Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Entity [Abstract] | |
Entity Registrant Name | Q2 HOLDINGS, INC. |
Entity Central Index Key | 1410384 |
Entity Filer Category | Non-accelerated Filer |
Document Type | S-1 |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $67,979 | $18,675 |
Restricted cash | 829 | 116 |
Investments | 20,956 | 0 |
Accounts receivable, net | 5,007 | 9,063 |
Prepaid expenses and other current assets | 2,695 | 1,079 |
Deferred solution and other costs, current portion | 5,060 | 3,124 |
Deferred implementation costs, current portion | 1,996 | 1,814 |
Total current assets | 104,522 | 33,871 |
Property and equipment, net | 18,521 | 14,831 |
Deferred solution and other costs, net of current portion | 7,159 | 5,358 |
Deferred implementation costs, net of current portion | 5,378 | 4,560 |
Other long-term assets | 1,226 | 2,488 |
Total assets | 136,806 | 61,108 |
Current liabilities: | ||
Accounts payable | 1,986 | 4,085 |
Accrued liabilities | 9,268 | 7,288 |
Accrued compensation | 3,936 | 4,376 |
Deferred revenues, current portion | 17,289 | 12,728 |
Capital lease obligations, current portion | 408 | 714 |
Total current liabilities | 32,887 | 29,191 |
Deferred revenues, net of current portion | 19,436 | 14,773 |
Capital lease obligations, net of current portion | 167 | 575 |
Long-term debt, net of current portion | 0 | 6,288 |
Deferred rent, net of current portion | 4,694 | 4,444 |
Other long-term liabilities | 682 | 101 |
Total liabilities | 57,866 | 55,372 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity (deficit): | ||
Preferred stock | 0 | 0 |
Common stock: $0.0001 par value; 150,000 shares authorized, 34,697 shares issued, and 34,696 shares outstanding as of December 31, 2014, and 35,000 shares authorized, 8,288 shares issued and outstanding as of December 31, 2013 | 3 | 1 |
Treasury stock at cost; 1 and zero shares at December 31, 2014 and 2013, respectively | -20 | 0 |
Additional paid-in capital | 143,337 | 6,675 |
Accumulated other comprehensive loss | -14 | 0 |
Accumulated deficit | -64,366 | -44,732 |
Total stockholders' equity (deficit) | 78,940 | -36,316 |
Total liabilities, redeemable convertible preferred stock, redeemable common stock and stockholders' equity (deficit) | 136,806 | 61,108 |
Series A Preferred Stock [Member] | ||
Redeemable convertible preferred stock and redeemable common stock: | ||
Redeemable convertible preferred stock and redeemable common stock | 0 | 10,815 |
Series B Preferred Stock [Member] | ||
Redeemable convertible preferred stock and redeemable common stock: | ||
Redeemable convertible preferred stock and redeemable common stock | 0 | 10,915 |
Series C Preferred Stock [Member] | ||
Redeemable convertible preferred stock and redeemable common stock: | ||
Redeemable convertible preferred stock and redeemable common stock | 0 | 18,995 |
Common Stock [Member] | ||
Redeemable convertible preferred stock and redeemable common stock: | ||
Redeemable convertible preferred stock and redeemable common stock | 0 | 1,327 |
Junior Convertible Preferred Stock [Member] | ||
Stockholders' equity (deficit): | ||
Preferred stock | $0 | $1,740 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $0.00 | $0.00 |
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 or Stated Value Per Share (in dollars per share) | $0.00 | $0.00 |
Common Stock, Shares Authorized | 150,000,000 | 35,000,000 |
Common Stock, Shares, Issued | 34,696,581 | 8,287,995 |
Common Stock, Shares Outstanding | 34,695,544 | 8,287,995 |
Treasury Stock, Shares | 1 | 0 |
Series A Preferred Stock [Member] | ||
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Par or Stated Value Per Share (in dollars per share) | $0.00 | $0.00 |
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Shares Authorized | 0 | 7,908,442 |
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Shares Issued | 0 | 7,908,442 |
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Shares Outstanding | 0 | 7,908,442 |
Series B Preferred Stock [Member] | ||
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Par or Stated Value Per Share (in dollars per share) | $0.00 | $0.00 |
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Shares Authorized | 0 | 1,818,182 |
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Shares Issued | 0 | 1,818,182 |
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Shares Outstanding | 0 | 1,818,182 |
Series C Preferred Stock [Member] | ||
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Par or Stated Value Per Share (in dollars per share) | $0.00 | $0.00 |
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Shares Authorized | 0 | 2,605,094 |
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Shares Issued | 0 | 2,605,094 |
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Shares Outstanding | 0 | 2,605,094 |
Common Stock [Member] | ||
Redeemable Convertible Preferred Stock and Redeemable Common Stock, Shares Outstanding | 0 | 3,829,221 |
Junior Convertible Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 0 | 1,250,967 |
Preferred Stock, Shares Issued | 0 | 1,250,967 |
Preferred Stock, Shares Outstanding | 0 | 1,250,967 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Income Statement [Abstract] | |||||
Revenues | $79,129 | $56,872 | $41,101 | ||
Cost of revenues | 46,054 | [1] | 36,261 | [1] | 25,170 |
Gross profit | 33,075 | 20,611 | 15,931 | ||
Operating expenses: | |||||
Sales and marketing | 23,069 | [1] | 16,726 | [1] | 8,962 |
Research and development | 12,086 | [1] | 9,029 | [1] | 5,317 |
General and administrative | 16,991 | [1] | 11,742 | [1] | 8,780 |
Unoccupied lease charges | 0 | 236 | 0 | ||
Total operating expenses | 52,146 | 37,733 | 23,059 | ||
Loss from operations | -19,071 | -17,122 | -7,128 | ||
Other income (expense): | |||||
Interest and other income | 65 | 6 | 4 | ||
Interest and other expense | -557 | -505 | -232 | ||
Total other expense, net | -492 | -499 | -228 | ||
Loss before income taxes | -19,563 | -17,621 | -7,356 | ||
Provision for income taxes | -71 | -55 | -164 | ||
Loss from continuing operations | -19,634 | -17,676 | -7,520 | ||
Loss from discontinued operations, net of tax | 0 | -199 | -1,259 | ||
Net loss | -19,634 | -17,875 | -8,779 | ||
Other comprehensive loss: | |||||
Unrealized loss on available-for-sale investments | -14 | 0 | 0 | ||
Comprehensive loss | ($19,648) | ($17,875) | ($8,779) | ||
Net loss per common share: | |||||
Loss from continuing operations per common share, basic and diluted (dollars per share) | ($0.67) | ($1.49) | ($0.66) | ||
Loss from discontinued operations per common share, basic and diluted (dollars per share) | $0 | ($0.02) | ($0.11) | ||
Net loss per common share, basic and diluted (dollars per share) | ($0.67) | ($1.51) | ($0.77) | ||
Weighted average common shares outstanding: | |||||
Basic and diluted (shares) | 29,257 | 11,866 | 11,345 | ||
[1] | Includes stock-based compensation as follows for the three years ended December 31, 2014, 2013 and 2012, respectively, Cost of Revenues of $623, $264, and $187, respectively; Sales and Marketing of $774, $274, and $123, respectively; Research and development of $527, $257, and $195, respectively; General and administrative of $2,646, $810. and $526, respectively; Total stock-based compensation of $4,570, $1,605, and $1,031, respectively. |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-based compensation expenses | $4,570 | $1,605 | $1,031 | ||||||||
Cost of revenues [Member] | |||||||||||
Stock-based compensation expenses | 191 | 159 | 147 | 126 | 72 | 70 | 61 | 61 | 623 | 264 | 187 |
Sales and marketing [Member] | |||||||||||
Stock-based compensation expenses | 231 | 189 | 187 | 167 | 94 | 81 | 60 | 39 | 774 | 274 | 123 |
Research and development [Member] | |||||||||||
Stock-based compensation expenses | 167 | 131 | 122 | 107 | 68 | 64 | 66 | 59 | 527 | 257 | 195 |
General and administrative [Member] | |||||||||||
Stock-based compensation expenses | $894 | $622 | $612 | $518 | $249 | $197 | $189 | $175 | $2,646 | $810 | $526 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Junior Convertible Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data, unless otherwise specified | |||||||
Common Stock, Shares, Outstanding, beginning at Dec. 31, 2011 | 11,337,000 | ||||||
Junior Convertible Preferred Stock, Shares Outstanding, beginning at Dec. 31, 2011 | 1,251,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stockholders' Equity, beginning | ($18,981) | $1,740 | $1 | $0 | $6,135 | $0 | ($26,857) |
Stock-based compensation | 1,031 | 1,031 | |||||
Exercise of stock options (shares) | 42,000 | ||||||
Exercise of stock options | 17 | 17 | |||||
Other comprehensive loss | 0 | ||||||
Net loss | -8,779 | -8,779 | |||||
Stockholders' Equity, ending at Dec. 31, 2012 | 18,981 | -1,740 | -1 | 0 | -6,135 | 0 | 26,857 |
Junior Convertible Preferred Stock, Shares Outstanding, ending at Dec. 31, 2012 | 1,251,000 | ||||||
Common Stock, Shares, Outstanding, ending at Dec. 31, 2012 | 11,379,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stockholders' Equity, beginning | -36,316 | 1,740 | 1 | 0 | 6,675 | 0 | -44,732 |
Stock-based compensation | 1,605 | 1,605 | |||||
Reclass to redeemable common stock (shares) | -3,829,000 | ||||||
Reclass to redeemable common stock | -1,327 | -1,327 | |||||
Exercise of stock options (shares) | 738,000 | ||||||
Exercise of stock options | 435 | 435 | |||||
Distribution associated with spin-off | -173 | -173 | |||||
Other comprehensive loss | 0 | ||||||
Net loss | -17,875 | -17,875 | |||||
Stockholders' Equity, ending at Dec. 31, 2013 | 36,316 | -1,740 | -1 | 0 | -6,675 | 0 | 44,732 |
Junior Convertible Preferred Stock, Shares Outstanding, ending at Dec. 31, 2013 | 0 | ||||||
Common Stock, Shares, Outstanding, ending at Dec. 31, 2013 | 8,287,995 | 8,288,000 | |||||
Common Stock, Shares, Outstanding, beginning at Sep. 30, 2013 | |||||||
Junior Convertible Preferred Stock, Shares Outstanding, beginning at Sep. 30, 2013 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stockholders' Equity, beginning | -36,316 | 1,740 | 0 | 0 | |||
Net loss | -6,499 | ||||||
Stockholders' Equity, ending at Dec. 31, 2013 | 36,316 | -1,740 | 0 | 0 | |||
Junior Convertible Preferred Stock, Shares Outstanding, ending at Dec. 31, 2013 | 0 | 1,251,000 | |||||
Common Stock, Shares, Outstanding, ending at Dec. 31, 2013 | 8,287,995 | 8,288,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stockholders' Equity, beginning | 78,940 | 0 | 3 | 20 | 143,337 | -14 | -64,366 |
Stock-based compensation | 4,570 | 4,570 | |||||
Conversion of Series A, B, C, Common Preferred Stock and Junior Preferred Stock into Common Stock on initial public offering (shares converted) | -1,251,000 | ||||||
Conversion of Series A, B, C, Common Preferred Stock and Junior Preferred Stock into Common Stock on initial public offering, amount converted | -1,740 | ||||||
Conversion of Series A, B, C, Common Preferred Stock and Junior Preferred Stock into Common Stock on initial public offering (shares issued) | 17,412,000 | ||||||
Conversion of Series A, B, C, Common Preferred Stock and Junior Preferred Stock into Common Stock on initial public offering, amount issued | 42,051 | 1 | 43,790 | ||||
Initial public offering, net of issuance costs (shares) | 7,414,000 | ||||||
Initial public offering, net of issuance costs | 86,286 | 1 | 86,285 | ||||
Exercise of stock options (shares) | 1,583,000 | ||||||
Exercise of stock options | 2,017 | 2,017 | |||||
Shares acquired to settle the exercise of stock options (shares) | -1,000 | ||||||
Shares acquired to settle the exercise of stock options | -20 | -20 | |||||
Other comprehensive loss | -14 | -14 | |||||
Net loss | -19,634 | -19,634 | |||||
Stockholders' Equity, ending at Dec. 31, 2014 | ($78,940) | $0 | ($3) | ($20) | ($143,337) | $14 | $64,366 |
Junior Convertible Preferred Stock, Shares Outstanding, ending at Dec. 31, 2014 | 0 | 0 | |||||
Common Stock, Shares, Outstanding, ending at Dec. 31, 2014 | 34,695,544 | 34,696,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($19,634) | ($17,875) | ($8,779) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Amortization of deferred implementation, solution and other costs | 4,435 | 2,837 | 1,869 |
Depreciation and amortization | 4,083 | 2,971 | 1,697 |
Amortization of debt issuance costs | 96 | 68 | 0 |
Amortization of premiums on investments | 17 | 0 | 0 |
Stock-based compensation expenses | 4,570 | 1,605 | 1,031 |
Loss from discontinued operations | 0 | 199 | 1,259 |
Allowance for sales credits | 65 | 57 | 51 |
Loss on disposal of long-lived assets | 0 | 18 | 24 |
Unoccupied lease charges | 0 | 236 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 3,991 | -3,267 | -2,013 |
Prepaid expenses and other current assets | -628 | -414 | 124 |
Deferred solution and other costs | -5,329 | -4,011 | -1,728 |
Deferred implementation costs | -3,842 | -3,155 | -2,625 |
Other long-term assets | -244 | -1,539 | -182 |
Accounts payable | -842 | 1,326 | 1,949 |
Accrued liabilities | -1,398 | 5,523 | 1,094 |
Deferred revenue | 9,224 | 9,706 | 4,299 |
Deferred rent and other long-term liabilities | 150 | 4,444 | 41 |
Net cash used in continuing operations | -5,286 | -1,271 | -1,889 |
Net cash used in discontinued operating activities | 0 | -236 | -1,120 |
Net cash used in operating activities | -5,286 | -1,507 | -3,009 |
Cash flows from investing activities: | |||
Purchases of investments | -23,216 | 0 | 0 |
Redemption of investments | 2,230 | 0 | 0 |
Purchases of property and equipment | -5,036 | -11,138 | -1,804 |
Acquisitions and purchase of intangible assets | 0 | -125 | -425 |
Increase in restricted cash | -713 | 0 | -116 |
Cash included in distribution of spin-off | 0 | -46 | 0 |
Net cash used in continuing investing activities | -26,735 | -11,309 | -2,345 |
Net cash used in discontinued investing activities | 0 | 0 | -261 |
Net cash used in investing activities | -26,735 | -11,309 | -2,606 |
Cash flows from financing activities: | |||
Proceeds from issuance of preferred stock, net of issuance costs | 0 | 18,995 | 0 |
Proceeds from borrowings on line of credit | 12,500 | 6,350 | 0 |
Payments on line of credit | -18,710 | -2,682 | 0 |
Payments on capital lease obligations | -748 | -718 | -654 |
Proceeds from the issuance of common stock, net of issuance costs | 86,286 | 0 | 0 |
Proceeds from exercise of stock options to purchase common stock | 2,017 | 435 | 17 |
Shares acquired to settle the exercise of stock options | -20 | 0 | 0 |
Net cash provided by (used in) financing activities | 81,325 | 22,380 | -637 |
Net increase (decrease) in cash and cash equivalents | 49,304 | 9,564 | -6,252 |
Cash and cash equivalents, beginning of period | 18,675 | 9,111 | 15,363 |
Cash and cash equivalents, end of period | 67,979 | 18,675 | 9,111 |
Supplemental disclosures of cash flow information: | |||
Cash paid for taxes | 55 | 164 | 199 |
Cash paid for interest | 419 | 377 | 184 |
Supplemental disclosure of non-cash investing activities: | |||
Equipment acquired under capital lease | 0 | 975 | 1,185 |
Data center assets acquired under financing arrangements | $5,209 | $0 | $0 |
Organization_and_Description_o
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business |
Q2 Holdings, Inc., or the Company, is a leading provider of secure, cloud-based virtual banking solutions. The Company enables regional and community financial institutions, or RCFIs, to deliver a robust suite of integrated virtual banking services and more effectively engage with their retail and commercial account holders who expect to bank anytime, anywhere and on any device. The Company delivers its solutions to the substantial majority of its customers using a software-as-a-service, or SaaS, model under which its RCFI customers pay subscription fees for the use of the Company's solutions. | |
The Company, formerly known as CBG Holdings, Inc., was incorporated in Delaware in March 2005 and is a holding company that owns 100% of the outstanding capital stock of Q2 Software, Inc. On March 1, 2013, the Company reorganized its business operations in conjunction with the private placement of its Series C redeemable convertible preferred stock. Prior to the reorganization, the Company owned 100% of the outstanding capital stock of cbanc Network Inc., or cbanc. Pursuant to the reorganization, the Company distributed all shares of cbanc to its stockholders in a spin-off, and the Company was renamed Q2 Holdings, Inc. | |
The Company's headquarters are located in Austin, Texas. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | ||||||||||||||||
Basis of Presentation and Principles of Consolidation | |||||||||||||||||
As used in this report, the terms "the Company," "we," "us," or "our" refer to Q2 Holdings, Inc. and its wholly-owned subsidiary. These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, and Securities and Exchange Commission, or SEC, requirements. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses. Significant items subject to such estimates include stock-based compensation, the useful lives of property and equipment and income taxes. In accordance with GAAP, management bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from those estimates. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
The Company considers all highly liquid investments acquired with an original maturity of ninety days or less at the date of purchase to be cash equivalents. Cash equivalents are stated at cost or fair value based on the underlying security. | |||||||||||||||||
Restricted Cash | |||||||||||||||||
Restricted cash consists of deposits held in checking and money market accounts for leased office space. | |||||||||||||||||
Investments | |||||||||||||||||
Investments consist primarily of U.S. government agency bonds, corporate bonds, commercial paper, certificates of deposits and money market funds. All investments are considered available for sale and are carried at fair value. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, restricted cash, investments and accounts receivable. The Company's cash and cash equivalents and restricted cash are placed with high credit quality financial institutions and issuers, and at times may exceed federally-insured limits. The Company has not experienced any loss relating to cash and cash equivalents or restricted cash in these accounts. The Company provides credit, in the normal course of business, to a number of its customers. The Company performs periodic credit evaluations of its customers' financial condition and generally does not require collateral. No individual customer accounted for 10% or more of revenues for each of the years ended December 31, 2014, 2013 and 2012. No individual customer accounted for 10% or more of accounts receivable, net, as of December 31, 2014 or 2013. | |||||||||||||||||
Accounts Receivable | |||||||||||||||||
Accounts receivable are stated at net realizable value, including both billed and unbilled receivables to customers. Unbilled receivable balances arise primarily when the Company provides services in advance of billing for these services and also when the Company earns revenues based on the number of registered users and the number of bill-pay and certain other transactions that registered users perform on the Company's virtual banking solutions in excess of the levels included in the Company's minimum subscription fee. Generally, billing for such revenues related to the number of registered users and the number of transactions processed by our registered users occurs one month in arrears. Included in the accounts receivable balances as of December 31, 2014 and 2013 were unbilled receivables of $2.3 million and $1.8 million, respectively. | |||||||||||||||||
The Company assesses the collectability of outstanding accounts receivable on an ongoing basis and maintains an allowance for doubtful accounts for accounts receivable deemed uncollectable. This allowance is recorded as a reduction against accounts receivable. As of December 31, 2014 and 2013, the Company did not provide for an allowance for doubtful accounts, as all amounts outstanding were deemed collectable. Historically, the Company's collection experience has not varied significantly, and bad debt expenses have been insignificant. | |||||||||||||||||
The Company maintains a reserve for estimated sales credits issued to customers for billing disputes or other service-related reasons. This allowance is recorded as a reduction against current period revenues and accounts receivable. In estimating this allowance, the Company analyzes prior periods to determine the amounts of sales credits issued to customers compared to the revenues in the period that related to the original customer invoice. This estimate is analyzed quarterly and adjusted as necessary. | |||||||||||||||||
The following table shows the Company's allowance for sales credits as follows: | |||||||||||||||||
Beginning Balance | Additions | Deductions | Ending Balance | ||||||||||||||
Year Ended December 31, 2012 | $ | — | $ | 51 | $ | — | $ | 51 | |||||||||
Year Ended December 31, 2013 | 51 | 290 | (233 | ) | 108 | ||||||||||||
Year Ended December 31, 2014 | $ | 108 | $ | 399 | $ | (334 | ) | $ | 173 | ||||||||
Deferred Implementation Costs | |||||||||||||||||
The Company capitalizes certain personnel and other costs, such as employee salaries, benefits and the associated payroll taxes that are direct and incremental to the implementation of its solutions. The Company analyzes implementation costs that may be capitalized to assess their recoverability, and only capitalizes costs that it anticipates to be recoverable. The Company assesses the recoverability of its deferred implementation costs by comparing the greater of the amount of the non-cancellable portion of a customer's contract and the non-refundable customer prepayments received as it relates to the specific implementation costs incurred. The Company begins amortizing the deferred implementation costs for an implementation once the revenue recognition criteria have been met and the Company amortizes those deferred implementation costs ratably over the remaining term of the customer agreement. The portion of deferred implementation costs expected to be amortized during the succeeding twelve-month period is recorded in current assets as deferred implementation costs, current portion, and the remainder is recorded in long-term assets as deferred implementation costs, net of current portion. | |||||||||||||||||
Deferred Solution and Other Costs | |||||||||||||||||
The Company capitalizes sales commissions and other third-party costs, such as third party licenses and maintenance related to its customer agreements. The Company capitalizes sales commissions because the commission charges are so closely related to the revenues from the non-cancellable customer agreements that they should be recorded as an asset and charged to expense over the same period that the related revenue is recognized. The Company begins amortizing deferred solution and other costs for a particular customer agreement once the revenue recognition criteria are met and amortizes those deferred costs over the remaining term of the customer agreement. The Company analyzes solution and other costs that may be capitalized to assess their recoverability and only capitalizes costs that it anticipates to be recoverable. The portion of capitalized costs expected to be amortized during the succeeding twelve-month period is recorded in current assets as deferred solution and other costs, current portion, and the remainder is recorded in long-term assets as deferred solution and other costs, net of current portion. Deferred commissions were $7.0 million and $4.6 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Maintenance and repairs that do not extend the life of or improve an asset are expensed in the period incurred. | |||||||||||||||||
The estimated useful lives of property and equipment are as follows: | |||||||||||||||||
Computer hardware and equipment | 3 - 5 years | ||||||||||||||||
Purchased software and licenses | 3 - 5 years | ||||||||||||||||
Furniture and fixtures | 7 years | ||||||||||||||||
Leasehold improvements | Lesser of estimated useful life or lease term | ||||||||||||||||
Deferred Revenues | |||||||||||||||||
Deferred revenues primarily consist of amounts that have been billed to or received from customers in advance of revenue recognition and prepayments received from customers in advance for implementation, maintenance and other services, as well as initial subscription fees. The Company recognizes deferred revenues as revenues when the services are performed and the corresponding revenue recognition criteria are met. Customer prepayments are generally applied against invoices issued to customers when services are performed and billed. Deferred revenues that are expected to be recognized as revenues during the succeeding twelve month period are recorded in current liabilities as deferred revenues, current portion and the remaining portion is recorded in long-term liabilities as deferred revenues, net of current portion. | |||||||||||||||||
Revenues | |||||||||||||||||
All revenue-generating activities are directly related to the sale, implementation and support of the Company's solutions within a single operating segment. The Company derives the substantial majority of its revenues from subscription fees for the use of its solutions hosted in the Company's data centers as well as revenues for implementation and customer support services related to the Company's solutions. A small portion of the Company's customers host the Company's solutions in their own data centers under term license and maintenance agreements, and the Company recognizes the corresponding revenues ratably over the term of those customer agreements. | |||||||||||||||||
Revenues are recognized net of sales credits and allowances. The Company begins to recognize revenues for a customer when all of the following criteria are satisfied: | |||||||||||||||||
• | there is persuasive evidence of an arrangement; | ||||||||||||||||
• | the service has been or is being provided to the customer; | ||||||||||||||||
• | the collection of the fees is reasonably assured; and | ||||||||||||||||
• | the amount of fees to be paid by the customer is fixed or determinable. | ||||||||||||||||
Determining whether and when these criteria have been met can require significant judgment and estimates. In general, revenue recognition commences when the Company's solutions are implemented and made available to the customers. | |||||||||||||||||
The Company's software solutions are available for use in hosted application arrangements under subscription fee agreements. Subscription fees from these applications, including related customer support, are recognized ratably over the customer agreement term beginning on the date the solution is made available to the customer. Amounts that have been invoiced are recorded in accounts receivable and deferred revenues or revenues, depending on whether the Company's revenue recognition criteria have been met. | |||||||||||||||||
The Company considers subscription fees to be fixed or determinable unless the fees are subject to refund or adjustment or are not payable within the Company's standard payment terms. In determining whether collection of subscription fees is reasonably assured, the Company considers financial and other information about customers, such as a customer's current credit-worthiness and payment history over time. Historically bad debt expenses have not been significant. | |||||||||||||||||
The Company enters into arrangements with multiple-deliverables that generally include multiple subscriptions and implementation services. Additional agreements with existing customers that are not in close proximity to the original arrangements are treated as separate contracts for accounting purposes. | |||||||||||||||||
For multiple-deliverable arrangements, arrangement consideration is allocated to deliverables based on their relative selling price. In order to treat deliverables in a multiple-deliverable arrangement as separate units of accounting, the deliverables must have standalone value upon delivery. If the deliverables have standalone value upon delivery, each deliverable must be accounted for separately. The Company's subscription services have standalone value as such services are often sold separately. In determining whether implementation services have standalone value apart from the subscription services, the Company considers various factors including the availability of the services from other vendors. To date, the Company has concluded that the implementation services included in multiple-deliverable arrangements do not have standalone value. As a result, when implementation services are sold in a multiple-deliverable arrangement, the Company defers any arrangement fees for implementation services and recognizes such amounts ratably over the period of performance for the initial agreement term. | |||||||||||||||||
When multiple-deliverables included in an arrangement are separated into different units of accounting, the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence of selling price, or VSOE, if available, third-party evidence of selling price, or TPE, if VSOE is not available or best estimate of selling price, or BESP, if neither VSOE nor TPE is available. The Company has not established VSOE for its subscription services due to lack of pricing consistency, the introduction of new services and other factors. The Company has determined that TPE is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. Accordingly, the Company uses BESP to determine the relative selling price. The amount of revenue allocated to delivered items is limited by contingent revenues. | |||||||||||||||||
The Company determined BESP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company's discounting practices, the size and volume of its transactions, customer characteristics, price lists, go-to-market strategy, historical standalone sales and agreement prices. As the Company's go-to-market strategies evolve, it may modify its pricing practices in the future, which could result in changes in relative selling prices, and include both VSOE and BESP. | |||||||||||||||||
Subscription Fee Revenues | |||||||||||||||||
The Company's solutions are available as hosted solutions under subscription fee agreements without licensing perpetual rights to the software. Subscription fees from a hosted solution are recognized monthly over the customer agreement term beginning on the date the Company's solution is made available to the customer. Additional fees for monthly usage above the levels included in the standard subscription fee, which include fees for transactions processed during the period, are recognized as revenue in the month when the usage amounts are determined and reported. Any revenues related to upfront implementation services are recognized ratably over the same customer agreement term. Amounts that have been invoiced are recorded in accounts receivable and deferred revenues or revenues, depending on whether the revenue recognition criteria have been met. | |||||||||||||||||
Professional Services Revenues | |||||||||||||||||
When professional services are not combined with subscription services or term licenses as a single unit of accounting, these professional services revenues are recognized as the services are performed. | |||||||||||||||||
Certain out-of-pocket expenses billed to customers are recorded as revenues rather than an offset to the related expense. Revenues recorded from out-of-pocket expense reimbursements totaled approximately $0.8 million, $0.5 million and $0.4 million during the years ended December 31, 2014, 2013 and 2012, respectively. The out-of-pocket expenses are reported in cost of revenues. | |||||||||||||||||
Term Licenses and Maintenance Revenues | |||||||||||||||||
A small portion of the Company's customers host and manage the Company's solutions on-premises or in third-party data centers under term license and maintenance agreements. Term licenses sold with maintenance, which entitles the customer to technical support and upgrades and updates to the software made available on a when-and-if-available basis, are accounted for under Accounting Standards Codification 985-605, "Software Revenue Recognition." The Company does not have VSOE of fair value for the maintenance and professional services so the entire arrangement consideration is recognized monthly over the term of the software license when all of the other revenue recognition criteria have been met. Revenues from term licenses and maintenance agreements were not significant in the periods presented. | |||||||||||||||||
Cost of Revenues | |||||||||||||||||
Cost of revenues is comprised primarily of salaries and other personnel-related costs, including employee benefits, bonuses and stock-based compensation, for employees providing services to the Company's customers. Costs associated with these services include the costs of the Company's implementation, customer support, data center and customer training personnel as well as reclassification of certain research and development expenses related to research and development personnel who perform services related to implementation and customer support. Cost of revenues also includes the direct costs of bill-pay and other third-party intellectual property included in the Company's solutions, the amortization of deferred solution and services costs, co-location facility costs and depreciation of the Company's data center assets, an allocation of general overhead costs and referral fees. Direct costs of third-party intellectual property include amounts paid for third-party licenses and related maintenance that are incorporated into the Company's software, with the costs amortized to cost of revenues over the useful lives of the purchased assets. | |||||||||||||||||
The amount of research and development expenses allocated to cost of revenues was $1.4 million, $1.6 million and $1.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
The Company capitalizes certain personnel costs directly related to the implementation of its solutions to the extent those costs are considered to be recoverable from future revenues. The Company amortizes the costs for a particular implementation once revenue recognition commences, and the Company amortizes those implementation costs over the remaining term of the customer agreement. Other costs not directly recoverable from future revenues are expensed in the period incurred. The Company capitalized implementation costs in the amount of $3.8 million, $3.2 million, and $2.6 million during the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Software Development Costs | |||||||||||||||||
Software development costs include salaries and other personnel-related costs, including employee benefits, bonuses and stock-based compensation, attributed to programmers, software engineers and quality control teams working on the Company's solutions. Costs related to software development incurred between reaching technological feasibility and the point at which the software solution is ready for general release have been insignificant through December 31, 2014, and accordingly all of the Company's software development costs have been expensed as incurred as research and development. | |||||||||||||||||
Research and Development Costs | |||||||||||||||||
Research and development costs include salaries and other personnel-related costs, including employee benefits, bonuses and stock-based compensation, third-party contractor expenses, software development tools, an allocation of facilities and depreciation expenses and other related expenses incurred in developing new solutions and upgrading and enhancing existing solutions. Research and development costs are expensed as incurred. | |||||||||||||||||
Advertising | |||||||||||||||||
All advertising costs of the Company are expensed the first time the advertising takes place. Advertising costs were $0.5 million, and $0.3 million for the years ended December 31, 2014 and 2013, respectively, and advertising costs were insignificant for the year ended December 31, 2012. | |||||||||||||||||
Sales Tax | |||||||||||||||||
The Company presents sales taxes and other taxes collected from customers and remitted to governmental authorities on a net basis and, as such, excludes them from revenues. | |||||||||||||||||
Comprehensive Loss | |||||||||||||||||
Comprehensive loss includes net loss as well as other changes in stockholders' equity that result from transactions and economic events other than those with stockholders. Other comprehensive loss consists of net loss and unrealized gains and losses on investments. | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
Stock options and restricted stock units awarded to employees, directors and consultants are measured at fair value at each grant date. The Company recognizes compensation expense ratably over the requisite service period of the option or restricted stock unit award. Generally, options vest 25% on the one-year anniversary of the grant date with the balance vesting monthly over the following 36 months, and restricted stock unit awards vest in four annual installments of 25% beginning on the one-year anniversary of the grant date. | |||||||||||||||||
The Company values stock options using the Black-Scholes option-pricing model, which requires the input of subjective assumptions, including the risk-free interest rate, expected life, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for constant maturity U.S. Treasury securities consistent with the expected term of the Company's employee stock options. The expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method. Under the simplified method, the expected life of an option is presumed to be the mid-point between the vesting date and end of the contractual term. The Company used the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options. Expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the stock options. The Company assumed no dividend yield because it does not expect to pay dividends in the near future, which is consistent with the Company's history of not paying dividends. | |||||||||||||||||
Income Taxes | |||||||||||||||||
Deferred income taxes are provided for the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and operating loss carryforwards and credits using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. The Company assesses the likelihood that deferred tax assets will be realized and recognizes a valuation allowance if it is more likely than not that some portion of the deferred tax assets will not be realized. This assessment requires judgment as to the likelihood and amounts of future taxable income by tax jurisdiction. To date, the Company has provided a full valuation allowance against its deferred tax assets as it believes the objective and verifiable evidence of its historical pretax net losses outweighs any positive evidence of its forecasted future results. Although the Company believes that its tax estimates are reasonable, the ultimate tax determination involves significant judgment that is subject to audit by tax authorities in the ordinary course of business. The Company will continue to monitor the positive and negative evidence, and it will adjust the valuation allowance as sufficient objective positive evidence becomes available. | |||||||||||||||||
The Company evaluates its uncertain tax positions based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized. Potential interest and penalties associated with any uncertain tax positions are recorded as a component of income tax expense. Through December 31, 2014, the Company has not identified any material uncertain tax positions for which liabilities would be required to be recorded. | |||||||||||||||||
Basic and Diluted Net Loss per Common Share | |||||||||||||||||
The Company uses the two-class method to compute net loss per common share because the Company has issued securities, other than common stock, that contractually entitle the holders to participate in dividends and earnings of the Company. The two-class method requires earnings for the period to be allocated between common stock and participating securities based upon their respective rights to receive distributed and undistributed earnings. Holders of the Company's Series A, B and C preferred stock are entitled, on a pari passu basis, to receive dividends when, as and if declared by the board of directors, prior and in preference to any declaration or payment of any dividend on the common stock or junior convertible preferred stock until such time as the total dividends paid on each share of Series A, B and C preferred stock is equal to the original issue price of the shares. Holders of junior convertible preferred stock are entitled to receive a pro rata share of any dividend declared, based on the number of shares of common and preferred stock outstanding. As a result, all series of the Company's preferred stock are considered participating securities. | |||||||||||||||||
Under the two-class method, for periods with net income, basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Net income attributable to common stockholders is computed by subtracting from net income the portion of current year earnings that the participating securities would have been entitled to receive pursuant to their dividend rights had all of the year's earnings been distributed. No such adjustment to earnings is made during periods with a net loss, as the holders of the participating securities have no obligation to fund losses. Diluted net income per common share is computed under the two-class method by using the weighted-average number of shares of common stock outstanding plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options and warrants. In addition, the Company analyzes the potential dilutive effect of the outstanding participating securities under the if-converted method when calculating diluted earnings per share, in which it is assumed that the outstanding participating securities convert into common stock at the beginning of the period. The Company reports the more dilutive of the approaches as its diluted net income per share during the period. Due to net losses for each of the years ended December 31, 2014, 2013 and 2012, basic and diluted net loss per share were the same, as the effect of all potentially dilutive securities would have been anti-dilutive. | |||||||||||||||||
The following table sets forth the computations of net loss per share for the periods listed: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Numerators: | |||||||||||||||||
Loss from continuing operations attributable to common stockholders | $ | (19,634 | ) | $ | (17,676 | ) | $ | (7,520 | ) | ||||||||
Loss from discontinued operations attributable to common stockholders | — | (199 | ) | (1,259 | ) | ||||||||||||
Net loss attributable to common stockholders | $ | (19,634 | ) | $ | (17,875 | ) | $ | (8,779 | ) | ||||||||
Denominator: | |||||||||||||||||
Weighted-average common shares outstanding, basic and diluted | 29,257 | 11,866 | 11,345 | ||||||||||||||
Loss from continuing operations per share, basic and diluted | $ | (0.67 | ) | $ | (1.49 | ) | $ | (0.66 | ) | ||||||||
Loss from discontinued operations per share, basic and diluted | $ | — | $ | (0.02 | ) | $ | (0.11 | ) | |||||||||
Net loss per common share, basic and diluted | $ | (0.67 | ) | $ | (1.51 | ) | $ | (0.77 | ) | ||||||||
Due to net losses for each of the years ended December 31, 2014, 2013 and 2012, basic and diluted loss per share were the same, as the effect of all potentially dilutive securities would have been anti-dilutive. The following table sets forth the anti-dilutive common share equivalents for the periods listed: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Redeemable convertible preferred stock: | |||||||||||||||||
Series A preferred stock | — | 7,908 | 7,908 | ||||||||||||||
Series B preferred stock | — | 1,818 | 1,818 | ||||||||||||||
Series C preferred stock | — | 2,184 | — | ||||||||||||||
Junior preferred stock | — | 1,251 | 1,251 | ||||||||||||||
Stock options and restricted stock units | 6,139 | 5,422 | 4,765 | ||||||||||||||
Total anti-dilutive common share equivalents | 6,139 | 18,583 | 15,742 | ||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), or ASU 2014-09, which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled to when products are transferred to customers. ASU 2014-09 will be effective for the Company beginning in its first quarter of 2017. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements. | |||||||||||||||||
Subsequent Events | |||||||||||||||||
The Company has evaluated subsequent events through February 12, 2015, the date the financial statements were issued. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||
The carrying values of the Company's financial instruments, principally cash equivalents, investments, accounts receivable, restricted cash and accounts payable, approximated their fair values due to the short period of time to maturity or repayment. The carrying values of the Company's debt instruments approximated their fair value based on rates currently available to the Company. | |||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability 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. The current accounting guidance for fair value measurements defines a three-level valuation hierarchy for disclosures as follows: | |||||||||||||||||
• | Level I—Unadjusted quoted prices in active markets for identical assets or liabilities; | ||||||||||||||||
• | Level II—Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and | ||||||||||||||||
• | Level III—Unobservable inputs that are supported by little or no market activity, which requires the Company to develop its own assumptions. | ||||||||||||||||
The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
The following table details the fair value hierarchy of the Company's financial assets measured at fair value on a recurring basis as of December 31, 2014: | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Cash Equivalents: | Fair Value | Quoted Prices | Significant Other | Significant | |||||||||||||
in Active | Observable Inputs | Unobservable | |||||||||||||||
Markets for | (Level 2) | Inputs | |||||||||||||||
Identical Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Money market funds | $ | 17,865 | $ | 17,865 | $ | — | $ | — | |||||||||
Certificates of deposit | 1,456 | — | 1,456 | — | |||||||||||||
$ | 19,321 | $ | 17,865 | $ | 1,456 | $ | — | ||||||||||
Investments: | Fair Value | Quoted Prices | Significant Other | Significant | |||||||||||||
in Active | Observable Inputs | Unobservable | |||||||||||||||
Markets for | (Level 2) | Inputs | |||||||||||||||
Identical Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
U.S. government agency bonds | $ | 7,502 | $ | — | $ | 7,502 | $ | — | |||||||||
Corporate bonds and commercial paper | 6,192 | — | 6,192 | — | |||||||||||||
Certificates of deposit | 7,262 | — | 7,262 | — | |||||||||||||
$ | 20,956 | $ | — | $ | 20,956 | $ | — | ||||||||||
All Company assets with fair values measured on a recurring basis, which consists only of cash and cash equivalents, as of December 31, 2013 were classified as Level 1 assets. | |||||||||||||||||
The Company determines the fair value of its investment holdings based on pricing from our pricing vendors. The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs). |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents and Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments | ||||||||||||||||
The Company's cash, cash equivalents and investments as of December 31, 2014 and 2013 consisted primarily of cash, U.S. government agency bonds, corporate bonds, commercial paper, certificates of deposits and money market funds. | |||||||||||||||||
The Company classifies investments as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. All investments are recorded at estimated fair value. Unrealized gains and losses on available-for-sale investments are included in accumulated other comprehensive loss, a component of stockholders' equity. The Company evaluates its investments to assess whether those with unrealized loss positions are other than temporarily impaired. The Company considers impairments to be other than temporary if they are related to deterioration in credit risk or if it is likely the Company will sell the investments before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in other income (expense), net, in the consolidated statements of comprehensive loss. Interest, amortization of premiums, and accretion of discount on all investments classified as available-for-sale are also included as a component of other income (expense), net, in the consolidated statements of comprehensive loss. | |||||||||||||||||
As of December 31, 2014 and 2013, the Company's cash was $48.7 million and $18.7 million, respectively. | |||||||||||||||||
A summary of the cash equivalents and investments as of December 31, 2014 is as follows: | |||||||||||||||||
Cash Equivalents: | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
Money market funds | $ | 17,865 | $ | — | $ | — | $ | 17,865 | |||||||||
Certificates of deposit | 1,456 | — | — | 1,456 | |||||||||||||
$ | 19,321 | $ | — | $ | — | $ | 19,321 | ||||||||||
Investments: | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
U.S. government agency bonds | $ | 7,508 | $ | — | $ | (6 | ) | $ | 7,502 | ||||||||
Corporate bonds and commercial paper | 6,200 | — | (8 | ) | 6,192 | ||||||||||||
Certificates of deposit | 7,262 | — | — | 7,262 | |||||||||||||
$ | 20,970 | $ | — | $ | (14 | ) | $ | 20,956 | |||||||||
The Company may sell its investments at any time, without significant penalty, for use in current operations or for other purposes, even if they have not yet reached maturity. As a result, the Company classifies its investments, including investments with maturities beyond twelve months as current assets in the accompanying consolidated balance sheets. | |||||||||||||||||
The following table summarizes the estimated fair value of the Company's investments, designated as available-for-sale and classified by the contractual maturity date of the investments as of the dates shown: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Due within one year or less | $ | 9,095 | $ | — | |||||||||||||
Due after one year through five years | 11,861 | — | |||||||||||||||
Total | $ | 20,956 | $ | — | |||||||||||||
The Company has certain available-for-sale investments in a gross unrealized loss position, all of which have been in such position for less than twelve months. The Company reviews its debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other than temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial position and near-term prospects of the issuer and its intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment's amortized-cost basis. If the Company determines that an other than temporary decline exists in one of these investments, the respective investment would be written down to fair value. For debt securities, the portion of the write-down related to credit loss would be recognized to other income, net in the consolidated statements of comprehensive loss. Any portion not related to credit loss would be included in accumulated other comprehensive loss. Because the Company does not intend to sell any investments which have an unrealized loss position at this time, and it is not more likely than not that the Company will be required to sell the investment before recovery of its amortized cost basis, which may be maturity, the Company does not consider the investments with unrealized loss positions to be other than temporarily impaired as of December 31, 2014. | |||||||||||||||||
The following table shows the fair values and the gross unrealized losses of these available-for-sale investments aggregated by investment category as of as of December 31, 2014: | |||||||||||||||||
Fair Value | Gross Unrealized Loss | ||||||||||||||||
U.S. government agency bonds | $ | 7,508 | $ | (6 | ) | ||||||||||||
Corporate bonds and commercial paper | 6,200 | (8 | ) | ||||||||||||||
Total | $ | 13,708 | $ | (14 | ) | ||||||||||||
The Company did not have any available-for-sale investments as of December 31, 2013. |
Deferred_Solution_and_Other_Co
Deferred Solution and Other Costs | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Deferred Solution and Other Costs | Deferred Solution and Other Costs | ||||||||
Deferred solution and other costs, current portion and net of current portion, consisted of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Deferred solution costs | $ | 3,585 | $ | 2,174 | |||||
Deferred commissions | 1,475 | 950 | |||||||
Deferred solution and other costs, current portion | $ | 5,060 | $ | 3,124 | |||||
Deferred solution costs | $ | 1,684 | $ | 1,721 | |||||
Deferred commissions | 5,475 | 3,637 | |||||||
Deferred solution and other costs, net of current portion | $ | 7,159 | $ | 5,358 | |||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | Property and Equipment | ||||||||
Property and equipment consisted of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Computer hardware and equipment | $ | 13,370 | $ | 8,917 | |||||
Purchased software and licenses | 5,759 | 3,501 | |||||||
Furniture and fixtures | 3,116 | 3,014 | |||||||
Leasehold improvements | 4,064 | 4,020 | |||||||
26,309 | 19,452 | ||||||||
Accumulated depreciation | (7,788 | ) | (4,621 | ) | |||||
Property and equipment | $ | 18,521 | $ | 14,831 | |||||
Depreciation expense, including amortization of assets held under capital leases, was $4.0 million, $2.9 million and $1.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. Property and equipment included $3.2 million for assets acquired under capital leases at each of December 31, 2014 and 2013. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Liabilities | Accrued Liabilities | ||||||||
Accrued liabilities consisted of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Accrued data center equipment purchases | $ | 3,228 | $ | 512 | |||||
Accrued data center software purchases | 1,483 | 467 | |||||||
Accrued transaction processing fees | 1,537 | 3,761 | |||||||
Accrued professional services | 730 | 721 | |||||||
Other | 2,290 | 1,827 | |||||||
Total accrued liabilities | $ | 9,268 | $ | 7,288 | |||||
Debt
Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt | Debt |
In April 2013 the Company entered into a secured credit facility agreement, or Credit Facility, with Wells Fargo Bank, National Association, or Wells Fargo, which the Company and Wells Fargo subsequently amended on March 24, 2014 and again on August 11, 2014. The Credit Facility, as amended, provides for a line of credit of up to $25.0 million, with an accordion feature, or Accordion Feature, allowing the Company to increase its maximum borrowings by up to an additional $25.0 million, subject to certain conditions and limitations, including that borrowings at any time shall be limited to 75% of the Company's trailing twelve-month recurring revenues. Access to the total borrowings available under the Credit Facility is restricted based on covenants related to the Company's minimum liquidity and adjusted EBITDA. Amounts borrowed under the Credit Facility accrue interest, at the Company's election at either: (i) the per annum rate equal to the LIBOR rate plus an applicable margin; or (ii) the current base rate plus the greater of the U.S. Federal Funds rate plus one percentage point, the one-month LIBOR plus one percentage point, or the lending financial institution's prime rate. The Company pays a monthly fee based on the total unused borrowings balance, an annual administrative fee and the initial closing fee, which is paid in three equal annual installments over the first three years of the Credit Facility. The Accordion Feature expires in October 2016, at which time maximum borrowings under the Facility are reduced to $25.0 million, and the Credit Facility matures in April 2017, at which time any outstanding borrowings and accrued interest become payable. In April 2013, the Company drew an advance on the Credit Facility of $2.5 million to pay off its existing loan and security agreement with another institution. In June 2013, the Company drew an advance on the Credit Facility of $3.9 million to fund capital expenditures and secured a letter of credit for the benefit of the landlord of its new corporate headquarters in the amount of $3.0 million. On February 26, 2014, the Company drew an advance of $12.5 million on the Credit Facility, which was subsequently repaid in full on March 17, 2014. | |
On March 24, 2014, the Company entered into Amendment Number One to the Credit Facility in connection with, and effective upon, the closing of the Company's initial public offering of shares of its common stock, or IPO, which occurred on March 25, 2014. The amendment primarily modified the definition of "Change of Control" in the Credit Facility. On April 22, 2014, the Company paid $4.2 million on the Credit Facility. | |
On August 11, 2014, the Company entered into Amendment Number Two to the Credit Facility, which modified the Credit Facility to add the Accordion Feature and modified or eliminated certain of the Company's financial covenants and fees it owes under the Credit Facility. On September 5, 2014, the Company paid $2.0 million on the Credit Facility. | |
As of December 31, 2014, the Company had no borrowings and only a secured letter of credit of $3.0 million against the Credit Facility, leaving an available balance of approximately $22.0 million, and the interest rate applicable to the Credit Facility was 4.7%. The Credit Facility is collateralized by substantially all of the Company's assets and requires that the Company maintain certain financial covenants as provided in the Credit Facility. The Company was in compliance with all financial covenants as of December 31, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies | Commitments and Contingencies | ||||||||
Operating and Capital Lease Commitments | |||||||||
The Company leases office space for its corporate headquarters in Austin, Texas under a non-cancelable operating lease that expires in April 2021 and a regional sales office in Atlanta, Georgia under a non-cancelable operating lease that expires in January 2016. In addition, the Company leases office space for its previous corporate headquarters in Austin, Texas under a non-cancelable operating lease that expires in March 2015. All of the rentable space covered by this lease has been sublet to a tenant for substantially all of the remainder of the lease. Rent expense under operating leases was $1.0 million, $1.4 million, and $0.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. In 2013, the Company moved to its current headquarters. As a result, the Company vacated its former leased headquarters and recorded an estimated unoccupied lease charge of $0.2 million for the remaining contractual lease payments less estimated sublease income. | |||||||||
New Facilities Lease | |||||||||
On July 18, 2014, the Company entered into an office lease agreement, or the Lease, with CREF Aspen Lake Building II, LLC to lease approximately 70,000 rentable square feet, or the Premises, of an office building to be located immediately adjacent to the Company's current headquarters in order to expand the Company's headquarters. The Lease provides for phased commencement dates, with commencement of the first phase covering approximately 55,000 rentable square feet anticipated to occur on November 1, 2015, or the Initial Commencement Date, with the remaining space becoming available nine months thereafter. The actual commencement dates are subject to timely completion of the construction of the Premises. The term of the Lease commences on the Initial Commencement Date and runs 124 months, with a five year renewal option, and the rent obligations under the Lease begin with rents of $98 per month, which escalate over the course of the Lease to $160 per month in the final four months of the Lease's term. | |||||||||
The Company has entered into various capital lease arrangements to obtain property and equipment for its data center and corporate operations. These agreements expire over various terms from March 2015 through May 2025 and the leases are secured by the underlying leased property and equipment. | |||||||||
Future minimum payments required under capital and operating leases that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2014 were as follows: | |||||||||
Capital Leases | Operating Leases | ||||||||
Year Ended December 31, | |||||||||
2015 | $ | 418 | $ | 2,054 | |||||
2016 | 164 | 3,023 | |||||||
2017 | 4 | 3,289 | |||||||
2018 | — | 3,371 | |||||||
2019 | — | 3,453 | |||||||
Thereafter | — | 13,446 | |||||||
Total minimum lease payments | 586 | $ | 28,636 | ||||||
Less: imputed interest | (11 | ) | |||||||
Less: current portion | (408 | ) | |||||||
Capital lease obligations, net of current portion | $ | 167 | |||||||
Contractual Commitments | |||||||||
The Company has non-cancelable contractual commitments related to third-party products, co-location fees, other product costs and data center hardware and software purchases. The Company is party to several purchase commitments for third-party products that contain both a contractual minimum obligation and a variable obligation based upon usage or other factors which can change on a monthly basis. The estimated amounts for usage and other factors are not included within the table below. | |||||||||
Future minimum contractual commitments that have initial or remaining non-cancelable terms in excess of one year were as follows: | |||||||||
Contractual Commitments | |||||||||
Year Ended December 31, | |||||||||
2015 | $ | 10,465 | |||||||
2016 | 6,382 | ||||||||
2017 | 4,464 | ||||||||
2018 | 4,232 | ||||||||
2019 | 4,092 | ||||||||
Thereafter | 4,092 | ||||||||
Total commitments | $ | 33,727 | |||||||
Legal Proceedings | |||||||||
From time to time, the Company may become involved in legal proceedings arising in the ordinary course of its business. The Company is not presently a party to any legal proceedings that, if determined adversely to the Company, would have a material adverse effect on the Company. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Equity [Abstract] | |||||||
Stockholders' Equity | Stockholder's Equity | ||||||
Initial Public Offering | |||||||
On March 25, 2014, the Company completed its IPO of 7,761 shares of common stock at $13.00 per share. The total shares sold in the IPO included 1,511 shares sold by selling stockholders. After deducting the payment of underwriters' discounts and commissions and offering costs, the net proceeds to the Company from the sale of shares in the offering were approximately $72.6 million. | |||||||
Underwriter's Exercise Of Option to Purchase Additional Shares | |||||||
On April 2, 2014, pursuant to the terms of the Company's IPO, which occurred on March 25, 2014, the underwriters exercised their option to purchase an additional 1,164 shares to cover over-allotments. After deducting the payment of underwriters' discounts and commissions and offering costs, the Company received net proceeds from the sale of shares totaling approximately $13.7 million. | |||||||
Conversion of Redeemable Common and Preferred Stock | |||||||
Immediately prior to the closing of the IPO, which occurred on March 25, 2014, each share of the Company's outstanding preferred, junior preferred and redeemable common stock was converted into one share of undesignated common stock. The following table presents the conversion of all classes of stock on March 25, 2014: | |||||||
Prior to Conversion | Subsequent to Conversion | ||||||
Convertible preferred stock | |||||||
Series A | 7,908 | — | |||||
Series B | 1,818 | — | |||||
Series C | 2,605 | — | |||||
Redeemable common stock | 3,829 | — | |||||
Junior preferred stock | 1,251 | — | |||||
Undesignated common stock | — | 17,412 | |||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||||||||||||||
In March 2014, the Company's board of directors approved the 2014 Equity Incentive Plan, or 2014 Plan, under which stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and units and other cash-based or stock-based awards may be granted to employees, consultants and directors. Shares of common stock that are issued and available for issuance under the 2014 Plan consist of authorized, but unissued or reacquired shares of common stock or any combination thereof. | ||||||||||||||||||||
A total of 1,850 shares of the Company's common stock was initially authorized and reserved for issuance under the 2014 Plan. This reserve will automatically increase on January 1, 2015 and each subsequent anniversary through 2024, by an amount equal to the smaller of (a) 4.5% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by the Company's board of directors. This reserve is automatically increased to include any outstanding shares under the Company's 2007 Stock Plan, or 2007 Plan, at the time of its termination or issuable upon expiration or termination of options granted under the Company's 2007 Plan that expire or terminate without having been exercised in full. Pursuant to the terms of the 2014 Plan, 107 shares available for future issuance under the 2007 Plan were transferred to the 2014 Plan, providing a total of 1,957 shares of common stock allocated for issuance under the 2014 Plan. In addition, 49 shares have been returned to the 2014 Plan as a result of termination of options that expired or terminated without having been exercised under the previously terminated 2007 Plan, resulting in a total of 2,006 shares available for issuance under the 2014 Plan. As of December 31, 2014, options to purchase a total of 606 shares of common stock have been granted under the 2014 Plan, 7 shares have been returned to the 2014 Plan as a result of termination of options that expired or terminated without having been exercised, and 1,407 shares of common stock remain available for future issuance under the 2014 Plan. | ||||||||||||||||||||
In July 2007, the Company adopted the 2007 Plan under which options or stock purchase rights may be granted to employees, consultants and directors. In February 2014, the board of directors, under the authority granted to it by the 2007 Plan, increased the number of shares available to be granted under the plan by 1,400 shares, and as of December 31, 2014, a total of 9,172 shares of common stock were allocated for issuance under the plan. Upon the completion of the Company's IPO in March 2014, the board of directors terminated the 2007 Plan in connection with the IPO and pursuant to the terms of the 2014 Plan, 107 shares that were available for future issuance under the 2007 Plan at such time were transferred to the 2014 Plan. No shares remain available for future issuance of awards under the 2007 Plan. The 2007 Plan will continue to govern the terms and conditions of all outstanding equity awards granted under the 2007 Plan. Shares of common stock that are issued and were available for issuance under the 2007 Plan consist of authorized, but unissued or reacquired shares of common stock or any combination thereof. | ||||||||||||||||||||
Stock Options | ||||||||||||||||||||
The following summarizes the assumptions used for estimating the fair value of stock options granted during the periods indicated: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Risk-free interest rate | 1.2 - 1.8% | 0.7 - 2.2% | 0.7 - 1.1% | |||||||||||||||||
Expected life (in years) | 3.8 - 6.1 | 4.8 - 6.9 | 4.8 - 6.3 | |||||||||||||||||
Expected volatility | 45.1 - 46.8% | 46.4 - 49.4% | 52.0 - 52.5% | |||||||||||||||||
Dividend yield | — | — | — | |||||||||||||||||
Weighted-average grant date fair value per share | $5.63 | $3.15 | $2.65 | |||||||||||||||||
Stock option activity was as follows: | ||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||
Options | Average | |||||||||||||||||||
Exercise Price | ||||||||||||||||||||
Balance as of January 1, 2012 | 5,022 | $ | 1.12 | |||||||||||||||||
Granted | 1,064 | 5.73 | ||||||||||||||||||
Exercised | (42 | ) | 0.41 | |||||||||||||||||
Forfeited | (312 | ) | 1.84 | |||||||||||||||||
Balance as of December 31, 2012 | 5,732 | 1.94 | ||||||||||||||||||
Granted | 834 | 7.69 | ||||||||||||||||||
Exercised | (738 | ) | 0.59 | |||||||||||||||||
Forfeited | (406 | ) | 5.31 | |||||||||||||||||
Balance as of December 31, 2013 | 5,422 | 2.76 | ||||||||||||||||||
Granted | 2,331 | 10.1 | ||||||||||||||||||
Exercised | (1,583 | ) | 1.27 | |||||||||||||||||
Forfeited | (59 | ) | 7.56 | |||||||||||||||||
Balance as of December 31, 2014 | 6,111 | $ | 5.9 | |||||||||||||||||
The summary of stock options outstanding as of December 31, 2014 is as follows: | ||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Range of Exercise Prices | Number of | Weighted | Weighted | Number of | Weighted | Weighted | ||||||||||||||
Options | Average | Average | Options | Average | Average | |||||||||||||||
Exercise | Remaining | Exercise | Remaining | |||||||||||||||||
Price | Contractual Life | Price | Contractual Life | |||||||||||||||||
(in years) | (in years) | |||||||||||||||||||
$0.29 - $0.35 | 919 | $ | 0.33 | 3.2 | 919 | $ | 0.33 | 3.2 | ||||||||||||
$0.54 - $0.84 | 477 | 0.72 | 4.8 | 477 | 0.72 | 4.8 | ||||||||||||||
$1.74 - $3.10 | 1,094 | 2.8 | 6.3 | 866 | 2.73 | 6.2 | ||||||||||||||
$4.00 - $7.82 | 1,312 | 6.89 | 5.6 | 572 | 6.48 | 5.7 | ||||||||||||||
$8.35 | 1,737 | 8.35 | 6.1 | — | — | — | ||||||||||||||
$13.00 - $19.44 | 572 | 15.41 | 6.7 | 21 | 13 | 6.2 | ||||||||||||||
6,111 | $ | 5.9 | 5.5 | 2,855 | $ | 2.44 | 4.9 | |||||||||||||
Restricted Stock Units | ||||||||||||||||||||
The Company’s restricted stock units vest over a four-year period and upon vesting, the vested shares are issued to the recipient of the restricted stock units. | ||||||||||||||||||||
The summary of restricted stock unit activity is as follows: | ||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||
Shares | Average | |||||||||||||||||||
Grant Date Fair Value | ||||||||||||||||||||
Nonvested as of January 1, 2014 | — | $ | — | |||||||||||||||||
Granted | 28 | 19.44 | ||||||||||||||||||
Vested | — | — | ||||||||||||||||||
Forfeited | — | — | ||||||||||||||||||
Nonvested as of December 31, 2014 | 28 | $ | 19.44 | |||||||||||||||||
The aggregate intrinsic value of stock options exercised during each of the years ended December 31, 2014, 2013 and 2012 was $17.3 million, $4.8 million and $0.2 million, respectively. The total fair value of stock options vested during each of the years ended December 31, 2014, 2013 and 2012 was $2.2 million, $1.2 million, and $0.8 million, respectively. | ||||||||||||||||||||
As of December 31, 2014, total unrecognized stock-based compensation expense, adjusted for estimated forfeitures, related to stock options was $14.0 million, which the Company expects to recognize over the next 3 years, and total unrecognized stock-based compensation expense, adjusted for estimated forfeitures, related to restricted stock units was $0.5 million, which the Company expects to recognize over the next 3.9 years. |
Provision_for_Income_Taxes
Provision for Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Provision for Income Taxes | ||||||||||||
The components of the Company's provision for income taxes from continuing operations were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current taxes: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 67 | 52 | 162 | ||||||||||
Total current taxes | $ | 67 | $ | 52 | $ | 162 | |||||||
Deferred taxes: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 4 | 3 | 2 | ||||||||||
Total deferred taxes | 4 | 3 | 2 | ||||||||||
Provision for income taxes | $ | 71 | $ | 55 | $ | 164 | |||||||
As of December 31, 2014, the Company had federal net operating loss carryforwards of approximately $69.9 million, state tax credits of approximately $0.2 million and federal alternative minimum tax credits of $0.1 million. The net operating loss carryforwards will expire at various dates beginning in 2026 if not utilized. The state tax credits expire in 2027 if not utilized. The alternative minimum tax credits have an indefinite carryforward period. | |||||||||||||
Federal and state laws impose restrictions on the utilization of net operating loss carryforwards and research and development credit carryforwards in the event of a change in ownership of the Company, which constitutes an "ownership change" as defined by Internal Revenue Code Sections 382 and 383. Should there be an ownership change in the future, the Company's ability to utilize existing carryforwards could be substantially restricted. | |||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company has established a valuation allowance due to uncertainties regarding the realization of deferred tax assets based on the Company's lack of earnings history. During the year ended December 31, 2014, the valuation allowance increased by $6.4 million. | |||||||||||||
The Company's deferred tax assets and deferred tax liabilities were as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
NOL and credit carryforwards | $ | 21,328 | $ | 16,340 | |||||||||
Deferred revenue | 2,657 | 1,596 | |||||||||||
Accrued expenses and other | 3,386 | 3,295 | |||||||||||
Stock-based compensation | 1,107 | 209 | |||||||||||
Total deferred tax assets | 28,478 | 21,440 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred expenses | (5,128 | ) | (3,924 | ) | |||||||||
Depreciation and amortization | (2,972 | ) | (3,573 | ) | |||||||||
Total deferred tax liabilities | (8,100 | ) | (7,497 | ) | |||||||||
Deferred tax assets less tax liabilities | 20,378 | 13,943 | |||||||||||
Less: valuation allowance | (20,266 | ) | (13,828 | ) | |||||||||
Net deferred tax asset | $ | 112 | $ | 115 | |||||||||
The Company had $9.9 million of excess stock deductions which are not included in deferred tax assets. The tax benefit from these deductions will increase additional paid-in capital when they are deemed realized under the "with and without" method. | |||||||||||||
The Company's provision for income taxes from continuing operations differs from the amount computed by applying the statutory federal income tax rate of 34% primarily as a result of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax at U.S. statutory rate | 34 | % | 34 | % | 34 | % | |||||||
Effect of: | |||||||||||||
Increase in deferred tax valuation allowance | (32.9 | ) | (32.7 | ) | (31.5 | ) | |||||||
State taxes, net of federal benefit | 1.5 | 1.4 | (0.7 | ) | |||||||||
Other permanent items | (3.0 | ) | (3.0 | ) | (4.0 | ) | |||||||
Income tax provision effective rate | (0.4 | )% | (0.3 | )% | (2.2 | )% | |||||||
The Company files income tax returns in the U.S. federal jurisdiction and several state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years before 2011. Operating losses generated in years prior to 2011 remain open to adjustment until the statute of limitations closes for the tax year in which the net operating losses are utilized. The tax years 2011 through 2014 remain open to examination by all major taxing jurisdictions to which the Company is subject, though the Company is not currently under examination by any major taxing jurisdiction. | |||||||||||||
The Company had not recorded any tax reserves related to uncertain tax positions as of December 31, 2014, 2013 and 2012. The Company's policy is to accrue interest and penalties related to uncertain tax positions as a component of income tax expense. For the years ended December 31, 2014, 2013 and 2012, the Company did not incur any interest or penalties. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan |
In January 2009, the Company adopted a 401(k) profit-sharing plan, or 401(k) Plan, covering substantially all employees. Employees can contribute between 1% and 90% of their total earnings. The 401(k) Plan also provides for employer contributions to be made at the Company's discretion. As of December 31, 2014, the Company had not made any discretionary contributions. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations |
On March 1, 2013, the Company distributed all of the shares of a subsidiary to the Company's stockholders in a spin-off. However, since all shares of the subsidiary were distributed in 2013, the Company's consolidated statements of comprehensive loss and statements of cash flows have been presented to show the discontinued operations of the subsidiary separately from continuing operations for all periods presented. Since the transaction was between entities under common control, the distribution of the shares of the subsidiary did not result in a gain or loss on distribution as it was recorded at historical carrying values. |
Segments_and_Geographic_Inform
Segments and Geographic Information Segments and Geographic Information | 12 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
Segments and Geographic Information | Segments and Geographic Information |
All revenue-generating activities are directly related to the sale, implementation and support of the Company's solutions in a single operating segment. The Company's chief operating decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. All of the Company's principal operations, assets and decision-making functions are located in the United States. |
Related_Parties
Related Parties | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties |
For the years ended December 31, 2014, 2013 and 2012, the Company recorded revenues from a related-party customer of $0.4 million, $0.3 million and $0.3 million, respectively. | |
For the year ended December 31, 2012, the Company paid $0.1 million to related parties for professional services. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data | Selected Quarterly Financial Data (unaudited) | ||||||||||||||||||||||||||||||||
Selected summarized quarterly financial information for the years ended 2014 and 2013 is as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 31-Dec-13 | 31-Mar-14 | 30-Jun-14 | 30-Sep-14 | 31-Dec-14 | ||||||||||||||||||||||||||
Revenues | $ | 12,834 | $ | 14,044 | $ | 14,325 | $ | 15,669 | $ | 16,834 | $ | 19,158 | $ | 20,989 | $ | 22,148 | |||||||||||||||||
Cost of revenues | 7,807 | 8,408 | 9,167 | 10,879 | 10,212 | 10,830 | 12,143 | 12,869 | |||||||||||||||||||||||||
Gross profit | 5,027 | 5,636 | 5,158 | 4,790 | 6,622 | 8,328 | 8,846 | 9,279 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Sales and marketing | 3,060 | 4,138 | 4,599 | 4,929 | 5,509 | 6,032 | 5,642 | 5,886 | |||||||||||||||||||||||||
Research and development | 1,866 | 2,152 | 2,259 | 2,752 | 2,736 | 2,787 | 3,155 | 3,408 | |||||||||||||||||||||||||
General and administrative | 2,335 | 2,776 | 3,207 | 3,424 | 3,718 | 4,058 | 4,574 | 4,641 | |||||||||||||||||||||||||
Unoccupied lease charges | — | 148 | 88 | — | — | — | — | — | |||||||||||||||||||||||||
Total operating expenses | 7,261 | 9,214 | 10,153 | 11,105 | 11,963 | 12,877 | 13,371 | 13,935 | |||||||||||||||||||||||||
Loss from operations | (2,234 | ) | (3,578 | ) | (4,995 | ) | (6,315 | ) | (5,341 | ) | (4,549 | ) | (4,525 | ) | (4,656 | ) | |||||||||||||||||
Total other expense, net | (51 | ) | (116 | ) | (170 | ) | (162 | ) | (207 | ) | (119 | ) | (82 | ) | (84 | ) | |||||||||||||||||
Loss before income taxes | (2,285 | ) | (3,694 | ) | (5,165 | ) | (6,477 | ) | (5,548 | ) | (4,668 | ) | (4,607 | ) | (4,740 | ) | |||||||||||||||||
Provision for income taxes | (5 | ) | (14 | ) | (14 | ) | (22 | ) | (18 | ) | (15 | ) | (18 | ) | (20 | ) | |||||||||||||||||
Loss from continuing operations | (2,290 | ) | (3,708 | ) | (5,179 | ) | (6,499 | ) | (5,566 | ) | (4,683 | ) | (4,625 | ) | (4,760 | ) | |||||||||||||||||
Loss from discontinued operations, net of tax | (199 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net loss | $ | (2,489 | ) | $ | (3,708 | ) | $ | (5,179 | ) | $ | (6,499 | ) | $ | (5,566 | ) | $ | (4,683 | ) | $ | (4,625 | ) | $ | (4,760 | ) | |||||||||
Reconciliation of net loss to adjusted EBITDA: | |||||||||||||||||||||||||||||||||
Net Loss | $ | (2,489 | ) | $ | (3,708 | ) | $ | (5,179 | ) | $ | (6,499 | ) | $ | (5,566 | ) | $ | (4,683 | ) | $ | (4,625 | ) | $ | (4,760 | ) | |||||||||
Depreciation and amortization | 638 | 624 | 809 | 900 | 999 | 1,031 | 1,092 | 961 | |||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||||||
Cost of revenues | 61 | 61 | 70 | 72 | 126 | 147 | 159 | 191 | |||||||||||||||||||||||||
Sales and marketing | 39 | 60 | 81 | 94 | 167 | 187 | 189 | 231 | |||||||||||||||||||||||||
Research and development | 59 | 66 | 64 | 68 | 107 | 122 | 131 | 167 | |||||||||||||||||||||||||
General and administrative | 175 | 189 | 197 | 249 | 518 | 612 | 622 | 894 | |||||||||||||||||||||||||
Provision for income taxes | 5 | 14 | 14 | 22 | 18 | 15 | 18 | 20 | |||||||||||||||||||||||||
Other expense, net | 51 | 116 | 170 | 162 | 207 | 119 | 82 | 84 | |||||||||||||||||||||||||
Unoccupied lease charge | — | 148 | 88 | — | — | — | — | — | |||||||||||||||||||||||||
Loss from discontinued operations, net of tax | 199 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Adjusted EBITDA | $ | (1,262 | ) | $ | (2,430 | ) | $ | (3,686 | ) | $ | (4,932 | ) | $ | (3,424 | ) | $ | (2,450 | ) | $ | (2,332 | ) | $ | (2,212 | ) | |||||||||
Registered users (1) | 2,609 | 2,900 | 2,956 | 3,124 | 3,447 | 3,941 | 4,123 | 4,340 | |||||||||||||||||||||||||
(1)Represents registered users at the end of the period. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Basis of Presentation | Basis of Presentation and Principles of Consolidation | ||
As used in this report, the terms "the Company," "we," "us," or "our" refer to Q2 Holdings, Inc. and its wholly-owned subsidiary. These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, and Securities and Exchange Commission, or SEC, requirements. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |||
Principles of Consolidation | Basis of Presentation and Principles of Consolidation | ||
As used in this report, the terms "the Company," "we," "us," or "our" refer to Q2 Holdings, Inc. and its wholly-owned subsidiary. These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, and Securities and Exchange Commission, or SEC, requirements. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |||
Use of Estimates | Use of Estimates | ||
The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses. Significant items subject to such estimates include stock-based compensation, the useful lives of property and equipment and income taxes. In accordance with GAAP, management bases its estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from those estimates. | |||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||
The Company considers all highly liquid investments acquired with an original maturity of ninety days or less at the date of purchase to be cash equivalents. Cash equivalents are stated at cost or fair value based on the underlying security. | |||
Restricted Cash | Restricted Cash | ||
Restricted cash consists of deposits held in checking and money market accounts for leased office space. | |||
Investments | Investments | ||
Investments consist primarily of U.S. government agency bonds, corporate bonds, commercial paper, certificates of deposits and money market funds. All investments are considered available for sale and are carried at fair value. | |||
Concentration of Credit Risk | Concentration of Credit Risk | ||
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, restricted cash, investments and accounts receivable. The Company's cash and cash equivalents and restricted cash are placed with high credit quality financial institutions and issuers, and at times may exceed federally-insured limits. The Company has not experienced any loss relating to cash and cash equivalents or restricted cash in these accounts. The Company provides credit, in the normal course of business, to a number of its customers. The Company performs periodic credit evaluations of its customers' financial condition and generally does not require collateral. | |||
Accounts Receivable | Accounts Receivable | ||
Accounts receivable are stated at net realizable value, including both billed and unbilled receivables to customers. Unbilled receivable balances arise primarily when the Company provides services in advance of billing for these services and also when the Company earns revenues based on the number of registered users and the number of bill-pay and certain other transactions that registered users perform on the Company's virtual banking solutions in excess of the levels included in the Company's minimum subscription fee. Generally, billing for such revenues related to the number of registered users and the number of transactions processed by our registered users occurs one month in arrears. Included in the accounts receivable balances as of December 31, 2014 and 2013 were unbilled receivables of $2.3 million and $1.8 million, respectively. | |||
The Company assesses the collectability of outstanding accounts receivable on an ongoing basis and maintains an allowance for doubtful accounts for accounts receivable deemed uncollectable. This allowance is recorded as a reduction against accounts receivable. As of December 31, 2014 and 2013, the Company did not provide for an allowance for doubtful accounts, as all amounts outstanding were deemed collectable. Historically, the Company's collection experience has not varied significantly, and bad debt expenses have been insignificant. | |||
The Company maintains a reserve for estimated sales credits issued to customers for billing disputes or other service-related reasons. This allowance is recorded as a reduction against current period revenues and accounts receivable. In estimating this allowance, the Company analyzes prior periods to determine the amounts of sales credits issued to customers compared to the revenues in the period that related to the original customer invoice. This estimate is analyzed quarterly and adjusted as necessary. | |||
Deferred Implementation Costs and Deferred Solution and Other Costs | Deferred Implementation Costs | ||
The Company capitalizes certain personnel and other costs, such as employee salaries, benefits and the associated payroll taxes that are direct and incremental to the implementation of its solutions. The Company analyzes implementation costs that may be capitalized to assess their recoverability, and only capitalizes costs that it anticipates to be recoverable. The Company assesses the recoverability of its deferred implementation costs by comparing the greater of the amount of the non-cancellable portion of a customer's contract and the non-refundable customer prepayments received as it relates to the specific implementation costs incurred. The Company begins amortizing the deferred implementation costs for an implementation once the revenue recognition criteria have been met and the Company amortizes those deferred implementation costs ratably over the remaining term of the customer agreement. The portion of deferred implementation costs expected to be amortized during the succeeding twelve-month period is recorded in current assets as deferred implementation costs, current portion, and the remainder is recorded in long-term assets as deferred implementation costs, net of current portion. | |||
Deferred Solution and Other Costs | |||
The Company capitalizes sales commissions and other third-party costs, such as third party licenses and maintenance related to its customer agreements. The Company capitalizes sales commissions because the commission charges are so closely related to the revenues from the non-cancellable customer agreements that they should be recorded as an asset and charged to expense over the same period that the related revenue is recognized. The Company begins amortizing deferred solution and other costs for a particular customer agreement once the revenue recognition criteria are met and amortizes those deferred costs over the remaining term of the customer agreement. The Company analyzes solution and other costs that may be capitalized to assess their recoverability and only capitalizes costs that it anticipates to be recoverable. The portion of capitalized costs expected to be amortized during the succeeding twelve-month period is recorded in current assets as deferred solution and other costs, current portion, and the remainder is recorded in long-term assets as deferred solution and other costs, net of current portion. | |||
Property and Equipment | Property and Equipment | ||
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Maintenance and repairs that do not extend the life of or improve an asset are expensed in the period incurred. | |||
The estimated useful lives of property and equipment are as follows: | |||
Computer hardware and equipment | 3 - 5 years | ||
Purchased software and licenses | 3 - 5 years | ||
Furniture and fixtures | 7 years | ||
Leasehold improvements | Lesser of estimated useful life or lease term | ||
Deferred Revenues | Deferred Revenues | ||
Deferred revenues primarily consist of amounts that have been billed to or received from customers in advance of revenue recognition and prepayments received from customers in advance for implementation, maintenance and other services, as well as initial subscription fees. The Company recognizes deferred revenues as revenues when the services are performed and the corresponding revenue recognition criteria are met. Customer prepayments are generally applied against invoices issued to customers when services are performed and billed. Deferred revenues that are expected to be recognized as revenues during the succeeding twelve month period are recorded in current liabilities as deferred revenues, current portion and the remaining portion is recorded in long-term liabilities as deferred revenues, net of current portion. | |||
Revenues | Revenues | ||
All revenue-generating activities are directly related to the sale, implementation and support of the Company's solutions within a single operating segment. The Company derives the substantial majority of its revenues from subscription fees for the use of its solutions hosted in the Company's data centers as well as revenues for implementation and customer support services related to the Company's solutions. A small portion of the Company's customers host the Company's solutions in their own data centers under term license and maintenance agreements, and the Company recognizes the corresponding revenues ratably over the term of those customer agreements. | |||
Revenues are recognized net of sales credits and allowances. The Company begins to recognize revenues for a customer when all of the following criteria are satisfied: | |||
• | there is persuasive evidence of an arrangement; | ||
• | the service has been or is being provided to the customer; | ||
• | the collection of the fees is reasonably assured; and | ||
• | the amount of fees to be paid by the customer is fixed or determinable. | ||
Determining whether and when these criteria have been met can require significant judgment and estimates. In general, revenue recognition commences when the Company's solutions are implemented and made available to the customers. | |||
The Company's software solutions are available for use in hosted application arrangements under subscription fee agreements. Subscription fees from these applications, including related customer support, are recognized ratably over the customer agreement term beginning on the date the solution is made available to the customer. Amounts that have been invoiced are recorded in accounts receivable and deferred revenues or revenues, depending on whether the Company's revenue recognition criteria have been met. | |||
The Company considers subscription fees to be fixed or determinable unless the fees are subject to refund or adjustment or are not payable within the Company's standard payment terms. In determining whether collection of subscription fees is reasonably assured, the Company considers financial and other information about customers, such as a customer's current credit-worthiness and payment history over time. Historically bad debt expenses have not been significant. | |||
The Company enters into arrangements with multiple-deliverables that generally include multiple subscriptions and implementation services. Additional agreements with existing customers that are not in close proximity to the original arrangements are treated as separate contracts for accounting purposes. | |||
For multiple-deliverable arrangements, arrangement consideration is allocated to deliverables based on their relative selling price. In order to treat deliverables in a multiple-deliverable arrangement as separate units of accounting, the deliverables must have standalone value upon delivery. If the deliverables have standalone value upon delivery, each deliverable must be accounted for separately. The Company's subscription services have standalone value as such services are often sold separately. In determining whether implementation services have standalone value apart from the subscription services, the Company considers various factors including the availability of the services from other vendors. To date, the Company has concluded that the implementation services included in multiple-deliverable arrangements do not have standalone value. As a result, when implementation services are sold in a multiple-deliverable arrangement, the Company defers any arrangement fees for implementation services and recognizes such amounts ratably over the period of performance for the initial agreement term. | |||
When multiple-deliverables included in an arrangement are separated into different units of accounting, the arrangement consideration is allocated to the identified separate units based on a relative selling price hierarchy. The selling price for a deliverable is based on its vendor-specific objective evidence of selling price, or VSOE, if available, third-party evidence of selling price, or TPE, if VSOE is not available or best estimate of selling price, or BESP, if neither VSOE nor TPE is available. The Company has not established VSOE for its subscription services due to lack of pricing consistency, the introduction of new services and other factors. The Company has determined that TPE is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party pricing information. Accordingly, the Company uses BESP to determine the relative selling price. The amount of revenue allocated to delivered items is limited by contingent revenues. | |||
The Company determined BESP by considering its overall pricing objectives and market conditions. Significant pricing practices taken into consideration include the Company's discounting practices, the size and volume of its transactions, customer characteristics, price lists, go-to-market strategy, historical standalone sales and agreement prices. As the Company's go-to-market strategies evolve, it may modify its pricing practices in the future, which could result in changes in relative selling prices, and include both VSOE and BESP. | |||
Subscription Fee Revenues | |||
The Company's solutions are available as hosted solutions under subscription fee agreements without licensing perpetual rights to the software. Subscription fees from a hosted solution are recognized monthly over the customer agreement term beginning on the date the Company's solution is made available to the customer. Additional fees for monthly usage above the levels included in the standard subscription fee, which include fees for transactions processed during the period, are recognized as revenue in the month when the usage amounts are determined and reported. Any revenues related to upfront implementation services are recognized ratably over the same customer agreement term. Amounts that have been invoiced are recorded in accounts receivable and deferred revenues or revenues, depending on whether the revenue recognition criteria have been met. | |||
Professional Services Revenues | |||
When professional services are not combined with subscription services or term licenses as a single unit of accounting, these professional services revenues are recognized as the services are performed. | |||
Certain out-of-pocket expenses billed to customers are recorded as revenues rather than an offset to the related expense. Revenues recorded from out-of-pocket expense reimbursements totaled approximately $0.8 million, $0.5 million and $0.4 million during the years ended December 31, 2014, 2013 and 2012, respectively. The out-of-pocket expenses are reported in cost of revenues. | |||
Term Licenses and Maintenance Revenues | |||
A small portion of the Company's customers host and manage the Company's solutions on-premises or in third-party data centers under term license and maintenance agreements. Term licenses sold with maintenance, which entitles the customer to technical support and upgrades and updates to the software made available on a when-and-if-available basis, are accounted for under Accounting Standards Codification 985-605, "Software Revenue Recognition." The Company does not have VSOE of fair value for the maintenance and professional services so the entire arrangement consideration is recognized monthly over the term of the software license when all of the other revenue recognition criteria have been met. | |||
Cost of Revenues | Cost of Revenues | ||
Cost of revenues is comprised primarily of salaries and other personnel-related costs, including employee benefits, bonuses and stock-based compensation, for employees providing services to the Company's customers. Costs associated with these services include the costs of the Company's implementation, customer support, data center and customer training personnel as well as reclassification of certain research and development expenses related to research and development personnel who perform services related to implementation and customer support. Cost of revenues also includes the direct costs of bill-pay and other third-party intellectual property included in the Company's solutions, the amortization of deferred solution and services costs, co-location facility costs and depreciation of the Company's data center assets, an allocation of general overhead costs and referral fees. Direct costs of third-party intellectual property include amounts paid for third-party licenses and related maintenance that are incorporated into the Company's software, with the costs amortized to cost of revenues over the useful lives of the purchased assets. | |||
The amount of research and development expenses allocated to cost of revenues was $1.4 million, $1.6 million and $1.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||
The Company capitalizes certain personnel costs directly related to the implementation of its solutions to the extent those costs are considered to be recoverable from future revenues. The Company amortizes the costs for a particular implementation once revenue recognition commences, and the Company amortizes those implementation costs over the remaining term of the customer agreement. Other costs not directly recoverable from future revenues are expensed in the period incurred. | |||
Software Development Costs | Software Development Costs | ||
Software development costs include salaries and other personnel-related costs, including employee benefits, bonuses and stock-based compensation, attributed to programmers, software engineers and quality control teams working on the Company's solutions. Costs related to software development incurred between reaching technological feasibility and the point at which the software solution is ready for general release have been insignificant through December 31, 2014, and accordingly all of the Company's software development costs have been expensed as incurred as research and development. | |||
Research and Development Costs | Research and Development Costs | ||
Research and development costs include salaries and other personnel-related costs, including employee benefits, bonuses and stock-based compensation, third-party contractor expenses, software development tools, an allocation of facilities and depreciation expenses and other related expenses incurred in developing new solutions and upgrading and enhancing existing solutions. Research and development costs are expensed as incurred. | |||
Advertising | Advertising | ||
All advertising costs of the Company are expensed the first time the advertising takes place. | |||
Sales Tax | Sales Tax | ||
The Company presents sales taxes and other taxes collected from customers and remitted to governmental authorities on a net basis and, as such, excludes them from revenues. | |||
Comprehensive Loss | Comprehensive Loss | ||
Comprehensive loss includes net loss as well as other changes in stockholders' equity that result from transactions and economic events other than those with stockholders. Other comprehensive loss consists of net loss and unrealized gains and losses on investments. | |||
Stock-Based Compensation | Stock-Based Compensation | ||
Stock options and restricted stock units awarded to employees, directors and consultants are measured at fair value at each grant date. The Company recognizes compensation expense ratably over the requisite service period of the option or restricted stock unit award. Generally, options vest 25% on the one-year anniversary of the grant date with the balance vesting monthly over the following 36 months, and restricted stock unit awards vest in four annual installments of 25% beginning on the one-year anniversary of the grant date. | |||
The Company values stock options using the Black-Scholes option-pricing model, which requires the input of subjective assumptions, including the risk-free interest rate, expected life, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for constant maturity U.S. Treasury securities consistent with the expected term of the Company's employee stock options. The expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method. Under the simplified method, the expected life of an option is presumed to be the mid-point between the vesting date and end of the contractual term. The Company used the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options. Expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the stock options. The Company assumed no dividend yield because it does not expect to pay dividends in the near future, which is consistent with the Company's history of not paying dividends. | |||
Income Taxes | Income Taxes | ||
Deferred income taxes are provided for the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and operating loss carryforwards and credits using enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. The Company assesses the likelihood that deferred tax assets will be realized and recognizes a valuation allowance if it is more likely than not that some portion of the deferred tax assets will not be realized. This assessment requires judgment as to the likelihood and amounts of future taxable income by tax jurisdiction. To date, the Company has provided a full valuation allowance against its deferred tax assets as it believes the objective and verifiable evidence of its historical pretax net losses outweighs any positive evidence of its forecasted future results. Although the Company believes that its tax estimates are reasonable, the ultimate tax determination involves significant judgment that is subject to audit by tax authorities in the ordinary course of business. The Company will continue to monitor the positive and negative evidence, and it will adjust the valuation allowance as sufficient objective positive evidence becomes available. | |||
The Company evaluates its uncertain tax positions based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized. Potential interest and penalties associated with any uncertain tax positions are recorded as a component of income tax expense. Through December 31, 2014, the Company has not identified any material uncertain tax positions for which liabilities would be required to be recorded. | |||
Basic and Diluted Net Loss per Common Share | Basic and Diluted Net Loss per Common Share | ||
The Company uses the two-class method to compute net loss per common share because the Company has issued securities, other than common stock, that contractually entitle the holders to participate in dividends and earnings of the Company. The two-class method requires earnings for the period to be allocated between common stock and participating securities based upon their respective rights to receive distributed and undistributed earnings. Holders of the Company's Series A, B and C preferred stock are entitled, on a pari passu basis, to receive dividends when, as and if declared by the board of directors, prior and in preference to any declaration or payment of any dividend on the common stock or junior convertible preferred stock until such time as the total dividends paid on each share of Series A, B and C preferred stock is equal to the original issue price of the shares. Holders of junior convertible preferred stock are entitled to receive a pro rata share of any dividend declared, based on the number of shares of common and preferred stock outstanding. As a result, all series of the Company's preferred stock are considered participating securities. | |||
Under the two-class method, for periods with net income, basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Net income attributable to common stockholders is computed by subtracting from net income the portion of current year earnings that the participating securities would have been entitled to receive pursuant to their dividend rights had all of the year's earnings been distributed. No such adjustment to earnings is made during periods with a net loss, as the holders of the participating securities have no obligation to fund losses. Diluted net income per common share is computed under the two-class method by using the weighted-average number of shares of common stock outstanding plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options and warrants. In addition, the Company analyzes the potential dilutive effect of the outstanding participating securities under the if-converted method when calculating diluted earnings per share, in which it is assumed that the outstanding participating securities convert into common stock at the beginning of the period. The Company reports the more dilutive of the approaches as its diluted net income per share during the period. | |||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), or ASU 2014-09, which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled to when products are transferred to customers. ASU 2014-09 will be effective for the Company beginning in its first quarter of 2017. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of Useful Lives of Property and Equipment | The estimated useful lives of property and equipment are as follows: | ||||||||||||
Computer hardware and equipment | 3 - 5 years | ||||||||||||
Purchased software and licenses | 3 - 5 years | ||||||||||||
Furniture and fixtures | 7 years | ||||||||||||
Leasehold improvements | Lesser of estimated useful life or lease term | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computations of net loss per share for the periods listed: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerators: | |||||||||||||
Loss from continuing operations attributable to common stockholders | $ | (19,634 | ) | $ | (17,676 | ) | $ | (7,520 | ) | ||||
Loss from discontinued operations attributable to common stockholders | — | (199 | ) | (1,259 | ) | ||||||||
Net loss attributable to common stockholders | $ | (19,634 | ) | $ | (17,875 | ) | $ | (8,779 | ) | ||||
Denominator: | |||||||||||||
Weighted-average common shares outstanding, basic and diluted | 29,257 | 11,866 | 11,345 | ||||||||||
Loss from continuing operations per share, basic and diluted | $ | (0.67 | ) | $ | (1.49 | ) | $ | (0.66 | ) | ||||
Loss from discontinued operations per share, basic and diluted | $ | — | $ | (0.02 | ) | $ | (0.11 | ) | |||||
Net loss per common share, basic and diluted | $ | (0.67 | ) | $ | (1.51 | ) | $ | (0.77 | ) | ||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table sets forth the anti-dilutive common share equivalents for the periods listed: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Redeemable convertible preferred stock: | |||||||||||||
Series A preferred stock | — | 7,908 | 7,908 | ||||||||||
Series B preferred stock | — | 1,818 | 1,818 | ||||||||||
Series C preferred stock | — | 2,184 | — | ||||||||||
Junior preferred stock | — | 1,251 | 1,251 | ||||||||||
Stock options and restricted stock units | 6,139 | 5,422 | 4,765 | ||||||||||
Total anti-dilutive common share equivalents | 6,139 | 18,583 | 15,742 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table details the fair value hierarchy of the Company's financial assets measured at fair value on a recurring basis as of December 31, 2014: | ||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||
Cash Equivalents: | Fair Value | Quoted Prices | Significant Other | Significant | |||||||||||||
in Active | Observable Inputs | Unobservable | |||||||||||||||
Markets for | (Level 2) | Inputs | |||||||||||||||
Identical Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Money market funds | $ | 17,865 | $ | 17,865 | $ | — | $ | — | |||||||||
Certificates of deposit | 1,456 | — | 1,456 | — | |||||||||||||
$ | 19,321 | $ | 17,865 | $ | 1,456 | $ | — | ||||||||||
Investments: | Fair Value | Quoted Prices | Significant Other | Significant | |||||||||||||
in Active | Observable Inputs | Unobservable | |||||||||||||||
Markets for | (Level 2) | Inputs | |||||||||||||||
Identical Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
U.S. government agency bonds | $ | 7,502 | $ | — | $ | 7,502 | $ | — | |||||||||
Corporate bonds and commercial paper | 6,192 | — | 6,192 | — | |||||||||||||
Certificates of deposit | 7,262 | — | 7,262 | — | |||||||||||||
$ | 20,956 | $ | — | $ | 20,956 | $ | — | ||||||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents and Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||
Summary of Cash, Cash Equivalents and Investments | A summary of the cash equivalents and investments as of December 31, 2014 is as follows: | ||||||||||||||||
Cash Equivalents: | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
Money market funds | $ | 17,865 | $ | — | $ | — | $ | 17,865 | |||||||||
Certificates of deposit | 1,456 | — | — | 1,456 | |||||||||||||
$ | 19,321 | $ | — | $ | — | $ | 19,321 | ||||||||||
Investments: | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
U.S. government agency bonds | $ | 7,508 | $ | — | $ | (6 | ) | $ | 7,502 | ||||||||
Corporate bonds and commercial paper | 6,200 | — | (8 | ) | 6,192 | ||||||||||||
Certificates of deposit | 7,262 | — | — | 7,262 | |||||||||||||
$ | 20,970 | $ | — | $ | (14 | ) | $ | 20,956 | |||||||||
Investments Classified by Contractual Maturity Date | The following table summarizes the estimated fair value of the Company's investments, designated as available-for-sale and classified by the contractual maturity date of the investments as of the dates shown: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Due within one year or less | $ | 9,095 | $ | — | |||||||||||||
Due after one year through five years | 11,861 | — | |||||||||||||||
Total | $ | 20,956 | $ | — | |||||||||||||
Schedule of Fair Values and Gross Unrealized Losses for Available-for-sale Securities | The following table shows the fair values and the gross unrealized losses of these available-for-sale investments aggregated by investment category as of as of December 31, 2014: | ||||||||||||||||
Fair Value | Gross Unrealized Loss | ||||||||||||||||
U.S. government agency bonds | $ | 7,508 | $ | (6 | ) | ||||||||||||
Corporate bonds and commercial paper | 6,200 | (8 | ) | ||||||||||||||
Total | $ | 13,708 | $ | (14 | ) | ||||||||||||
Deferred_Solution_and_Other_Co1
Deferred Solution and Other Costs (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Schedule of Deferred Solution and Other Costs | Deferred solution and other costs, current portion and net of current portion, consisted of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Deferred solution costs | $ | 3,585 | $ | 2,174 | |||||
Deferred commissions | 1,475 | 950 | |||||||
Deferred solution and other costs, current portion | $ | 5,060 | $ | 3,124 | |||||
Deferred solution costs | $ | 1,684 | $ | 1,721 | |||||
Deferred commissions | 5,475 | 3,637 | |||||||
Deferred solution and other costs, net of current portion | $ | 7,159 | $ | 5,358 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of Property and Equipment | Property and equipment consisted of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Computer hardware and equipment | $ | 13,370 | $ | 8,917 | |||||
Purchased software and licenses | 5,759 | 3,501 | |||||||
Furniture and fixtures | 3,116 | 3,014 | |||||||
Leasehold improvements | 4,064 | 4,020 | |||||||
26,309 | 19,452 | ||||||||
Accumulated depreciation | (7,788 | ) | (4,621 | ) | |||||
Property and equipment | $ | 18,521 | $ | 14,831 | |||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Accrued data center equipment purchases | $ | 3,228 | $ | 512 | |||||
Accrued data center software purchases | 1,483 | 467 | |||||||
Accrued transaction processing fees | 1,537 | 3,761 | |||||||
Accrued professional services | 730 | 721 | |||||||
Other | 2,290 | 1,827 | |||||||
Total accrued liabilities | $ | 9,268 | $ | 7,288 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum payments required under capital and operating leases that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2014 were as follows: | ||||||||
Capital Leases | Operating Leases | ||||||||
Year Ended December 31, | |||||||||
2015 | $ | 418 | $ | 2,054 | |||||
2016 | 164 | 3,023 | |||||||
2017 | 4 | 3,289 | |||||||
2018 | — | 3,371 | |||||||
2019 | — | 3,453 | |||||||
Thereafter | — | 13,446 | |||||||
Total minimum lease payments | 586 | $ | 28,636 | ||||||
Less: imputed interest | (11 | ) | |||||||
Less: current portion | (408 | ) | |||||||
Capital lease obligations, net of current portion | $ | 167 | |||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum payments required under capital and operating leases that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2014 were as follows: | ||||||||
Capital Leases | Operating Leases | ||||||||
Year Ended December 31, | |||||||||
2015 | $ | 418 | $ | 2,054 | |||||
2016 | 164 | 3,023 | |||||||
2017 | 4 | 3,289 | |||||||
2018 | — | 3,371 | |||||||
2019 | — | 3,453 | |||||||
Thereafter | — | 13,446 | |||||||
Total minimum lease payments | 586 | $ | 28,636 | ||||||
Less: imputed interest | (11 | ) | |||||||
Less: current portion | (408 | ) | |||||||
Capital lease obligations, net of current portion | $ | 167 | |||||||
Schedule of Future Minimum Contractual Commitments | Future minimum contractual commitments that have initial or remaining non-cancelable terms in excess of one year were as follows: | ||||||||
Contractual Commitments | |||||||||
Year Ended December 31, | |||||||||
2015 | $ | 10,465 | |||||||
2016 | 6,382 | ||||||||
2017 | 4,464 | ||||||||
2018 | 4,232 | ||||||||
2019 | 4,092 | ||||||||
Thereafter | 4,092 | ||||||||
Total commitments | $ | 33,727 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Equity [Abstract] | |||||||
Schedule of Conversions of Stock | The following table presents the conversion of all classes of stock on March 25, 2014: | ||||||
Prior to Conversion | Subsequent to Conversion | ||||||
Convertible preferred stock | |||||||
Series A | 7,908 | — | |||||
Series B | 1,818 | — | |||||
Series C | 2,605 | — | |||||
Redeemable common stock | 3,829 | — | |||||
Junior preferred stock | 1,251 | — | |||||
Undesignated common stock | — | 17,412 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||
Schedule of Share-based Payment Award Assumptions for Estimating Fair Value of Stock Option Grants | The following summarizes the assumptions used for estimating the fair value of stock options granted during the periods indicated: | |||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Risk-free interest rate | 1.2 - 1.8% | 0.7 - 2.2% | 0.7 - 1.1% | |||||||||||||||||
Expected life (in years) | 3.8 - 6.1 | 4.8 - 6.9 | 4.8 - 6.3 | |||||||||||||||||
Expected volatility | 45.1 - 46.8% | 46.4 - 49.4% | 52.0 - 52.5% | |||||||||||||||||
Dividend yield | — | — | — | |||||||||||||||||
Weighted-average grant date fair value per share | $5.63 | $3.15 | $2.65 | |||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity was as follows: | |||||||||||||||||||
Number of | Weighted | |||||||||||||||||||
Options | Average | |||||||||||||||||||
Exercise Price | ||||||||||||||||||||
Balance as of January 1, 2012 | 5,022 | $ | 1.12 | |||||||||||||||||
Granted | 1,064 | 5.73 | ||||||||||||||||||
Exercised | (42 | ) | 0.41 | |||||||||||||||||
Forfeited | (312 | ) | 1.84 | |||||||||||||||||
Balance as of December 31, 2012 | 5,732 | 1.94 | ||||||||||||||||||
Granted | 834 | 7.69 | ||||||||||||||||||
Exercised | (738 | ) | 0.59 | |||||||||||||||||
Forfeited | (406 | ) | 5.31 | |||||||||||||||||
Balance as of December 31, 2013 | 5,422 | 2.76 | ||||||||||||||||||
Granted | 2,331 | 10.1 | ||||||||||||||||||
Exercised | (1,583 | ) | 1.27 | |||||||||||||||||
Forfeited | (59 | ) | 7.56 | |||||||||||||||||
Balance as of December 31, 2014 | 6,111 | $ | 5.9 | |||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The summary of stock options outstanding as of December 31, 2014 is as follows: | |||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Range of Exercise Prices | Number of | Weighted | Weighted | Number of | Weighted | Weighted | ||||||||||||||
Options | Average | Average | Options | Average | Average | |||||||||||||||
Exercise | Remaining | Exercise | Remaining | |||||||||||||||||
Price | Contractual Life | Price | Contractual Life | |||||||||||||||||
(in years) | (in years) | |||||||||||||||||||
$0.29 - $0.35 | 919 | $ | 0.33 | 3.2 | 919 | $ | 0.33 | 3.2 | ||||||||||||
$0.54 - $0.84 | 477 | 0.72 | 4.8 | 477 | 0.72 | 4.8 | ||||||||||||||
$1.74 - $3.10 | 1,094 | 2.8 | 6.3 | 866 | 2.73 | 6.2 | ||||||||||||||
$4.00 - $7.82 | 1,312 | 6.89 | 5.6 | 572 | 6.48 | 5.7 | ||||||||||||||
$8.35 | 1,737 | 8.35 | 6.1 | — | — | — | ||||||||||||||
$13.00 - $19.44 | 572 | 15.41 | 6.7 | 21 | 13 | 6.2 | ||||||||||||||
6,111 | $ | 5.9 | 5.5 | 2,855 | $ | 2.44 | 4.9 | |||||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The summary of restricted stock unit activity is as follows: | |||||||||||||||||||
Number of | Weighted | |||||||||||||||||||
Shares | Average | |||||||||||||||||||
Grant Date Fair Value | ||||||||||||||||||||
Nonvested as of January 1, 2014 | — | $ | — | |||||||||||||||||
Granted | 28 | 19.44 | ||||||||||||||||||
Vested | — | — | ||||||||||||||||||
Forfeited | — | — | ||||||||||||||||||
Nonvested as of December 31, 2014 | 28 | $ | 19.44 | |||||||||||||||||
Provision_for_Income_Taxes_Tab
Provision for Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Components of Provision for Income Taxes | The components of the Company's provision for income taxes from continuing operations were as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current taxes: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 67 | 52 | 162 | ||||||||||
Total current taxes | $ | 67 | $ | 52 | $ | 162 | |||||||
Deferred taxes: | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 4 | 3 | 2 | ||||||||||
Total deferred taxes | 4 | 3 | 2 | ||||||||||
Provision for income taxes | $ | 71 | $ | 55 | $ | 164 | |||||||
Schedule of Deferred Tax Assets and Liabilities | The Company's deferred tax assets and deferred tax liabilities were as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
NOL and credit carryforwards | $ | 21,328 | $ | 16,340 | |||||||||
Deferred revenue | 2,657 | 1,596 | |||||||||||
Accrued expenses and other | 3,386 | 3,295 | |||||||||||
Stock-based compensation | 1,107 | 209 | |||||||||||
Total deferred tax assets | 28,478 | 21,440 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred expenses | (5,128 | ) | (3,924 | ) | |||||||||
Depreciation and amortization | (2,972 | ) | (3,573 | ) | |||||||||
Total deferred tax liabilities | (8,100 | ) | (7,497 | ) | |||||||||
Deferred tax assets less tax liabilities | 20,378 | 13,943 | |||||||||||
Less: valuation allowance | (20,266 | ) | (13,828 | ) | |||||||||
Net deferred tax asset | $ | 112 | $ | 115 | |||||||||
Schedule of Effective Income Tax Rate Reconciliation | The Company's provision for income taxes from continuing operations differs from the amount computed by applying the statutory federal income tax rate of 34% primarily as a result of the following: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax at U.S. statutory rate | 34 | % | 34 | % | 34 | % | |||||||
Effect of: | |||||||||||||
Increase in deferred tax valuation allowance | (32.9 | ) | (32.7 | ) | (31.5 | ) | |||||||
State taxes, net of federal benefit | 1.5 | 1.4 | (0.7 | ) | |||||||||
Other permanent items | (3.0 | ) | (3.0 | ) | (4.0 | ) | |||||||
Income tax provision effective rate | (0.4 | )% | (0.3 | )% | (2.2 | )% |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Data | Selected summarized quarterly financial information for the years ended 2014 and 2013 is as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 31-Dec-13 | 31-Mar-14 | 30-Jun-14 | 30-Sep-14 | 31-Dec-14 | ||||||||||||||||||||||||||
Revenues | $ | 12,834 | $ | 14,044 | $ | 14,325 | $ | 15,669 | $ | 16,834 | $ | 19,158 | $ | 20,989 | $ | 22,148 | |||||||||||||||||
Cost of revenues | 7,807 | 8,408 | 9,167 | 10,879 | 10,212 | 10,830 | 12,143 | 12,869 | |||||||||||||||||||||||||
Gross profit | 5,027 | 5,636 | 5,158 | 4,790 | 6,622 | 8,328 | 8,846 | 9,279 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Sales and marketing | 3,060 | 4,138 | 4,599 | 4,929 | 5,509 | 6,032 | 5,642 | 5,886 | |||||||||||||||||||||||||
Research and development | 1,866 | 2,152 | 2,259 | 2,752 | 2,736 | 2,787 | 3,155 | 3,408 | |||||||||||||||||||||||||
General and administrative | 2,335 | 2,776 | 3,207 | 3,424 | 3,718 | 4,058 | 4,574 | 4,641 | |||||||||||||||||||||||||
Unoccupied lease charges | — | 148 | 88 | — | — | — | — | — | |||||||||||||||||||||||||
Total operating expenses | 7,261 | 9,214 | 10,153 | 11,105 | 11,963 | 12,877 | 13,371 | 13,935 | |||||||||||||||||||||||||
Loss from operations | (2,234 | ) | (3,578 | ) | (4,995 | ) | (6,315 | ) | (5,341 | ) | (4,549 | ) | (4,525 | ) | (4,656 | ) | |||||||||||||||||
Total other expense, net | (51 | ) | (116 | ) | (170 | ) | (162 | ) | (207 | ) | (119 | ) | (82 | ) | (84 | ) | |||||||||||||||||
Loss before income taxes | (2,285 | ) | (3,694 | ) | (5,165 | ) | (6,477 | ) | (5,548 | ) | (4,668 | ) | (4,607 | ) | (4,740 | ) | |||||||||||||||||
Provision for income taxes | (5 | ) | (14 | ) | (14 | ) | (22 | ) | (18 | ) | (15 | ) | (18 | ) | (20 | ) | |||||||||||||||||
Loss from continuing operations | (2,290 | ) | (3,708 | ) | (5,179 | ) | (6,499 | ) | (5,566 | ) | (4,683 | ) | (4,625 | ) | (4,760 | ) | |||||||||||||||||
Loss from discontinued operations, net of tax | (199 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net loss | $ | (2,489 | ) | $ | (3,708 | ) | $ | (5,179 | ) | $ | (6,499 | ) | $ | (5,566 | ) | $ | (4,683 | ) | $ | (4,625 | ) | $ | (4,760 | ) | |||||||||
Reconciliation of net loss to adjusted EBITDA: | |||||||||||||||||||||||||||||||||
Net Loss | $ | (2,489 | ) | $ | (3,708 | ) | $ | (5,179 | ) | $ | (6,499 | ) | $ | (5,566 | ) | $ | (4,683 | ) | $ | (4,625 | ) | $ | (4,760 | ) | |||||||||
Depreciation and amortization | 638 | 624 | 809 | 900 | 999 | 1,031 | 1,092 | 961 | |||||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||||||||||||
Cost of revenues | 61 | 61 | 70 | 72 | 126 | 147 | 159 | 191 | |||||||||||||||||||||||||
Sales and marketing | 39 | 60 | 81 | 94 | 167 | 187 | 189 | 231 | |||||||||||||||||||||||||
Research and development | 59 | 66 | 64 | 68 | 107 | 122 | 131 | 167 | |||||||||||||||||||||||||
General and administrative | 175 | 189 | 197 | 249 | 518 | 612 | 622 | 894 | |||||||||||||||||||||||||
Provision for income taxes | 5 | 14 | 14 | 22 | 18 | 15 | 18 | 20 | |||||||||||||||||||||||||
Other expense, net | 51 | 116 | 170 | 162 | 207 | 119 | 82 | 84 | |||||||||||||||||||||||||
Unoccupied lease charge | — | 148 | 88 | — | — | — | — | — | |||||||||||||||||||||||||
Loss from discontinued operations, net of tax | 199 | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Adjusted EBITDA | $ | (1,262 | ) | $ | (2,430 | ) | $ | (3,686 | ) | $ | (4,932 | ) | $ | (3,424 | ) | $ | (2,450 | ) | $ | (2,332 | ) | $ | (2,212 | ) | |||||||||
Registered users (1) | 2,609 | 2,900 | 2,956 | 3,124 | 3,447 | 3,941 | 4,123 | 4,340 | |||||||||||||||||||||||||
(1)Represents registered users at the end of the period. |
Organization_and_Description_o1
Organization and Description of Business (Details) | Dec. 31, 2014 | Feb. 28, 2013 |
Q2 Software, Inc. [Member] | ||
Organization [Line Items] | ||
Wholly owned subsidiary, ownership percentage | 100.00% | |
cbanc Network, Inc. [Member] | ||
Organization [Line Items] | ||
Wholly owned subsidiary, ownership percentage, prior to reorganization | 100.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Property, Plant and Equipment [Line Items] | |||||||||||||
Unbilled receivables | $2,300,000 | $1,800,000 | $2,300,000 | $1,800,000 | |||||||||
Allowance for sales credits | 200,000 | 100,000 | 200,000 | 100,000 | |||||||||
Deferred commissions | 7,000,000 | 4,600,000 | 7,000,000 | 4,600,000 | |||||||||
Property and Equipment [Abstract] | |||||||||||||
Revenues recorded from out-of-pocket expense reimbursements | 800,000 | 500,000 | 400,000 | ||||||||||
Research and development | 3,408,000 | 3,155,000 | 2,787,000 | 2,736,000 | 2,752,000 | 2,259,000 | 2,152,000 | 1,866,000 | 12,086,000 | [1] | 9,029,000 | [1] | 5,317,000 |
Capitalized implementation costs | 3,800,000 | 3,200,000 | 2,600,000 | ||||||||||
Advertising costs | 500,000 | 300,000 | |||||||||||
Numerator: [Abstract] | |||||||||||||
Loss from continuing operations attributable to common stockholders | -4,760,000 | -4,625,000 | -4,683,000 | -5,566,000 | -6,499,000 | -5,179,000 | -3,708,000 | -2,290,000 | -19,634,000 | -17,676,000 | -7,520,000 | ||
Loss from discontinued operations attributable to common stockholders | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -199,000 | 0 | -199,000 | -1,259,000 | ||
Net loss | -4,760,000 | -4,625,000 | -4,683,000 | -5,566,000 | -6,499,000 | -5,179,000 | -3,708,000 | -2,489,000 | -19,634,000 | -17,875,000 | -8,779,000 | ||
Denominator: [Abstract] | |||||||||||||
Weighted-average common shares outstanding, basic and diluted (shares) | 29,257 | 11,866 | 11,345 | ||||||||||
Loss from continuing operations per share, basic and diluted (dollars per share) | ($0.67) | ($1.49) | ($0.66) | ||||||||||
Loss from discontinued operations per share, basic and diluted (dollars per share) | $0 | ($0.02) | ($0.11) | ||||||||||
Net loss per common share, basic and diluted (dollars per share) | ($0.67) | ($1.51) | ($0.77) | ||||||||||
Antidilutive securities excluded from computation of loss per share (shares) | 6,139 | 18,583 | 15,742 | ||||||||||
Computer hardware and equipment [Member] | Minimum [Member] | |||||||||||||
Property and Equipment [Abstract] | |||||||||||||
Estimated useful life | 3 years | ||||||||||||
Computer hardware and equipment [Member] | Maximum [Member] | |||||||||||||
Property and Equipment [Abstract] | |||||||||||||
Estimated useful life | 5 years | ||||||||||||
Purchased software and licenses [Member] | Minimum [Member] | |||||||||||||
Property and Equipment [Abstract] | |||||||||||||
Estimated useful life | 3 years | ||||||||||||
Purchased software and licenses [Member] | Maximum [Member] | |||||||||||||
Property and Equipment [Abstract] | |||||||||||||
Estimated useful life | 5 years | ||||||||||||
Furniture and fixtures [Member] | |||||||||||||
Property and Equipment [Abstract] | |||||||||||||
Estimated useful life | 7 years | ||||||||||||
Cost of revenues [Member] | |||||||||||||
Property and Equipment [Abstract] | |||||||||||||
Research and development | $1,400,000 | $1,600,000 | $1,400,000 | ||||||||||
Series A Preferred Stock [Member] | |||||||||||||
Denominator: [Abstract] | |||||||||||||
Antidilutive securities excluded from computation of loss per share (shares) | 0 | 7,908 | 7,908 | ||||||||||
Series B Preferred Stock [Member] | |||||||||||||
Denominator: [Abstract] | |||||||||||||
Antidilutive securities excluded from computation of loss per share (shares) | 0 | 1,818 | 1,818 | ||||||||||
Series C Preferred Stock [Member] | |||||||||||||
Denominator: [Abstract] | |||||||||||||
Antidilutive securities excluded from computation of loss per share (shares) | 0 | 2,184 | 0 | ||||||||||
Junior Preferred Stock [Member] | |||||||||||||
Denominator: [Abstract] | |||||||||||||
Antidilutive securities excluded from computation of loss per share (shares) | 0 | 1,251 | 1,251 | ||||||||||
Stock options [Member] | |||||||||||||
Denominator: [Abstract] | |||||||||||||
Antidilutive securities excluded from computation of loss per share (shares) | 6,139 | 5,422 | 4,765 | ||||||||||
Stock options [Member] | |||||||||||||
Stock-Based Compensation [Abstract] | |||||||||||||
Option vesting percentage on first anniversary of grant date | 25.00% | ||||||||||||
Period of monthly vesting of options after first anniversary of grant date | 36 months | ||||||||||||
[1] | Includes stock-based compensation as follows for the three years ended December 31, 2014, 2013 and 2012, respectively, Cost of Revenues of $623, $264, and $187, respectively; Sales and Marketing of $774, $274, and $123, respectively; Research and development of $527, $257, and $195, respectively; General and administrative of $2,646, $810. and $526, respectively; Total stock-based compensation of $4,570, $1,605, and $1,031, respectively. |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Fair Value, Measurements, Recurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | $19,321 |
Investments, Fair Value | 20,956 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | 17,865 |
Investments, Fair Value | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | 1,456 |
Investments, Fair Value | 20,956 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | 0 |
Investments, Fair Value | 0 |
US government agency bonds [Member] | Fair Value, Measurements, Recurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments, Fair Value | 7,502 |
US government agency bonds [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments, Fair Value | 0 |
US government agency bonds [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments, Fair Value | 7,502 |
US government agency bonds [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments, Fair Value | 0 |
Corporate bonds and commercial paper [Member] | Fair Value, Measurements, Recurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments, Fair Value | 6,192 |
Corporate bonds and commercial paper [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments, Fair Value | 0 |
Corporate bonds and commercial paper [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments, Fair Value | 6,192 |
Corporate bonds and commercial paper [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments, Fair Value | 0 |
Certificates of deposits [Member] | Fair Value, Measurements, Recurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments, Fair Value | 7,262 |
Certificates of deposits [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments, Fair Value | 0 |
Certificates of deposits [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments, Fair Value | 7,262 |
Certificates of deposits [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments, Fair Value | 0 |
Money market funds [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | 17,865 |
Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | 17,865 |
Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | 17,865 |
Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | 0 |
Money market funds [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | 0 |
Certificates of deposits [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | 1,456 |
Certificates of deposits [Member] | Fair Value, Measurements, Recurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | 1,456 |
Certificates of deposits [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | 0 |
Certificates of deposits [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | 1,456 |
Certificates of deposits [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and Cash Equivalents, Fair Value | $0 |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents and Investments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and Cash Equivalents, Amortized Cost | $67,979 | $18,675 | $9,111 | $15,363 |
Investments, Amortized Cost | 20,970 | |||
Investments, Unrealized Gains | 0 | |||
Investments, Unrealized Losses | -14 | |||
Investments, Fair Value | 20,956 | |||
Cash [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and Cash Equivalents, Amortized Cost | 48,700 | 18,700 | ||
Cash Equivalents [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and Cash Equivalents, Amortized Cost | 19,321 | |||
Cash and Cash Equivalents, Fair Value | 19,321 | |||
Money market funds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and Cash Equivalents, Amortized Cost | 17,865 | |||
Cash and Cash Equivalents, Fair Value | 17,865 | |||
Certificates of Deposit [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and Cash Equivalents, Amortized Cost | 1,456 | |||
Cash and Cash Equivalents, Fair Value | 1,456 | |||
US government agency bonds [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investments, Amortized Cost | 7,508 | |||
Investments, Unrealized Gains | 0 | |||
Investments, Unrealized Losses | -6 | |||
Investments, Fair Value | 7,502 | |||
Corporate bonds and commercial paper [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investments, Amortized Cost | 6,200 | |||
Investments, Unrealized Gains | 0 | |||
Investments, Unrealized Losses | -8 | |||
Investments, Fair Value | 6,192 | |||
Certificates of Deposit [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investments, Amortized Cost | 7,262 | |||
Investments, Unrealized Gains | 0 | |||
Investments, Unrealized Losses | 0 | |||
Investments, Fair Value | $7,262 |
Cash_Cash_Equivalents_and_Inve3
Cash, Cash Equivalents and Investments - Contractual Maturities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents [Abstract] | ||
Due within one year or less | $9,095 | $0 |
Due after one year through five years | 11,861 | 0 |
Total | $20,956 | $0 |
Cash_Cash_Equivalents_and_Inve4
Cash, Cash Equivalents and Investments - Securities in Continuous Loss Position (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value | $13,708 |
Gross Unrealized Loss | -14 |
US government agency bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value | 7,508 |
Gross Unrealized Loss | -6 |
Corporate bonds and commercial paper [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Fair Value | 6,200 |
Gross Unrealized Loss | ($8) |
Deferred_Solution_and_Other_Co2
Deferred Solution and Other Costs (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred solution costs | $3,585 | $2,174 |
Deferred commissions | 1,475 | 950 |
Deferred solution and other costs, current portion | 5,060 | 3,124 |
Deferred solution costs | 1,684 | 1,721 |
Deferred commissions | 5,475 | 3,637 |
Deferred solution and other costs, net of current portion | $7,159 | $5,358 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||||||||||
Property and equipment, gross | $26,309 | $19,452 | $26,309 | $19,452 | |||||||
Accumulated depreciation | -7,788 | -4,621 | -7,788 | -4,621 | |||||||
Property and equipment | 18,521 | 14,831 | 18,521 | 14,831 | |||||||
Depreciation and amortization | 961 | 1,092 | 1,031 | 999 | 900 | 809 | 624 | 638 | 4,083 | 2,971 | 1,697 |
Fixed Assets [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation and amortization | 4,000 | 2,900 | 1,500 | ||||||||
Computer hardware and equipment [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property and equipment, gross | 13,370 | 8,917 | 13,370 | 8,917 | |||||||
Purchased software and licenses [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property and equipment, gross | 5,759 | 3,501 | 5,759 | 3,501 | |||||||
Furniture and fixtures [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property and equipment, gross | 3,116 | 3,014 | 3,116 | 3,014 | |||||||
Leasehold improvements [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property and equipment, gross | 4,064 | 4,020 | 4,064 | 4,020 | |||||||
Assets acquired under capital leases [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property and equipment, gross | $3,200 | $3,200 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued data center equipment purchases | $3,228 | $512 |
Accrued data center software purchases | 1,483 | 467 |
Accrued transaction processing fees | 1,537 | 3,761 |
Accrued professional services | 730 | 721 |
Other | 2,290 | 1,827 |
Total accrued liabilities | $9,268 | $7,288 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 05, 2014 | Apr. 22, 2014 | Mar. 17, 2014 | Feb. 26, 2014 | Jun. 30, 2013 | Apr. 30, 2013 | Aug. 11, 2014 | Oct. 31, 2016 | |
annual_installment | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Repayments of Lines of Credit | $18,710,000 | $2,682,000 | $0 | ||||||||
Advances on line of credit | 12,500,000 | 6,350,000 | 0 | ||||||||
Line of Credit [Member] | 2013 Secured Credit Facility [Member] | Wells Fargo [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Repayments of Lines of Credit | 2,000,000 | 4,200,000 | 12,500,000 | ||||||||
Line of credit facility, increase to borrowing capacity | 25,000,000 | ||||||||||
Line of credit facility, maximum borrowing capacity | 25,000,000 | ||||||||||
Fixed interest rate | 4.70% | ||||||||||
Line of credit facility, maximum borrowing capacity as a percentage of the Company's trailing twelve-month recurring revenues | 75.00% | ||||||||||
Line of credit facility, initial closing fee, number of annual installments | 3 | ||||||||||
Period of repayment for initial closing fee on line of credit facility | 3 years | ||||||||||
Advances on line of credit | 12,500,000 | 3,900,000 | 2,500,000 | ||||||||
Available balance on line of credit facility | 22,000,000 | ||||||||||
Line of Credit [Member] | 2013 Secured Credit Facility [Member] | U.S. Federal Funds Rate [Member] | Wells Fargo [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable interest rate | 1.00% | ||||||||||
Line of Credit [Member] | 2013 Secured Credit Facility [Member] | One Month LIBOR [Member] | Wells Fargo [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable interest rate | 1.00% | ||||||||||
Letter of Credit [Member] | 2013 Secured Credit Facility [Member] | Wells Fargo [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Secured letters of credit amount | 3,000,000 | 3,000,000 | |||||||||
Scenario, Forecast [Member] | Line of Credit [Member] | 2013 Secured Credit Facility [Member] | Wells Fargo [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $25,000,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 18, 2014 | |
Long-term Purchase Commitment [Line Items] | ||||||||||||
Rent expense under operating leases | $1,000,000 | $1,400,000 | $900,000 | |||||||||
Unoccupied lease charges | 0 | 0 | 0 | 0 | 0 | 88,000 | 148,000 | 0 | 0 | 236,000 | 0 | |
CREF Aspen Lake Building II, LLC [Member] | Lease Agreements [Member] | ||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||
Rentable square feet | 70,000 | |||||||||||
Initial term of lease contract | 124 months | |||||||||||
Renewal term of lease contract | 5 years | |||||||||||
Initial monthly rent | 98,000 | |||||||||||
Final monthly rent | $160,000 | |||||||||||
Period over which final monthly rent applies | 4 months | |||||||||||
CREF Aspen Lake Building II, LLC [Member] | Lease Agreement, First Phase [Member] | ||||||||||||
Long-term Purchase Commitment [Line Items] | ||||||||||||
Rentable square feet | 55,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Payments for Capital and Operating Leases (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Capital Leases | ||
2015 | $418 | |
2016 | 164 | |
2017 | 4 | |
2018 | 0 | |
2019 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 586 | |
Less: imputed interest | -11 | |
Less: current portion | -408 | -714 |
Capital lease obligations, net of current portion | 167 | 575 |
Operating Leases | ||
2015 | 2,054 | |
2016 | 3,023 | |
2017 | 3,289 | |
2018 | 3,371 | |
2019 | 3,453 | |
Thereafter | 13,446 | |
Total minimum lease payments | $28,636 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Future Minimum Payments for Contractual Commitments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Contractual Commitments | |
2015 | $10,465 |
2016 | 6,382 |
2017 | 4,464 |
2018 | 4,232 |
2019 | 4,092 |
Thereafter | 4,092 |
Total commitments | $33,727 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 25, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 02, 2014 |
Class of Stock [Line Items] | |||||
Proceeds from the issuance of common stock, net of issuance costs | $72,600 | $86,286 | $0 | $0 | |
Convertible stock, shares issued upon conversion | 1 | ||||
Series A Preferred Stock [Member] | |||||
Conversion of Common and Preferred Stock [Abstract] | |||||
Conversion of stock, shares converted | 7,908,000 | ||||
Series B Preferred Stock [Member] | |||||
Conversion of Common and Preferred Stock [Abstract] | |||||
Conversion of stock, shares converted | 1,818,000 | ||||
Series C Preferred Stock [Member] | |||||
Conversion of Common and Preferred Stock [Abstract] | |||||
Conversion of stock, shares converted | 2,605,000 | ||||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Share issued in initial public offering (shares) | 7,761,000 | 1,164,000 | |||
Share price (dollars per share) | $13 | ||||
Shares sold by selling shareholders (shares) | 1,511,000 | ||||
Proceeds from the issuance of common stock, net of issuance costs | $13,700 | ||||
Conversion of Common and Preferred Stock [Abstract] | |||||
Conversion of stock, shares converted | 3,829,000 | ||||
Undesignated common stock, subsequent to conversion | 17,412,000 | ||||
Junior Convertible Preferred Stock [Member] | |||||
Conversion of Common and Preferred Stock [Abstract] | |||||
Conversion of stock, shares converted | 1,251,000 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Feb. 28, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (shares) | 2,331,000 | 834,000 | 1,064,000 | ||
Aggregate intrinsic value of options exercised in period | $17.30 | $4.80 | $0.20 | ||
Total fair market value of stock options vested during the period | 2.2 | 1.2 | 0.8 | ||
Unrecognized stock-based compensation expense, related to stock options | 14 | ||||
2014 Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Initial reserve of shares under the plan | 1,850,000 | ||||
Additional shares authorized under the plan, percentage increase | 4.50% | ||||
Shares reserved for future issuance | 1,957,000 | ||||
Granted (shares) | 606,000 | ||||
Shares available for future issuance under the plan | 1,407,000 | 2,006,000 | |||
Shares transferred from the previous plan that expired or terminated | 7,000 | 49,000 | |||
2007 Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for future issuance | 9,172,000 | ||||
Additional shares authorized under the plan | 1,400,000 | ||||
Shares transferred to new plan | 107,000 | ||||
Stock options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized stock-based compensation, related to stock options, period for recognition | 3 years | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized stock-based compensation, related to stock options, period for recognition | 3 years 10 months 24 days | ||||
Unrecognized stock-based compensation expense, related to restricted stock | $0.50 |
StockBased_Compensation_Assump
Stock-Based Compensation - Assumptions Used in Estimating Fair Value of Options Granted (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate, minimum | 1.20% | 0.70% | 0.70% | |
Risk-free interest rate, maximum | 1.80% | 2.20% | 1.10% | |
Expected volatility, minimum | 45.10% | 46.40% | 52.00% | |
Expected volatility, maximum | 46.80% | 49.40% | 52.50% | |
Dividend yield | 0.00% | 0.00% | 0.00% | |
Weighted-average grant date fair value per share (dollars per share) | $5.63 | $3.15 | $2.65 | |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (years) | 3 years 9 months 18 days | 4 years 9 months 18 days | 4 years 9 months 18 days | |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (years) | 6 years 1 month 6 days | 6 years 10 months 24 days | 6 years 3 months 18 days |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Option Activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Number of Options (in shares) | |||
Beginning balance | 5,422 | 5,732 | 5,022 |
Granted | 2,331 | 834 | 1,064 |
Exercised | -1,583 | -738 | -42 |
Forfeited | -59 | -406 | -312 |
Ending balance | 6,111 | 5,422 | 5,732 |
Weighted Average Exercise Price (dollars per share) | |||
Options outstanding, beginning | $2.76 | $1.94 | $1.12 |
Granted | $10.10 | $7.69 | $5.73 |
Exercised | $1.27 | $0.59 | $0.41 |
Forfeited | $7.56 | $5.31 | $1.84 |
Options outstanding, ending | $5.90 | $2.76 | $1.94 |
StockBased_Compensation_Stock_1
Stock-Based Compensation Stock Options by Range of Exercise Prices (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding (shares) | 6,111 |
Options outstanding (weighted average exercise price per share) | $5.90 |
Options outstanding (weighted average remaining contractual life in years) | 5 years 6 months |
Options exercisable (shares) | 2,855 |
Options exercisable (weighted average exercise price per share) | $2.44 |
Options exercisable (weighted average remaining contractual life in years) | 4 years 10 months 24 days |
$0.29 - $0.35 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | $0.29 |
Exercise price range, upper range limit | $0.35 |
Options outstanding (shares) | 919 |
Options outstanding (weighted average exercise price per share) | $0.33 |
Options outstanding (weighted average remaining contractual life in years) | 3 years 2 months 12 days |
Options exercisable (shares) | 919 |
Options exercisable (weighted average exercise price per share) | $0.33 |
Options exercisable (weighted average remaining contractual life in years) | 3 years 2 months 12 days |
$0.54 - $0.84 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | $0.54 |
Exercise price range, upper range limit | $0.84 |
Options outstanding (shares) | 477 |
Options outstanding (weighted average exercise price per share) | $0.72 |
Options outstanding (weighted average remaining contractual life in years) | 4 years 9 months 18 days |
Options exercisable (shares) | 477 |
Options exercisable (weighted average exercise price per share) | $0.72 |
Options exercisable (weighted average remaining contractual life in years) | 4 years 9 months 18 days |
$1.74 - $3.10 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | $1.74 |
Exercise price range, upper range limit | $3.10 |
Options outstanding (shares) | 1,094 |
Options outstanding (weighted average exercise price per share) | $2.80 |
Options outstanding (weighted average remaining contractual life in years) | 6 years 3 months 18 days |
Options exercisable (shares) | 866 |
Options exercisable (weighted average exercise price per share) | $2.73 |
Options exercisable (weighted average remaining contractual life in years) | 6 years 2 months 12 days |
$4.00 - $7.82 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | $4 |
Exercise price range, upper range limit | $7.82 |
Options outstanding (shares) | 1,312 |
Options outstanding (weighted average exercise price per share) | $6.89 |
Options outstanding (weighted average remaining contractual life in years) | 5 years 7 months 6 days |
Options exercisable (shares) | 572 |
Options exercisable (weighted average exercise price per share) | $6.48 |
Options exercisable (weighted average remaining contractual life in years) | 5 years 8 months 12 days |
$8.35 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | $8.35 |
Exercise price range, upper range limit | $8.35 |
Options outstanding (shares) | 1,737 |
Options outstanding (weighted average exercise price per share) | $8.35 |
Options outstanding (weighted average remaining contractual life in years) | 6 years 1 month 6 days |
Options exercisable (shares) | 0 |
Options exercisable (weighted average exercise price per share) | $0 |
Options exercisable (weighted average remaining contractual life in years) | 0 years |
$13.00 - $19.44 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | $13 |
Exercise price range, upper range limit | $19.44 |
Options outstanding (shares) | 572 |
Options outstanding (weighted average exercise price per share) | $15.41 |
Options outstanding (weighted average remaining contractual life in years) | 6 years 8 months 12 days |
Options exercisable (shares) | 21 |
Options exercisable (weighted average exercise price per share) | $13 |
Options exercisable (weighted average remaining contractual life in years) | 6 years 2 months 12 days |
StockBased_Compensation_Restri
Stock-Based Compensation - Restricted Stock Activity (Details) (Restricted Stock [Member], USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Number of Nonvested Shares (shares) | ||
Nonvested, beginning | 0 | |
Granted | 28 | |
Nonvested, ending | 28 | |
Nonvested Shares, Weighted Average Grant Date Fair Value (dollars per share) | ||
Nonvested, beginning | $19.44 | $0 |
Granted | $19.44 | |
Nonvested, ending | $19.44 | $0 |
Provision_for_Income_Taxes_Com
Provision for Income Taxes - Components of Income Tax Provision (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current taxes: [Abstract] | |||||||||||
Federal | $0 | $0 | $0 | ||||||||
State | 67 | 52 | 162 | ||||||||
Total current taxes | 67 | 52 | 162 | ||||||||
Deferred taxes: | |||||||||||
Federal | 0 | 0 | 0 | ||||||||
State | 4 | 3 | 2 | ||||||||
Total deferred taxes | 4 | 3 | 2 | ||||||||
Provision for income taxes | $20 | $18 | $15 | $18 | $22 | $14 | $14 | $5 | $71 | $55 | $164 |
Provision_for_Income_Taxes_Add
Provision for Income Taxes - Additional Information (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $69.90 |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax credits | 0.2 |
Alternative Minimum Tax Credit Carryforward [Member] | Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax credits | $0.10 |
Provision_for_Income_Taxes_Def
Provision for Income Taxes - Deferred Tax Assets and Liabilities (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Increase in valuation allowance | $6,400,000 | |
Deferred tax assets: | ||
NOL and credit carryforwards | 16,340,000 | 21,328,000 |
Deferred revenue | 1,596,000 | 2,657,000 |
Accrued expenses and other | 3,295,000 | 3,386,000 |
Stock-based compensation | 209,000 | 1,107,000 |
Total deferred tax assets | 21,440,000 | 28,478,000 |
Deferred tax liabilities: | ||
Deferred expenses | -3,924,000 | -5,128,000 |
Depreciation and amortization | -3,573,000 | -2,972,000 |
Total deferred tax liabilities | -7,497,000 | -8,100,000 |
Deferred tax assets less tax liabilities | 13,943,000 | 20,378,000 |
Less: valuation allowance | -13,828,000 | -20,266,000 |
Net deferred tax asset | 115,000 | 112,000 |
Excess stock deductions excluded from deferred tax assets | $9,900,000 |
Provision_for_Income_Taxes_Inc
Provision for Income Taxes - Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Statutory Federal income tax rate, percent | 34.00% | 34.00% | 34.00% |
Increase in deferred tax valuation allowance, percent | -32.90% | -32.70% | -31.50% |
State taxes, net of federal benefit, percent | 1.50% | 1.40% | -0.70% |
Other permanent items, percent | -3.00% | -3.00% | -4.00% |
Income tax provision effective rate, percent | -0.40% | -0.30% | -2.20% |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
401(K) Plan, minimum annual contributions per employee, percent of total earnings | 1.00% |
401 (K) Plan, maximum annual contributions per employee, percent of total earnings | 90.00% |
Related_Parties_Details
Related Parties (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transactions [Abstract] | |||
Revenue from a related-party customer | $0.40 | $0.30 | $0.30 |
Related party expenses, professional services | $0.10 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Revenues | $22,148 | $20,989 | $19,158 | $16,834 | $15,669 | $14,325 | $14,044 | $12,834 | $79,129 | $56,872 | $41,101 | ||
Cost of revenues | 12,869 | 12,143 | 10,830 | 10,212 | 10,879 | 9,167 | 8,408 | 7,807 | 46,054 | [1] | 36,261 | [1] | 25,170 |
Gross profit | 9,279 | 8,846 | 8,328 | 6,622 | 4,790 | 5,158 | 5,636 | 5,027 | 33,075 | 20,611 | 15,931 | ||
Operating expenses: | |||||||||||||
Sales and marketing | 5,886 | 5,642 | 6,032 | 5,509 | 4,929 | 4,599 | 4,138 | 3,060 | 23,069 | [1] | 16,726 | [1] | 8,962 |
Research and development | 3,408 | 3,155 | 2,787 | 2,736 | 2,752 | 2,259 | 2,152 | 1,866 | 12,086 | [1] | 9,029 | [1] | 5,317 |
General and administrative | 4,641 | 4,574 | 4,058 | 3,718 | 3,424 | 3,207 | 2,776 | 2,335 | 16,991 | [1] | 11,742 | [1] | 8,780 |
Unoccupied lease charges | 0 | 0 | 0 | 0 | 0 | 88 | 148 | 0 | 0 | 236 | 0 | ||
Total operating expenses | 13,935 | 13,371 | 12,877 | 11,963 | 11,105 | 10,153 | 9,214 | 7,261 | 52,146 | 37,733 | 23,059 | ||
Loss from operations | -4,656 | -4,525 | -4,549 | -5,341 | -6,315 | -4,995 | -3,578 | -2,234 | -19,071 | -17,122 | -7,128 | ||
Other income (expense): | |||||||||||||
Total other expense, net | -84 | -82 | -119 | -207 | -162 | -170 | -116 | -51 | -492 | -499 | -228 | ||
Loss before income taxes | -4,740 | -4,607 | -4,668 | -5,548 | -6,477 | -5,165 | -3,694 | -2,285 | -19,563 | -17,621 | -7,356 | ||
Provision for income taxes | -20 | -18 | -15 | -18 | -22 | -14 | -14 | -5 | -71 | -55 | -164 | ||
Loss from continuing operations attributable to common stockholders | -4,760 | -4,625 | -4,683 | -5,566 | -6,499 | -5,179 | -3,708 | -2,290 | -19,634 | -17,676 | -7,520 | ||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -199 | 0 | -199 | -1,259 | ||
Net loss | ($4,760) | ($4,625) | ($4,683) | ($5,566) | ($6,499) | ($5,179) | ($3,708) | ($2,489) | ($19,634) | ($17,875) | ($8,779) | ||
[1] | Includes stock-based compensation as follows for the three years ended December 31, 2014, 2013 and 2012, respectively, Cost of Revenues of $623, $264, and $187, respectively; Sales and Marketing of $774, $274, and $123, respectively; Research and development of $527, $257, and $195, respectively; General and administrative of $2,646, $810. and $526, respectively; Total stock-based compensation of $4,570, $1,605, and $1,031, respectively. |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data - Reconciliation of EBITDA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
registered_user | registered_user | registered_user | registered_user | registered_user | registered_user | registered_user | registered_user | ||||
Net loss | ($4,760) | ($4,625) | ($4,683) | ($5,566) | ($6,499) | ($5,179) | ($3,708) | ($2,489) | ($19,634) | ($17,875) | ($8,779) |
Depreciation and amortization | 961 | 1,092 | 1,031 | 999 | 900 | 809 | 624 | 638 | 4,083 | 2,971 | 1,697 |
Stock-based compensation expense | |||||||||||
Stock-based compensation expenses | 4,570 | 1,605 | 1,031 | ||||||||
Provision for income taxes | 20 | 18 | 15 | 18 | 22 | 14 | 14 | 5 | 71 | 55 | 164 |
Other expense, net | 84 | 82 | 119 | 207 | 162 | 170 | 116 | 51 | 492 | 499 | 228 |
Unoccupied lease charges | 0 | 0 | 0 | 0 | 0 | 88 | 148 | 0 | 0 | 236 | 0 |
Loss from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 199 | 0 | 199 | 1,259 |
Adjusted EBITDA | -2,212 | -2,332 | -2,450 | -3,424 | -4,932 | -3,686 | -2,430 | -1,262 | |||
Registered users | 4,340,000 | 4,123,000 | 3,941,000 | 3,447,000 | 3,124,000 | 2,956,000 | 2,900,000 | 2,609,000 | |||
Cost of revenues [Member] | |||||||||||
Stock-based compensation expense | |||||||||||
Stock-based compensation expenses | 191 | 159 | 147 | 126 | 72 | 70 | 61 | 61 | 623 | 264 | 187 |
Sales and marketing [Member] | |||||||||||
Stock-based compensation expense | |||||||||||
Stock-based compensation expenses | 231 | 189 | 187 | 167 | 94 | 81 | 60 | 39 | 774 | 274 | 123 |
Research and development [Member] | |||||||||||
Stock-based compensation expense | |||||||||||
Stock-based compensation expenses | 167 | 131 | 122 | 107 | 68 | 64 | 66 | 59 | 527 | 257 | 195 |
General and administrative [Member] | |||||||||||
Stock-based compensation expense | |||||||||||
Stock-based compensation expenses | $894 | $622 | $612 | $518 | $249 | $197 | $189 | $175 | $2,646 | $810 | $526 |
Uncategorized_Items
Uncategorized Items | 12/31/11 | ||||||
USD ($) | |||||||
[us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest] | -11,250,000 | 0 | 5,087,000 | 1,000 | 1,740,000 | -18,078,000 | 0 |