Stockholders' Equity Note Disclosure [Text Block] | 9. Stockholders’ Equity Preferred Stock In association with the Company’s initial public offering in 2013 (“IPO”), the board of directors authorized the Company to issue up to 20,000,000 shares of preferred stock, par value $0.001 per share. As of March 31, 2016 and December 31, 2015 no shares of preferred stock were outstanding. Common Stock At March 31, 2016 and December 31, 2015 there were 34,788,813 and 34,455,220 shares of common stock issued and outstanding, respectively. The following table summarizes common stock activity during the three months ended March 31, 2016: Number of Shares Outstanding at December 31, 2015 34,455,220 Option exercises 6,727 RSUs released, net of shares withheld for taxes 222,905 Common stock issued in connection with employee stock purchase plan 257,944 Repurchases of common stock (153,983 ) Outstanding at March 31, 2016 34,788,813 Treasury Stock In addition to the 153,983 shares repurchased in the three months ended March 31, 2016, the Company has 66,666 shares of treasury stock related to the acquisition of Crowd Science, for a total of 220,649 shares of treasury stock. Treasury stock is carried at cost and could be re-issued if the Company determined to do so. Equity Incentive Plans The Company’s 2004 Stock Plan (the “2004 Plan”) authorized the Company to grant restricted stock awards or stock options to employees, directors and consultants at prices not less than the fair market value at date of grant for incentive stock options and not less than 85% of fair market value for non-statutory options. Option vesting schedules were determined by the board of directors at the time of issuance and they generally vest at 25% on the first anniversary of the grant (or the employment or service commencement date) and monthly over the next 36 months. Options generally expire ten years from the date of grant unless the optionee is a 10% stockholder, in which case the term will be five years from the date of grant. Unvested options exercised are subject to the Company’s repurchase right. Upon the effective date of the registration statement related to the Company’s IPO, the 2004 Plan was amended to cease the grant of any additional awards thereunder, although the Company will continue to issue common stock upon the exercise of stock options previously granted under the 2004 Plan . In July 2013, the Company adopted a 2013 Equity Incentive Plan (the “2013 Plan”) which became effective on August 6, 2013. The 2013 Plan serves as the successor equity compensation plan to the 2004 Plan. The 2013 Plan will terminate on July 23, 2023. The 2013 Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation rights, performance stock awards, restricted stock units (“RSUs”) and stock bonus awards to employees, directors and consultants. Stock options granted must be at prices not less than 100% of the fair market value at date of grant. Option vesting schedules are determined by the Company at the time of issuance and they generally vest at 25% on the first anniversary of the grant (or the employment or service commencement date) and monthly over the next 36 months. Options generally expire ten years from the date of grant unless the optionee is a 10% stockholder, in which case the term will be five years from the date of grant. Unvested options exercised are subject to the Company’s repurchase right. The Company initially reserved 2,000,000 shares of its common stock for issuance under the 2013 Plan, and shares reserved for issuance increase January 1 of each year by the lesser of (i) 5% of the number of shares issued and outstanding on December 31 immediately prior to the date of increase or (ii) such number of shares as may be determined by the board of directors. Prior to the IPO, the fair value of the common stock underlying the Company’s stock options was determined by the Company’s board of directors, which intended all options granted to be exercisable at a price per share not less than the per-share fair value of the Company’s common stock underlying those options on the date of grant. The valuations of the Company’s common stock were determined in accordance with the guidelines outlined in the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. The assumptions the Company used in the valuation model are based on future expectations combined with management judgment. In the absence of a public trading market, the Company’s board of directors, with input from management, exercised significant judgment and considered numerous objective and subjective factors to determine the fair value of the Company’s common stock as of the date of each option grant. Subsequent to the IPO, the fair value of the common stock underlying the Company’s stock options is the closing price of the Company’s stock as of the grant date. The following table summarizes option activity: Number of Shares (in thousands) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value ( 1 ) (in thousands) Balance at December 31, 2015 4,360 $ 5.04 6.30 $ 1,480 Granted 306 $ 3.61 Exercised (7 ) $ 1.08 Canceled and forfeited (61 ) $ 5.26 Balance at March 31, 2016 4,598 $ 4.95 5.98 $ 1,624 Vested as of March 31, 2016 and expected to vest thereafter (2) 4,414 $ 4.94 5.87 $ 1,609 Vested and exercisable as of March 31, 2016 3,247 $ 4.64 5.06 $ 1,556 (1) The aggregate intrinsic value represents the difference between the Company’s estimated fair value of its common stock and the exercise price of outstanding in-the-money options as of those dates. (2) Options expected to vest reflect an estimated forfeiture rate. The weighted average grant date fair value of options granted was $1.93 and $2.99 in the three months ended March 31, 2016 and 2015, respectively. The aggregate intrinsic value represents the difference between the market value of the Company’s common stock and the exercise price of outstanding, in-the-money options. The total intrinsic value of options exercised was approximately $19,000 and $0.3 million for the three months ended March 31, 2016 and 2015, respectively. The following table summarizes restricted stock unit activity: Number of Shares (in thousands) Weighted Average Fair Value at Grant Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (1) (in thousands) Balance at December 31, 2015 1,619 $ 5.39 0.99 $ 5,681 Granted 1,674 $ 3.85 Released (282 ) $ 5.62 Canceled and forfeited (26 ) $ 5.67 Balance at March 31, 2016 2,985 $ 4.50 1.39 $ 11,164 (1) The intrinsic value of RSUs is based on the Company’s closing stock price as reported by the New York Stock Exchange on March 31, 2016 and December 31, 2015. The total grant date fair value of restricted stock units vested during the three-month periods ended March 31, 2016 and 2015 was $1.0 million and $34,000, respectively. All of the Company’s RSUs that were released during the three months ended March 31, 2016 and 2015 were net share settled. As such, upon each release date, RSUs were withheld to cover the required withholding tax, which is based on the value of the RSU on the release date as determined by the closing price of the Company’s common stock on the trading day of the settlement date. The remaining amounts are delivered to the recipient as shares of Company common stock. Modification of Employee Stock Options On January 2, 2015, the Company modified options to purchase 0.7 million shares of common stock previously granted to non-executive employees with exercise prices over $7.00 per share. The exercise price of the modified options was reduced to $5.14 per share, the closing price of the Company’s common stock on the New York Stock Exchange on January 2, 2015. No other terms of these options were modified. The Company expects to recognize an additional $0.4 million of stock-based compensation expense over the remaining vesting terms of the options as a result of the modification. As of March 31, 2016, $0.1 million of the additional stock-based compensation expense remains to be expensed. Employee Stock Purchase Plan In July 2013, the Company adopted a 2013 Employee Stock Purchase Plan (the “2013 Purchase Plan”) that became effective on August 6, 2013. The 2013 Purchase Plan is designed to enable eligible employees to periodically purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. At the end of each offering period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the last day of the offering period . Purchases are accomplished through participation in discrete offering periods. The 2013 Purchase Plan is intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code. The Company initially reserved 500,000 shares of its common stock for issuance under the 2013 Purchase Plan and shares reserved for issuance increase January 1 of each year by the lesser of (i) a number of shares equal to 1% of the total number of outstanding shares of common stock on December 31 immediately prior to the date of increase or (ii) such number of shares as may be determined by the board of directors. The expected term of ESPP shares is the average of the remaining purchase periods under each offering period. The assumptions used to value employee stock purchase rights were as follows: Three Months Ended March 31 , 2016 201 5 Expected term (years) 0.50 0.50 Volatility 56 % 56 % Risk-free interest rate 0.45 % 0.07 % Dividend yield — — Stock Repurchase Program On February 18, 2016, the Company announced its board of directors authorized a $10 million share repurchase program. The authorization has no set expiration date, but, subject to market conditions and other factors, is intended to be completed over the next twelve months. Purchases under this repurchase program are made in the open market and complied with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The cost of the repurchased shares is funded from available working capital. For accounting purposes, common stock repurchased under the Company’s stock repurchase program is recorded based upon the repurchase date of the applicable trade. Such repurchased shares are held in treasury and are presented using the cost method. Stock repurchase activity under the Company’s stock repurchase program during the three months ended March 31, 2016 is summarized as follows (in thousands, except share and per share amounts): Total Number of Shares Repurchased Average Price Paid per Share (1) Amount of Repurchase Cumulative balance at December 31, 2015 — $ — $ — Repurchases of common stock 153,983 $ 3.67 565 Cumulative balance at March 31, 2016 153,983 $ 3.67 $ 565 (1) Average price paid per share includes commission. In addition to the 153,983 shares repurchased under the repurchase program, the Company holds 66,666 shares of treasury stock related to the acquisition of Crowd Science, for a total of 220,649 shares of treasury stock. Treasury stock could be re-issued if the Company determined to do so. Shares Reserved for Future Issuance At March 31, 2016 and December 31, 2015, the Company has reserved the following shares of common stock for future issuance: March 31, 201 6 December 31, 201 5 Common stock reserved: Common stock options 4,597,905 4,360,015 Restricted stock units 2,985,055 1,618,543 Shares available for future issuance under the 2013 Plan 3,570,464 3,680,862 Employee stock purchase plan 525,918 437,934 11,679,342 10,097,354 Stock-Based Compensation The fair value of options granted to employees is estimated on the grant date using the Black-Scholes option valuation model. This valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation, including the expected term (weighted-average period of time that the options granted are expected to be outstanding), volatility of the Company’s common stock, a risk-free interest rate, expected dividends, and the estimated forfeitures of unvested stock options. To the extent actual results differ from the estimates, the difference will be recorded as a cumulative adjustment in the period estimates are revised. The Company uses the simplified calculation of expected life, and volatility is based on an average of the historical volatilities of the common stock of a group of entities with characteristics similar to those of the Company. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Expected forfeitures are based on the Company’s historical experience. The Company currently has no history or expectation of paying cash dividends on common stock. The fair value of options granted to employees is determined using the Black-Scholes option valuation model with the following assumptions: Three Months Ended March 31 , 2016 201 5 Expected term (years) 6.00 6.00 Volatility 56.0 % 56.0 % Risk-free interest rate 1.895 % 1.540 % Dividend yield — — Weighted-average fair value $ 1.93 $ 1.11 The following table summarizes the effects of stock-based compensation related to vesting stock-based awards included in the consolidated statements of operations (in thousands): Three Months Ended March 31 , 2016 2015 Cost of revenue (1) $ 45 $ 112 Sales and marketing 719 900 Research and development (2) 301 204 General and administrative 1,107 878 Total stock-based compensation $ 2,172 $ 2,094 (1) Excludes $6,000 for the three months ended March 31, 2015 that was capitalized as part of internal-use software development costs. (2) Excludes $146,000 and $126,000 of stock-based compensation expense that was capitalized as part of internal-use software development costs for the three months ended March 31, 2016 and 2015, respectively. No income tax benefit has been recognized relating to stock-based compensation expense and no tax benefits have been realized from exercised stock options during the three months ended March 31, 2016 and 2015. As of March 31, 2016, there was $13.6 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock-based awards, which will be recognized over a weighted average period of 2.24 years. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. 401(k) Plan The Company’s 401(k) Plan (the “401(k) Plan”) is a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating U.S. employees may defer a portion of their pre-tax earnings, up to the IRS annual contribution limit of $18,000 for calendar years 2016 and 2015. The Company began matching employee contributions in April 2014. The Company will match 50% of each participating employee’s contributions up to a maximum of 6% of each employee’s eligible earnings with an annual maximum match of $2,500 per employee per year. |