Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HUBS | |
Entity Registrant Name | HUBSPOT INC | |
Entity Central Index Key | 0001404655 | |
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 | 42,103,120 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 285,126 | $ 111,489 |
Short-term investments | 683,994 | 480,761 |
Accounts receivable — net of allowance for doubtful accounts of $1,464 and $1,317 at March 31, 2019 and December 31, 2018, respectively | 69,249 | 77,100 |
Deferred commission expense | 26,370 | 23,664 |
Restricted cash | 5,569 | 5,175 |
Prepaid expenses and other current assets | 13,143 | 14,229 |
Total current assets | 1,083,451 | 712,418 |
Long-term investments | 14,548 | 11,450 |
Property and equipment, net | 54,995 | 52,468 |
Capitalized software development costs, net | 13,365 | 12,746 |
Right-of-use assets | 159,096 | |
Deferred commission expense, net of current portion | 18,535 | 18,114 |
Other assets | 7,066 | 6,888 |
Intangible assets, net | 4,119 | 4,919 |
Goodwill | 14,950 | 14,950 |
Total assets | 1,370,125 | 833,953 |
Current liabilities: | ||
Accounts payable | 14,859 | 7,810 |
Accrued compensation costs | 21,360 | 23,589 |
Accrued expenses and other current liabilities | 25,284 | 22,305 |
Lease liabilities | 15,928 | |
Deferred revenue | 191,193 | 183,305 |
Total current liabilities | 268,624 | 237,009 |
Lease liabilities, net of current portion | 171,200 | |
Deferred rent, net of current portion | 26,445 | |
Deferred revenue, net of current portion | 2,263 | 2,179 |
Other long-term liabilities | 4,993 | 4,897 |
Convertible senior notes | 324,042 | 318,782 |
Total liabilities | 771,122 | 589,312 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock | 43 | 40 |
Additional paid-in capital | 955,045 | 589,708 |
Accumulated other comprehensive loss | (601) | (723) |
Accumulated deficit | (355,484) | (344,384) |
Total stockholders’ equity | 599,003 | 244,641 |
Total liabilities and stockholders’ equity | $ 1,370,125 | $ 833,953 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 1,464 | $ 1,317 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total revenue | $ 151,798 | $ 114,556 |
Cost of revenues: | ||
Total cost of revenues | 29,578 | 22,377 |
Gross profit | 122,220 | 92,179 |
Operating expenses: | ||
Research and development | 35,177 | 26,352 |
Sales and marketing | 74,905 | 59,910 |
General and administrative | 21,174 | 17,241 |
Total operating expenses | 131,256 | 103,503 |
Loss from operations | (9,036) | (11,324) |
Other expense: | ||
Interest income | 4,174 | 1,824 |
Interest expense | (5,513) | (5,174) |
Other expense | (12) | (283) |
Total other expense | (1,351) | (3,633) |
Loss before income tax expense | (10,387) | (14,957) |
Income tax expense | (713) | (491) |
Net loss | $ (11,100) | $ (15,448) |
Net loss per share, basic and diluted | $ (0.27) | $ (0.41) |
Weighted average common shares used in computing basic and diluted net loss per share: | 40,568 | 37,832 |
Subscription [Member] | ||
Revenues: | ||
Total revenue | $ 144,226 | $ 108,602 |
Cost of revenues: | ||
Total cost of revenues | 21,301 | 15,235 |
Professional Services and Other [Member] | ||
Revenues: | ||
Total revenue | 7,572 | 5,954 |
Cost of revenues: | ||
Total cost of revenues | $ 8,277 | $ 7,142 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (11,100) | $ (15,448) |
Other comprehensive loss: | ||
Foreign currency translation adjustment | (304) | 298 |
Changes in unrealized gain (loss) on investments, net of income taxes of $113 thousand for the three months ended March 31, 2019 and $0 for the three months ended March 31, 2018, respectively | 426 | (379) |
Comprehensive loss | $ (10,978) | $ (15,529) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Changes in unrealized gain (loss) on investments, income taxes | $ 113 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities: | ||
Net loss | $ (11,100) | $ (15,448) |
Adjustments to reconcile net loss to net cash and cash equivalents provided by operating activities | ||
Depreciation and amortization | 6,973 | 5,110 |
Stock-based compensation | 21,205 | 16,046 |
Benefit for deferred income taxes | (28) | |
Amortization of debt discount and issuance costs | 5,260 | 4,908 |
Accretion of bond discount | (2,751) | (1,164) |
Noncash lease expense | 794 | |
Unrealized currency translation | (281) | 36 |
Changes in assets and liabilities | ||
Accounts receivable | 7,758 | 6,863 |
Prepaid expenses and other assets | 886 | 1,880 |
Deferred commission expense | (3,334) | (5,068) |
Right-of-use assets | 5,505 | |
Accounts payable | 4,911 | 166 |
Accrued expenses and other liabilities | (2,071) | 1,674 |
Lease liabilities | (4,110) | |
Deferred rent | (48) | |
Deferred revenue | 8,893 | 10,973 |
Net cash and cash equivalents provided by operating activities | 37,716 | 26,722 |
Investing Activities: | ||
Purchases of investments | (386,501) | (210,886) |
Maturities of investments | 183,460 | 256,250 |
Purchases of property and equipment | (4,265) | (6,239) |
Capitalization of software development costs | (2,821) | (2,616) |
Purchases of strategic investments | (250) | |
Net cash and cash equivalents (used in) provided by investing activities | (210,127) | 36,259 |
Financing Activities: | ||
Proceeds from common stock offering, net of offering costs paid of $256 | 342,739 | |
Employee taxes paid related to the net share settlement of stock-based awards | (1,084) | (2,344) |
Proceeds related to the issuance of common stock under stock plans | 5,690 | 6,113 |
Repayments of finance lease obligations | (118) | (212) |
Net cash and cash equivalents provided by financing activities | 347,227 | 3,557 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (784) | 677 |
Net increase in cash, cash equivalents and restricted cash | 174,032 | 67,215 |
Cash, cash equivalents and restricted cash, beginning of period | 117,114 | 92,784 |
Cash, cash equivalents and restricted cash, end of period | 291,146 | 159,999 |
Supplemental cash flow disclosure: | ||
Cash paid for interest | 15 | |
Cash paid for income taxes | 1,027 | 45 |
Right of use assets obtained in exchange for operating lease liabilities | 12,410 | |
Non-cash investing and financing activities: | ||
Common stock offering costs, incurred but not yet paid | 109 | |
Capital expenditures incurred but not yet paid | $ 2,802 | 1,382 |
Asset retirement obligations | $ 101 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Statement Of Cash Flows [Abstract] | |
Offering costs paid | $ 256 |
Organization and Operations
Organization and Operations | 3 Months Ended |
Mar. 31, 2019 | |
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 we refer to in this document as our Growth Platform, that enables businesses to grow better. Our Growth Platform, comprised of Marketing Hub, Sales Hub, Service Hub, and a free customer relationship management, or CRM system, features integrated applications and tools that enable businesses to create a cohesive and adaptable customer experience throughout the customer lifecycle. 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, 2018, 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, 2019. 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 12, 2019. 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 accounting for leases as described within Note 2 of these consolidated financial statements. On February 19, 2019, the Company closed a common stock offering whereby 2.2 million shares of common stock were sold. The Company received aggregate proceeds of approximately $343.0 million from the offering, net of underwriters’ discounts and commissions, but before deduction of offering expenses of approximately $0.4 million. 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 for stock-based compensation to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance was adopted on January 1, 2019 and did not 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 June 2016, the FASB issued guidance that introduces a new methodology for accounting for credit losses on financial instruments. The guidance establishes a new forward-looking "expected loss model" that requires entities to estimate current expected credit losses on accounts receivable and financial instruments by using all practical and relevant information. The guidance will be effective for the Company on January 1, 2020. The Company is currently evaluating the impact of this guidance on the consolidated financial statements. In February 2016, the FASB issued guidance related to leases to increase transparency and comparability among organizations by requiring the recognition of right-of-use assets and lease liabilities on the balance sheet, while maintaining consistency with historical accounting for the recognition of expense on their income statements. Most prominent among the changes in the guidance is the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases. Additional disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted the updated guidance as of January 1, 2019 using a modified retrospective transition method with a cumulative-effect adjustment as of the adoption date, as permitted by the guidance. Comparative periods are not adjusted. See Note 2 of these consolidated financial statements for further details. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 2. Leases Adoption of Updated Leasing Guidance On January 1, 2019, the Company adopted the new lease guidance using a modified retrospective transition method applied to those leases which were not completed as of January 1, 2019. Results for reporting periods beginning after December 31, 2018 are presented under the new guidance, while prior period comparative amounts are not adjusted and continue to be reported in accordance with historical guidance. The Company applied the new standard using the package of practical expedients permitted under the transition guidance where the Company: • did not reassess whether any expired or existing contracts contain a lease; • did not reassess the classification of existing leases; and • did not reassess initial direct costs for any existing leases. In addition, the Company elected the hindsight practical expedient to determine the lease term for existing leases. The resulting impact, as of the adoption date, to the consolidated balance sheet of applying the new guidance in 2019 versus the prior guidance was an increase to right-of-use assets of $152.2 million, a decrease to other assets of $0.3 million, an increase to total assets of $151.9 million, an increase to short-term lease liabilities of $14.1 million, a decrease to accrued expenses and other current liabilities of $0.5 million, an increase to total current liabilities of $13.5 million, an increase to long-term lease liabilities of $164.8 million, a decrease to deferred rent, net of current portion of $26.4 million and an increase to total liabilities of $151.9 million. There was no impact to stockholders’ equity or the consolidated statements of operations as a result of adopting the new guidance. There was no impact to total operating or financing cash flows of applying the new guidance in 2019 versus the prior guidance other than renaming or adding items to the statements of cash flows to conform to the accounting for, and presentation of, the new standard. The Company determines if an arrangement contains a lease at inception and does not separate lease and non-lease components of an arrangement determined to contain a lease. Operating and finance leases with a duration of less than 12 months are excluded from right-of-use-assets and lease liabilities and related expense is recorded as incurred. The Company leases its office facilities under non-cancelable operating leases that expire at various dates through May 2031. Certain leases contain optional termination dates. The table below only considers lease obligations through the optional termination dates, as the Company is not reasonably certain to extend lease agreements beyond those dates. The following table provides a summary of lease assets and liabilities as of March 31, 2019: Leases Balance sheet classification Amount (in thousands) Assets: Operating lease assets Right-of-use assets $ 159,096 Finance lease assets Fixed assets 229 Total leased assets $ 159,325 Liabilities: Current Operating Lease liabilities $ 15,928 Finance Accrued expenses and other current liabilities 194 Noncurrent Operating Lease liabilities, net of current portion 171,200 Total lease liabilities $ 187,322 Operating lease costs were $6.8 million for the three months ended March 31, 2019, net of $0.6 million of operating sublease income related to certain office facilities subleased to third parties. Finance lease costs consisted of $0.1 million related to the amortization finance lease assets and $0 of interest expense for the three months ended March 31, 2019. The following table provides a reconciliation between non-cancelable lease commitments and lease liabilities as of March 31, 2019: Operating leases Finance Leases Lease commitments (Note 10) $ 346,241 $ 208 Less: Legally binding minimum lease payments for leases signed but not yet commenced (104,259 ) — Less: Present value discount (54,854 ) — Less: Portion representing interest — (14 ) Total lease liabilities $ 187,128 $ 194 Lease Term and Discount Rate The Company uses its estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of operating lease payments. To determine the estimated incremental borrowing rate, the Company uses publicly available credit ratings for peer companies. The Company estimates the incremental borrowing rate using yields for maturities that are in line with the duration of the lease payments. The following table provides weighted average remaining lease terms and weighted average discount rate for operating and finance leases as of March 31, 2019: Weighted-average remaining lease term: Operating leases 9.2 years Finance leases 0.7 years Weighted-average discount rate: Operating leases 5.8% Finance leases 3.8% Other Information Cash payments related to our operating lease liabilities were $5.6 million for the three months ended March 31, 2019. Cash payments related to our financing lease liabilities were $0.1 million for the three months ended March 31, 2019. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 3. Revenues Disaggregation of Revenue The Company provides disaggregation of revenue based on geographic region (Note 14) and based on the subscription versus Deferred Revenue, Deferred Commission Expense, and Accrued Expenses and Other Current Liabilities 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 three months ended March 31, 2019 increased by $8.0 million resulting from $159.8 million of additional invoicing and was offset by revenue recognized of $151.8 million during the same period. $94.4 million of revenue was recognized during the three month period ended March 31, 2019 that was included in deferred revenue at the beginning of the period. $134.4 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. Additional contract liabilities of $1.3 million and $1.6 million were included in accrued expenses and other current liabilities on the consolidated balance sheet as of March 31, 2019 and December 31, 2018. 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 one to three years. The one 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. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 4. 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 March 31, 2019 2018 Net loss $ (11,100 ) $ (15,448 ) Weighted-average common shares outstanding — basic 40,568 37,832 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 40,568 37,832 Net loss per share, basic and diluted $ (0.27 ) $ (0.41 ) 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 March 31, 2019 2018 (in thousands) Options to purchase common shares 1,734 2,142 RSUs 1,911 2,284 Conversion option of the 2022 Notes 1,696 383 Common stock warrants 1,134 — ESPP 8 8 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 May 3, 2019, no holders have converted or indicated their intention to convert the 2022 Notes. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 5. Fair Value of Financial Instruments The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities at March 31, 2019 and December 31, 2018: March 31, 2019 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 2,809 $ — $ — $ 2,809 Commercial paper — 6,801 — 6,801 Corporate bonds — 61,191 — 61,191 U.S. Treasury securities — 785,382 — 785,382 Restricted cash: Certificates of deposit — 6,020 — 6,020 Total $ 2,809 $ 859,394 $ — $ 862,203 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 1,579 $ — $ — $ 1,579 Commercial paper — 8,242 — 8,242 Corporate bonds — 70,728 — 70,728 U.S. Treasury securities — 413,241 — 413,241 Restricted cash: Certificates of deposit — 5,625 — 5,625 Total $ 1,579 $ 497,836 $ — $ 499,415 The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. The fair value of the Company’s investments in certain money market funds is their face value and such instruments are classified as Level 1 and are included in cash and cash equivalents on the consolidated balance sheets. At March 31, 2019 and December 31, 2018, 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 March 31, 2019 the fair value of the 2022 Notes was $711.5 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 $4.0 million of strategic investments without readily determinable fair values at March 31, 2019 and December 31, 2018. 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 March 31, 2019 and December 31, 2018. March 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 6,803 $ — $ (2 ) $ 6,801 Corporate bonds 61,252 14 (75 ) 61,191 U.S. Treasury securities 630,276 292 (18 ) 630,550 Total $ 698,331 $ 306 $ (95 ) $ 698,542 December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 8,256 $ — $ (14 ) $ 8,242 Corporate bonds 70,958 3 (233 ) 70,728 U.S. Treasury securities 413,323 56 (138 ) 413,241 Total $ 492,537 $ 59 $ (385 ) $ 492,211 For all of our securities for which the amortized cost basis was greater than the fair value at March 31, 2019, the Company has concluded that there is no plan to sell the security nor is it more likely than not that the Company would be required to sell the security before its anticipated recovery. In making the determination as to whether the unrealized loss is other-than-temporary, the Company considered the length of time and extent the investment has been in an unrealized loss position, the financial condition and near-term prospects of the issuers, the issuers’ credit rating and the time to maturity. Contractual Maturities The contractual maturities of short-term and long-term investments held at March 31, 2019 and December 31, 2018 are as follows: March 31, 2019 December 31, 2018 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value (in thousands) (in thousands) Due within one year $ 683,783 $ 683,994 $ 481,071 $ 480,761 Due after 1 year through 2 years 14,548 14,548 11,466 11,450 Total $ 698,331 $ 698,542 $ 492,537 $ 492,211 |
Restricted cash
Restricted cash | 3 Months Ended |
Mar. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Restricted Cash | 6. 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 three months ended March 31, 2019 and 2018. March 31, 2019 March 31, 2018 December 31, 2018 (in thousands) Cash and cash equivalents $ 285,126 $ 154,031 $ 111,489 Restricted cash 5,569 5,968 5,175 Restricted cash, included in other assets 451 — 450 Total cash, cash equivalents, and restricted cash $ 291,146 $ 159,999 $ 117,114 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 | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 7. Property and Equipment, Net Property and equipment, net consists of the following: March 31, 2019 December 31, 2018 (in thousands) Computer equipment and purchased software $ 8,448 $ 8,163 Employee computer equipment 9,727 8,972 Furniture and fixtures 13,162 13,019 Office equipment 2,549 2,551 Leasehold improvements 45,773 42,894 Equipment under capital lease 3,450 3,450 Internal-use software 5,807 5,363 Construction in progress 3,953 2,498 Total property and equipment 92,869 86,910 Less accumulated depreciation and amortization (37,874 ) (34,442 ) Property and equipment, net $ 54,995 $ 52,468 Depreciation and amortization expense on property and equipment was $3.7 million for the three months ended March 31 2019 and $3.1 million for the three months ended March 31, 2018. |
Capitalized Software Developmen
Capitalized Software Development Costs | 3 Months Ended |
Mar. 31, 2019 | |
Research And Development [Abstract] | |
Capitalized Software Development Costs | 8. Capitalized Software Development Costs Capitalized software development costs, exclusive of those recorded within property and equipment, consisted of the following: March 31, 2019 December 31, 2018 (in thousands) Gross capitalized software development costs $ 49,447 $ 46,169 Accumulated amortization (36,082 ) (33,423 ) Capitalized software development costs, net $ 13,365 $ 12,746 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 March 31, 2019 2018 (in thousands) Software development costs capitalized $ 3,278 $ 2,945 Stock-based compensation included in capitalized software development costs $ 508 $ 550 Amortization of capitalized software development costs $ 2,495 $ 1,975 |
0.25% Convertible Senior Notes,
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 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 June 30, 2019. As of May 3, 2019 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 March 31, 2019 As of December 31, 2018 (in thousands) Principal $ 400,000 $ 400,000 Unamortized debt discount (70,681 ) (75,575 ) Unamortized issuance costs (5,277 ) (5,643 ) Net carrying amount $ 324,042 $ 318,782 Interest expense related to the 2022 Notes is as follows: Three Months Ended March 31, 2019 2018 (in thousands) Contractual interest expense $ 250 $ 250 Amortization of debt discount 4,894 4,567 Amortization of issuance costs 366 341 Total interest expense $ 5,510 $ 5,158 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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. Lease expense for non-cancellable operating leases with free rental periods or scheduled rent increases is recognized on a straight-line basis over the terms of the leases. Improvement reimbursements from landlords of $13.8 million are being amortized on a straight-line basis into lease expense over the terms of the leases. Certain leases contain optional termination dates. The table below only includes payments up to the optional termination date. If the Company were to extended leases beyond the optional termination date the future commitments would increase by approximately $82.4 million. Included in the table below are operating lease commitments for leases that have not yet commenced of approximately $104.3 million for facilities in the United States, Ireland, and Australia with lease terms of approximately 9, 12, and 3 years, respectively. Future minimum payments under all operating and fiancé lease agreements as of March 31, 2019 are as follows: Operating Finance (in thousands) 2019 $ 21,826 178 2020 33,864 30 2021 36,178 2022 35,460 2023 35,619 Thereafter 183,294 Total $ 346,241 208 Less: Portion representing interest (14 ) Capital lease obligation 194 In April 2019, the Company entered into a new 10 year lease in the U.S. Additionally, the Company entered into a new 3 year property lease in Singapore. In conjunction with the new Singapore lease existing leases were extended. The new leases commence through December 2019. The Company will pay an aggregate of approximately $31.2 million in incremental rent over the lease terms. As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, ASC 840, Leases Operating Finance (in thousands) 2019 $ 27,755 $ 298 2020 33,769 33 2021 35,414 — 2022 35,314 — 2023 35,686 — Thereafter 184,341 — Total $ 352,279 331 Less: Portion representing interest (20 ) Capital lease obligation $ 311 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, 2018 and related notes thereto contained in the Company’s Annual Report on Form 10-K, except as disclosed below: In March 2019, the Company exercised an option to extend an agreement with a technology vendor for an additional two years through June 2023. The Company’s additional contractual obligation under this agreement are approximately $57 million over the additional two years. 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018. Common Stock, $0.001 Par Value Additional Paid-In Accumulated Other Comprehensive Accumulated Shares Amount Capital Income (Loss) Deficit Total Balances at December 31, 2018 39,300 $ 40 $ 589,708 $ (723 ) $ (344,384 ) $ 244,641 Issuance of common stock under stock plans, net of shares withheld for employee taxes 440 1 1,161 — — 1,162 Issuance of common stock in relation to common stock offering, net of offering costs incurred $365 2,151 2 342,628 — — 342,630 Stock-based compensation — — 21,548 — 21,548 Cumulative translation adjustment — — — (304 ) — (304 ) Unrealized gain on investments, net of income taxes of $113 — — — 426 — 426 Net loss — — — (11,100 ) (11,100 ) Balances at March 31, 2019 41,891 $ 43 $ 955,045 $ (601 ) $ (355,484 ) $ 599,003 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 571 1 3,877 — — 3,878 Stock-based compensation — — 16,596 — — 16,596 Cumulative adjustment from adoption of revenue recognition standard — — — — 5,793 5,793 Cumulative translation adjustment — — — 298 — 298 Unrealized gain on investments, net of income taxes of $20 — — — (379 ) — (379 ) Net loss — — — — (15,448 ) (15,448 ) Balances at March 31, 2018 38,074 $ 39 $ 516,934 $ (138 ) $ (295,737 ) $ 221,098 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019. Cumulative Translation Adjustment Unrealized Gain on Investments Total (in thousands) Beginning balance at January 1, 2019 $ (397 ) $ (326 ) $ (723 ) Other comprehensive loss before reclassifications (304 ) 426 122 Amounts reclassified from accumulated other comprehensive income — — — Ending balance at March 31, 2019 $ (701 ) $ 100 $ (601 ) |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 3 Months Ended |
Mar. 31, 2019 | |
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 End March 31, 2019 2018 (in thousands) Options $ 1,290 $ 1,334 RSUs 18,736 14,241 Employee stock purchase plan 1,179 471 Total stock-based compensation expense $ 21,205 $ 16,046 Effect of stock-based compensation expense on income by line item: Three Months End March 31, 2019 2018 (in thousands) Cost of revenue, subscription $ 614 $ 277 Cost of revenue, professional services and other 1,019 690 Research and development 7,091 4,764 Sales and marketing 7,804 6,492 General and administrative 4,677 3,823 Total stock-based compensation expense $ 21,205 $ 16,046 Capitalized software development costs excluded from stock-based compensation expense is $508 thousand for the three months ended March 31, 2019 and $550 thousand for the three months ended March 31, 2018. |
Segment Information and Geograp
Segment Information and Geographic Data | 3 Months Ended |
Mar. 31, 2019 | |
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 End March 31, 2019 2018 Americas $ 104,290 $ 82,158 Europe 36,676 25,209 Asia Pacific 10,832 7,189 Total $ 151,798 $ 114,556 Percentage of revenues generated outside of the Americas 31 % 28 % Revenue derived from customers outside the United States (international) was approximately 39% of total revenue in the three months ended March 31, 2019 and 36% of total revenue in the three months ended March 31, 2018. Total long-lived assets by geographical region: As of March 31, 2019 As of December 31, 2018 Americas $ 38,344 $ 35,186 Europe 13,631 13,913 Asia Pacific 3,020 3,369 Total long-lived assets $ 54,995 $ 52,468 Percentage of long-lived assets held outside of the Americas 30 % 33 % |
Organization and Operations (Po
Organization and Operations (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 for stock-based compensation to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance was adopted on January 1, 2019 and did not 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 June 2016, the FASB issued guidance that introduces a new methodology for accounting for credit losses on financial instruments. The guidance establishes a new forward-looking "expected loss model" that requires entities to estimate current expected credit losses on accounts receivable and financial instruments by using all practical and relevant information. The guidance will be effective for the Company on January 1, 2020. The Company is currently evaluating the impact of this guidance on the consolidated financial statements. In February 2016, the FASB issued guidance related to leases to increase transparency and comparability among organizations by requiring the recognition of right-of-use assets and lease liabilities on the balance sheet, while maintaining consistency with historical accounting for the recognition of expense on their income statements. Most prominent among the changes in the guidance is the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases. Additional disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted the updated guidance as of January 1, 2019 using a modified retrospective transition method with a cumulative-effect adjustment as of the adoption date, as permitted by the guidance. Comparative periods are not adjusted. See Note 2 of these consolidated financial statements for further details. |
Revenue | Revenues Disaggregation of Revenue The Company provides disaggregation of revenue based on geographic region (Note 14) and based on the subscription versus Deferred Revenue, Deferred Commission Expense, and Accrued Expenses and Other Current Liabilities 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 three months ended March 31, 2019 increased by $8.0 million resulting from $159.8 million of additional invoicing and was offset by revenue recognized of $151.8 million during the same period. $94.4 million of revenue was recognized during the three month period ended March 31, 2019 that was included in deferred revenue at the beginning of the period. $134.4 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. Additional contract liabilities of $1.3 million and $1.6 million were included in accrued expenses and other current liabilities on the consolidated balance sheet as of March 31, 2019 and December 31, 2018. 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 one to three years. The one 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. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Lease Assets and Liabilities | The following table provides a summary of lease assets and liabilities as of March 31, 2019: Leases Balance sheet classification Amount (in thousands) Assets: Operating lease assets Right-of-use assets $ 159,096 Finance lease assets Fixed assets 229 Total leased assets $ 159,325 Liabilities: Current Operating Lease liabilities $ 15,928 Finance Accrued expenses and other current liabilities 194 Noncurrent Operating Lease liabilities, net of current portion 171,200 Total lease liabilities $ 187,322 |
Summary of Reconciliation between Non-cancelable Lease Commitments and Lease Liabilities | The following table provides a reconciliation between non-cancelable lease commitments and lease liabilities as of March 31, 2019: Operating leases Finance Leases Lease commitments (Note 10) $ 346,241 $ 208 Less: Legally binding minimum lease payments for leases signed but not yet commenced (104,259 ) — Less: Present value discount (54,854 ) — Less: Portion representing interest — (14 ) Total lease liabilities $ 187,128 $ 194 |
Summary of Weighted Average Remaining Lease Terms and Weighted Average Discount Rate for Operating and Finance Leases | The following table provides weighted average remaining lease terms and weighted average discount rate for operating and finance leases as of March 31, 2019: Weighted-average remaining lease term: Operating leases 9.2 years Finance leases 0.7 years Weighted-average discount rate: Operating leases 5.8% Finance leases 3.8% |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Denominator Used in Calculation of Basic and Diluted Net Loss Per Share | A reconciliation of the denominator used in the calculation of basic and diluted net loss per share is as follows: Three Months Ended March 31, 2019 2018 Net loss $ (11,100 ) $ (15,448 ) Weighted-average common shares outstanding — basic 40,568 37,832 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 40,568 37,832 Net loss per share, basic and diluted $ (0.27 ) $ (0.41 ) |
Schedule of Potentially Dilutive Common Stock Equivalents | The following table contains all potentially dilutive common stock equivalents. As of March 31, 2019 2018 (in thousands) Options to purchase common shares 1,734 2,142 RSUs 1,911 2,284 Conversion option of the 2022 Notes 1,696 383 Common stock warrants 1,134 — ESPP 8 8 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements of Financial Assets and Liabilities | The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities at March 31, 2019 and December 31, 2018: March 31, 2019 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 2,809 $ — $ — $ 2,809 Commercial paper — 6,801 — 6,801 Corporate bonds — 61,191 — 61,191 U.S. Treasury securities — 785,382 — 785,382 Restricted cash: Certificates of deposit — 6,020 — 6,020 Total $ 2,809 $ 859,394 $ — $ 862,203 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 1,579 $ — $ — $ 1,579 Commercial paper — 8,242 — 8,242 Corporate bonds — 70,728 — 70,728 U.S. Treasury securities — 413,241 — 413,241 Restricted cash: Certificates of deposit — 5,625 — 5,625 Total $ 1,579 $ 497,836 $ — $ 499,415 |
Summary of Composition of Short and Long Term Investments | The following tables summarize the composition of our short- and long-term investments at March 31, 2019 and December 31, 2018. March 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 6,803 $ — $ (2 ) $ 6,801 Corporate bonds 61,252 14 (75 ) 61,191 U.S. Treasury securities 630,276 292 (18 ) 630,550 Total $ 698,331 $ 306 $ (95 ) $ 698,542 December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 8,256 $ — $ (14 ) $ 8,242 Corporate bonds 70,958 3 (233 ) 70,728 U.S. Treasury securities 413,323 56 (138 ) 413,241 Total $ 492,537 $ 59 $ (385 ) $ 492,211 |
Summary of Contractual Maturities of Short and Long Term Investments | The contractual maturities of short-term and long-term investments held at March 31, 2019 and December 31, 2018 are as follows: March 31, 2019 December 31, 2018 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value (in thousands) (in thousands) Due within one year $ 683,783 $ 683,994 $ 481,071 $ 480,761 Due after 1 year through 2 years 14,548 14,548 11,466 11,450 Total $ 698,331 $ 698,542 $ 492,537 $ 492,211 |
Restricted cash (Tables)
Restricted cash (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 and 2018. March 31, 2019 March 31, 2018 December 31, 2018 (in thousands) Cash and cash equivalents $ 285,126 $ 154,031 $ 111,489 Restricted cash 5,569 5,968 5,175 Restricted cash, included in other assets 451 — 450 Total cash, cash equivalents, and restricted cash $ 291,146 $ 159,999 $ 117,114 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following: March 31, 2019 December 31, 2018 (in thousands) Computer equipment and purchased software $ 8,448 $ 8,163 Employee computer equipment 9,727 8,972 Furniture and fixtures 13,162 13,019 Office equipment 2,549 2,551 Leasehold improvements 45,773 42,894 Equipment under capital lease 3,450 3,450 Internal-use software 5,807 5,363 Construction in progress 3,953 2,498 Total property and equipment 92,869 86,910 Less accumulated depreciation and amortization (37,874 ) (34,442 ) Property and equipment, net $ 54,995 $ 52,468 |
Capitalized Software Developm_2
Capitalized Software Development Costs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 December 31, 2018 (in thousands) Gross capitalized software development costs $ 49,447 $ 46,169 Accumulated amortization (36,082 ) (33,423 ) Capitalized software development costs, net $ 13,365 $ 12,746 |
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 March 31, 2019 2018 (in thousands) Software development costs capitalized $ 3,278 $ 2,945 Stock-based compensation included in capitalized software development costs $ 508 $ 550 Amortization of capitalized software development costs $ 2,495 $ 1,975 |
0.25% Convertible Senior Note_2
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Instrument [Line Items] | |
Schedule of Interest Expense | Interest expense related to the 2022 Notes is as follows: Three Months Ended March 31, 2019 2018 (in thousands) Contractual interest expense $ 250 $ 250 Amortization of debt discount 4,894 4,567 Amortization of issuance costs 366 341 Total interest expense $ 5,510 $ 5,158 |
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 March 31, 2019 As of December 31, 2018 (in thousands) Principal $ 400,000 $ 400,000 Unamortized debt discount (70,681 ) (75,575 ) Unamortized issuance costs (5,277 ) (5,643 ) Net carrying amount $ 324,042 $ 318,782 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments | Future minimum payments under all operating and fiancé lease agreements as of March 31, 2019 are as follows: Operating Finance (in thousands) 2019 $ 21,826 178 2020 33,864 30 2021 36,178 2022 35,460 2023 35,619 Thereafter 183,294 Total $ 346,241 208 Less: Portion representing interest (14 ) Capital lease obligation 194 As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, ASC 840, Leases Operating Finance (in thousands) 2019 $ 27,755 $ 298 2020 33,769 33 2021 35,414 — 2022 35,314 — 2023 35,686 — Thereafter 184,341 — Total $ 352,279 331 Less: Portion representing interest (20 ) Capital lease obligation $ 311 |
Changes in Stockholders' Equi_2
Changes in Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Summary of Changes in Stockholders' Equity | The following tables summarize the changes in stockholders’ equity for the three months ended March 31, 2019 and 2018. Common Stock, $0.001 Par Value Additional Paid-In Accumulated Other Comprehensive Accumulated Shares Amount Capital Income (Loss) Deficit Total Balances at December 31, 2018 39,300 $ 40 $ 589,708 $ (723 ) $ (344,384 ) $ 244,641 Issuance of common stock under stock plans, net of shares withheld for employee taxes 440 1 1,161 — — 1,162 Issuance of common stock in relation to common stock offering, net of offering costs incurred $365 2,151 2 342,628 — — 342,630 Stock-based compensation — — 21,548 — 21,548 Cumulative translation adjustment — — — (304 ) — (304 ) Unrealized gain on investments, net of income taxes of $113 — — — 426 — 426 Net loss — — — (11,100 ) (11,100 ) Balances at March 31, 2019 41,891 $ 43 $ 955,045 $ (601 ) $ (355,484 ) $ 599,003 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 571 1 3,877 — — 3,878 Stock-based compensation — — 16,596 — — 16,596 Cumulative adjustment from adoption of revenue recognition standard — — — — 5,793 5,793 Cumulative translation adjustment — — — 298 — 298 Unrealized gain on investments, net of income taxes of $20 — — — (379 ) — (379 ) Net loss — — — — (15,448 ) (15,448 ) Balances at March 31, 2018 38,074 $ 39 $ 516,934 $ (138 ) $ (295,737 ) $ 221,098 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders’ equity, for the three months ended March 31, 2019. Cumulative Translation Adjustment Unrealized Gain on Investments Total (in thousands) Beginning balance at January 1, 2019 $ (397 ) $ (326 ) $ (723 ) Other comprehensive loss before reclassifications (304 ) 426 122 Amounts reclassified from accumulated other comprehensive income — — — Ending balance at March 31, 2019 $ (701 ) $ 100 $ (601 ) |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 End March 31, 2019 2018 (in thousands) Options $ 1,290 $ 1,334 RSUs 18,736 14,241 Employee stock purchase plan 1,179 471 Total stock-based compensation expense $ 21,205 $ 16,046 |
Effect of Stock-Based Compensation on Income by Line Item | Effect of stock-based compensation expense on income by line item: Three Months End March 31, 2019 2018 (in thousands) Cost of revenue, subscription $ 614 $ 277 Cost of revenue, professional services and other 1,019 690 Research and development 7,091 4,764 Sales and marketing 7,804 6,492 General and administrative 4,677 3,823 Total stock-based compensation expense $ 21,205 $ 16,046 |
Segment Information and Geogr_2
Segment Information and Geographic Data (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenues by Geographical Region | Revenues by geographical region: Three Months End March 31, 2019 2018 Americas $ 104,290 $ 82,158 Europe 36,676 25,209 Asia Pacific 10,832 7,189 Total $ 151,798 $ 114,556 Percentage of revenues generated outside of the Americas 31 % 28 % |
Long Lived Assets by Geographical Region | Total long-lived assets by geographical region: As of March 31, 2019 As of December 31, 2018 Americas $ 38,344 $ 35,186 Europe 13,631 13,913 Asia Pacific 3,020 3,369 Total long-lived assets $ 54,995 $ 52,468 Percentage of long-lived assets held outside of the Americas 30 % 33 % |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | Feb. 19, 2019 | Mar. 31, 2019 |
Organization And Operations [Line Items] | ||
Aggregate proceeds from offering, net of underwriters' discounts and commissions | $ 343,000 | $ 342,739 |
Offering expenses | $ 256 | |
Common Stock [Member] | ||
Organization And Operations [Line Items] | ||
Common stock sold to public | 2,200 | 2,151 |
Offering expenses | $ 400 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | ||
Right-of-use assets | $ 159,096 | |
Total assets | 1,370,125 | $ 833,953 |
Short-term lease liabilities | 15,928 | |
Accrued expenses and other current liabilities | 25,284 | 22,305 |
Long-term lease liabilities | 171,200 | |
Deferred rent, net of current portion | 26,445 | |
Total liabilities | 771,122 | $ 589,312 |
Operating lease costs | 6,800 | |
Operating sublease income | 600 | |
Finance lease costs related to amortization finance lease assets | 100 | |
Finance lease interest expense | 0 | |
Cash payments related to operating lease liabilities | 5,600 | |
Cash payments related to financing lease liabilities | 100 | |
Adjustment [Member] | ASC Topic 842 [Member] | ||
Lessee Lease Description [Line Items] | ||
Right-of-use assets | 152,200 | |
Other assets | 300 | |
Total assets | 151,900 | |
Short-term lease liabilities | 14,100 | |
Accrued expenses and other current liabilities | 500 | |
Total current liabilities | 13,500 | |
Long-term lease liabilities | 164,800 | |
Deferred rent, net of current portion | 26,400 | |
Total liabilities | $ 151,900 |
Leases - Summary of Lease Asset
Leases - Summary of Lease Assets and Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Assets And Liabilities Lessee [Abstract] | |
Right-of-use assets | $ 159,096 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseRightOfUseAsset |
Finance lease assets | $ 229 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet |
Total leased assets | $ 159,325 |
Lease liabilities | $ 15,928 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityCurrent |
Finance lease current | $ 194 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | hubs:AccruedExpensesAndOtherCurrentLiabilities |
Lease liabilities, net of current portion | $ 171,200 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityNoncurrent |
Total lease liabilities | $ 187,322 |
Leases - Summary of Reconciliat
Leases - Summary of Reconciliation between Non-cancelable Lease Commitments and Lease Liabilities (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Lease commitments, Operating leases | $ 346,241 |
Less: Legally binding minimum lease payments for leases signed but not yet commenced, Operating leases | (104,259) |
Less: Present value discount, Operating leases | (54,854) |
Total lease liabilities, Operating leases | 187,128 |
Lease commitments, Finance leases | 208 |
Less: Present value discount, Finance leases | (14) |
Less: Portion representing interest, Finance leases | (14) |
Total lease liabilities, finance leases | $ 194 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Terms and Weighted Average Discount Rate for Operating and Finance Leases (Detail) | Mar. 31, 2019 |
Weighted-average remaining lease term: | |
Operating leases | 9 years 2 months 12 days |
Finance leases | 8 months 12 days |
Weighted-average discount rate: | |
Operating leases | 5.80% |
Finance leases | 3.80% |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Additions in deferred revenue | $ 8,000 | |||
Additional Invoicing | 159,800 | |||
Total revenues | 151,798 | $ 114,556 | ||
Deferred revenue, revenue recognized | $ 94,400 | |||
Revenue remaining performance obligation, contracts exceeds one year | $ 134,400 | |||
Revenue remaining performance obligation contract period | 1 year | |||
Revenue remaining performance obligation percentage recognized | 94.00% | |||
Short-term deferred revenue | $ 191,193 | $ 183,305 | ||
Increase in deferred commission expense | 3,100 | |||
Incremental costs of deferred sales commission expense | 9,900 | |||
Amortization of deferred commission expense | $ 6,800 | |||
Minimum [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Amortization period of deferred commissions | 1 year | |||
Maximum [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Amortization period of deferred commissions | 3 years | |||
Accrued Expenses and Other Current Liabilities [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Short-term deferred revenue | $ 1,300 | $ 1,600 |
Revenues - Additional Informa_2
Revenues - Additional Information1 (Detail) | Mar. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue remaining performance obligations recognition period | 24 months |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share Basic And Diluted [Abstract] | ||
Net loss | $ (11,100) | $ (15,448) |
Weighted-average common shares outstanding — basic | 40,568 | 37,832 |
Weighted-average common shares, outstanding — diluted | 40,568 | 37,832 |
Net loss per share, basic and diluted | $ (0.27) | $ (0.41) |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Potentially Dilutive Common Stock Equivalents (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | 1,734 | 2,142 |
RSUs [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 1,911 | 2,284 |
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 | 1,696 | 383 |
Common Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 1,134 | |
ESPP [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 8 | 8 |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Detail) - 0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | 3 Months Ended |
Mar. 31, 2019d$ / 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 | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | $ 698,542 | $ 492,211 |
Fair value of financial assets | 862,203 | 499,415 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 2,809 | 1,579 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 859,394 | 497,836 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of cash and cash equivalents | 2,809 | 1,579 |
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 | 2,809 | 1,579 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 6,801 | 8,242 |
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 | 6,801 | 8,242 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 61,191 | 70,728 |
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 | 61,191 | 70,728 |
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 | 785,382 | 413,241 |
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 | 785,382 | 413,241 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of restricted cash | 6,020 | 5,625 |
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 | $ 6,020 | $ 5,625 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other assets | $ 7,066 | $ 6,888 |
Strategic Investments [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other assets | 4,000 | $ 4,000 |
2022 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value of notes | $ 711,500 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Summary of Composition of Short and Long Term Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 698,331 | $ 492,537 |
Unrealized Gains | 306 | 59 |
Unrealized Losses | (95) | (385) |
Aggregate Fair Value | 698,542 | 492,211 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,803 | 8,256 |
Unrealized Losses | (2) | (14) |
Aggregate Fair Value | 6,801 | 8,242 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 61,252 | 70,958 |
Unrealized Gains | 14 | 3 |
Unrealized Losses | (75) | (233) |
Aggregate Fair Value | 61,191 | 70,728 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 630,276 | 413,323 |
Unrealized Gains | 292 | 56 |
Unrealized Losses | (18) | (138) |
Aggregate Fair Value | $ 630,550 | $ 413,241 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Amortized Cost Basis, Due within one year | $ 683,783 | $ 481,071 |
Amortized Cost Basis, Due after 1 year through 2 years | 14,548 | 11,466 |
Amortized Cost | 698,331 | 492,537 |
Aggregate Fair Value, Due within one year | 683,994 | 480,761 |
Aggregate Fair Value, Due after 1 year through 2 years | 14,548 | 11,450 |
Aggregate Fair Value, Total | $ 698,542 | $ 492,211 |
Restricted cash - Summary of Re
Restricted cash - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Cash And Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 285,126 | $ 111,489 | $ 154,031 |
Restricted cash | 5,569 | 5,175 | 5,968 |
Restricted cash, included in other assets | $ 451 | $ 450 | |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | |
Total cash, cash equivalents, and restricted cash | $ 291,146 | $ 117,114 | $ 159,999 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 92,869 | $ 86,910 |
Less accumulated depreciation and amortization | (37,874) | (34,442) |
Property and equipment, net | 54,995 | 52,468 |
Computer Equipment and Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 8,448 | 8,163 |
Employee Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 9,727 | 8,972 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 13,162 | 13,019 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,549 | 2,551 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 45,773 | 42,894 |
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 | 5,807 | 5,363 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 3,953 | $ 2,498 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization | $ 3.7 | $ 3.1 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Capitalized Computer Software Net [Abstract] | ||
Gross capitalized software development costs | $ 49,447 | $ 46,169 |
Accumulated amortization | (36,082) | (33,423) |
Capitalized software development costs, net | $ 13,365 | $ 12,746 |
Capitalized Software Developm_4
Capitalized Software Development Costs - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
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) - Internal Use Software [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Capitalized Computer Software [Line Items] | ||
Software development costs capitalized | $ 3,278 | $ 2,945 |
Stock-based compensation included in capitalized software development costs | 508 | 550 |
Amortization of capitalized software development costs | $ 2,495 | $ 1,975 |
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 | 3 Months Ended |
May 31, 2017USD ($)d | Mar. 31, 2019 | |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 324,042 | $ 318,782 |
0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 400,000 | 400,000 |
Unamortized debt discount | (70,681) | (75,575) |
Unamortized issuance costs | (5,277) | (5,643) |
Net carrying amount | $ 324,042 | $ 318,782 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 250 | $ 250 |
Amortization of debt discount | 4,894 | 4,567 |
Amortization of issuance costs | 366 | 341 |
Total interest expense | $ 5,510 | $ 5,158 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Operating And Capital Leased Assets [Line Items] | ||||
Improvement reimbursements from landlords | $ 13,800 | |||
Increase in future lease commitments | 82,400 | |||
Lease operating lease commitments that have not yet commenced | $ 104,259 | $ 104,259 | ||
Rent payable | $ 352,279 | |||
Agreement maturity period | 2023-06 | |||
Renewal Agreement [Member] | Web Hosting Vendor [Member] | ||||
Operating And Capital Leased Assets [Line Items] | ||||
Lessee, operating lease, existence of option to extend | true | |||
Description of option to extend lease facility | In March 2019, the Company exercised an option to extend an agreement with a technology vendor for an additional two years through June 2023. | |||
Extended renewal agreement term | 2 years | 2 years | ||
Contractual obligation over additional two years | $ 57,000 | $ 57,000 | ||
Lease Commencement, April 2019 [Member] | ||||
Operating And Capital Leased Assets [Line Items] | ||||
Operating lease term | 3 years | |||
Lease commencement date | 2019-12 | |||
Rent payable | $ 31,200 | |||
United States [Member] | ||||
Operating And Capital Leased Assets [Line Items] | ||||
Lease operating lease commitments that have not yet commenced | $ 104,300 | $ 104,300 | ||
Operating lease term | 9 years | 9 years | ||
United States [Member] | Lease Commencement, April 2019 [Member] | ||||
Operating And Capital Leased Assets [Line Items] | ||||
Operating lease term | 10 years | |||
Ireland [Member] | ||||
Operating And Capital Leased Assets [Line Items] | ||||
Lease operating lease commitments that have not yet commenced | $ 104,300 | $ 104,300 | ||
Operating lease term | 12 years | 12 years | ||
Australia [Member] | ||||
Operating And Capital Leased Assets [Line Items] | ||||
Lease operating lease commitments that have not yet commenced | $ 104,300 | $ 104,300 | ||
Operating lease term | 3 years | 3 years |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments And Contingencies Disclosure [Abstract] | ||
Operating, 2019 | $ 21,826 | |
Operating, 2020 | 33,864 | |
Operating, 2021 | 36,178 | |
Operating, 2022 | 35,460 | |
Operating, 2023 | 35,619 | |
Operating, Thereafter | 183,294 | |
Lease commitments, Operating leases | 346,241 | |
Finance, 2019 | 178 | |
Finance, 2020 | 30 | |
Lease commitments, Finance leases | 208 | |
Less: Portion representing interest | (14) | |
Capital lease obligation | $ 194 | |
Operating, 2019 | $ 27,755 | |
Operating, 2020 | 33,769 | |
Operating, 2021 | 35,414 | |
Operating, 2022 | 35,314 | |
Operating, 2023 | 35,686 | |
Operating, Thereafter | 184,341 | |
Operating, Total | 352,279 | |
Finance, 2019 | 298 | |
Finance, 2020 | 33 | |
Finance, Total | 331 | |
Less: Portion representing interest | (20) | |
Capital lease obligation | $ 311 |
Changes in Stockholders' Equi_3
Changes in Stockholders' Equity - Summary of Changes in Stockholders' Equity (Detail) - USD ($) shares in Thousands, $ in Thousands | Feb. 19, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Class Of Stock [Line Items] | |||
Beginning Balance, Amount | $ 244,641 | $ 210,360 | |
Issuance of common stock under stock plans, net of shares withheld for employee taxes | 1,162 | 3,878 | |
Issuance of common stock in relation to common stock offering, net of offering costs incurred $365 | 342,630 | ||
Stock-based compensation | 21,548 | 16,596 | |
Cumulative adjustment from adoption of stock compensation standard | 5,793 | ||
Cumulative translation adjustment | (304) | 298 | |
Unrealized gain on investments, net of income taxes of $113 and $20 | 426 | (379) | |
Net loss | (11,100) | (15,448) | |
Ending Balance, Amount | 599,003 | 221,098 | |
Common Stock [Member] | |||
Class Of Stock [Line Items] | |||
Beginning Balance, Amount | $ 40 | $ 38 | |
Beginning Balance, Shares | 39,300 | 37,503 | |
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 | 440 | 571 | |
Issuance of common stock in relation to common stock offering, net of offering costs incurred $365 | $ 2 | ||
Issuance of common stock in relation to common stock offering, net of offering costs incurred $365, Shares | 2,200 | 2,151 | |
Ending Balance, Amount | $ 43 | $ 39 | |
Ending Balance, Shares | 41,891 | 38,074 | |
Additional Paid-In Capital [Member] | |||
Class Of Stock [Line Items] | |||
Beginning Balance, Amount | $ 589,708 | $ 496,461 | |
Issuance of common stock under stock plans, net of shares withheld for employee taxes | 1,161 | 3,877 | |
Issuance of common stock in relation to common stock offering, net of offering costs incurred $365 | 342,628 | ||
Stock-based compensation | 21,548 | 16,596 | |
Ending Balance, Amount | 955,045 | 516,934 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Class Of Stock [Line Items] | |||
Beginning Balance, Amount | (723) | (57) | |
Cumulative translation adjustment | (304) | 298 | |
Unrealized gain on investments, net of income taxes of $113 and $20 | 426 | (379) | |
Ending Balance, Amount | (601) | (138) | |
Accumulated Deficit [Member] | |||
Class Of Stock [Line Items] | |||
Beginning Balance, Amount | (344,384) | (286,082) | |
Cumulative adjustment from adoption of stock compensation standard | 5,793 | ||
Net loss | (11,100) | (15,448) | |
Ending Balance, Amount | $ (355,484) | $ (295,737) |
Changes in Stockholders' Equi_4
Changes in Stockholders' Equity - Summary of Changes in Stockholders' Equity (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stockholders Equity Note [Abstract] | ||
Offering costs incurred | $ 365 | |
Unrealized gain (loss) on investments, tax | $ 113 | $ 20 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | $ 244,641 |
Other comprehensive loss before reclassifications | 122 |
Ending Balance, Amount | 599,003 |
Cumulative Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | (397) |
Other comprehensive loss before reclassifications | (304) |
Ending Balance, Amount | (701) |
Unrealized Gain on Investments [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | (326) |
Other comprehensive loss before reclassifications | 426 |
Ending Balance, Amount | 100 |
Accumulated Other Comprehensive Loss [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Beginning Balance, Amount | (723) |
Ending Balance, Amount | $ (601) |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 21,205 | $ 16,046 |
Common Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 1,290 | 1,334 |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 18,736 | 14,241 |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 1,179 | $ 471 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 21,205 | $ 16,046 |
Cost of Revenue, Subscription [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 614 | 277 |
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 | 1,019 | 690 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 7,091 | 4,764 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 7,804 | 6,492 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 4,677 | $ 3,823 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | $ 508 | $ 550 |
Segment Information and Geogr_3
Segment Information and Geographic Data - Additional Information (Detail) - Segment | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | 39.00% | 36.00% |
Segment Information and Geogr_4
Segment Information and Geographic Data - Revenues by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 151,798 | $ 114,556 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 104,290 | 82,158 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 36,676 | 25,209 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 10,832 | $ 7,189 |
Revenue [Member] | Outside Of Americas [Member] | Geographic Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of revenues generated outside of the Americas | 31.00% | 28.00% |
Segment Information and Geogr_5
Segment Information and Geographic Data - Long Lived Assets by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 54,995 | $ 52,468 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 38,344 | 35,186 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 13,631 | 13,913 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 3,020 | $ 3,369 |
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 | 30.00% | 33.00% |