts payable | 4,749 | 4,350 |
Accrued compensation costs | 11,611 | 11,415 |
Other accrued expenses | 25,753 | 16,033 |
Deferred rent | 157 | 159 |
Deferred revenue | 118,366 | 95,426 |
Total current liabilities | 160,636 | 127,383 |
Deferred rent, net of current portion | 18,173 | 10,079 |
Deferred revenue, net of current portion | 1,792 | 1,171 |
Other long-term liabilities | 3,626 | 2,422 |
Convertible senior notes | 293,563 | |
Total liabilities | 477,790 | 141,055 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Common stock | 36 | 36 |
Additional paid-in capital | 482,964 | 365,444 |
Accumulated other comprehensive income (loss) | 83 | (864) |
Accumulated deficit | (274,547) | (245,916) |
Total stockholders’ equity | 208,536 | 118,700 |
Total liabilities and stockholders’ equity | $ 686,326 | $ 259,755 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 622 | $ 617 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Subscription | $ 93,164 | $ 66,505 | $ 255,030 | $ 182,357 |
Professional services and other | 4,562 | 4,084 | 14,041 | 12,166 |
Total revenue | 97,726 | 70,589 | 269,071 | 194,523 |
Cost of revenues: | ||||
Subscription | 12,933 | 10,655 | 36,834 | 29,550 |
Professional services and other | 6,077 | 5,157 | 17,839 | 15,428 |
Total cost of revenues | 19,010 | 15,812 | 54,673 | 44,978 |
Gross profit | 78,716 | 54,777 | 214,398 | 149,545 |
Operating expenses: | ||||
Research and development | 18,828 | 12,100 | 48,087 | 33,182 |
Sales and marketing | 57,904 | 41,193 | 155,284 | 115,531 |
General and administrative | 14,110 | 11,435 | 41,730 | 31,674 |
Total operating expenses | 90,842 | 64,728 | 245,101 | 180,387 |
Loss from operations | (12,126) | (9,951) | (30,703) | (30,842) |
Other expense: | ||||
Interest income | 1,274 | 224 | 2,311 | 604 |
Interest expense | (5,063) | (97) | (7,947) | (277) |
Other expense | (26) | (365) | (251) | (900) |
Total other expense | (3,815) | (238) | (5,887) | (573) |
Loss before income tax benefit (expense) | (15,941) | (10,189) | (36,590) | (31,415) |
Income tax benefit (expense) | 5,358 | (326) | 8,411 | (318) |
Net loss | $ (10,583) | $ (10,515) | $ (28,179) | $ (31,733) |
Net loss per share, basic and diluted | $ (0.29) | $ (0.30) | $ (0.77) | $ (0.91) |
Weighted average common shares used in computing basic and diluted net loss per share: | 37,047 | 35,393 | 36,639 | 35,038 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (10,583) | $ (10,515) | $ (28,179) | $ (31,733) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | 319 | (21) | 883 | 109 |
Changes in unrealized gain (loss) on investments, net of income taxes of $34 and $56 for the three and nine months ended September 30, 2017 and ($36) and $136 for the three and nine months ended September 30, 2016 | 32 | (108) | 64 | 163 |
Comprehensive loss | $ (10,232) | $ (10,644) | $ (27,232) | $ (31,461) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Changes in unrealized gain (loss) on investments, income taxes | $ 34 | $ (36) | $ 56 | $ 136 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 9 months ended Sep. 30, 2017 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Equity (Deficit) [Member] |
Beginning Balance, Amount at Dec. 31, 2016 | $ 118,700 | $ 36 | $ 365,444 | $ (864) | $ (245,916) |
Beginning Balance, Shares at Dec. 31, 2016 | 35,784 | ||||
Issuance of common stock under stock plans, net of shares withheld for employee taxes | 7,699 | 7,699 | |||
Issuance of common stock under stock plans, net of shares withheld for employee taxes, Shares | 1,398 | ||||
Stock-based compensation | 35,656 | 35,656 | |||
Cumulative adjustment from adoption of stock compensation standard | 452 | (452) | |||
Cumulative translation adjustment | 883 | 883 | |||
Unrealized gain on investments, net of income taxes of $56 | 64 | 64 | |||
Equity component of 2022 Notes (Note 7) | 73,713 | 73,713 | |||
Net loss | (28,179) | (28,179) | |||
Ending Balance, Amount at Sep. 30, 2017 | $ 208,536 | $ 36 | $ 482,964 | $ 83 | $ (274,547) |
Ending Balance, Shares at Sep. 30, 2017 | 37,182 |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Unrealized gain on investments, income taxes | $ 56 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Activities: | ||
Net loss | $ (28,179) | $ (31,733) |
Adjustments to reconcile net loss to net cash and cash equivalents provided by operating activities | ||
Depreciation and amortization | 11,123 | 7,992 |
Stock-based compensation | 34,419 | 23,401 |
Benefit for deferred income taxes | (9,125) | (165) |
Amortization of debt discount and issuance costs | 7,482 | |
(Accretion) amortization of bond discount premium | (747) | 547 |
Noncash rent expense | 4,343 | 2,693 |
Unrealized currency translation | (348) | (146) |
Changes in assets and liabilities, net of acquisition | ||
Accounts receivable | (8,510) | (5,140) |
Prepaid expenses and other assets | (5,363) | (3,386) |
Deferred commission expense | (2,011) | (80) |
Accounts payable | 1,556 | 733 |
Accrued expenses | 6,838 | 3,737 |
Deferred rent | 3,581 | (75) |
Deferred revenue | 20,561 | 18,715 |
Net cash and cash equivalents provided by operating activities | 35,620 | 17,093 |
Investing Activities: | ||
Purchases of investments | (572,636) | (44,323) |
Maturities of investments | 313,060 | 43,388 |
Purchases of property and equipment | (15,089) | (13,350) |
Capitalization of software development costs | (5,306) | (4,173) |
Acquisition of a business and purchase of technology | (9,415) | |
Purchases of strategic investments | (2,800) | |
Restricted cash | (4,587) | |
Net cash and cash equivalents used in investing activities | (296,773) | (18,458) |
Financing Activities: | ||
Employee taxes paid related to the net share settlement of stock-based awards | (3,154) | (1,820) |
Proceeds related to the issuance of common stock under stock plans | 10,409 | 9,145 |
Repayments of capital lease obligations | (787) | (528) |
Proceeds of the issuance of convertible notes, net of issuance costs paid of $10,767 | 389,233 | |
Purchase of note hedge related to convertible notes | (78,920) | |
Proceeds from the issuance of warrants related to convertible notes, net of issuance costs paid of $200 | 58,880 | |
Net cash and cash equivalents provided by financing activities | 375,661 | 6,797 |
Effect of exchange rate changes on cash and cash equivalents | 2,533 | 427 |
Net increase in cash and cash equivalents | 117,041 | 5,859 |
Cash and cash equivalents, beginning of period | 59,702 | 55,580 |
Cash and cash equivalents, end of period | 176,743 | 61,439 |
Supplemental cash flow disclosure: | ||
Cash paid for interest | 201 | 166 |
Cash paid for income taxes | 436 | 623 |
Non-cash investing and financing activities: | ||
Property and equipment acquired under capital lease | 1,053 | 720 |
Capital expenditures incurred but not yet paid | 836 | 1,259 |
Asset retirement obligations | $ 403 | $ 626 |
Consolidated Statements of Ca10
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Statement Of Cash Flows [Abstract] | |
Convertible notes, issuance costs | $ 10,767 |
Warrants, issuance costs | $ 200 |
Organization and Operations
Organization and Operations | 9 Months Ended |
Sep. 30, 2017 | |
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, in Singapore, which commenced operations in October 2015, in Tokyo, Japan, which commenced operations in July 2016, and in Berlin, Germany, which commenced operations in July 2017. 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, 2016, and these consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results of the interim periods presented. All intercompany balances and transactions have been eliminated in consolidation. 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, 2017. 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 16, 2017. 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, except the adoption of updated guidance related to certain aspects of share-based payments to employee described within the Recent Accounting Pronouncements Recent Accounting Pronouncements Recent accounting standards not included below are not expected to have a material impact on our consolidated financial position and results of operations. The Company adopted updated guidance related to 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. In addition, the Company changed its policy election to account for forfeitures as they occur rather than on an estimated basis. The change in the policy election related to forfeitures resulted in the Company reclassifying $452 thousand from additional paid-in capital to accumulative deficit for the net cumulative-effect adjustment in stock compensation expense related to prior periods. In January 2017, the FASB issued guidance, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output to be considered a business. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period, and early adoption is permitted. The Company adopted this standard in the third quarter of 2017 and the adoption of this standard did not have a material impact on the consolidated financial statements. In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance simplifying the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test. Under current guidance, Step 2 of the goodwill impairment test requires entities to calculate the implied fair value of goodwill in the same manner as the amount of goodwill recognized in a business combination by assigning the fair value of a reporting unit to all of the assets and liabilities of the reporting unit. The carrying value in excess of the implied fair value is recognized as goodwill impairment. Under the new standard, goodwill impairment is recognized based on Step 1 of the current guidance, which calculates the carrying value in excess of the reporting unit’s fair value. The new standard is effective beginning in January 2020, with early adoption permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In November 2016, the FASB issued guidance related to the presentation of restricted cash within the statement of cash flows. The guidance requires entities to show the changes in cash, cash equivalents, and restricted cash in the statement of cash flows. Entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. As of September 30, 2017, we had $5.1 million in restricted cash. The new standard is effective beginning in the first quarter of 2018, 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. The standard also provides guidance on the recognition of costs related to obtaining customer contracts. 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 will adopt the standard on January 1, 2018, and currently anticipates adopting the standard using the modified retrospective method, |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2017 | |
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, restricted stock units (“RSUs”), Employee Stock Purchase Plan (“ESPP”), and the Conversion Option of the 2022 Notes (Note 7) 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net loss $ (10,583 ) $ (10,515 ) $ (28,179 ) $ (31,733 ) Weighted-average common shares outstanding — basic 37,047 35,393 36,639 35,038 Dilutive effect of share equivalents resulting from stock options, RSUs, ESPP and the Conversion Option of the 2022 Notes — — — — Weighted-average common shares, outstanding — diluted 37,047 35,393 36,639 35,038 Net loss per share, basic and diluted $ (0.29 ) $ (0.30 ) $ (0.77 ) $ (0.91 ) 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, RSUs, ESPP, and Conversion Option of the 2022 Notes 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 September 30, 2017 2016 (in thousands) Options to purchase common shares 2,398 2,818 RSUs 2,173 2,364 ESPP 3 5 The Company expects to settle the principal amount of the 2022 Notes in cash, and therefore, the Company uses the treasury stock method for calculating any potential dilutive effect of the Conversion Option on diluted net income per share, if applicable. The Conversion Option will have a dilutive impact on net income per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of the 2022 Notes of $94.77 per share. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 and December 31, 2016. September 30, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 26,230 $ — $ — $ 26,230 Commercial paper — 4,767 — 4,767 Corporate bonds — 77,359 — 77,359 U.S. government agency obligations — 8,990 — 8,990 U.S. Treasury securities — 368,422 — 368,422 Restricted cash: Certificates of deposit — 5,106 — 5,106 Other assets: Strategic investments — — 2,800 2,800 Total $ 26,230 $ 464,644 $ 2,800 $ 493,674 December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 32,260 $ — $ — $ 32,260 Commercial paper — 12,439 — 12,439 Corporate bonds — 66,947 — 66,947 U.S. government agency obligations — 10,980 — 10,980 Total $ 32,260 $ 90,366 $ — $ 122,626 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 September 30, 2017 and December 31, 2016, 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. As of September 30, 2017, the fair value of the 2022 Notes (Note 7) was $443.6 million. The fair value was determined on the basis of market prices observable for similar instruments and is considered Level 2 in the fair value 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. Restricted cash is comprised of certificates of deposit related to landlord guarantees for our leased facilities. These restricted cash balances have been excluded from our cash and cash equivalents balance on our consolidated balance sheets. Strategic investments consist of non-controlling equity investments in privately held companies. These investments without readily determinable fair values for which the Company does not have the ability to exercise significant influence are accounted for using the cost method of accounting. Under the cost method of accounting, the non-marketable securities are carried at cost and are adjusted only for other-than-temporary impairments, certain distributions and additional investments. These investments are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company's judgment due to the absence of market prices and inherent lack of liquidity. The estimated fair value is based on quantitative and qualitative factors including, but not limited to, subsequent financing activities by the investee and projected discounted cash flows. Fair value is not estimated for non-marketable equity securities if there are no identified events or changes in circumstances that may have an effect on the fair value of the investment. The following tables summarize the composition of our short- and long-term investments at September 30, 2017 and December 31, 2016. September 30, 2017 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 4,770 $ — $ (3 ) $ 4,767 Corporate bonds 77,460 2 (103 ) 77,359 U.S. government agency obligations 8,999 — (9 ) 8,990 U.S. Treasury securities 259,663 26 (6 ) 259,683 Total $ 350,892 $ 28 $ (121 ) $ 350,799 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 12,446 $ — $ (7 ) $ 12,439 Corporate bonds 67,126 — (179 ) 66,947 U.S. government agency obligations 10,998 — (18 ) 10,980 Total $ 90,570 $ — $ (204 ) $ 90,366 For all of our securities for which the amortized cost basis was greater than the fair value at September 30, 2017, 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 September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value (in thousands) (in thousands) Due within one year $ 315,178 $ 315,130 $ 54,694 $ 54,648 Due after 1 year through 2 years 35,714 35,669 35,876 35,718 Total $ 350,892 $ 350,799 $ 90,570 $ 90,366 |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 4. Property and Equipment, Net Property and equipment, net consists of the following: September 30, 2017 December 31, 2016 (in thousands) Computer equipment and purchased software $ 4,212 $ 3,237 Employee computer equipment 3,256 1,534 Furniture and fixtures 10,860 8,174 Office equipment 2,467 2,326 Leasehold improvements 32,107 23,693 Equipment under capital lease 3,453 2,412 Internal-use software 2,594 1,301 Construction in progress 1,318 322 Total property and equipment 60,267 42,999 Less accumulated depreciation and amortization (19,666 ) (12,798 ) Property and equipment, net $ 40,601 $ 30,201 Depreciation and amortization expense on property and equipment was $2.6 million for the three months ended September 30, 2017 |
Capitalized Software Developmen
Capitalized Software Development Costs | 9 Months Ended |
Sep. 30, 2017 | |
Research And Development [Abstract] | |
Capitalized Software Development Costs | 5. Capitalized Software Development Costs Capitalized software development costs, exclusive of those recorded within property and equipment, consisted of the following: September 30, 2017 December 31, 2016 (in thousands) Gross capitalized software development costs $ 31,433 $ 25,152 Accumulated amortization (22,867 ) (18,629 ) Capitalized software development costs, net $ 8,566 $ 6,523 Capitalized software development costs are amortized on a straight-line basis over their estimated useful life of two to three years. The following table summarizes software development costs capitalized, stock-based compensation included in capitalized software development costs, and amortization of capitalized software development costs. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) (in thousands) Software development costs capitalized $ 2,380 $ 1,988 $ 6,281 $ 4,588 Stock-based compensation included in capitalized software development costs $ 414 $ 326 $ 1,237 $ 832 Amortization of software development costs $ 1,545 $ 1,143 $ 4,391 $ 3,822 |
Business Acquisition and Purcha
Business Acquisition and Purchase of Technology | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Acquisition and Purchase of Technology | 6. Business Acquisition and Purchase of Technology On September 20, 2017, the Company acquired 100% of the equity interests of Motion AI, Inc., a Delaware technology corporation that allows users to scale one-to-one communications. The acquisition strengthens the Company’s position in the one-to-one communication space. Under the terms of the purchase agreement, the Company paid $9.0 million. The excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets and liabilities acquired was recorded as goodwill and is primarily attributable to expanded market opportunities. The goodwill recognized is not deductible for U.S. income tax purposes. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed as part of the business combination were determined based on the replacement costs and present value of expected after-tax cash flows attributable to the business which were derived from management’s estimates and assumptions. The sole intangible asset acquired in the business combination was developed technology and the estimate of fair value of the developed technology was determined using a replacement cost approach and the useful life of the technology was estimated to be two years. The preliminary allocation of the purchase price to the estimated fair value of acquired assets and assumed liabilities is $32 thousand of tangible assets, $6.0 million of acquired technology, and $5.2 million of goodwill. As part of the purchase price allocation, the Company recorded a discrete tax benefit of $2.2 million from a partial release of its deferred tax asset valuation allowance. The net deferred tax liability from this acquisition provided a source of additional income to support the realizability of the Company’s pre-existing deferred tax assets and as a result, the Company released a portion of its valuation allowance. Lastly, there was approximately $4.0 million of potential consideration that was not included in the purchase price allocation as it is not associated with pre-combination services. If earned, this will be recorded in the consolidated statement of operations over a period of approximately three years. The Company has included the operating results of the business combination in its consolidated financial statements since the date of the acquisition. The acquisition did not have a material effect on the revenue or earnings in the consolidated income statement for the reporting periods presented. The pro forma results of the Company as if the acquisition had taken place on the first day of the periods presented were not materially different from the amounts reflected in the accompanying consolidated financial statements. During the third quarter of 2017 the Company also acquired technology for $400 thousand. The estimated useful life of the acquired technology is two years. |
0.25% Convertible Senior Notes,
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant | 7. 0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant In May 2017, the Company issued $350 million aggregate principal amount of 0.25% convertible senior notes due June 1, 2022 (the “Maturity Date”) in a private offering and an additional $50 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the initial purchasers (the “2022 Notes”). The interest rates are fixed at 0.25% per annum and are payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2017. The total net proceeds from the debt offering, after deducting initial purchase discounts and debt issuance costs, were approximately $389.2 million. Each $1,000 principal amount of the 2022 Notes will initially be convertible into 10.5519 shares of the Company’s common stock (the “Conversion Option”), which is equivalent to an initial conversion price of approximately $94.77 per share, subject to adjustment upon the occurrence of specified events. The 2022 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding February 1, 2022, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2017, if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “Measurement Period”) in which the trading price per $1,000 principal amount of notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after February 1, 2022 until the close of business on the second scheduled trading day immediately preceding the Maturity Date, holders may convert their 2022 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. If the Company undergoes a fundamental change prior to the maturity date, holders of the notes may require the Company to repurchase for cash all or any portion of their notes at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events occur prior to the applicable maturity date, the Company will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event in certain circumstances. During the three months ended September 30, 2017, the conditions allowing holders of the 2022 Notes to convert have not been met. The 2022 Notes are therefore not convertible during the three or nine months ended September 30, 2017 and are classified as long-term debt. In accounting for the issuance of the convertible senior notes, the Company separated the 2022 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the Conversion Option was $106 million and was determined by deducting the fair value of the liability component from the par value of the 2022 Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (the "Debt Discount") is amortized to interest expense over the term of the 2022 Notes expense at an effective interest rate of 6.95% over the contractual term of the 2022 Notes. In accounting for the debt issuance costs of $10.8 million related to the 2022 Notes, the Company allocated the total amount incurred to the liability and equity components of the 2022 Notes based on their relative values. Issuance costs attributable to the liability component were $7.9 million and will be amortized to interest expense using the effective interest method over the contractual terms of the 2022 Notes. Issuance costs attributable to the equity component were $2.9 million and are netted with the equity component in stockholders’ equity. The net carrying amount of the liability component of the 2022 Notes is as follows: As of September 30, 2017 As of December 31, 2016 (in thousands) Principal $ 400,000 $ — Unamortized debt discount (99,042 ) — Unamortized issuance costs (7,395 ) — Net carrying amount $ 293,563 $ — The net carrying amount of the equity component of the 2022 Notes is as follows: As of September 30, 2017 As of December 31, 2016 (in thousands) Debt discount for conversion option $ 106,006 — Issuance costs (2,854 ) — Net carrying amount $ 103,152 $ — Interest expense related to the 2022 Notes is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) (in thousands) Contractual interest expense $ 250 $ — $ 390 $ — Amortization of debt discount 4,465 — 6,963 — Amortization of issuance costs 334 — 519 — Total interest expense $ 5,049 $ — $ 7,872 $ — In connection with the offering of the 2022 Notes, the Company entered into convertible note hedge transactions (the “Convertible Note Hedges”) with certain counterparties in which the Company has the option to purchase (subject to adjustment for certain specified events) a total of approximately 4.2 million shares of the Company’s common stock at a price of approximately $94.77 per share. The Convertible Note Hedges will be settled in cash or shares, or any combination thereof, in accordance with the settlement method of the 2022 Notes in excess of the par amount, and are expected to settle upon conversion of the 2022 Notes. The total cost of the Convertible Note Hedges was $78.9 million. In addition, the Company sold warrants to certain bank counterparties whereby the holders of the warrants have the option to purchase initially (subject to adjustment for certain specified events) a total of approximately 4.2 million shares of the Company’s common stock at a price of $115.8 per share. The amount by which the settlement price exceeds the strike price may be settled in shares or cash at the Company’s election. The warrants are expected to settle three business days from each trading day commencing on September 1, 2022 and ending on the 79 th The difference between the Debt Discount and the total cost of the Convertible Note Hedges, and the difference between the calculation of the book and tax allocation of debt issuance costs between the liability and equity components of the 2022 Notes, resulted in a difference between the carrying amount and tax basis of the 2022 Notes. This taxable temporary difference resulted in the Company recognizing a $9.4 million deferred tax liability which was recorded as an adjustment to additional paid-in capital on the consolidated balance sheet. The creation of the deferred tax liability is recognized as a component of equity and represents a source of future taxable income which supports realization of a portion of the income tax benefit associated with the 2017 loss from operations. Therefore, the Company will record a corresponding income tax benefit in its consolidated statement of operations in 2017. In accordance with the guidance for calculating the interim income tax (benefit) provision, $6.9 million of this benefit was recorded as a deferred income tax benefit on the consolidated statement of operations during the nine months ended September 30, 2017. The difference of $2.5 million between the interim benefit from income taxes and the deferred tax liability of $9.4 million was recorded as a liability for accrued income taxes on the consolidated balance sheet. This liability will be reversed and the remaining $2.5 million deferred income tax benefit will be recorded during the remainder of 2017 as additional losses from operations are generated. The net equity impact, included in additional paid-in capital, of the above components of the 2022 Notes is as follows: (in thousands) Conversion Option $ 106,006 Purchase of Convertible Note Hedges (78,920 ) Sales of warrants 59,080 Issuance costs (3,054 ) Deferred tax liability (9,399 ) Total $ 73,713 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. 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, 2016 and related notes thereto contained in the Company’s Annual Report on Form 10-K, except those disclosed below. In February 2017, the Company signed an amendment related to a leased facility in Cambridge, Massachusetts. The amended lease increased the Company’s future commitments by approximately $6.0 million, which will be payable over approximately nine years. In March 2017, the Company signed an agreement for a new 19 year property lease in Dublin, Ireland. The lease contains an option to break the lease after 10 years and 6 months. The lease commenced in August 2017 and the Company will pay an aggregate of approximately $10.9 million over the initial 10 year 6 month lease period. 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 | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | 9. Changes in Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders’ equity, for the nine months ended September 30, 2017. Cumulative Translation Adjustment Unrealized Loss Investments Total (in thousands) Beginning balance at January 1, 2017 $ (589 ) $ (275 ) $ (864 ) Other comprehensive gain before reclassifications 883 64 947 Amounts reclassified from accumulated other comprehensive income — — — Ending balance at September 30, 2017 $ 294 $ (211 ) $ 83 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense | 10. 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) (in thousands) Options $ 1,246 $ 1,372 $ 3,863 $ 4,294 RSUs 10,521 7,045 29,680 18,296 Employee stock purchase plan 343 278 876 811 Total stock-based compensation expense $ 12,110 $ 8,695 $ 34,419 $ 23,401 Effect of stock-based compensation expense on income by line item: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) (in thousands) Cost of revenue, subscription $ 163 $ 139 $ 455 $ 363 Cost of revenue, service 591 438 1,707 1,238 Research and development 3,110 2,341 9,013 6,371 Sales and marketing 5,015 3,473 13,889 9,368 General and administrative 3,231 2,304 9,355 6,061 Total stock-based compensation expense $ 12,110 $ 8,695 $ 34,419 $ 23,401 Capitalized software development costs excluded from stock-based compensation expense is $414 thousand for the three months ended September 30, 2017, $1.2 million for the nine months ended September 30, 2017, $326 thousand for the three months ended September 30, 2016 and $832 thousand for the nine months ended September 30, 2016. |
Segment Information and Geograp
Segment Information and Geographic Data | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | 11. 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Americas $ 72,930 $ 56,727 $ 205,556 $ 158,331 Europe 19,092 11,092 49,041 29,538 Asia Pacific 5,704 2,770 14,474 6,654 Total $ 97,726 $ 70,589 $ 269,071 $ 194,523 Percentage of revenues generated outside of the Americas 25 % 20 % 24 % 19 % Revenue derived from customers outside the United States (international) was approximately 33% of total revenue in the three months ended September 30, 2017, 32% of total revenue in the nine months ended September 30, 2017, 27% of total revenue in the three months ended September 30, 2016, and 27% of total revenue in the nine months ended September 30, 2016. Total long-lived assets by geographical region: As of September 30, 2017 As of December 31, 2016 Americas $ 29,815 $ 23,205 Europe 8,323 4,716 Asia Pacific 2,463 2,280 Total long-lived assets $ 40,601 $ 30,201 Percentage of long-lived assets held outside of the Americas 27 % 23 % |
Organization and Operations (Po
Organization and Operations (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent accounting standards not included below are not expected to have a material impact on our consolidated financial position and results of operations. The Company adopted updated guidance related to 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. In addition, the Company changed its policy election to account for forfeitures as they occur rather than on an estimated basis. The change in the policy election related to forfeitures resulted in the Company reclassifying $452 thousand from additional paid-in capital to accumulative deficit for the net cumulative-effect adjustment in stock compensation expense related to prior periods. In January 2017, the FASB issued guidance, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output to be considered a business. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period, and early adoption is permitted. The Company adopted this standard in the third quarter of 2017 and the adoption of this standard did not have a material impact on the consolidated financial statements. In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance simplifying the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test. Under current guidance, Step 2 of the goodwill impairment test requires entities to calculate the implied fair value of goodwill in the same manner as the amount of goodwill recognized in a business combination by assigning the fair value of a reporting unit to all of the assets and liabilities of the reporting unit. The carrying value in excess of the implied fair value is recognized as goodwill impairment. Under the new standard, goodwill impairment is recognized based on Step 1 of the current guidance, which calculates the carrying value in excess of the reporting unit’s fair value. The new standard is effective beginning in January 2020, with early adoption permitted. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements. In November 2016, the FASB issued guidance related to the presentation of restricted cash within the statement of cash flows. The guidance requires entities to show the changes in cash, cash equivalents, and restricted cash in the statement of cash flows. Entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. As of September 30, 2017, we had $5.1 million in restricted cash. The new standard is effective beginning in the first quarter of 2018, 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. The standard also provides guidance on the recognition of costs related to obtaining customer contracts. 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 will adopt the standard on January 1, 2018, and currently anticipates adopting the standard using the modified retrospective method, |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net loss $ (10,583 ) $ (10,515 ) $ (28,179 ) $ (31,733 ) Weighted-average common shares outstanding — basic 37,047 35,393 36,639 35,038 Dilutive effect of share equivalents resulting from stock options, RSUs, ESPP and the Conversion Option of the 2022 Notes — — — — Weighted-average common shares, outstanding — diluted 37,047 35,393 36,639 35,038 Net loss per share, basic and diluted $ (0.29 ) $ (0.30 ) $ (0.77 ) $ (0.91 ) |
Schedule of Potentially Dilutive Common Stock Equivalents | The following table contains all potentially dilutive common stock equivalents. As of September 30, 2017 2016 (in thousands) Options to purchase common shares 2,398 2,818 RSUs 2,173 2,364 ESPP 3 5 |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 and December 31, 2016. September 30, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 26,230 $ — $ — $ 26,230 Commercial paper — 4,767 — 4,767 Corporate bonds — 77,359 — 77,359 U.S. government agency obligations — 8,990 — 8,990 U.S. Treasury securities — 368,422 — 368,422 Restricted cash: Certificates of deposit — 5,106 — 5,106 Other assets: Strategic investments — — 2,800 2,800 Total $ 26,230 $ 464,644 $ 2,800 $ 493,674 December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 32,260 $ — $ — $ 32,260 Commercial paper — 12,439 — 12,439 Corporate bonds — 66,947 — 66,947 U.S. government agency obligations — 10,980 — 10,980 Total $ 32,260 $ 90,366 $ — $ 122,626 |
Summary of Composition of Short and Long Term Investments | The following tables summarize the composition of our short- and long-term investments at September 30, 2017 and December 31, 2016. September 30, 2017 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 4,770 $ — $ (3 ) $ 4,767 Corporate bonds 77,460 2 (103 ) 77,359 U.S. government agency obligations 8,999 — (9 ) 8,990 U.S. Treasury securities 259,663 26 (6 ) 259,683 Total $ 350,892 $ 28 $ (121 ) $ 350,799 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 12,446 $ — $ (7 ) $ 12,439 Corporate bonds 67,126 — (179 ) 66,947 U.S. government agency obligations 10,998 — (18 ) 10,980 Total $ 90,570 $ — $ (204 ) $ 90,366 |
Summary of Contractual Maturities of Short and Long Term Investments | The contractual maturities of short-term and long-term investments held at September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value (in thousands) (in thousands) Due within one year $ 315,178 $ 315,130 $ 54,694 $ 54,648 Due after 1 year through 2 years 35,714 35,669 35,876 35,718 Total $ 350,892 $ 350,799 $ 90,570 $ 90,366 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following: September 30, 2017 December 31, 2016 (in thousands) Computer equipment and purchased software $ 4,212 $ 3,237 Employee computer equipment 3,256 1,534 Furniture and fixtures 10,860 8,174 Office equipment 2,467 2,326 Leasehold improvements 32,107 23,693 Equipment under capital lease 3,453 2,412 Internal-use software 2,594 1,301 Construction in progress 1,318 322 Total property and equipment 60,267 42,999 Less accumulated depreciation and amortization (19,666 ) (12,798 ) Property and equipment, net $ 40,601 $ 30,201 |
Capitalized Software Developm26
Capitalized Software Development Costs (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Research And Development [Abstract] | |
Summary of Capitalized Software Development Costs, Exclusive of those Recorded within Property and Equipment | Capitalized software development costs, exclusive of those recorded within property and equipment, consisted of the following: September 30, 2017 December 31, 2016 (in thousands) Gross capitalized software development costs $ 31,433 $ 25,152 Accumulated amortization (22,867 ) (18,629 ) Capitalized software development costs, net $ 8,566 $ 6,523 |
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. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) (in thousands) Software development costs capitalized $ 2,380 $ 1,988 $ 6,281 $ 4,588 Stock-based compensation included in capitalized software development costs $ 414 $ 326 $ 1,237 $ 832 Amortization of software development costs $ 1,545 $ 1,143 $ 4,391 $ 3,822 |
0.25% Convertible Senior Note27
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Instrument [Line Items] | |
Schedule of Interest Expense | Interest expense related to the 2022 Notes is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) (in thousands) Contractual interest expense $ 250 $ — $ 390 $ — Amortization of debt discount 4,465 — 6,963 — Amortization of issuance costs 334 — 519 — Total interest expense $ 5,049 $ — $ 7,872 $ — |
Schedule of Net Equity Impact, Included in Additional Paid-in Capital, of the Liability and Equity Components | The net equity impact, included in additional paid-in capital, of the above components of the 2022 Notes is as follows: (in thousands) Conversion Option $ 106,006 Purchase of Convertible Note Hedges (78,920 ) Sales of warrants 59,080 Issuance costs (3,054 ) Deferred tax liability (9,399 ) Total $ 73,713 |
0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | |
Debt Instrument [Line Items] | |
Schedule of Net Carrying Amount of Notes | The net carrying amount of the liability component of the 2022 Notes is as follows: As of September 30, 2017 As of December 31, 2016 (in thousands) Principal $ 400,000 $ — Unamortized debt discount (99,042 ) — Unamortized issuance costs (7,395 ) — Net carrying amount $ 293,563 $ — |
0.25% Convertible Senior Notes Due 2022 as Equity Component [Member] | |
Debt Instrument [Line Items] | |
Schedule of Net Carrying Amount of Notes | The net carrying amount of the equity component of the 2022 Notes is as follows: As of September 30, 2017 As of December 31, 2016 (in thousands) Debt discount for conversion option $ 106,006 — Issuance costs (2,854 ) — Net carrying amount $ 103,152 $ — |
Changes in Accumulated Other 28
Changes in Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 nine months ended September 30, 2017. Cumulative Translation Adjustment Unrealized Loss Investments Total (in thousands) Beginning balance at January 1, 2017 $ (589 ) $ (275 ) $ (864 ) Other comprehensive gain before reclassifications 883 64 947 Amounts reclassified from accumulated other comprehensive income — — — Ending balance at September 30, 2017 $ 294 $ (211 ) $ 83 |
Stock-Based Compensation Expe29
Stock-Based Compensation Expense (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense by Award Type | 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) (in thousands) Options $ 1,246 $ 1,372 $ 3,863 $ 4,294 RSUs 10,521 7,045 29,680 18,296 Employee stock purchase plan 343 278 876 811 Total stock-based compensation expense $ 12,110 $ 8,695 $ 34,419 $ 23,401 |
Effect of Stock-Based Compensation on Income by Line Item | Effect of stock-based compensation expense on income by line item: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) (in thousands) Cost of revenue, subscription $ 163 $ 139 $ 455 $ 363 Cost of revenue, service 591 438 1,707 1,238 Research and development 3,110 2,341 9,013 6,371 Sales and marketing 5,015 3,473 13,889 9,368 General and administrative 3,231 2,304 9,355 6,061 Total stock-based compensation expense $ 12,110 $ 8,695 $ 34,419 $ 23,401 |
Segment Information and Geogr30
Segment Information and Geographic Data (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Revenues by Geographical Region | Revenues by geographical region: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Americas $ 72,930 $ 56,727 $ 205,556 $ 158,331 Europe 19,092 11,092 49,041 29,538 Asia Pacific 5,704 2,770 14,474 6,654 Total $ 97,726 $ 70,589 $ 269,071 $ 194,523 Percentage of revenues generated outside of the Americas 25 % 20 % 24 % 19 % |
Long Lived Assets by Geographical Region | Total long-lived assets by geographical region: As of September 30, 2017 As of December 31, 2016 Americas $ 29,815 $ 23,205 Europe 8,323 4,716 Asia Pacific 2,463 2,280 Total long-lived assets $ 40,601 $ 30,201 Percentage of long-lived assets held outside of the Americas 27 % 23 % |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Increase in valuation allowance | $ 30,400 | |
Reclassification from additional paid in capital to accumulative deficit due to change in policy | 452 | |
Restricted cash | $ 5,106 | $ 321 |
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, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share Basic And Diluted [Abstract] | ||||
Net loss | $ (10,583) | $ (10,515) | $ (28,179) | $ (31,733) |
Weighted-average common shares outstanding — basic | 37,047 | 35,393 | 36,639 | 35,038 |
Weighted-average common shares, outstanding — diluted | 37,047 | 35,393 | 36,639 | 35,038 |
Net loss per share, basic and diluted | $ (0.29) | $ (0.30) | $ (0.77) | $ (0.91) |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Potentially Dilutive Common Stock Equivalents (Detail) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
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 | 2,398 | 2,818 |
RSUs [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 2,173 | 2,364 |
ESPP [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 3 | 5 |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Detail) | Sep. 30, 2017$ / shares |
0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | |
Earnings Per Share Basic [Line Items] | |
Common stock conversion price | $ 94.77 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | $ 350,799 | $ 90,366 |
Fair value of financial assets | 493,674 | 122,626 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 26,230 | 32,260 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 464,644 | 90,366 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 2,800 | |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of cash and cash equivalents | 26,230 | 32,260 |
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 | 26,230 | 32,260 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of cash and cash equivalents | 4,767 | 12,439 |
Fair value of short and long term investments | 4,767 | 12,439 |
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 | 4,767 | 12,439 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 77,359 | 66,947 |
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 | 77,359 | 66,947 |
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 | 8,990 | 10,980 |
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 | 8,990 | $ 10,980 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 368,422 | |
US Treasury Securities [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 | 368,422 | |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of restricted cash | 5,106 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of restricted cash | 5,106 | |
Strategic Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of other assets | 2,800 | |
Strategic Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of other assets | $ 2,800 |
Fair Value of Financial Instr36
Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions | Sep. 30, 2017USD ($) |
2022 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Fair value of notes | $ 443.6 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments - Summary of Composition of Short and Long Term Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 350,892 | $ 90,570 |
Unrealized Gains | 28 | |
Unrealized Losses | (121) | (204) |
Aggregate Fair Value | 350,799 | 90,366 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,770 | 12,446 |
Unrealized Losses | (3) | (7) |
Aggregate Fair Value | 4,767 | 12,439 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 77,460 | 67,126 |
Unrealized Gains | 2 | |
Unrealized Losses | (103) | (179) |
Aggregate Fair Value | 77,359 | 66,947 |
US Government Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,999 | 10,998 |
Unrealized Losses | (9) | (18) |
Aggregate Fair Value | 8,990 | $ 10,980 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 259,663 | |
Unrealized Gains | 26 | |
Unrealized Losses | (6) | |
Aggregate Fair Value | $ 259,683 |
Fair Value of Financial Instr38
Fair Value of Financial Instruments - Summary of Contractual Maturities of Short and Long Term Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Amortized Cost Basis, Due within one year | $ 315,178 | $ 54,694 |
Amortized Cost Basis, Due after 1 year through 2 years | 35,714 | 35,876 |
Amortized Cost | 350,892 | 90,570 |
Aggregate Fair Value, Due within one year | 315,130 | 54,648 |
Aggregate Fair Value, Due after 1 year through 2 years | 35,669 | 35,718 |
Aggregate Fair Value, Total | $ 350,799 | $ 90,366 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 60,267 | $ 42,999 |
Less accumulated depreciation and amortization | (19,666) | (12,798) |
Property and equipment, net | 40,601 | 30,201 |
Computer Equipment and Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,212 | 3,237 |
Employee Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,256 | 1,534 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 10,860 | 8,174 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,467 | 2,326 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 32,107 | 23,693 |
Equipment under Capital Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,453 | 2,412 |
Internal-Use Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,594 | 1,301 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,318 | $ 322 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization | $ 2.6 | $ 1.6 | $ 6.7 | $ 4.1 |
Summary of Capitalized Software
Summary of Capitalized Software Development Costs, Exclusive of those Recorded within Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Capitalized Computer Software Net [Abstract] | ||
Gross capitalized software development costs | $ 31,433 | $ 25,152 |
Accumulated amortization | (22,867) | (18,629) |
Capitalized software development costs, net | $ 8,566 | $ 6,523 |
Capitalized Software Developm42
Capitalized Software Development Costs - Additional Information (Detail) - Capitalized Software Development Costs [Member] | 9 Months Ended |
Sep. 30, 2017 | |
Minimum [Member] | |
Capitalized Computer Software [Line Items] | |
Property and equipment, estimated useful life | 2 years |
Maximum [Member] | |
Capitalized Computer Software [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Capitalized Software Developm43
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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Capitalized Computer Software [Line Items] | ||||
Software development costs capitalized | $ 2,380 | $ 1,988 | $ 6,281 | $ 4,588 |
Stock-based compensation included in capitalized software development costs | 414 | 326 | 1,237 | 832 |
Amortization of software development costs | $ 1,545 | $ 1,143 | $ 4,391 | $ 3,822 |
Business Acquisition and Purc44
Business Acquisition and Purchase of Technology - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 20, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Cash consideration paid | $ 9,415 | |||
Goodwill | $ 14,950 | 14,950 | $ 9,773 | |
Discrete tax benefit from release of deferred tax asset valuation allowance | $ 2,200 | |||
Acquired Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 2 years | |||
Intangible assets acquired | $ 400 | $ 400 | ||
Motion AI, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition effective date | Sep. 20, 2017 | |||
Business acquisition, description of acquired entity | On September 20, 2017, the Company acquired 100% of the equity interests of Motion AI, Inc., a Delaware technology corporation that allows users to scale one-to-one communications. The acquisition strengthens the Company’s position in the one-to-one communication space. Under the terms of the purchase agreement, the Company paid $9.0 million. The excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets and liabilities acquired was recorded as goodwill and is primarily attributable to expanded market opportunities. | |||
Percentage of equity interests acquired | 100.00% | |||
Cash consideration paid | $ 9,000 | |||
Business combination, assets acquired and liabilities assumed, tangible assets | 32 | |||
Goodwill | 5,200 | |||
Business combination, potential consideration not included in purchase price allocation | $ 4,000 | |||
Potential consideration recording period, if earned | 3 years | |||
Motion AI, Inc. [Member] | Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 2 years | |||
Motion AI, Inc. [Member] | Acquired Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets acquired | $ 6,000 |
0.25% Convertible Senior Note45
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Additional Information (Detail) $ / shares in Units, shares in Millions | 1 Months Ended | 9 Months Ended | |
May 31, 2017USD ($)d$ / shares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Net proceeds from the debt offering | $ 389,233,000 | ||
Sales of warrants | 58,880,000 | ||
Warrants, issuance costs | 200,000 | ||
Deferred income tax benefit | $ 9,125,000 | $ 165,000 | |
0.25% Convertible Senior Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 0.25% | ||
Debt instrument, maturity date | Jun. 1, 2022 | ||
Debt instrument, payment terms | The interest rates are fixed at 0.25% per annum and are payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2017. | ||
Net proceeds from the debt offering | $ 389,200,000 | ||
Principal amount of each convertible note | $ 1,000 | ||
Debt instrument, conversion ratio | 10.5519 | ||
Debt instrument, conversion price per share | $ / shares | $ 94.77 | ||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||
Debt Instrument, Redemption, Description | Repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. | ||
Carrying amount of equity component | $ 106,000,000 | ||
Debt instrument, effective interest rate | 6.95% | ||
Debt issuance costs | $ 10,800,000 | ||
Number of common shares to be repurchased under convertible note hedge transactions with certain counterparties | shares | 4.2 | ||
Hedging option strike price per common stock | $ / shares | $ 94.77 | ||
Cost of convertible note hedge transactions | $ 78,900,000 | ||
Warrants expected to settle, description | The warrants are expected to settle three business days from each trading day commencing on September 1, 2022 and ending on the 79th trading day thereafter. | ||
Settlement period of warrants excess price over strike price | 3 days | ||
Warrants expected to settle, commencement date | Sep. 1, 2022 | ||
Sales of warrants | $ 58,900,000 | ||
Warrants, issuance costs | 200,000 | ||
Convertible notes hedge and warrant transactions cost net | 20,000,000 | ||
Deferred tax liability adjustment to additional paid-in capital | 9,400,000 | ||
Deferred income tax benefit | 6,900,000 | ||
Liability for accrued income taxes | $ 2,500,000 | ||
0.25% Convertible Senior Notes Due 2022 [Member] | Common Stock [Member] | |||
Debt Instrument [Line Items] | |||
Warrants holder’s option to purchase number of shares of company’s common stock | shares | 4.2 | ||
Warrants exercise price per share | $ / shares | $ 115.8 | ||
0.25% Convertible Senior Notes Due 2022 [Member] | Liability Component [Member] | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | 7,900,000 | ||
0.25% Convertible Senior Notes Due 2022 [Member] | Equity Component [Member] | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 2,900,000 | ||
0.25% Convertible Senior Notes Due 2022 [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, conversion price per share | $ / shares | 94.77 | ||
Percentage of closing price to trigger debt conversion | 130.00% | ||
0.25% Convertible Senior Notes Due 2022 [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, conversion price per share | $ / shares | $ 115.83 | ||
Percentage of closing price to trigger debt conversion | 98.00% | ||
0.25% Convertible Senior Notes Due 2022 [Member] | Scenario 1 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, convertible, threshold trading days | d | 20 | ||
Debt instrument, convertible, threshold consecutive trading days | d | 30 | ||
0.25% Convertible Senior Notes Due 2022 [Member] | Scenario Two [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, convertible, threshold trading days | d | 5 | ||
Debt instrument, convertible, threshold consecutive trading days | d | 5 | ||
0.25% Convertible Senior Notes Due 2022 [Member] | Private Offering [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of long term debt | $ 350,000,000 | ||
0.25% Convertible Senior Notes Due 2022 [Member] | Over-Allotment Options [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of long term debt | $ 50,000,000 |
0.25% Convertible Senior Note46
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Schedule of Net Carrying Amount of Liability Component (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | |
Net carrying amount | $ 293,563 |
0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | |
Debt Instrument [Line Items] | |
Principal | 400,000 |
Unamortized debt discount | (99,042) |
Unamortized issuance costs | (7,395) |
Net carrying amount | $ 293,563 |
0.25% Convertible Senior Note47
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Schedule of Net Carrying Amount of Equity Component (Detail) - 0.25% Convertible Senior Notes Due 2022 as Equity Component [Member] $ in Thousands | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | |
Debt discount for conversion option | $ 106,006 |
Issuance costs | (2,854) |
Net carrying amount | $ 103,152 |
0.25% Convertible Senior Note48
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Schedule of Interest Expense (Detail) - 0.25% Convertible Senior Notes Due 2022 [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 250 | $ 390 |
Amortization of debt discount | 4,465 | 6,963 |
Amortization of issuance costs | 334 | 519 |
Total interest expense | $ 5,049 | $ 7,872 |
0.25% Convertible Senior Note49
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Schedule of Net Equity Impact, Included in Additional Paid-in Capital, of the Liability and Equity Components (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Total | $ 73,713 |
0.25% Convertible Senior Notes Due 2022 as Net Equity Impact [Member] | |
Debt Instrument [Line Items] | |
Conversion Option | 106,006 |
Purchase of Convertible Note Hedges | (78,920) |
Sales of warrants | 59,080 |
Issuance costs | (3,054) |
Deferred tax liability | (9,399) |
Total | $ 73,713 |
Commitments and Contingencies-
Commitments and Contingencies- Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | |
Mar. 31, 2017 | Feb. 28, 2017 | |
Operating And Capital Leased Assets [Line Items] | ||
Increase in future lease commitments | $ 6 | |
Purchase commitment, payable period | 9 years | |
Lease Commencement, August 2017 [Member] | ||
Operating And Capital Leased Assets [Line Items] | ||
Lease agreement period | 19 years | |
Renewal term | 10 years 6 months | |
Lease commencement date | 2017-08 | |
Rent payable | $ 10.9 |
Changes in Accumulated Other 51
Changes in Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | $ 118,700 |
Other comprehensive gain before reclassifications | 947 |
Ending Balance, Amount | 208,536 |
Cumulative Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | (589) |
Other comprehensive gain before reclassifications | 883 |
Ending Balance, Amount | 294 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | (275) |
Other comprehensive gain before reclassifications | 64 |
Ending Balance, Amount | (211) |
Accumulated Other Comprehensive Loss [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | (864) |
Ending Balance, Amount | $ 83 |
Stock-Based Compensation Expe52
Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense by Award Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 12,110 | $ 8,695 | $ 34,419 | $ 23,401 |
Common Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 1,246 | 1,372 | 3,863 | 4,294 |
RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 10,521 | 7,045 | 29,680 | 18,296 |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 343 | $ 278 | $ 876 | $ 811 |
Stock-Based Compensation Expe53
Stock-Based Compensation Expense - Effect of Stock-Based Compensation on Income by Line Item (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 12,110 | $ 8,695 | $ 34,419 | $ 23,401 |
Cost of Revenue, Subscription [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 163 | 139 | 455 | 363 |
Cost of Revenue, Service [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 591 | 438 | 1,707 | 1,238 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 3,110 | 2,341 | 9,013 | 6,371 |
Sales and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 5,015 | 3,473 | 13,889 | 9,368 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 3,231 | $ 2,304 | $ 9,355 | $ 6,061 |
Stock-Based Compensation Expe54
Stock-Based Compensation Expense - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
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 | $ 414 | $ 326 | $ 1,237 | $ 832 |
Segment Information and Geogr55
Segment Information and Geographic Data - Additional Information (Detail) - Segment | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Number of operating segment | 1 | |||
Revenue [Member] | Outside Of United States [Member] | Geographic Concentration Risk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 33.00% | 27.00% | 32.00% | 27.00% |
Segment Information and Geogr56
Segment Information and Geographic Data - Revenues by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total Revenues | $ 97,726 | $ 70,589 | $ 269,071 | $ 194,523 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 72,930 | 56,727 | 205,556 | 158,331 |
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 19,092 | 11,092 | 49,041 | 29,538 |
Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | $ 5,704 | $ 2,770 | $ 14,474 | $ 6,654 |
Revenue [Member] | Outside Of Americas [Member] | Geographic Concentration Risk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of revenues generated outside of the Americas | 25.00% | 20.00% | 24.00% | 19.00% |
Segment Information and Geogr57
Segment Information and Geographic Data - Long Lived Assets by Geographical Region (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 40,601 | $ 30,201 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 29,815 | 23,205 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 8,323 | 4,716 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 2,463 | $ 2,280 |
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 | 27.00% | 23.00% |