Financial Engines 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	FNGN
Entity Registrant Name	FINANCIAL ENGINES, INC.
Entity Central Index Key	1,430,592
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		51,501,774

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 122,527	$ 126,564
Short-term investments	204,708	179,885
Accounts receivable, net	71,814	66,001
Prepaid expenses	4,816	3,763
Deferred tax assets	12,251	7,932
Other current assets	2,913	5,445
Total current assets	419,029	389,590
Property and equipment, net	19,608	20,723
Internal use software, net	6,622	6,421
Long-term deferred tax assets	6,583	6,844
Direct response advertising, net	7,528	8,202
Other assets	2,374	3,265
Total assets	461,744	435,045
Current liabilities:
Accounts payable	24,006	21,678
Accrued compensation	12,816	10,103
Deferred revenue	7,553	5,840
Dividend payable	3,601	3,113
Other current liabilities	1,143	1,161
Total current liabilities	49,119	41,895
Long-term deferred revenue	309	427
Long-term deferred rent	9,091	8,689
Non-current tax liabilities	2,206	3,672
Other liabilities	293	151
Total liabilities	$ 61,018	$ 54,834
Contingencies (see note 9)
Stockholders’ equity:
Preferred stock, $0.0001 par value - 10,000 authorized as of December 31, 2014 and September 30, 2015; None issued or outstanding as of December 31, 2014 and September 30, 2015
Common stock, $0.0001 par value - 500,000 authorized as of December 31, 2014 and September 30, 2015; 52,224 and 52,748 shares issued and 51,944 and 51,471 shares outstanding as of December 31, 2014 and September 30, 2015, respectively	$ 5	$ 5
Additional paid-in capital	449,842	404,908
Treasury stock, at cost (280 shares and 1,277 shares as of December 31, 2014 and September 30, 2015, respectively)	(47,637)	(9,182)
Accumulated deficit	(1,484)	(15,520)
Total stockholders’ equity	400,726	380,211
Total liabilities and stockholders’ equity	$ 461,744	$ 435,045

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	52,748,000	52,224,000
Common stock, shares outstanding	51,471,000	51,944,000
Treasury stock, shares	1,277,000	280,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Professional management	$ 70,225	$ 63,226	$ 206,501	$ 181,030
Platform	7,501	8,316	23,126	24,828
Other	1,087	1,209	2,371	2,559
Total revenue	78,813	72,751	231,998	208,417
Costs and expenses:
Cost of revenue (exclusive of amortization of internal use software)	32,950	30,280	97,532	83,436
Research and development	8,753	7,460	26,537	22,392
Sales and marketing	15,526	12,907	46,248	36,607
General and administrative	6,280	5,549	19,720	16,995
Amortization of internal use software	1,223	1,574	3,680	4,709
Total costs and expenses	64,732	57,770	193,717	164,139
Income from operations	14,081	14,981	38,281	44,278
Interest income, net	119	44	263	121
Other income (expense), net		(4)	(17)	(1)
Income before income taxes	14,200	15,021	38,527	44,398
Income tax expense	5,723	6,014	13,649	17,520
Net and comprehensive income	$ 8,477	$ 9,007	$ 24,878	$ 26,878
Dividends declared per share of common stock	$ 0.07	$ 0.06	$ 0.21	$ 0.18
Net income per share attributable to holders of common stock
Basic	0.16	0.17	0.48	0.52
Diluted	$ 0.16	$ 0.17	$ 0.47	$ 0.50
Shares used to compute net income per share attributable to holders of common stock
Basic	51,655	51,811	51,586	51,481
Diluted	52,934	53,312	52,939	53,286

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 24,878	$ 26,878
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,484	3,493
Amortization of internal use software (excluding share-based compensation expense)	3,433	4,432
Stock-based compensation	19,196	14,745
Amortization of deferred sales commissions	1,217	1,173
Amortization and impairment of direct response advertising	4,132	4,631
Amortization of premium (discount) on short-term investments	(268)	(22)
Provision for doubtful accounts	733	472
Deferred tax	(5,524)	6,936
Loss (gain) on fixed asset disposal		(8)
Excess tax benefit associated with stock-based compensation	(17,946)	(10,363)
Changes in operating assets and liabilities:
Accounts receivable	(6,546)	(5,484)
Prepaid expenses	(1,053)	(926)
Direct response advertising	(3,448)	(3,301)
Other assets	2,205	(2,643)
Accounts payable	21,185	11,293
Accrued compensation	2,713	(5,845)
Deferred revenue	1,595	(316)
Deferred rent	394	2,152
Net cash provided by operating activities	51,380	47,297
Cash flows from investing activities:
Purchase of property and equipment	(4,063)	(6,137)
Sale of property and equipment		8
Capitalization of internal use software	(3,562)	(2,743)
Purchases of short-term investments	(159,555)	(134,854)
Maturities of short-term investments	135,000	90,000
Net cash used in investing activities	(32,180)	(53,726)
Cash flows from financing activities:
Payments on capital lease obligations	(86)	(77)
Excess tax benefit associated with stock-based compensation	17,946	10,363
Net share settlements for minimum tax withholdings	(616)	(135)
Repurchase of common stock	(38,455)
Proceeds from issuance of common stock	8,328	10,028
Cash dividend payments	(10,354)	(8,713)
Net cash provided by (used in) financing activities	(23,237)	11,466
Net increase (decrease) in cash and cash equivalents	(4,037)	5,037
Cash and cash equivalents, beginning of period	126,564	126,003
Cash and cash equivalents, end of period	122,527	131,040
Supplemental cash flows information:
Income taxes paid, net of refunds	1,325	232
Interest paid	9	9
Non-cash operating, investing and financing activities:
Purchase of property and equipment under capital lease	216	169
Unpaid purchases of property and equipment	207	2,954
Capitalized stock-based compensation for internal use software	319	210
Capitalized stock-based compensation for direct response advertising	78	78
Dividends declared but not yet paid	$ 3,601	$ 3,112

Organization and Description of

Organization and Description of the Business	9 Months Ended
	Sep. 30, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Description of the Business	NOTE 1 — Organization and Description of the Business The Company Financial Engines, Inc. (the Company) 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, 2015
Accounting Policies [Abstract]
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, 2014, as filed on February 20, 2015 with the SEC (the 2014 Annual Report). The Condensed Consolidated Balance Sheet as of December 31, 2014, 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, 2014 and September 30, 2015, the Company’s Statements of Income for the three and nine months ended September 30, 2014 and 2015 and the Company’s Statements of Cash Flows for the nine months ended September 30, 2014 and 2015. The results for the nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. 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 income taxes, stock-based compensation, direct response advertising, revenue recognition, and 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 they 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 On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This new standard may also impact how the Company accounts for certain direct costs associated with its revenues. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard would become effective for the Company on January 1, 2018 and early adoption would be permitted on January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

Cash and Cash Equivalents

Cash and Cash Equivalents	9 Months Ended
	Sep. 30, 2015
Cash And Cash Equivalents [Abstract]
Cash and Cash Equivalents	NOTE 3 — Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Cash equivalents are comprised of cash held primarily in money market accounts. Cash and cash equivalents consist of the following: December 31, September 30, 2014 2015 (In thousands) Cash $ 35,636 $ 26,224 Money market fund 90,928 96,303 Total cash and cash equivalents $ 126,564 $ 122,527

Short-Term Investments

Short-Term Investments	9 Months Ended
	Sep. 30, 2015
Investments Debt And Equity Securities [Abstract]
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. U.S. Treasury securities are classified as short-term investments and held-to-maturity. A reconciliation of amortized cost and fair value of short-term investments is as follows: December 31, September 30, 2014 2015 (In thousands) U.S. Treasury Securities: Amortized cost $ 179,885 $ 204,708 Gross unrecognized gains 12 148 Gross unrecognized losses (28 ) — Fair value $ 179,869 $ 204,856

Concentration of Credit Risk an

Concentration of Credit Risk and Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
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 on a recurring basis, which approximates their carrying value due to the short period of time to maturity, and reports its short-term 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, 2015. The U.S. Treasury securities have maturity dates through August 2016. 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, 2014 As of September 30, 2015 Total Fair Value Quoted Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) Total Value Quoted Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) (In thousands) Assets: Money Market Funds $ 90,928 $ 90,928 $ — $ — $ 96,303 $ 96,303 $ — $ — US Treasury Securities $ 179,869 $ 179,869 $ — $ — $ 204,856 $ 204,856 $ — $ — (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. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents primarily in highly-rated taxable money market funds located in the United States, in which deposits may exceed federal deposit insurance limits. The fair value of the Company’s accounts receivable and accounts payable approximates the carrying amount due to their short duration. The Company’s customers are concentrated in the United States. 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: Percentage of accounts receivable: December 2014 September 30, 2015 Empower Retirement TM(1) 13 % 10 % Aon Hewitt Financial Advisors, LLC 10 % 9 % Three Months Ended September 30, Nine Months Ended September 30, Percentage of revenue: 2014 2015 2014 2015 Empower Retirement TM(1) 11 % 9 % 11 % 9 % Aon Hewitt Financial Advisors, LLC 10 % 10 % 9 % 10 % (1) Empower Retirement TM TM

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
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 September 30, Nine Months Ended September 30, 2014 2015 2014 2015 (In thousands) Stock-based compensation: Cost of revenue $ 817 $ 1,061 $ 2,075 $ 3,192 Research and development 1,053 1,334 3,301 4,046 Sales and marketing 1,343 2,142 4,148 6,033 General and administrative 1,587 1,859 4,944 5,677 Amortization of internal use software 96 84 277 248 Total stock-based compensation $ 4,896 $ 6,480 $ 14,745 $ 19,196 On a quarterly basis, the Company updates its Black-Scholes option pricing model to reflect the anticipated dividends to be paid over the expected term of the awards. For the three months ended September 30, 2015, the Company included a dividend yield of 1.0%. Cash Dividends On October 30, 2015, the Board of Directors declared a quarterly dividend of $0.07 per share to be paid on January 6, 2016 to record-holders as of December 14, 2015. 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, 2015, the Company had a dividend payable balance of $3.6 million, which was paid to stockholders in October 2015. Stock Repurchase Program On November 5, 2014, the Board of Directors approved a stock repurchase program of up to $50.0 million of the Company’s common stock over a twelve-month period, of which $47.6 million had been utilized as of September 30, 2015. As of November 4, 2015, the stock repurchase program expired. The stock repurchase program was funded by available working capital. The repurchases were recorded as treasury stock and resulted in a reduction of stockholders’ equity. The Company repurchased shares of its common stock in the open market during the periods presented as follows: Number of Shares Average Repurchase Price Share Amount (In thousands) 2015: Third quarter 344,000 $ 32.43 $ 11,154 Second quarter 378,000 $ 42.29 $ 15,984 First quarter 275,000 $ 41.15 $ 11,317 2014: Fourth quarter 280,000 $ 32.79 $ 9,182 1,277,000 $ 47,637

Net Income Per Common Share

Net Income Per Common Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Net Income Per Common Share	NOTE 7 — Net Income Per Common Share Basic net income per common share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period less the weighted average number of common shares repurchased by the Company during the period. Diluted net income per common share is computed by giving effect to all dilutive potential common shares, including options, RSUs, and PSUs. Repurchased shares are held as treasury stock and outstanding shares used to calculate earnings per share have been reduced by the weighted number of repurchased shares. 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, 2014 2015 2014 2015 (In thousands, except per share data) Numerator (basic and diluted): Net income $ 9,007 $ 8,477 $ 26,878 $ 24,878 Denominator (basic): Net weighted average common shares outstanding 51,811 51,655 51,481 51,586 Denominator (diluted): Weighted average common shares outstanding 51,811 51,655 51,481 51,586 Dilutive stock options outstanding 1,176 845 1,500 962 Dilutive unvested restricted stock units 278 393 265 368 Dilutive unvested performance stock units 47 41 40 23 Net weighted average common shares outstanding 53,312 52,934 53,286 52,939 Net income per share attributable to holders of common stock: Basic $ 0.17 $ 0.16 $ 0.52 $ 0.48 Diluted $ 0.17 $ 0.16 $ 0.50 $ 0.47 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, 2014 2015 2014 2015 (In thousands) Stock options outstanding 859 1,378 612 1,473 Restricted stock units outstanding — — 19 — Performance stock units outstanding 6 — 2 — Total anti-dilutive common equivalent shares 865 1,378 633 1,473

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 8 — Income Taxes The Company recorded an income tax provision of $6.0 million and $5.7 million for the three months ended September 30, 2014 and 2015, respectively and an income tax provision of $17.5 million and $13.6 million for the nine months ended September 30, 2014 and 2015, respectively. The Company’s effective tax rate was 40% for both the three months ended September 30, 2014 and 2015, and was 39% and 35% for the nine months ended September 30, 2014 and 2015, respectively. The decrease in the Company’s effective tax rate for the nine months ended September 30, 2015 was due primarily to the recognition of tax benefits upon resolution of income tax uncertainties and changes in state taxes. As of December 31, 2014, 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 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 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. At December 31, 2014, the Company had net operating loss carryforwards for federal purposes of approximately $162.6 million that expire at varying dates through 2034. As of December 31, 2014, the Company had gross unrecognized tax benefits for income taxes associated with uncertain tax positions of $8.3 million. As of September 30, 2015, the Company had gross unrecognized tax benefits for income taxes associated with uncertain tax positions of $6.7 million, and does not expect this to change materially for the remainder of the year. 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, 2014 and 2015, the accrued interest and penalties were immaterial.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 9 — Commitments and Contingencies Commitments In March 2014, the Company entered into a non-cancelable operating lease for a new Boston, Massachusetts facility which included a tenant improvement allowance of approximately $2.4 million. As of December 31, 2014, there was a receivable balance associated with this allowance of $2.2 million and as of September 30, 2015 there was no balance, as all funds owed under this tenant improvement allowance were received in full by July 2015. In June 2015, the Company entered into a non-cancelable operating lease amendment for its Phoenix, Arizona facility totaling $2.6 million in future minimum payments through December 2021. The lease amendment added an additional 10,953 square feet of office space and extended the lease term to December 2021. The lease amendment includes a tenant improvement allowance of approximately $0.4 million and as of September 30, 2015, the receivable balance associated with this tenant improvement allowance was $0.1 million. The Company classifies tenant improvement allowances in its Consolidated Balance Sheets under deferred rent and in its Consolidated Statements of Cash Flows under operating activities. Contingencies The Company includes service level commitments to its customers warranting certain levels of reliability and performance. The maximum total commitments under these obligations would not have a material effect on the Company’s operating results.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	NOTE 10 – Subsequent Events Announcement of Definitive Agreement to Acquire The Mutual Fund Store On November 5, 2015, the Company signed a definitive agreement to acquire the business of The Mutual Fund Store for an aggregate purchase price of $560 million, consisting of approximately $250 million in cash and 10 million shares of the Company’s common stock. In connection with the proposed acquisition, it is currently anticipated that funds affiliated with Warburg Pincus LLC, the majority owner of The Mutual Fund Store, will own approximately 12-13% of the Company’s common stock following the closing of the acquisition. The completion of the acquisition is subject to customary closing conditions, including, but not limited to, expiration or termination of the applicable waiting period under Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other regulatory approvals. The transaction is expected to close in the first half of 2016.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
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 income taxes, stock-based compensation, direct response advertising, revenue recognition, and the useful lives of property, equipment and internal use software cost. Actual results could differ from those estimates under different assumptions or conditions.
Recent Accounting Pronouncements	Recent Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This new standard may also impact how the Company accounts for certain direct costs associated with its revenues. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard would become effective for the Company on January 1, 2018 and early adoption would be permitted on January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.
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 they 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. 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. U.S. Treasury securities are classified as short-term investments and held-to-maturity.

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	9 Months Ended
	Sep. 30, 2015
Cash And Cash Equivalents [Abstract]
Cash and Cash Equivalents	Cash and cash equivalents consist of the following: December 31, September 30, 2014 2015 (In thousands) Cash $ 35,636 $ 26,224 Money market fund 90,928 96,303 Total cash and cash equivalents $ 126,564 $ 122,527

Short-Term Investments (Tables)

Short-Term Investments (Tables)	9 Months Ended
	Sep. 30, 2015
Investments Debt And Equity Securities [Abstract]
Reconciliation Between Amortized Cost and Fair Value of Short-Term Investments	A reconciliation of amortized cost and fair value of short-term investments is as follows: December 31, September 30, 2014 2015 (In thousands) U.S. Treasury Securities: Amortized cost $ 179,885 $ 204,708 Gross unrecognized gains 12 148 Gross unrecognized losses (28 ) — Fair value $ 179,869 $ 204,856

Concentration of Credit Risk 19

Concentration of Credit Risk and Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Summary of 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, 2014 As of September 30, 2015 Total Fair Value Quoted Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) Total Value Quoted Assets (Level 1) (1) Significant Other Observable Inputs (Level 2) (2) Significant Other Unobservable Inputs (Level 3) (3) (In thousands) Assets: Money Market Funds $ 90,928 $ 90,928 $ — $ — $ 96,303 $ 96,303 $ — $ — US Treasury Securities $ 179,869 $ 179,869 $ — $ — $ 204,856 $ 204,856 $ — $ — (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.
Significant Customer Information	Significant customer information is as follows: Percentage of accounts receivable: December 2014 September 30, 2015 Empower Retirement TM(1) 13 % 10 % Aon Hewitt Financial Advisors, LLC 10 % 9 % Three Months Ended September 30, Nine Months Ended September 30, Percentage of revenue: 2014 2015 2014 2015 Empower Retirement TM(1) 11 % 9 % 11 % 9 % Aon Hewitt Financial Advisors, LLC 10 % 10 % 9 % 10 % (1) Empower Retirement TM TM

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
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 September 30, Nine Months Ended September 30, 2014 2015 2014 2015 (In thousands) Stock-based compensation: Cost of revenue $ 817 $ 1,061 $ 2,075 $ 3,192 Research and development 1,053 1,334 3,301 4,046 Sales and marketing 1,343 2,142 4,148 6,033 General and administrative 1,587 1,859 4,944 5,677 Amortization of internal use software 96 84 277 248 Total stock-based compensation $ 4,896 $ 6,480 $ 14,745 $ 19,196
Repurchases of Common Shares in Open Market	The Company repurchased shares of its common stock in the open market during the periods presented as follows: Number of Shares Average Repurchase Price Share Amount (In thousands) 2015: Third quarter 344,000 $ 32.43 $ 11,154 Second quarter 378,000 $ 42.29 $ 15,984 First quarter 275,000 $ 41.15 $ 11,317 2014: Fourth quarter 280,000 $ 32.79 $ 9,182 1,277,000 $ 47,637

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
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, 2014 2015 2014 2015 (In thousands, except per share data) Numerator (basic and diluted): Net income $ 9,007 $ 8,477 $ 26,878 $ 24,878 Denominator (basic): Net weighted average common shares outstanding 51,811 51,655 51,481 51,586 Denominator (diluted): Weighted average common shares outstanding 51,811 51,655 51,481 51,586 Dilutive stock options outstanding 1,176 845 1,500 962 Dilutive unvested restricted stock units 278 393 265 368 Dilutive unvested performance stock units 47 41 40 23 Net weighted average common shares outstanding 53,312 52,934 53,286 52,939 Net income per share attributable to holders of common stock: Basic $ 0.17 $ 0.16 $ 0.52 $ 0.48 Diluted $ 0.17 $ 0.16 $ 0.50 $ 0.47
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, 2014 2015 2014 2015 (In thousands) Stock options outstanding 859 1,378 612 1,473 Restricted stock units outstanding — — 19 — Performance stock units outstanding 6 — 2 — Total anti-dilutive common equivalent shares 865 1,378 633 1,473

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Cash And Cash Equivalents [Abstract]
Cash	$ 26,224	$ 35,636
Money market fund	96,303	90,928
Total cash and cash equivalents	$ 122,527	$ 126,564	$ 131,040	$ 126,003

Reconciliation Between Amortize

Reconciliation Between Amortized Cost and Fair Value of Short-Term Investments (Detail) - US Treasury Securities [Member] - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	$ 204,708	$ 179,885
Gross unrecognized gains	148	12
Gross unrecognized losses		(28)
Fair value	$ 204,856	$ 179,869

Financial Assets Measured at Fa

Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of financial assets measured on recurring basis		$ 96,303	$ 90,928
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of financial assets measured on recurring basis		204,856	179,869
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of financial assets measured on recurring basis	[1]	96,303	90,928
Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of financial assets measured on recurring basis	[1]	$ 204,856	$ 179,869
[1]	Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Significant Customer Informatio

Significant Customer Information (Detail) - Credit Concentration Risk [Member]		3 Months Ended		9 Months Ended		12 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Empower Retirement TM [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Percentage of significant customer	[1]			10.00%		13.00%
Empower Retirement TM [Member] | Revenue [Member]
Concentration Risk [Line Items]
Percentage of significant customer	[1]	9.00%	11.00%	9.00%	11.00%
Aon Hewitt Financial Advisors LLC [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Percentage of significant customer				9.00%		10.00%
Aon Hewitt Financial Advisors LLC [Member] | Revenue [Member]
Concentration Risk [Line Items]
Percentage of significant customer		10.00%	10.00%	10.00%	9.00%
[1]	Empower RetirementTM refers to Advised Assets Group, LLC, operating under the brand identity Empower RetirementTM, which purchased J.P. Morgan Retirement Plan Services LLC under an agreement dated April 2, 2014.

Stock-Based Compensation by Fun

Stock-Based Compensation by Functional Area (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 6,480	$ 4,896	$ 19,196	$ 14,745
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,061	817	3,192	2,075
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,334	1,053	4,046	3,301
Sales and Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	2,142	1,343	6,033	4,148
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,859	1,587	5,677	4,944
Amortization of Internal Use Software [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 84	$ 96	$ 248	$ 277

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	Oct. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Nov. 05, 2014
Stockholders Equity [Line Items]
Dividend yield rate		1.00%
Dividends declared per share of common stock		$ 0.07	$ 0.06	$ 0.21	$ 0.18
Dividend payable		$ 3,601,000	$ 3,112,000	$ 3,601,000	$ 3,112,000	$ 3,113,000
Dividends paid date		2015-10		2015-10
Share repurchase program, utilized amount		$ 47,637,000		$ 47,637,000		$ 9,182,000
Common Stock [Member] | Maximum [Member]
Stockholders Equity [Line Items]
Stock repurchase program, authorized amount							$ 50,000,000
Subsequent Event [Member]
Stockholders Equity [Line Items]
Dividends declared per share of common stock	$ 0.07
Dividends to be paid date	Jan. 6, 2016
Dividend payable record date	Dec. 14, 2015

Repurchases of Common Shares in

Repurchases of Common Shares in Open Market (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Shares	344,000	378,000	275,000	280,000	1,277,000
Average Repurchase Price Per Share	$ 32.43	$ 42.29	$ 41.15	$ 32.79
Amount	$ 11,154	$ 15,984	$ 11,317	$ 9,182	$ 47,637

Computation of Basic and Dilute

Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator (basic and diluted):
Net income	$ 8,477	$ 9,007	$ 24,878	$ 26,878
Denominator (basic):
Net weighted average common shares outstanding	51,655	51,811	51,586	51,481
Denominator (diluted):
Net weighted average common shares outstanding	51,655	51,811	51,586	51,481
Net weighted average common shares outstanding (diluted)	52,934	53,312	52,939	53,286
Net income per share attributable to holders of common stock:
Basic	$ 0.16	$ 0.17	$ 0.48	$ 0.52
Diluted	$ 0.16	$ 0.17	$ 0.47	$ 0.50
Stock Options Outstanding [Member]
Denominator (diluted):
Incremental common shares included in the diluted EPS calculation	845	1,176	962	1,500
Restricted Stock Units (RSUs) [Member]
Denominator (diluted):
Incremental common shares included in the diluted EPS calculation	393	278	368	265
Performance Stock Units [Member]
Denominator (diluted):
Incremental common shares included in the diluted EPS calculation	41	47	23	40

Anti-dilutive Common Equivalent

Anti-dilutive Common Equivalent Shares (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common equivalent shares	1,378	865	1,473	633
Stock Options Outstanding [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common equivalent shares	1,378	859	1,473	612
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common equivalent shares				19
Performance Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common equivalent shares		6		2

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Taxes [Line Items]
Income tax provision	$ 5,723	$ 6,014	$ 13,649	$ 17,520
Effective tax rate	40.00%	40.00%	35.00%	39.00%
Gross unrecognized tax benefits	$ 6,700		$ 6,700		$ 8,300
Internal Revenue Service (IRS) [Member]
Income Taxes [Line Items]
Operating loss carryforwards					$ 162,600
Net operating loss carryforwards expire through			2,034

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015USD ($)ft²	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Mar. 31, 2014USD ($)
Boston Massachusetts
Commitments and Contingencies [Line Items]
Tenant improvement allowance				$ 2,400,000
Receivable related to tenant improvement allowance	$ 0		$ 2,200,000
Phoenix Arizona
Commitments and Contingencies [Line Items]
Tenant improvement allowance	400,000
Receivable related to tenant improvement allowance	$ 100,000
New facility future minimum lease payments		$ 2,600,000
Additional square feet of office space added to lease amendment | ft²	10,953
Extension of lease term	Dec. 31, 2021
Lease expiration month and year	2021-12

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - The Mutual Fund Store [Member] shares in Millions, $ in Millions	Nov. 05, 2015USD ($)shares
Subsequent Event [Line Items]
Aggregate purchase price	$ 560
Business acquisition cash paid	$ 250
Shares issued to acquiree entity | shares	10
Warburg Pincus LLC [Member] | Minimum
Subsequent Event [Line Items]
Post acquisition ownership percentage	12.00%
Warburg Pincus LLC [Member] | Maximum [Member]
Subsequent Event [Line Items]
Post acquisition ownership percentage	13.00%