Financial Engines 10-Q 5 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 31, 2013
Document Information [Line Items]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'
Trading Symbol	'FNGN	'
Entity Registrant Name	'FINANCIAL ENGINES, INC.	'
Entity Central Index Key	'0001430592	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	50,408,883

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$141,949	$181,231
Short-term investments	90,027	'
Accounts receivable, net	55,289	44,627
Prepaid expenses	3,742	3,093
Deferred tax assets	20,282	15,293
Other current assets	3,011	3,647
Total current assets	314,300	247,891
Property and equipment, net	13,419	13,366
Internal use software, net	8,892	10,339
Long-term deferred tax assets	7,295	20,639
Direct response advertising, net	9,974	10,236
Other assets	3,524	4,362
Total assets	357,404	306,833
Current liabilities:	'	'
Accounts payable	18,274	15,008
Accrued compensation	11,546	12,279
Deferred revenue	7,765	7,831
Dividend payable	2,511	'
Other current liabilities	1,006	260
Total current liabilities	41,102	35,378
Long-term deferred revenue	789	1,166
Long-term deferred rent	5,943	6,653
Other liabilities	229	250
Total liabilities	48,063	43,447
Contingencies (see note 9)	'	'
Stockholders' equity:	'	'
Preferred stock, $0.0001 par value - 10,000 authorized as of December 31, 2012 and September 30, 2013; None issued and outstanding as of December 31, 2012 and September 30, 2013	'	'
Common stock, $0.0001 par value - 500,000 authorized as of December 31, 2012 and September 30, 2013; 47,915 and 50,290 shares issued and outstanding at December 31, 2012 and September 30, 2013, respectively	5	5
Additional paid-in capital	356,144	323,448
Accumulated deficit	-46,808	-60,067
Total stockholders' equity	309,341	263,386
Total liabilities and stockholders' equity	$357,404	$306,833

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Per Share data, unless otherwise specified
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	500,000	500,000
Common stock, shares issued	50,290	47,915
Common stock, shares outstanding	50,290	47,915

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue:	'	'	'	'
Professional management	$52,498	$39,582	$146,453	$107,639
Platform	8,484	8,253	24,987	24,764
Other	1,103	611	2,290	2,040
Total revenue	62,085	48,446	173,730	134,443
Costs and expenses:	'	'	'	'
Cost of revenue (exclusive of amortization of internal use software)	24,643	18,798	67,117	51,423
Research and development	7,260	6,496	22,527	18,716
Sales and marketing	10,429	10,440	31,692	29,160
General and administrative	5,402	3,653	15,367	11,271
Amortization of internal use software	1,633	1,558	4,993	4,560
Total costs and expenses	49,367	40,945	141,696	115,130
Income from operations	12,718	7,501	32,034	19,313
Interest income (expense)	19	-5	29	-1
Other expense, net	-10	'	-10	'
Income before income taxes	12,727	7,496	32,053	19,312
Income tax expense	4,581	2,718	11,372	7,199
Net and comprehensive income	$8,146	$4,778	$20,681	$12,113
Dividends declared per share of common stock	$0.05	'	$0.15	'
Net income per share attributable to holders of common stock	'	'	'	'
Basic	$0.16	$0.10	$0.42	$0.26
Diluted	$0.15	$0.10	$0.40	$0.24
Shares used to compute net income per share attributable to holders of common stock	'	'	'	'
Basic	49,934	46,889	49,145	46,469
Diluted	52,677	50,194	52,074	50,026

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net income	$20,681	$12,113
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	2,888	2,075
Amortization of internal use software	4,679	4,263
Stock-based compensation	10,442	7,500
Amortization of deferred sales commissions	1,432	1,464
Amortization and impairment of direct response advertising	4,491	3,695
Amortization of discount on short-term investments	1	'
Provision for doubtful accounts	298	209
Loss on fixed asset disposal	'	4
Excess tax benefit associated with stock-based compensation	-2,822	-1,446
Changes in operating assets and liabilities:	'	'
Accounts receivable	-10,959	-11,288
Prepaid expenses	-649	425
Deferred tax assets	8,354	5,470
Direct response advertising	-4,215	-5,240
Other assets	-718	-2,150
Accounts payable	6,247	6,899
Accrued compensation	-733	-2,720
Deferred revenue	-443	-1,642
Deferred rent	26	5,788
Other liabilities	3	3
Net cash provided by operating activities	39,003	25,422
Cash flows from investing activities:	'	'
Purchase of property and equipment	-3,065	-10,954
Capitalization of internal use software	-3,345	-4,131
Release of restricted cash	759	550
Purchases of short-term investments	-90,028	'
Net cash used in investing activities	-95,679	-14,535
Cash flows from financing activities:	'	'
Payments on capital lease obligations	-48	-8
Excess tax benefit associated with stock-based compensation	2,822	1,446
Proceeds from issuance of common stock, net of offering costs	19,531	9,055
Cash dividend payments	-4,911	'
Net cash provided by financing activities	17,394	10,493
Net increase (decrease) in cash and cash equivalents	-39,282	21,380
Cash and cash equivalents, beginning of period	181,231	145,002
Cash and cash equivalents, end of period	141,949	166,382
Supplemental cash flows information:	'	'
Income taxes paid, net of refunds	506	185
Interest paid	7	6
Non-cash operating, investing and financing activities:	'	'
Purchase of property and equipment under capital lease	34	223
Unpaid purchases of property and equipment	477	631
Capitalized stock-based compensation for internal use software	202	267
Capitalized stock-based compensation for direct response advertising	$54	$46

Organization_and_Description_o

Organization and Description of Business	9 Months Ended
	Sep. 30, 2013
Organization and Description of Business	'
	NOTE 1 — Organization and Description of the Business
	The Company
	Financial Engines, Inc. (the Company or Financial Engines) was incorporated on May 13, 1996 under the laws of the State of California and is headquartered in Sunnyvale, California. In February 2010, the Company was reincorporated under the laws of the State of Delaware.
	Financial Engines is a provider of independent, technology-enabled portfolio management services, investment advice and retirement income services primarily to participants in employer-sponsored defined contribution plans, such as 401(k) plans. The Company helps investors plan for retirement by offering personalized plans for saving and investing, as well as by providing assessments of retirement income needs and readiness, regardless of personal wealth or investment account size. The Company uses its proprietary advice technology platform to provide independent, personalized portfolio management, investment advice and retirement income services to millions of retirement plan participants on a cost-efficient basis.

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2013
Basis of Presentation	'
	NOTE 2 — Basis of Presentation
	Interim Financial Statements
	The accompanying condensed consolidated financial statements and notes thereto are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) 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. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as filed on February 22, 2013 with the SEC (the 2012 Annual Report). The Condensed Consolidated Balance Sheet as of December 31, 2012, included herein, was derived from the audited financial statements as of that date but does not include all disclosures including notes required by GAAP.
	The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments necessary for the fair presentation of the Company’s Balance Sheets as of December 31, 2012 and September 30, 2013, the Company’s Statements of Income for the three and nine months ended September 30, 2012 and 2013 and the Company’s Statements of Cash Flows for the nine months ended September 30, 2012 and 2013. The results for the nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the year ending December 31, 2013.
	Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income is the same as net income for all periods presented.
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Significant items subject to such estimates and assumptions include revenue recognition, income taxes, stock-based compensation, direct response advertising, the useful lives of property, equipment and internal use software cost. Actual results could differ from those estimates under different assumptions or conditions.
	Short-term Investments
	Short-term investments consist of U.S. Treasury securities. The Company classifies its short-term investments as held-to-maturity as the Company has the positive intent and ability to hold to maturity and such investments are carried at amortized cost. The Company evaluates the investments periodically for possible other-than-temporary impairment. In order to determine whether a decline in value is other-than-temporary, the Company evaluates, among other factors: the duration and extent to which the fair value has been less than the carrying value, and its intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value.
	Recent Accounting Pronouncements
	The Company does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the condensed consolidated financial statements.

Cash_and_Cash_Equivalents

Cash and Cash Equivalents	9 Months Ended
	Sep. 30, 2013
Cash and Cash Equivalents	'
	NOTE 3 — Cash and Cash Equivalents
	The Company considers all highly liquid investments purchased with an original remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents consist of the following:
		December 31,		September 30,
		2012		2013
		(In thousands)
	Cash	$	2,558	$	8,303
	Money market fund		178,673		133,646
	Total cash and cash equivalents	$	181,231	$	141,949
	As of September 30, 2013, the Company’s bank removed the collateral requirements associated with the letters of credit related to the Company’s operating facilities, resulting in $0.8 million reclassified from restricted cash to cash equivalents.

ShortTerm_Investments

Short-Term Investments	9 Months Ended
	Sep. 30, 2013
Short-Term Investments	'
	NOTE 4 — Short-Term Investments
	The Company considers all investments purchased with an original remaining maturity of between three and twelve months at the date of purchase to be short-term investments. The U.S. Treasury securities are classified as held-to-maturity. A reconciliation between amortized cost and fair value of short-term investments is as follows:
		September 30,
		2013
		(In thousands)
	U.S. Treasury Securities:
	Amortized cost	$	90,027
	Gross unrecognized gains		23
	Gross unrecognized losses		—
	Fair Value	$	90,050

Concentration_of_Credit_Risk_a

Concentration of Credit Risk and Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2013
Concentration of Credit Risk and Fair Value of Financial Instruments	'
	NOTE 5 — Concentration of Credit Risk and Fair Value of Financial Instruments
	The Company measures and reports its investments in money market funds at fair value, which approximates their carrying value due to the short period of time to maturity, and reports its investments in U.S. Treasury securities at amortized cost at each reporting period. There have been no changes in the Company’s valuation techniques during the nine months ended September 30, 2013. The Company began purchasing six-month and twelve–month U.S. Treasury securities in May 2013. The U.S. Treasury securities have maturity dates through May 2014. Both the money market funds and U.S. Treasury securities are classified as Level 1.
	The following table summarizes the Company’s financial assets measured at fair value on a recurring basis:
			As of December 31, 2012												As of September 30, 2013
			Total			Quoted Prices in			Significant			Significant			Total		Quoted Prices in		Significant		Significant
			Fair			Active Markets			Other			Other			Fair		Active Markets		Other		Other
			Value			for Identical			Observable			Unobservable			Value		for Identical		Observable		Unobservable
						Assets			Inputs			Inputs					Assets		Inputs		Inputs
						(Level 1) (1)			(Level 2) (2)			(Level 3) (3)					(Level 1) (1)		(Level 2) (2)		(Level 3) (3)
			(In thousands)
	Assets:
	Money Market Funds (4)		$	179,433		$	179,433		$	—		$	—		$	133,646	$	133,646	$	—	$	—
	US Treasury Securities		$	—		$	—		$	—		$	—		$	90,050	$	90,050	$	—	$	—
	-1	Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
	-2	Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
	-3	Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.
	-4	Included in the December 31, 2012 money market fund balance is $0.8 million of long-term restricted cash, which is classified in other assets in the accompanying Condensed Consolidated Balance Sheet, and was being held in a money market account pledged as collateral for letters of credit issued in connection with certain operating lease contracts. As of September 30, 2013, the Company’s bank removed the collateral requirements associated with letters of credit related to the Company’s operating facilities.
	Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents, short-term investments and trade accounts receivable. The Company deposits its cash and cash equivalents primarily with a major bank, where deposits may exceed federal deposit insurance limits.
	The Company’s customers are concentrated in the United States of America. The Company performs ongoing credit evaluations of its customers and does not require collateral. The Company reviews the need for allowances for potential credit losses and such losses have been insignificant to date.
	Significant customer information is as follows:
			December 31,			September 30,
			2012			2013
	Percentage of accounts receivable:
	JPMorgan			15	%		16	%
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2012			2013			2012			2013
	Percentage of revenue:
	JPMorgan			13	%		12	%		13	%		12	%

Stockholders_Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity	'
	NOTE 6 — Stockholders’ Equity
	Stock-based Compensation
	The following table summarizes the stock-based compensation, as included in the Condensed Consolidated Statements of Income, by functional area:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2012		2013		2012		2013
		(In thousands)
	Stock-based compensation:
	Cost of revenue	$	330	$	445	$	896	$	1,081
	Research and development		542		977		1,624		2,381
	Sales and marketing		657		1,039		1,941		2,563
	General and administrative		887		1,672		2,742		4,103
	Amortization of internal use software		102		99		297		314
	Total stock-based compensation	$	2,518	$	4,232	$	7,500	$	10,442
	For the three months ended September 30, 2013, the Company included a dividend yield of 0.3% in their Black-Scholes option pricing model to reflect the anticipated dividends to be paid over the expected term of the awards.
	Cash Dividends
	Prior to fiscal 2013, the Company did not declare or pay any cash dividends on its common stock. In February 2013, May 2013, July 2013 and October 2013, the Board of Directors declared quarterly cash dividends in the amount of $0.05 per share of common stock outstanding. While the Company currently expects to pay comparable cash dividends on a quarterly basis in the future, any future determination with respect to the declaration and payment of dividends will be at the discretion of the Board of Directors. As of September 30, 2013, the Company had a dividend payable balance of $2.5 million, which was paid to stockholders in October 2013.
	2009 Stock Incentive Plan
	In February 2013, the Board of Directors amended and restated the Amended and Restated 2009 Stock Incentive Plan (the Updated Stock Incentive Plan) and approved the 2013-2017 Long-Term Incentive Program (the LTIP) thereunder. The Updated Stock Incentive Plan was subsequently approved by stockholders in May 2013. Under the LTIP, the Company may grant performance stock unit (PSU) awards based on objective performance criteria pre-established by the Compensation Committee of the Board of Directors. In March 2013, the Compensation Committee granted PSUs under the LTIP to certain executives, which had a fair value of $43.59 per share in May 2013. Assuming 100% achievement against the objective performance criteria and no cancellations, the Company would issue 414,300 PSUs over the term of this LTIP. Further details on the Updated Stock Incentive Plan and the LTIP are presented in the Proxy Statement filed on April 1, 2013. The Company recognizes non-cash stock-based compensation expense under the graded-vesting attribution method. Each PSU award consists of two vesting cliffs, with sixty percent eligible to vest on December 31, 2015 and forty percent eligible to vest on December 31, 2017. The expense associated with each vesting cliff will be straight-lined over its respective period beginning in May 2013, which will result in greater amounts of non-cash stock-based compensation expense recognized in earlier periods of the grants with declining amounts recognized in later periods. Depending on performance against the target metrics, vesting will be between 0% and 140% of target value for each of the vesting cliffs and the expense will be reviewed and adjusted based on forecasts at the end of each balance sheet period. Assuming 100% achievement against the objective performance criteria, the total expense value of these PSUs would be approximately $13.2 million as of the grant date, net of estimated forfeitures.
	Upon vesting, PSUs are settled in common stock on a one-for-one basis. The Company intends to withhold shares upon vesting that would otherwise be distributed to the employee having a fair market value equal to the amount necessary to satisfy minimum tax withholding obligations, which the Company will remit from operational cash.

Net_Income_Per_Common_Share

Net Income Per Common Share	9 Months Ended
	Sep. 30, 2013
Net Income Per Common Share	'
	NOTE 7 — Net Income Per Common Share
	Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by giving effect to all potential dilutive common shares, including options, awards, restricted stock units and performance stock units.
	The following table sets forth the computation of basic and diluted net income per share:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2012		2013		2012		2013
		(In thousands, except per share data)
	Numerator (basic and diluted):
	Net income	$	4,778	$	8,146	$	12,113	$	20,681
	Denominator (basic):
	Weighted average common shares outstanding		46,889		49,934		46,469		49,145
	Denominator (diluted):
	Net weighted average common shares outstanding		46,889		49,934		46,469		49,145
	Dilutive stock options outstanding		3,188		2,470		3,477		2,705
	Dilutive unvested restricted stock units		117		273		80		224
	Net weighted average common shares outstanding		50,194		52,677		50,026		52,074
	Net income per share:
	Basic	$	0.1	$	0.16	$	0.26	$	0.42
	Diluted	$	0.1	$	0.15	$	0.24	$	0.4
	Diluted net income per share does not include the effect of the following anti-dilutive common equivalent shares:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2012		2013		2012		2013
		(In thousands)
	Stock options outstanding		1,231		175		1,112		325
	Restricted stock units outstanding		—		—		—		11
	Performance stock units outstanding		—		102		—		47
	Total anti-dilutive shares outstanding		1,231		277		1,112		383

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2013
Income Taxes	'
	NOTE 8 — Income Taxes
	The Company recorded an income tax provision of $2.7 million and $4.6 million for the three months ended September 30, 2012 and 2013, respectively, and an income tax provision of $7.2 million and $11.4 million for the nine months ended September 30, 2012 and 2013, respectively. The Company’s effective tax rate was 37% and 35% for the nine months ended September 30, 2012 and 2013, respectively. The decrease in the Company’s effective tax rate was due primarily to the reinstatement of the federal research and development credit as well as an increase in disqualifying stock dispositions during the nine months ended September 30, 2013.
	As of December 31, 2012, the Company continues to believe that sufficient positive evidence exists from historical operations and future projections to conclude that it is more likely than not to fully realize its federal deferred tax assets and to partially realize its State of California deferred tax assets in future periods. The Company continuously evaluates additional facts representing positive and negative evidence in the determination of the realizability of the deferred tax assets. The Company continues to apply a valuation allowance on certain deferred tax assets in the amount of $1.4 million as of December 31, 2012 relating to net operating losses for the State of California as it is not more likely than not that the Company will be able to realize these assets prior to their expiration.
	The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions. All tax years since inception are open due to loss carryforwards and may be subject to examination in one or more jurisdictions. The Company has undergone a federal tax examination for fiscal years 2006 and 2007 and the results did not have a material impact on its financial condition and results of operations. As of September 30, 2013, there are no on-going tax audits in any significant tax jurisdictions.
	At December 31, 2012, the Company had net operating loss carryforwards for federal purposes of approximately $151.8 million that expire at varying dates through 2031. As of December 31, 2012 and September 30, 2013, the Company had gross unrecognized tax benefits for income taxes associated with uncertain tax positions of $6.7 million and $6.8 million, respectively. The balance of the gross unrecognized tax benefits is not expected to materially change in the next twelve months.
	The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. During the nine months ended September 30, 2012 and 2013, the accrued interest and penalties were immaterial.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies	'
	NOTE 9 — Commitments and Contingencies
	Commitments
	In August 2013, the Company entered into an operating lease amendment for their Phoenix facility totaling $3.4 million in future minimum payments through January 2020. The Company has a right of first refusal with respect to any available space located on the 2nd floor of the building. The new operating lease contract included a tenant improvement allowance of approximately $0.9 million, which had not been drawn upon as of September 30, 2013.
	Contingencies
	The Company includes service level commitments to its customers warranting certain levels of reliability and performance. To date, the Company has not incurred any material costs as a result of such commitments and has not accrued any liabilities related to such obligations.

Basis_of_Presentation_Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2013
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Significant items subject to such estimates and assumptions include revenue recognition, income taxes, stock-based compensation, direct response advertising, the useful lives of property, equipment and internal use software cost. Actual results could differ from those estimates under different assumptions or conditions.
Short-Term Investments	'
	Short-term Investments
	Short-term investments consist of U.S. Treasury securities. The Company classifies its short-term investments as held-to-maturity as the Company has the positive intent and ability to hold to maturity and such investments are carried at amortized cost. The Company evaluates the investments periodically for possible other-than-temporary impairment. In order to determine whether a decline in value is other-than-temporary, the Company evaluates, among other factors: the duration and extent to which the fair value has been less than the carrying value, and its intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	The Company does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the condensed consolidated financial statements.

Cash_and_Cash_Equivalents_Tabl

Cash and Cash Equivalents (Tables)	9 Months Ended
	Sep. 30, 2013
Cash and Cash Equivalents	'
	Cash and cash equivalents consist of the following:
		December 31,		September 30,
		2012		2013
		(In thousands)
	Cash	$	2,558	$	8,303
	Money market fund		178,673		133,646
	Total cash and cash equivalents	$	181,231	$	141,949

ShortTerm_Investments_Tables

Short-Term Investments (Tables)	9 Months Ended
	Sep. 30, 2013
Reconciliation Between Amortized Cost and Fair Value of Short-Term Investment	'
	A reconciliation between amortized cost and fair value of short-term investments is as follows:
		September 30,
		2013
		(In thousands)
	U.S. Treasury Securities:
	Amortized cost	$	90,027
	Gross unrecognized gains		23
	Gross unrecognized losses		—
	Fair Value	$	90,050

Concentration_of_Credit_Risk_a1

Concentration of Credit Risk and Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2013
Financial Assets Measured at Fair Value on Recurring Basis	'
	The following table summarizes the Company’s financial assets measured at fair value on a recurring basis:
			As of December 31, 2012												As of September 30, 2013
			Total			Quoted Prices in			Significant			Significant			Total		Quoted Prices in		Significant		Significant
			Fair			Active Markets			Other			Other			Fair		Active Markets		Other		Other
			Value			for Identical			Observable			Unobservable			Value		for Identical		Observable		Unobservable
						Assets			Inputs			Inputs					Assets		Inputs		Inputs
						(Level 1) (1)			(Level 2) (2)			(Level 3) (3)					(Level 1) (1)		(Level 2) (2)		(Level 3) (3)
			(In thousands)
	Assets:
	Money Market Funds (4)		$	179,433		$	179,433		$	—		$	—		$	133,646	$	133,646	$	—	$	—
	US Treasury Securities		$	—		$	—		$	—		$	—		$	90,050	$	90,050	$	—	$	—
	-1	Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
	-2	Level 2: Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
	-3	Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.
	-4	Included in the December 31, 2012 money market fund balance is $0.8 million of long-term restricted cash, which is classified in other assets in the accompanying Condensed Consolidated Balance Sheet, and was being held in a money market account pledged as collateral for letters of credit issued in connection with certain operating lease contracts. As of September 30, 2013, the Company’s bank removed the collateral requirements associated with letters of credit related to the Company’s operating facilities.
Significant Customer Information	'
	Significant customer information is as follows:
			December 31,			September 30,
			2012			2013
	Percentage of accounts receivable:
	JPMorgan			15	%		16	%
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2012			2013			2012			2013
	Percentage of revenue:
	JPMorgan			13	%		12	%		13	%		12	%

Stockholders_Equity_Tables

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2013
Schedule of Share-Based Compensation by Functional Area	'
	The following table summarizes the stock-based compensation, as included in the Condensed Consolidated Statements of Income, by functional area:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2012		2013		2012		2013
		(In thousands)
	Stock-based compensation:
	Cost of revenue	$	330	$	445	$	896	$	1,081
	Research and development		542		977		1,624		2,381
	Sales and marketing		657		1,039		1,941		2,563
	General and administrative		887		1,672		2,742		4,103
	Amortization of internal use software		102		99		297		314
	Total stock-based compensation	$	2,518	$	4,232	$	7,500	$	10,442

Net_Income_Per_Common_Share_Ta

Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2013
Computation of Basic and Diluted Net Income Per Share	'
	The following table sets forth the computation of basic and diluted net income per share:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2012		2013		2012		2013
		(In thousands, except per share data)
	Numerator (basic and diluted):
	Net income	$	4,778	$	8,146	$	12,113	$	20,681
	Denominator (basic):
	Weighted average common shares outstanding		46,889		49,934		46,469		49,145
	Denominator (diluted):
	Net weighted average common shares outstanding		46,889		49,934		46,469		49,145
	Dilutive stock options outstanding		3,188		2,470		3,477		2,705
	Dilutive unvested restricted stock units		117		273		80		224
	Net weighted average common shares outstanding		50,194		52,677		50,026		52,074
	Net income per share:
	Basic	$	0.1	$	0.16	$	0.26	$	0.42
	Diluted	$	0.1	$	0.15	$	0.24	$	0.4
Anti-dilutive Common Equivalent Shares	'
	Diluted net income per share does not include the effect of the following anti-dilutive common equivalent shares:
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2012		2013		2012		2013
		(In thousands)
	Stock options outstanding		1,231		175		1,112		325
	Restricted stock units outstanding		—		—		—		11
	Performance stock units outstanding		—		102		—		47
	Total anti-dilutive shares outstanding		1,231		277		1,112		383

Cash_and_Cash_Equivalents_Deta

Cash and Cash Equivalents (Detail) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
In Thousands, unless otherwise specified
Cash and Cash Equivalents [Line Items]	'	'	'	'
Cash	$8,303	$2,558	'	'
Money market fund	133,646	178,673	'	'
Total cash and cash equivalents	$141,949	$181,231	$166,382	$145,002

Cash_and_Cash_Equivalents_Addi

Cash and Cash Equivalents - Additional Information (Detail) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Restricted Cash and Cash Equivalents Items [Line Items]	'	'
Reclassification of restricted cash	$759	$550
Standby Letters of Credit	'	'
Restricted Cash and Cash Equivalents Items [Line Items]	'	'
Reclassification of restricted cash	$759	'

Reconciliation_Between_Amortiz

Reconciliation Between Amortized Cost and Fair Value of Short-Term Investments (Detail) (US Treasury Securities, USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
US Treasury Securities	'
Schedule of Held-to-maturity Securities [Line Items]	'
Amortized cost	$90,027
Gross unrecognized gains	23
Gross unrecognized losses	'
Fair Value	$90,050

Financial_Assets_Measured_at_F

Financial Assets Measured at Fair Value on Recurring Basis (Detail) (USD $)	Sep. 30, 2013		Dec. 31, 2012
In Thousands, unless otherwise specified
Money Market Funds	'		'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'		'
Fair value of financial assets measured on recurring basis	$133,646	[1]	$179,433	[1]
US Treasury Securities	'		'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'		'
Fair value of financial assets measured on recurring basis	90,050		'
Fair Value, Inputs, Level 1 | Money Market Funds	'		'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'		'
Fair value of financial assets measured on recurring basis	133,646	[1],[2]	179,433	[1],[2]
Fair Value, Inputs, Level 1 | US Treasury Securities	'		'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'		'
Fair value of financial assets measured on recurring basis	$90,050	[2]	'
[1]	Included in the December 31, 2012 money market fund balance is $0.8 million of long-term restricted cash, which is classified in other assets in the accompanying Condensed Consolidated Balance Sheet, and was being held in a money market account pledged as collateral for letters of credit issued in connection with certain operating lease contracts. As of September 30, 2013, the Company's bank removed the collateral requirements associated with letters of credit related to the Company's operating facilities.
[2]	Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Financial_Assets_Measured_at_F1

Financial Assets Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) (Letters of Credit, Other Assets, USD $)	Dec. 31, 2012
In Thousands, unless otherwise specified
Letters of Credit | Other Assets	'
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]	'
Restricted cash being held in a money market account pledged as collateral	$759

Significant_Customer_Informati

Significant Customer Information (Detail) (JPMorgan)	9 Months Ended	12 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
	Accounts Receivable	Accounts Receivable	Sales Revenue, Net	Sales Revenue, Net	Sales Revenue, Net	Sales Revenue, Net
Concentration Risk [Line Items]	'	'	'	'	'	'
Percentage of accounts receivable / revenue	16.00%	15.00%	12.00%	13.00%	12.00%	13.00%

StockBased_Compensation_by_Fun

Stock-Based Compensation by Functional Area (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock-based compensation	$4,232	$2,518	$10,442	$7,500
Cost of revenue	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock-based compensation	445	330	1,081	896
Research and development	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock-based compensation	977	542	2,381	1,624
Sales and marketing	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock-based compensation	1,039	657	2,563	1,941
General and administrative	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock-based compensation	1,672	887	4,103	2,742
Amortization of Internal Use Software	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Total stock-based compensation	$99	$102	$314	$297

Stockholders_Equity_Additional

Stockholders' Equity - Additional Information (Detail) (USD $)

3 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

1 Months Ended

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Sep. 30, 2013

Oct. 31, 2013

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

31-May-13

Mar. 31, 2013

Mar. 31, 2013

Mar. 31, 2013

Mar. 31, 2013

Subsequent Event

Performance Stock Unit

Performance Stock Unit

Performance Stock Unit

Performance Stock Unit

Performance Stock Unit

Performance Stock Unit

Performance Stock Unit

Performance Stock Unit

Installment

Minimum

Maximum

Long Term Incentive Plan

Long Term Incentive Plan

Long Term Incentive Plan

Cliff vesting on December 31, 2015

Cliff vesting on December 31, 2017

issued assuming 100% achievement against the objective performance criteria and no cancellations

Dividend yield rate

0.30%

'

'

'

'

'

'

'

'

'

'

'

'

Dividend declared per share of common stock outstanding

$0.05

$0.05

$0.05

$0.15

$0.05

'

'

'

'

'

'

'

'

Dividends declared date

'2013-07

'2013-05

'2013-02

'2013-07

'

'

'

'

'

'

'

'

'

Dividend payable

$2,511,000

'

'

$2,511,000

'

'

'

'

'

'

'

'

'

Dividends paid date

'2013-10

'

'

'2013-10

'

'

'

'

'

'

'

'

'

Fair value

'

'

'

'

'

'

'

'

$43.59

'

'

'

'

Target achievement percentage

'

'

'

'

'

100.00%

'

'

'

'

'

'

'

Number of performance stock unit awards granted

'

'

'

'

'

'

'

'

'

'

414,300

'

'

Number of vesting periods

'

'

'

'

'

2

'

'

'

'

'

'

'

PSU eligible to vest percentage

'

'

'

'

'

'

'

'

'

'

'

60.00%

40.00%

Target vesting percentage

'

'

'

'

'

'

0.00%

140.00%

'

'

'

'

'

Total expense value of PSUs

'

'

'

'

'

'

'

'

'

$13,200,000

'

'

'

Computation_of_Basic_and_Dilut

Computation of Basic and Diluted Net Income Per Share (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Numerator (basic and diluted):	'	'	'	'
Net income	$8,146	$4,778	$20,681	$12,113
Denominator (basic):	'	'	'	'
Weighted average common shares outstanding	49,934	46,889	49,145	46,469
Denominator (diluted):	'	'	'	'
Net weighted average common shares outstanding	49,934	46,889	49,145	46,469
Net weighted average common shares outstanding (diluted)	52,677	50,194	52,074	50,026
Net income per share:	'	'	'	'
Basic	$0.16	$0.10	$0.42	$0.26
Diluted	$0.15	$0.10	$0.40	$0.24
Outstanding Stock Awards	'	'	'	'
Denominator (diluted):	'	'	'	'
Incremental common shares included in the diluted EPS calculation	2,470	3,188	2,705	3,477
Restricted Stock Units (RSUs)	'	'	'	'
Denominator (diluted):	'	'	'	'
Incremental common shares included in the diluted EPS calculation	273	117	224	80

Antidilutive_Common_Equivalent

Anti-dilutive Common Equivalent Shares (Detail)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Anti-dilutive common equivalent shares	277	1,231	383	1,112
Outstanding Stock Awards	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Anti-dilutive common equivalent shares	175	1,231	325	1,112
Restricted Stock Units (RSUs)	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Anti-dilutive common equivalent shares	'	'	11	'
Performance Stock Unit	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Anti-dilutive common equivalent shares	102	'	47	'

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended					1 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2009	Dec. 31, 2009	Dec. 31, 2012
						State of California	Internal Revenue Service (IRS)	Minimum	Maximum	Maximum
										Internal Revenue Service (IRS)
Income Taxes [Line Items]	'	'	'	'	'	'	'	'	'	'
Income tax provision	$4,581,000	$2,718,000	$11,372,000	$7,199,000	'	'	'	'	'	'
Effective tax rate	'	'	35.00%	37.00%	'	'	'	'	'	'
Valuation allowance on deferred tax assets	'	'	'	'	'	1,400,000	'	'	'	'
Year under federal tax examination	'	'	'	'	'	'	'	'2006	'2007	'
Income tax examination description	'	'	'As of September 30, 2013, there are no on-going tax audits in any significant tax jurisdictions.	'	'	'	'	'	'	'
Operating loss carryforwards	'	'	'	'	'	'	151,800,000	'	'	'
Operating loss carryforwards expiration date	'	'	'	'	'	'	'	'	'	31-Dec-31
Gross unrecognized tax benefits	$6,800,000	'	$6,800,000	'	$6,700,000	'	'	'	'	'

Commitments_and_Contingencies_

Commitments and Contingencies - Additional Information (Detail) (Phoenix, USD $)	1 Months Ended
In Millions, unless otherwise specified	Aug. 31, 2013
Phoenix	'
Commitments and Contingencies [Line Items]	'
New facility future minimum lease payments	$3.40
Lease expiration date	31-Jan-20
Tenant improvement allowance	$0.90