Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 39,232,269 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 96,122 | $ 87,680 |
Short-term investments | 465,166 | 416,663 |
Accounts receivable — net of allowance for doubtful accounts of $1,389 and $638 at September 30, 2018 and December 31, 2017, respectively | 63,107 | 60,676 |
Deferred commission expense | 18,759 | 13,343 |
Restricted cash | 5,175 | 4,757 |
Prepaid expenses and other current assets | 18,132 | 19,382 |
Total current assets | 666,461 | 602,501 |
Long-term investments | 13,234 | 31,394 |
Property and equipment, net | 51,913 | 43,294 |
Capitalized software development costs, net | 12,539 | 8,760 |
Deferred commission expense, net of current portion | 15,176 | |
Other assets | 5,656 | 4,964 |
Intangible assets, net | 5,719 | 6,312 |
Goodwill | 14,950 | 14,950 |
Total assets | 785,648 | 712,175 |
Current liabilities: | ||
Accounts payable | 8,817 | 4,657 |
Accrued compensation costs | 19,182 | 16,329 |
Other accrued expenses | 22,781 | 20,430 |
Deferred revenue | 160,509 | 136,880 |
Total current liabilities | 211,289 | 178,296 |
Deferred rent, net of current portion | 24,549 | 18,868 |
Deferred revenue, net of current portion | 2,132 | 2,277 |
Other long-term liabilities | 4,715 | 3,927 |
Convertible senior notes | 313,550 | 298,447 |
Total liabilities | 556,235 | 501,815 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock | 40 | 38 |
Additional paid-in capital | 563,034 | 496,461 |
Accumulated other comprehensive loss | (769) | (57) |
Accumulated deficit | (332,892) | (286,082) |
Total stockholders’ equity | 229,413 | 210,360 |
Total liabilities and stockholders’ equity | $ 785,648 | $ 712,175 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 1,389 | $ 638 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Total revenue | $ 131,826 | $ 97,726 | $ 368,958 | $ 269,071 |
Cost of revenues: | ||||
Total cost of revenues | 25,765 | 19,010 | 72,993 | 54,673 |
Gross profit | 106,061 | 78,716 | 295,965 | 214,398 |
Operating expenses: | ||||
Research and development | 30,761 | 18,828 | 85,598 | 48,087 |
Sales and marketing | 71,293 | 57,904 | 196,484 | 155,284 |
General and administrative | 19,057 | 14,110 | 54,309 | 41,730 |
Total operating expenses | 121,111 | 90,842 | 336,391 | 245,101 |
Loss from operations | (15,050) | (12,126) | (40,426) | (30,703) |
Other expense: | ||||
Interest income | 2,416 | 1,274 | 6,332 | 2,311 |
Interest expense | (5,393) | (5,063) | (15,893) | (7,947) |
Other expense | (277) | (26) | (1,087) | (251) |
Total other expense | (3,254) | (3,815) | (10,648) | (5,887) |
Loss before income tax (expense) benefit | (18,304) | (15,941) | (51,074) | (36,590) |
Income tax (expense) benefit | (359) | 5,358 | (1,262) | 8,411 |
Net loss | $ (18,663) | $ (10,583) | $ (52,336) | $ (28,179) |
Net loss per share, basic and diluted | $ (0.48) | $ (0.29) | $ (1.37) | $ (0.77) |
Weighted average common shares used in computing basic and diluted net loss per share: | 38,762 | 37,047 | 38,319 | 36,639 |
Subscription [Member] | ||||
Revenues: | ||||
Total revenue | $ 125,478 | $ 93,164 | $ 350,646 | $ 255,030 |
Cost of revenues: | ||||
Total cost of revenues | 17,777 | 12,933 | 49,976 | 36,834 |
Professional Services and Other [Member] | ||||
Revenues: | ||||
Total revenue | 6,348 | 4,562 | 18,312 | 14,041 |
Cost of revenues: | ||||
Total cost of revenues | $ 7,988 | $ 6,077 | $ 23,017 | $ 17,839 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (18,663) | $ (10,583) | $ (52,336) | $ (28,179) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (127) | 319 | (548) | 883 |
Changes in unrealized gain (loss) on investments, net of income taxes of $0 for the three and nine months ended September 30, 2018 and $34 and $56 for the three and nine months ended September 30, 2017, respectively | 72 | 32 | (164) | 64 |
Comprehensive loss | $ (18,718) | $ (10,232) | $ (53,048) | $ (27,232) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Changes in unrealized gain (loss) on investments, income taxes | $ 0 | $ 34 | $ 0 | $ 56 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Activities: | ||
Net loss | $ (52,336) | $ (28,179) |
Adjustments to reconcile net loss to net cash and cash equivalents provided by operating activities | ||
Depreciation and amortization | 16,539 | 11,123 |
Stock-based compensation | 55,334 | 34,419 |
Provision (benefit) for deferred income taxes | 43 | (9,125) |
Amortization of debt discount and issuance costs | 15,103 | 7,482 |
Accretion of bond discount | (4,517) | (747) |
Noncash rent expense | 1,972 | 4,343 |
Unrealized currency translation | 215 | (348) |
Changes in assets and liabilities, net of acquisition | ||
Accounts receivable | (3,266) | (8,510) |
Prepaid expenses and other assets | 823 | (5,363) |
Deferred commission expense | (15,887) | (2,011) |
Accounts payable | 4,262 | 1,556 |
Accrued expenses | 3,755 | 6,838 |
Deferred rent | 3,987 | 3,581 |
Deferred revenue | 25,713 | 20,561 |
Net cash and cash equivalents provided by operating activities | 51,740 | 35,620 |
Investing Activities: | ||
Purchases of investments | (524,838) | (572,636) |
Maturities of investments | 498,850 | 313,060 |
Purchases of property and equipment | (16,688) | (15,089) |
Capitalization of software development costs | (8,726) | (5,306) |
Acquisition of a business and purchase of technology | (9,415) | |
Purchases of strategic investments | (300) | (2,800) |
Net cash and cash equivalents used in investing activities | (51,702) | (292,186) |
Financing Activities: | ||
Employee taxes paid related to the net share settlement of stock-based awards | (5,933) | (3,154) |
Proceeds related to the issuance of common stock under stock plans | 16,769 | 10,409 |
Repayments of capital lease obligations | (592) | (787) |
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 of $200 | 58,880 | |
Net cash and cash equivalents provided by financing activities | 10,244 | 375,661 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (1,319) | 2,569 |
Net increase in cash, cash equivalents and restricted cash | 8,963 | 121,664 |
Cash, cash equivalents and restricted cash, beginning of period | 92,784 | 60,185 |
Cash, cash equivalents and restricted cash, end of period | 101,747 | 181,849 |
Supplemental cash flow disclosure: | ||
Cash paid for interest | 527 | 201 |
Cash paid for income taxes | 1,016 | 436 |
Non-cash investing and financing activities: | ||
Property and equipment acquired under capital lease | 1,053 | |
Capital expenditures incurred but not yet paid | 2,018 | 836 |
Asset retirement obligations | $ 347 | $ 403 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flow (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Convertible notes, issuance costs | $ 10,767 |
Warrant [Member] | |
Offering and issuance costs paid | $ 200 |
Organization and Operations
Organization and Operations | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization and Operations | 1. Organization and Operations HubSpot, Inc. (the “Company”) provides a cloud-based inbound marketing, sales and customer service 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, sales productivity, CRM, analytics, reporting, helpdesk, chat, and knowledge base. 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, 2017, 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, 2018. 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 13, 2018. 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 revenue recognition and costs to obtain a contract with a customer as described within Note 2 of these consolidated financial statements. 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. In June 2018, the Financial Accounting Standards Board (“FASB”) issued guidance to expand the guidance for stock-based compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company does not believe the adoption of this guidance will have a material impact on the consolidated financial statements. In January 2017, the 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. The Company does not believe the adoption of this guidance will have a material impact on the 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. The Company adopted the updated guidance as of January 1, 2018. As a result of adopting this guidance cash and cash equivalents used in investing activities increased by $521 thousand and net increase in cash, cash equivalents, and restricted cash also increased by $521 thousand for the nine months ended September 30, 2018. Cash and cash equivalents used in investing activities increased by $4.6 million and net increase in cash, cash equivalents, and restricted cash increased by $4.6 million for the nine months ended September 30, 2017 in the consolidated statements of cash flows. 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 will adopt the standard on January 1, 2019. The Company has established a team that is continuing to assess the potential impacts of the standard on its consolidated financial statements and footnote disclosures. The Company currently believes the most significant changes will be related to the recognition of right-of-use assets and lease liabilities on its consolidated balance sheet for operating leases, which will increase total assets and total liabilities reported relative to such amounts prior to adoption. The guidance is required to be adopted using a modified retrospective approach. Upon adoption, the Company also expects to elect the transition relief package, permitted within the new standard, in which the Company will not reassess the classification of existing leases, whether any expired or existing contracts contain a lease, and if existing leases have any initial direct costs. The In January 2016, the FASB issued guidance that requires entities to measure equity instruments at fair value and recognize changes in fair value within the statement of operations. The Company adopted the updated guidance as of January 1, 2018. The guidance provides for electing a measurement alternative or defaulting to the fair value option for equity investments that do not have readily determinable fair values. The Company elected the measurement alternative for its equity investments in privately held companies, which are included in other assets in the accompanying consolidated balance sheets. These investments are measured at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, which will be recorded within the statement of operations. The adoption of this guidance did not have a material impact 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. The Company adopted the updated guidance as of January 1, 2018 using the modified retrospective transition method. See Note 2 of these consolidated financial statements for further details. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 2. Revenues Adoption of Updated Revenue Guidance On January 1, 2018, the Company adopted new revenue guidance using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after December 31, 2017 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with historic revenue guidance. The Company applied the new standard using practical expedients where: • the measurement of the transaction price excludes all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer; • the new revenue guidance has been applied to portfolios of contracts with similar characteristics; • the modified retrospective approach has been applied only to contracts that are not completed contracts at the date of initial adoption; and • the value of unsatisfied performance obligations for contracts with an original expected length of one year or less has not been disclosed. The impact of applying the new guidance in 2018 versus the prior guidance resulted in a change to the period over which sales commissions are amortized to incorporate an estimated customer life and the amortization period over which internally developed new features and increased functionality for our software platform is recorded, in addition to the initial contract period. This resulted in a longer amortization period for deferred commission expense, which reduces expense compared to the application of the prior guidance. There was also a change to the scope of sales commissions that are capitalized based on the definition of incremental costs of obtaining a contract. This increased the amount of commissions cost that was capitalized compared to the application of the prior guidance. In addition, there was a change in the timing of revenue recognition for certain sales contracts where free or discounted services are bundled with subscription services due to the removal of the limitation on recording contingent revenue that existed in the prior guidance. Removing the limitation of recording contingent revenue resulted in an acceleration of revenue recognition on these contracts compared to the application of the prior guidance. Th e Company recorded a net increase to opening retained earnings of $5.5 million as of January 1, 2018 due to the cumulative impact of adopting the new revenue guidance, with the impact primarily related to the recognition of costs associated with obtaining customer contracts. The Company had previously recorded a net increase of $5.8 million to opening retained earnings as of January 1, 2018 to reflect the adoption of the new revenue guidance. During the three months ended June 30, 2018, the Company recorded an immaterial $274 thousand adjustment to the initial opening retained earnings adjustment to account for the deferred tax impact of the adoption of the new revenue standard. The resulting impact to the consolidated statements of operations and comprehensive loss of applying the new guidance in the three months ended September 30, 2018 versus the prior guidance was a decrease to subscription revenue of $224 thousand, an increase to professional services and other revenue of $125 thousand, a decrease to total revenues of $99 thousand, and a decrease to selling and marketing expense and total operating expenses of $4.1 million for the three months ended September 30, 2018. The resulting impact to loss from operations, loss before income tax (expense) benefit, net loss and comprehensive loss was $4.0 million. The resulting impact on basic earnings per share was $0.10. The resulting impact to the consolidated statements of operations and comprehensive loss of applying the new guidance in the nine months ended September 30, 2018 versus the prior guidance was a decrease to subscription revenue of $580 thousand, an increase to professional services and other revenue of $372 thousand, a decrease to total revenues of $208 thousand, and a decrease to selling and marketing expense and total operating expenses of $11.5 million for the nine months ended September 30, 2018. The resulting impact to loss from operations, loss before income tax (expense) benefit, net loss and comprehensive loss was $11.3 million. The resulting impact on basic earnings per share was $0.30. The resulting impact to the consolidated balance sheet of applying the new guidance in 2018 versus the prior guidance was a increase to short-term deferred commissions and total current assets of $1.8 million, an increase to long-term deferred commissions of $15.2 million, a decrease to other assets of $255 thousand, an increase in total assets of $16.7 million, a decrease to short-term deferred revenue, and total current liabilities of $122 thousand, an increase to other liabilities of $19 thousand, a decrease to total liabilities of $103 thousand, a decrease to accumulated deficit and increase to total stockholders’ equity of $16.8 million, and an increase to total liabilities and stockholders’ equity of $16.7 million. There was no impact to total cash flow from operations of applying the new guidance in 2018 versus the prior guidance because the decrease in net loss of $11.3 million, increase in the change in deferred commission expense of $11.5 million and increase in the change in deferred revenue of $208 thousand net to $0 within cash flows from operations. Revenue Recognition The Company generates revenue from arrangements with multiple performance obligations, which typically include subscriptions to its online software products and professional services which include on-boarding and training services. The Company’s customers do not have the right to take possession of the online software products. The Company recognizes revenue from contracts with customers using a five-step model, which is described below: • Identify the customer contract; • Identify performance obligations that are distinct; • Determine the transaction price; • Allocate the transaction price to the distinct performance obligations; and • Recognize revenue as the performance obligations are satisfied. Identify the customer contract A customer contract is generally identified when the Company and a customer have executed an arrangement that calls for the Company to grant access to its online software products and provide professional services in exchange for consideration from the customer. Identify performance obligations that are distinct A performance obligation is a promise to provide a distinct good or service or a series of distinct goods or services. A good or service that is promised to a customer is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and a company’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. The Company has determined that subscriptions for its online software products are distinct because, once a customer has access to the online software product that it purchased, the online software product is fully functional and does not require any additional development, modification, or customization. Professional services sold are distinct because the customer benefits from the on-boarding and training to make better use of the online software products it purchased. Determine the transaction price The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer, excluding sales taxes that are collected on behalf of government agencies. The Company estimates any variable consideration to which it will be entitled at contract inception, and reassesses at each reporting date, when determining the transaction price. The Company does not include variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when any uncertainty associated with the variable consideration is resolved. Allocate the transaction price to the distinct performance obligations The transaction price is allocated to each performance obligation based on the relative standalone selling prices (“SSP”) of the goods or services being provided to the customer. The Company determines the SSP of its goods and services based upon the average sales prices for each type of online software product and professional services sold. In instances where there are not sufficient data points, or the selling prices for a particular online software product or professional service are disparate, the Company estimates the SSP using other observable inputs, such as similar products or services. Recognize revenue as the performance obligations are satisfied Revenues are recognized when or as control of the promised goods or services is transferred to customers. Revenue from Disaggregation of Revenue The Company provides disaggregation of revenue based on geographic region (Note 14) and based on the subscription versus Deferred Revenue and Deferred Commission Expense Amounts that have been invoiced are recorded in accounts receivable and deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Deferred revenue represents amounts billed for which revenue has not yet been recognized. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue, and the remaining portion is recorded as long-term deferred revenue. Deferred revenue during the nine months ended September 30, 2018 increased by $23.5 million resulting from $392.5 million of additional invoicing and was offset by revenue recognized of $369.0 million during the same period. $83.2 million of revenue was recognized during the three month period ended September 30, 2018 that was included in deferred revenue at the beginning of the period. $128.4 million of revenue was recognized during the nine month period ended September 30, 2018 that was included in deferred revenue at the beginning of the period. As of September 30, 2018, approximately $89.4 million of revenue is expected to be recognized from remaining performance obligations for contracts with original performance obligations that exceed one year. The Company expects to recognize revenue on approximately 94% of these remaining performance obligations over the next 24 months, with the balance recognized thereafter. The incremental direct costs of obtaining a contract, which primarily consist of sales commissions paid for new subscription contracts, are deferred and amortized on a straight-line basis over a period of approximately two to three years. The two to three-year period has been determined by taking into consideration the type of product sold, the commitment term of the customer contract, the nature of the Company’s technology development life-cycle, and an estimated customer relationship period. Sales commissions for upgrade contracts are deferred and amortized on a straight-line basis over the remaining estimated customer relationship period of the related customer. Deferred commission expense that will be recorded as expense during the succeeding 12-month period is recorded as current deferred commission expense, and the remaining portion is recorded as long-term deferred commission expense. Partner Commissions The Company pays its partners a commission based on the online software product sales price for sales to end-customers. The classification of the commission paid on the Company’s consolidated statements of operations depends on who purchases the online software product. In instances where the end-customer purchases the online software product from the Company, the Company is the principal and it records the commission paid to the partner as sales and marketing expense. When the partner purchases the online software product directly from the Company, the Company is the agent and it nets the consideration paid to the partner against the associated revenue it recognizes, as in these instances the Company’s customer is the partner and the Company’s remaining obligation is to the partner. The Company does not believe that it receives a tangible benefit from the commission payment to the partner. |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 3. 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”), common stock warrants, and the Conversion Option of the 2022 Notes 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, 2018 2017 2018 2017 Net loss $ (18,663 ) $ (10,583 ) $ (52,336 ) $ (28,179 ) Weighted-average common shares outstanding — basic 38,762 37,047 38,319 36,639 Dilutive effect of share equivalents resulting from stock options, RSUs, ESPP, common stock warrants and the Conversion Option of the 2022 Notes — — — — Weighted-average common shares, outstanding — diluted 38,762 37,047 38,319 36,639 Net loss per share, basic and diluted $ (0.48 ) $ (0.29 ) $ (1.37 ) $ (0.77 ) 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, common stock warrants, 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, 2018 2017 (in thousands) Options to purchase common shares 1,905 2,398 RSUs 2,020 2,173 Conversion option of the 2022 Notes 1,311 — Common stock warrants 664 — ESPP 29 3 The Company expects to settle the principal amount of the 2022 Notes (Note 9) 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. As of November 6, 2018, no holders have converted or indicated their intention to convert the 2022 Notes. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 4. 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, 2018 and December 31, 2017: September 30, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 4,353 $ — $ — $ 4,353 Commercial paper — 8,191 — 8,191 Corporate bonds — 84,188 — 84,188 U.S. Treasury securities — 386,021 — 386,021 Restricted cash: Certificates of deposit — 5,625 — 5,625 Total $ 4,353 $ 484,025 $ — $ 488,378 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 12,845 $ — $ — $ 12,845 Commercial paper — 5,867 — 5,867 Corporate bonds — 81,668 — 81,668 U.S. government agency obligations — 3,987 — 3,987 U.S. Treasury securities — 356,535 — 356,535 Restricted cash: Certificates of deposit — 5,105 — 5,105 Total $ 12,845 $ 453,162 $ — $ 466,007 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, 2018 and December 31, 2017, 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, 2018, the fair value of the 2022 Notes was $658.0 million. The fair value was determined based on the quoted price of the 2022 Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 within the fair value hierarchy. 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. Strategic investments consist of non-controlling equity investments in privately held companies. The Company elected the measurement alternative for these investments without readily determinable fair values and for which the Company does not have the ability to exercise significant influence. These investments are accounted for under the cost method of accounting. Under the cost method of accounting, the non-marketable equity securities are carried at cost less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, which is recorded within the statement of operations. The Company holds $3.8 million of strategic investments without readily determinable fair values at September 30, 2018 and $3.5 million of strategic investments without readily determinable fair values at December 31, 2017. These investments are included in other assets on the consolidated balance sheets. There have been no adjustments to the carrying value of strategic investments resulting from impairments or observable price changes. The following tables summarize the composition of our short- and long-term investments at September 30, 2018 and December 31, 2017. September 30, 2018 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 8,202 $ — $ (11 ) $ 8,191 Corporate bonds 84,472 — (284 ) $ 84,188 U.S. Treasury securities 386,325 — (304 ) 386,021 Total $ 478,999 $ — $ (599 ) $ 478,400 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 5,874 $ — $ (7 ) $ 5,867 Corporate bonds 81,947 — (279 ) 81,668 U.S. government agency obligations 4,000 — (13 ) 3,987 U.S. Treasury securities 356,671 8 (144 ) 356,535 Total $ 448,492 $ 8 $ (443 ) $ 448,057 For all of our securities for which the amortized cost basis was greater than the fair value at September 30, 2018, 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, 2018 and December 31, 2017 are as follows: September 30, 2018 December 31, 2017 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value (in thousands) (in thousands) Due within one year $ 465,685 $ 465,166 $ 416,932 $ 416,663 Due after 1 year through 2 years 13,314 13,234 31,560 31,394 Total $ 478,999 $ 478,400 $ 448,492 $ 448,057 |
Restricted cash
Restricted cash | 9 Months Ended |
Sep. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Restricted Cash | 5. Restricted cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows for the nine months ended September 30, 2018 and 2017. September 30, 2018 September 30, 2017 December 31, 2017 (in thousands) Cash and cash equivalents $ 96,122 $ 176,743 $ 87,680 Restricted cash 5,175 5,106 4,757 Restricted cash, included in other assets 450 — 347 Total cash, cash equivalents, and restricted cash $ 101,747 $ 181,849 $ 92,784 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. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 6. Property and Equipment, Net Property and equipment, net consists of the following: September 30, 2018 December 31, 2017 (in thousands) Computer equipment and purchased software $ 7,336 $ 4,571 Employee computer equipment 7,685 4,260 Furniture and fixtures 12,703 11,083 Office equipment 2,537 2,620 Leasehold improvements 43,826 33,446 Equipment under capital lease 3,450 3,450 Internal-use software 4,784 2,892 Construction in progress 581 3,198 Total property and equipment 82,902 65,520 Less accumulated depreciation and amortization (30,989 ) (22,226 ) Property and equipment, net $ 51,913 $ 43,294 Depreciation and amortization expense on property and equipment was $3.2 million for the three months ended September 30, 2018, $9.3 million for the nine months ended September 30, 2018, $2.6 million for the three months ended September 30, 2017, and $6.7 million for the nine months ended September 30, 2017. |
Capitalized Software Developmen
Capitalized Software Development Costs | 9 Months Ended |
Sep. 30, 2018 | |
Research And Development [Abstract] | |
Capitalized Software Development Costs | 7. Capitalized Software Development Costs Capitalized software development costs, exclusive of those recorded within property and equipment, consisted of the following: September 30, 2018 December 31, 2017 (in thousands) Gross capitalized software development costs $ 43,320 $ 33,360 Accumulated amortization (30,781 ) (24,600 ) Capitalized software development costs, net $ 12,539 $ 8,760 Capitalized software development costs are amortized on a straight-line basis over their estimated useful life of two 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, 2018 2017 2018 2017 (in thousands) (in thousands) Software development costs capitalized $ 3,439 $ 2,380 $ 9,960 $ 6,281 Stock-based compensation included in capitalized software development costs $ 563 $ 414 $ 1,910 $ 1,237 Amortization of capitalized software development costs $ 2,293 $ 1,545 $ 6,620 $ 4,391 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. Intangible Assets Intangible assets as of September 30, 2018 and December 31, 2017 consist of the following: Weighted Average Remaining Useful Life September 30, 2018 December 31, 2017 (in thousands) Acquired technology 23 Months $ 7,252 $ 7,252 Acquired intellectual property — 80 80 Accumulated amortization (1,613 ) (1,020 ) Total $ 5,719 $ 6,312 The estimated useful life of acquired technology and intellectual property is two to three years. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Amortization expense related to intangible assets was $494 thousand for the three months ended September 30, 2018, $594 thousand for the nine months ended September 30, 2018, $38 thousand for the three months ended September 30, 2017, and $54 thousand for the nine months ended September 30, 2017. Amortization expense of acquired technology is included in cost of subscription revenue in the consolidated statements of operations. Amortization expense of acquired intellectual property is included in sales and marketing expense in the consolidated statements of operations. Estimated future amortization expense for intangible assets as of September 30, 2018 is as follows: Years ended December 31, Amortization Expense (in thousands) 2018 $ 800 2019 3,112 2020 1,807 Total $ 5,719 |
0.25% Convertible Senior Notes,
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant | 9. 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 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 2022 Notes are convertible at the option of the holders prior to the close of business on the business day immediately preceding February 1, 2022 under certain conditions or upon the occurrence of certain events. 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. Because the last reported sale price of the Company’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the calendar quarter ended September 30, 2018 was equal to or greater than 130% of the applicable conversion price on each applicable trading day, the 2022 Notes are convertible at the option of the holders thereof during the calendar quarter ending December 31, 2018. As of November 6, 2018, no holders have converted or indicated their intention to convert the 2022 Notes. The net carrying amount of the liability component of the 2022 Notes is as follows: As of September 30, 2018 As of December 31, 2017 (in thousands) Principal $ 400,000 $ 400,000 Unamortized debt discount (80,444 ) (94,498 ) Unamortized issuance costs (6,006 ) (7,055 ) Net carrying amount $ 313,550 $ 298,447 Interest expense related to the 2022 Notes is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) (in thousands) Contractual interest expense $ 250 $ 250 $ 750 $ 390 Amortization of debt discount 4,784 4,465 14,054 6,963 Amortization of issuance costs 357 334 1,049 519 Total interest expense $ 5,391 $ 5,049 $ 15,853 $ 7,872 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Contractual Obligations The Company leases its office facilities under non-cancelable operating leases that expire at various dates through May 2031. Rent expense for non-cancellable operating leases with free rental periods or scheduled rent increases is recognized on a straight-line basis over the terms of the leases. Future minimum payments under all operating lease agreements as of September 30, 2018 are as follows: Operating (in thousands) 2018 $ 5,554 2019 25,942 2020 33,179 2021 36,057 2022 35,464 Thereafter 219,485 Total $ 355,681 There were no material changes in our vendor commitments under non-cancelable arrangements, as disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2017 and related notes thereto contained in the Company’s Annual Report on Form 10-K, except as disclosed below: In July 2018, the Company entered into a three year renewal agreement with a web hosting vendor with an option to extend for an additional two year term. The Company’s contractual obligation under this agreement are approximately $48 million over the initial three year term. Legal Contingencies From time to time, the Company 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. The Company currently has no material pending litigation. |
Changes in Stockholders_ Equity
Changes in Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Changes in Stockholders’ Equity | 11. Changes in Stockholders’ Equity The following tables summarize the changes in stockholders’ equity for the three and nine months ended September 30, 2018 and 2017. Common Stock, $0.001 Par Value Additional Paid-In Accumulated Other Comprehensive Accumulated Shares Amount Capital Income (Loss) Deficit Total Balances at December 31, 2017 37,503 $ 38 $ 496,461 $ (57 ) $ (286,082 ) $ 210,360 Issuance of common stock under stock plans, net of shares withheld for employee taxes 1,030 1 9,015 — — 9,016 Stock-based compensation — — 37,067 — — 37,067 Cumulative adjustment from adoption of revenue recognition standard — — — — 5,526 5,526 Cumulative translation adjustment — — — (422 ) — (422 ) Unrealized loss on investments — — — (235 ) — (235 ) Net loss — — — (33,673 ) (33,673 ) Balances at June 30, 2018 38,533 39 542,543 (714 ) (314,229 ) 227,639 Issuance of common stock under stock plans, net of shares withheld for employee taxes 374 1 358 — — 359 Stock-based compensation — — 20,133 — — 20,133 Cumulative translation adjustment — — — (126 ) — (126 ) Unrealized gain on investments — — — 71 — 71 Net loss — — — — (18,663 ) (18,663 ) Balances at September 30, 2018 38,907 $ 40 $ 563,034 $ (769 ) $ (332,892 ) $ 229,413 Common Stock, $0.001 Par Value Additional Paid-In Accumulated Other Comprehensive Accumulated Shares Amount Capital Income (Loss) Deficit Total Balances at December 31, 2016 35,784 $ 36 $ 365,444 $ (864 ) $ (245,916 ) $ 118,700 Issuance of common stock under stock plans, net of shares withheld for employee taxes 977 — 5,156 — — 5,156 Stock-based compensation — — 23,132 — — 23,132 Cumulative adjustment from adoption of stock compensation standard — — 452 — (452 ) — Cumulative translation adjustment — — — 564 — 564 Unrealized gain on investments, net of income taxes of $20 — — - 34 — 34 Equity component of 2022 Notes — — 73,713 — — 73,713 Net loss — — — — (17,596 ) (17,596 ) Balances at June 30, 2017 36,761 36 467,897 (266 ) (263,964 ) 203,703 Issuance of common stock under stock plans, net of shares withheld for employee taxes 421 — 2,543 — — 2,543 Stock-based compensation — — 12,524 — — 12,524 Cumulative translation adjustment — — — 319 — 319 Unrealized gain on investments, net of income taxes of $56 — — — 30 — 30 Net loss — — — — (10,583 ) (10,583 ) Balances at September 30, 2017 37,182 $ 36 $ 482,964 $ 83 $ (274,547 ) $ 208,536 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | 12. 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, 2018. Cumulative Translation Adjustment Unrealized Loss Investments Total (in thousands) Beginning balance at January 1, 2018 $ 379 $ (436 ) $ (57 ) Other comprehensive loss before reclassifications (548 ) (164 ) (712 ) Amounts reclassified from accumulated other comprehensive income — — — Ending balance at September 30, 2018 $ (169 ) $ (600 ) $ (769 ) |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense | 13. 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, 2018 2017 2018 2017 (in thousands) (in thousands) Options $ 1,257 $ 1,246 $ 3,850 $ 3,863 RSUs 17,583 10,521 49,624 29,680 Employee stock purchase plan 772 343 1,860 876 Total stock-based compensation expense $ 19,612 $ 12,110 $ 55,334 $ 34,419 Effect of stock-based compensation expense on income by line item: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) (in thousands) Cost of revenue, subscription $ 391 $ 163 $ 985 $ 455 Cost of revenue, professional services and other 803 591 2,339 1,707 Research and development 5,990 3,110 16,866 9,013 Sales and marketing 7,898 5,015 22,327 13,889 General and administrative 4,530 3,231 12,817 9,355 Total stock-based compensation expense $ 19,612 $ 12,110 $ 55,334 $ 34,419 Capitalized software development costs excluded from stock-based compensation expense is $563 thousand for the three months ended September 30, 2018, $1.9 million for the nine months ended September 30, 2018, $414 thousand for the three months ended September 30, 2017, and $1.2 million for the nine months ended September 30, 2017. |
Segment Information and Geograp
Segment Information and Geographic Data | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | 14. 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, 2018 2017 2018 2017 Americas $ 92,388 $ 72,930 $ 261,034 $ 205,556 Europe 30,382 19,092 83,763 49,041 Asia Pacific 9,056 5,704 24,161 14,474 Total $ 131,826 $ 97,726 $ 368,958 $ 269,071 Percentage of revenues generated outside of the Americas 30 % 25 % 29 % 24 % Revenue derived from customers outside the United States (international) was approximately 38% of total revenue in the three months ended September 30, 2018 and 37% of total revenue in the nine months ended September 30, 2018. Revenue derived from customers outside the United States (international) was approximately 33% of total revenue in the three months ended September 30, 2017 and 32% of total revenue in the nine months ended September 30, 2017. Total long-lived assets by geographical region: As of September 30, 2018 As of December 31, 2017 Americas $ 33,526 $ 29,764 Europe 14,652 11,257 Asia Pacific 3,735 2,273 Total long-lived assets $ 51,913 $ 43,294 Percentage of long-lived assets held outside of the Americas 35 % 31 % |
Organization and Operations (Po
Organization and Operations (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
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. In June 2018, the Financial Accounting Standards Board (“FASB”) issued guidance to expand the guidance for stock-based compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company does not believe the adoption of this guidance will have a material impact on the consolidated financial statements. In January 2017, the 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. The Company does not believe the adoption of this guidance will have a material impact on the 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. The Company adopted the updated guidance as of January 1, 2018. As a result of adopting this guidance cash and cash equivalents used in investing activities increased by $521 thousand and net increase in cash, cash equivalents, and restricted cash also increased by $521 thousand for the nine months ended September 30, 2018. Cash and cash equivalents used in investing activities increased by $4.6 million and net increase in cash, cash equivalents, and restricted cash increased by $4.6 million for the nine months ended September 30, 2017 in the consolidated statements of cash flows. 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 will adopt the standard on January 1, 2019. The Company has established a team that is continuing to assess the potential impacts of the standard on its consolidated financial statements and footnote disclosures. The Company currently believes the most significant changes will be related to the recognition of right-of-use assets and lease liabilities on its consolidated balance sheet for operating leases, which will increase total assets and total liabilities reported relative to such amounts prior to adoption. The guidance is required to be adopted using a modified retrospective approach. Upon adoption, the Company also expects to elect the transition relief package, permitted within the new standard, in which the Company will not reassess the classification of existing leases, whether any expired or existing contracts contain a lease, and if existing leases have any initial direct costs. The In January 2016, the FASB issued guidance that requires entities to measure equity instruments at fair value and recognize changes in fair value within the statement of operations. The Company adopted the updated guidance as of January 1, 2018. The guidance provides for electing a measurement alternative or defaulting to the fair value option for equity investments that do not have readily determinable fair values. The Company elected the measurement alternative for its equity investments in privately held companies, which are included in other assets in the accompanying consolidated balance sheets. These investments are measured at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, which will be recorded within the statement of operations. The adoption of this guidance did not have a material impact 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. The Company adopted the updated guidance as of January 1, 2018 using the modified retrospective transition method. See Note 2 of these consolidated financial statements for further details. |
Revenue | Revenues Adoption of Updated Revenue Guidance On January 1, 2018, the Company adopted new revenue guidance using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after December 31, 2017 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with historic revenue guidance. The Company applied the new standard using practical expedients where: • the measurement of the transaction price excludes all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer; • the new revenue guidance has been applied to portfolios of contracts with similar characteristics; • the modified retrospective approach has been applied only to contracts that are not completed contracts at the date of initial adoption; and • the value of unsatisfied performance obligations for contracts with an original expected length of one year or less has not been disclosed. The impact of applying the new guidance in 2018 versus the prior guidance resulted in a change to the period over which sales commissions are amortized to incorporate an estimated customer life and the amortization period over which internally developed new features and increased functionality for our software platform is recorded, in addition to the initial contract period. This resulted in a longer amortization period for deferred commission expense, which reduces expense compared to the application of the prior guidance. There was also a change to the scope of sales commissions that are capitalized based on the definition of incremental costs of obtaining a contract. This increased the amount of commissions cost that was capitalized compared to the application of the prior guidance. In addition, there was a change in the timing of revenue recognition for certain sales contracts where free or discounted services are bundled with subscription services due to the removal of the limitation on recording contingent revenue that existed in the prior guidance. Removing the limitation of recording contingent revenue resulted in an acceleration of revenue recognition on these contracts compared to the application of the prior guidance. Th e Company recorded a net increase to opening retained earnings of $5.5 million as of January 1, 2018 due to the cumulative impact of adopting the new revenue guidance, with the impact primarily related to the recognition of costs associated with obtaining customer contracts. The Company had previously recorded a net increase of $5.8 million to opening retained earnings as of January 1, 2018 to reflect the adoption of the new revenue guidance. During the three months ended June 30, 2018, the Company recorded an immaterial $274 thousand adjustment to the initial opening retained earnings adjustment to account for the deferred tax impact of the adoption of the new revenue standard. The resulting impact to the consolidated statements of operations and comprehensive loss of applying the new guidance in the three months ended September 30, 2018 versus the prior guidance was a decrease to subscription revenue of $224 thousand, an increase to professional services and other revenue of $125 thousand, a decrease to total revenues of $99 thousand, and a decrease to selling and marketing expense and total operating expenses of $4.1 million for the three months ended September 30, 2018. The resulting impact to loss from operations, loss before income tax (expense) benefit, net loss and comprehensive loss was $4.0 million. The resulting impact on basic earnings per share was $0.10. The resulting impact to the consolidated statements of operations and comprehensive loss of applying the new guidance in the nine months ended September 30, 2018 versus the prior guidance was a decrease to subscription revenue of $580 thousand, an increase to professional services and other revenue of $372 thousand, a decrease to total revenues of $208 thousand, and a decrease to selling and marketing expense and total operating expenses of $11.5 million for the nine months ended September 30, 2018. The resulting impact to loss from operations, loss before income tax (expense) benefit, net loss and comprehensive loss was $11.3 million. The resulting impact on basic earnings per share was $0.30. The resulting impact to the consolidated balance sheet of applying the new guidance in 2018 versus the prior guidance was a increase to short-term deferred commissions and total current assets of $1.8 million, an increase to long-term deferred commissions of $15.2 million, a decrease to other assets of $255 thousand, an increase in total assets of $16.7 million, a decrease to short-term deferred revenue, and total current liabilities of $122 thousand, an increase to other liabilities of $19 thousand, a decrease to total liabilities of $103 thousand, a decrease to accumulated deficit and increase to total stockholders’ equity of $16.8 million, and an increase to total liabilities and stockholders’ equity of $16.7 million. There was no impact to total cash flow from operations of applying the new guidance in 2018 versus the prior guidance because the decrease in net loss of $11.3 million, increase in the change in deferred commission expense of $11.5 million and increase in the change in deferred revenue of $208 thousand net to $0 within cash flows from operations. Revenue Recognition The Company generates revenue from arrangements with multiple performance obligations, which typically include subscriptions to its online software products and professional services which include on-boarding and training services. The Company’s customers do not have the right to take possession of the online software products. The Company recognizes revenue from contracts with customers using a five-step model, which is described below: • Identify the customer contract; • Identify performance obligations that are distinct; • Determine the transaction price; • Allocate the transaction price to the distinct performance obligations; and • Recognize revenue as the performance obligations are satisfied. Identify the customer contract A customer contract is generally identified when the Company and a customer have executed an arrangement that calls for the Company to grant access to its online software products and provide professional services in exchange for consideration from the customer. Identify performance obligations that are distinct A performance obligation is a promise to provide a distinct good or service or a series of distinct goods or services. A good or service that is promised to a customer is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and a company’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. The Company has determined that subscriptions for its online software products are distinct because, once a customer has access to the online software product that it purchased, the online software product is fully functional and does not require any additional development, modification, or customization. Professional services sold are distinct because the customer benefits from the on-boarding and training to make better use of the online software products it purchased. Determine the transaction price The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer, excluding sales taxes that are collected on behalf of government agencies. The Company estimates any variable consideration to which it will be entitled at contract inception, and reassesses at each reporting date, when determining the transaction price. The Company does not include variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when any uncertainty associated with the variable consideration is resolved. Allocate the transaction price to the distinct performance obligations The transaction price is allocated to each performance obligation based on the relative standalone selling prices (“SSP”) of the goods or services being provided to the customer. The Company determines the SSP of its goods and services based upon the average sales prices for each type of online software product and professional services sold. In instances where there are not sufficient data points, or the selling prices for a particular online software product or professional service are disparate, the Company estimates the SSP using other observable inputs, such as similar products or services. Recognize revenue as the performance obligations are satisfied Revenues are recognized when or as control of the promised goods or services is transferred to customers. Revenue from Disaggregation of Revenue The Company provides disaggregation of revenue based on geographic region (Note 14) and based on the subscription versus Deferred Revenue and Deferred Commission Expense Amounts that have been invoiced are recorded in accounts receivable and deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Deferred revenue represents amounts billed for which revenue has not yet been recognized. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue, and the remaining portion is recorded as long-term deferred revenue. Deferred revenue during the nine months ended September 30, 2018 increased by $23.5 million resulting from $392.5 million of additional invoicing and was offset by revenue recognized of $369.0 million during the same period. $83.2 million of revenue was recognized during the three month period ended September 30, 2018 that was included in deferred revenue at the beginning of the period. $128.4 million of revenue was recognized during the nine month period ended September 30, 2018 that was included in deferred revenue at the beginning of the period. As of September 30, 2018, approximately $89.4 million of revenue is expected to be recognized from remaining performance obligations for contracts with original performance obligations that exceed one year. The Company expects to recognize revenue on approximately 94% of these remaining performance obligations over the next 24 months, with the balance recognized thereafter. The incremental direct costs of obtaining a contract, which primarily consist of sales commissions paid for new subscription contracts, are deferred and amortized on a straight-line basis over a period of approximately two to three years. The two to three-year period has been determined by taking into consideration the type of product sold, the commitment term of the customer contract, the nature of the Company’s technology development life-cycle, and an estimated customer relationship period. Sales commissions for upgrade contracts are deferred and amortized on a straight-line basis over the remaining estimated customer relationship period of the related customer. Deferred commission expense that will be recorded as expense during the succeeding 12-month period is recorded as current deferred commission expense, and the remaining portion is recorded as long-term deferred commission expense. Partner Commissions The Company pays its partners a commission based on the online software product sales price for sales to end-customers. The classification of the commission paid on the Company’s consolidated statements of operations depends on who purchases the online software product. In instances where the end-customer purchases the online software product from the Company, the Company is the principal and it records the commission paid to the partner as sales and marketing expense. When the partner purchases the online software product directly from the Company, the Company is the agent and it nets the consideration paid to the partner against the associated revenue it recognizes, as in these instances the Company’s customer is the partner and the Company’s remaining obligation is to the partner. The Company does not believe that it receives a tangible benefit from the commission payment to the partner. |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2018 2017 Net loss $ (18,663 ) $ (10,583 ) $ (52,336 ) $ (28,179 ) Weighted-average common shares outstanding — basic 38,762 37,047 38,319 36,639 Dilutive effect of share equivalents resulting from stock options, RSUs, ESPP, common stock warrants and the Conversion Option of the 2022 Notes — — — — Weighted-average common shares, outstanding — diluted 38,762 37,047 38,319 36,639 Net loss per share, basic and diluted $ (0.48 ) $ (0.29 ) $ (1.37 ) $ (0.77 ) |
Schedule of Potentially Dilutive Common Stock Equivalents | The following table contains all potentially dilutive common stock equivalents. As of September 30, 2018 2017 (in thousands) Options to purchase common shares 1,905 2,398 RSUs 2,020 2,173 Conversion option of the 2022 Notes 1,311 — Common stock warrants 664 — ESPP 29 3 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017: September 30, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 4,353 $ — $ — $ 4,353 Commercial paper — 8,191 — 8,191 Corporate bonds — 84,188 — 84,188 U.S. Treasury securities — 386,021 — 386,021 Restricted cash: Certificates of deposit — 5,625 — 5,625 Total $ 4,353 $ 484,025 $ — $ 488,378 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 12,845 $ — $ — $ 12,845 Commercial paper — 5,867 — 5,867 Corporate bonds — 81,668 — 81,668 U.S. government agency obligations — 3,987 — 3,987 U.S. Treasury securities — 356,535 — 356,535 Restricted cash: Certificates of deposit — 5,105 — 5,105 Total $ 12,845 $ 453,162 $ — $ 466,007 |
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, 2018 and December 31, 2017. September 30, 2018 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 8,202 $ — $ (11 ) $ 8,191 Corporate bonds 84,472 — (284 ) $ 84,188 U.S. Treasury securities 386,325 — (304 ) 386,021 Total $ 478,999 $ — $ (599 ) $ 478,400 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 5,874 $ — $ (7 ) $ 5,867 Corporate bonds 81,947 — (279 ) 81,668 U.S. government agency obligations 4,000 — (13 ) 3,987 U.S. Treasury securities 356,671 8 (144 ) 356,535 Total $ 448,492 $ 8 $ (443 ) $ 448,057 |
Summary of Contractual Maturities of Short and Long Term Investments | The contractual maturities of short-term and long-term investments held at September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 December 31, 2017 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value (in thousands) (in thousands) Due within one year $ 465,685 $ 465,166 $ 416,932 $ 416,663 Due after 1 year through 2 years 13,314 13,234 31,560 31,394 Total $ 478,999 $ 478,400 $ 448,492 $ 448,057 |
Restricted cash (Tables)
Restricted cash (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows for the nine months ended September 30, 2018 and 2017. September 30, 2018 September 30, 2017 December 31, 2017 (in thousands) Cash and cash equivalents $ 96,122 $ 176,743 $ 87,680 Restricted cash 5,175 5,106 4,757 Restricted cash, included in other assets 450 — 347 Total cash, cash equivalents, and restricted cash $ 101,747 $ 181,849 $ 92,784 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following: September 30, 2018 December 31, 2017 (in thousands) Computer equipment and purchased software $ 7,336 $ 4,571 Employee computer equipment 7,685 4,260 Furniture and fixtures 12,703 11,083 Office equipment 2,537 2,620 Leasehold improvements 43,826 33,446 Equipment under capital lease 3,450 3,450 Internal-use software 4,784 2,892 Construction in progress 581 3,198 Total property and equipment 82,902 65,520 Less accumulated depreciation and amortization (30,989 ) (22,226 ) Property and equipment, net $ 51,913 $ 43,294 |
Capitalized Software Developm_2
Capitalized Software Development Costs (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 December 31, 2017 (in thousands) Gross capitalized software development costs $ 43,320 $ 33,360 Accumulated amortization (30,781 ) (24,600 ) Capitalized software development costs, net $ 12,539 $ 8,760 |
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, 2018 2017 2018 2017 (in thousands) (in thousands) Software development costs capitalized $ 3,439 $ 2,380 $ 9,960 $ 6,281 Stock-based compensation included in capitalized software development costs $ 563 $ 414 $ 1,910 $ 1,237 Amortization of capitalized software development costs $ 2,293 $ 1,545 $ 6,620 $ 4,391 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets as of September 30, 2018 and December 31, 2017 consist of the following: Weighted Average Remaining Useful Life September 30, 2018 December 31, 2017 (in thousands) Acquired technology 23 Months $ 7,252 $ 7,252 Acquired intellectual property — 80 80 Accumulated amortization (1,613 ) (1,020 ) Total $ 5,719 $ 6,312 |
Estimated Future Amortization Expense for Intangible Assets | Estimated future amortization expense for intangible assets as of September 30, 2018 is as follows: Years ended December 31, Amortization Expense (in thousands) 2018 $ 800 2019 3,112 2020 1,807 Total $ 5,719 |
0.25% Convertible Senior Note_2
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2018 2017 (in thousands) (in thousands) Contractual interest expense $ 250 $ 250 $ 750 $ 390 Amortization of debt discount 4,784 4,465 14,054 6,963 Amortization of issuance costs 357 334 1,049 519 Total interest expense $ 5,391 $ 5,049 $ 15,853 $ 7,872 |
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, 2018 As of December 31, 2017 (in thousands) Principal $ 400,000 $ 400,000 Unamortized debt discount (80,444 ) (94,498 ) Unamortized issuance costs (6,006 ) (7,055 ) Net carrying amount $ 313,550 $ 298,447 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments | Future minimum payments under all operating lease agreements as of September 30, 2018 are as follows: Operating (in thousands) 2018 $ 5,554 2019 25,942 2020 33,179 2021 36,057 2022 35,464 Thereafter 219,485 Total $ 355,681 |
Changes in Stockholders_ Equi_2
Changes in Stockholders’ Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders Equity Note [Abstract] | |
Summary of Changes in Stockholders' Equity | The following tables summarize the changes in stockholders’ equity for the three and nine months ended September 30, 2018 and 2017. Common Stock, $0.001 Par Value Additional Paid-In Accumulated Other Comprehensive Accumulated Shares Amount Capital Income (Loss) Deficit Total Balances at December 31, 2017 37,503 $ 38 $ 496,461 $ (57 ) $ (286,082 ) $ 210,360 Issuance of common stock under stock plans, net of shares withheld for employee taxes 1,030 1 9,015 — — 9,016 Stock-based compensation — — 37,067 — — 37,067 Cumulative adjustment from adoption of revenue recognition standard — — — — 5,526 5,526 Cumulative translation adjustment — — — (422 ) — (422 ) Unrealized loss on investments — — — (235 ) — (235 ) Net loss — — — (33,673 ) (33,673 ) Balances at June 30, 2018 38,533 39 542,543 (714 ) (314,229 ) 227,639 Issuance of common stock under stock plans, net of shares withheld for employee taxes 374 1 358 — — 359 Stock-based compensation — — 20,133 — — 20,133 Cumulative translation adjustment — — — (126 ) — (126 ) Unrealized gain on investments — — — 71 — 71 Net loss — — — — (18,663 ) (18,663 ) Balances at September 30, 2018 38,907 $ 40 $ 563,034 $ (769 ) $ (332,892 ) $ 229,413 Common Stock, $0.001 Par Value Additional Paid-In Accumulated Other Comprehensive Accumulated Shares Amount Capital Income (Loss) Deficit Total Balances at December 31, 2016 35,784 $ 36 $ 365,444 $ (864 ) $ (245,916 ) $ 118,700 Issuance of common stock under stock plans, net of shares withheld for employee taxes 977 — 5,156 — — 5,156 Stock-based compensation — — 23,132 — — 23,132 Cumulative adjustment from adoption of stock compensation standard — — 452 — (452 ) — Cumulative translation adjustment — — — 564 — 564 Unrealized gain on investments, net of income taxes of $20 — — - 34 — 34 Equity component of 2022 Notes — — 73,713 — — 73,713 Net loss — — — — (17,596 ) (17,596 ) Balances at June 30, 2017 36,761 36 467,897 (266 ) (263,964 ) 203,703 Issuance of common stock under stock plans, net of shares withheld for employee taxes 421 — 2,543 — — 2,543 Stock-based compensation — — 12,524 — — 12,524 Cumulative translation adjustment — — — 319 — 319 Unrealized gain on investments, net of income taxes of $56 — — — 30 — 30 Net loss — — — — (10,583 ) (10,583 ) Balances at September 30, 2017 37,182 $ 36 $ 482,964 $ 83 $ (274,547 ) $ 208,536 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018. Cumulative Translation Adjustment Unrealized Loss Investments Total (in thousands) Beginning balance at January 1, 2018 $ 379 $ (436 ) $ (57 ) Other comprehensive loss before reclassifications (548 ) (164 ) (712 ) Amounts reclassified from accumulated other comprehensive income — — — Ending balance at September 30, 2018 $ (169 ) $ (600 ) $ (769 ) |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2018 2017 (in thousands) (in thousands) Options $ 1,257 $ 1,246 $ 3,850 $ 3,863 RSUs 17,583 10,521 49,624 29,680 Employee stock purchase plan 772 343 1,860 876 Total stock-based compensation expense $ 19,612 $ 12,110 $ 55,334 $ 34,419 |
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, 2018 2017 2018 2017 (in thousands) (in thousands) Cost of revenue, subscription $ 391 $ 163 $ 985 $ 455 Cost of revenue, professional services and other 803 591 2,339 1,707 Research and development 5,990 3,110 16,866 9,013 Sales and marketing 7,898 5,015 22,327 13,889 General and administrative 4,530 3,231 12,817 9,355 Total stock-based compensation expense $ 19,612 $ 12,110 $ 55,334 $ 34,419 |
Segment Information and Geogr_2
Segment Information and Geographic Data (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Revenues by Geographical Region | Revenues by geographical region: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Americas $ 92,388 $ 72,930 $ 261,034 $ 205,556 Europe 30,382 19,092 83,763 49,041 Asia Pacific 9,056 5,704 24,161 14,474 Total $ 131,826 $ 97,726 $ 368,958 $ 269,071 Percentage of revenues generated outside of the Americas 30 % 25 % 29 % 24 % |
Long Lived Assets by Geographical Region | Total long-lived assets by geographical region: As of September 30, 2018 As of December 31, 2017 Americas $ 33,526 $ 29,764 Europe 14,652 11,257 Asia Pacific 3,735 2,273 Total long-lived assets $ 51,913 $ 43,294 Percentage of long-lived assets held outside of the Americas 35 % 31 % |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Organization And Operations [Line Items] | ||
Net increase in cash and cash equivalents used in investing activities | $ (51,702) | $ (292,186) |
Early Adoption Effect [Member] | ||
Organization And Operations [Line Items] | ||
Net increase in cash and cash equivalents used in investing activities | 521 | 4,600 |
Net increase in cash, cash equivalents and restricted cash | $ 521 | $ 4,600 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Unsatisfied performance obligations for contracts, disclosure description | The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. | |||||||||
Cumulative adjustment to retained earnings | $ (332,892) | $ (332,892) | $ (286,082) | |||||||
Total revenues | 131,826 | $ 97,726 | 368,958 | $ 269,071 | ||||||
Selling and marketing expense | 71,293 | 57,904 | 196,484 | 155,284 | ||||||
Total operating expenses | 121,111 | 90,842 | 336,391 | 245,101 | ||||||
Loss from operations | (15,050) | (12,126) | (40,426) | (30,703) | ||||||
Loss before income tax (expense) benefit | (18,304) | (15,941) | (51,074) | (36,590) | ||||||
Net loss | (18,663) | (10,583) | $ (33,673) | $ (17,596) | (52,336) | (28,179) | ||||
Comprehensive loss | (18,718) | (10,232) | (53,048) | (27,232) | ||||||
Short-term deferred commissions | 18,759 | 18,759 | 13,343 | |||||||
Total current assets | 666,461 | 666,461 | 602,501 | |||||||
Total assets | 785,648 | 785,648 | 712,175 | |||||||
Short-term deferred revenue | 160,509 | 160,509 | 136,880 | |||||||
Total current liabilities | 211,289 | 211,289 | 178,296 | |||||||
Total liabilities | 556,235 | 556,235 | 501,815 | |||||||
Total stockholders' equity | 229,413 | $ 227,639 | 208,536 | $ 227,639 | $ 203,703 | 229,413 | 208,536 | 210,360 | $ 118,700 | |
Total liabilities and stockholders' equity | 785,648 | 785,648 | $ 712,175 | |||||||
Deferred commissions expense | (15,887) | (2,011) | ||||||||
Deferred revenue net | 25,713 | 20,561 | ||||||||
Impact on cash flows from operations | $ 51,740 | 35,620 | ||||||||
Revenue subscription contract period | One year or less | |||||||||
Increase in deferred revenue | $ 23,500 | |||||||||
Additional Invoicing | 392,500 | |||||||||
Deferred revenue, revenue recognized | 83,200 | 128,400 | ||||||||
Revenue remaining performance obligation, contracts exceeds one year | $ 89,400 | $ 89,400 | ||||||||
Revenue remaining performance obligation contract period | 1 year | |||||||||
Revenue remaining performance obligation percentage recognized | 94.00% | |||||||||
Revenu remaining performance obligations recognized period | 24 months | 24 months | ||||||||
Increase in deferred commission expense | $ 5,400 | $ 15,300 | ||||||||
Incremental costs of deferred sales commission expense | 10,600 | 29,500 | ||||||||
Amortization of deferred commission expense | 5,200 | $ 14,200 | ||||||||
Minimum [Member] | ||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Amortization period of deferred commissions | 2 years | |||||||||
Maximum [Member] | ||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Amortization period of deferred commissions | 3 years | |||||||||
Subscription Revenue [Member] | ||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Total revenues | 125,478 | $ 93,164 | $ 350,646 | $ 255,030 | ||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Adjustments to retained earnings | $ 274 | |||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Cumulative adjustment to retained earnings | 16,800 | 16,800 | $ 5,500 | |||||||
Total revenues | (99) | (208) | ||||||||
Professional services and other revenue | 125 | 372 | ||||||||
Selling and marketing expense | (4,100) | (11,500) | ||||||||
Total operating expenses | (4,100) | (11,500) | ||||||||
Loss from operations | (4,000) | (11,300) | ||||||||
Loss before income tax (expense) benefit | (4,000) | (11,300) | ||||||||
Net loss | (4,000) | (11,300) | ||||||||
Comprehensive loss | $ (4,000) | $ (11,300) | ||||||||
Basic earnings (losses) per share | $ (0.10) | $ (0.30) | ||||||||
Short-term deferred commissions | $ 1,800 | $ 1,800 | ||||||||
Total current assets | 1,800 | 1,800 | ||||||||
Long-term deferred commissions | 15,200 | 15,200 | ||||||||
Other assets | (255) | (255) | ||||||||
Total assets | 16,700 | 16,700 | ||||||||
Short-term deferred revenue | (122) | (122) | ||||||||
Total current liabilities | (122) | (122) | ||||||||
Other liabilities | 19 | 19 | ||||||||
Total liabilities | (103) | (103) | ||||||||
Total stockholders' equity | 16,800 | 16,800 | ||||||||
Total liabilities and stockholders' equity | 16,700 | 16,700 | ||||||||
Deferred commissions expense | 11,500 | |||||||||
Deferred revenue net | 208 | |||||||||
Impact on cash flows from operations | 0 | |||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | Subscription Revenue [Member] | ||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Total revenues | $ (224) | $ (580) | ||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | Previously Reported [Member] | ||||||||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Cumulative adjustment to retained earnings | $ 5,800 |
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 | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share Basic And Diluted [Abstract] | ||||||
Net loss | $ (18,663) | $ (10,583) | $ (33,673) | $ (17,596) | $ (52,336) | $ (28,179) |
Weighted-average common shares outstanding — basic | 38,762 | 37,047 | 38,319 | 36,639 | ||
Weighted-average common shares, outstanding — diluted | 38,762 | 37,047 | 38,319 | 36,639 | ||
Net loss per share, basic and diluted | $ (0.48) | $ (0.29) | $ (1.37) | $ (0.77) |
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, 2018 | Sep. 30, 2017 | |
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 | 1,905 | 2,398 |
RSUs [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 2,020 | 2,173 |
Conversion Option of the 2022 Notes [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 1,311 | |
Common Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 664 | |
ESPP [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 29 | 3 |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Detail) - 0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | 9 Months Ended |
Sep. 30, 2018d$ / shares | |
Earnings Per Share Basic [Line Items] | |
Common stock conversion price | $ / shares | $ 94.77 |
Debt instrument, convertible, threshold trading days | 20 |
Debt instrument, convertible, threshold consecutive trading days | 30 |
Percentage of closing price to trigger debt conversion | 130.00% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | $ 478,400 | $ 448,057 |
Fair value of financial assets | 488,378 | 466,007 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 4,353 | 12,845 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 484,025 | 453,162 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of cash and cash equivalents | 4,353 | 12,845 |
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 | 4,353 | 12,845 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 8,191 | 5,867 |
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 short and long term investments | 8,191 | 5,867 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 84,188 | 81,668 |
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 | 84,188 | 81,668 |
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 | 3,987 | |
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 | 3,987 | |
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 | 386,021 | 356,535 |
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 | 386,021 | 356,535 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of restricted cash | 5,625 | 5,105 |
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 | $ 5,625 | $ 5,105 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other assets | $ 5,656 | $ 4,964 |
Strategic Investments [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other assets | 3,800 | $ 3,500 |
2022 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value of notes | $ 658,000 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Summary of Composition of Short and Long Term Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 478,999 | $ 448,492 |
Unrealized Gains | 8 | |
Unrealized Losses | (599) | (443) |
Aggregate Fair Value | 478,400 | 448,057 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,202 | 5,874 |
Unrealized Losses | (11) | (7) |
Aggregate Fair Value | 8,191 | 5,867 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 84,472 | 81,947 |
Unrealized Losses | (284) | (279) |
Aggregate Fair Value | 84,188 | 81,668 |
US Government Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,000 | |
Unrealized Losses | (13) | |
Aggregate Fair Value | 3,987 | |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 386,325 | 356,671 |
Unrealized Gains | 8 | |
Unrealized Losses | (304) | (144) |
Aggregate Fair Value | $ 386,021 | $ 356,535 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Summary of Contractual Maturities of Short and Long Term Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Amortized Cost Basis, Due within one year | $ 465,685 | $ 416,932 |
Amortized Cost Basis, Due after 1 year through 2 years | 13,314 | 31,560 |
Amortized Cost | 478,999 | 448,492 |
Aggregate Fair Value, Due within one year | 465,166 | 416,663 |
Aggregate Fair Value, Due after 1 year through 2 years | 13,234 | 31,394 |
Aggregate Fair Value, Total | $ 478,400 | $ 448,057 |
Restricted cash - Summary of Re
Restricted cash - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 96,122 | $ 87,680 | $ 176,743 | |
Restricted cash | 5,175 | 4,757 | 5,106 | |
Restricted cash, included in other assets | $ 450 | $ 347 | ||
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | ||
Total cash, cash equivalents, and restricted cash | $ 101,747 | $ 92,784 | $ 181,849 | $ 60,185 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 82,902 | $ 65,520 |
Less accumulated depreciation and amortization | (30,989) | (22,226) |
Property and equipment, net | 51,913 | 43,294 |
Computer Equipment and Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,336 | 4,571 |
Employee Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,685 | 4,260 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 12,703 | 11,083 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,537 | 2,620 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 43,826 | 33,446 |
Equipment under Capital Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,450 | 3,450 |
Internal-Use Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,784 | 2,892 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 581 | $ 3,198 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization | $ 3.2 | $ 2.6 | $ 9.3 | $ 6.7 |
Capitalized Software Developm_3
Capitalized Software Development Costs - Summary of Capitalized Software Development Costs, Exclusive of those Recorded within Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Capitalized Computer Software Net [Abstract] | ||
Gross capitalized software development costs | $ 43,320 | $ 33,360 |
Accumulated amortization | (30,781) | (24,600) |
Capitalized software development costs, net | $ 12,539 | $ 8,760 |
Capitalized Software Developm_4
Capitalized Software Development Costs - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018 | |
Capitalized Software Development Costs [Member] | |
Capitalized Computer Software [Line Items] | |
Property and equipment, estimated useful life | 2 years |
Capitalized Software Developm_5
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Capitalized Computer Software [Line Items] | ||||
Software development costs capitalized | $ 3,439 | $ 2,380 | $ 9,960 | $ 6,281 |
Stock-based compensation included in capitalized software development costs | 563 | 414 | 1,910 | 1,237 |
Amortization of capitalized software development costs | $ 2,293 | $ 1,545 | $ 6,620 | $ 4,391 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (1,613) | $ (1,020) |
Intangible assets, net | 5,719 | 6,312 |
Acquired Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | $ 7,252 | 7,252 |
Acquired intangible assets, Weighted average remaining useful life | 23 months | |
Acquired Intellectual Property [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquired intangible assets | $ 80 | $ 80 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 494 | $ 38 | $ 594 | $ 54 |
Acquired Technology [Member] | Minimum [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Estimated useful life | 2 years | |||
Acquired Technology [Member] | Maximum [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Estimated useful life | 3 years | |||
Acquired Intellectual Property [Member] | Minimum [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Estimated useful life | 2 years | |||
Acquired Intellectual Property [Member] | Maximum [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Estimated useful life | 3 years |
Intangible Assets - Estimated F
Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,018 | $ 800 |
2,019 | 3,112 |
2,020 | 1,807 |
Total | $ 5,719 |
0.25% Convertible Senior Note_3
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Additional Information (Detail) - 0.25% Convertible Senior Notes Due 2022 [Member] | 1 Months Ended | 9 Months Ended |
May 31, 2017USD ($)d | Sep. 30, 2018 | |
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.25% | |
Debt instrument, maturity date | Jun. 1, 2022 | |
Debt instrument, convertible, threshold trading days | d | 20 | |
Debt instrument, convertible, threshold consecutive trading days | d | 30 | |
Percentage of closing price to trigger debt conversion | 130.00% | |
Private Offering [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of long term debt | $ | $ 350,000,000 | |
Over-Allotment Options [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of long term debt | $ | $ 50,000,000 |
0.25% Convertible Senior Note_4
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Schedule of Net Carrying Amount of Liability Component (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 313,550 | $ 298,447 |
0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 400,000 | 400,000 |
Unamortized debt discount | (80,444) | (94,498) |
Unamortized issuance costs | (6,006) | (7,055) |
Net carrying amount | $ 313,550 | $ 298,447 |
0.25% Convertible Senior Note_5
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 250 | $ 250 | $ 750 | $ 390 |
Amortization of debt discount | 4,784 | 4,465 | 14,054 | 6,963 |
Amortization of issuance costs | 357 | 334 | 1,049 | 519 |
Total interest expense | $ 5,391 | $ 5,049 | $ 15,853 | $ 7,872 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Operating, 2018 | $ 5,554 |
Operating, 2019 | 25,942 |
Operating, 2020 | 33,179 |
Operating, 2021 | 36,057 |
Operating, 2022 | 35,464 |
Operating, Thereafter | 219,485 |
Operating, Total | $ 355,681 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - Renewal Agreement [Member] - Web Hosting Vendor [Member] $ in Millions | 1 Months Ended |
Jul. 31, 2018USD ($) | |
Operating And Capital Leased Assets [Line Items] | |
Renewal agreement term | 3 years |
Extended renewal agreement term | 2 years |
Contractual obligation over initial three year term | $ 48 |
Changes in Stockholders' Equity
Changes in Stockholders' Equity - Summary of Changes in Stockholders' Equity (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Class Of Stock [Line Items] | ||||||
Beginning Balance, Amount | $ 227,639 | $ 203,703 | $ 210,360 | $ 118,700 | $ 210,360 | $ 118,700 |
Issuance of common stock under stock plans, net of shares withheld for employee taxes | 359 | 2,543 | 9,016 | 5,156 | ||
Stock-based compensation | 20,133 | 12,524 | 37,067 | 23,132 | ||
Cumulative adjustment from adoption of revenue recognition standard | 5,526 | |||||
Cumulative translation adjustment | (126) | 319 | (422) | 564 | ||
Unrealized gain (loss) on investments, net of income taxes | 71 | 30 | (235) | 34 | ||
Equity component of 2022 Notes | 73,713 | |||||
Net loss | (18,663) | (10,583) | (33,673) | (17,596) | (52,336) | (28,179) |
Ending Balance, Amount | 229,413 | 208,536 | 227,639 | 203,703 | 229,413 | 208,536 |
Common Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Beginning Balance, Amount | $ 39 | $ 36 | $ 38 | $ 36 | $ 38 | $ 36 |
Beginning Balance, Shares | 38,533 | 36,761 | 37,503 | 35,784 | 37,503 | 35,784 |
Issuance of common stock under stock plans, net of shares withheld for employee taxes | $ 1 | $ 1 | ||||
Issuance of common stock under stock plans, net of shares withheld for employee taxes, Shares | 374 | 421 | 1,030 | 977 | ||
Ending Balance, Amount | $ 40 | $ 36 | $ 39 | $ 36 | $ 40 | $ 36 |
Ending Balance, Shares | 38,907 | 37,182 | 38,533 | 36,761 | 38,907 | 37,182 |
Additional Paid-In Capital [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Beginning Balance, Amount | $ 542,543 | $ 467,897 | $ 496,461 | $ 365,444 | $ 496,461 | $ 365,444 |
Issuance of common stock under stock plans, net of shares withheld for employee taxes | 358 | 2,543 | 9,015 | 5,156 | ||
Stock-based compensation | 20,133 | 12,524 | 37,067 | 23,132 | ||
Cumulative adjustment from adoption of stock compensation standard | 452 | |||||
Equity component of 2022 Notes | 73,713 | |||||
Ending Balance, Amount | 563,034 | 482,964 | 542,543 | 467,897 | 563,034 | 482,964 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Beginning Balance, Amount | (714) | (266) | (57) | (864) | (57) | (864) |
Cumulative translation adjustment | (126) | 319 | (422) | 564 | ||
Unrealized gain (loss) on investments, net of income taxes | 71 | 30 | (235) | 34 | ||
Ending Balance, Amount | (769) | 83 | (714) | (266) | (769) | 83 |
Accumulated Deficit [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Beginning Balance, Amount | (314,229) | (263,964) | (286,082) | (245,916) | (286,082) | (245,916) |
Cumulative adjustment from adoption of stock compensation standard | (452) | |||||
Cumulative adjustment from adoption of revenue recognition standard | 5,526 | |||||
Net loss | (18,663) | (10,583) | (33,673) | (17,596) | ||
Ending Balance, Amount | $ (332,892) | $ (274,547) | $ (314,229) | $ (263,964) | $ (332,892) | $ (274,547) |
Changes in Stockholders' Equi_2
Changes in Stockholders' Equity - Summary of Changes in Stockholders' Equity (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2017 | Jun. 30, 2017 | |
Stockholders Equity Note [Abstract] | ||
Unrealized gain (loss) on investments, tax | $ 56 | $ 20 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | $ 210,360 |
Other comprehensive loss before reclassifications | (712) |
Ending Balance, Amount | 229,413 |
Cumulative Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | 379 |
Other comprehensive loss before reclassifications | (548) |
Ending Balance, Amount | (169) |
Unrealized Loss on Investments [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | (436) |
Other comprehensive loss before reclassifications | (164) |
Ending Balance, Amount | (600) |
Accumulated Other Comprehensive Loss [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | (57) |
Ending Balance, Amount | $ (769) |
Stock-Based Compensation Expe_3
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 19,612 | $ 12,110 | $ 55,334 | $ 34,419 |
Common Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 1,257 | 1,246 | 3,850 | 3,863 |
RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 17,583 | 10,521 | 49,624 | 29,680 |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 772 | $ 343 | $ 1,860 | $ 876 |
Stock-Based Compensation Expe_4
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 19,612 | $ 12,110 | $ 55,334 | $ 34,419 |
Cost of Revenue, Subscription [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 391 | 163 | 985 | 455 |
Cost of Revenue, Professional Services and Other [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 803 | 591 | 2,339 | 1,707 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 5,990 | 3,110 | 16,866 | 9,013 |
Sales and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 7,898 | 5,015 | 22,327 | 13,889 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 4,530 | $ 3,231 | $ 12,817 | $ 9,355 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
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 | $ 563 | $ 414 | $ 1,910 | $ 1,237 |
Segment Information and Geogr_3
Segment Information and Geographic Data - Additional Information (Detail) - Segment | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
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 | 38.00% | 33.00% | 37.00% | 32.00% |
Segment Information and Geogr_4
Segment Information and Geographic Data - Revenues by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 131,826 | $ 97,726 | $ 368,958 | $ 269,071 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 92,388 | 72,930 | 261,034 | 205,556 |
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 30,382 | 19,092 | 83,763 | 49,041 |
Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 9,056 | $ 5,704 | $ 24,161 | $ 14,474 |
Revenue [Member] | Outside Of Americas [Member] | Geographic Concentration Risk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of revenues generated outside of the Americas | 30.00% | 25.00% | 29.00% | 24.00% |
Segment Information and Geogr_5
Segment Information and Geographic Data - Long Lived Assets by Geographical Region (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 51,913 | $ 43,294 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 33,526 | 29,764 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 14,652 | 11,257 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 3,735 | $ 2,273 |
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 | 35.00% | 31.00% |