Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Care.com Inc | |
Entity Central Index Key | 0001412270 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 33,128,379 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 29, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 94,560 | $ 92,432 | |
Short-term investments | 35,000 | 35,099 | |
Accounts receivable (net of allowance of $100 and $100, respectively) | [1] | 6,488 | 4,663 |
Unbilled accounts receivable | [2] | 6,684 | 6,394 |
Prepaid expenses and other current assets | 7,389 | 7,223 | |
Total current assets | 150,121 | 145,811 | |
Property and equipment, net | 3,336 | 3,423 | |
Intangible assets, net | 3,249 | 4,061 | |
Goodwill | 67,321 | 68,176 | |
Other non-current assets | 3,129 | 2,859 | |
Operating lease right of use assets, net | 23,525 | 0 | |
Deferred tax assets | 0 | 43,737 | |
Total assets | 250,681 | 268,067 | |
Current liabilities: | |||
Accounts payable | [3] | 2,277 | 3,437 |
Accrued expenses and other current liabilities | [4] | 25,176 | 20,463 |
Current contingent acquisition consideration | 1,000 | 1,527 | |
Deferred revenue | [5] | 24,459 | 20,176 |
Current operating lease liabilities | 5,587 | 0 | |
Total current liabilities | 58,499 | 45,603 | |
Non-current contingent acquisition consideration | 0 | 438 | |
Deferred tax liability | 1,835 | 0 | |
Other non-current liabilities | 3,568 | 6,806 | |
Non-current operating lease liabilities | 24,619 | 0 | |
Total liabilities | 88,521 | 52,847 | |
Contingencies (see Note 6) | 0 | 0 | |
Stockholders' equity | |||
Preferred Stock: $0.001 par value - authorized 5,000 shares at September 30, 2019 and December 29, 2018, respectively | 0 | 0 | |
Common stock, $0.001 par value; 300,000 shares authorized; 33,082 and 32,057 shares issued and outstanding at September 30, 2019 and December 29, 2018, respectively | 33 | 32 | |
Additional paid-in capital | 299,679 | 286,295 | |
Accumulated deficit | (192,191) | (124,122) | |
Accumulated other comprehensive (loss) income | (560) | 8 | |
Total stockholders' equity | 106,961 | 162,213 | |
Total liabilities, redeemable convertible preferred stock and stockholders' equity | 250,681 | 268,067 | |
Series A Redeemable Convertible Preferred Stock | |||
Current liabilities: | |||
Series A Redeemable Convertible Preferred Stock, $0.001 par value - 46 shares designated; 46 shares issued and outstanding at September 30, 2019 and December 29, 2018; at aggregate liquidation and redemption value at September 30, 2019 and December 29, 2018, respectively | $ 55,199 | $ 53,007 | |
[1] | Includes accounts receivable due from related party of $231 and $421 at September 30, 2019 and December 29, 2018, respectively. (Note 14) | ||
[2] | Includes unbilled accounts receivable due from related party of $610 and $680 at September 30, 2019 and December 29, 2018, respectively. (Note 14) | ||
[3] | Includes accounts payable due to related party of $0 and $530 at September 30, 2019 and December 29, 2018, respectively. (Note 14) | ||
[4] | Includes accrued expenses and other current liabilities due to related party of $1,352 and $403 at September 30, 2019 and December 29, 2018, respectively. (Note 14) | ||
[5] | Includes deferred revenue associated with related party of $57 and $1 at September 30, 2019 and December 29, 2018, respectively. (Note 14) |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 29, 2018 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Common stock, shares authorized (shares) | 300,000,000 | 300,000,000 | |
Common stock, shares issued (shares) | 33,082,000 | 32,057,000 | |
Common stock, shares outstanding (shares) | 33,082,000 | 32,057,000 | |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 | |
Allowance for doubtful accounts receivable | $ 100 | $ 100 | |
Accounts receivable | 231 | 421 | |
Unbilled accounts receivable | [1] | 6,684 | 6,394 |
Accounts payable | 0 | 530 | |
Accrued expenses and other current liabilities | [2] | 25,176 | 20,463 |
Deferred revenue | [3] | $ 24,459 | $ 20,176 |
Series A Redeemable Convertible Preferred Stock | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Redeemable convertible preferred stock, shares authorized (shares) | 46,350 | 46,350 | |
Redeemable convertible preferred stock, shares issued (shares) | 46,350 | 46,350 | |
Redeemable convertible preferred stock, shares outstanding (shares) | 46,350 | 46,350 | |
Affiliated Entity | |||
Accounts receivable | $ 231 | $ 421 | |
Unbilled accounts receivable | 610 | 680 | |
Accrued expenses and other current liabilities | 1,352 | 403 | |
Deferred revenue | $ 57 | $ 1 | |
[1] | Includes unbilled accounts receivable due from related party of $610 and $680 at September 30, 2019 and December 29, 2018, respectively. (Note 14) | ||
[2] | Includes accrued expenses and other current liabilities due to related party of $1,352 and $403 at September 30, 2019 and December 29, 2018, respectively. (Note 14) | ||
[3] | Includes deferred revenue associated with related party of $57 and $1 at September 30, 2019 and December 29, 2018, respectively. (Note 14) |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | ||
Income Statement [Abstract] | |||||
Revenue | [1] | $ 53,285 | $ 49,160 | $ 157,599 | $ 142,451 |
Cost of revenue | 15,598 | 11,532 | 43,050 | 30,798 | |
Operating expenses: | |||||
Selling and marketing | [2] | 17,732 | 16,439 | 53,287 | 49,197 |
Research and development | 8,417 | 8,860 | 36,563 | 25,640 | |
General and administrative | 13,281 | 10,987 | 35,604 | 33,047 | |
Depreciation and amortization | 478 | 416 | 1,408 | 1,245 | |
Goodwill and intangible asset impairment charge | 0 | 0 | 8,183 | 0 | |
Restructuring and right of use asset impairment charges | (134) | 89 | 2,855 | 568 | |
Total operating expenses | 39,774 | 36,791 | 137,900 | 109,697 | |
Operating (loss) income | (2,087) | 837 | (23,351) | 1,956 | |
Other (expense) income, net | (222) | 38 | 454 | (168) | |
(Loss) income before income taxes | (2,309) | 875 | (22,897) | 1,788 | |
(Benefit from) provision for income taxes | (73) | (977) | 45,172 | (2,592) | |
Net (loss) income | (2,236) | 1,852 | (68,069) | 4,380 | |
Accretion of Series A Redeemable Convertible Preferred Stock dividends | (773) | (718) | (2,192) | (2,063) | |
Net (income) attributable to Series A Redeemable Convertible Preferred Stock | 0 | (155) | 0 | (321) | |
Net (loss) income attributable to common stockholders | $ (3,009) | $ 979 | $ (70,261) | $ 1,996 | |
Net (loss) income per share attributable to common stockholders (Basic) (in dollars per share) | $ (0.09) | $ 0.03 | $ (2.16) | $ 0.06 | |
Net (loss) income per share attributable to common stockholders (Diluted) (in dollars per share) | $ (0.09) | $ 0.03 | $ (2.16) | $ 0.06 | |
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders: | |||||
Basic (shares) | 32,863 | 31,356 | 32,539 | 30,980 | |
Diluted (shares) | 32,863 | 33,880 | 32,539 | 33,633 | |
[1] | Includes related party revenue of $937 and $819 for the three months ended September 30, 2019 and September 29, 2018, respectively. Includes related party revenue of $2,759 and $2,161 for the nine months ended September 30, 2019 and September 29, 2018, respectively. (Note 14) | ||||
[2] | Includes related party expenses of $3,482 and $2,912 for the three months ended September 30, 2019 and September 29, 2018, respectively. Includes related party expenses of $9,946 and $8,565 for the nine months ended September 30, 2019 and September 29, 2018, respectively. (Note 14) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | |
Income Statement [Abstract] | ||||
Related party revenue | $ 937 | $ 819 | $ 2,759 | $ 2,161 |
Related party expenses | $ 3,482 | $ 2,912 | $ 9,946 | $ 8,565 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (2,236) | $ 1,852 | $ (68,069) | $ 4,380 |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (505) | 14 | (568) | (236) |
Comprehensive (loss) income | $ (2,741) | $ 1,866 | $ (68,637) | $ 4,144 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Series A Redeemable Convertible Preferred StockPreferred Stock |
Beginning balance at Dec. 30, 2017 | $ 89,461 | $ 30 | $ 266,030 | $ (177,145) | $ 546 | $ 50,259 |
Preferred stock, shares outstanding, beginning balance (shares) at Dec. 30, 2017 | 46 | |||||
Common stock, shares outstanding, beginning balance (shares) at Dec. 30, 2017 | 30,390 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercises of stock options (shares) | 228 | |||||
Exercises of stock options | 1,253 | $ 1 | 1,252 | |||
Issuance of restricted stock units (shares) | 215 | |||||
Issuance of restricted stock units | 0 | 0 | ||||
Stock-based compensation | 3,712 | 3,712 | ||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | $ 680 | |||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | (680) | (680) | ||||
Foreign currency translation adjustment | 200 | 200 | ||||
Net (loss) income | 2,697 | 2,697 | ||||
Common stock, shares outstanding, ending balance (shares) at Mar. 31, 2018 | 30,833 | |||||
Preferred stock, shares outstanding, ending balance (shares) at Mar. 31, 2018 | 46 | |||||
Ending balance at Mar. 31, 2018 | 96,776 | $ 31 | 270,314 | (174,315) | 746 | $ 50,939 |
Beginning balance at Dec. 30, 2017 | 89,461 | $ 30 | 266,030 | (177,145) | 546 | $ 50,259 |
Preferred stock, shares outstanding, beginning balance (shares) at Dec. 30, 2017 | 46 | |||||
Common stock, shares outstanding, beginning balance (shares) at Dec. 30, 2017 | 30,390 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | (2,063) | |||||
Foreign currency translation adjustment | (236) | |||||
Net (loss) income | 4,380 | |||||
Common stock, shares outstanding, ending balance (shares) at Sep. 29, 2018 | 31,644 | |||||
Preferred stock, shares outstanding, ending balance (shares) at Sep. 29, 2018 | 46 | |||||
Ending balance at Sep. 29, 2018 | 109,404 | $ 32 | 281,694 | (172,632) | 310 | $ 52,322 |
Beginning balance at Mar. 31, 2018 | 96,776 | $ 31 | 270,314 | (174,315) | 746 | $ 50,939 |
Preferred stock, shares outstanding, beginning balance (shares) at Mar. 31, 2018 | 46 | |||||
Common stock, shares outstanding, beginning balance (shares) at Mar. 31, 2018 | 30,833 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercises of stock options (shares) | 249 | |||||
Exercises of stock options | 1,943 | $ 0 | 1,943 | |||
Issuance of restricted stock units (shares) | 157 | |||||
Issuance of restricted stock units | 0 | 0 | ||||
Stock-based compensation | 4,988 | 4,988 | ||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | $ 665 | |||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | (665) | (665) | ||||
Foreign currency translation adjustment | (450) | (450) | ||||
Net (loss) income | (169) | (169) | ||||
Common stock, shares outstanding, ending balance (shares) at Jun. 30, 2018 | 31,239 | |||||
Preferred stock, shares outstanding, ending balance (shares) at Jun. 30, 2018 | 46 | |||||
Ending balance at Jun. 30, 2018 | 102,423 | $ 31 | 276,580 | (174,484) | 296 | $ 51,604 |
Increase (Decrease) in Stockholders' Equity | ||||||
Exercises of stock options (shares) | 190 | |||||
Exercises of stock options | 1,551 | $ 0 | 1,551 | |||
Issuance of restricted stock units (shares) | 215 | |||||
Issuance of restricted stock units | 1 | $ 1 | 0 | |||
Stock-based compensation | 4,281 | 4,281 | ||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | $ 718 | |||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | (718) | (718) | ||||
Foreign currency translation adjustment | 14 | 14 | ||||
Net (loss) income | 1,852 | 1,852 | ||||
Common stock, shares outstanding, ending balance (shares) at Sep. 29, 2018 | 31,644 | |||||
Preferred stock, shares outstanding, ending balance (shares) at Sep. 29, 2018 | 46 | |||||
Ending balance at Sep. 29, 2018 | 109,404 | $ 32 | 281,694 | (172,632) | 310 | $ 52,322 |
Beginning balance at Dec. 29, 2018 | $ 162,213 | $ 32 | 286,295 | (124,122) | 8 | $ 53,007 |
Preferred stock, shares outstanding, beginning balance (shares) at Dec. 29, 2018 | 46 | |||||
Common stock, shares outstanding, beginning balance (shares) at Dec. 29, 2018 | 32,057 | 32,057 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercises of stock options (shares) | 168 | |||||
Exercises of stock options | $ 1,267 | $ 0 | 1,267 | |||
Issuance of restricted stock units (shares) | 201 | |||||
Issuance of restricted stock units | 0 | $ 0 | 0 | |||
Stock-based compensation | 4,054 | 4,054 | ||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | $ 718 | |||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | (718) | (718) | ||||
Foreign currency translation adjustment | (266) | (266) | ||||
Net (loss) income | (1,028) | (1,028) | ||||
Common stock, shares outstanding, ending balance (shares) at Mar. 30, 2019 | 32,426 | |||||
Preferred stock, shares outstanding, ending balance (shares) at Mar. 30, 2019 | 46 | |||||
Ending balance at Mar. 30, 2019 | 165,522 | $ 32 | 290,898 | (125,150) | (258) | $ 53,725 |
Beginning balance at Dec. 29, 2018 | $ 162,213 | $ 32 | 286,295 | (124,122) | 8 | $ 53,007 |
Preferred stock, shares outstanding, beginning balance (shares) at Dec. 29, 2018 | 46 | |||||
Common stock, shares outstanding, beginning balance (shares) at Dec. 29, 2018 | 32,057 | 32,057 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | $ (2,192) | |||||
Foreign currency translation adjustment | (568) | |||||
Net (loss) income | $ (68,069) | |||||
Common stock, shares outstanding, ending balance (shares) at Sep. 30, 2019 | 33,082 | 33,082 | ||||
Preferred stock, shares outstanding, ending balance (shares) at Sep. 30, 2019 | 46 | |||||
Ending balance at Sep. 30, 2019 | $ 106,961 | $ 33 | 299,679 | (192,191) | (560) | $ 55,199 |
Beginning balance at Mar. 30, 2019 | 165,522 | $ 32 | 290,898 | (125,150) | (258) | $ 53,725 |
Preferred stock, shares outstanding, beginning balance (shares) at Mar. 30, 2019 | 46 | |||||
Common stock, shares outstanding, beginning balance (shares) at Mar. 30, 2019 | 32,426 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Exercises of stock options (shares) | 124 | |||||
Exercises of stock options | 420 | $ 0 | 420 | |||
Issuance of restricted stock units (shares) | 189 | |||||
Issuance of restricted stock units | 1 | $ 1 | 0 | |||
Stock-based compensation | 7,282 | 7,282 | ||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | $ 701 | |||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | (701) | (701) | ||||
Foreign currency translation adjustment | 203 | 203 | ||||
Net (loss) income | (64,805) | (64,805) | ||||
Common stock, shares outstanding, ending balance (shares) at Jun. 29, 2019 | 32,739 | |||||
Preferred stock, shares outstanding, ending balance (shares) at Jun. 29, 2019 | 46 | |||||
Ending balance at Jun. 29, 2019 | 107,922 | $ 33 | 297,899 | (189,955) | (55) | $ 54,426 |
Increase (Decrease) in Stockholders' Equity | ||||||
Exercises of stock options (shares) | 6 | |||||
Exercises of stock options | 46 | $ 0 | 46 | |||
Issuance of restricted stock units (shares) | 337 | |||||
Issuance of restricted stock units | 0 | $ 0 | 0 | |||
Stock-based compensation | 2,507 | 2,507 | ||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | $ 773 | |||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | (773) | (773) | ||||
Foreign currency translation adjustment | (505) | (505) | ||||
Net (loss) income | $ (2,236) | (2,236) | ||||
Common stock, shares outstanding, ending balance (shares) at Sep. 30, 2019 | 33,082 | 33,082 | ||||
Preferred stock, shares outstanding, ending balance (shares) at Sep. 30, 2019 | 46 | |||||
Ending balance at Sep. 30, 2019 | $ 106,961 | $ 33 | $ 299,679 | $ (192,191) | $ (560) | $ 55,199 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 29, 2018 | |
Cash flows from operating activities | ||
Net (loss) income | $ (68,069) | $ 4,380 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Stock-based compensation | 13,843 | 12,981 |
Depreciation and amortization | 2,150 | 1,527 |
Deferred income taxes | 44,750 | (2,712) |
Contingent consideration expense | 0 | 29 |
Change in fair value of contingent consideration | 669 | 257 |
Loss on impairment of goodwill and intangible assets | 8,183 | 142 |
Foreign currency remeasurement loss | 545 | 606 |
Disposal of fixed assets | 525 | 0 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | (1,867) | 497 |
Unbilled accounts receivable | (303) | (625) |
Prepaid expenses and other current assets | (1,856) | (1,630) |
Other non-current assets | (27) | (693) |
Operating lease right of use assets and liabilities | (208) | 0 |
Accounts payable | (1,150) | (678) |
Accrued expenses and other current liabilities | 5,420 | 4,677 |
Deferred revenue | 4,376 | 3,645 |
Payments of contingent consideration in excess of acquisition date fair value | (521) | 0 |
Other non-current liabilities | 2,894 | 1,330 |
Net cash provided by operating activities | 9,354 | 23,733 |
Cash flows from investing activities | ||
Purchases of property and equipment; and software | (1,606) | (564) |
Payments for acquisitions, net of cash acquired | (7,472) | (9,818) |
Purchase of short-term investment | (50,000) | (35,099) |
Sale of short-term investment | 50,099 | 15,000 |
Other | (84) | 0 |
Net cash used in investing activities | (9,063) | (30,481) |
Cash flows from financing activities | ||
Proceeds from exercise of common stock options | 1,791 | 4,693 |
Payments of contingent consideration | (1,112) | 0 |
Net cash provided by financing activities | 679 | 4,693 |
Effect of exchange rate changes on cash and cash equivalents | (269) | (282) |
Net (decrease) increase in cash and cash equivalents and restricted cash | 701 | (2,337) |
Cash and cash equivalents and restricted cash, beginning of the period | 95,284 | 89,024 |
Cash and cash equivalents and restricted cash, end of the period | 95,985 | 86,687 |
Cash and cash equivalents and restricted cash, end of the period | 95,284 | 89,024 |
Supplemental disclosure of cash flow activities | ||
Cash paid for taxes | 427 | 483 |
Supplemental disclosure of non-cash operating, investing and financing activities | ||
Unpaid purchases of property and equipment | 0 | 297 |
Series A Redeemable Convertible Preferred Stock dividend accretion | $ 2,192 | $ 2,063 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 29, 2018 | |
Restricted Cash | [1] | $ 1,425 | $ 2,114 |
Prepaid Expenses and Other Current Assets | |||
Restricted Cash | 30 | 354 | |
Other Noncurrent Assets | |||
Restricted Cash | $ 1,395 | $ 1,759 | |
[1] | (1) As of the nine months ended September 30, 2019 $30 and $1,395 was included in Prepaid expenses and other current assets and Other non-current assets on the Condensed Consolidated Balance Sheet, respectively. As of the nine months ended September 29, 2018 $354 and $1,759 was included in Prepaid expenses and other current assets and Other non-current assets on the Condensed Consolidated Balance Sheet, respectively. |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Care.com, Inc., a Delaware corporation, was incorporated on October 27, 2006. Unless the context indicates otherwise, when used in this report, the terms “we,” “us,” “our,” “Care.com” and the “Company” mean Care.com, Inc. and its consolidated subsidiaries, collectively. We are the world’s largest online marketplace for finding and managing family care. Our consumer matching solutions enable families to connect to caregivers and caregiving services in a reliable and easy way, and our payment solutions enable families to pay caregivers electronically online or via their mobile device and to manage their household payroll and tax matters with Care.com HomePay. In addition, we serve employers by providing access to our platform to employer-sponsored families and we serve care-related businesses – such as day care centers, nanny agencies and home care agencies – that wish to market their services to our care-seeking families and recruit our caregiver members. Certain Significant Risks and Uncertainties We operate in a dynamic industry and, accordingly, our business is affected by a variety of factors. For example, we believe that negative changes in any of the following areas could have a significant negative effect on our future financial position, results of operations or cash flows: rates of revenue growth; member engagement and usage of our existing and new products; perception of our brand; coverage by the media and other publicity; retention of qualified employees and key personnel; management of our growth; scaling and adaptation of existing technology and network infrastructure; competition in our market; performance of acquisitions and investments; protection of our intellectual property; protection of customers’ information and privacy concerns; security measures related to our website; access to capital at acceptable terms; and outcomes of governmental investigations or other legal proceedings. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 29, 2018 , filed on March 7, 2019 . There have been no material changes in our significant accounting policies for the nine months ended September 30, 2019 as compared to those described in our Annual Report on Form 10-K for the fiscal year ended December 29, 2018 , with the exception of the adoption of the Financial Accounting Standards Board’s (“FASB”) Accounting Standard Update (“ASU”) No. 2016-02, “Leases (Topic 842)” in the first quarter of fiscal 2019. Refer below to “Recently Issued and Adopted Accounting Pronouncements” for further information. The condensed consolidated balance sheet as of December 29, 2018 included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including notes, required by GAAP on an annual reporting basis. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods, and are not necessarily indicative of the results of operations to be anticipated for fiscal 2019 or any future period. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries, after elimination of all intercompany balances and transactions. We have prepared the accompanying financial statements in conformity with GAAP. Fiscal Year-End Prior to June 30, 2019, we operated and reported using a 52 or 53 week fiscal year ending on the Saturday in December closest and prior to December 31. Accordingly, our fiscal quarters ended on the Saturday that fell closest to the last day of the third month of each quarter. In the second quarter of fiscal 2019, our board of directors approved a resolution to change the Company’s fiscal year from a 52 or 53 week fiscal year to a calendar year. Accordingly, our current fiscal year will be extended from December 28, 2019 to December 31, 2019, with subsequent fiscal years beginning on January 1 and ending on December 31 of each year. Beginning June 30, 2019, the first day of our third quarter, our quarterly results will be for the three month periods ending March 31, June 30, September 30 and December 31. Subsequent Events Consideration We consider events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. There were no material recognized or unrecognized subsequent events recorded in the condensed consolidated financial statements as of and for the three and nine months ended September 30, 2019 . Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The guidance requires an entity to recognize a right-of-use asset and a lease liability for all of its leases with lease terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. We adopted ASU 2016-02 and its amendments in the first quarter of fiscal 2019 using the modified retrospective approach and with a cumulative effect recorded on the date of adoption of December 31, 2018, the first day of our 2019 reporting year. Prior periods were not restated accordingly. We elected the Practical Expedient Package (Accounting Standards Codification (“ASC”) 842-10-65-1) permitted under the transition guidance within the new standard, which among other things allowed us to carry forward the historical lease classification. Refer to Note 15 “Leases” for the adoption impact to our condensed consolidated balance sheet. The difference between the operating lease liabilities and operating right of use assets is associated with accrued rent payments under ASC 840 and right of use asset impairments related to restructuring activities completed prior to the adoption date associated with our ceased use of certain office space subject to operating leases. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract,” which requires that a customer in a cloud computing arrangement that is a service contract follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. ASU 2018-15 generally aligns the guidance on recognizing implementation costs incurred in a cloud computing arrangement that is a service contract with that for implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. ASU 2018-15 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted. We have elected to prospectively adopt ASU No. 2018-15. Adoption will have no day one impact on the consolidated balance sheet. In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which amends ASC 820, Fair Value Measurement. This ASU modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The guidance will be effective for us in the first quarter of fiscal 2020. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. We are currently evaluating the impact of ASU 2018-13 on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The FASB also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. The guidance will be effective for us in our annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted, and we are currently evaluating whether we will early adopt. ASU 2017-04 must be applied prospectively. We expect that ASU 2017-04 would simplify our measurement of goodwill impairment if any of our reporting units have a zero or negative carrying value, or would fail Step 1 of the impairment test following the date of adoption. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 will be effective for us in our first quarter of fiscal 2020, and earlier adoption is permitted. The modified-retrospective approach is required for adoption. We are currently evaluating the impact of ASU 2016-13 on our consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents information about our assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 29, 2018 and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands): September 30, 2019 December 29, 2018 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market mutual funds $ 18,473 $ — $ — $ 18,473 $ 18,148 $ — $ — $ 18,148 Certificates of deposit 36,395 — — 36,395 37,180 — — 37,180 Total assets $ 54,868 $ — $ — $ 54,868 $ 55,328 $ — $ — $ 55,328 Liabilities: Contingent acquisition consideration $ — $ — $ 1,000 $ 1,000 $ — $ — $ 1,964 $ 1,964 Total liabilities $ — $ — $ 1,000 $ 1,000 $ — $ — $ 1,964 $ 1,964 The following table sets forth a summary of changes in fair value of our contingent acquisition consideration liability, which represents the recurring measurement that is classified within Level 3 of the fair value hierarchy wherein fair value is estimated using significant unobservable inputs (in thousands): September 30, 2019 Contingent Acquisition Consideration Beginning balance - December 29, 2018 $ 1,964 Change in fair value of contingent consideration 669 Payment of contingent consideration liability (1,633 ) Ending balance - September 30, 2019 $ 1,000 We recorded our estimates of the fair value of contingent consideration associated with the Town & Country Resources, Inc. and Trusted Labs, Inc. acquisitions based on the evaluation of the likelihood of the achievement of the contractual conditions that would result in the payment of the contingent considerations and weighted probability assumptions of these outcomes. For both acquisitions, the fair value of the initial liability was estimated using the Monte Carlo simulation with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in ASC 820, Fair Value Measurements and Disclosures. Subsequently, the fair value of the liability was estimated using updated assumptions on the probability assessment of achievement of the financial and operating metrics. The significant inputs in the Level 3 measurement not supported by market activity included our probability assessments of the achievement of certain financial and operational metrics, appropriately discounted considering the uncertainties associated with the obligation, and calculated in accordance with the terms of the merger agreements. The cash portion of the contingent consideration liabilities have been discounted to reflect the time value of money, and therefore, as the milestone dates approach, the fair value of these liabilities will increase. Changes in fair value are recorded in general and administrative expense in the accompanying consolidated statements of operations. Non-Recurring Fair Value Measurements We re-measure the fair value of certain assets and liabilities upon the occurrence of certain events. Such assets comprise long-lived assets, including property and equipment, right of use asset impairments, intangible assets and goodwill. In the nine months ended September 30, 2019 and September 29, 2018 , no significant remeasurements were necessary. Other financial instruments not measured or recorded at fair value in the accompanying condensed consolidated balance sheets principally consist of accounts receivable, accounts payable and accrued liabilities. The estimated fair values of these instruments approximate their carrying values due to their short-term nature. In the quarter ended September 30, 2017, we ceased use of 25,812 square feet of the Company’s headquarters facility and recorded a restructuring liability, which upon adoption of ASC 842 we reclassified this liability as a reduction of the right-of-use asset associated with the lease. We have updated our estimate in subsequent periods, as discussed in Note 12. These estimates include assumptions for the time period it will take to obtain a subtenant, construction costs and certain sublease rates. These estimates may vary from the sublease agreements ultimately executed, if at all, and could result in an adjustment to the right of use asset. In the first and third quarters of fiscal 2018, we updated our assumptions for the expected time period it will take to obtain a subtenant for the remainder of the ceased use space. This resulted in an additional $0.6 million of charges, of which $0.5 million was incurred in the first quarter of fiscal 2018 and $0.1 million was incurred in the third quarter of fiscal 2018. We also updated our assumptions in the first, second and third quarters of fiscal 2019. We signed a sublease agreement for a portion of the ceased use space during the third quarter of fiscal 2019 and accordingly updated our estimates. The updated assumptions resulted in $0.2 million and $0.3 million of restructuring and right of use asset impairment charges in the first and second quarters of fiscal 2019, respectively. In the third quarter of fiscal 2019 a reduction to the restructuring and right of use asset impairments of $0.1 million was recorded, when the final sublease agreement was signed and the subtenant income was known. The measurement of our restructuring charges and right of use asset impairments using these assumptions is a level 3 measurement. During the quarter ended June 29, 2019, we decided to abandon and seek a sublet for 36,395 square feet of the Company’s headquarters facility, which resulted in a right of use asset impairment charge of $1.1 million . This loss was determined by comparing the fair value of the impacted right of use asset to the carrying value of the asset as of the impairment measurement date, as required under ASC Topic 360, Property, Plant, and Equipment (“ASC 360”) . The fair value of the right of use asset was based on the estimated sublease income for the portion of the Company’s headquarters taking into consideration the time period it will take to obtain a subtenant, the applicable discount rate and the sublease rate. Additionally, we recorded a restructuring loss of $0.7 million associated with abandoning the space. The loss comprised of exit and disposal costs consisting of construction costs, real estate taxes, broker fees and utilities. Furthermore, we wrote-off $0.5 million of leasehold improvements related to the space. Refer to Note 12 for further information. The measurement of our restructuring loss and right of use asset impairments using the assumptions described is a level 3 measurement. In the second quarter of fiscal 2019, we decided to wind down our Figure 8 business. This resulted in an indicator of impairment for the associated goodwill and intangible assets. Given that Figure 8 was only acquired in the first quarter of fiscal 2019, we had not yet integrated the business into our existing reporting units. As we will be disposing of the business, our impairment assessment completed in the second quarter of fiscal 2019 resulted in an impairment loss of $8.2 million in the three and six months ended June 29, 2019. This impairment loss comprised of the $5.3 million of goodwill recorded upon acquisition and $2.9 million of net proprietary software intangible assets. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue Recognition Revenue is recognized when control of the promised service is transferred to the customer in an amount that reflects the consideration we expect to be entitled to in exchange for the service. For all presentations below sales and usage-based taxes are excluded from revenue. The following table presents our revenue disaggregated by major service lines for the three and nine months ended September 30, 2019 and September 29, 2018 (in thousands). Three Months Ended Nine Months Ended September 30, 2019 September 29, 2018 September 30, 2019 September 29, 2018 Business-to-Consumer Matching Solutions $ 37,478 $ 36,814 $ 109,868 $ 103,965 Payment Solutions 6,530 6,058 21,923 20,488 Business-to-Business Care Work Solutions 6,875 4,367 18,937 12,468 Recruiting and Marketing Solutions and other 2,402 1,921 6,871 5,530 Total revenue $ 53,285 $ 49,160 $ 157,599 $ 142,451 The following table presents our revenue disaggregated by timing of transfer of services for the three and nine months ended September 30, 2019 and September 29, 2018 (in thousands). Three Months Ended Nine Months Ended September 30, 2019 September 29, 2018 September 30, 2019 September 29, 2018 Point-in-time $ 4,696 $ 4,205 $ 16,016 $ 13,314 Over-time 48,589 44,955 141,583 129,137 Total revenue $ 53,285 $ 49,160 $ 157,599 $ 142,451 Contract Balances The increase in the deferred revenue balance at September 30, 2019 as compared to December 29, 2018 was primarily driven by cash payments received for our obligation to perform future services during fiscal 2019 , offset by $18.5 million of revenue recognized that was included in the deferred revenue balance as of December 29, 2018 . We consider on-demand back-up care overages for our Care Work offering to be constrained variable consideration in the transaction price until the constraint is resolved upon usage. The revenue recognized in the nine months ended September 30, 2019 related to on-demand back-up care overages for our Care Work offering was $0.3 million . Transaction Price Allocated to the Remaining Performance Obligations For performance obligations that are part of contracts that have an original expected duration of greater than one year, we expect to recognize $1.5 million , $3.9 million , $1.4 million and $0.2 million of revenue related to our Care Work offering in the remainder of fiscal 2019 , fiscal 2020 , fiscal 2021 and fiscal 2022, respectively, related to performance obligations that are currently unsatisfied (or partially satisfied) as of September 30, 2019 . This disclosure does not include revenue related to performance obligations that are part of a contract whose original expected duration is one year or less. Our matching solutions offering consists of subscription terms whose duration is one year or less, and the service period for our payment solutions revenue is one year or less. Additionally, most of our business-to-business contracts are for durations of one year or less. Furthermore, this disclosure does not include expected consideration related to performance obligations for which we elect to recognize revenue in the amount we have a right to invoice (e.g., usage-based pricing terms). Contract Costs We capitalize sales commissions for new customer contracts in our business-to-business solutions offerings. Capitalized commissions are amortized over the period of expected benefit, which is the customer life and we estimate to be approximately five years. As of September 30, 2019 , capitalized commissions were $1.6 million . For the three and nine months ended September 30, 2019 and September 29, 2018 , amortized commission expense was (in thousands): Three Months Ended Nine Months Ended September 30, September 29, September 30, September 29, Amortized commission expense $ 96 $ 22 $ 295 $ 61 For renewal commissions with a renewal term of one year or less, we applied the practical expedient and expense commission when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expense. |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions Filios Inc. On January 4, 2019, we purchased all of the outstanding stock of Filios, Inc. (“Figure 8”), a mobile app for parents to organize and manage carpools, pursuant to which we acquired all of the outstanding shares of Figure 8 for total potential consideration of $12.6 million , consisting of $7.6 million as an up-front payment and four earn-outs of $0.5 million , $1.0 million , $1.0 million and $2.5 million to be earned consecutively over one-year periods for four years. All of the earn-outs were determined to be compensatory in nature based on required future services and product development milestones required to be achieved by the founders who will continue employment with us. The preliminary purchase price of $7.6 million was allocated to assets and liabilities as follows: $4.5 million of goodwill, $3.1 million in identified intangible assets, consisting proprietary technology in the form of Figure 8’s mobile application, and working capital assets and liabilities, which were immaterial. Additionally, we increased our goodwill by $0.8 million to record a deferred tax liability in purchase accounting related to the acquired intangible assets. In the second quarter of fiscal 2019, we decided to wind down our Figure 8 business. Please refer to Note 5 for further information on the impairment losses recorded. Trusted Labs, Inc. On July 12, 2018, we purchased all of the outstanding stock of Trusted Labs, Inc. (“Trusted”), an on-demand child care provider offering service in the San Francisco Bay Area and New York City, pursuant to which we acquired all of the outstanding shares of Trusted for total potential consideration of $8.1 million , consisting of an up-front payment of $4.6 million , up to $2.2 million in retention payments, earn-out payments of up to an aggregate of $1.0 million to be earned consecutively over three quarters following the closing, and payments of $0.3 million to settle liabilities. We estimated the fair value of the contingent consideration at the acquisition date to be $1.0 million and thus included this in the total accounting purchase price of $5.6 million . The purchase price of $5.6 million was allocated to assets and liabilities as follows: $3.4 million of goodwill, $2.5 million in identified intangible assets, consisting primarily of proprietary software and care-giver relationships, and $0.3 million in working capital liabilities, which were immaterial. The goodwill is primarily derived from synergies we expect as a result of the deal. Additionally, a discrete tax benefit of $0.6 million was recorded to account for the valuation allowance release primarily related to the acquired intangible assets which have increased fair market value basis for GAAP purposes but carryover basis for tax purposes, resulting in a deferred tax liability that provided a source of income supporting realization of other deferred tax assets. Galore, Inc. On May 31, 2018, we entered into an asset purchase agreement with Galore, Inc. (“Galore”), an e-commerce marketplace for parents to discover and purchase activities for their children and a SaaS platform for businesses providing family activities to offer those activities for purchase online, pursuant to which we acquired certain assets of Galore for total consideration of $0.3 million as an up-front payment, and two earn-out payments ranging from $0.3 - $0.5 million in year one and $0.7 - $0.9 million in year 2, based upon certain revenue achievement metrics. Due to ongoing service requirements pertaining to the earn-outs, the amounts are being recognized as compensation expense over the required employment period. The purchase price of $0.3 million was allocated to an identified intangible asset, consisting of proprietary software. Town & Country Resources, Inc. On January 9, 2018, we entered into an asset purchase agreement with Town & Country Resources, Inc. (“Town & Country”), a premium home staffing agency in the San Francisco Bay Area, pursuant to which we acquired certain assets for total potential consideration of $7.0 million , consisting of $5.0 million as an up-front payment, and two earn-outs of up to $1.0 million each to be earned over consecutive one -year periods. We estimated the fair value of the contingent consideration at the acquisition date to be $1.0 million and thus included this in the total accounting purchase price of $6.0 million . The preliminary purchase price of $6.0 million was allocated to assets and liabilities as follows: $4.8 million of goodwill, $1.2 million in identified intangible assets, consisting primarily of caregiver relationships and the Town & Country trade name, and working capital assets and liabilities, which were immaterial. The goodwill is primarily derived from synergies we expect as a result of the deal. Pro forma information related to the acquisitions in fiscal 2018 and 2019 were not presented as the impact of the acquisitions on our consolidated results of operations is not significant. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents the change in goodwill for the periods presented (in thousands): Balance as of December 29, 2018 $ 68,176 Effect of currency translation (855 ) Business acquisition 5,325 Goodwill impairment (5,325 ) Balance as of September 30, 2019 $ 67,321 In the second quarter of fiscal 2019, we decided to wind down our Figure 8 business. This resulted in an indicator of impairment for the associated goodwill and intangible assets. Given that Figure 8 was only acquired in the first quarter of fiscal 2019, we had not yet integrated the business into our existing reporting units. As we will be disposing of the business, our impairment assessment completed in the second quarter of fiscal 2019 resulted in an impairment loss of $8.2 million in the second quarter of fiscal 2019. This impairment loss comprised of the $5.3 million of goodwill recorded upon acquisition and $2.9 million of net proprietary software intangible assets. Additionally, in the quarter ended June 29, 2019 we incurred other expenses of $3.9 million in stock-based compensation related to the acceleration of time-based restricted stock units granted as part of the acquisition of Figure 8 and $4.1 million associated with the acceleration of the earn-out payments as part of the decision to no longer invest in Figure 8. We recorded $7.5 million of these expenses as research and development expense with the remaining $0.5 million recorded in general and administrative expenses. The $8.2 million impairment loss for the goodwill and intangible asset was recorded as goodwill and intangible asset impairment charge in the consolidated statements of operations for the nine months ended September 30, 2019. After the Figure 8 impairment loss in the second quarter of fiscal 2019, we had $47.1 million of accumulated impairment losses. The following table presents the detail of intangible assets for the periods presented (dollars in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted-Average Remaining Life (Years) September 30, 2019 Indefinite lived intangibles $ 260 $ — $ 260 N/A Trademarks and trade names 4,714 (4,488 ) 226 5.3 Proprietary software 7,787 (5,665 ) 2,122 3.7 Internal software 227 (184 ) 43 1.1 Caregiver relationships 1,104 (731 ) 373 1.4 Customer relationships 8,509 (8,284 ) 225 3.3 Total $ 22,601 $ (19,352 ) $ 3,249 December 29, 2018 Indefinite lived intangibles $ 260 $ — $ 260 N/A Trademarks and trade names 4,742 (4,441 ) 301 5.3 Proprietary software 7,869 (5,316 ) 2,553 4.5 Internal software 227 (141 ) 86 1.7 Leasehold interests 170 (163 ) 7 0.4 Caregiver relationships 1,116 (538 ) 578 2.1 Customer relationships 8,541 (8,265 ) 276 4.0 Total $ 22,925 $ (18,864 ) $ 4,061 Amortization expense was $1.1 million and $0.7 million for the nine months ended September 30, 2019 and September 29, 2018 , respectively. Of these amounts, $0.4 million and $0.4 million was classified as a component of depreciation and amortization, and $0.7 million and $0.3 million was classified as a component of cost of revenue in the condensed consolidated statements of operations for the nine months ended September 30, 2019 and September 29, 2018 , respectively. As of September 30, 2019 , the estimated future amortization expense related to intangible assets for future fiscal years was as follows (in thousands): 2019 remaining 258 2020 984 2021 712 2022 679 2023 313 Thereafter 43 Total $ 2,989 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal matters From time to time we are involved in regulatory, governmental and law enforcement inquiries, investigations and subpoenas, as well as legal proceedings, that arise in the ordinary course of our business. Each reporting period, we evaluate whether or not a loss contingency related to such matters is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. If a loss is probable and the potential estimate of the loss is a range, we evaluate if there is a point within the range that appears at the time to be a better estimate than any other point in the range, and if so, that amount is accrued. If we conclude that no amount in the range appears to be a better estimate than any other, we accrue the minimum amount in the range. We monitor developments in legal matters that could affect estimates we have previously accrued and update our estimates as appropriate based on subsequent developments. In March 2016, we learned of an investigation by the Marin County, California District Attorney’s Office regarding the clarity and conspicuousness of our automatic renewal disclosures and the mechanism by which we obtain informed consent when members purchase premium subscriptions on our website. In September 2016, we learned of an investigation by the San Francisco County, California District Attorney’s Office regarding the accuracy and clarity of our disclosures about the sex offender registry search available to consumers through our website. In 2017, the District Attorneys’ Offices proposed a joint settlement that would include a payment by us of approximately $4.9 million to resolve both investigations. We are in discussions with the District Attorneys’ Offices regarding a proposed settlement and continue to cooperate with the investigations. We have determined that it is probable that we will incur a loss in connection with these matters and have accrued an amount based on the low end of the range of our reasonable estimate of this loss. In addition, on April 3, 2019, a complaint was filed against the Company and two of our officers, Sheila Lirio Marcelo, our chief executive officer, and Michael Echenberg, who was then our chief financial officer, in the U.S. District Court for the District of Massachusetts. The lawsuit purports to be brought on behalf of a class of purchasers of our stock during the period from March 27, 2015 to April 1, 2019, and alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder, related to the Company’s disclosures about the screening of certain member information for criminal or other inappropriate inactivity. The complaint seeks compensatory and punitive damages, fees, interest, costs and other appropriate relief. A lead plaintiff has been appointed and on July 23, 2019 the court set a schedule for the completion of certain pretrial events. In accordance with that schedule, the plaintiffs filed an amended complaint on September 16, 2019 and the Company filed a motion to dismiss on November 1, 2019. The Company is unable to predict the ultimate outcome of this litigation, and therefore cannot estimate possible losses or ranges of losses, if any. We also are currently involved in other pending regulatory and government inquiries and investigations and legal proceedings in the ordinary course of our business. Although the results of these matters cannot be predicted with certainty, we do not believe they will have a material adverse effect on our business. Regardless of the outcome, legal proceedings can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Stock-Based Compensation The following table summarizes stock-based compensation in our accompanying condensed consolidated statements of operations (in thousands). During the nine months ended September 30, 2019, we recorded an additional $3.9 million of stock compensation associated with the wind down of our Figure 8 business in research and development expense on the accompanying condensed consolidated statements of operations. Please refer to Note 5 for further information. Three Months Ended Nine Months Ended September 30, 2019 September 29, 2018 September 30, 2019 September 29, 2018 Cost of revenue $ 136 $ 87 $ 346 $ 219 Selling and marketing 639 631 1,911 1,827 Research and development 503 1,105 7,063 3,134 General and administrative 1,229 2,458 4,523 7,801 Total stock-based compensation $ 2,507 $ 4,281 $ 13,843 $ 12,981 Pursuant to our 2014 Incentive Award Plan (the “2014 Plan”), during the nine months ended September 30, 2019 , we granted 1.3 million time-based restricted stock units (“RSUs”) to certain employees, advisors and directors, and 0.3 million performance-based RSUs (“PSUs”) to certain members of management and advisors. In the first half of fiscal 2019, we granted 0.3 million PSUs. The number of PSUs that become eligible to vest for each recipient will be determined in the first quarter of 2020 based upon our level of achievement of certain financial targets for fiscal 2019. To the extent any PSUs become eligible to vest, they generally will vest over a two -year period, retroactive to March 2019, as continued services are performed. PSUs granted in 2018 and 2017 are vesting over a two -year and three -year period, respectively, retroactive to the grant date of the applicable award. We are recognizing expense using the graded-vesting method based on our estimate of the number of PSUs that will vest. If there is a change in the estimate of the number of PSUs that are probable of vesting, we will cumulatively adjust compensation expense in the period that the change in estimate is made. RSUs and PSUs are not included in issued and outstanding common stock until the shares are vested and released. The grant-date fair value of an RSU and PSU is measured based on the market price of the underlying common stock as of the date of grant, reduced by the purchase price of $0.001 per share, which is the per share par value of our common stock. The weighted-average grant-date fair value per vested share of RSUs and PSUs and the total fair value of vested shares from RSU and PSU grants were $16.10 and $11.6 million , res pectively, for the nine months ended September 30, 2019 . The weighted-average grant-date fair value per vested share of RSUs and PSUs and total fair value of per share of vested shares from RSU and PSU grants were $10.76 and $6.2 million , respectively, for the nine months ended September 29, 2018 . During the nine months ended September 29, 2018 , we granted 0.1 million stock options to certain employees and directors with a weighted-average exercise price per share of $17.44 . We did not grant any stock options during the nine months ended September 30, 2019 . A summary of stock option, RSU and PSU activity for the nine months ended September 30, 2019 was as follows (in thousands for shares and intrinsic value): Restricted Stock Units Shares Weighted-Average Remaining Contractual Term (Years) Weighted-Average Exercise Price Aggregate Intrinsic Value Shares Weighted-Average Grant Date Fair Value Outstanding as of December 29, 2018 3,524 5.84 $ 9.13 $ 37,477 2,123 $ 15.40 Granted (1) — $ — 1,599 $ 17.19 Settled (RSUs and PSUs) — (718 ) $ 16.10 Exercised (298 ) $ 5.84 Canceled and forfeited (162 ) $ 13.72 (768 ) $ 17.72 Outstanding as of September 30, 2019 3,064 5.01 $ 9.21 $ 9,285 2,236 $ 15.66 Vested and exercisable as of September 30, 2019 2,557 4.53 $ 8.59 $ 8,818 N/A N/A ____________________________ (1) For RSUs, includes time-based and performance-based Aggregate intrinsic value represents the difference between the closing price of our common stock and the exercise price of outstanding, in-the-money options. The closing price of our common stock as reported on the New York Stock Exchange as of September 30, 2019 , the final trading day of the nine months ended September 30, 2019 , was $10.45 . The total intrinsic value of options exercised and RSUs and PSUs vested was approximately $14.2 million and $19.3 million for the nine months ended September 30, 2019 and September 29, 2018 , respectively. The aggregate fair value of the options that vested during the nine months ended September 30, 2019 and September 29, 2018 was $1.7 million and $1.9 million , respectively. As of September 30, 2019 , total unrecognized compensation cost related to non-vested stock options and RSUs, including PSUs and market-based RSUs, was approximately $2.2 million and $23.7 million , respectively, which is expected to be recognized over a weighted-average period of 1.4 years and 2.0 years, respectively, to the extent they are probable of vesting. As of September 30, 2019 , we had 3.4 million shares available for grant under the 2014 Plan. Common Stock As of September 30, 2019 , we had reserved the following shares of common stock for future issuance in connection with the following (in thousands): September 30, 2019 Options issued and outstanding 3,064 Restricted stock units issued and outstanding 2,236 Common stock available for stock-based award grants under incentive award plans 3,373 Common stock available for conversion of Series A Redeemable Convertible Preferred Stock 5,257 Total 13,930 |
Net (Loss) Income per Share Att
Net (Loss) Income per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income per Share Attributable to Common Stockholders | Net (Loss) Income per Share Attributable to Common Stockholders Basic net (loss) income per share is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period. For the three and nine months ended September 30, 2019 and September 29, 2018 , we applied the two-class method to calculate basic and diluted net (loss) income per share of common stock, as our Series A Redeemable Convertible Preferred Stock (Series A Preferred Stock) is a participating security. The two-class method is an earnings allocated formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. We compute diluted net (loss) income per common share using net (loss) income as the “control number” in determining whether potential common shares are dilutive, after giving consideration to all potentially dilutive common shares, including stock options, unvested restricted stock outstanding during the period and potential issuance of stock upon the conversion of our Series A Preferred Stock, including accrued dividends, outstanding during the period, except where the effect of such securities would be anti-dilutive. The calculations of basic and diluted net (loss) income per share and basic and diluted weighted-average shares outstanding for the three and nine months ended September 30, 2019 and September 29, 2018 were as follows (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, 2019 September 29, 2018 September 30, 2019 September 29, 2018 Numerator: Basic: Net (loss) income attributable to common stockholders $ (3,009 ) $ 979 $ (70,261 ) $ 1,996 Diluted: Net (loss) income attributable to common stockholders $ (3,009 ) $ 979 $ (70,261 ) $ 1,996 Plus: undistributed earnings allocated to participating securities — 873 — 2,384 Less: undistributed earnings reallocated to participating securities — (863 ) — (2,362 ) Net (loss) income attributable to common stockholders $ (3,009 ) $ 989 $ (70,261 ) $ 2,018 Denominator: Weighted-average shares outstanding - basic 32,863 31,356 32,539 30,980 Dilutive impact from: Options outstanding — 1,899 — 1,944 Restricted stock units — 625 — 709 Weighted-average shares outstanding - dilutive 32,863 33,880 32,539 33,633 Net (loss) income per share attributable to common stockholders (Basic): $ (0.09 ) $ 0.03 $ (2.16 ) $ 0.06 Net (loss) income per share attributable to common stockholders (Diluted): $ (0.09 ) $ 0.03 $ (2.16 ) $ 0.06 The following equity shares were excluded from the calculation of diluted net income per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 29, September 30, September 29, Stock options 3,064 514 3,064 746 Restricted stock units 2,236 1,046 2,236 805 Series A Redeemable Convertible Preferred Stock (as converted to common stock) 5,257 4,983 5,257 4,983 The Series A Preferred Stock is considered anti-dilutive due to the fact that the two-class method was more dilutive when calculating dilutive net (loss) income per share attributable to common stockholders. |
Preferred Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock Preferred Stock consists of the following at September 30, 2019 and December 29, 2018 (in thousands, except shares): Preferred Stock Authorized Issuance Date Issued and Outstanding Liquidation Preference (as of June 29, 2023) Carrying Value Common Stock Issuable Upon Conversion (as of June 29, 2023) September 30, 2019 Series A Redeemable Convertible Preferred Stock 46,350 June 29, 2016 46,350 $ 67,424 $ 55,199 6,421,369 December 29, 2018 Series A Redeemable Convertible Preferred Stock 46,350 June 29, 2016 46,350 $ 67,424 $ 53,007 6,421,369 Please refer to our Annual Report on Form 10-K for the fiscal year ended December 29, 2018 filed with the Securities and Exchange Commission on March 7, 2019 for further detail on the Series A Preferred Stock. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are required to compute income tax expense in each jurisdiction in which we operate. This process requires us to project our current tax liability and estimate our deferred tax assets and liabilities, including net operating loss (“NOL”) and tax credit carry-forwards. In assessing the ability to realize the net deferred tax assets, we consider whether it is more likely than not that some portion or all of the net deferred tax assets will not be realized. ASC 740 requires a valuation allowance to reduce deferred tax assets if, based on the weight of available evidence, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The weight given to the potential effect of negative and positive evidence should be commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, (a) the more positive evidence is necessary and (b) the more difficult it is to support a conclusion that a valuation allowance is not needed for some portion, or all, of the deferred tax asset. A cumulative loss in recent years is considered a significant piece of negative evidence that is difficult to overcome in assessing the need for a valuation allowance. On a periodic basis, we reassess the need for a valuation allowance on deferred tax assets by weighing positive and negative evidence to assess the recoverability of deferred tax assets. We evaluate the realizability of our deferred tax assets by tax-paying jurisdiction and assess the need for a valuation allowance on a quarterly and annual basis. We evaluate the profitability of each tax-paying component on an historic cumulative basis and a forward-looking basis as part of this analysis. We also weigh other available evidence, both positive and negative, to inform our assessment. Based on the analysis performed in the second quarter of fiscal 2019, we concluded that it is not more likely than not that our deferred tax assets will be realized. As a result, we recorded a valuation allowance on our deferred tax assets in the second quarter of fiscal 2019. In the fourth quarter of 2018 and at the first quarter of 2019, we reached a conclusion that it was more likely than not that substantially all of our deferred taxes would be realized. In each of those periods we had experienced cumulative consolidated pre-tax income on a 3-year basis, most significantly in the United States which has the substantial majority of our deferred tax assets. In addition, during these periods we were projecting to remain in a consolidated pre-tax income position in future years and this positive evidence outweighed all other evidence as it related to our ability to realize our deferred tax assets at these reporting periods. There were several events that transpired in the second quarter of fiscal 2019, that resulted in a change in our financial outlook, our weighting of evidence, and therefore our conclusion is that it is not more likely than not we will realize substantially all of our deferred tax assets as of June 29, 2019. We entered a cumulative consolidated pre-tax loss in the second quarter of fiscal 2019 and are now projecting to remain in one in the near future. Our pre-tax losses incurred to date in fiscal 2019 and our projections for the remainder of the year have been negatively affected by meaningful increases in our operating expenses and decreases in our projected revenues. On May 9, 2019 we announced decisions we have made to invest in safety-related initiatives, which added a significant new cost to our operating plan. In the second quarter of fiscal 2019, we also experienced indicators of impairment related to our decision to no longer invest in Figure 8, which we recently acquired and for which we recorded compensation and other impairment charges described in Note 5. In addition, in the second quarter of fiscal 2019 we experienced lower than expected revenues which we attribute to lower than expected conversions of new members and renewals of existing members. We also expect these trends to adversely affect our revenue growth for the remainder of the year. As a result, we have meaningfully lowered our projections of revenue for the remainder of the year, which significantly affects our ability to generate pre-tax income. We concluded the negative evidence summarized above outweighs the positive evidence as of the second and third quarters of fiscal 2019, and therefore, have not relied on projections of taxable income in our assessment of the realization of deferred taxes at September 30, 2019. We recognized a valuation allowance of $44.5 million in income tax expense in the nine months ended September 30, 2019. We recorded an income tax benefit of $0.1 million and $1.0 million for the three months ended September 30, 2019 and September 29, 2018 , respectively, and income tax expense $45.2 million and an income tax benefit of $2.6 million for the nine months ended September 30, 2019 and September 29, 2018 , respectively. The benefit recorded for the three months ended September 30, 2019 primarily related to natural movement in our valuation allowance and naked liability related to the goodwill amortization for tax purposes for which there is no corresponding GAAP deduction. The expense recorded for the nine months ended September 30, 2019 primarily relates to the recording of a valuation allowance against our net deferred tax assets. The tax benefit recorded for the three and nine months ended September 29, 2018 primarily relates to excess tax benefits recorded from the taxable compensation on share-based awards and a discrete benefit recorded related to the acquisition of Trusted. A benefit of $0.6 million was recorded in the third quarter of fiscal 2018 to account for the valuation allowance release primarily related to the acquired intangible assets which have increased fair market value basis for GAAP purposes but carryover basis for tax purposes. The tax benefit for the three and nine months ended September 29, 2018 was partially offset by tax expenses pertaining to amortization of goodwill for tax purposes, for which there is no corresponding book deduction, foreign taxes in certain foreign jurisdictions, and certain state taxes based on operating income that are payable without regard to tax loss carryforwards. |
Segment and Geographical Inform
Segment and Geographical Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segments and Geographical Information We consider operating segments to be components of the Company in which separate financial information is available that is evaluated regularly by our chief operating decision maker in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is the CEO. Our CEO reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. For the periods presented we have concluded that we have a single operating and reportable segment. No country outside of the United States provided greater than 10% of our total revenue. Revenue is classified by the major geographic areas in which our customers are located. The following table summarizes total revenue generated by our geographic locations (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 29, September 30, September 29, United States $ 48,505 $ 44,594 $ 143,477 $ 128,494 International 4,780 4,566 14,122 13,957 Total revenue $ 53,285 $ 49,160 $ 157,599 $ 142,451 Three Months Ended Nine Months Ended September 30, September 29, September 30, September 29, (As a percentage of revenue) United States 91 % 91 % 91 % 90 % International 9 % 9 % 9 % 10 % Total revenue 100 % 100 % 100 % 100 % Our long-lived assets are primarily located in the United States and are not allocated to any specific region. Therefore, geographic information is presented only for total revenue. |
Restructuring Charges and Right
Restructuring Charges and Right of Use Asset Impairments | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges and Right of Use Asset Impairments | Restructuring Charges and Right of Use Asset Impairments During the quarter ended September 30, 2017, we ceased use of 25,812 square feet of our 108,743 square foot headquarters facility in Waltham, Massachusetts. We recorded a lease obligation charge of $3.1 million . The lease obligation charge consisted of restructuring expense, including sublease income and construction costs, net of deferred rent liabilities of $2.6 million . Additionally, we wrote off $0.5 million of leasehold improvements related to the space. These estimates may vary from the sublease agreements ultimately executed, if at all, resulting in an adjustment to the charges. The initial restructuring charge was recorded as restructuring expense in the consolidated statements of operations for the three and nine months ended September 30, 2017. In the first and third quarters of fiscal 2018, we updated our assumptions for the expected time period it will take to obtain a subtenant for the remainder of the ceased use space. This resulted in and additional $0.6 million of charges, of which $0.5 million was incurred in the first quarter of fiscal 2018 and $0.1 million was incurred in the third quarter of fiscal 2018. We also updated our assumptions in the first, second and third quarters of fiscal 2019. We signed a sublease agreement for a portion of the ceased use space during the third quarter of fiscal 2019 and accordingly updated our estimates. The updated assumptions resulted in $0.2 million and $0.3 million of restructuring and right of use asset impairment charges in the first and second quarters of fiscal 2019, respectively. In the third quarter of fiscal 2019 a reduction to the restructuring and right of use asset impairments of $0.1 million was recorded when the final sublease agreement was signed and the subtenant income was known. Upon adoption of ASC 842, we reclassified the restructuring liability from liabilities to a reduction of the right of use asset associated with the lease. During the quarter ended June 29, 2019, we decided to abandon and seek a sublet for 36,395 square feet of our 108,743 square foot headquarters facility in Waltham, Massachusetts. We recorded a right of use asset impairment charge of $1.1 million . This loss was determined by comparing the fair value of impacted right of use asset to the carrying value of the asset of the impairment measurement date, as required under ASC 360. The fair value of the right of use asset was based on the estimated sublease income for the portion of the Company’s headquarters taking into consideration the time period it will take to obtain a subtenant, the applicable discount rate and the sublease rate. Additionally, we had a restructuring loss of $0.7 million associated with abandoning the space. The loss consisted of exit and disposal costs consisting of construction costs, real estate taxes, broker fees and utilities. Furthermore, we wrote off $0.5 million of leasehold improvements related to the space. These estimates may vary from the sublease agreements ultimately executed, if at all, resulting in an adjustment to the charges. The initial restructuring charge was recorded as restructuring and right of use impairment charges in the consolidated statements of operations for the nine months ended September 30, 2019. |
Other (Expense) Income, net
Other (Expense) Income, net | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other (Expense) Income, net | Other (Expense) Income, net Other (expense) income, net, consisted of the following (in thousands): Three Months Ended Nine Months Ended September 30, September 29, September 30, September 29, Interest income $ 338 $ 180 $ 1,039 $ 488 Interest expense (9 ) (11 ) (26 ) (35 ) Loss on foreign exchange (551 ) (131 ) (559 ) (620 ) Other expense, net — — — (1 ) Total other (expense) income, net $ (222 ) $ 38 $ 454 $ (168 ) |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We had the following transactions with related parties as of and during the three and nine months ended September 30, 2019 and September 29, 2018 : CapitalG LP On June 29, 2016, we issued Series A Preferred Stock to CapitalG LP, as described in Note 9. As a result of this transaction, Alphabet Inc., the ultimate parent of CapitalG LP (“CapitalG”), and all related affiliates of Alphabet Inc. are considered to be related parties. We had the following transactions with Alphabet Inc. and its affiliates during the three and nine months ended September 30, 2019 and September 29, 2018 (in thousands): Three Months Ended Nine Months Ended September 30, September 29, September 30, September 29, Revenue $ 937 $ 819 $ 2,759 $ 2,161 Selling and marketing expense $ 3,482 $ 2,912 $ 9,946 $ 8,565 We had the following transactions with Alphabet Inc. and its affiliates as of September 30, 2019 and December 29, 2018 (in thousands): Period Ended September 30, December 29, Accounts receivable $ 231 $ 421 Unbilled accounts receivable $ 610 $ 680 Accounts payable $ — $ 530 Accrued expense $ 1,352 $ 403 Deferred revenue $ 57 $ 1 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases On December 30, 2018, we adopted ASU No. 2016-02- Leases (ASC 842) using the modified retrospective method. We chose to apply the transition provisions as of the period of adoption. Results for reporting periods beginning on or after December 30, 2018 are presented under ASC 842 while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under ASC 840. Adoption of the new standard resulted in the recording of $20.8 million of operating lease right of use assets, $4.3 million of short-term operating lease liabilities, and $23.5 million of long-term operating lease liabilities. The difference between the operating lease liabilities and operating right of use assets is associated with existing deferred rent under ASC 840 and existing restructuring liabilities under ASC 420, which we removed from our balance sheet upon the adoption of ASC 842. The following table summarizes the amount by which each financial statement line item was affected upon the adoption of ASC 842 as compared with the guidance that was in effect before the change (in thousands): December 29, 2018 ASC 842 Adjustment December 30, 2018 Assets Operating lease right of use assets, net — 20,832 20,832 Total assets $ 268,067 $ 20,832 $ 288,899 Liabilities, redeemable convertible preferred stock, and stockholders' equity Accrued expenses and other current liabilities * 20,463 (1,071 ) 19,392 Current operating lease liabilities — 4,268 4,268 Total current liabilities 45,603 3,197 48,800 Other non-current liabilities * 6,806 (5,818 ) 988 Non-current operating lease liabilities — 23,453 23,453 Total liabilities 52,847 20,832 73,679 Stockholders' equity Total stockholders' equity 162,213 — 162,213 Total liabilities, redeemable convertible preferred stock and stockholders' equity $ 268,067 $ 20,832 $ 288,899 * Accrued expense and other current liabilities and other non-current liabilities represents lease restructuring charges and deferred rent reflected as reductions in operating lease right of use assets, net. We consider a lease to be a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. We lease office spaces in various locations throughout the United States and Europe. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For these lease agreements, we have elected the practical expedient to not separate non-lease and lease components and instead to account for them as a single lease component. Some leases include an option to renew, with renewal terms that can extend the lease term from one to ten years. The exercise of lease renewal options is at our sole discretion. None of these options to renew are recognized as part of our right-to-use asset or lease liability as of September 30, 2019 , as renewal was determined to not be reasonably assured. The depreciable life of assets and leasehold improvements are limited by the expected lease term. One of our leases includes variable lease payment based on an index rate, which is included in the lease liability using the index rate as of the lease commencement date. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Additionally, because we elected the practical expedient to not separate non-lease and lease components and instead account for them as a single lease component, our operating leases costs include variable lease costs associated with common area maintenance, insurance and real estate taxes. We sublease certain real estate to third parties. Our subleases are primarily attributable to our headquarters office space in Waltham, Massachusetts. There are no variable lease payments or options to extend the subleases, nor do they contain any material residual value guarantees or material restrictive covenants. As most of our leases do not provide an implicit rate, we used our incremental borrowing rate based on the information available at the adoption or commencement date, in determining the present value of lease payments. The table below summarizes our lease costs as well as sublease income for the three and nine months ended September 30, 2019 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Lease Costs Statement of Operations Classification Operating lease costs (1) General and administrative $ 1,002 2,819 Variable lease costs - operating leases General and administrative 165 738 Sublease income General and administrative (179 ) (534 ) Total lease costs $ 988 $ 3,023 (1) Operating lease costs include short-term leases, which are immaterial. The table below summarizes the maturity of our lease liabilities as of September 30, 2019 (in thousands): Year Operating Leases 2019 remaining $ 1,758 2020 $ 7,138 2021 $ 7,160 2022 $ 6,601 2023 $ 6,239 Thereafter $ 5,741 Total lease payments $ 34,637 Less: Discount to lease payments (4,431 ) Present value of lease liabilities $ 30,206 The table below summarizes the weighted-average remaining lease term (in years) and the weighted-average incremental borrowing rate (in percentages): Lease Term and Discount Rates September 30, Weighted-average remaining lease term Operating leases 4.9 Weighted-average incremental borrowing rate Operating leases 5.5 % Supplemental cash flow information related to operating leases for the nine months ended September 30, 2019 are as follows (in thousands): Nine Months Ended September 30, Cash payments of amounts included in lease liabilities Operating leases $ (4,557 ) Right of use assets obtained in exchange for new lease obligations Operating leases $ 5,854 Right of use asset impairment charge Operating leases $ 1,128 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 29, 2018 , filed on March 7, 2019 . There have been no material changes in our significant accounting policies for the nine months ended September 30, 2019 as compared to those described in our Annual Report on Form 10-K for the fiscal year ended December 29, 2018 , with the exception of the adoption of the Financial Accounting Standards Board’s (“FASB”) Accounting Standard Update (“ASU”) No. 2016-02, “Leases (Topic 842)” in the first quarter of fiscal 2019. Refer below to “Recently Issued and Adopted Accounting Pronouncements” for further information. The condensed consolidated balance sheet as of December 29, 2018 included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including notes, required by GAAP on an annual reporting basis. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods, and are not necessarily indicative of the results of operations to be anticipated for fiscal 2019 or any future period. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries, after elimination of all intercompany balances and transactions. We have prepared the accompanying financial statements in conformity with GAAP. |
Fiscal Year-End | Fiscal Year-End Prior to June 30, 2019, we operated and reported using a 52 or 53 week fiscal year ending on the Saturday in December closest and prior to December 31. Accordingly, our fiscal quarters ended on the Saturday that fell closest to the last day of the third month of each quarter. In the second quarter of fiscal 2019, our board of directors approved a resolution to change the Company’s fiscal year from a 52 or 53 week fiscal year to a calendar year. Accordingly, our current fiscal year will be extended from December 28, 2019 to December 31, 2019, with subsequent fiscal years beginning on January 1 and ending on December 31 of each year. Beginning June 30, 2019, the first day of our third quarter, our quarterly results will be for the three month periods ending March 31, June 30, September 30 and December 31. |
Subsequent Events Consideration | Subsequent Events Consideration We consider events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. |
Recently Issued and Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The guidance requires an entity to recognize a right-of-use asset and a lease liability for all of its leases with lease terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. We adopted ASU 2016-02 and its amendments in the first quarter of fiscal 2019 using the modified retrospective approach and with a cumulative effect recorded on the date of adoption of December 31, 2018, the first day of our 2019 reporting year. Prior periods were not restated accordingly. We elected the Practical Expedient Package (Accounting Standards Codification (“ASC”) 842-10-65-1) permitted under the transition guidance within the new standard, which among other things allowed us to carry forward the historical lease classification. Refer to Note 15 “Leases” for the adoption impact to our condensed consolidated balance sheet. The difference between the operating lease liabilities and operating right of use assets is associated with accrued rent payments under ASC 840 and right of use asset impairments related to restructuring activities completed prior to the adoption date associated with our ceased use of certain office space subject to operating leases. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract,” which requires that a customer in a cloud computing arrangement that is a service contract follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. ASU 2018-15 generally aligns the guidance on recognizing implementation costs incurred in a cloud computing arrangement that is a service contract with that for implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. ASU 2018-15 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted. We have elected to prospectively adopt ASU No. 2018-15. Adoption will have no day one impact on the consolidated balance sheet. In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which amends ASC 820, Fair Value Measurement. This ASU modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The guidance will be effective for us in the first quarter of fiscal 2020. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. We are currently evaluating the impact of ASU 2018-13 on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The FASB also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. The guidance will be effective for us in our annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted, and we are currently evaluating whether we will early adopt. ASU 2017-04 must be applied prospectively. We expect that ASU 2017-04 would simplify our measurement of goodwill impairment if any of our reporting units have a zero or negative carrying value, or would fail Step 1 of the impairment test following the date of adoption. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 will be effective for us in our first quarter of fiscal 2020, and earlier adoption is permitted. The modified-retrospective approach is required for adoption. We are currently evaluating the impact of ASU 2016-13 on our consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents information about our assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 29, 2018 and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands): September 30, 2019 December 29, 2018 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Money market mutual funds $ 18,473 $ — $ — $ 18,473 $ 18,148 $ — $ — $ 18,148 Certificates of deposit 36,395 — — 36,395 37,180 — — 37,180 Total assets $ 54,868 $ — $ — $ 54,868 $ 55,328 $ — $ — $ 55,328 Liabilities: Contingent acquisition consideration $ — $ — $ 1,000 $ 1,000 $ — $ — $ 1,964 $ 1,964 Total liabilities $ — $ — $ 1,000 $ 1,000 $ — $ — $ 1,964 $ 1,964 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table sets forth a summary of changes in fair value of our contingent acquisition consideration liability, which represents the recurring measurement that is classified within Level 3 of the fair value hierarchy wherein fair value is estimated using significant unobservable inputs (in thousands): September 30, 2019 Contingent Acquisition Consideration Beginning balance - December 29, 2018 $ 1,964 Change in fair value of contingent consideration 669 Payment of contingent consideration liability (1,633 ) Ending balance - September 30, 2019 $ 1,000 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenue disaggregated by major service lines for the three and nine months ended September 30, 2019 and September 29, 2018 (in thousands). Three Months Ended Nine Months Ended September 30, 2019 September 29, 2018 September 30, 2019 September 29, 2018 Business-to-Consumer Matching Solutions $ 37,478 $ 36,814 $ 109,868 $ 103,965 Payment Solutions 6,530 6,058 21,923 20,488 Business-to-Business Care Work Solutions 6,875 4,367 18,937 12,468 Recruiting and Marketing Solutions and other 2,402 1,921 6,871 5,530 Total revenue $ 53,285 $ 49,160 $ 157,599 $ 142,451 The following table presents our revenue disaggregated by timing of transfer of services for the three and nine months ended September 30, 2019 and September 29, 2018 (in thousands). Three Months Ended Nine Months Ended September 30, 2019 September 29, 2018 September 30, 2019 September 29, 2018 Point-in-time $ 4,696 $ 4,205 $ 16,016 $ 13,314 Over-time 48,589 44,955 141,583 129,137 Total revenue $ 53,285 $ 49,160 $ 157,599 $ 142,451 |
Schedule of Amortized Commission Expense | For the three and nine months ended September 30, 2019 and September 29, 2018 , amortized commission expense was (in thousands): Three Months Ended Nine Months Ended September 30, September 29, September 30, September 29, Amortized commission expense $ 96 $ 22 $ 295 $ 61 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the change in goodwill for the periods presented (in thousands): Balance as of December 29, 2018 $ 68,176 Effect of currency translation (855 ) Business acquisition 5,325 Goodwill impairment (5,325 ) Balance as of September 30, 2019 $ 67,321 |
Schedule of Finite-Lived Intangible Assets | The following table presents the detail of intangible assets for the periods presented (dollars in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted-Average Remaining Life (Years) September 30, 2019 Indefinite lived intangibles $ 260 $ — $ 260 N/A Trademarks and trade names 4,714 (4,488 ) 226 5.3 Proprietary software 7,787 (5,665 ) 2,122 3.7 Internal software 227 (184 ) 43 1.1 Caregiver relationships 1,104 (731 ) 373 1.4 Customer relationships 8,509 (8,284 ) 225 3.3 Total $ 22,601 $ (19,352 ) $ 3,249 December 29, 2018 Indefinite lived intangibles $ 260 $ — $ 260 N/A Trademarks and trade names 4,742 (4,441 ) 301 5.3 Proprietary software 7,869 (5,316 ) 2,553 4.5 Internal software 227 (141 ) 86 1.7 Leasehold interests 170 (163 ) 7 0.4 Caregiver relationships 1,116 (538 ) 578 2.1 Customer relationships 8,541 (8,265 ) 276 4.0 Total $ 22,925 $ (18,864 ) $ 4,061 |
Schedule of Indefinite-Lived Intangible Assets | The following table presents the detail of intangible assets for the periods presented (dollars in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted-Average Remaining Life (Years) September 30, 2019 Indefinite lived intangibles $ 260 $ — $ 260 N/A Trademarks and trade names 4,714 (4,488 ) 226 5.3 Proprietary software 7,787 (5,665 ) 2,122 3.7 Internal software 227 (184 ) 43 1.1 Caregiver relationships 1,104 (731 ) 373 1.4 Customer relationships 8,509 (8,284 ) 225 3.3 Total $ 22,601 $ (19,352 ) $ 3,249 December 29, 2018 Indefinite lived intangibles $ 260 $ — $ 260 N/A Trademarks and trade names 4,742 (4,441 ) 301 5.3 Proprietary software 7,869 (5,316 ) 2,553 4.5 Internal software 227 (141 ) 86 1.7 Leasehold interests 170 (163 ) 7 0.4 Caregiver relationships 1,116 (538 ) 578 2.1 Customer relationships 8,541 (8,265 ) 276 4.0 Total $ 22,925 $ (18,864 ) $ 4,061 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of September 30, 2019 , the estimated future amortization expense related to intangible assets for future fiscal years was as follows (in thousands): 2019 remaining 258 2020 984 2021 712 2022 679 2023 313 Thereafter 43 Total $ 2,989 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Summary of Stock-based Compensation in Accompanying Consolidated Statements of Operations | The following table summarizes stock-based compensation in our accompanying condensed consolidated statements of operations (in thousands). During the nine months ended September 30, 2019, we recorded an additional $3.9 million of stock compensation associated with the wind down of our Figure 8 business in research and development expense on the accompanying condensed consolidated statements of operations. Please refer to Note 5 for further information. Three Months Ended Nine Months Ended September 30, 2019 September 29, 2018 September 30, 2019 September 29, 2018 Cost of revenue $ 136 $ 87 $ 346 $ 219 Selling and marketing 639 631 1,911 1,827 Research and development 503 1,105 7,063 3,134 General and administrative 1,229 2,458 4,523 7,801 Total stock-based compensation $ 2,507 $ 4,281 $ 13,843 $ 12,981 |
Summary of Stock Option and RSU Activity | A summary of stock option, RSU and PSU activity for the nine months ended September 30, 2019 was as follows (in thousands for shares and intrinsic value): Restricted Stock Units Shares Weighted-Average Remaining Contractual Term (Years) Weighted-Average Exercise Price Aggregate Intrinsic Value Shares Weighted-Average Grant Date Fair Value Outstanding as of December 29, 2018 3,524 5.84 $ 9.13 $ 37,477 2,123 $ 15.40 Granted (1) — $ — 1,599 $ 17.19 Settled (RSUs and PSUs) — (718 ) $ 16.10 Exercised (298 ) $ 5.84 Canceled and forfeited (162 ) $ 13.72 (768 ) $ 17.72 Outstanding as of September 30, 2019 3,064 5.01 $ 9.21 $ 9,285 2,236 $ 15.66 Vested and exercisable as of September 30, 2019 2,557 4.53 $ 8.59 $ 8,818 N/A N/A ____________________________ (1) For RSUs, includes time-based and performance-based |
Schedule of Stock by Class | As of September 30, 2019 , we had reserved the following shares of common stock for future issuance in connection with the following (in thousands): September 30, 2019 Options issued and outstanding 3,064 Restricted stock units issued and outstanding 2,236 Common stock available for stock-based award grants under incentive award plans 3,373 Common stock available for conversion of Series A Redeemable Convertible Preferred Stock 5,257 Total 13,930 |
Net (Loss) Income per Share A_2
Net (Loss) Income per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculations of basic and diluted net (loss) income per share and basic and diluted weighted-average shares outstanding for the three and nine months ended September 30, 2019 and September 29, 2018 were as follows (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, 2019 September 29, 2018 September 30, 2019 September 29, 2018 Numerator: Basic: Net (loss) income attributable to common stockholders $ (3,009 ) $ 979 $ (70,261 ) $ 1,996 Diluted: Net (loss) income attributable to common stockholders $ (3,009 ) $ 979 $ (70,261 ) $ 1,996 Plus: undistributed earnings allocated to participating securities — 873 — 2,384 Less: undistributed earnings reallocated to participating securities — (863 ) — (2,362 ) Net (loss) income attributable to common stockholders $ (3,009 ) $ 989 $ (70,261 ) $ 2,018 Denominator: Weighted-average shares outstanding - basic 32,863 31,356 32,539 30,980 Dilutive impact from: Options outstanding — 1,899 — 1,944 Restricted stock units — 625 — 709 Weighted-average shares outstanding - dilutive 32,863 33,880 32,539 33,633 Net (loss) income per share attributable to common stockholders (Basic): $ (0.09 ) $ 0.03 $ (2.16 ) $ 0.06 Net (loss) income per share attributable to common stockholders (Diluted): $ (0.09 ) $ 0.03 $ (2.16 ) $ 0.06 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following equity shares were excluded from the calculation of diluted net income per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 29, September 30, September 29, Stock options 3,064 514 3,064 746 Restricted stock units 2,236 1,046 2,236 805 Series A Redeemable Convertible Preferred Stock (as converted to common stock) 5,257 4,983 5,257 4,983 |
Preferred Stock (Tables)
Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Stock by Class | Preferred Stock consists of the following at September 30, 2019 and December 29, 2018 (in thousands, except shares): Preferred Stock Authorized Issuance Date Issued and Outstanding Liquidation Preference (as of June 29, 2023) Carrying Value Common Stock Issuable Upon Conversion (as of June 29, 2023) September 30, 2019 Series A Redeemable Convertible Preferred Stock 46,350 June 29, 2016 46,350 $ 67,424 $ 55,199 6,421,369 December 29, 2018 Series A Redeemable Convertible Preferred Stock 46,350 June 29, 2016 46,350 $ 67,424 $ 53,007 6,421,369 |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Location | The following table summarizes total revenue generated by our geographic locations (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 29, September 30, September 29, United States $ 48,505 $ 44,594 $ 143,477 $ 128,494 International 4,780 4,566 14,122 13,957 Total revenue $ 53,285 $ 49,160 $ 157,599 $ 142,451 Three Months Ended Nine Months Ended September 30, September 29, September 30, September 29, (As a percentage of revenue) United States 91 % 91 % 91 % 90 % International 9 % 9 % 9 % 10 % Total revenue 100 % 100 % 100 % 100 % |
Other (Expense) Income, net (Ta
Other (Expense) Income, net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other (Expense) Income, net | Other (expense) income, net, consisted of the following (in thousands): Three Months Ended Nine Months Ended September 30, September 29, September 30, September 29, Interest income $ 338 $ 180 $ 1,039 $ 488 Interest expense (9 ) (11 ) (26 ) (35 ) Loss on foreign exchange (551 ) (131 ) (559 ) (620 ) Other expense, net — — — (1 ) Total other (expense) income, net $ (222 ) $ 38 $ 454 $ (168 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | We had the following transactions with Alphabet Inc. and its affiliates during the three and nine months ended September 30, 2019 and September 29, 2018 (in thousands): Three Months Ended Nine Months Ended September 30, September 29, September 30, September 29, Revenue $ 937 $ 819 $ 2,759 $ 2,161 Selling and marketing expense $ 3,482 $ 2,912 $ 9,946 $ 8,565 We had the following transactions with Alphabet Inc. and its affiliates as of September 30, 2019 and December 29, 2018 (in thousands): Period Ended September 30, December 29, Accounts receivable $ 231 $ 421 Unbilled accounts receivable $ 610 $ 680 Accounts payable $ — $ 530 Accrued expense $ 1,352 $ 403 Deferred revenue $ 57 $ 1 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table summarizes the amount by which each financial statement line item was affected upon the adoption of ASC 842 as compared with the guidance that was in effect before the change (in thousands): December 29, 2018 ASC 842 Adjustment December 30, 2018 Assets Operating lease right of use assets, net — 20,832 20,832 Total assets $ 268,067 $ 20,832 $ 288,899 Liabilities, redeemable convertible preferred stock, and stockholders' equity Accrued expenses and other current liabilities * 20,463 (1,071 ) 19,392 Current operating lease liabilities — 4,268 4,268 Total current liabilities 45,603 3,197 48,800 Other non-current liabilities * 6,806 (5,818 ) 988 Non-current operating lease liabilities — 23,453 23,453 Total liabilities 52,847 20,832 73,679 Stockholders' equity Total stockholders' equity 162,213 — 162,213 Total liabilities, redeemable convertible preferred stock and stockholders' equity $ 268,067 $ 20,832 $ 288,899 * Accrued expense and other current liabilities and other non-current liabilities represents lease restructuring charges and deferred rent reflected as reductions in operating lease right of use assets, net. |
Lease, Cost | The table below summarizes our lease costs as well as sublease income for the three and nine months ended September 30, 2019 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Lease Costs Statement of Operations Classification Operating lease costs (1) General and administrative $ 1,002 2,819 Variable lease costs - operating leases General and administrative 165 738 Sublease income General and administrative (179 ) (534 ) Total lease costs $ 988 $ 3,023 (1) Operating lease costs include short-term leases, which are immaterial. |
Lessee, Operating Lease, Liability, Maturity | The table below summarizes the maturity of our lease liabilities as of September 30, 2019 (in thousands): Year Operating Leases 2019 remaining $ 1,758 2020 $ 7,138 2021 $ 7,160 2022 $ 6,601 2023 $ 6,239 Thereafter $ 5,741 Total lease payments $ 34,637 Less: Discount to lease payments (4,431 ) Present value of lease liabilities $ 30,206 |
Summary of the Weighted Average Remaining Lease Term and Discount Rate | The table below summarizes the weighted-average remaining lease term (in years) and the weighted-average incremental borrowing rate (in percentages): Lease Term and Discount Rates September 30, Weighted-average remaining lease term Operating leases 4.9 Weighted-average incremental borrowing rate Operating leases 5.5 % |
Summary of the Cash Payments Included in the Measurement of Lease Liabilities | Supplemental cash flow information related to operating leases for the nine months ended September 30, 2019 are as follows (in thousands): Nine Months Ended September 30, Cash payments of amounts included in lease liabilities Operating leases $ (4,557 ) Right of use assets obtained in exchange for new lease obligations Operating leases $ 5,854 Right of use asset impairment charge Operating leases $ 1,128 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum | |
Entity Information [Line Items] | |
Fiscal period duration | 364 days |
Maximum | |
Entity Information [Line Items] | |
Fiscal period duration | 371 days |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 29, 2018 |
Assets: | ||
Total assets | $ 54,868 | $ 55,328 |
Liabilities: | ||
Contingent acquisition consideration | 1,000 | 1,964 |
Total liabilities | 1,000 | 1,964 |
Level 1 | ||
Assets: | ||
Total assets | 54,868 | 55,328 |
Liabilities: | ||
Contingent acquisition consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Contingent acquisition consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Contingent acquisition consideration | 1,000 | 1,964 |
Total liabilities | 1,000 | 1,964 |
Money market mutual funds | ||
Assets: | ||
Cash and cash equivalents, fair value disclosure | 18,473 | 18,148 |
Money market mutual funds | Level 1 | ||
Assets: | ||
Cash and cash equivalents, fair value disclosure | 18,473 | 18,148 |
Money market mutual funds | Level 2 | ||
Assets: | ||
Cash and cash equivalents, fair value disclosure | 0 | 0 |
Money market mutual funds | Level 3 | ||
Assets: | ||
Cash and cash equivalents, fair value disclosure | 0 | 0 |
Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents, fair value disclosure | 36,395 | 37,180 |
Certificates of deposit | Level 1 | ||
Assets: | ||
Cash and cash equivalents, fair value disclosure | 36,395 | 37,180 |
Certificates of deposit | Level 2 | ||
Assets: | ||
Cash and cash equivalents, fair value disclosure | 0 | 0 |
Certificates of deposit | Level 3 | ||
Assets: | ||
Cash and cash equivalents, fair value disclosure | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 29, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Change in fair value of contingent consideration | $ 669 | $ 257 |
Fair Value, Measurements, Recurring | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 1,964 | |
Ending balance | 1,000 | |
Level 3 | Fair Value, Measurements, Recurring | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 1,964 | |
Change in fair value of contingent consideration | 669 | |
Payment of contingent consideration liability | (1,633) | |
Ending balance | $ 1,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019USD ($) | Jun. 29, 2019USD ($)ft² | Mar. 30, 2019USD ($) | Sep. 29, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($)ft² | Sep. 30, 2019USD ($) | Sep. 29, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Restructuring charges | $ (134) | $ 89 | $ 2,855 | $ 568 | ||||
Right of use asset impairment charge | 1,128 | |||||||
Loss on impairment of goodwill and intangible assets | 0 | $ 8,200 | 0 | 8,183 | 0 | |||
Goodwill impairment | $ 5,300 | 5,325 | ||||||
Headquarters Facility | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Area of real estate property ceased (in sqft) | ft² | 36,395 | 25,812 | ||||||
Restructuring charges | $ 100 | $ 300 | $ 200 | $ 100 | $ 500 | $ 600 | ||
Right of use asset impairment charge | 1,100 | |||||||
Restructuring loss associated with abandoning space | 700 | |||||||
Impairment of leasehold | 500 | $ 500 | ||||||
Proprietary software | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Loss on impairment of intangible assets | $ 2,900 | $ 2,900 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Capitalized Contract Cost [Line Items] | |
Deferred revenue, revenue recognized | $ 18.5 |
Capitalized contract cost, amortization period | 5 years |
Capitalized contract cost | $ 1.6 |
Care@Work | |
Capitalized Contract Cost [Line Items] | |
Deferred revenue, revenue recognized | $ 0.3 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | [1] | $ 53,285 | $ 49,160 | $ 157,599 | $ 142,451 |
Point-in-time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 4,696 | 4,205 | 16,016 | 13,314 | |
Over-time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 48,589 | 44,955 | 141,583 | 129,137 | |
Matching Solutions | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 37,478 | 36,814 | 109,868 | 103,965 | |
Payment Solutions | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 6,530 | 6,058 | 21,923 | 20,488 | |
Care@Work Solutions | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 6,875 | 4,367 | 18,937 | 12,468 | |
Recruiting and Marketing Solutions and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 2,402 | $ 1,921 | $ 6,871 | $ 5,530 | |
[1] | Includes related party revenue of $937 and $819 for the three months ended September 30, 2019 and September 29, 2018, respectively. Includes related party revenue of $2,759 and $2,161 for the nine months ended September 30, 2019 and September 29, 2018, respectively. (Note 14) |
Revenue - Performance Obligatio
Revenue - Performance Obligation Narrative (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1.5 |
Remaining performance obligation, expected timing of satisfaction, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 3.9 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 0.2 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue - Schedule of Amortized
Revenue - Schedule of Amortized Commission Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Amortized commission expense | $ 96 | $ 22 | $ 295 | $ 61 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) $ in Thousands | Jan. 04, 2019USD ($)earn-out_payment | Jul. 12, 2018USD ($) | May 31, 2018USD ($)earn-out_payment | Jan. 09, 2018USD ($)earn-out_payment | Sep. 30, 2019USD ($) | Sep. 29, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 29, 2018USD ($) | Dec. 29, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 67,321 | $ 67,321 | $ 68,176 | ||||||
Discrete tax benefit | $ 73 | $ 977 | $ (45,172) | $ 2,592 | |||||
Filios, Inc | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 12,600 | ||||||||
Cash consideration | $ 7,600 | ||||||||
Number of earn-out payments | earn-out_payment | 4 | ||||||||
First earn-out payment | $ 500 | ||||||||
Second earn-out payment | 1,000 | ||||||||
Third earn-out payment | 1,000 | ||||||||
Fourth earn-out payment | $ 2,500 | ||||||||
Length of earn out payment period (years) | 4 years | ||||||||
Goodwill | $ 4,500 | ||||||||
Intangible assets assumed | 3,100 | ||||||||
Goodwill, purchase accounting adjustments | $ 800 | ||||||||
Trusted Labs, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 5,600 | ||||||||
Cash consideration | 4,600 | ||||||||
First earn-out payment | 1,000 | ||||||||
Goodwill | 3,400 | ||||||||
Intangible assets assumed | 2,500 | ||||||||
Contingent consideration | 1,000 | ||||||||
Potential consideration transferred | 8,100 | ||||||||
Retention payment | 2,200 | ||||||||
Payment to settle liabilities | 300 | ||||||||
Working capital liabilities | 300 | ||||||||
Discrete tax benefit | $ 600 | ||||||||
Galore, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 300 | ||||||||
Number of earn-out payments | earn-out_payment | 2 | ||||||||
Intangible assets assumed | $ 300 | ||||||||
Town & Country Resources, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 6,000 | ||||||||
Cash consideration | $ 5,000 | ||||||||
Number of earn-out payments | earn-out_payment | 2 | ||||||||
First earn-out payment | $ 1,000 | ||||||||
Goodwill | 4,800 | ||||||||
Intangible assets assumed | 1,200 | ||||||||
Contingent consideration | 1,000 | ||||||||
Potential consideration transferred | $ 7,000 | ||||||||
Minimum | Galore, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
First earn-out payment | 300 | ||||||||
Second earn-out payment | 700 | ||||||||
Maximum | Galore, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
First earn-out payment | 500 | ||||||||
Second earn-out payment | $ 900 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Change in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 29, 2019 | Sep. 30, 2019 | |
Goodwill [Roll Forward] | ||
December 29, 2018 | $ 68,176 | |
Effect of currency translation | (855) | |
Business acquisitions | 5,325 | |
Goodwill impairment | $ (5,300) | (5,325) |
September 30, 2019 | $ 67,321 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 29, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Loss on impairment of goodwill and intangible assets | $ 0 | $ 8,200 | $ 0 | $ 8,183 | $ 0 |
Goodwill impairment | 5,300 | 5,325 | |||
Loss on accelerated earn-out payments | 4,100 | ||||
Accumulated impairment loss | 47,100 | ||||
Amortization of intangible assets | 1,100 | 700 | |||
Research and development | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accelerated stock-based compensation and loss on accelerated earn-out payments | 7,500 | ||||
General and administrative | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accelerated stock-based compensation and loss on accelerated earn-out payments | 500 | ||||
Depreciation and Amortization | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | 400 | 400 | |||
Cost of revenue | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | 700 | $ 300 | |||
Proprietary software | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Loss on impairment of intangible assets | 2,900 | 2,900 | |||
Time-Based Restricted Stock Units | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accelerated stock-based compensation | $ 3,900 | ||||
Time-Based Restricted Stock Units | Research and development | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accelerated stock-based compensation | $ 3,900 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite lived intangibles | $ 260 | $ 260 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | (19,352) | (18,864) |
Net Carrying Value | 2,989 | |
Total Gross Carrying Value | 22,601 | 22,925 |
Total Accumulated Amortization | (19,352) | (18,864) |
Total Net Carrying Value | 3,249 | 4,061 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 4,714 | 4,742 |
Accumulated Amortization | (4,488) | (4,441) |
Net Carrying Value | 226 | 301 |
Total Accumulated Amortization | $ (4,488) | $ (4,441) |
Weighted-Average Remaining Life (Years) | 5 years 4 months | 5 years 3 months |
Proprietary software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 7,787 | $ 7,869 |
Accumulated Amortization | (5,665) | (5,316) |
Net Carrying Value | 2,122 | 2,553 |
Total Accumulated Amortization | $ (5,665) | $ (5,316) |
Weighted-Average Remaining Life (Years) | 3 years 8 months | 4 years 6 months |
Internal software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 227 | $ 227 |
Accumulated Amortization | (184) | (141) |
Net Carrying Value | 43 | 86 |
Total Accumulated Amortization | $ (184) | $ (141) |
Weighted-Average Remaining Life (Years) | 1 year 1 month | 1 year 8 months |
Leasehold interests | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 170 | |
Accumulated Amortization | (163) | |
Net Carrying Value | 7 | |
Total Accumulated Amortization | $ (163) | |
Weighted-Average Remaining Life (Years) | 5 months | |
Caregiver relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 1,104 | $ 1,116 |
Accumulated Amortization | (731) | (538) |
Net Carrying Value | 373 | 578 |
Total Accumulated Amortization | $ (731) | $ (538) |
Weighted-Average Remaining Life (Years) | 1 year 5 months | 2 years 1 month |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 8,509 | $ 8,541 |
Accumulated Amortization | (8,284) | (8,265) |
Net Carrying Value | 225 | 276 |
Total Accumulated Amortization | $ (8,284) | $ (8,265) |
Weighted-Average Remaining Life (Years) | 3 years 4 months | 4 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Intangible Assets - Future Amortization (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 remaining | $ 258 |
2020 | 984 |
2021 | 712 |
2022 | 679 |
2023 | 313 |
Thereafter | 43 |
Net Carrying Value | $ 2,989 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 30, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency, loss in period | $ 4.9 |
Stockholders_ Equity - Share Ba
Stockholders’ Equity - Share Based Compensation Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 29, 2019 | Sep. 30, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price (usd per share) | $ 10.45 | |||||
Time-Based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Accelerated stock-based compensation | $ 3.9 | |||||
Restricted stock units granted (shares) | 1,300,000 | |||||
Performance-Based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units granted (shares) | 300,000 | 300,000 | ||||
Award vesting period | 2 years | 2 years | 3 years | |||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units granted (shares) | 1,599,000 | |||||
Purchase price for vested RSUs (usd per share) | $ 0.001 | |||||
Settled (RSUs) (usd per share) | $ 16.10 | |||||
Unrecognized compensation cost | $ 23.7 | |||||
Unrecognized compensation cost, period for recognition | 2 years 9 days | |||||
Restricted Stock Units and Performance-Based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Settled (RSUs) (usd per share) | $ 16.10 | $ 10.76 | ||||
Total fair value of vested RSUs | $ 11.6 | $ 6.2 | ||||
Intrinsic value of options exercised and RSUs vested | $ 14.2 | $ 19.3 | ||||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options granted (shares) | 0 | 100,000 | ||||
Weighted average exercise price (usd per share) | $ 0 | $ 17.44 | ||||
The aggregate fair value of the options vested | $ 1.7 | $ 1.9 | ||||
Unrecognized compensation cost | $ 2.2 | |||||
Unrecognized compensation cost, period for recognition | 1 year 5 months | |||||
Total shares of common stock reserved for future issuance | 13,930,000 | |||||
2014 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total shares of common stock reserved for future issuance | 3,373,000 | |||||
Research and development | Time-Based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Accelerated stock-based compensation | $ 3.9 |
Stockholders_ Equity - Summary
Stockholders’ Equity - Summary of Stock-based Compensation in Accompanying Consolidated Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 2,507 | $ 4,281 | $ 13,843 | $ 12,981 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 136 | 87 | 346 | 219 |
Selling and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 639 | 631 | 1,911 | 1,827 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 503 | 1,105 | 7,063 | 3,134 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 1,229 | $ 2,458 | $ 4,523 | $ 7,801 |
Stockholders_ Equity - Summar_2
Stockholders’ Equity - Summary of Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Employee Stock Option | |||
Stock Options, Number of Shares | |||
Outstanding as of December 29, 2018 (shares) | 3,524,000 | ||
Granted (shares) | 0 | 100,000 | |
Exercised (shares) | (298,000) | ||
Canceled and forfeited (shares) | (162,000) | ||
Outstanding as of September 30, 2019 (shares) | 3,064,000 | 3,524,000 | |
Options vested and exercisable at end of period (shares) | 2,557,000 | ||
Stock Options, Additional Disclosures | |||
Options outstanding, weighted average remaining contractual term | 5 years 5 days | 5 years 10 months 3 days | |
Options vested and exercisable at end of period, Weighted Average Remaining Contractual Term | 4 years 6 months 10 days | ||
Stock Options, Weighted-Average Exercise Price (usd per share) | |||
Outstanding at December 29, 2018 (usd per share) | $ 9.13 | ||
Granted (usd per share) | 0 | $ 17.44 | |
Exercised (usd per share) | 5.84 | ||
Canceled and forfeited (usd per share) | 13.72 | ||
Outstanding at September 30, 2019 (usd per share) | 9.21 | $ 9.13 | |
Options vested and exercisable, weighted average exercise price (usd per share) | $ 8.59 | ||
Stock Options, Aggregate Intrinsic Value | |||
Options, outstanding, aggregate intrinsic value, beginning of period | $ 37,477 | ||
Options, outstanding, aggregate intrinsic value, end of period | 9,285 | $ 37,477 | |
Options vested and exercisable at end of period, Aggregate Intrinsic Value | $ 8,818 | ||
Restricted stock units | |||
Restricted Stock Units, Number of Shares | |||
Outstanding at December 29, 2018 (shares) | 2,123,000 | ||
Granted (shares) | 1,599,000 | ||
Settled (RSUs) (shares) | (718,000) | ||
Canceled and forfeited (shares) | (768,000) | ||
Outstanding at September 30, 2019 (shares) | 2,236,000 | 2,123,000 | |
Restricted Stock Units, Weighted Average Grant Date Fair Value (usd per share) | |||
Outstanding at December 29, 2018 (usd per share) | $ 15.40 | ||
Granted (usd per share) | 17.19 | ||
Settled (RSUs) (usd per share) | 16.10 | ||
Canceled and forfeited (usd per share) | 17.72 | ||
Outstanding at September 30, 2019 (usd per share) | $ 15.66 | $ 15.40 |
Stockholders_ Equity - Shares R
Stockholders’ Equity - Shares Reserved for Issuance (Details) - shares | Sep. 30, 2019 | Dec. 29, 2018 |
Employee Stock Option | ||
Class of Stock [Line Items] | ||
Options issued and outstanding (shares) | 3,064,000 | 3,524,000 |
Common stock available for stock-based award grants under incentive award plans (shares) | 13,930,000 | |
Restricted stock units | ||
Class of Stock [Line Items] | ||
Restricted stock units issued and outstanding (shares) | 2,236,000 | 2,123,000 |
2014 Plan | ||
Class of Stock [Line Items] | ||
Common stock available for stock-based award grants under incentive award plans (shares) | 3,373,000 | |
Common Stock | ||
Class of Stock [Line Items] | ||
Common stock available for conversion of Series A Redeemable Convertible Preferred Stock (shares) | 5,257,000 |
Net (Loss) Income per Share A_3
Net (Loss) Income per Share Attributable to Common Stockholders - Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | |
Basic: | ||||
Net (loss) income attributable to common stockholders | $ (3,009) | $ 979 | $ (70,261) | $ 1,996 |
Diluted: | ||||
Net (loss) income attributable to common stockholders | (3,009) | 979 | (70,261) | 1,996 |
Plus: undistributed earnings allocated to participating securities | 0 | 873 | 0 | 2,384 |
Less: undistributed earnings reallocated to participating securities | 0 | (863) | 0 | (2,362) |
Net (loss) income attributable to common stockholders | $ (3,009) | $ 989 | $ (70,261) | $ 2,018 |
Denominator: | ||||
Weighted average number of shares outstanding, basic (shares) | 32,863 | 31,356 | 32,539 | 30,980 |
Dilutive impact from: | ||||
Weighted average number of shares outstanding, diluted (shares) | 32,863 | 33,880 | 32,539 | 33,633 |
Net income (loss) per share attributable to common stockholders, basic (in dollars per share) | $ (0.09) | $ 0.03 | $ (2.16) | $ 0.06 |
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share) | $ (0.09) | $ 0.03 | $ (2.16) | $ 0.06 |
Employee Stock Option | ||||
Dilutive impact from: | ||||
Share-based payment arrangements (shares) | 0 | 1,899 | 0 | 1,944 |
Restricted stock units | ||||
Dilutive impact from: | ||||
Share-based payment arrangements (shares) | 0 | 625 | 0 | 709 |
Net (Loss) Income per Share A_4
Net (Loss) Income per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (shares) | 3,064 | 514 | 3,064 | 746 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (shares) | 2,236 | 1,046 | 2,236 | 805 |
Series A Redeemable Convertible Preferred Stock (as converted to common stock) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (shares) | 5,257 | 4,983 | 5,257 | 4,983 |
Preferred Stock - Schedule of C
Preferred Stock - Schedule of Convertible Preferred Stock (Details) - Series A Redeemable Convertible Preferred Stock - USD ($) $ in Thousands | Jun. 29, 2023 | Sep. 30, 2019 | Dec. 29, 2018 |
Class of Stock [Line Items] | |||
Preferred Stock Authorized (shares) | 46,350 | 46,350 | |
Issued (shares) | 46,350 | 46,350 | |
Outstanding (shares) | 46,350 | 46,350 | |
Carrying Value | $ 55,199 | $ 53,007 | |
Forecast | |||
Class of Stock [Line Items] | |||
Liquidation Preference | $ 67,424 | ||
Common Stock Issuable Upon Conversion (shares) | 6,421,369 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Benefit due to valuation allowance release | $ 600 | $ 44,500 | ||
(Benefit from) provision for income taxes | $ (73) | $ (977) | $ 45,172 | $ (2,592) |
Segment and Geographical Info_3
Segment and Geographical Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Segment and Geographical Info_4
Segment and Geographical Information - Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Revenue | [1] | $ 53,285 | $ 49,160 | $ 157,599 | $ 142,451 |
United States | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 48,505 | 44,594 | 143,477 | 128,494 | |
International | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 4,780 | $ 4,566 | $ 14,122 | $ 13,957 | |
[1] | Includes related party revenue of $937 and $819 for the three months ended September 30, 2019 and September 29, 2018, respectively. Includes related party revenue of $2,759 and $2,161 for the nine months ended September 30, 2019 and September 29, 2018, respectively. (Note 14) |
Segment and Geographical Info_5
Segment and Geographical Information - Revenue by Geographic Location (Details) - Sales - Geographic Concentration Risk | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | |
Segment Reporting Information [Line Items] | ||||
Percentage of total revenue | 100.00% | 100.00% | 100.00% | 100.00% |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of total revenue | 91.00% | 91.00% | 91.00% | 90.00% |
International | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of total revenue | 9.00% | 9.00% | 9.00% | 10.00% |
Restructuring Charges and Rig_2
Restructuring Charges and Right of Use Asset Impairments - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019USD ($) | Jun. 29, 2019USD ($)ft² | Mar. 30, 2019USD ($) | Sep. 29, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($)ft² | Sep. 30, 2019USD ($) | Sep. 29, 2018USD ($) | |
Capital Leased Assets [Line Items] | ||||||||
Lease obligation | $ 988 | $ 3,023 | ||||||
Restructuring charges | (134) | $ 89 | 2,855 | $ 568 | ||||
Right of use asset impairment charge | $ 1,128 | |||||||
Headquarters Facility | ||||||||
Capital Leased Assets [Line Items] | ||||||||
Area of real estate property ceased (in sqft) | ft² | 36,395 | 25,812 | ||||||
Area of real estate property (in sqft) | ft² | 108,743 | 108,743 | ||||||
Lease obligation | $ 3,100 | |||||||
Deferred rent liability | 2,600 | |||||||
Impairment of leasehold | $ 500 | $ 500 | ||||||
Restructuring charges | $ 100 | 300 | $ 200 | $ 100 | $ 500 | $ 600 | ||
Right of use asset impairment charge | 1,100 | |||||||
Restructuring loss associated with abandoning space | $ 700 |
Other (Expense) Income, net (De
Other (Expense) Income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 338 | $ 180 | $ 1,039 | $ 488 |
Interest expense | (9) | (11) | (26) | (35) |
Loss on foreign exchange | (551) | (131) | (559) | (620) |
Other expense, net | 0 | 0 | 0 | (1) |
Total other (expense) income, net | $ (222) | $ 38 | $ 454 | $ (168) |
- Related Party Transactions (D
- Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 29, 2018 | Sep. 30, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | ||
Related Party Transaction [Line Items] | ||||||
Revenue | $ 937 | $ 819 | $ 2,759 | $ 2,161 | ||
Selling and marketing expense | 3,482 | 2,912 | 9,946 | 8,565 | ||
Accounts receivable | 231 | 231 | $ 421 | |||
Unbilled accounts receivable | [1] | 6,684 | 6,684 | 6,394 | ||
Alphabet Inc. | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue | 937 | 819 | 2,759 | 2,161 | ||
Selling and marketing expense | 3,482 | $ 2,912 | 9,946 | $ 8,565 | ||
Accounts receivable | 231 | 231 | 421 | |||
Unbilled accounts receivable | 610 | 610 | 680 | |||
Accounts payable | 0 | 0 | 530 | |||
Accrued expense | 1,352 | 1,352 | 403 | |||
Deferred revenue | $ 57 | $ 57 | $ 1 | |||
[1] | Includes unbilled accounts receivable due from related party of $610 and $680 at September 30, 2019 and December 29, 2018, respectively. (Note 14) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 30, 2018 | Dec. 29, 2018 |
Lessee, Lease, Description [Line Items] | |||
Operating lease right of use assets, net | $ 23,525 | $ 20,832 | $ 0 |
Current operating lease liabilities | 5,587 | 4,268 | 0 |
Non-current operating lease liabilities | $ 24,619 | 23,453 | $ 0 |
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right of use assets, net | 20,832 | ||
Current operating lease liabilities | 4,268 | ||
Non-current operating lease liabilities | $ 23,453 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessor, operating lease, renewal term (years) | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessor, operating lease, renewal term (years) | 10 years |
Leases - Effect of ASC 842 on t
Leases - Effect of ASC 842 on the Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | ||
Assets | |||||||||||
Operating lease right of use assets, net | $ 23,525 | $ 20,832 | $ 0 | ||||||||
Total assets | 250,681 | 288,899 | 268,067 | ||||||||
Current liabilities: | |||||||||||
Accrued expenses and other current liabilities | 25,176 | [1] | 19,392 | 20,463 | [1] | ||||||
Current operating lease liabilities | 5,587 | 4,268 | 0 | ||||||||
Total current liabilities | 58,499 | 48,800 | 45,603 | ||||||||
Other non-current liabilities | 3,568 | 988 | 6,806 | ||||||||
Non-current operating lease liabilities | 24,619 | 23,453 | 0 | ||||||||
Total liabilities | 88,521 | 73,679 | 52,847 | ||||||||
Stockholders' equity | |||||||||||
Total stockholders' equity | 106,961 | $ 107,922 | $ 165,522 | 162,213 | 162,213 | $ 109,404 | $ 102,423 | $ 96,776 | $ 89,461 | ||
Total liabilities, redeemable convertible preferred stock and stockholders' equity | $ 250,681 | 288,899 | $ 268,067 | ||||||||
Accounting Standards Update 2016-02 | |||||||||||
Assets | |||||||||||
Operating lease right of use assets, net | 20,832 | ||||||||||
Total assets | 20,832 | ||||||||||
Current liabilities: | |||||||||||
Accrued expenses and other current liabilities | (1,071) | ||||||||||
Current operating lease liabilities | 4,268 | ||||||||||
Total current liabilities | 3,197 | ||||||||||
Other non-current liabilities | (5,818) | ||||||||||
Non-current operating lease liabilities | 23,453 | ||||||||||
Total liabilities | 20,832 | ||||||||||
Stockholders' equity | |||||||||||
Total stockholders' equity | 0 | ||||||||||
Total liabilities, redeemable convertible preferred stock and stockholders' equity | $ 20,832 | ||||||||||
[1] | Includes accrued expenses and other current liabilities due to related party of $1,352 and $403 at September 30, 2019 and December 29, 2018, respectively. (Note 14) |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 1,002 | $ 2,819 |
Variable lease costs - operating leases | 165 | 738 |
Sublease income | (179) | (534) |
Total lease costs | $ 988 | $ 3,023 |
Leases - Maturity of Operating
Leases - Maturity of Operating Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 remaining | $ 1,758 |
2020 | 7,138 |
2021 | 7,160 |
2022 | 6,601 |
2023 | 6,239 |
Thereafter | 5,741 |
Total lease payments | 34,637 |
Less: Discount to lease payments | (4,431) |
Present value of lease liabilities | $ 30,206 |
Leases - Summary of the Weighte
Leases - Summary of the Weighted Average Remaining Lease Term and Discount Rate (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term (years) | 4 years 11 months |
Operating lease, weighted average incremental borrowing rate, percent | 5.50% |
Leases - Summary of the Cash Pa
Leases - Summary of the Cash Payments Included in the Measurement of Lease Liabilities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash payments of amounts included in lease liabilities, operating leases | $ (4,557) |
Right of use assets obtained in exchange for new operating lease obligations | 5,854 |
Right of use asset impairment charge | $ 1,128 |
Uncategorized Items - crcm-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 133,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 133,000 |