Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 25, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | APPFOLIO INC | |
Entity Central Index Key | 1,433,195 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,021,812 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,624,442 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 10,963 | $ 12,063 |
Investment securities—current | 11,234 | 10,235 |
Accounts receivable, net | 3,045 | 2,048 |
Prepaid expenses and other current assets | 3,807 | 3,160 |
Total current assets | 29,049 | 27,506 |
Investment securities—noncurrent | 28,977 | 34,417 |
Property and equipment, net | 7,143 | 6,107 |
Capitalized software, net | 12,804 | 10,022 |
Goodwill | 6,737 | 6,737 |
Intangible assets, net | 3,808 | 4,516 |
Other assets | 1,236 | 1,176 |
Total assets | 89,754 | 90,481 |
Current liabilities | ||
Accounts payable | 1,090 | 2,369 |
Accrued employee expenses | 6,235 | 5,159 |
Accrued expenses | 3,751 | 3,340 |
Deferred revenue | 6,101 | 4,953 |
Other current liabilities | 1,631 | 1,084 |
Total current liabilities | 18,808 | 16,905 |
Other liabilities | 1,865 | 879 |
Total liabilities | 20,673 | 17,784 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 25,000 authorized and no shares issued and outstanding as of June 30, 2016 and December 31, 2015 | 0 | 0 |
Additional paid-in capital | 143,406 | 141,528 |
Accumulated other comprehensive income (loss) | 220 | (153) |
Accumulated deficit | (74,549) | (68,682) |
Total stockholders’ equity | 69,081 | 72,697 |
Total liabilities and stockholders’ equity | 89,754 | 90,481 |
Class A common stock, $0.0001 par value, 250,000 shares authorized as of June 30, 2016 and December 31, 2015; 11,018 and 9,005 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively; | ||
Stockholders’ equity: | ||
Common stock | 1 | 1 |
Class B common stock, $0.0001 par value, 50,000 shares authorized as of June 30, 2016 and December 31, 2015; 22,625 and 24,541 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively; | ||
Stockholders’ equity: | ||
Common stock | $ 3 | $ 3 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Preferred stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A common stock | ||
Common stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 11,018,000 | 9,005,000 |
Common stock, shares outstanding | 11,018,000 | 9,005,000 |
Class B common stock | ||
Common stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 22,665,000 | 24,541,000 |
Common stock, shares outstanding | 22,665,000 | 24,541,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 26,203 | $ 18,425 | $ 49,414 | $ 34,273 |
Costs and operating expenses: | ||||
Cost of revenue (exclusive of depreciation and amortization) | 11,212 | 8,109 | 21,742 | 15,174 |
Sales and marketing | 7,567 | 6,239 | 15,118 | 11,948 |
Research and product development | 3,024 | 2,154 | 6,067 | 4,163 |
General and administrative | 4,389 | 3,707 | 7,938 | 7,099 |
Depreciation and amortization | 2,359 | 1,431 | 4,476 | 2,614 |
Total costs and operating expenses | 28,551 | 21,640 | 55,341 | 40,998 |
Loss from operations | (2,348) | (3,215) | (5,927) | (6,725) |
Other income (expense), net | 2 | (5) | (22) | (7) |
Interest income (expense), net | 95 | (243) | 119 | (275) |
Loss before provision for income taxes | (2,251) | (3,463) | (5,830) | (7,007) |
Provision for (benefit from) income taxes | 13 | (63) | 37 | 11 |
Net loss | $ (2,264) | $ (3,400) | $ (5,867) | $ (7,018) |
Net loss per share, basic and diluted (usd per share) | $ (0.07) | $ (0.36) | $ (0.18) | $ (0.77) |
Weighted average common shares outstanding, basic and diluted (shares) | 33,523 | 9,328 | 33,493 | 9,122 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (2,264) | $ (3,400) | $ (5,867) | $ (7,018) |
Other comprehensive income: | ||||
Net changes in unrealized gains on investment securities | 73 | 0 | 373 | 0 |
Comprehensive loss | $ (2,191) | $ (3,400) | $ (5,494) | $ (7,018) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - 6 months ended Jun. 30, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common StockClass A common stock | Common StockClass B common stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
Beginning balance at Dec. 31, 2015 | $ 72,697 | $ 1 | $ 3 | $ 141,528 | $ (153) | $ (68,682) |
Beginning balance (shares) at Dec. 31, 2015 | 9,005 | 24,541 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options | 153 | 153 | ||||
Exercise of stock options (shares) | 74 | 1 | ||||
Stock-based compensation | 1,614 | 1,614 | ||||
Vesting of early exercised shares | 111 | 111 | ||||
Conversion of convertible preferred stock in connection with initial public offering | 0 | $ 0 | 0 | |||
Issuance of restricted stock (shares) | 22 | |||||
Issuance of restricted stock | 0 | $ 0 | 0 | |||
Conversion of convertible preferred stock in connection with our public offering (shares) | 1,917 | (1,917) | ||||
Unrealized loss on investment securities | 373 | 373 | ||||
Net loss | (5,867) | |||||
Ending balance at Jun. 30, 2016 | $ 69,081 | $ 1 | $ 3 | $ 143,406 | $ 220 | $ (74,549) |
Ending balance (shares) at Jun. 30, 2016 | 11,018 | 22,625 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash from operating activities | ||
Net loss | $ (5,867) | $ (7,018) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 4,476 | 2,614 |
Purchased investment premium, net of amortization | 95 | 0 |
Amortization of deferred financing costs | 32 | 31 |
Loss on disposal of property and equipment | 32 | 13 |
Noncash interest expense | 0 | 223 |
Stock-based compensation | 1,555 | 345 |
Lease abandonment | 60 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (996) | (1,222) |
Prepaid expenses and other current assets | (647) | (608) |
Other assets | (92) | (83) |
Accounts payable | (571) | 883 |
Accrued employee expenses | 906 | 1,064 |
Accrued expenses | 751 | 560 |
Deferred revenue | 1,148 | 475 |
Other liabilities | 1,495 | (84) |
Net cash provided by (used in) operating activities | 2,377 | (2,807) |
Cash from investing activities | ||
Purchases of property and equipment | (3,161) | (1,510) |
Additions to capitalized software | (5,159) | (3,155) |
Purchases of investment securities | (16,685) | 0 |
Sales and calls of investment securities | 19,074 | 0 |
Maturities of investment securities | 2,330 | 0 |
Cash paid in business acquisition, net of cash acquired | 0 | (4,039) |
Purchases of intangible assets | 0 | (11) |
Net cash used in investing activities | (3,601) | (8,715) |
Cash from financing activities | ||
Proceeds from stock option exercises | 153 | 318 |
Proceeds from issuance of restricted stock | 0 | 141 |
Proceeds from issuance of options | 0 | 208 |
Principal payments under capital lease obligations | (15) | (15) |
Proceeds from the initial public offering, net of underwriting discounts and commissions | 0 | 69,192 |
Payments of initial public offering costs | 0 | (807) |
Payment of contingent consideration | 0 | (2,429) |
Proceeds from issuance of debt | 57 | 10,000 |
Principal payments on debt | (71) | (42) |
Payment of debt issuance costs | 0 | (532) |
Net cash provided by financing activities | 124 | 76,034 |
Net (decrease) increase in cash and cash equivalents | (1,100) | 64,512 |
Cash and cash equivalents | ||
Beginning of period | 12,063 | 5,412 |
End of period | 10,963 | 69,924 |
Noncash investing and financing activities | ||
Purchases of property and equipment included in accounts payable and accrued expenses | 172 | 120 |
Additions of capitalized software included in accrued employee expenses | 459 | 240 |
Stock-based compensation capitalized for software development | 177 | 67 |
Debt issuance and other financing costs accrued, not paid | 0 | 13 |
Initial public offering costs included in accrued expenses | 0 | 3,317 |
Conversion of convertible preferred stock into common stock in connection with the initial public offering | $ 0 | $ 63,166 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Overview AppFolio, Inc. (“we” or “AppFolio”) provides industry-specific, cloud-based software solutions for small and medium-sized businesses (“SMBs”) in the property management and legal industries. Our platform is designed to be the system of record to automate essential business processes and the system of engagement to enhance business interactions between our customers and their clients and vendors. Our mobile-optimized software solutions have a user-friendly interface across multiple devices, enabling our customers to work at any time and from anywhere. Our property management software provides small and medium-sized property managers with an end-to-end solution to their business needs, enabling them to manage properties quickly and easily in a single, integrated environment. Our legal software provides solo practitioners and small law firms with a streamlined practice and case management solution, allowing them to manage their practices and case load within a flexible system. We also offer optional, but often mission-critical, Value+ services, such as our professionally designed websites, and electronic payment services which are seamlessly built into our core solutions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Significant Accounting Policies The accompanying unaudited Condensed Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these Condensed Consolidated Financial Statements should be read in conjunction with our consolidated financial statements and the related notes included in our Annual Report filed with the SEC on February 29, 2016. Our unaudited interim Condensed Consolidated Financial Statements have been prepared on a basis consistent with that used to prepare our audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the Condensed Consolidated Financial Statements. The operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results expected for the full year ending December 31, 2016 . Changes in Accounting Policies Except as described below, there have been no significant changes in our accounting policies from those disclosed in our annual consolidated financial statements and the related notes included in our Annual Report. Stock-Based Compensation During the three and six months ended June 30, 2016, we granted performance based stock options (" PSOs") and performance based restricted stock units ("PSUs"). For additional information regarding the PSOs and PSUs granted refer to Note 7, Stock-Based Compensation . 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 and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. On an ongoing basis, management evaluates its estimates based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Net Loss per Share The following table presents a reconciliation of our weighted average number of Class A and Class B common shares used to compute net loss per share (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Weighted average shares outstanding 33,610 9,474 33,591 9,278 Less: Weighted average unvested restricted shares subject to repurchase 87 146 98 156 Weighted average number of shares used to compute basic and diluted net loss per share 33,523 9,328 33,493 9,122 Because we reported net losses for all periods presented, all potentially dilutive common stock equivalents are anti-dilutive for those periods and have been excluded from the calculation of net loss per share. The following table presents the number of anti-dilutive Class A and Class B common shares excluded from the calculation of diluted net loss per share as of June 30, 2016 and 2015 (in thousands): June 30, 2016 2015 Options to purchase common stock 1,824 1,141 Unvested restricted stock awards 76 158 Unvested restricted stock units 475 — Contingent restricted stock units (1) 49 — Total shares excluded from net loss per share attributable to common stockholders 2,424 1,299 (1) The reported shares are based on 49,000 shares with a fixed price restricted stock unit (“RSU”) commitment for which the number of shares has not been determined at the grant date. The 49,000 shares included in the table above are based on the closing price of our stock at June 30, 2016 divided by the fixed price commitment to issue shares in the future. For additional information regarding the RSUs granted refer to Note 7, Stock-Based Compensation . The diluted net loss per common share was the same for our Class A and Class B common shares because they are entitled to the same liquidation and dividend rights. Recent Accounting Pronouncements Under the Jumpstart our Business Startups Act (the “JOBS Act”), we meet the definition of an emerging growth company. We have irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), 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. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. ASU 2014-09 is effective on January 1, 2018. Early adoption is permitted as of January 1, 2017. The standard permits the use of either a retrospective or cumulative effect transition method. We have not determined which transition method we will adopt, nor have we determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. We will adopt this guidance beginning with its first quarter ending March 31, 2019. We have not determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting of Revenue Gross versus Net) ("ASU 2016-08"), which provides additional guidance to improve the operability and understandability of the implementation guidance on principal versus agent considerations and provides additional illustrative examples to assist with the application of the guidance. The amendment does not change the core principles in Topic 606. ASU 2016-08 is effective on January 1, 2018 with the adoption of ASU 2014-09. Early adoption is permitted as of January 1, 2017. We have not determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 781), Improvements to Employee Share-Based Payment Accounting ("ASU 2106-09"), which amends and simplifies the accounting for share-based payment awards in three areas; (1) income tax consequences, (2) classification of awards as either equity or liabilities, and (3) classification on the statement of cash flows. For public companies, ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period. We have not determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. In April 2016, the FASB issued ASU No. 2016-10, "Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing ("ASU 2016-10"), which provides additional guidance on identifying performance obligations and also to improve the operability and understandability of the licensing implementation guidance. The amendment does not change the core principles in Topic 606. ASU 2016-10 is effective on January 1, 2018 with the adoption of ASU 2014-09. Early adoption is permitted as of January 1, 2017. We have not determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. In May 2016, the FASB issued ASU No. 2016-12, "Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients ("ASU 2016-12"), which clarifies the collectibility criterion and transition guidance for contracts for which substantially all revenue was recognized under legacy accounting guidance. The amendment does not change the core principles in Topic 606. ASU 2016-12 is effective on January 1, 2018 with the adoption of ASU 2014-09. Early adoption is permitted as of January 1, 2017. We have not determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. In June 2016, he FASB issued ASU No. 2016-13, " Financial Instruments -Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which amends the current accounting guidance and requires all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for available-for-sale securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period after December 15, 2018. We have not determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. |
Investment Securities and Fair
Investment Securities and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Investment Securities and Fair Value Measurements | Investment Securities and Fair Value Measurements Investment Securities Investment securities classified as available-for-sale consist of the following at June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate bonds $ 31,766 $ 188 $ (1 ) $ 31,953 Agency securities 2,000 — — 2,000 Certificates of deposit 6,225 33 — 6,258 Total available-for-sale investment securities $ 39,991 $ 221 $ (1 ) $ 40,211 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate bonds $ 30,568 $ — $ (126 ) $ 30,442 Agency securities 8,012 — (12 ) 8,000 Certificates of deposit 6,225 — (15 ) 6,210 Total available-for-sale investment securities $ 44,805 $ — $ (153 ) $ 44,652 We had certain investment securities in an unrealized loss position at June 30, 2016 and December 31, 2015, and we have held these securities for less than twelve months. These unrealized loss positions are considered temporary and there were no impairments considered "other-than-temporary" as it is more likely than not we will hold the securities until maturity or a recovery of the cost basis. At June 30, 2016 and December 31, 2015 , the contractual maturities of our investments did not exceed 36 months . The fair values of available-for-sale investments, by remaining contractual maturity, are as follows (in thousands): June 30, 2016 December 31, 2015 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in 1 year or less $ 11,228 $ 11,234 $ 10,249 $ 10,235 Due after 1 year through 3 years 28,763 28,977 34,557 34,417 Total available-for-sale investment securities $ 39,991 $ 40,211 $ 44,806 $ 44,652 During the six months ended June 30, 2016 , we had sales, calls and maturities of investment securities, as follows (in thousands): Six months ended June 30, 2016 Gross Realized Gains Gross Realized Losses Gross Proceeds from Sales and Calls Gross Proceeds from Maturities Corporate bonds $ 1 $ — $ 5,011 $ — Agency securities 5 — 9,063 1,500 Treasury bills — — 5,000 830 $ 6 $ — $ 19,074 $ 2,330 Fair Value Measurements Recurring Fair Value Measurements The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 by level within the fair value hierarchy. Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement (in thousands): June 30, 2016 Level 1 Level 2 Level 3 Total Fair Cash equivalents: Money market funds $ 143 $ — $ — $ 143 Available-for-sale - investment securities: Corporate bonds — 31,953 — 31,953 Agency securities — 2,000 — 2,000 Certificates of deposit 6,258 — — 6,258 Total Assets $ 6,401 $ 33,953 $ — $ 40,354 December 31, 2015 Level 1 Level 2 Level 3 Total Fair Cash equivalents: Money market funds $ 7,102 $ — $ — $ 7,102 Available-for-sale - investment securities: Corporate bonds — 30,442 — 30,442 Agency securities — 8,000 — 8,000 Certificates of deposit 6,210 — — 6,210 Total Assets $ 13,312 $ 38,442 $ — $ 51,754 The carrying amounts of cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate fair value because of the short maturity of these items. There were no changes to our valuation techniques used to measure asset and liability fair values on a recurring basis during the six months ended June 30, 2016 . The valuation techniques for the items in the table, above are as follows: Cash and Cash Equivalents As of June 30, 2016 and December 31, 2015 , cash and cash equivalents include cash invested in money market funds. Market prices are based on market prices for identical assets. Available-for-Sale - Investment Securities The fair value of our investment securities is based on pricing determined using inputs other than quoted prices that are observable either directly or indirectly such as yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. Contingent Consideration Contingent consideration payable in connection with acquisitions is measured at fair value each period and is based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions we believe would be made by a market participant. We assessed these estimates on an on-going basis as additional data impacting the assumptions became available. Changes in the fair value of contingent consideration related to updated assumptions and estimates were recognized within general and administrative expense in the condensed consolidated statements of operations. We determined the fair value of the contingent consideration using the probability weighted discounted cash flow method. The significant inputs used in the fair value measurement of contingent consideration were the probability of achieving revenue thresholds and determining discount rates. The following table summarizes the changes in contingent consideration liability (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Fair value, at beginning of period $ — $ 2,429 $ — $ 2,429 Payment of contingent consideration — (2,429 ) — (2,429 ) Fair value, at end of period $ — $ — $ — $ — The contingent consideration liability was recorded in other current liabilities in the consolidated balance sheets as of December 31, 2014. On May 6, 2015, we paid the final earn-out payment in the amount of $2.4 million . Non-Recurring Fair Value Measurements Certain assets, including goodwill, intangible assets and our note receivable with SecureDocs are also subject to measurement at fair value on a non-recurring basis using Level 3 measurement when they are deemed to be impaired as a result of an impairment review. For the three and six months ended June 30, 2016 and 2015, no impairments were identified on those assets required to be measured at fair value on a non-recurring basis. |
Internal-Use Software Developme
Internal-Use Software Development Costs | 6 Months Ended |
Jun. 30, 2016 | |
Research and Development [Abstract] | |
Internal-Use Software Development Costs | Internal-Use Software Development Costs Internal-use software development costs were as follows (in thousands): June 30, December 31, Internal use software development costs, gross $ 27,283 $ 21,894 Less: Accumulated amortization (14,479 ) (11,872 ) Internal use software development costs, net $ 12,804 $ 10,022 Capitalized software development costs were $3.0 million and $1.9 million for the three months ended June 30, 2016 and 2015 , respectively and were $5.4 million and $3.3 million for the six months ended June 30, 2016 and 2015 , respectively. Amortization expense with respect to software development costs totaled $1.4 million and $0.8 million for the three months ended June 30, 2016 and 2015 , respectively and $2.7 million and $1.4 million for the six months ended June 30, 2016 and 2015 , respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of the following as of June 30, 2016 and December 31, 2015 (in thousands, except years): June 30, 2016 Gross Carrying Accumulated Net Carrying Weighted Customer relationships $ 790 $ (313 ) $ 477 5.0 Technology 4,811 (2,669 ) 2,142 6.0 Trademarks 930 (354 ) 576 9.0 Partner relationships 680 (283 ) 397 3.0 Non-compete agreements 40 (17 ) 23 3.0 Domain names 274 (221 ) 53 5.0 Patents 282 (142 ) 140 5.0 $ 7,807 $ (3,999 ) $ 3,808 5.9 December 31, 2015 Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted Average Useful Life in Years Customer relationships $ 790 $ (234 ) $ 556 5.0 Technology 4,811 (2,268 ) 2,543 6.0 Trademarks 930 (293 ) 637 9.0 Partner relationships 680 (170 ) 510 3.0 Non-compete agreements 40 (10 ) 30 3.0 Domain names 274 (199 ) 75 5.0 Patents 286 (121 ) 165 5.0 $ 7,811 $ (3,295 ) $ 4,516 5.9 Amortization expense for the three months ended June 30, 2016 and 2015 was $0.4 million and $0.4 million , respectively and $0.7 million and $0.6 million for the six months ended June 30, 2016 and 2015 , respectively. A summary of the activity within our intangible assets since December 31, 2015 is as follows (in thousands): Intangible assets, net at December 31, 2015 $ 4,516 Disposals (4 ) Amortization (704 ) Intangible assets, net at June 30, 2016 $ 3,808 |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Obligations As of June 30, 2016 , we had operating lease obligations of approximately $9.4 million through 2022. We recorded rent expense of $0.5 million and $0.3 million for the three months ended June 30, 2016 and 2015 , respectively, and $1.0 million and $0.6 million for the six months ended June 30, 2016 and 2015 , respectively. During the six months ended June 30, 2016 , we moved into a new location in Richardson, Texas, and permanently exited the prior location which expires on December 31, 2016. We are in the process of finding a sublessee for the prior location. Due to our remaining commitment, under the terms of the prior lease agreement, and our abandonment of the facilities, we recorded a $0.1 million loss and a corresponding liability, which represents the amount of future payments that must be made under the terms of the original lease reduced by the estimated amount of rent that could be reasonably collected from a sub-lessee at current market rates. Line of Credit On October 9, 2015, we entered into Amendment Number One to our Credit Agreement with Wells Fargo, as administrative agent, and the lenders that are parties thereto (as amended, the “Credit Agreement”). Under the terms of the Credit Agreement, the lenders made available to us a $25.0 million revolving line of credit (the “Revolving Facility”). Borrowings under the Revolving Facility are subject to the satisfaction of customary conditions. The Revolving Facility matures on October 9, 2020. However, we can make payments on, and cancel in full, the Revolving Facility at any time without premium or penalty. As of June 30, 2016 , there was no outstanding balance and at December 31, 2015 there was a balance of $12,000 under the Credit Agreement. Insurance We have a wholly owned subsidiary, Terra Mar Insurance Company, Inc. (“Terra Mar”), which was established to provide our customers with the option to purchase tenant liability insurance. If our customers choose to use our insurance services, they are issued an insurance policy underwritten by our third-party service provider. The policy has a limit of $100,000 per incident for each insured residence. We have entered into a reinsurance agreement with our third-party service provider and, as a result, we assume a 100% quota share of the tenant liability insurance provided to our customers through our third-party service provider. Included in cost of revenue we accrue for reported claims and an estimate of losses incurred but not reported by our property manager customers, as we bear the risk related to these claims. Our liability for reported claims and incurred but not reported claims as of June 30, 2016 and December 31, 2015 was $0.5 million and $0.5 million , respectively, and is included in other current liabilities on the Condensed Consolidated Balance Sheets. Included in other current assets as of June 30, 2016 and December 31, 2015 are $1.1 million and $1.0 million , respectively, of deposits held with a third party related to requirements to maintain collateral for our insurance services. Litigation From time to time, we may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. We are not currently a party to any legal proceedings, nor are we aware of any pending or threatened litigation that would have a material adverse effect on our business, operating results, cash flows or financial condition should such litigation be resolved unfavorably. Indemnification In the ordinary course of business, we may provide indemnification of varying scope and terms to customers, investors, directors and officers with respect to certain matters, including, but not limited to, losses arising out of our breach of any applicable agreements, services to be provided by us, or intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments we could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments we could be required to make under these indemnification provisions is indeterminable. We have never paid a material claim, nor have we been sued in connection with these indemnification arrangements. As of June 30, 2016 and December 31, 2015 , we had not accrued a liability for these indemnification arrangements because we have determined that the likelihood of incurring a payment obligation, if any, in connection with these indemnification arrangements is not probable or reasonably possible and the amount or range of amounts of any such liability is not reasonably estimable. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Options A summary of our stock option activity for the six months ended June 30, 2016 is as follows (number of shares in thousands): Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life in Years Options outstanding as of December 31, 2015 1,171 $ 5.30 8.0 Options granted 750 12.85 Options exercised (74 ) 2.07 Options cancelled/forfeited (23 ) 8.45 Options outstanding as of June 30, 2016 1,824 $ 8.50 8.6 During the six months ended June 30, 2016 , we granted PSOs to purchase up to 750,000 shares of our Class A common stock. The PSOs have a weighted average exercise price of $12.85 per share. Vesting of the PSOs is based on our achievement of a pre-established free cash flow performance metric for the years ended December 31, 2016, 2017 and 2018 and continued employment throughout the performance period. We recognize expense for the PSOs based on the grant date fair value of the PSOs that we determine are probable of vesting. Adjustments to compensation expense are made each period based on changes in our estimate of the number of PSOs that are probable of vesting. The number of PSOs granted, as included in the above table, assumes achievement of the performance metric at the maximum level, which is 150% of the targeted performance metric. For performance at 100% of the targeted metric, approximately 67% of the PSOs would vest. For performance at 80% of the targeted metric, approximately 33% of the PSOs would vest. For performance below 80% of the 2016 and 2018 targeted metric, no PSOs would vest , no compensation expense would be recognized and all previously recognized compensation expense for PSOs would be reversed. For performance below 50% of the 2017 targeted metric, no PSOs would vest, no compensation expense would be recognized and all previously recognized compensation expense for PSOs would be reversed. Our stock-based compensation expense for stock options, including the PSOs for the three months ended June 30, 2016 and 2015 was $578,000 and $167,000 , respectively, and for the six months ended June 30, 2016 and 2015 was $865 ,000 and $269 ,000 respectively. The fair value of stock options granted is estimated on the date of grant using the Black-Scholes option-pricing model. The following table summarizes information relating to our stock options granted during the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended 2016 2015 2016 2015 Stock options granted (in thousands) 500 82 750 277 Weighted average exercise price per share $ 13.43 $ 12.00 $ 12.85 $ 7.51 Weighted average grant-date fair value per share $ 5.20 $ 5.42 $ 4.85 $ 6.77 Weighted average Black-Scholes model assumptions: Risk-free interest rate 1.53 % 1.91 % 1.45 % 1.53 % Expected term (in years) 6.1 6.0 5.9 6.2 Expected volatility 38 % 45 % 37 % 47 % Expected dividend yield — — — — As of June 30, 2016 , the total estimated remaining stock-based compensation expense for unvested stock options, including the PSOs was $4.3 million , which is expected to be recognized over a weighted average period of 2.1 years. Restricted Stock Units A summary of activity in connection with our restricted stock units for the six months ended June 30, 2016 is as follows (number of shares in thousands): Number of Shares Weighted- Average Grant Date Fair Value per Share Unvested as of December 31, 2015 17 $ 15.45 Granted 463 12.46 Vested — — Forfeited (5 ) 12.60 Unvested as of June 30, 2016 475 $ 12.56 During the six months ended June 30, 2016 , we granted 376,000 RSUs that vest annually over four years and 87,000 PSUs that vest based upon achievement of a pre-established free cash flow performance metric for the years ended December 31, 2016, 2017 and 2018 and continued employment throughout the performance period. We recognize expense for the PSUs based on the grant date fair value of the PSUs that we determine are probable of vesting. Adjustments to compensation expense are made each period based on changes in our estimate of the number of PSUs that are probable of vesting. The number of PSUs granted, as included in the above table, assumes achievement of the performance metric at 100% of the targeted performance metric. The actual number of shares to be issued at the end of the performance period will range from 0% to 150% of the initial target awards. For performance at 150% of the targeted metric, 150% of the PSUs would vest. For performance at 80% of the targeted metric, approximately 50% of the PSUs would vest. For performance below 80% of targeted metric for 2016 and 2018, no PSUs would vest and no compensation expense would be recognized and all previously recognized compensation expense for PSUs would be reversed. For performance below 50% of targeted metric for 2017, no PSUs would vest and no compensation expense would be recognized and all previously recognized compensation expense for PSUs would be reversed. Our stock-based compensation expense for the RSUs and PSUs was $527,000 and $638,000 for the three and six months ended June 30, 2016 , respectively. As of June 30, 2016 , the total remaining estimated stock-based compensation expense for the RSUs and PSUs was $5.4 million , which is expected to be recognized over a weighted average period of 3.1 years. Restricted Stock Awards A summary of activity in connection with our restricted stock awards for the six months ended June 30, 2016 is as follows (number of shares in thousands): Number of Weighted- Unvested as of December 31, 2015 120 $ 4.68 Granted 22 13.46 Vested (66 ) 6.10 Forfeited — — Unvested as of June 30, 2016 76 $ 6.00 We have the right to repurchase any unvested restricted stock awards. Restricted stock awards vest over a four -year period for employees and a one -year period for non-employee directors. We recognized stock-based compensation expense of $114,000 and $80,000 for the three months ended June 30, 2016 and 2015 , respectively, and $229 ,000 and $143,000 for the six months ended June 30, 2016 and 2015 , respectively. As of June 30, 2016 , the total remaining stock-based compensation expense for unvested restricted stock awards with a repurchasing right was $0.5 million , which is expected to be recognized over a weighted average period of 1.3 years . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate differs from the U.S. Federal statutory rate of 34% primarily because our losses have been offset by a valuation allowance due to uncertainty as to the realization of those losses. For the three and six months ended June 30, 2016 , we recorded income tax expense of $13,000 and $37,000 , respectively on pre-tax losses of $2.3 million and $5.8 million , respectively, for an effective tax rate of (0.6%) and (0.6%) , respectively. The income tax expense is based on our payments of state minimum taxes and the amortization of tax deductible goodwill that is not an available source of income to realize the deferred tax asset. For the three and six months ended June 30, 2015 , we recorded income tax (benefit) expense of $(63,000) and $11,000 respectively on pre-tax losses of $3.5 million and $7.0 million , respectively for an effective tax rate of 1.8% and (0.2%) , respectively. The income tax benefit was based on the reversal of income tax expense recorded when the statutory rate was applied to actual year-to-date earnings of our subsidiary, Terra Mar, which became part of our U.S. consolidated group for tax purposes at June 30, 2015. Terra Mar’s earnings were then offset by the losses of our U.S. consolidated group for tax purposes. The income tax expense is based on state minimum taxes and the amortization of tax deductible goodwill that is not an available source of income to realize the deferred tax asset. |
Revenue and Other Information
Revenue and Other Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Revenue and Other Information | Revenue and Other Information Our chief operating decision maker reviews separate revenue information for our core solutions, Value+ and other service offerings as a measure of growth in the number of our customers and growth in the adoption and utilization of our core solutions and Value+ services by new and existing customers. The following table presents our revenue categories for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Core solutions $ 10,572 $ 7,697 $ 20,335 $ 14,831 Value+ services 14,399 9,408 26,653 17,112 Other 1,232 1,320 2,426 2,330 Total revenues $ 26,203 $ 18,425 $ 49,414 $ 34,273 Value+ services presented above include revenue from subscriptions or usage-based fees. Subscription Value+ services include website hosting services and contact center services. Usage-based Value+ services include fees for electronic payment processing, resident screening services, tenant liability insurance program, and online vacancy advertising services based on the RentLinx software platform acquired in April 2015. Other services included above are for one-time services related to on-boarding our core solutions, website design services and online vacancy advertising services offered to legacy RentLinx customers. Our revenue is generated primarily from U.S. customers. All of our property and equipment is located in the U.S. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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 and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. On an ongoing basis, management evaluates its estimates based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Under the Jumpstart our Business Startups Act (the “JOBS Act”), we meet the definition of an emerging growth company. We have irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), 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. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. ASU 2014-09 is effective on January 1, 2018. Early adoption is permitted as of January 1, 2017. The standard permits the use of either a retrospective or cumulative effect transition method. We have not determined which transition method we will adopt, nor have we determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. We will adopt this guidance beginning with its first quarter ending March 31, 2019. We have not determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. In March 2016, the FASB issued ASU 2016-08, "Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting of Revenue Gross versus Net) ("ASU 2016-08"), which provides additional guidance to improve the operability and understandability of the implementation guidance on principal versus agent considerations and provides additional illustrative examples to assist with the application of the guidance. The amendment does not change the core principles in Topic 606. ASU 2016-08 is effective on January 1, 2018 with the adoption of ASU 2014-09. Early adoption is permitted as of January 1, 2017. We have not determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 781), Improvements to Employee Share-Based Payment Accounting ("ASU 2106-09"), which amends and simplifies the accounting for share-based payment awards in three areas; (1) income tax consequences, (2) classification of awards as either equity or liabilities, and (3) classification on the statement of cash flows. For public companies, ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period. We have not determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. In April 2016, the FASB issued ASU No. 2016-10, "Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing ("ASU 2016-10"), which provides additional guidance on identifying performance obligations and also to improve the operability and understandability of the licensing implementation guidance. The amendment does not change the core principles in Topic 606. ASU 2016-10 is effective on January 1, 2018 with the adoption of ASU 2014-09. Early adoption is permitted as of January 1, 2017. We have not determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. In May 2016, the FASB issued ASU No. 2016-12, "Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients ("ASU 2016-12"), which clarifies the collectibility criterion and transition guidance for contracts for which substantially all revenue was recognized under legacy accounting guidance. The amendment does not change the core principles in Topic 606. ASU 2016-12 is effective on January 1, 2018 with the adoption of ASU 2014-09. Early adoption is permitted as of January 1, 2017. We have not determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. In June 2016, he FASB issued ASU No. 2016-13, " Financial Instruments -Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which amends the current accounting guidance and requires all expected losses based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for available-for-sale securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period after December 15, 2018. We have not determined the effect of this guidance on our financial condition, results of operations, cash flows or disclosures. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table presents a reconciliation of our weighted average number of Class A and Class B common shares used to compute net loss per share (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Weighted average shares outstanding 33,610 9,474 33,591 9,278 Less: Weighted average unvested restricted shares subject to repurchase 87 146 98 156 Weighted average number of shares used to compute basic and diluted net loss per share 33,523 9,328 33,493 9,122 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the number of anti-dilutive Class A and Class B common shares excluded from the calculation of diluted net loss per share as of June 30, 2016 and 2015 (in thousands): June 30, 2016 2015 Options to purchase common stock 1,824 1,141 Unvested restricted stock awards 76 158 Unvested restricted stock units 475 — Contingent restricted stock units (1) 49 — Total shares excluded from net loss per share attributable to common stockholders 2,424 1,299 (1) The reported shares are based on 49,000 shares with a fixed price restricted stock unit (“RSU”) commitment for which the number of shares has not been determined at the grant date. The 49,000 shares included in the table above are based on the closing price of our stock at June 30, 2016 divided by the fixed price commitment to issue shares in the future. For additional information regarding the RSUs granted refer to Note 7, Stock-Based Compensation . |
Investment Securities and Fai19
Investment Securities and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Available-for-sale Securities | Investment securities classified as available-for-sale consist of the following at June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate bonds $ 31,766 $ 188 $ (1 ) $ 31,953 Agency securities 2,000 — — 2,000 Certificates of deposit 6,225 33 — 6,258 Total available-for-sale investment securities $ 39,991 $ 221 $ (1 ) $ 40,211 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate bonds $ 30,568 $ — $ (126 ) $ 30,442 Agency securities 8,012 — (12 ) 8,000 Certificates of deposit 6,225 — (15 ) 6,210 Total available-for-sale investment securities $ 44,805 $ — $ (153 ) $ 44,652 |
Available-for-sale Investments, by Remaining Contract Maturity | At June 30, 2016 and December 31, 2015 , the contractual maturities of our investments did not exceed 36 months . The fair values of available-for-sale investments, by remaining contractual maturity, are as follows (in thousands): June 30, 2016 December 31, 2015 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in 1 year or less $ 11,228 $ 11,234 $ 10,249 $ 10,235 Due after 1 year through 3 years 28,763 28,977 34,557 34,417 Total available-for-sale investment securities $ 39,991 $ 40,211 $ 44,806 $ 44,652 |
Schedule of Sales, Calls, and Maturities | During the six months ended June 30, 2016 , we had sales, calls and maturities of investment securities, as follows (in thousands): Six months ended June 30, 2016 Gross Realized Gains Gross Realized Losses Gross Proceeds from Sales and Calls Gross Proceeds from Maturities Corporate bonds $ 1 $ — $ 5,011 $ — Agency securities 5 — 9,063 1,500 Treasury bills — — 5,000 830 $ 6 $ — $ 19,074 $ 2,330 |
Fair Value, Assets Measured on Recurring Basis | Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement (in thousands): June 30, 2016 Level 1 Level 2 Level 3 Total Fair Cash equivalents: Money market funds $ 143 $ — $ — $ 143 Available-for-sale - investment securities: Corporate bonds — 31,953 — 31,953 Agency securities — 2,000 — 2,000 Certificates of deposit 6,258 — — 6,258 Total Assets $ 6,401 $ 33,953 $ — $ 40,354 December 31, 2015 Level 1 Level 2 Level 3 Total Fair Cash equivalents: Money market funds $ 7,102 $ — $ — $ 7,102 Available-for-sale - investment securities: Corporate bonds — 30,442 — 30,442 Agency securities — 8,000 — 8,000 Certificates of deposit 6,210 — — 6,210 Total Assets $ 13,312 $ 38,442 $ — $ 51,754 |
Schedule of Changes in Contingent Consideration Liability | The following table summarizes the changes in contingent consideration liability (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Fair value, at beginning of period $ — $ 2,429 $ — $ 2,429 Payment of contingent consideration — (2,429 ) — (2,429 ) Fair value, at end of period $ — $ — $ — $ — |
Internal-Use Software Develop20
Internal-Use Software Development Costs (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Research and Development [Abstract] | |
Schedule of Capitalized Computer Software | Internal-use software development costs were as follows (in thousands): June 30, December 31, Internal use software development costs, gross $ 27,283 $ 21,894 Less: Accumulated amortization (14,479 ) (11,872 ) Internal use software development costs, net $ 12,804 $ 10,022 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following as of June 30, 2016 and December 31, 2015 (in thousands, except years): June 30, 2016 Gross Carrying Accumulated Net Carrying Weighted Customer relationships $ 790 $ (313 ) $ 477 5.0 Technology 4,811 (2,669 ) 2,142 6.0 Trademarks 930 (354 ) 576 9.0 Partner relationships 680 (283 ) 397 3.0 Non-compete agreements 40 (17 ) 23 3.0 Domain names 274 (221 ) 53 5.0 Patents 282 (142 ) 140 5.0 $ 7,807 $ (3,999 ) $ 3,808 5.9 December 31, 2015 Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted Average Useful Life in Years Customer relationships $ 790 $ (234 ) $ 556 5.0 Technology 4,811 (2,268 ) 2,543 6.0 Trademarks 930 (293 ) 637 9.0 Partner relationships 680 (170 ) 510 3.0 Non-compete agreements 40 (10 ) 30 3.0 Domain names 274 (199 ) 75 5.0 Patents 286 (121 ) 165 5.0 $ 7,811 $ (3,295 ) $ 4,516 5.9 A summary of the activity within our intangible assets since December 31, 2015 is as follows (in thousands): Intangible assets, net at December 31, 2015 $ 4,516 Disposals (4 ) Amortization (704 ) Intangible assets, net at June 30, 2016 $ 3,808 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of our stock option activity for the six months ended June 30, 2016 is as follows (number of shares in thousands): Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life in Years Options outstanding as of December 31, 2015 1,171 $ 5.30 8.0 Options granted 750 12.85 Options exercised (74 ) 2.07 Options cancelled/forfeited (23 ) 8.45 Options outstanding as of June 30, 2016 1,824 $ 8.50 8.6 |
Schedule of Valuation Assumptions, Stock Options | The following table summarizes information relating to our stock options granted during the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended 2016 2015 2016 2015 Stock options granted (in thousands) 500 82 750 277 Weighted average exercise price per share $ 13.43 $ 12.00 $ 12.85 $ 7.51 Weighted average grant-date fair value per share $ 5.20 $ 5.42 $ 4.85 $ 6.77 Weighted average Black-Scholes model assumptions: Risk-free interest rate 1.53 % 1.91 % 1.45 % 1.53 % Expected term (in years) 6.1 6.0 5.9 6.2 Expected volatility 38 % 45 % 37 % 47 % Expected dividend yield — — — — |
Schedule of Restricted Stock Units Activity | A summary of activity in connection with our restricted stock units for the six months ended June 30, 2016 is as follows (number of shares in thousands): Number of Shares Weighted- Average Grant Date Fair Value per Share Unvested as of December 31, 2015 17 $ 15.45 Granted 463 12.46 Vested — — Forfeited (5 ) 12.60 Unvested as of June 30, 2016 475 $ 12.56 |
Schedule of Restricted Stock Awards Activity | A summary of activity in connection with our restricted stock awards for the six months ended June 30, 2016 is as follows (number of shares in thousands): Number of Weighted- Unvested as of December 31, 2015 120 $ 4.68 Granted 22 13.46 Vested (66 ) 6.10 Forfeited — — Unvested as of June 30, 2016 76 $ 6.00 |
Revenue and Other Information (
Revenue and Other Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Product Information by Revenue Categories | The following table presents our revenue categories for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Core solutions $ 10,572 $ 7,697 $ 20,335 $ 14,831 Value+ services 14,399 9,408 26,653 17,112 Other 1,232 1,320 2,426 2,330 Total revenues $ 26,203 $ 18,425 $ 49,414 $ 34,273 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Net Loss per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accounting Policies [Abstract] | ||||
Weighted average shares outstanding | 33,610,000 | 9,474,000 | 33,591,000 | 9,278,000 |
Less: Weighted average unvested restricted shares subject to repurchase | 87,000 | 146,000 | 98,000 | 156,000 |
Weighted average number of shares used to compute basic and diluted net loss per share | 33,523,000 | 9,328,000 | 33,493,000 | 9,122,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from net loss per share attributable to common stockholders | 2,424,000 | 1,299,000 | ||
Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from net loss per share attributable to common stockholders | 1,824,000 | 1,141,000 | ||
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from net loss per share attributable to common stockholders | 76,000 | 158,000 | ||
RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from net loss per share attributable to common stockholders | 475,000 | 0 | ||
Contingent RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from net loss per share attributable to common stockholders | 49,000 | 0 | ||
Fixed Price RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from net loss per share attributable to common stockholders | 49,000 |
Investment Securities and Fai25
Investment Securities and Fair Value Measurements - Investment Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Amortized Cost | $ 39,991 | $ 44,805 |
Gross Unrealized Gains | 221 | 0 |
Gross Unrealized Losses | (1) | (153) |
Estimated Fair Value | $ 40,211 | 44,652 |
Maximum contractual maturity period | 36 months | |
Amortized Cost | ||
Due in 1 year or less | $ 11,228 | 10,249 |
Due after 1 year through 3 years | 28,763 | 34,557 |
Total available-for-sale investment securities | 39,991 | 44,806 |
Estimated Fair Value | ||
Due in 1 year or less | 11,234 | 10,235 |
Due after 1 year through 3 years | 28,977 | 34,417 |
Total available-for-sale investment securities | 40,211 | 44,652 |
Corporate bonds | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Amortized Cost | 31,766 | 30,568 |
Gross Unrealized Gains | 188 | 0 |
Gross Unrealized Losses | (1) | (126) |
Estimated Fair Value | 31,953 | 30,442 |
Agency securities | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Amortized Cost | 2,000 | 8,012 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (12) |
Estimated Fair Value | 2,000 | 8,000 |
Certificates of Deposit | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Amortized Cost | 6,225 | 6,225 |
Gross Unrealized Gains | 33 | 0 |
Gross Unrealized Losses | 0 | (15) |
Estimated Fair Value | $ 6,258 | $ 6,210 |
Investment Securities and Fai26
Investment Securities and Fair Value Measurements - Sales, Calls and Maturities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Realized Gains | $ 6 | |
Gross Realized Losses | 0 | |
Gross Proceeds from Sales and Calls | 19,074 | $ 0 |
Gross Proceeds from Maturities | 2,330 | $ 0 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Realized Gains | 1 | |
Gross Realized Losses | 0 | |
Gross Proceeds from Sales and Calls | 5,011 | |
Gross Proceeds from Maturities | 0 | |
Agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Realized Gains | 5 | |
Gross Realized Losses | 0 | |
Gross Proceeds from Sales and Calls | 9,063 | |
Gross Proceeds from Maturities | 1,500 | |
Treasury bills | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Realized Gains | 0 | |
Gross Realized Losses | 0 | |
Gross Proceeds from Sales and Calls | 5,000 | |
Gross Proceeds from Maturities | $ 830 |
Investment Securities and Fai27
Investment Securities and Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 40,211 | $ 44,652 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 40,354 | 51,754 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 6,401 | 13,312 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 33,953 | 38,442 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 31,953 | 30,442 |
Corporate bonds | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 31,953 | 30,442 |
Corporate bonds | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Corporate bonds | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 31,953 | 30,442 |
Corporate bonds | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,000 | 8,000 |
Agency securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,000 | 8,000 |
Agency securities | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Agency securities | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,000 | 8,000 |
Agency securities | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6,258 | 6,210 |
Certificates of Deposit | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6,258 | 6,210 |
Certificates of Deposit | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6,258 | 6,210 |
Certificates of Deposit | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Certificates of Deposit | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Money Market Accounts | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 143 | 7,102 |
Money Market Accounts | Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 143 | 7,102 |
Money Market Accounts | Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money Market Accounts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Investment Securities and Fai28
Investment Securities and Fair Value Measurements - Contingent Consideration (Details) - USD ($) $ in Thousands | May 06, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Final earn-out payment | $ 0 | $ 2,429 | |||
Contingent Consideration | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Fair value, at beginning of period | $ 0 | $ 2,429 | 0 | 2,429 | |
Payment of contingent consideration | 0 | (2,429) | 0 | (2,429) | |
Fair value, at end of period | $ 0 | $ 0 | $ 0 | $ 0 | |
Final earn-out payment | $ 2,400 |
Internal-Use Software Develop29
Internal-Use Software Development Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Research and Development [Abstract] | |||||
Internal use software development costs, gross | $ 27,283 | $ 27,283 | $ 21,894 | ||
Less: Accumulated amortization | (14,479) | (14,479) | (11,872) | ||
Internal use software development costs, net | 12,804 | 12,804 | $ 10,022 | ||
Capitalized software development costs during the period | (3,000) | $ (1,900) | (5,400) | $ (3,300) | |
Amortization expense with respect to software development costs during the period | $ 1,400 | $ 800 | $ 2,700 | $ 1,400 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Value | $ 7,807 | $ 7,807 | $ 7,811 | ||
Accumulated Amortization | (3,999) | (3,999) | (3,295) | ||
Net Carrying Value | 3,808 | 3,808 | $ 4,516 | ||
Amortization expense | 400 | $ 400 | $ 704 | $ 600 | |
Weighted Average | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Useful Life in Years | 5 years 10 months 24 days | 5 years 10 months 24 days | |||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Value | 790 | $ 790 | $ 790 | ||
Accumulated Amortization | (313) | (313) | (234) | ||
Net Carrying Value | 477 | $ 477 | $ 556 | ||
Customer relationships | Weighted Average | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Useful Life in Years | 5 years | 5 years | |||
Technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Value | 4,811 | $ 4,811 | $ 4,811 | ||
Accumulated Amortization | (2,669) | (2,669) | (2,268) | ||
Net Carrying Value | 2,142 | $ 2,142 | $ 2,543 | ||
Technology | Weighted Average | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Useful Life in Years | 6 years | 6 years | |||
Trademarks | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Value | 930 | $ 930 | $ 930 | ||
Accumulated Amortization | (354) | (354) | (293) | ||
Net Carrying Value | 576 | $ 576 | $ 637 | ||
Trademarks | Weighted Average | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Useful Life in Years | 9 years | 9 years | |||
Partner relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Value | 680 | $ 680 | $ 680 | ||
Accumulated Amortization | (283) | (283) | (170) | ||
Net Carrying Value | 397 | $ 397 | $ 510 | ||
Partner relationships | Weighted Average | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Useful Life in Years | 3 years | 3 years | |||
Non-compete agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Value | 40 | $ 40 | $ 40 | ||
Accumulated Amortization | (17) | (17) | (10) | ||
Net Carrying Value | 23 | $ 23 | $ 30 | ||
Non-compete agreements | Weighted Average | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Useful Life in Years | 3 years | 3 years | |||
Domain names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Value | 274 | $ 274 | $ 274 | ||
Accumulated Amortization | (221) | (221) | (199) | ||
Net Carrying Value | 53 | $ 53 | $ 75 | ||
Domain names | Weighted Average | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Useful Life in Years | 5 years | 5 years | |||
Patents | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Value | 282 | $ 282 | $ 286 | ||
Accumulated Amortization | (142) | (142) | (121) | ||
Net Carrying Value | $ 140 | $ 140 | $ 165 | ||
Patents | Weighted Average | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Useful Life in Years | 5 years | 5 years |
Intangible Assets - Intangibl31
Intangible Assets - Intangible Asset Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Finite-lived Intangible Assets [Roll Forward] | ||||
Intangible assets, net at December 31, 2015 | $ 4,516 | |||
Disposals | (4) | |||
Amortization | $ (400) | $ (400) | (704) | $ (600) |
Intangible assets, net at June 30, 2016 | $ 3,808 | $ 3,808 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Oct. 09, 2015 | |
Loss Contingencies [Line Items] | ||||||
Operating lease obligations | $ 9,400,000 | $ 9,400,000 | ||||
Rent expense | 500,000 | $ 300,000 | 1,000,000 | $ 600,000 | ||
Per incident policy limit | $ 100,000 | |||||
Quota share of tenant liability insurance provided, percent | 100.00% | |||||
Other Current Liabilities | ||||||
Loss Contingencies [Line Items] | ||||||
Liability for reported claims and claims incurred but not reported | 500,000 | $ 500,000 | $ 500,000 | |||
Prepaid Expenses and Other Current Assets | ||||||
Loss Contingencies [Line Items] | ||||||
Deposits held with a third party related to insurance services collateral | 1,100,000 | 1,100,000 | 1,000,000 | |||
Credit Facility | Revolving Facility | ||||||
Loss Contingencies [Line Items] | ||||||
Maximum borrowing capacity | $ 25,000,000 | |||||
Credit Facility | Term Loan | ||||||
Loss Contingencies [Line Items] | ||||||
Line of credit, amount outstanding | 0 | 0 | $ 12,000 | |||
Loss From Premature Lease Exit | ||||||
Loss Contingencies [Line Items] | ||||||
Lease loss liability | $ 100,000 | $ 100,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands | Mar. 31, 2016 | Dec. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options granted (shares) | 500 | 82 | 750 | 277 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Options granted, weighted average exercise price (usd per share) | $ 13.43 | $ 12 | $ 12.85 | $ 7.51 | ||
Vesting Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Percent of targeted awards that will vest | 67.00% | 67.00% | ||||
PSOs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options granted (shares) | 750 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Percent of targeted performance metric | 150.00% | 150.00% | ||||
PSOs | Vesting Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Percent of targeted performance metric | 100.00% | 100.00% | ||||
PSOs | Vesting Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Percent of targeted performance metric | 80.00% | 80.00% | ||||
Percent of targeted awards that will vest | 33.00% | 33.00% | ||||
PSOs | Vesting Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Percent of targeted performance metric | 80.00% | 80.00% | ||||
PSOs | Vesting Tranche Four | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Percent of targeted performance metric | 50.00% | 50.00% | ||||
Percent of targeted awards that will vest | 0.00% | 0.00% | ||||
Stock-based compensation expense | $ 0 | |||||
Stock Options and PSOs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options outstanding, beginning balance (shares) | 1,171 | |||||
Options granted (shares) | 750 | |||||
Options exercised (shares) | (74) | |||||
Options canceled/forfeited (shares) | (23) | |||||
Options outstanding, ending balance (shares) | 1,824 | 1,824 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Options outstanding, weighted average exercise price, beginning balance (usd per share) | $ 5.30 | |||||
Options granted, weighted average exercise price (usd per share) | 12.85 | |||||
Options exercised, weighted average exercise price (usd per share) | 2.07 | |||||
Options canceled/forfeited, weighted average exercise price (usd per share) | 8.45 | |||||
Options outstanding, weighted average exercise price, ending balance (usd per share) | $ 8.50 | $ 8.50 | ||||
Weighted average remaining contractual life, in years | 8 years 7 months 6 days | 8 years | ||||
Stock-based compensation expense | $ 578,000 | $ 167,000 | $ 865,000 | $ 269,000 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted (shares) | 500 | 82 | 750 | 277 |
Options granted, weighted average exercise price (usd per share) | $ 13.43 | $ 12 | $ 12.85 | $ 7.51 |
Weighted average grant-date fair value per share (usd per share) | $ 5.20 | $ 5.42 | $ 4.85 | $ 6.77 |
Stock Options and PSOs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted (shares) | 750 | |||
Options granted, weighted average exercise price (usd per share) | $ 12.85 | |||
Weighted average Black-Scholes model assumptions: | ||||
Risk-free interest rate | 1.53% | 1.91% | 1.45% | 1.53% |
Expected term | 6 years 1 month 6 days | 6 years | 5 years 10 months 24 days | 6 years 2 months 12 days |
Expected volatility | 38.00% | 45.00% | 37.00% | 47.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Remaining stock-based compensation expense for unvested options, not yet recognized | $ 4.3 | $ 4.3 | ||
Stock-based compensation expense, weighted average recognition period | 2 years 1 month 6 days |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-option Award Activity (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
RSUs and PSUs | |
Number of Shares | |
Unvested, beginning balance (shares) | shares | 17 |
Granted (shares) | shares | 463 |
Vested (shares) | shares | 0 |
Forfeited (shares) | shares | (5) |
Unvested, ending balance (shares) | shares | 475 |
Weighted- Average Grant Date Fair Value per Share | |
Unvested, beginning balance (usd per share) | $ / shares | $ 15.45 |
Granted (usd per share) | $ / shares | 12.46 |
Vested (usd per share) | $ / shares | 0 |
Forfeited (usd per share) | $ / shares | 12.60 |
Unvested, ending balance (usd per share) | $ / shares | $ 12.56 |
Restricted Stock | |
Number of Shares | |
Unvested, beginning balance (shares) | shares | 120 |
Granted (shares) | shares | 22 |
Vested (shares) | shares | (66) |
Forfeited (shares) | shares | 0 |
Unvested, ending balance (shares) | shares | 76 |
Weighted- Average Grant Date Fair Value per Share | |
Unvested, beginning balance (usd per share) | $ / shares | $ 4.68 |
Granted (usd per share) | $ / shares | 13.46 |
Vested (usd per share) | $ / shares | 6.10 |
Forfeited (usd per share) | $ / shares | 0 |
Unvested, ending balance (usd per share) | $ / shares | $ 6 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | |
Vesting Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percent of targeted awards that will vest | 67.00% | 67.00% |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fixed monetary value of shares granted | $ 376,000 | |
Vesting period | 4 years | |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fixed monetary value of shares granted | $ 87,000 | |
Percent of targeted performance metric | 100.00% | 100.00% |
PSUs | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percent of targeted performance metric | 0.00% | 0.00% |
PSUs | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percent of targeted performance metric | 150.00% | 150.00% |
PSUs | Vesting Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percent of targeted performance metric | 150.00% | 150.00% |
Percent of targeted awards that will vest | 150.00% | 150.00% |
PSUs | Vesting Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percent of targeted performance metric | 80.00% | 80.00% |
Percent of targeted awards that will vest | 50.00% | 50.00% |
PSUs | Vesting Tranche Three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percent of targeted performance metric | 80.00% | 80.00% |
PSUs | Vesting Tranche Four | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percent of targeted performance metric | 50.00% | 50.00% |
Percent of targeted awards that will vest | 0.00% | 0.00% |
Stock-based compensation expense | $ 0 | |
RSUs and PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 527,000 | 638,000 |
Remaining stock-based compensation expense for unvested shares, not yet recognized | $ 5,400,000 | $ 5,400,000 |
Stock-based compensation expense, weighted average recognition period | 3 years 1 month 6 days |
Stock-Based Compensation - Re37
Stock-Based Compensation - Restricted Stock Awards (Details) - Restricted Stock - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 114 | $ 80 | $ 229 | $ 143,000 |
Remaining stock-based compensation expense for unvested shares, not yet recognized | $ 500 | $ 500 | ||
Stock-based compensation expense, weighted average recognition period | 1 year 3 months 18 days | |||
Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Non-Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
U.S Federal statutory rate | 34.00% | |||
Income tax expense | $ 13 | $ (63) | $ 37 | $ 11 |
Pre-tax income (loss) | $ (2,251) | $ (3,463) | $ (5,830) | $ (7,007) |
Effective tax rate | (0.60%) | 1.80% | (0.60%) | (0.20%) |
Revenue and Other Information39
Revenue and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Product Information [Line Items] | ||||
Revenue | $ 26,203 | $ 18,425 | $ 49,414 | $ 34,273 |
Core solutions | ||||
Product Information [Line Items] | ||||
Revenue | 10,572 | 7,697 | 20,335 | 14,831 |
Value plus services | ||||
Product Information [Line Items] | ||||
Revenue | 14,399 | 9,408 | 26,653 | 17,112 |
Other | ||||
Product Information [Line Items] | ||||
Revenue | $ 1,232 | $ 1,320 | $ 2,426 | $ 2,330 |