Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CTCT | |
Entity Registrant Name | Constant Contact, Inc. | |
Entity Central Index Key | 1405277 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,158,044 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $123,078 | $104,301 |
Marketable securities | 56,019 | 58,321 |
Accounts receivable, net of allowance for doubtful accounts | 195 | 265 |
Prepaid expenses and other current assets | 11,785 | 10,723 |
Total current assets | 191,077 | 173,610 |
Property and equipment, net | 44,320 | 43,739 |
Restricted cash | 1,300 | 1,300 |
Goodwill | 95,505 | 95,505 |
Acquired intangible assets, net | 1,676 | 2,160 |
Deferred taxes | 4,658 | 4,658 |
Other assets | 1,550 | 1,893 |
Total assets | 340,086 | 322,865 |
Current liabilities | ||
Accounts payable | 8,377 | 4,703 |
Accrued expenses | 14,435 | 12,230 |
Deferred revenue | 40,148 | 37,838 |
Total current liabilities | 62,960 | 54,771 |
Other long-term liabilities | 3,681 | 3,783 |
Total liabilities | 66,641 | 58,554 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity | ||
Preferred stock; $0.01 par value; 5,000,000 shares authorized; no shares issued or outstanding at March 31, 2015 and December 31, 2014 | ||
Common stock; $0.01 par value; 100,000,000 shares authorized; 32,152,030 and 31,908,622 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 322 | 319 |
Additional paid-in capital | 255,164 | 249,599 |
Accumulated other comprehensive income (loss) | 6 | -10 |
Retained earnings | 17,953 | 14,403 |
Total stockholders' equity | 273,445 | 264,311 |
Total liabilities and stockholders' equity | $340,086 | $322,865 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,152,030 | 31,908,622 |
Common stock, shares outstanding | 32,152,030 | 31,908,622 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $90,417 | $78,874 |
Cost of revenue | 24,431 | 21,727 |
Gross profit | 65,986 | 57,147 |
Operating expenses | ||
Research and development | 13,825 | 13,074 |
Sales and marketing | 36,068 | 32,800 |
General and administrative | 11,793 | 10,120 |
Total operating expenses | 61,686 | 55,994 |
Income from operations | 4,300 | 1,153 |
Interest income and other income (expense), net | -57 | 23 |
Income before income taxes | 4,243 | 1,176 |
Income tax expense | -693 | -328 |
Net income | $3,550 | $848 |
Net income per share: | ||
Basic | $0.11 | $0.03 |
Diluted | $0.11 | $0.03 |
Weighted average shares outstanding used in computing per share amounts: | ||
Basic | 32,091 | 31,289 |
Diluted | 33,658 | 32,442 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $3,550 | $848 |
Other comprehensive income (loss): | ||
Net unrealized gains (losses) on marketable securities, net of tax | 25 | -3 |
Translation adjustment | -9 | 1 |
Total other comprehensive income (loss) | 16 | -2 |
Comprehensive income | $3,566 | $846 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net income | $3,550 | $848 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,053 | 5,911 |
Amortization of premium on investments | 84 | 55 |
Stock-based compensation expense | 4,304 | 3,914 |
Provision for (recovery of) bad debts | -1 | 5 |
Income tax benefit from the exercise of stock options | -1,180 | -226 |
Taxes paid related to net share settlement of restricted stock units | -373 | -751 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 71 | 39 |
Prepaid expenses and other current assets | 115 | -1,463 |
Other assets | 343 | -13 |
Accounts payable | 1,977 | -264 |
Accrued expenses | 3,070 | 1,064 |
Deferred revenue | 2,310 | 2,070 |
Other long-term liabilities | -102 | -98 |
Net cash provided by operating activities | 20,221 | 11,091 |
Cash flows from investing activities | ||
Purchases of marketable securities | -16,014 | -15,963 |
Proceeds from maturities of marketable securities | 18,250 | 12,865 |
Acquisition of property and equipment, including costs capitalized for development of internal use software | -5,250 | -5,929 |
Net cash used in investing activities | -3,014 | -9,027 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock pursuant to the exercise of stock options | 9,396 | 2,290 |
Income tax benefit from the exercise of stock options | 1,180 | 226 |
Repurchase of common stock | -9,000 | |
Net cash provided by financing activities | 1,576 | 2,516 |
Effects of exchange rates on cash and cash equivalents | -6 | 1 |
Net increase in cash and cash equivalents | 18,777 | 4,581 |
Cash and cash equivalents, beginning of period | 104,301 | 82,478 |
Cash and cash equivalents, end of period | 123,078 | 87,059 |
Supplemental disclosure of noncash investing and financing activities: | ||
Capitalization of stock-based compensation | 68 | 50 |
Acquisition of property and equipment included in accounts payable | $2,755 |
Nature_of_the_Business
Nature of the Business | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of the Business | 1. Nature of the Business |
Constant Contact, Inc. (the “Company”) was incorporated as a Massachusetts corporation in 1995 and was reincorporated in the State of Delaware in 2000. The Company is a leading provider of online marketing tools that are designed for small organizations, including small businesses, associations and non-profits. The Company seeks to help customers succeed by creating and growing their customer and member relationships through easy-to-use products combined with education, support, KnowHow® and coaching. In April 2014, the Company formally launched Constant Contact Toolkit™, an integrated online marketing platform that simplifies small business marketing by bringing together the tools needed to drive repeat customers and reach new ones. The Company also offers a suite of online marketing tools, including Email Marketing, EventSpot®, Social Campaigns™, SaveLocal™, SinglePlatform and Survey, that enables customers to launch and monitor marketing campaigns across multiple channels, including email, social media, events, local deals, online listings and surveys. These products are marketed and sold directly by the Company and through a wide variety of partners primarily in the United States of America. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | ||||||||||||||||
Basis of Presentation | |||||||||||||||||
The accompanying condensed consolidated financial statements include those of the Company and its subsidiaries, after elimination of all intercompany accounts and transactions. The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). | |||||||||||||||||
The condensed consolidated balance sheet at December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements as of March 31, 2015 and for the three months ended March 31, 2015 and 2014 have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K, File Number 001-33707, on file with the SEC. | |||||||||||||||||
In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s consolidated financial position as of March 31, 2015 and consolidated results of operations and of cash flows for the three months ended March 31, 2015 and 2014, have been made. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2015. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, management evaluates these estimates, judgments and assumptions, including those related to revenue recognition, stock-based compensation, goodwill and acquired intangible assets, capitalization of software and website development costs and income taxes. The Company bases these estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenue and expenses that are not readily apparent from other sources. Actual results could differ from these estimates. | |||||||||||||||||
Marketable Securities | |||||||||||||||||
The Company’s marketable securities are classified as available-for-sale and are carried at fair value with the unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Realized gains and losses and declines in value judged to be other than temporary are included as a component of interest and other income (expense) based on the specific identification method. | |||||||||||||||||
At March 31, 2015, marketable securities by security type consisted of: | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
United States Treasury Notes | $ | 11,796 | $ | 6 | $ | — | $ | 11,802 | |||||||||
Corporate and Agency Bonds | 43,213 | 11 | (7 | ) | 43,217 | ||||||||||||
Commercial Paper | 1,000 | — | — | 1,000 | |||||||||||||
Total | $ | 56,009 | $ | 17 | $ | (7 | ) | $ | 56,019 | ||||||||
At March 31, 2015, marketable securities consisted of investments that mature within one year with the exception of government treasuries and corporate and agency bonds with a fair value of $19,172, which have maturities within two years. | |||||||||||||||||
At December 31, 2014, marketable securities by security type consisted of: | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
United States Treasury Notes | $ | 20,000 | $ | 6 | $ | — | $ | 20,006 | |||||||||
Corporate and Agency Bonds | 37,330 | 2 | (16 | ) | 37,316 | ||||||||||||
Commercial Paper | 999 | — | — | 999 | |||||||||||||
Total | $ | 58,329 | $ | 8 | $ | (16 | ) | $ | 58,321 | ||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last is considered unobservable, is used to measure fair value: | |||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
The following tables present the Company’s fair value hierarchy for its cash equivalents and marketable securities, which are measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: | |||||||||||||||||
Fair Value Measurements at March 31, 2015 Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial Assets: | |||||||||||||||||
Money Market Instruments | $ | 8,183 | $ | — | $ | — | $ | 8,183 | |||||||||
United States Treasury Notes | 11,802 | — | — | 11,802 | |||||||||||||
Corporate and Agency Bonds | — | 43,217 | — | 43,217 | |||||||||||||
Commercial Paper | — | 1,000 | — | 1,000 | |||||||||||||
Total | $ | 19,985 | $ | 44,217 | $ | — | $ | 64,202 | |||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial Assets: | |||||||||||||||||
Money Market Instruments | $ | 5,885 | $ | — | $ | — | $ | 5,885 | |||||||||
United States Treasury Notes | 20,006 | — | — | 20,006 | |||||||||||||
Corporate and Agency Bonds | — | 37,316 | — | 37,316 | |||||||||||||
Commercial Paper | — | 999 | — | 999 | |||||||||||||
Total | $ | 25,891 | $ | 38,315 | $ | — | $ | 64,206 | |||||||||
Net Income Per Share | |||||||||||||||||
Basic net income per share is computed by dividing net income by the weighted average number of unrestricted common shares outstanding for the period. | |||||||||||||||||
Diluted net income per share is computed by dividing net income by the sum of the weighted average number of unrestricted common shares outstanding during the period and the weighted average number of potential common shares from the assumed exercise of stock options and the vesting of shares of restricted stock units using the “treasury stock” method when the effect is not anti-dilutive. | |||||||||||||||||
The following is a summary of the shares used in computing diluted net income per share: | |||||||||||||||||
(in thousands) | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Weighted average shares used in calculating basic net income per share | 32,091 | 31,289 | |||||||||||||||
Stock options | 1,397 | 1,029 | |||||||||||||||
Warrants | — | 1 | |||||||||||||||
Restricted stock units | 170 | 123 | |||||||||||||||
Shares used in computing diluted net income per share | 33,658 | 32,442 | |||||||||||||||
The following common stock equivalents were excluded from the computation of diluted net income per share because they had an anti-dilutive impact as the proceeds under the treasury stock method were in excess of the average fair market value for the period: | |||||||||||||||||
(in thousands) | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Options to purchase common stock | 269 | 1,031 | |||||||||||||||
Restricted stock units | 79 | 268 | |||||||||||||||
Total options exercisable into common stock and restricted stock units issuable in common stock | 348 | 1,299 | |||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued new guidance, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The new guidance is effective for the Company commencing January 1, 2017. Early application is not permitted. The guidance permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that this guidance will have on its consolidated financial statements. | |||||||||||||||||
In August 2014, the FASB issued new guidance, Presentation of Financial Statements — Going Concern. The new guidance addresses management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The guidance will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is evaluating the effect that this guidance will have on its consolidated financial statements. | |||||||||||||||||
In April 2015, the FASB issued new guidance, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The guidance clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software. The guidance will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company does not believe the guidance will have a material impact on its consolidated financial statements. |
Goodwill_and_Acquired_Intangib
Goodwill and Acquired Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Goodwill and Acquired Intangible Assets | 3. Goodwill and Acquired Intangible Assets | ||||||||||||||||||||||||||||
The carrying amount of goodwill was $95,505 at March 31, 2015 and December 31, 2014. Goodwill is not amortized, but instead is reviewed for impairment at least annually in the fourth quarter or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. | |||||||||||||||||||||||||||||
Intangible assets consist of the following: | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
Estimated | Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | |||||||||||||||||||||||
Useful Life | Carrying | Amortization | Amount | Carrying | Amortization | Amount | |||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||
Developed technology | 3 years | $ | 4,357 | $ | 3,710 | $ | 647 | $ | 4,357 | $ | 3,465 | $ | 892 | ||||||||||||||||
Customer relationships | 3.75 years | 3,315 | 2,841 | 474 | 3,315 | 2,666 | 649 | ||||||||||||||||||||||
Publisher relationships | 5 years | 710 | 402 | 308 | 710 | 367 | 343 | ||||||||||||||||||||||
Trade name | 5 years | 570 | 323 | 247 | 570 | 294 | 276 | ||||||||||||||||||||||
$ | 8,952 | $ | 7,276 | $ | 1,676 | $ | 8,952 | $ | 6,792 | $ | 2,160 | ||||||||||||||||||
The Company amortizes the intangible assets over the estimated useful lives noted above. Amortization of the developed technology and publisher relationships assets is on a straight-line basis as the pattern of consumption of the economic benefits of the intangible assets cannot be reliably determined. The Company also amortizes the trade name asset over its estimated useful life on a straight-line basis as the straight-line basis is not materially different than the pattern of consumption of economic benefit basis. Customer relationships are amortized over their useful life based on the pattern of consumption of economic benefit of the asset. Amortization commences once the asset has been placed in service. Amortization expense for intangible assets was $484 and $567 for the three months ended March 31, 2015 and 2014, respectively. Amortization relating to developed technology and publisher relationships is recorded within cost of revenue and amortization of customer relationships and trade name is recorded within sales and marketing expense. Future estimated amortization expense for intangible assets as of March 31, 2015 is as follows: | |||||||||||||||||||||||||||||
Remainder of 2015 | $ | 1,099 | |||||||||||||||||||||||||||
2016 | 470 | ||||||||||||||||||||||||||||
2017 | 107 | ||||||||||||||||||||||||||||
Total | $ | 1,676 | |||||||||||||||||||||||||||
Stockholders_Equity_and_StockB
Stockholders' Equity and Stock-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stockholders' Equity and Stock-Based Compensation | 4. Stockholders’ Equity and Stock-Based Compensation | ||||||||
Stock Repurchase Program | |||||||||
In the second quarter of 2014, the Board of Directors authorized the repurchase of up to $30,000 of its common stock through July 31, 2015. Under the authorization, the Company can repurchase shares in the open market, which may include the use of 10b5-1 trading plans, or through privately negotiated transactions. The timing and amount of repurchases, if any, will depend upon several factors, including market and business conditions. Stock repurchases may be suspended or discontinued at any time. The Company intends to fund repurchases from its cash and cash equivalents. | |||||||||
During the three months ended March 31, 2015, the Company repurchased 228,671 shares of its common stock at an average price of $39.36 per share. These shares were retired and returned to authorized but unissued shares and accounted for as a reduction to stockholders’ equity in the Company’s condensed consolidated balance sheet. | |||||||||
Stock-Based Compensation Expense | |||||||||
The Company grants stock-based awards under its existing 2011 Stock Incentive Plan and its 2007 Employee Stock Purchase Plan. The Company also has outstanding stock-based awards under its 1999 Stock Option/Stock Issuance Plan and 2012 Inducement Award Plan but is no longer granting awards under these plans. As of March 31, 2015, 1,740,896 shares of common stock are available for issuance under the 2011 Stock Incentive Plan. As of March 31, 2015, 312,026 shares of common stock are available for issuance to participating employees under the 2007 Employee Stock Purchase Plan. The Company applies the fair value recognition provisions for all stock-based awards granted or modified in accordance with authoritative guidance. Under this guidance the Company records compensation costs over the requisite service period of the award based on the grant-date fair value. The straight-line method is applied to all grants with service conditions, while the graded vesting method is applied to all grants with both service and performance conditions. | |||||||||
The Company recognized stock-based compensation expense on all awards in cost of revenue and operating expense categories as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Cost of revenue | $ | 499 | $ | 442 | |||||
Research and development | 867 | 1,020 | |||||||
Sales and marketing | 1,191 | 1,032 | |||||||
General and administrative | 1,747 | 1,420 | |||||||
$ | 4,304 | $ | 3,914 | ||||||
Additionally, the Company capitalized $68 and $50 of stock-based compensation related to the development of internal-use software for the three months ended March 31, 2015 and 2014, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes |
For the three months ended March 31, 2015 and 2014, the Company recorded income tax expense of $693 and $328, respectively. Income tax is related to federal, state, and to a lesser extent, foreign tax obligations. The Company’s effective tax rate may vary from period to period based on changes in estimated taxable income or loss, changes to federal, state or foreign tax laws, deductibility of certain costs and expenses, and as a result of acquisitions. | |
The Company’s estimated effective tax rate for 2015 and 2014, which has been applied to the Company’s income before income taxes for the three months ended March 31, 2015 and 2014, varies from the statutory rate primarily due to non-deductible stock-based compensation expense, that increases the effective tax rate, partially offset by state research and development credits that decrease the effective tax rate. The federal research and development credit has not yet been enacted for 2015 and had not yet been enacted in the first quarter of 2014 and therefore was not included in the Company’s estimated effective tax rate for either 2015 or 2014. The income tax expense for the first quarters of 2015 and 2014 was further reduced by the impact of disqualifying dispositions of incentive stock options during the periods. | |
The Company had net deferred tax assets of $6,443 at December 31, 2014, which did not change at March 31, 2015. | |
The Company has not recorded any amounts for unrecognized tax benefits as of March 31, 2015 or December 31, 2014. As of March 31, 2015 and December 31, 2014, the Company had no accrued interest or tax penalties recorded. |
Accrued_Expenses
Accrued Expenses | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Expenses | 6. Accrued Expenses | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Payroll and payroll-related | $ | 5,627 | $ | 4,430 | |||||
Licensed software and maintenance | 1,197 | 1,197 | |||||||
Marketing programs | 1,968 | 490 | |||||||
Other accrued expenses | 5,643 | 6,113 | |||||||
$ | 14,435 | $ | 12,230 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 7. Commitments and Contingencies | ||||
Office Leases | |||||
The Company has a lease for its headquarters space in Waltham, Massachusetts (the “Lease”) that is effective through September 2022 with one ten-year extension option. The Lease includes space the Company is currently occupying as well as space that will be made available at various points in time during the term. | |||||
The Company leases office space for a sales and support office in Colorado under a lease agreement effective through April 2019 with three three-year extension options. The Company also leases small amounts of general office space in Florida, New York, California and the United Kingdom under lease agreements that expire at various dates through 2018. | |||||
Lease incentives, payment escalations and rent holidays specified in the lease agreements are accrued or deferred as appropriate such that rent expense per square foot is recognized on a straight-line basis over the terms of occupancy. | |||||
At March 31, 2015 and December 31, 2014, the Company had both prepaid rent and accrued rent balances related to its office leases. The prepaid rent balance was $52 as of March 31, 2015, of which $13 was included in prepaid expenses and other current assets and $39 was included in other assets. The accrued rent balance was $4,268 as of March 31, 2015, of which $705 was included in accrued expenses and $3,563 was included in other long-term liabilities. The prepaid rent balance was $51 at December 31, 2014, of which $3 was included in prepaid expenses and other current assets and $48 was included in other assets. The accrued rent balance was $4,232 at December 31, 2014, of which $577 was included in accrued expenses and $3,655 was included in other long-term liabilities. | |||||
As of March 31, 2015, future minimum lease payments under non-cancelable office leases are as follows: | |||||
Remainder of 2015 | $ | 7,176 | |||
2016 | 10,061 | ||||
2017 | 10,005 | ||||
2018 | 9,604 | ||||
2019 | 8,492 | ||||
Thereafter | 22,462 | ||||
67,800 | |||||
Less: Sublease income | 628 | ||||
$ | 67,172 | ||||
Total rent expense under office leases was $2,409 and $2,320 for the three months ended March 31, 2015 and 2014, respectively. Total rent expense for the three months ended March 31, 2015 is net of sublease income of $47. | |||||
Third-Party Hosting Agreements | |||||
The Company has agreements with two affiliated vendors to provide specialized space and equipment and related services from which the Company hosts its software applications. Payment escalations and rent holidays specified in these agreements are accrued or deferred as appropriate such that rent expense per square foot is recognized on a straight-line basis over the terms of occupancy. As of March 31, 2015 and December 31, 2014, the Company had both prepaid rent and accrued rent balances related to these agreements. As of March 31, 2015, the Company had prepaid rent of $429, of which $277 was included in prepaid expenses and other current assets and $152 was included in other assets. Of the accrued rent balance of $166, $47 was included in accrued expenses and $119 was included in other long-term liabilities. At December 31, 2014, the Company had prepaid rent of $501, of which $295 was included in prepaid expenses and other current assets and $206 was included in other assets. The accrued rent balance was $172 of which $38 was included in accrued expense and other current liabilities and $134 was included in other long-term liabilities. | |||||
The agreements include payment commitments that expire at various dates through 2017. As of March 31, 2015, future minimum payments under the agreements are as follows: | |||||
Remainder of 2015 | $ | 2,958 | |||
2016 | 4,049 | ||||
2017 | 775 | ||||
Total | $ | 7,782 | |||
Total rent expense under hosting agreements was $1,105 and $1,063 for the three months ended March 31, 2015 and 2014, respectively. | |||||
Vendor Commitments | |||||
As of March 31, 2015, the Company had issued both cancellable and non-cancellable purchase orders to various vendors and entered into contractual commitments with various vendors totaling $27,901 related to marketing programs and other non-marketing goods and services to be delivered principally during 2015. | |||||
Letters of Credit and Restricted Cash | |||||
As of March 31, 2015 and December 31, 2014, the Company maintained a letter of credit totaling $1,300 for the benefit of the landlord of the Lease. The landlord can draw against the letter of credit in the event of default by the Company. The Company was required to maintain a cash balance of at least $1,300 as of March 31, 2015 and December 31, 2014 to secure the letter of credit. These amounts were classified as restricted cash in the balance sheet at March 31, 2015 and December 31, 2014. | |||||
Indemnification Obligations | |||||
The Company enters into standard indemnification agreements with the Company’s channel partners and certain other third parties in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses incurred by the indemnified party in connection with certain intellectual property infringement and other claims by any third party with respect to the Company’s business and technology. Based on historical information and information known as of March 31, 2015, the Company does not expect it will incur any significant liabilities under these indemnification agreements. | |||||
Legal Matters | |||||
In September 2012, RPost Holdings, Inc., RPost Communications Limited and RMail Limited (collectively, “RPost”) filed a complaint in the United States District Court for the Eastern District of Texas that named the Company as a defendant in a lawsuit. The complaint alleged that certain elements of the Company’s email marketing technology infringe five patents held by RPost. RPost seeks an award for damages in an unspecified amount and injunctive relief. In February 2013, RPost amended its complaint to name five of the Company’s marketing partners as defendants. Under the Company’s contractual agreements with these marketing partners, the Company is obligated to indemnify them for claims related to patent infringement. The Company filed a motion to sever and stay the claims against its partners and multiple motions to dismiss the claims against the Company. In January 2014, the case was stayed pending the resolution of certain state court and bankruptcy court actions involving RPost, to which the Company is not a party. The stay was extended by agreement of the parties in December 2014. This litigation is in its very early stages. As a result, neither the ultimate outcome of this litigation nor an estimate of a probable loss or any reasonably possible losses can be assessed at this time. Nevertheless, the Company believes that it has meritorious defenses to any claim of infringement and intends to defend itself vigorously. | |||||
In March 2013, CreateAds LLC (“CreateAds”) filed a complaint in the United States District Court for the District of Delaware that named the Company as a defendant in a lawsuit. The complaint, which was served on the Company on March 8, 2013, alleged that certain elements of the Company’s email marketing technology infringe a patent held by CreateAds. CreateAds seeks an award for damages in an unspecified amount and injunctive relief. In February 2014, the case was stayed pending a decision by the United States Supreme Court in the appeal of a patent case with issues very similar to the ones pending in the Company’s motion to dismiss. Following the Supreme Court’s decision in June 2014, the Company filed a motion for summary judgment seeking to invalidate the patent for lack of patent-eligible subject matter. By agreement of the parties, the case was dismissed with prejudice as to the claims raised by CreateAds in February 2015. | |||||
The Company is from time to time subject to various other legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of its business. While the outcome of these other claims cannot be predicted with certainty, management does not believe that the outcome of any of these other legal matters will have a material adverse effect on the Company’s results of operations or financial condition. |
401k_Savings_Plan
401(k) Savings Plan | 3 Months Ended |
Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
401(k) Savings Plan | 8. 401(k) Savings Plan |
The Company has a defined contribution savings plan under Section 401(k) of the Internal Revenue Code of 1986. This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Company contributions to the plan may be made at the discretion of the Board of Directors. The Company elected to make matching contributions for the plan years ending December 31, 2015 and 2014 at a rate of 100% of each employee’s contribution up to a maximum matching contribution of 3% of the employee’s compensation and at a rate of 50% of each employee’s contribution in excess of 3% up to a maximum of 5% of the employee’s compensation. | |
Through March 31, 2015 and 2014, the Company made matching contributions of $1,068 and $863 for the plan years ended December 31, 2015 and 2014, respectively. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Basis of Presentation | Basis of Presentation | ||||||||||||||||
The accompanying condensed consolidated financial statements include those of the Company and its subsidiaries, after elimination of all intercompany accounts and transactions. The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). | |||||||||||||||||
The condensed consolidated balance sheet at December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements as of March 31, 2015 and for the three months ended March 31, 2015 and 2014 have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K, File Number 001-33707, on file with the SEC. | |||||||||||||||||
In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s consolidated financial position as of March 31, 2015 and consolidated results of operations and of cash flows for the three months ended March 31, 2015 and 2014, have been made. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2015. | |||||||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, management evaluates these estimates, judgments and assumptions, including those related to revenue recognition, stock-based compensation, goodwill and acquired intangible assets, capitalization of software and website development costs and income taxes. The Company bases these estimates on historical and anticipated results and trends and on various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenue and expenses that are not readily apparent from other sources. Actual results could differ from these estimates. | |||||||||||||||||
Marketable Securities | Marketable Securities | ||||||||||||||||
The Company’s marketable securities are classified as available-for-sale and are carried at fair value with the unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Realized gains and losses and declines in value judged to be other than temporary are included as a component of interest and other income (expense) based on the specific identification method. | |||||||||||||||||
At March 31, 2015, marketable securities by security type consisted of: | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
United States Treasury Notes | $ | 11,796 | $ | 6 | $ | — | $ | 11,802 | |||||||||
Corporate and Agency Bonds | 43,213 | 11 | (7 | ) | 43,217 | ||||||||||||
Commercial Paper | 1,000 | — | — | 1,000 | |||||||||||||
Total | $ | 56,009 | $ | 17 | $ | (7 | ) | $ | 56,019 | ||||||||
At March 31, 2015, marketable securities consisted of investments that mature within one year with the exception of government treasuries and corporate and agency bonds with a fair value of $19,172, which have maturities within two years. | |||||||||||||||||
At December 31, 2014, marketable securities by security type consisted of: | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
United States Treasury Notes | $ | 20,000 | $ | 6 | $ | — | $ | 20,006 | |||||||||
Corporate and Agency Bonds | 37,330 | 2 | (16 | ) | 37,316 | ||||||||||||
Commercial Paper | 999 | — | — | 999 | |||||||||||||
Total | $ | 58,329 | $ | 8 | $ | (16 | ) | $ | 58,321 | ||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||||||||||
Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last is considered unobservable, is used to measure fair value: | |||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
The following tables present the Company’s fair value hierarchy for its cash equivalents and marketable securities, which are measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: | |||||||||||||||||
Fair Value Measurements at March 31, 2015 Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial Assets: | |||||||||||||||||
Money Market Instruments | $ | 8,183 | $ | — | $ | — | $ | 8,183 | |||||||||
United States Treasury Notes | 11,802 | — | — | 11,802 | |||||||||||||
Corporate and Agency Bonds | — | 43,217 | — | 43,217 | |||||||||||||
Commercial Paper | — | 1,000 | — | 1,000 | |||||||||||||
Total | $ | 19,985 | $ | 44,217 | $ | — | $ | 64,202 | |||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial Assets: | |||||||||||||||||
Money Market Instruments | $ | 5,885 | $ | — | $ | — | $ | 5,885 | |||||||||
United States Treasury Notes | 20,006 | — | — | 20,006 | |||||||||||||
Corporate and Agency Bonds | — | 37,316 | — | 37,316 | |||||||||||||
Commercial Paper | — | 999 | — | 999 | |||||||||||||
Total | $ | 25,891 | $ | 38,315 | $ | — | $ | 64,206 | |||||||||
Net Income Per Share | Net Income Per Share | ||||||||||||||||
Basic net income per share is computed by dividing net income by the weighted average number of unrestricted common shares outstanding for the period. | |||||||||||||||||
Diluted net income per share is computed by dividing net income by the sum of the weighted average number of unrestricted common shares outstanding during the period and the weighted average number of potential common shares from the assumed exercise of stock options and the vesting of shares of restricted stock units using the “treasury stock” method when the effect is not anti-dilutive. | |||||||||||||||||
The following is a summary of the shares used in computing diluted net income per share: | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
(in thousands) | 2015 | 2014 | |||||||||||||||
Weighted average shares used in calculating basic net income per share | 32,091 | 31,289 | |||||||||||||||
Stock options | 1,397 | 1,029 | |||||||||||||||
Warrants | — | 1 | |||||||||||||||
Restricted stock units | 170 | 123 | |||||||||||||||
Shares used in computing diluted net income per share | 33,658 | 32,442 | |||||||||||||||
The following common stock equivalents were excluded from the computation of diluted net income per share because they had an anti-dilutive impact as the proceeds under the treasury stock method were in excess of the average fair market value for the period: | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
(in thousands) | 2015 | 2014 | |||||||||||||||
Options to purchase common stock | 269 | 1,031 | |||||||||||||||
Restricted stock units | 79 | 268 | |||||||||||||||
Total options exercisable into common stock and restricted stock units issuable in common stock | 348 | 1,299 | |||||||||||||||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements | ||||||||||||||||
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued new guidance, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The new guidance is effective for the Company commencing January 1, 2017. Early application is not permitted. The guidance permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that this guidance will have on its consolidated financial statements. | |||||||||||||||||
In August 2014, the FASB issued new guidance, Presentation of Financial Statements — Going Concern. The new guidance addresses management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The guidance will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is evaluating the effect that this guidance will have on its consolidated financial statements. | |||||||||||||||||
In April 2015, the FASB issued new guidance, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The guidance clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software. The guidance will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company does not believe the guidance will have a material impact on its consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Summary of Marketable Securities by Security Type | At March 31, 2015, marketable securities by security type consisted of: | ||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
United States Treasury Notes | $ | 11,796 | $ | 6 | $ | — | $ | 11,802 | |||||||||
Corporate and Agency Bonds | 43,213 | 11 | (7 | ) | 43,217 | ||||||||||||
Commercial Paper | 1,000 | — | — | 1,000 | |||||||||||||
Total | $ | 56,009 | $ | 17 | $ | (7 | ) | $ | 56,019 | ||||||||
At March 31, 2015, marketable securities consisted of investments that mature within one year with the exception of government treasuries and corporate and agency bonds with a fair value of $19,172, which have maturities within two years. | |||||||||||||||||
At December 31, 2014, marketable securities by security type consisted of: | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
United States Treasury Notes | $ | 20,000 | $ | 6 | $ | — | $ | 20,006 | |||||||||
Corporate and Agency Bonds | 37,330 | 2 | (16 | ) | 37,316 | ||||||||||||
Commercial Paper | 999 | — | — | 999 | |||||||||||||
Total | $ | 58,329 | $ | 8 | $ | (16 | ) | $ | 58,321 | ||||||||
Fair Value Hierarchy for Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis | The following tables present the Company’s fair value hierarchy for its cash equivalents and marketable securities, which are measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: | ||||||||||||||||
Fair Value Measurements at March 31, 2015 Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial Assets: | |||||||||||||||||
Money Market Instruments | $ | 8,183 | $ | — | $ | — | $ | 8,183 | |||||||||
United States Treasury Notes | 11,802 | — | — | 11,802 | |||||||||||||
Corporate and Agency Bonds | — | 43,217 | — | 43,217 | |||||||||||||
Commercial Paper | — | 1,000 | — | 1,000 | |||||||||||||
Total | $ | 19,985 | $ | 44,217 | $ | — | $ | 64,202 | |||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Financial Assets: | |||||||||||||||||
Money Market Instruments | $ | 5,885 | $ | — | $ | — | $ | 5,885 | |||||||||
United States Treasury Notes | 20,006 | — | — | 20,006 | |||||||||||||
Corporate and Agency Bonds | — | 37,316 | — | 37,316 | |||||||||||||
Commercial Paper | — | 999 | — | 999 | |||||||||||||
Total | $ | 25,891 | $ | 38,315 | $ | — | $ | 64,206 | |||||||||
Summary of Shares Used in Computing Diluted Net Income Per Share | The following is a summary of the shares used in computing diluted net income per share: | ||||||||||||||||
(in thousands) | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Weighted average shares used in calculating basic net income per share | 32,091 | 31,289 | |||||||||||||||
Stock options | 1,397 | 1,029 | |||||||||||||||
Warrants | — | 1 | |||||||||||||||
Restricted stock units | 170 | 123 | |||||||||||||||
Shares used in computing diluted net income per share | 33,658 | 32,442 | |||||||||||||||
Common Stock Equivalents Excluded from Computation of Diluted Net Income Per Share | The following common stock equivalents were excluded from the computation of diluted net income per share because they had an anti-dilutive impact as the proceeds under the treasury stock method were in excess of the average fair market value for the period: | ||||||||||||||||
(in thousands) | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Options to purchase common stock | 269 | 1,031 | |||||||||||||||
Restricted stock units | 79 | 268 | |||||||||||||||
Total options exercisable into common stock and restricted stock units issuable in common stock | 348 | 1,299 | |||||||||||||||
Goodwill_and_Acquired_Intangib1
Goodwill and Acquired Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||
Intangible Assets | Intangible assets consist of the following: | ||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
Estimated | Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | |||||||||||||||||||||||
Useful Life | Carrying | Amortization | Amount | Carrying | Amortization | Amount | |||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||
Developed technology | 3 years | $ | 4,357 | $ | 3,710 | $ | 647 | $ | 4,357 | $ | 3,465 | $ | 892 | ||||||||||||||||
Customer relationships | 3.75 years | 3,315 | 2,841 | 474 | 3,315 | 2,666 | 649 | ||||||||||||||||||||||
Publisher relationships | 5 years | 710 | 402 | 308 | 710 | 367 | 343 | ||||||||||||||||||||||
Trade name | 5 years | 570 | 323 | 247 | 570 | 294 | 276 | ||||||||||||||||||||||
$ | 8,952 | $ | 7,276 | $ | 1,676 | $ | 8,952 | $ | 6,792 | $ | 2,160 | ||||||||||||||||||
Future Estimated Amortization Expense for Intangible Assets | Future estimated amortization expense for intangible assets as of March 31, 2015 is as follows: | ||||||||||||||||||||||||||||
Remainder of 2015 | $ | 1,099 | |||||||||||||||||||||||||||
2016 | 470 | ||||||||||||||||||||||||||||
2017 | 107 | ||||||||||||||||||||||||||||
Total | $ | 1,676 | |||||||||||||||||||||||||||
Stockholders_Equity_and_StockB1
Stockholders' Equity and Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Recognized Stock-Based Compensation Expense | The Company recognized stock-based compensation expense on all awards in cost of revenue and operating expense categories as follows: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Cost of revenue | $ | 499 | $ | 442 | |||||
Research and development | 867 | 1,020 | |||||||
Sales and marketing | 1,191 | 1,032 | |||||||
General and administrative | 1,747 | 1,420 | |||||||
$ | 4,304 | $ | 3,914 | ||||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Components of Accrued Expenses | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Payroll and payroll-related | $ | 5,627 | $ | 4,430 | |||||
Licensed software and maintenance | 1,197 | 1,197 | |||||||
Marketing programs | 1,968 | 490 | |||||||
Other accrued expenses | 5,643 | 6,113 | |||||||
$ | 14,435 | $ | 12,230 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Office Leases [Member] | |||||
Future Minimum Lease Payments under Leases and Agreements | As of March 31, 2015, future minimum lease payments under non-cancelable office leases are as follows: | ||||
Remainder of 2015 | $ | 7,176 | |||
2016 | 10,061 | ||||
2017 | 10,005 | ||||
2018 | 9,604 | ||||
2019 | 8,492 | ||||
Thereafter | 22,462 | ||||
67,800 | |||||
Less: Sublease income | 628 | ||||
$ | 67,172 | ||||
Third-Party Hosting Agreements [Member] | |||||
Future Minimum Lease Payments under Leases and Agreements | As of March 31, 2015, future minimum payments under the agreements are as follows: | ||||
Remainder of 2015 | $ | 2,958 | |||
2016 | 4,049 | ||||
2017 | 775 | ||||
Total | $ | 7,782 | |||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Summary of Marketable Securities by Security Type (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $56,009 | $58,329 |
Gross Unrealized Gains | 17 | 8 |
Gross Unrealized Losses | -7 | -16 |
Estimated Fair Value | 56,019 | 58,321 |
Corporate and Agency Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 43,213 | 37,330 |
Gross Unrealized Gains | 11 | 2 |
Gross Unrealized Losses | -7 | -16 |
Estimated Fair Value | 43,217 | 37,316 |
United States Treasury Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,796 | 20,000 |
Gross Unrealized Gains | 6 | 6 |
Estimated Fair Value | 11,802 | 20,006 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,000 | 999 |
Estimated Fair Value | $1,000 | $999 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Maximum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Maturity period for marketable securities classified as available-for-sale | 1 year |
Corporate and Agency Bonds [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Fair value of agency bonds and treasury notes classified as available-for-sale securities | 19,172 |
Corporate and Agency Bonds [Member] | Maximum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Maturity period for marketable securities classified as available-for-sale | 2 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Fair Value Hierarchy for Cash Equivalents and Marketable Securities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ||
Available for sale securities fair value disclosure | $56,019 | $58,321 |
United States Treasury Notes [Member] | ||
Financial Assets: | ||
Available for sale securities fair value disclosure | 11,802 | 20,006 |
Commercial Paper [Member] | ||
Financial Assets: | ||
Available for sale securities fair value disclosure | 1,000 | 999 |
Recurring [Member] | ||
Financial Assets: | ||
Total | 64,202 | 64,206 |
Recurring [Member] | Money Market Instruments [Member] | ||
Financial Assets: | ||
Cash and cash equivalents fair value disclosure | 8,183 | 5,885 |
Recurring [Member] | United States Treasury Notes [Member] | ||
Financial Assets: | ||
Available for sale securities fair value disclosure | 11,802 | 20,006 |
Recurring [Member] | Corporate and Agency Bonds [Member] | ||
Financial Assets: | ||
Available for sale securities fair value disclosure | 43,217 | 37,316 |
Recurring [Member] | Commercial Paper [Member] | ||
Financial Assets: | ||
Available for sale securities fair value disclosure | 1,000 | 999 |
Level 2 [Member] | Recurring [Member] | ||
Financial Assets: | ||
Total | 44,217 | 38,315 |
Level 2 [Member] | Recurring [Member] | Corporate and Agency Bonds [Member] | ||
Financial Assets: | ||
Available for sale securities fair value disclosure | 43,217 | 37,316 |
Level 2 [Member] | Recurring [Member] | Commercial Paper [Member] | ||
Financial Assets: | ||
Available for sale securities fair value disclosure | 1,000 | 999 |
Level 1 [Member] | Recurring [Member] | ||
Financial Assets: | ||
Total | 19,985 | 25,891 |
Level 1 [Member] | Recurring [Member] | Money Market Instruments [Member] | ||
Financial Assets: | ||
Cash and cash equivalents fair value disclosure | 8,183 | 5,885 |
Level 1 [Member] | Recurring [Member] | United States Treasury Notes [Member] | ||
Financial Assets: | ||
Available for sale securities fair value disclosure | $11,802 | $20,006 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Summary of Shares used in Computing Diluted Net Income Per Share (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Weighted average shares used in calculating basic net income per share | 32,091 | 31,289 |
Shares used in computing diluted net income per share | 33,658 | 32,442 |
Stock Options [Member] | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Restricted stock units | 1,397 | 1,029 |
Restricted Stock Units [Member] | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Restricted stock units | 170 | 123 |
Warrants [Member] | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Warrants | 1 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Common Stock Equivalents Excluded from Computation of Diluted Net Income Per Share (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total options exercisable into common stock and restricted stock units issuable in common stock | 348 | 1,299 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total options exercisable into common stock and restricted stock units issuable in common stock | 269 | 1,031 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total options exercisable into common stock and restricted stock units issuable in common stock | 79 | 268 |
Goodwill_and_Acquired_Intangib2
Goodwill and Acquired Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Carrying amount of goodwill | $95,505 | $95,505 | |
Amortization expense for intangible assets | $484 | $567 |
Goodwill_and_Acquired_Intangib3
Goodwill and Acquired Intangible Assets - Intangible Assets (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $8,952 | $8,952 |
Accumulated Amortization | 7,276 | 6,792 |
Net Carrying Amount | 1,676 | 2,160 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 3 years | |
Gross Carrying Amount | 4,357 | 4,357 |
Accumulated Amortization | 3,710 | 3,465 |
Net Carrying Amount | 647 | 892 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 3 years 9 months | |
Gross Carrying Amount | 3,315 | 3,315 |
Accumulated Amortization | 2,841 | 2,666 |
Net Carrying Amount | 474 | 649 |
Publisher Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | |
Gross Carrying Amount | 710 | 710 |
Accumulated Amortization | 402 | 367 |
Net Carrying Amount | 308 | 343 |
Trade Name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 5 years | |
Gross Carrying Amount | 570 | 570 |
Accumulated Amortization | 323 | 294 |
Net Carrying Amount | $247 | $276 |
Goodwill_and_Acquired_Intangib4
Goodwill and Acquired Intangible Assets - Future Estimated Amortization Expense for Intangible Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2015 | $1,099 | |
2016 | 470 | |
2017 | 107 | |
Net Carrying Amount | $1,676 | $2,160 |
Stockholders_Equity_and_StockB2
Stockholders' Equity and Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock repurchase program number of shares authorized to be repurchased | 228,671 | ||
Stock repurchase program average purchase price per share | $39.36 | ||
Capitalized stock-based compensation expense | $68 | $50 | |
2011 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock available for issuance | 1,740,896 | ||
2007 Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock available for issuance | 312,026 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock repurchase program authorized amount of shares repurchased | $30,000 |
Stockholders_Equity_and_StockB3
Stockholders' Equity and Stock-Based Compensation - Recognized Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $4,304 | $3,914 |
Cost of Revenue [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 499 | 442 |
Research and Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 867 | 1,020 |
Sales and Marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 1,191 | 1,032 |
General and Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $1,747 | $1,420 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $693,000 | $328,000 | |
Net deferred tax assets | 6,443,000 | 6,443,000 | |
Unrecognized tax benefits | 0 | 0 | |
Unrecognized tax benefits, accrued interest or tax penalties | $0 | $0 |
Accrued_Expenses_Components_of
Accrued Expenses - Components of Accrued Expenses (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Payroll and payroll-related | $5,627 | $4,430 |
Licensed software and maintenance | 1,197 | 1,197 |
Marketing programs | 1,968 | 490 |
Other accrued expenses | 5,643 | 6,113 |
Accrued expenses, total | $14,435 | $12,230 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Operating Leased Assets [Line Items] | |||
Expiration of lease agreement | Various dates through 2017 | ||
Prepaid expenses and other current assets | $11,785 | $10,723 | |
Other assets | 1,550 | 1,893 | |
Amount of contractual commitments with various vendors for 2015 | 27,901 | ||
Letter of credit for the benefit of the landlord | 1,300 | 1,300 | |
Cash balance to secure the letter of credit | 1,300 | 1,300 | |
Office Leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Prepaid rent | 52 | 51 | |
Prepaid expenses and other current assets | 13 | 3 | |
Other assets | 39 | 48 | |
Accrued rent balance | 4,268 | 4,232 | |
Rent expense | 2,409 | 2,320 | |
Income on sublease | 47 | ||
Office Leases [Member] | Accrued Expenses [Member] | |||
Operating Leased Assets [Line Items] | |||
Accrued rent balance included in accrued expenses | 705 | 577 | |
Office Leases [Member] | Other Long-Term Liabilities [Member] | |||
Operating Leased Assets [Line Items] | |||
Accrued rent balance included in other long-term liabilities | 3,563 | 3,655 | |
Third-Party Hosting Agreements [Member] | |||
Operating Leased Assets [Line Items] | |||
Prepaid rent | 429 | 501 | |
Prepaid expenses and other current assets | 277 | 295 | |
Other assets | 152 | 206 | |
Accrued rent balance | 166 | 172 | |
Rent expense | 1,105 | 1,063 | |
Number of vendors provide for related services | 2 | ||
Third-Party Hosting Agreements [Member] | Accrued Expenses [Member] | |||
Operating Leased Assets [Line Items] | |||
Accrued rent balance included in accrued expenses | 47 | 38 | |
Third-Party Hosting Agreements [Member] | Other Long-Term Liabilities [Member] | |||
Operating Leased Assets [Line Items] | |||
Accrued rent balance included in other long-term liabilities | $119 | $134 | |
Headquarters Space [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease expiration date | 22-Sep-22 | ||
Time period for extension option | 10 years | ||
Number of extension option | 1 | ||
Sales and Support Office [Member] | |||
Operating Leased Assets [Line Items] | |||
Time period for extension option | 3 years | ||
Number of extension option | 3 | ||
Expiration of lease agreement | Apr-19 | ||
General Office [Member] | |||
Operating Leased Assets [Line Items] | |||
Expiration of lease agreement | Various dates through 2018 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments under Leases and Agreements (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Office Leases [Member] | |
Operating Leased Assets [Line Items] | |
Remainder of 2015 | $7,176 |
2016 | 10,061 |
2017 | 10,005 |
2018 | 9,604 |
2019 | 8,492 |
Thereafter | 22,462 |
Total | 67,800 |
Less: Sublease income | 628 |
Net operating lease obligation | 67,172 |
Third-Party Hosting Agreements [Member] | |
Operating Leased Assets [Line Items] | |
Remainder of 2015 | 2,958 |
2016 | 4,049 |
2017 | 775 |
Total | $7,782 |
401k_Savings_Plan_Additional_I
401(k) Savings Plan - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Contribution Plan Disclosure [Line Items] | ||
Contribution by employer to 401 (k) Savings Plan | $1,068 | $863 |
Employee's Contributions up to 3% [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer matching contribution, percent | 100.00% | 100.00% |
Employee's Contributions Between 3% and 5% [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer matching contribution, percent | 50.00% | 50.00% |
100% of Matching Contribution [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of the employee's compensation | 3.00% | 3.00% |
50% of Matching Contribution [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of the employee's compensation | 5.00% | 5.00% |
50% of Matching Contribution [Member] | Minimum [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of the employee's compensation | 3.00% | 3.00% |