Diligent (DIL) 10-K 14 Mar 16 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Mar. 03, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	Diligent Corp
Entity Central Index Key	1,433,269
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		88,052,354
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 276.5

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 70,220	$ 70,809
Accounts receivable, net	6,102	1,754
Deferred commissions	2,289	1,353
Prepaid expenses and other current assets	3,913	3,233
Deferred tax assets	3,761	2,768
Income tax receivable	713
Total current assets	86,998	79,917
Property and equipment, net	12,697	12,203
Goodwill	498
Intangible assets, net	13,501	260
Deferred tax assets	7,667	6,804
Security deposits	815	801
Other non-current assets	309	436
Total assets	122,485	100,421
Current liabilities:
Accounts payable	3,681	2,197
Accrued expenses and other liabilities	12,491	11,468
Income taxes payable		1,552
Deferred revenue	39,545	32,238
Obligations under capital leases	62	623
Total current liabilities	55,779	48,078
Non-current liabilities:
Deferred revenue, less current portion	12,734	12,138
Obligations under capital leases		34
Other non-current liabilities	2,750	3,899
Total non-current liabilities	15,484	16,071
Total liabilities	$ 71,263	$ 64,149
Commitments and contingencies
Redeemable preferred stock:
Series A convertible redeemable preferred stock, $.001 par value, 50,000,000 shares authorized 30,000,000 shares issued and outstanding (liquidation value $4,830)	$ 3,000	$ 3,000
Stockholders' equity:
Common Stock, $.001 par value, 250,000,000 shares authorized, 87,457,954 and 86,895,778 shares issued and outstanding	87	87
Additional paid-in capital	40,181	32,631
Retained earnings	9,810	1,706
Accumulated other comprehensive loss	(1,856)	(1,152)
Total stockholders' equity	48,222	33,272
Total liabilities, redeemable preferred stock and stockholders' equity	$ 122,485	$ 100,421

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Series A convertible redeemable preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Series A convertible redeemable preferred stock, shares authorized	50,000,000	50,000,000
Series A convertible redeemable preferred stock, shares issued	30,000,000	30,000,000
Series A convertible redeemable preferred stock, shares outstanding	30,000,000	30,000,000
Series A convertible redeemable preferred stock, liquidation value (in dollars)	$ 4,830	$ 4,830
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	87,457,954	86,895,778
Common stock, shares outstanding	87,457,954	86,895,778

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenues	$ 99,309	$ 83,054	$ 64,757
Cost of revenues (excluding depreciation and amortization of property and equipment)	21,399	17,641	12,502
Gross profit	77,910	65,413	52,255
Operating expenses:
Selling and marketing	21,995	13,849	11,297
General and administrative	27,396	23,135	18,676
Research and development	13,096	9,605	4,735
Depreciation and amortization	3,873	2,784	1,645
Investigation and Restatement		916	5,571
Total operating expenses	66,360	50,289	41,924
Operating income	11,550	15,124	10,331
Other expense, net:
Interest expense, net	(1)	(45)	(91)
Other income	68
Foreign exchange transaction losses	(266)	(75)	(236)
Total other expense, net	(199)	(120)	(327)
Income before provision for income taxes	11,351	15,004	10,004
Income tax expense	3,247	6,078	3,744
Net income	8,104	8,926	6,260
Accrued preferred stock dividends	(330)	(335)	(359)
Net income attributable to common stockholders	$ 7,774	$ 8,591	$ 5,901
Earnings per share:
Basic (in dollars per share)	$ 0.07	$ 0.07	$ 0.05
Diluted (in dollars per share)	$ 0.06	$ 0.07	$ 0.05
Weighted average shares outstanding:
Basic (in shares)	117,386	117,109	116,427
Diluted (in shares)	121,928	121,117	121,729

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 8,104	$ 8,926	$ 6,260
Other comprehensive loss:
Foreign exchange translation adjustment	(704)	(1,111)	(109)
Comprehensive income	$ 7,400	$ 7,815	$ 6,151

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in-Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 31, 2012	$ 84	$ 26,052	$ (13,480)	$ 68	$ 12,724
Balance (in shares) at Dec. 31, 2012	83,586,000
Comprehensive income			6,260	(109)	6,151
Capital contribution		240			240
Share-based compensation		2,581			2,581
Exercise of stock options		73			73
Exercise of stock options (in shares)	190,000
Excess tax benefits, net - stock compensation		302			302
Amortization of preferred stock offering costs		(28)			(28)
Preferred stock dividend ($0.01 per share)		(359)			(359)
Balance at Dec. 31, 2013	$ 84	28,861	(7,220)	(41)	21,684
Balance (in shares) at Dec. 31, 2013	83,776,000
Comprehensive income			8,926	(1,111)	7,815
Share-based compensation		3,033			3,033
Shares issued to the board of directors		641			641
Shares issues to the Board of Directors (in shares)	167,000
Exercise of stock options		19			19
Exercise of stock options (in shares)	125,000
Conversion of preferred stock to common stock	$ 3	264			267
Conversion of preferred stock to common stock (in shares)	2,667,000
Issuance of shares upon vesting of restricted stock units	161,000
Excess tax benefits, net - stock compensation		154			154
Amortization of preferred stock offering costs		(6)			(6)
Preferred stock dividend ($0.01 per share)		(335)			(335)
Balance at Dec. 31, 2014	$ 87	32,631	1,706	(1,152)	33,272
Balance (in shares) at Dec. 31, 2014	86,896,000
Comprehensive income			8,104	(704)	7,400
Share-based compensation		7,518			7,518
Shares issued to the board of directors		316			316
Shares issues to the Board of Directors (in shares)	81,000
Exercise of stock options		105			$ 105
Exercise of stock options (in shares)	128,000
Conversion of preferred stock to common stock (in shares)					1
Issuance of shares upon vesting of restricted stock units	407,000
Shares surrendered to fund withholding taxes		(203)			$ (203)
Shares surrendered to fund withholding taxes	(54,000)
Excess tax benefits, net - stock compensation		144			144
Preferred stock dividend ($0.01 per share)		(330)			(330)
Balance at Dec. 31, 2015	$ 87	$ 40,181	$ 9,810	$ (1,856)	$ 48,222
Balance (in shares) at Dec. 31, 2015	87,458,000

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statement of Changes in Stockholders' Equity
Preferred stock dividend (in dollars per share)	$ (0.01)	$ 0.01	$ 0.01

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 8,104	$ 8,926	$ 6,260
Adjustments to reconcile net income to net cash provided by operating activities
Deferred taxes	(2,122)	(2,855)	(1,278)
Depreciation and amortization	4,200	2,784	1,645
Share-based compensation	7,854	3,033	2,581
Allowance for doubtful accounts	100
Excess tax benefits realized from share-based compensation	(170)	(154)	(302)
Changes in operating assets and liabilities:
Accounts receivable	(3,588)	(3)	(209)
Deferred commissions	(991)	180	549
Prepaid expenses and other current assets	(469)	(1,297)	(871)
Security deposits			11
Other non-current assets	123	(436)
Accounts payable and accrued expenses	2,919	3,293	4,677
Income taxes receivable/payable	(1,950)	3,135	(2,518)
Deferred revenue	8,374	6,477	13,964
Other non-current liabilities	(1,177)	1,344	2,508
Other			45
Net cash provided by operating activities	21,207	24,427	27,062
Cash flows from investing activities:
Proceeds from maturity of short-term investments		12,497	5,101
Purchases of short-term investments			(17,495)
Cash paid in connection with acquisitions	(10,000)
Restricted cash-security deposit	11	(124)	(462)
Purchases of property and equipment	(4,319)	(6,964)	(3,309)
Capitalized software development costs	(4,949)
Purchases of intangible assets		(275)
Net cash (used in) provided by investing activities	(19,257)	5,134	(16,165)
Cash flows from financing activities:
Payment of preferred stock dividend	(335)	(359)	(120)
Proceeds from exercise of stock options and purchases of shares under stock purchasing plan	105	19	73
Excess tax benefits realized from share-based compensation	170	154	302
Payments of obligations under capital leases	(595)	(956)	(626)
Funding of withholding taxes for share-based compensation	(203)
Payments of obligations under software licensing agreements		(82)	(145)
Net cash used in financing activities	(858)	(1,224)	(516)
Effect of exchange rates on cash and cash equivalents	(1,681)	(1,111)	(109)
Net (decrease) increase in cash and cash equivalents	(589)	27,226	10,272
Cash and cash equivalents at beginning of year	70,809	43,583	33,311
Cash and cash equivalents at end of year	70,220	70,809	43,583
Supplemental disclosure of cash flow information:
Interest	19	57	90
Income taxes	7,030	5,470	7,158
Non-cash investing and financing activities:
Conversion of preferred stock to common stock		267
Accounts payable for property and equipment	$ 765	$ 1,179	1,395
Capital contribution in lieu of preferred stock dividend			240
Property and equipment acquired under capital lease agreements			$ 1,306

Organization and nature of the

Organization and nature of the business	12 Months Ended
	Dec. 31, 2015
Organization and nature of the business
Organization and nature of the business	1) Organization and nature of the business Diligent Corporation ("Diligent" or the "Company") is a Delaware corporation established in 2007 and listed on the NZX Main Board, a regulated New Zealand equities market. In December 2007, the Company, then named Diligent Board Member Services, Inc., completed an offshore public offering in New Zealand in connection with its listing on the NZX Main Board. In June 2015, the Company changed its name to Diligent Corporation. Diligent's corporate headquarters are located in New York, New York. Diligent provides one of the world's most widely-used board portals ("Diligent Boards" or "Boards"). The Company develops and commercializes Diligent Boards, a secure software application available online, on iPad and Windows supported devices. The application allows board members, leadership teams and administrative staff to simplify how board materials are produced, delivered, reviewed and voted on. The Company provides clients with subscription-based access to its software along with associated services, including securely hosting the clients' data, and customer service and support for the application. Diligent has a wholly-owned subsidiary located in New Zealand, Diligent Board Member Services NZ Limited ("DBMS NZ"), which provides customer support and research and development services for the Company. The Company has a wholly-owned subsidiary in the United Kingdom, Diligent Boardbooks Limited ("DBL") and a wholly-owned subsidiary in Australia, Diligent Board Services Australia Pty Ltd. ("DBA"), which provide sales, marketing and customer success services in their respective regions. The Company's Singapore subsidiary, Diligent APAC Board Services Pte. Ltd. ("APAC") provides sales support in the Asia-Pacific region. The Company's subsidiary in Hong Kong, Diligent APAC Limited ("APAC LTD") was established in 2012 to support the Company's Asia-Pacific sales and marketing operations. On February 4, 2014, the Company established a German subsidiary, Diligent Boardbooks GmbH ("DBG"), to offer dedicated, private data hosting solutions and data recovery support, primarily for European customers. Diligent's consolidated financial statements are presented in U.S. dollars, which is the Company's functional and reporting currency.

Investigations and restatement

Investigations and restatement	12 Months Ended
	Dec. 31, 2015
Investigations and restatement
Investigations and restatement	2) Investigations and restatement Special Committee In December 2012, the Board of Directors of the Company appointed a Special Committee of independent directors to examine certain of Diligent's past stock issuances and stock option grants that may not have been issued in compliance with the relevant stock option and incentive plans. The Special Committee's members were not on the Board at the time of the issuance of such grants, were not involved in their issue, and are not the recipients of any option grants. The Special Committee was delegated broad powers from the Board to take all such action in respect of the issuances as it deemed necessary and advisable. The Special Committee, assisted by attorneys in the U.S. and New Zealand, conducted a thorough review and analysis of all stock issuances and stock option grants during the relevant period. As discussed in Note 12, the Special Committee found that three option awards exceeded the applicable plan caps on the number of shares covered by an award issued to a single recipient in a particular year. The Special Committee was delegated the authority to develop appropriate alternative compensation packages for the affected employees. These awards were determined by the Board to be reasonable compensation at the time, and were an important incentive component of the employees' compensation packages. As part of its work, the Special Committee also reviewed the Company's compliance with applicable regulations, including U.S. and New Zealand securities regulations and the NZX Listing Rules. The Special Committee identified a number of instances where it appears that Diligent was not, or may not have been, in compliance with its U.S. and New Zealand regulatory obligations. The Special Committee determined that these instances of non-compliance were inadvertent and attributable in part to the constrained resources of Diligent in a period of financial difficulty in the years following its listing on the NZX Main Board, and the complex regulatory and compliance obligations across multiple jurisdictions with differing regulations and requirements. It recommended, and the Board fully endorsed, that the Company work with its regulators to resolve these issues. In September, 2013 the NZ Markets Disciplinary Tribunal approved a settlement reached by the Company and the NZX regarding the previously disclosed breaches of the NZX Listing Rules by the Company. The settlement provided for the payment of fines and costs by the Company, consisting of less than $0.1 million as a penalty to the NZX Discipline Fund and for costs incurred by the NZXR. Costs for the Special Committee for the year ended December 31, 2013 were $2.3 million. Included in Special Committee expenses are professional fees incurred for legal, accounting and compensation consultants, NZX penalties and compensation paid to Special Committee members. During the second quarter of 2013, the Special Committee was disbanded. No such costs were incurred in 2015 or 2014. During 2015, 2014 and 2013, the Company implemented the recommendations of the Special Committee to remediate the compliance and internal control weaknesses identified as part of the Special Committee investigation. Audit Committee Investigation On July 2, 2013, the Audit Committee of the Board engaged outside company counsel to investigate the accounting errors that gave rise to the need to restate the Company's financial statements, as well as other historical accounting practices impacting the timing of recognition of revenue. In connection with the investigation, it was determined that the Company included in its financial results certain customer agreements that, while having an effective date within a quarter, had not been signed by all parties within the quarter, as would be required to commence revenue recognition under U.S. GAAP. The early inclusion of such contracts did not have a material impact on previously reported revenue for fiscal quarters including the first quarter of 2010 through the first quarter of 2013. The Audit Committee investigation resulted in no finding of intentional misconduct or fraud. Costs of the investigation for the years ended December 31, 2013 were $0.9 million and consisted of legal fees. No such costs were incurred in 2015 or 2014. Restatement In August, 2013, the Company announced that its historical financial statements for the years ended December 31, 2012, 2011 and 2010 and the quarter ended March 31, 2013 would be restated due to revenue recognition errors. The Company completed the restatement process in April of 2014. Costs for the restatement and re-audits incurred during the years ended December 31, 2014 and 2013 were $0.9 million and $2.3 million, respectively. These costs were comprised of professional fees incurred for accounting, auditing and consulting services.

Significant accounting policies

Significant accounting policies	12 Months Ended
	Dec. 31, 2015
Significant accounting policies
Significant accounting policies	3) Significant accounting policies Basis of Presentation The Company's consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include the deferral and recognition of revenue, the fair value of share-based compensation, accounting for income and other taxes, including the realization of deferred tax assets and uncertain tax positions, the fair value of acquired assets and assumed liabilities arising from business combinations and the useful lives of tangible and intangible assets. Actual results could differ from those estimates. Effective January 1, 2015, the Company began allocating facility and related costs and certain costs associated with its Enterprise Resource Planning system to Cost of revenues, Selling and marketing, General and administrative, and Research and development. Previously such costs had been presented within General and administrative expenses. Such costs are allocated based on a department's proportionate share of total employee headcount. The Company also changed the presentation of sales-related incentive commissions paid to customer success personnel from Cost of revenues to Selling and marketing. The Company determined that these changes would better reflect industry practice and would provide more meaningful information as well as increased transparency of its operations. To conform the 2014 presentation to the current year presentation, $2.2 million was reclassified from General and administrative, of which $0.2 million was included in Costs of revenues, $1.4 million was included in Selling and marketing, and $0.6 million was included in Research and development. Such reclassifications had no effect on previously reported operating income, net income or retained earnings. To conform the 2013 presentation to the current year presentation, $1.4 million and $0.5 million was reclassified from General and administrative and Cost of revenues, respectively, of which $1.7 million was included in Selling and marketing and $0.2 million was included in Research and development. Such reclassifications had no effect on previously reported operating income, net income or retained earnings. Principles of Consolidation The financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. The Company invests its excess cash primarily in bank and money market funds of major financial institutions. Accordingly, its cash equivalents are subject to minimal credit and market risk. Fair Value of Financial Instruments The fair value of a financial instrument is the amount at which the instrument could be exchanged in an orderly transaction between market participants. As of December 31, 2015 and 2014, the carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses and other liabilities approximated fair value due to the short-term nature of these instruments. ASC 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy for input into valuation techniques as follows: i. Level 1 input—unadjusted quoted prices in active markets for an identical instrument; ii. Level 2 input—observable market data for the same or similar instrument but not Level 1, including quoted prices for identical or similar assets or liabilities in markets that are active or not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and iii. Level 3 input—unobservable inputs developed using management's assumptions about the inputs used for pricing the asset or liability. At December 31, 2014, cash equivalents include level 1 investments in U.S. treasury money market funds and treasury bills totaling $32.5 million, which are carried at cost, which approximates fair value. The fair value of money market funds was determined by reference to quoted market prices. Property and Equipment Property and equipment consists of computer and office equipment, leasehold improvements and purchased internal-use computer software. Property and equipment are carried at cost, less accumulated depreciation and amortization and any impairment losses. Depreciation and Amortization Depreciation on property and equipment is computed on a straight line basis at rates adequate to recover the cost of the assets over their estimated useful lives, which range from three to five years. Leasehold improvements are depreciated over their estimated useful lives of the assets or the term of the underlying lease, whichever is shorter. Amortization of acquired intangible assets and purchased internal-use computer software is computed on the straight-line method over their estimated useful lives, which range from two to fifteen years. Expenditures for repair and maintenance costs are expensed as incurred. Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The acquisition method of accounting requires that purchase price, including the fair value of contingent consideration, of the acquisition be allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Payments made for contingent consideration recorded as part of an acquisition's purchase price are reflected as financing activities in the Company's Consolidated Statements of Cash Flows, if paid more than three months after the acquisition date. If paid within three months of the acquisition date, these payments are reflected as investing activities in the Company's Consolidated Statements of Cash Flows. Acquisition-related costs, such as legal, accounting and other costs incurred in connection with an acquisition are expensed as incurred. The Company includes the results of acquisitions in its Consolidated Financial Statements from the date of acquisition. Goodwill Goodwill represents the excess of the purchase price of an acquired entity over the fair value of tangible and intangible assets acquired and liabilities assumed. Goodwill is not amortized but instead evaluated for impairment. We perform our annual impairment test of goodwill at the reporting unit level at October 1 each fiscal year or whenever events or circumstances change that would indicate that goodwill may not be recoverable. We have concluded that our operations constitute one operating segment and reporting unit. In conducting the impairment test, we can opt to perform a qualitative assessment to test goodwill for impairment or we can directly perform the two-step impairment test described below. Based on the qualitative assessment, if we determine that the fair value of a reporting unit is more likely than not (a likelihood of more than 50%) to be less than its carrying amount, the two-step impairment test will be performed. In the first step, we compare the fair value of the reporting unit to its carrying amount. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired and we are not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. In the second step, if the carrying value of a reporting unit's goodwill exceeds its implied fair value, then we would record an impairment loss equal to the difference. We did not recognize any goodwill impairment charges for the year ended December 31, 2015. Acquired Intangible Assets Acquired intangible assets consist primarily of acquired customer contracts, developed technology and trade names. Acquired intangible assets are carried at cost, less accumulated amortization. Acquired intangible assets are amortized over their estimated period of benefit which approximates a straight-line basis over their estimated useful lives. Amortization expense for the year ended December 31, 2015, 2014 and 2013 was $0.2 million, less than $0.1 million and nil, respectively. Impairment of Long-Lived Assets The Company periodically reviews the carrying amounts of its tangible and intangible assets to determine whether events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Measurement of an impairment loss for long-lived assets and identifiable intangible assets that management expects to hold and use is based on the fair value of the asset. An impairment loss is measured as the amount by which the carrying amount of the long-lived asset exceeds its fair value. Revenue Recognition The Company derives its revenues primarily from subscription fees and installation fees, including training. The Company sells subscriptions to its cloud-based application that are generally one year in length. Its arrangements do not include a general right of return and generally automatically renew unless the Company is notified 30 days prior to the expiration of the initial term. The Company's subscription agreements do not provide the customer the right to take possession of the software that supports the application. Installation fees consist of the configuration of the Company's service and training of its customers. Revenue recognition commences when all of the following conditions are met: • There is persuasive evidence of the arrangement; • The service has been made available to the customer; • The fee is fixed or determinable; and • The collectability of the fees is reasonably assured. Pursuant to the authoritative accounting guidance regarding revenue recognition for arrangements with multiple deliverables, for a deliverable to qualify as a separate unit of accounting, the delivered item must have value to the customer on a standalone basis. The Company has determined that the installation fee does not have standalone value, so accordingly, it accounts for its arrangements as a single unit of accounting. Revenue from the Company's subscription service is recognized on a daily basis over the subscription term as the services are delivered. The service is considered delivered, and hence revenue recognition commences, when the customer has access to Diligent Boards. Revenue is recorded ratably through the end of the contract period, which is generally twelve months from the contract date. Installation fees paid by customers in connection with the subscription service are deferred and are recognized ratably over the expected life of the customer relationships, generally nine years. In estimating the expected customer relationship period, the Company looked to guidance on the determination of the useful life of an intangible asset for the appropriate factors to be considered in estimating expected customer life and specifically focused on its customer renewal rate. Diligent's customer contracts contain a standard "autorenew" feature which provides for one-year renewals unless either party provides written notice of termination. In addition, Diligent's renewal history with its customers has been and remains at very high rates. As a result, the Company believes that its customers will renew numerous times during their tenure with Diligent. Consequently, Diligent has had a very low annual attrition rate which historically has been less than 5.0%. After considering these factors, the Company determined that a nine year estimated customer life was appropriate as of December 31, 2015. The Company evaluates its estimated customer life on an annual basis. Deferred Revenue Deferred revenue represents installation and subscription fees for which cash has been received, but for which the Company has not yet delivered its services or the criteria for the recognition of revenue have not yet been met. Deferred revenues presented in the consolidated balance sheets do not include amounts receivable (both billed and unbilled) for executed subscription agreements for which the Company has not yet received payment. Accordingly, the deferred revenue balance does not represent the total contract value of annual subscription agreements. Long term deferred revenue consists of installation fees that will be recognized over the estimated life of the customer relationship, generally nine years. Installation fees expected to be recognized within the next 12 months of the balance sheet date are included in the current portion of deferred revenue. Accounts Receivable The Company generally invoices its customers on a quarterly or annual basis. Accounts receivable represents amounts due from Diligent's customers for which revenue has been recognized. A provision for doubtful accounts is recorded based on management's assessment of amounts considered uncollectable for specific customers based on the age of the receivable, history of payments and other relevant information. At December 31, 2015 and December 31, 2014, the Company has recorded a provision for doubtful accounts of $0.2 million and $0.1 million, respectively. Research and Development Research and development expenses are incurred as the Company maintains and enhances its software and evaluates and develops other potential applications. Such expenses include compensation and employee benefits of engineering and testing personnel, including share-based compensation, materials, travel and direct costs associated with the design and required testing of the product line. Research and development also includes allocated indirect costs such as facility and related costs that are clearly related to research and development activities. Internal-Use Software Development Costs The Company begins to capitalize costs incurred for computer software developed for internal use when the preliminary development efforts are successfully completed, management has authorized and committed to funding the project, and it is probable that the project will be completed and the software will be used as intended. Capitalization ceases when a computer software project is substantially complete and ready for its intended use. Costs incurred prior to meeting these criteria are expensed as incurred and recorded in research and development expense in the Company's consolidated statements of income. Enhancements that add functionality to previously released software are capitalized and maintenance and relatively minor enhancements are expensed as incurred. Capitalized software development costs are amortized over the estimated useful life of the underlying project on a straight-line basis, generally not exceeding three years and are recorded as a component of cost of sales. Operating Leases The Company records rental costs, including costs related to fixed rent escalation clauses and rent holidays, on a straight-line basis over the lease term. Income Taxes The Company files U.S. federal and state income tax returns. Foreign operations file income tax returns in their respective foreign jurisdictions. The Company accounts for deferred income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. A valuation allowance is recorded if it is considered more likely than not that some or all of a deferred tax asset may not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The tax effects of an uncertain tax position taken or expected be taken in income tax returns are recognized only if it is "more likely than not" to be sustained on examination by the taxing authorities, based on its technical merits as of the reporting date. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes the benefit of an uncertain tax position in the period when it is effectively settled. Previously recognized tax positions are derecognized in the first period in which it is no longer more likely than not that the tax position would be sustained upon examination. The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. Foreign Exchange The Company's wholly-owned foreign subsidiaries generally utilize their local currency as their functional currency. Assets and liabilities of these subsidiaries are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive income or loss. The functional currency of the Company's Singapore subsidiary is the U.S. dollar. Transactions in foreign currencies are reported at the rates of exchange at the transaction date. Assets and liabilities are translated at the rates of exchange in effect at the balance sheet date. All differences are recorded in results of operations. Share-Based Compensation The Company measures the cost of employee services received in exchange for an equity-based award using the fair value of the award on the date of the grant, and recognizes the cost over the period that the award recipient is required to provide services to the Company in exchange for the award. The fair value of restricted stock units and performance stock units is determined using the market price of the Company's common stock at the date of the grant and compensation expense is recognized for the portion of the award that is expected to vest. The Company measures compensation cost for awards granted to non-employees based on the fair value of the award at the measurement date, which is the date performance is satisfied or services are rendered by the non-employee. Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision-maker ("CODM"), or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance of the segment. In light of the Company's current product offerings and the fact that the Company's CODM, which is the Company's Chief Executive Officer, monitors and reviews financial information at a consolidated level for assessing operating results and allocation of resources, management has concluded that the Company has one reportable operating segment. Earnings Per Share Basic earnings per share is computed by dividing the net income attributable to common stockholders, after deducting accrued preferred stock dividends, by the weighted average number of common and preferred shares outstanding for the period. The preferred stockholders are entitled to participate on an "as converted basis" in any dividends paid on the Company's common stock, and as such are considered participating securities to which earnings should be allocated using the two-class method. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised, settled or converted into common stock, unless the effect is anti-dilutive. Stock options and employee share awards are included as potential dilutive securities for the applicable periods, except that 1.6 million, 1.8 million and 0.4 million have been excluded in 2015, 2014 and 2013, respectively because their effect is antidilutive. For the year ended December 31, 2015, 2014 and 2013. 1.6 million, 0.3 million and 2.5 million performance share units, respectively, were excluded as potential dilutive securities, as the performance criteria has not been met. The computation of shares used in calculating basic and diluted earnings per common share are as follows: The computation of shares used in calculating basic and diluted earnings per common share is as follows: Year ended December 31, 2015 2014 2013 (in thousands) Basic weighted average common shares outstanding Basic weighted average preferred shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic weighted average shares outstanding Dilutive effect of stock options Dilutive effect of performance stock units — Dilutive effect of restricted stock units ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dilutive weighted average shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recent Accounting Pronouncements In February of 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). Under ASU 2016-2, 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 provides 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. The Company plans to adopt this guidance beginning January 1, 2019. The Company is assessing the impact of this update on its consolidated financial statements and the timing of adoption. In November 2015, the FASB issued ASU No. 2015-17 "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes." This ASU simplifies the presentation of deferred income taxes by requiring all deferred income tax assets and liabilities be classified as noncurrent on the balance sheet. This removes the requirement for the entity to determine whether the deferred tax is current or noncurrent for presentation in the balance sheet. ASU No. 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016. This ASU is not expected to have a significant impact on the Company's consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805)—Simplifying the Accounting for Measurement-Period Adjustments." ASU No. 2015-16 eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. ASU No. 2015-16 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. This ASU is not expected to have a significant impact on the Company's consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. Under application of this guidance, if a cloud computing arrangement includes a software license, the update specifies that the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. A customer should account for a cloud computing arrangement as a service contract if the arrangement does not include a software license. ASU No. 2015-05 is effective for 2016 and early adoption is allowed. This ASU is not expected to have a significant impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606)," a new standard related to revenue recognition, 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. The new standard will replace most of the existing revenue recognition standards in U.S. GAAP when it becomes effective. In July 2015, the FASB decided to delay the effective date by one year to January 1, 2018. Early adoption is permitted no earlier than 2017. The new standard can be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the change recognized at the date of the initial application in retained earnings. The Company is assessing the potential impact of the new standard on its consolidated financial statements and has not yet selected a transition method.

Busines combination

Busines combination	12 Months Ended
	Dec. 31, 2015
Business Combination
Business Combination	4) Business Combination BoardLink Acquisition On October 19, 2015, the Company acquired all the assets of BoardLink, a SaaS provider of board and leadership team collaboration solutions, from Thomson Reuters. The acquisition of BoardLink strengthens Diligent's position as one of the world's leading providers of corporate governance and collaboration SaaS solutions for boards and senior executives. Under the terms of the agreement, Diligent paid $10.0 million in cash at closing for the Thomson Reuters BoardLink business. The net purchase price after a working capital adjustment of $0.2 million was $9.8 million. The Company has recorded a receivable of $0.2 million as of December 31, 2015 for the working capital adjustment, which is included in Prepaid expenses and other current assets on the consolidated balance sheet. The excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill and is primarily attributable to expanded market opportunities. The goodwill recognized in the BoardLink acquisition is expected to be deductible for U.S. income tax purposes. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed were based on management's estimates and assumptions. Acquisition related costs related to BoardLink for the year ended December 31, 2015 were $0.4 million. The Company has included the operating results of BoardLink in its consolidated financial statements since the date of acquisition through December 31, 2015, including revenue of $1.2 million and operating income of $0.3 million. The Company will finalize its assessment of the fair value of the assets and liabilities assumed at acquisition date during 2016 and does not expect the completion of its assessment to have a material effect on its consolidated financial statements. BoardLink Purchase Price Allocation The following summarizes the preliminary fair value of acquired assets and liabilities assumed (in thousands): Useful Life (in years) Current assets $ — Deferred revenue ) — Intangible assets: Customer contracts Developed technology Transition services agreement Tradename Goodwill — ​ ​ ​ ​ ​ ​ ​ ​ Total purchase consideration $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The financial information in the table below summarizes the combined results of the operations of the Company and BoardLink, on a pro forma basis, as though the companies had been combined as of January 1, 2014. The pro forma financial information for BoardLink is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2014 or of results that may occur in the future. The pro forma results include adjustments for salaries and other employer related costs for acquired employees, amortization of acquired intangible assets and fees for transition services being performed by Thomson Reuters The following table presents the unaudited pro forma results of the Company for the years ended December 31, 2015 and 2014 as if the acquisition of BoardLink occurred on January 1, 2014 (in thousands): Year ended December 31, 2015 2014 Pro forma total revenue $ $ Pro forma net income $ $ Pro forma earnings per share—basic $ $ Pro forma earnings per share—diluted $ $

Intangible Assets and goowill

Intangible Assets and goowill	12 Months Ended
	Dec. 31, 2015
Intangible assets and goodwill
Intangible assets and goodwill	5) Intangible assets and goodwill During the first quarter of 2015, the Company began to capitalize costs related to the development of a new SaaS collaboration tool, ("Diligent Teams" or "Teams"). The initial version of Teams was ready for its intended use and a limited release was made available for customer subscription as of September 30, 2015. The amount of capitalized costs during the year ended December 31, 2015 was $4.9 million and no such costs were capitalized as of December 31, 2014. The Company began to amortize the capitalized costs associated with the development of Teams during the fourth quarter of 2015. Direct development costs related to software enhancements for Boards that add functionality are permitted to be capitalized and amortized over their useful lives, however the Company has not historically maintained sufficient detail records of its development efforts for Boards and has not capitalized such costs. The gross carrying amount and accumulated amortization of the Company's intangible assets are as follows: December 31, 2015 Amortization Period Gross Value Accumulated Amortization Net Carrying Value (in years) (in thousands) Customer contracts $ $ ) $ Capitalized internal-use software ) Trademarks ) Developed technology ) Transition services agreement ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2014, the Company had trademarks with a useful life of 5 years. The gross value, accumulated amortization and net carrying value was equal to $0.3 million, less than $0.1 million and $0.3 million, respectively. Amortization expense of intangible assets for 2015 and 2014 was $0.5 million and less than $0.1 million, respectively, of which $0.3 million was included in Cost of revenue in 2015. The Company's estimate of future amortization expense for intangible assets that exist at December 31, 2015 is as follows: Year ending December 31, Amount (in thousands) 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The changes in the carrying value of goodwill for the year ended December 31, 2015 is as follows: Carrying Amount Balance, December 31, 2014 $ — Acquisition of BoardLink ​ ​ ​ ​ ​ Balance, December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Property and equipment and obli

Property and equipment and obligations under capital leases	12 Months Ended
	Dec. 31, 2015
Property and equipment and obligations under capital leases
Property and equipment and obligations under capital leases	6) Property and equipment and obligations under capital leases Property and equipment is comprised of the following: December 31, 2015 2014 (in thousands) Equipment $ $ Purchased computer software Leasehold improvements ​ ​ ​ ​ ​ ​ ​ ​ Less: Accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net property and equipment $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization expense for the years ended December 31, 2015, 2014 and 2013 were $3.7 million, $2.8 million and $1.6 million, respectively. Obligations under capital leases consist of various financing arrangements entered into by the Company to acquire computer equipment and software. Leases outstanding at December 31, 2015 bear interest at rates ranging from 3.8% to 5.5% per annum, with monthly payments of less than $0.1 million and mature on February 1, 2016. Each lease is secured by the underlying leased asset. Amortization of assets recorded under capital leases is included in depreciation expense. The assets relating to capital leases, included in property and equipment on the balance sheet, are as follows: December 31, 2015 2014 (in thousands) Capital lease assets included in equipment $ $ Capital lease assets included in computer software Less: Accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation expense relating to assets acquired under capital leases was $0.5 million, $0.6 million and $0.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. Future minimum lease payments due under capital leases agreements as of December 31, 2015: Year ending December 31, Future Minimum Lease Payments (in thousands) 2016 $ Less interest portion of payments ) ​ ​ ​ ​ ​ Present value of minimum lease payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accrued expenses and other curr

Accrued expenses and other current liabilities	12 Months Ended
	Dec. 31, 2015
Accrued expenses and other current liabilities
Accrued expenses and other current liabilities	7) Accrued expenses and other current liabilities Accrued expenses and other current liabilities are comprised of the following: December 31, 2015 2014 (in thousands) Accrued commissions, bonuses, and payroll $ $ Performance cash award Accrued sales taxes Accrued preferred stock dividend Other (individually less than 5% of total current liabilities) ​ ​ ​ ​ ​ ​ ​ ​ Total accrued expenses and other liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Geographic information

Geographic information	12 Months Ended
	Dec. 31, 2015
Geographic information
Geographic information	8) Geographic information The Company's revenue, by geographic location of the customer, and long-lived assets located outside the Americas are as follows: Year ended December 31, 2015 2014 2013 (in thousands) Revenues: Americas $ $ $ EMEA Asia Pacific ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 2014 2013 Long-lived assets outside the United States, net $ $ $

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2015
Income taxes
Income taxes	9) Income taxes Income before provision for income taxes is comprised of the following: Year ended December 31, 2015 2014 2013 (in thousands) Domestic $ $ $ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Domestic income includes intercompany charges to foreign affiliates for management fees, cost sharing and royalties. Foreign income includes the income from all of the Company's foreign subsidiaries, including the Singapore subsidiary, which is a disregarded entity for U.S. income tax purposes. The components of income tax expense for the years ended December 31, were as follows: Year ended December 31, 2015 2014 2013 (in thousands) Income tax expense: Current: Federal $ $ $ State and Local Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: Federal $ ) $ ) $ ) State and Local ) ) ) Foreign ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax expense: $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The income tax provision differs from the amount of tax determined by applying the U.S. federal statutory rate as follows: Year ended December 31, 2015 2014 2013 (in thousands) Federal income tax statutory rate % % % State and local income taxes, net of federal benefit Tax credits related to research activity ) ) ) Stock-based compensation Other permanent differences ) Effect of non-U.S. operations ) ) ) Return to provision adjustments ) Change in unrecognized tax positions — Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following is a summary of the Company's deferred tax assets and liabilities: December 31, 2015 2014 (in thousands) Deferred tax assets (liabilities) Net operating loss and tax credit carryforwards $ $ Deferred revenue Stock-based compensation Deferred compensation Accruals and reserves Other Fixed assets ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2015, the Company had federal and state income tax net operating loss carryforwards of $4.9 million, which expire at various dates from 2028 through 2029. Beginning in 2013, the Company's annual net operating loss carryforward became subject to a limitation of approximately $0.4 million to offset expected taxable income until expiration of the carryforwards. Based on this limitation, the Company expects that approximately $4.9 million of its total net operating loss carryforwards will expire unutilized in 2029. A full valuation allowance had previously been provided on the related deferred tax asset, and therefore the deferred tax asset and valuation allowance relating to the net operating loss carryforwards expected to expire unutilized were written off. The amounts recorded as net deferred tax assets represent the amount of tax benefits of existing deductible temporary differences and loss carryforwards that are more likely than not to be realized through the generation of sufficient future taxable income within the carryforward period. Significant management judgment is required in determining any valuation allowance recorded against deferred tax assets. We have established a liability for unrecognized tax benefits that management believes to be adequate. Once established, unrecognized tax benefits are adjusted if more accurate information becomes available, or a change in circumstance or an event occurs necessitating a change to the liability. Given the inherent complexities of the business and that we are subject to taxation in a substantial number of jurisdictions, we routinely assess the likelihood of additional assessment in each of the taxing jurisdictions. The following is a reconciliation of unrecognized tax benefits: Year ended December 31, 2015 2014 2013 (in thousands) Beginning balance $ $ $ Additions for tax positions of prior years — — — Reductions for tax positions of prior years — — — Additions for tax positions of current year Reductions for tax positions of current year — — — Reductions due to settlements — ) — Reductions due to lapse of statute of limitaitons — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending balance $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The total amount of unrecognized benefits that, if recognized, would affect our effective tax rate was $0.9 million, $0.8 million and $0.4 million at December 31, 2015, 2014 and 2013, respectively. The Company does not anticipate any significant changes in its reserves for uncertain tax benefits within the next 12 months. The Company classifies interest and penalties on uncertain tax positions in income tax expense. The amount of interest and penalties related to uncertain tax positions was not significant in 2015, 2014 or 2013. As of December 31, 2015, 2014 and 2013, the undistributed earnings in our international subsidiaries were $9.0 million, $8.1 million and $2.9 million, respectively. Undistributed earnings of the Company's foreign operations are intended to remain indefinitely invested, and accordingly, no U.S. income taxes have been provided on these earnings. If at some future date these earnings cease to be indefinitely invested, the Company may be subject to U.S. income taxes and foreign withholding and other taxes on such amounts. Because the time and manner of repatriation is uncertain, we cannot reasonably estimate the amount of the deferred income tax liability relating to unrepatriated earnings at this time. The Company and its subsidiaries are subject to regular audits by federal, state and foreign tax authorities. These audits may result in additional tax liabilities. The Company's U.S. federal and state income tax returns for the tax years 2012 and forward are open for examination by the taxing jurisdictions. The Company's foreign income tax returns are open for examination by the local taxing jurisdictions for the following years: New Zealand—2010 and forward; U.K.—2012 and forward; Australia—2012 and forward.

Redeemable Preferred Stock

Redeemable Preferred Stock	12 Months Ended
	Dec. 31, 2015
Redeemable Preferred Stock
Redeemable Preferred Stock	10) Redeemable Preferred Stock In March 2009, the Company issued 30 million shares of Series A Preferred Stock for $0.10 per share in a private offering, providing aggregate gross proceeds of $3 million. Expenses relating to the share issuance were $0.1 million. The principal terms of the Preferred Shares are as follows: Dividend rights—The Preferred Shares carry a fixed, cumulative, dividend of 11% per annum (adjusted for stock splits, consolidation, and other factors). The dividend, which is due on the first business day of each calendar year for the prior year, may (at the Company's option) be paid either in cash or in kind by the issuance of additional Preferred Shares (PIK Shares), to be issued at the same issue price as the Series A. Preferred Stock of $0.10 per share—The 11% annual dividend on the Preferred Shares will have preference over the declaration or payment of any dividends on the Company's common stock. In addition to the 11% preferred dividend, the holders of the Preferred Shares are also entitled to participate pro rata in any dividend paid on the Company's common stock. Conversion rights—The Preferred Shares are convertible at any time at the option of the holders into the Company's common stock on a one-for-one basis. In addition, Preferred Shares will automatically be converted into common stock upon the closing of an underwritten share offering by the Company on a registered stock exchange which realizes at least $40 million of gross proceeds. Redemption rights—The holders of the Preferred Shares have the option to require the Preferred Shares (including any PIK shares) to be redeemed in cash, at $0.10 per share plus accrued and unpaid dividends, at any time after 60 months from the date of issue of the Preferred Shares. Any redeemed amounts will be paid in four equal quarterly installments commencing 60 days after the redemption request. Anti-Dilution Provision—In the event of a future offering of the Company's stock at a price per common share which is less than the Preferred Share conversion rate immediately before such offering, the conversion price for the Preferred Shares is adjusted according to a weighted average formula. Liquidation preference—In the event of any voluntary or involuntary liquidation of the Company, the holders of Preferred shares are entitled to an amount per Preferred Share equal to 1.5 times the original issue price of $0.10 plus any accrued but unpaid dividends. In addition, the holders of preferred shares participate on a pro rata, as converted basis, in the distribution of any remaining assets after payment of the liquidation preference. A merger or acquisition of the Company is considered a deemed liquidation event. Voting rights—Preferred Shares have equal voting rights (one vote per share) to common stock, except that Preferred Shares do not vote in the general election of directors. Other provisions—For as long as not less than 15 million Preferred Shares are outstanding, the holders of the Preferred Shares have the right between them to appoint one director, and the Company may not take action relating to certain major transactions, including a merger or acquisition, without obtaining the consent of not less than 60% of the Preferred Shares or without obtaining the approval of the director appointed by the holder of the Preferred Shares (for matters requiring Board of Directors approval). Accounting for Preferred Shares—If certain criteria are met, companies must bifurcate conversion options from their host instruments and account for them as free standing derivative instruments. The Company has evaluated the redemption, conversion and contingent conversion features of the Preferred Shares and determined that the embedded conversion option is not required to be bifurcated. Additionally, the Company analyzed the conversion feature and determined that the effective conversion price was higher than the market price at date of issuance; therefore no beneficial conversion feature was recorded. However, if the Company were to pay Preferred Stock dividends by issuing PIK shares, the issuance of such PIK shares would result in a beneficial conversion feature if the fair value of the Company's common stock at the dividend declaration date exceeds the per share conversion price of the Preferred Shares. The Company has classified the Preferred Shares as temporary equity because they are redeemable upon the occurrence of an event that is not solely within the control of the issuer. As noted above, the holders of the Preferred Shares may demand redemption at any time after 60 months from the date of issue. The carrying value of the securities, which were initially recorded at their face value net of issuance costs, is increased to the redemption value over the period from the date of issuance to the earliest potential date of redemption. In March 2014, Carroll Capital Holdings and Spring Street Partners, L.P. converted 889,219 and 1,777,904 shares of Series A Preferred Stock, respectively, to an equivalent number of shares of common stock.

Stockholders' equity

Stockholders' equity	12 Months Ended
	Dec. 31, 2015
Stockholders' equity
Stockholders' equity	11) Stockholders' equity The Company has reserved 47.4 million shares to be issued upon conversion of its Series A Preferred Stock, outstanding stock options, restricted stock units, preferred stock units and shares available for future issuance under its existing Stock Option and Incentive Plans. Spring Street Partners, L.P., a holder of the Series A Preferred Stock, waived its right to the preferred stock dividend payable on January 3, 2013 in the amount of $0.2 million. This was recorded as a non-cash capital contribution in 2013. The founder and managing partner of Spring Street Partners, L.P. is also the Chairman of the Board of Directors of the Company.

Stock option and incentive plan

Stock option and incentive plans	12 Months Ended
	Dec. 31, 2015
Stock option and incentive plans
Stock option and incentive plans	12) Stock option and incentive plans In November 2007, the Company adopted the 2007 Stock Option and Incentive Plan (the "2007 Plan") authorizing the issuance of up to 10 million shares of the Company's common stock as awards to selected employees, directors and consultants of the Company and its affiliates, in the form of incentive stock options, non-qualified stock options, and restricted shares of common stock. In June 2010, the Company adopted the 2010 Stock Option and Incentive Plan (the "2010 Plan") authorizing the issuance of up to 5 million shares of the Company's common stock to employees, directors and consultants of the Company and its affiliates, as incentive stock options and non-qualified stock options. The 2010 Plan was amended in April 2012 to authorize the issuance of an additional 2.5 million shares. The Company's Board of Directors or the Compensation Committee determined the number of shares, the term, the frequency and date, the type, the vesting periods, and any performance criteria pursuant to which stock option awards may be granted and the restrictions and other terms and conditions of each grant of restricted shares in accordance with the terms of the 2007 and 2010 Plans. On May 3, 2013, the Board adopted the Diligent Corporation 2013 Incentive Plan (the "Plan"), which was approved by the Company's stockholders in June 2013. An aggregate of 15.5 million shares of the Company's common stock may be issued pursuant to the Plan to employees, directors and consultants of the Company and its affiliates as of December 31, 2015. The Company has reserved 4.1 million shares for issuance in connection with the replacement incentive awards issued in accordance with the former CEO Substitute Remuneration Package as discussed below. In April 2015, the shareholders' approved an increase in the shares reserved for issuance under the Plan of 7.0 million. As of December 31, 2015, 4.4 million shares were available for future issuances of awards under the Plan. As of the date of approval of the 2013 Plan, 46 thousand and 2.6 million shares remained available for issuance under the 2007 and 2010 Plans, respectively. Upon approval of the 2013 Plan, the Company discontinued use of the 2007 and 2010 Plans and no shares remain available for future issuance under these plans. Awards under the Plan may be made in the form of stock options (which may constitute incentive stock options or nonqualified stock options), share appreciation rights, restricted shares, restricted share units, performance awards, bonus shares and other awards. In addition, certain awards under the Plan may be denominated or settled in cash, including performance awards. The Company's standard remuneration package for non-executive directors consists of both a cash component, designed to compensate members for their service on the Board and its Committees, and an equity component. The total value of the standard remuneration package is $0.1 million per annum, of which 38% is payable in cash and the remainder in common stock In December 2012, the Company's Board of Directors authorized a Special Committee of independent directors to conduct a review of the Company's past stock issuances and stock option grants to determine whether they were in accordance with the relevant incentive plans. The Special Committee found that three option awards—one under the 2007 Stock Option and Incentive Plan ("2007 Plan"), and two under the 2010 Stock Option and Incentive Plan ("2010 Plan")—exceeded the applicable plan caps on the number of shares covered by an award issued to a single recipient in a particular year. Specifically, a 2009 award to the former Chief Executive Officer (CEO) exceeded the cap in the 2007 Plan by 1.6 million shares, a 2011 award to the former CEO exceeded the cap in the 2010 Plan by 2.5 million shares, and a 2011 award to another officer exceeded the cap in the 2010 Plan by 250,000 shares. In May 2013, the Company and the Company's former CEO entered into a Replacement Grant Agreement providing for the cancellation of the affected stock options and the issuance of a replacement award, which was to become effective upon the occurrence of certain future events. In June 2013, the Company entered into an agreement with respect to the options issued to the other officer in excess of the applicable plan cap, under which 250,000 options were cancelled, the vesting schedule for the remaining nonvested options were extended over a four and a half year period, and replaced with 150,000 restricted stock units, with graded vesting over four and a half years. The modification of this award resulted in less than $0.1 million of additional compensation expense. In December 2013, the Company and the former CEO entered into an Amendment to Replacement Grant Agreement which finalized the terms of the incentive compensation package to be provided to the Company's former CEO in substitution for certain awards that exceeded the applicable plan caps. Under the terms of the Amendment to Replacement Grant Agreement, on December 23, 2013 (the "Grant Date"), the former CEO's fully vested option to purchase 2.4 million shares of the Company's common stock for an exercise price of U.S. $0.14 per share was cancelled to the extent it was in excess of the applicable plan cap, consisting of 1.6 million of such shares. In exchange for the cancellation of the relevant portion of the award, the former CEO received: • An option to purchase 1.6 million shares of common stock having an exercise price of U.S. $2.79, which was the Company's closing price per share expressed in U.S. dollars on the last trading day on the NZX Main Board immediately prior to the Grant Date (the "Exercise Price") of December 23, 2013. The option vested on December 31, 2013, and has a term of ten years from the Grant Date. • A performance cash award of U.S. $4.2 million, determined based on 1.6 million multiplied by the excess of the Exercise Price of U.S. $2.79 over U.S. $0.14. The former CEO's right to receive such cash award was contingent on the Company achieving revenue growth of at least 7% during the twelve month period ended June 30, 2014 and his continued employment through such date. This revenue target was achieved and the cash award was to be paid in three equal annual installments. The first installment in the amount of $1.4 million was paid in the third quarter of 2014, the second installment was paid in the first quarter of 2015 and the final installment will be paid in the first quarter of 2016, or, if earlier, upon a change in control of the Company or the former CEO's separation from service. Effective March 31, 2015, the former CEO became the Company's Chief Product Strategy Officer. Any payment due on any installment date will be proportionally reduced if the sum of the Company's stock price plus dividends for a measurement period prior to each payment date falls below 75% of the Exercise Price. The remaining liability for the performance cash award of $1.4 million is recorded in accrued expenses and other current liabilities on the consolidated balance sheet as of December 31, 2015. In addition, the former CEO held an option to purchase 3.0 million shares of the Company's common stock for an exercise price of U.S. $0.82 per share, which remained subject to vesting. Under the terms of the Amendment to Replacement Grant Agreement, the Company cancelled the portion of such option in excess of the applicable plan cap, consisting of 2.5 million of such shares. In exchange for the cancellation of the relevant portion of the award, the former CEO received: • Performance share units ("PSUs") for 2.25 million shares of common stock issuable contingent on Diligent achieving revenue growth of at least 7% during the twelve month period ended June 30, 2014. Effective June 30, 2014, the Company's revenues met the performance requirement of at least seven percent (7%) growth over the performance period as compared to the period from July 1, 2012 through June 30, 2013. The PSUs were determined to be earned and the award will vest in four equal installments based on continued employment, commencing June 30, 2015, with full vesting occurring on June 30, 2018. The delivery dates for the vested performance shares will be 50% in 2018 and 50% in 2019 or, if earlier, upon a change in control of the Company or the former CEO's separation from service. • PSUs for up to 250,000 shares of common stock contingent on Diligent achieving either at least 15% fully diluted EPS growth (adjusted to exclude stock-based compensation expense and extraordinary items) or 15% total stockholder return ("TSR") growth in four one-year measurement periods beginning April 1, 2013 (the "Level 2 PSU Agreement"). TSR growth is measured based on Diligent's stock price performance during the 20 trading days prior to the relevant measurement date. The Level 2 PSU Agreement provides that 62,500 shares of common stock (the "Level 2 Performance Shares") will be earned in each year for which the applicable target is met, with the additional opportunity to earn such shares at the end of the four year performance period if the cumulative fully diluted EPS growth or TSR growth meet the cumulative performance target. The delivery dates for the vested performance shares will be in 2018 or, if earlier, upon a change in control of the Company or the former CEO's separation from service. The vesting of the options, performance cash award and performance stock units described above will be subject to certain acceleration provisions in the event of a change in control of the Company, upon death or disability or if the CEO is terminated without cause or resigns for good reason. The Company recorded compensation expense of $1.0 million, $3.1 million and $2.9 million during the years ended December 31, 2015, 2014 and 2013, respectively, relating to the replacement awards. The performance stock units are expected to result in compensation cost of $0.4 million in 2016, $0.2 million in 2017 and $0.1 million in 2018. On March 31, 2015, the Company and the former CEO entered into a Deferred Share Award Agreement (the "Deferred Share Award Agreement") to give effect to the Company's agreement that the former CEO would have been eligible to receive the first tranche of the Level 2 Performance Shares pursuant to the Level 2 PSU Agreement, after giving effect to the restatement of the Company's financial statements. The Company calculated a new baseline EPS for the period beginning April 1, 2013 through March 31, 2014 using post-restatement amounts (the "New Baseline EPS") and concluded that the former CEO earned the first tranche of 62,500 shares of common stock, based on the achievement of 15% growth of fully diluted EPS during the period from April 1, 2013 through March 31, 2014. The agreement to utilize the New Baseline EPS is considered an award modification and triggers a revaluation of the Level 2 Performance Shares on the modification date, which in this instance was March 31, 2015. Consequently, the Company revalued the Level 2 Performance Shares and is expensing the Level 2 Performance Shares based on the grant date fair value of the original award plus the incremental fair value of the modified award. The incremental expense associated with the revaluation of the Level 2 Performance Shares resulted in an additional expense of $0.3 million to be recognized over their original expected vesting dates. Stock Options The exercise price of each option is the market price of the Company's stock for the last sale prior to the grant date, converted to U.S. dollars using the exchange rate in effect on the grant date. The options generally expire after a period not to exceed ten years, except in the event of termination, whereupon vested options must be exercised generally within three months, or upon death or disability, in which cases the vested options must be exercised within twelve months, but in all cases the exercise date may not exceed the expiration date. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model. The resulting fair value is recognized as share-based compensation expense on either a straight line basis for options that are subject to cliff vesting or a graded basis for options that vest in annual installments, over the option vesting period. Stock options generally vest over four years but vesting periods range from two to six years. The fair value of options granted to nonemployees is initially measured at grant date and remeasured each quarter until the vesting date, which is the measurement date for share-based compensation issued to nonemployees. The fair values were estimated using the following range of assumptions: Year Ended December 31, 2015 2014 2013 Expected volatility(1) 53.82 - 59.17% 50.56 - 50.94% 58.06 - 59.20% Expected term(2) 6.25 years 6.25 years 5.0 - 6.3 years Risk-free interest rate(3) 1.73 - 1.88% 1.98 - 2.26% 1.08 - 1.68% Dividend yield — — — (1) The expected volatility was determined using historical volatility data for comparable companies in 2014 and 2013 because the period of active trading history of the Company's common stock was less than the expected term of the options. (2) The expected term of the options has been estimated using the simplified method which calculates the average of the vesting period and the contractual term of the options, because the Company's limited historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term. (3) The risk free interest rate is based on the U.S. Treasury constant maturity nominal yield with a term approximately equal to the expected terms of the options. A summary of stock option activity for the year ended December 31, 2015 is as follows: Options Weighted Average Exercise Price (in thousands) Outstanding at January 1, 2015 $ Granted Exercised ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options vested and expected to vest ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The aggregate intrinsic value of the stock options exercisable at December 31, 2015, 2014 and 2013 was $11.7 million, $9.8 million and $6.5 million, respectively. The aggregate intrinsic value of options exercised during 2015, 2014 and 2013 $0.4 million, $0.4 million and $0.8 million, respectively. The aggregate intrinsic value of options expected to vest at December 31, 2015 was $0.8 million. Performance Stock Units In connection with the entry into an employment agreement with the Company's new CEO, and an amendment to the employment agreement of its former CEO, now its Founder and Chief Product Strategy Officer, on March 31, 2015, the Company granted PSUs providing for the issuance of up to an aggregate of 675,000 shares of common stock, with a grant date fair value of $2.7 million, to the new CEO and the Chief Product Strategy Officer. The shares of common stock underlying the PSUs are issuable contingent on the Company achieving revenue thresholds based on reported revenue over a trailing 12 month period measured at each quarter end date beginning on March 31, 2015 and ending on March 31, 2021. There are four performance thresholds and the performance share units will vest 25% upon the achievement of each performance threshold. The Company has determined that all four of the performance measures are probable to be met within the next four years and has begun recording compensation expense for each tranche on a graded basis from the grant date through the date each threshold is expected to be achieved. Vesting periods for the above mentioned PSUs range from one year to approximately four years. The Company issued PSUs providing for the issuance of up to an aggregate of 705,000 shares of common stock to certain executives in 2015. The grant date fair value of these shares is equal to $2.5 million. The shares of common stock underlying the PSUs are issuable contingent on the Company achieving revenue thresholds based on reported revenue over a trailing 12 month period measured at each quarter end date beginning on September 30, 2015 and ending on December 31, 2021. There are four performance thresholds and the performance share units will vest 25% upon the achievement of each performance threshold. The Company has determined that all four of the performance measures are probable to be met within the next four years and has begun recording compensation expense for each tranche on a graded basis from the grant date through the date each threshold is expected to be achieved. Vesting periods for the above mentioned PSUs range from one year to approximately four years. A summary of PSU activity for the year ended December 31, 2015 is as follows: Performance Stock Units Weighted Average Grant Date Fair Value Per Share (in thousands) Nonvested at January 1, 2015 $ Granted Vested ) Forfeited — — ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company estimates the fair value of the PSU's as of the grant date utilizing the closing price of its common stock on that date. Restricted Stock Units RSUs granted to employees vest on a graded vesting schedule over a period of two to four years, as long as such employee remains in the employ of the Company on each vesting date. The grant date fair value is equal to the market price of the Company's stock on the date of grant, converted to U.S. dollars using the prior day's exchange rate. A summary of RSU activity for the year ended December 31, 2015 is as follows: Restricted Stock Units Weighted Average Grant Date Fair Value Per Share (in thousands) Nonvested at January 1, 2015 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company estimates the fair value of the RSUs as of the grant date utilizing the closing price of its common stock on that date. The vesting of the options, performance cash award, PSUs and RSUs described above will be subject to certain acceleration provisions in the event of a change in control of the Company, upon death or disability or termination without cause or resignation for good reason. A summary of share-based compensation (excluding shares issued to the board of directors) for the year ended December 31, 2015, 2014 and 2013 is as follows: Year Ended December 31, 2015 2014 2013 (in thousands) Stock options $ $ $ Performance stock units — Restricted stock units ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The total income tax benefit recognized in the income statement for share-based compensation costs was $0.1 million $0.2 million and $0.8 million for 2015, 2014 and 2013, respectively. At December 31, 2015 there was $13.5 million of unrecognized share-based compensation expense, which includes $1.9 million for stock options, $7.1 million for RSUs and $4.5 million for PSUs. The weighted average period for this cost to be recognized is 1.2 years. For awards that are expected to result in a tax deduction, a deferred tax asset is recorded in the period in which share-based compensation is recognized. Any corporate income tax benefit realized upon exercise of a stock option award in excess of that previously recognized in earnings (referred to as an excess tax benefit) is presented in the consolidated statements of cash flows as a financing cash flow. Realized excess tax benefits are credited to additional paid-in-capital in the consolidated balance sheet and statement of changes in stockholders' equity. Realized shortfall tax benefits (amounts which are less than that previously recognized in earnings) are first offset against the cumulative balance of excess tax benefits, if any, and then charged directly to income tax expense. The Company sponsors a defined contribution 401(k) plan, which covers all U.S. employees. The Company's matching contribution to the plan was $0.7 million $0.5 million and $0.4 million in 2015, 2014 and 2013, respectively.

Commitments

Commitments	12 Months Ended
	Dec. 31, 2015
Commitments
Commitments	13) Commitments Operating leases The Company has non-cancelable operating lease agreements for office space in the United States and certain foreign locations which expire at various dates through 2024. Rent expense for leases with rent escalations is recognized on a straight-line basis over the term of the lease. Rent expense under operating leases for the years ended December 31, 2015, 2014 and 2013 was $2.0 million, $1.8 million and $1.3 million, respectively. The lease agreements require security deposits in the amount of $0.8 million at December 31, 2015 and 2014, which is recorded in the consolidated balance sheet. The Company entered into a sub-lease that commenced in February 2015 and will terminate in February 2018. The Company will receive rental income of $0.5 million and have operating rent expense of $0.3 million from the commencement date through the end of the lease. The Company entered into a sub-lease that commenced in May 2014 and will terminate in February 2018. The Company will receive rental income of $0.4 million and have operating rent expense of $0.4 million from the commencement date through the end of the lease. The Company entered into a sub-lease that commenced in December 2013 and will terminate in February 2018. The Company will receive rental income of $0.8 million and have operating rent expense of $0.9 million from the commencement date through the end of the lease. During the year ended December 31, 2013, the Company recorded a loss of $0.1 million related to the sublease that has been charged to rent expense. Future minimum lease payments and sublease income for leases that have initial or non-cancelable lease terms in excess of one year at December 31, 2015 are as follows: Year ending December 31, Minimum Lease Commitments Subleases Minimum Net Rentals (in thousands) 2016 $ $ ) $ 2017 ) 2018 ) 2019 2020 Thereafter ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warranties and indemnification The Company's service is warranted to perform in a manner materially consistent with its marketing and training materials, specifications and technical information provided to users. The Company's arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third-party's intellectual property rights. To date, the Company has not incurred any material costs as a result of such indemnifications and has not accrued any liabilities related to such obligations. The Company has also agreed to indemnify its directors and officers to the fullest extent allowed under applicable law for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person's services as a director or officer of the Company, or arising as a result of that person serving at the request of the Company as a director, officer, employee or agent of another enterprise. The Company maintains director and officer insurance coverage that should enable the Company to recover a portion of any future amounts paid.

Contingencies

Contingencies	12 Months Ended
	Dec. 31, 2015
Contingencies
Contingencies	14) Contingencies Sales tax States and certain local taxing jurisdictions have differing rules and regulations governing sales and use taxes, and these rules and regulations are subject to varying interpretations that may change over time. In particular, the applicability of sales taxes to our subscription services in various jurisdictions is unclear. We have recorded sales tax provisions of $1.5 million and $2.1 million as of December 31, 2015 and 2014, respectively, with respect to sales and use tax liabilities in various states and local jurisdictions. It is possible that we could face sales tax audits and that our liability for these taxes could exceed our estimates as state tax authorities could assert that we are obligated to collect additional amounts as taxes from our customers and remit such taxes to those authorities. We could also be subject to audits with respect to states and international jurisdictions for which we have not accrued tax liabilities. A successful assertion that we should be collecting additional sales or other taxes on our services in jurisdictions where we have not historically done so and do not accrue for sales taxes could result in substantial tax liabilities for past sales, discourage customers from purchasing our application or otherwise harm our business and operating results. Litigation and claims In the ordinary course of business, Diligent is a party to pending legal proceedings and claims. Although the outcome of such items cannot be determined with certainty, Diligent's General Counsel and management are of the opinion that the final outcome will not have a material effect on the Company's financial position, results of operations or cash flows. NZX Listing Rules In June 2014, New Zealand time, the Company received notification from the NZX Limited ("NZX") in respect to alleged breaches of the NZX Listing Rules for the delayed release of the 2013 annual report, the 2013 full year preliminary announcement and the 2013 interim report. The notification informed the Company that the NZX has determined to refer the Company's alleged breaches to the NZ Markets Disciplinary Tribunal. Any actions by the NZX Limited, and any action taken by the NZ Markets Disciplinary Tribunal, does not foreclose the risk of litigation or other regulatory actions relating to the historical instances of non-compliance identified. Due to the instances of non-compliance, the Company may be subject to an increased risk of regulatory actions, claims or litigation, the defense of which would require the Company's management to devote significant attention and to incur significant legal expense and which could require us to pay substantial judgments, settlements, fines or other penalties. In September 2014, the NZ Markets Disciplinary Tribunal approved a settlement reached by the Company and the NZX regarding the breaches of the NZX Listing Rules by the Company relating to the delayed reports described above. The settlement provided for the payment of fines and costs by the Company, consisting of less than $0.1 million as a penalty to the NZX Discipline Fund and less than $0.1 million towards the cost of NZXR. In June 2015, the NZ Markets Disciplinary Tribunal approved a settlement reached by the Company and the NZX regarding the breaches of the NZX Listing Rules by the Company, relating to the Company not having the required minimum of two New Zealand resident directors from the period of April 9, 2015 to April 29, 2015. The settlement provided for the payment of less than $0.1 million towards the costs of NZXR and was paid as of December 31, 2015.

Risks and uncertainties

Risks and uncertainties	12 Months Ended
	Dec. 31, 2015
Risks and uncertainties
Risks and uncertainties	15) Risks and uncertainties Concentrations of credit and other risks Financial instruments which potentially subject the Company to concentrations of credit risk consist of trade accounts receivable, cash and money market funds. The Company sells its service to a diverse number of customers and performs ongoing credit evaluations of its customers' financial condition as part of its accounts receivable monitoring procedures. No single customer accounted for more than 10% of the accounts receivable balance at December 31, 2015 and 2014. No single customer generated more than 10% of revenue in 2015, 2014 or 2013. Our cash and money market funds which are classified as cash and cash equivalents, are maintained with high credit quality banking institutions in the United States, New Zealand and Great Britain. At times the cash balances may be in excess of the insurance limits at a particular bank.

Subsequent events

Subsequent events	12 Months Ended
	Dec. 31, 2015
Subsequent events
Subsequent events	16) Subsequent events On February 12, 2016, Diligent entered into a Merger Agreement with entities formed by funds managed by Insight. Under the terms of the Merger Agreement, Diligent stockholders will have a right to receive $US 4.90 in cash for each share of Diligent common stock and $US 5.05 in cash for each share of Diligent preferred stock, plus accrued and unpaid dividends thereon. The transaction is subject to the approval of a majority of the outstanding shares of Diligent common stock and preferred stock, voting as one class; the approval of at least 60% of the outstanding Diligent preferred stock, voting separately; regulatory approvals and other customary closing conditions, including that the Company's existing directors will resign upon closing. The holders of Diligent's preferred stock, including Spring Street Partners, L.P., Diligent's largest shareholder, have entered into voting agreements covering both their preferred and common shares in support of the transaction. The Merger Agreement contains certain termination rights for both the Company and the Insight entities, including, among others, if the transactions contemplated by the Merger Agreement are not consummated on or before June 13, 2016, or if the Company terminates the Merger Agreement in accordance with its terms in order to accept a superior proposal. If the Merger Agreement is terminated by Insight as a result of a breach by the Company of its representations, warranties, covenants or agreements such that the closing conditions would not be satisfied, or terminated by either Insight or the Company because the stockholders of the Company fail to adopt the Merger Agreement, the Company will be required to pay the reasonable out of pocket expenses of Insight up to US$7,500,000 and up to US$5,000,000, respectively (which payment shall reduce any termination fee payable by the Company). The Company has agreed to pay Insight a termination fee of US$19,463,000 (less any expenses previously paid to Insight) if the Merger Agreement is terminated under specified circumstances. Insight has agreed to pay the Company a termination fee of US$33,365,000 if the Merger Agreement is terminated because Insight fails to consummate the merger or breaches its representations, warranties, covenants and agreements. Insight and the Company have made customary representations, warranties and covenants in the Merger Agreement. The Company has agreed, among other things, to covenants relating to the conduct of its business during the interim period between the execution of the Merger Agreement and the consummation of the Merger. The Company is subject to certain restrictions on the conduct of its business, including the ability in certain cases to enter into contracts, acquire or dispose of assets, incur indebtedness or incur capital expenditures, until the proposed merger closes or the merger agreement terminates. The Merger Agreement also includes covenants requiring the Company not to solicit competing takeover proposals, or provide information to, or engage in discussions with, third parties, subject to customary exceptions that permit the Board to take certain actions in response to unsolicited proposals that constitute or could reasonably be expected to result in a superior proposal, if the failure to take such action would reasonably be expected to be inconsistent with the fiduciary duties of the Board under applicable law. If approved by the Company's stockholders, it is expected that the Merger will close in the second quarter of 2016. The merger related costs for the year ended December 31, 2015 were $0.4 million and are included in General and administrative expenses in the consolidated statements of income.

Selected quarterly financial da

Selected quarterly financial data (unaudited)	12 Months Ended
	Dec. 31, 2015
Selected quarterly financial data (unaudited)
Selected quarterly financial data (unaudited)	17) Selected quarterly financial data (unaudited) The following table sets forth certain unaudited quarterly financial information for fiscal 2015 and 2014. The Company has prepared the unaudited information on a basis consistent with its audited financial statements and has included all adjustments of a normal and recurring nature, which, in the opinion of management, are considered necessary to fairly present the Company's revenue and operating expenses for the quarters presented. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal Year (in thousands, except per share amounts) Fiscal 2015 Revenues $ $ $ $ $ Cost of revenues (excluding depreciation and amortization) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit Total operating expenses Operating income Net income Accrued preferred stock dividends ) ) ) ) ) Net income attributable to common stockholders Basic net income per share $ $ $ $ $ Diluted net income per share $ $ $ $ $ 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal Year (in thousands, except per share amounts) Fiscal 2014 Revenues $ $ $ $ $ Cost of revenues (excluding depreciation and amortization) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit Total operating expenses Operating income Net income Accrued preferred stock dividends ) ) ) ) ) Net income attributable to common stockholders Basic net income per share $ $ $ $ $ Diluted net income per share $ $ $ $ $

Significant accounting polici26

Significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2015
Significant accounting policies
Basis of Presentation	Basis of Presentation The Company's consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made by management include the deferral and recognition of revenue, the fair value of share-based compensation, accounting for income and other taxes, including the realization of deferred tax assets and uncertain tax positions, the fair value of acquired assets and assumed liabilities arising from business combinations and the useful lives of tangible and intangible assets. Actual results could differ from those estimates. Effective January 1, 2015, the Company began allocating facility and related costs and certain costs associated with its Enterprise Resource Planning system to Cost of revenues, Selling and marketing, General and administrative, and Research and development. Previously such costs had been presented within General and administrative expenses. Such costs are allocated based on a department's proportionate share of total employee headcount. The Company also changed the presentation of sales-related incentive commissions paid to customer success personnel from Cost of revenues to Selling and marketing. The Company determined that these changes would better reflect industry practice and would provide more meaningful information as well as increased transparency of its operations. To conform the 2014 presentation to the current year presentation, $2.2 million was reclassified from General and administrative, of which $0.2 million was included in Costs of revenues, $1.4 million was included in Selling and marketing, and $0.6 million was included in Research and development. Such reclassifications had no effect on previously reported operating income, net income or retained earnings. To conform the 2013 presentation to the current year presentation, $1.4 million and $0.5 million was reclassified from General and administrative and Cost of revenues, respectively, of which $1.7 million was included in Selling and marketing and $0.2 million was included in Research and development. Such reclassifications had no effect on previously reported operating income, net income or retained earnings.
Principles of Consolidation	Principles of Consolidation The financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. The Company invests its excess cash primarily in bank and money market funds of major financial institutions. Accordingly, its cash equivalents are subject to minimal credit and market risk.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The fair value of a financial instrument is the amount at which the instrument could be exchanged in an orderly transaction between market participants. As of December 31, 2015 and 2014, the carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses and other liabilities approximated fair value due to the short-term nature of these instruments. ASC 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy for input into valuation techniques as follows: i. Level 1 input—unadjusted quoted prices in active markets for an identical instrument; ii. Level 2 input—observable market data for the same or similar instrument but not Level 1, including quoted prices for identical or similar assets or liabilities in markets that are active or not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and iii. Level 3 input—unobservable inputs developed using management's assumptions about the inputs used for pricing the asset or liability. At December 31, 2014, cash equivalents include level 1 investments in U.S. treasury money market funds and treasury bills totaling $32.5 million, which are carried at cost, which approximates fair value. The fair value of money market funds was determined by reference to quoted market prices.
Property and Equipment	Property and Equipment Property and equipment consists of computer and office equipment, leasehold improvements and purchased internal-use computer software. Property and equipment are carried at cost, less accumulated depreciation and amortization and any impairment losses.
Depreciation and Amortization	Depreciation and Amortization Depreciation on property and equipment is computed on a straight line basis at rates adequate to recover the cost of the assets over their estimated useful lives, which range from three to five years. Leasehold improvements are depreciated over their estimated useful lives of the assets or the term of the underlying lease, whichever is shorter. Amortization of acquired intangible assets and purchased internal-use computer software is computed on the straight-line method over their estimated useful lives, which range from two to fifteen years. Expenditures for repair and maintenance costs are expensed as incurred.
Business Combinations	Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The acquisition method of accounting requires that purchase price, including the fair value of contingent consideration, of the acquisition be allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Payments made for contingent consideration recorded as part of an acquisition's purchase price are reflected as financing activities in the Company's Consolidated Statements of Cash Flows, if paid more than three months after the acquisition date. If paid within three months of the acquisition date, these payments are reflected as investing activities in the Company's Consolidated Statements of Cash Flows. Acquisition-related costs, such as legal, accounting and other costs incurred in connection with an acquisition are expensed as incurred. The Company includes the results of acquisitions in its Consolidated Financial Statements from the date of acquisition.
Goodwill	Goodwill Goodwill represents the excess of the purchase price of an acquired entity over the fair value of tangible and intangible assets acquired and liabilities assumed. Goodwill is not amortized but instead evaluated for impairment. We perform our annual impairment test of goodwill at the reporting unit level at October 1 each fiscal year or whenever events or circumstances change that would indicate that goodwill may not be recoverable. We have concluded that our operations constitute one operating segment and reporting unit. In conducting the impairment test, we can opt to perform a qualitative assessment to test goodwill for impairment or we can directly perform the two-step impairment test described below. Based on the qualitative assessment, if we determine that the fair value of a reporting unit is more likely than not (a likelihood of more than 50%) to be less than its carrying amount, the two-step impairment test will be performed. In the first step, we compare the fair value of the reporting unit to its carrying amount. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired and we are not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. In the second step, if the carrying value of a reporting unit's goodwill exceeds its implied fair value, then we would record an impairment loss equal to the difference. We did not recognize any goodwill impairment charges for the year ended December 31, 2015.
Acquired Intangible Assets	Acquired Intangible Assets Acquired intangible assets consist primarily of acquired customer contracts, developed technology and trade names. Acquired intangible assets are carried at cost, less accumulated amortization. Acquired intangible assets are amortized over their estimated period of benefit which approximates a straight-line basis over their estimated useful lives. Amortization expense for the year ended December 31, 2015, 2014 and 2013 was $0.2 million, less than $0.1 million and nil, respectively.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company periodically reviews the carrying amounts of its tangible and intangible assets to determine whether events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Measurement of an impairment loss for long-lived assets and identifiable intangible assets that management expects to hold and use is based on the fair value of the asset. An impairment loss is measured as the amount by which the carrying amount of the long-lived asset exceeds its fair value.
Revenue Recognition	Revenue Recognition The Company derives its revenues primarily from subscription fees and installation fees, including training. The Company sells subscriptions to its cloud-based application that are generally one year in length. Its arrangements do not include a general right of return and generally automatically renew unless the Company is notified 30 days prior to the expiration of the initial term. The Company's subscription agreements do not provide the customer the right to take possession of the software that supports the application. Installation fees consist of the configuration of the Company's service and training of its customers. Revenue recognition commences when all of the following conditions are met: • There is persuasive evidence of the arrangement; • The service has been made available to the customer; • The fee is fixed or determinable; and • The collectability of the fees is reasonably assured. Pursuant to the authoritative accounting guidance regarding revenue recognition for arrangements with multiple deliverables, for a deliverable to qualify as a separate unit of accounting, the delivered item must have value to the customer on a standalone basis. The Company has determined that the installation fee does not have standalone value, so accordingly, it accounts for its arrangements as a single unit of accounting. Revenue from the Company's subscription service is recognized on a daily basis over the subscription term as the services are delivered. The service is considered delivered, and hence revenue recognition commences, when the customer has access to Diligent Boards. Revenue is recorded ratably through the end of the contract period, which is generally twelve months from the contract date. Installation fees paid by customers in connection with the subscription service are deferred and are recognized ratably over the expected life of the customer relationships, generally nine years. In estimating the expected customer relationship period, the Company looked to guidance on the determination of the useful life of an intangible asset for the appropriate factors to be considered in estimating expected customer life and specifically focused on its customer renewal rate. Diligent's customer contracts contain a standard "autorenew" feature which provides for one-year renewals unless either party provides written notice of termination. In addition, Diligent's renewal history with its customers has been and remains at very high rates. As a result, the Company believes that its customers will renew numerous times during their tenure with Diligent. Consequently, Diligent has had a very low annual attrition rate which historically has been less than 5.0%. After considering these factors, the Company determined that a nine year estimated customer life was appropriate as of December 31, 2015. The Company evaluates its estimated customer life on an annual basis.
Deferred Revenue	Deferred Revenue Deferred revenue represents installation and subscription fees for which cash has been received, but for which the Company has not yet delivered its services or the criteria for the recognition of revenue have not yet been met. Deferred revenues presented in the consolidated balance sheets do not include amounts receivable (both billed and unbilled) for executed subscription agreements for which the Company has not yet received payment. Accordingly, the deferred revenue balance does not represent the total contract value of annual subscription agreements. Long term deferred revenue consists of installation fees that will be recognized over the estimated life of the customer relationship, generally nine years. Installation fees expected to be recognized within the next 12 months of the balance sheet date are included in the current portion of deferred revenue.
Accounts Receivable	Accounts Receivable The Company generally invoices its customers on a quarterly or annual basis. Accounts receivable represents amounts due from Diligent's customers for which revenue has been recognized. A provision for doubtful accounts is recorded based on management's assessment of amounts considered uncollectable for specific customers based on the age of the receivable, history of payments and other relevant information. At December 31, 2015 and December 31, 2014, the Company has recorded a provision for doubtful accounts of $0.2 million and $0.1 million, respectively.
Research and Development	Research and Development Research and development expenses are incurred as the Company maintains and enhances its software and evaluates and develops other potential applications. Such expenses include compensation and employee benefits of engineering and testing personnel, including share-based compensation, materials, travel and direct costs associated with the design and required testing of the product line. Research and development also includes allocated indirect costs such as facility and related costs that are clearly related to research and development activities.
Internal-Use Software Development Costs	Internal-Use Software Development Costs The Company begins to capitalize costs incurred for computer software developed for internal use when the preliminary development efforts are successfully completed, management has authorized and committed to funding the project, and it is probable that the project will be completed and the software will be used as intended. Capitalization ceases when a computer software project is substantially complete and ready for its intended use. Costs incurred prior to meeting these criteria are expensed as incurred and recorded in research and development expense in the Company's consolidated statements of income. Enhancements that add functionality to previously released software are capitalized and maintenance and relatively minor enhancements are expensed as incurred. Capitalized software development costs are amortized over the estimated useful life of the underlying project on a straight-line basis, generally not exceeding three years and are recorded as a component of cost of sales.
Operating Leases	Operating Leases The Company records rental costs, including costs related to fixed rent escalation clauses and rent holidays, on a straight-line basis over the lease term.
Income Taxes	Income Taxes The Company files U.S. federal and state income tax returns. Foreign operations file income tax returns in their respective foreign jurisdictions. The Company accounts for deferred income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. A valuation allowance is recorded if it is considered more likely than not that some or all of a deferred tax asset may not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The tax effects of an uncertain tax position taken or expected be taken in income tax returns are recognized only if it is "more likely than not" to be sustained on examination by the taxing authorities, based on its technical merits as of the reporting date. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes the benefit of an uncertain tax position in the period when it is effectively settled. Previously recognized tax positions are derecognized in the first period in which it is no longer more likely than not that the tax position would be sustained upon examination. The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense.
Foreign Exchange	Foreign Exchange The Company's wholly-owned foreign subsidiaries generally utilize their local currency as their functional currency. Assets and liabilities of these subsidiaries are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive income or loss. The functional currency of the Company's Singapore subsidiary is the U.S. dollar. Transactions in foreign currencies are reported at the rates of exchange at the transaction date. Assets and liabilities are translated at the rates of exchange in effect at the balance sheet date. All differences are recorded in results of operations.
Share-Based Compensation	Share-Based Compensation The Company measures the cost of employee services received in exchange for an equity-based award using the fair value of the award on the date of the grant, and recognizes the cost over the period that the award recipient is required to provide services to the Company in exchange for the award. The fair value of restricted stock units and performance stock units is determined using the market price of the Company's common stock at the date of the grant and compensation expense is recognized for the portion of the award that is expected to vest. The Company measures compensation cost for awards granted to non-employees based on the fair value of the award at the measurement date, which is the date performance is satisfied or services are rendered by the non-employee.
Segment Reporting	Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision-maker ("CODM"), or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance of the segment. In light of the Company's current product offerings and the fact that the Company's CODM, which is the Company's Chief Executive Officer, monitors and reviews financial information at a consolidated level for assessing operating results and allocation of resources, management has concluded that the Company has one reportable operating segment.
Earnings Per Share	Earnings Per Share Basic earnings per share is computed by dividing the net income attributable to common stockholders, after deducting accrued preferred stock dividends, by the weighted average number of common and preferred shares outstanding for the period. The preferred stockholders are entitled to participate on an "as converted basis" in any dividends paid on the Company's common stock, and as such are considered participating securities to which earnings should be allocated using the two-class method. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised, settled or converted into common stock, unless the effect is anti-dilutive. Stock options and employee share awards are included as potential dilutive securities for the applicable periods, except that 1.6 million, 1.8 million and 0.4 million have been excluded in 2015, 2014 and 2013, respectively because their effect is antidilutive. For the year ended December 31, 2015, 2014 and 2013. 1.6 million, 0.3 million and 2.5 million performance share units, respectively, were excluded as potential dilutive securities, as the performance criteria has not been met. The computation of shares used in calculating basic and diluted earnings per common share are as follows: The computation of shares used in calculating basic and diluted earnings per common share is as follows: Year ended December 31, 2015 2014 2013 (in thousands) Basic weighted average common shares outstanding Basic weighted average preferred shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic weighted average shares outstanding Dilutive effect of stock options Dilutive effect of performance stock units — Dilutive effect of restricted stock units ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dilutive weighted average shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February of 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). Under ASU 2016-2, 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 provides 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. The Company plans to adopt this guidance beginning January 1, 2019. The Company is assessing the impact of this update on its consolidated financial statements and the timing of adoption. In November 2015, the FASB issued ASU No. 2015-17 "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes." This ASU simplifies the presentation of deferred income taxes by requiring all deferred income tax assets and liabilities be classified as noncurrent on the balance sheet. This removes the requirement for the entity to determine whether the deferred tax is current or noncurrent for presentation in the balance sheet. ASU No. 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016. This ASU is not expected to have a significant impact on the Company's consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805)—Simplifying the Accounting for Measurement-Period Adjustments." ASU No. 2015-16 eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. ASU No. 2015-16 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. This ASU is not expected to have a significant impact on the Company's consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. Under application of this guidance, if a cloud computing arrangement includes a software license, the update specifies that the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. A customer should account for a cloud computing arrangement as a service contract if the arrangement does not include a software license. ASU No. 2015-05 is effective for 2016 and early adoption is allowed. This ASU is not expected to have a significant impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2015-14, "Revenue from Contracts with Customers (Topic 606)," a new standard related to revenue recognition, 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. The new standard will replace most of the existing revenue recognition standards in U.S. GAAP when it becomes effective. In July 2015, the FASB decided to delay the effective date by one year to January 1, 2018. Early adoption is permitted no earlier than 2017. The new standard can be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the change recognized at the date of the initial application in retained earnings. The Company is assessing the potential impact of the new standard on its consolidated financial statements and has not yet selected a transition method.

Significant Accounting Polici27

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Significant accounting policies
Computation of shares used in calculating basic and diluted earnings per common share	Year ended December 31, 2015 2014 2013 (in thousands) Basic weighted average common shares outstanding Basic weighted average preferred shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic weighted average shares outstanding Dilutive effect of stock options Dilutive effect of performance stock units — Dilutive effect of restricted stock units ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dilutive weighted average shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Business Combination (Tables)

Business Combination (Tables)	12 Months Ended
	Dec. 31, 2015
Business Combination
Summary of the preliminary fair value of acquired assets and liabilities assumed	The following summarizes the preliminary fair value of acquired assets and liabilities assumed (in thousands): Useful Life (in years) Current assets $ — Deferred revenue ) — Intangible assets: Customer contracts Developed technology Transition services agreement Tradename Goodwill — ​ ​ ​ ​ ​ ​ ​ ​ Total purchase consideration $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of unaudited pro form results	The following table presents the unaudited pro forma results of the Company for the years ended December 31, 2015 and 2014 as if the acquisition of BoardLink occurred on January 1, 2014 (in thousands): Year ended December 31, 2015 2014 Pro forma total revenue $ $ Pro forma net income $ $ Pro forma earnings per share—basic $ $ Pro forma earnings per share—diluted $ $

Intangible Assets and goodwill

Intangible Assets and goodwill (Tables)	12 Months Ended
	Dec. 31, 2015
Finite-Lived Intangible Assets
Schedule of gross carrying amount and accumulated amortization of the intangible assets	December 31, 2015 Amortization Period Gross Value Accumulated Amortization Net Carrying Value (in years) (in thousands) Customer contracts $ $ ) $ Capitalized internal-use software ) Trademarks ) Developed technology ) Transition services agreement ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of estimate of future amortization expense for intangible assets	Year ending December 31, Amount (in thousands) 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of changes in the carrying value of goodwill	Carrying Amount Balance, December 31, 2014 $ — Acquisition of BoardLink ​ ​ ​ ​ ​ Balance, December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Property and equipment and ob30

Property and equipment and obligations under capital leases (Tables)	12 Months Ended
	Dec. 31, 2015
Property and equipment and obligations under capital leases
Schedule of property and equipment	December 31, 2015 2014 (in thousands) Equipment $ $ Purchased computer software Leasehold improvements ​ ​ ​ ​ ​ ​ ​ ​ Less: Accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net property and equipment $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of assets relating to capital leases, included in property and equipment on the balance sheet	December 31, 2015 2014 (in thousands) Capital lease assets included in equipment $ $ Capital lease assets included in computer software Less: Accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of future minimum lease payments due under capital leases and software licensing agreements	Year ending December 31, Future Minimum Lease Payments (in thousands) 2016 $ Less interest portion of payments ) ​ ​ ​ ​ ​ Present value of minimum lease payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accrued expenses and other cu31

Accrued expenses and other current liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Accrued expenses and other current liabilities
Schedule of accrued expenses and other current liabilities	December 31, 2015 2014 (in thousands) Accrued commissions, bonuses, and payroll $ $ Performance cash award Accrued sales taxes Accrued preferred stock dividend Other (individually less than 5% of total current liabilities) ​ ​ ​ ​ ​ ​ ​ ​ Total accrued expenses and other liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Geographic information (Tables)

Geographic information (Tables)	12 Months Ended
	Dec. 31, 2015
Geographic information
Schedule of Company's revenue, by geographic location of the customer, and long-lived assets	Year ended December 31, 2015 2014 2013 (in thousands) Revenues: Americas $ $ $ EMEA Asia Pacific ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 2014 2013 Long-lived assets outside the United States, net $ $ $

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income taxes
Schedule of income before provision for income taxes	Year ended December 31, 2015 2014 2013 (in thousands) Domestic $ $ $ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of components of income tax expense	Year ended December 31, 2015 2014 2013 (in thousands) Income tax expense: Current: Federal $ $ $ State and Local Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: Federal $ ) $ ) $ ) State and Local ) ) ) Foreign ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax expense: $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of income tax provision which differs from the amount of tax determined by applying the federal statutory rate	Year ended December 31, 2015 2014 2013 (in thousands) Federal income tax statutory rate % % % State and local income taxes, net of federal benefit Tax credits related to research activity ) ) ) Stock-based compensation Other permanent differences ) Effect of non-U.S. operations ) ) ) Return to provision adjustments ) Change in unrecognized tax positions — Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of components of deferred tax assets and liabilities	December 31, 2015 2014 (in thousands) Deferred tax assets (liabilities) Net operating loss and tax credit carryforwards $ $ Deferred revenue Stock-based compensation Deferred compensation Accruals and reserves Other Fixed assets ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of reconciliation of unrecognized tax benefits	Year ended December 31, 2015 2014 2013 (in thousands) Beginning balance $ $ $ Additions for tax positions of prior years — — — Reductions for tax positions of prior years — — — Additions for tax positions of current year Reductions for tax positions of current year — — — Reductions due to settlements — ) — Reductions due to lapse of statute of limitaitons — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending balance $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Stock option and incentive pl34

Stock option and incentive plans (Tables)	12 Months Ended
	Dec. 31, 2015
Stock option and incentive plans
Schedule of assumptions used to estimate the fair value of options	Year Ended December 31, 2015 2014 2013 Expected volatility(1) 53.82 - 59.17% 50.56 - 50.94% 58.06 - 59.20% Expected term(2) 6.25 years 6.25 years 5.0 - 6.3 years Risk-free interest rate(3) 1.73 - 1.88% 1.98 - 2.26% 1.08 - 1.68% Dividend yield — — — (1) The expected volatility was determined using historical volatility data for comparable companies in 2014 and 2013 because the period of active trading history of the Company's common stock was less than the expected term of the options. (2) The expected term of the options has been estimated using the simplified method which calculates the average of the vesting period and the contractual term of the options, because the Company's limited historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term. (3) The risk free interest rate is based on the U.S. Treasury constant maturity nominal yield with a term approximately equal to the expected terms of the options.
Summary of stock option activity	Options Weighted Average Exercise Price (in thousands) Outstanding at January 1, 2015 $ Granted Exercised ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options vested and expected to vest ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of activity in PSUs	Performance Stock Units Weighted Average Grant Date Fair Value Per Share (in thousands) Nonvested at January 1, 2015 $ Granted Vested ) Forfeited — — ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of RSU activity	Restricted Stock Units Weighted Average Grant Date Fair Value Per Share (in thousands) Nonvested at January 1, 2015 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of share-based compensation	Year Ended December 31, 2015 2014 2013 (in thousands) Stock options $ $ $ Performance stock units — Restricted stock units ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Commitments (Tables)

Commitments (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments
Schedule of future minimum lease payments and sublease income for leases that have initial or non-cancelable lease terms in excess of one year	Year ending December 31, Minimum Lease Commitments Subleases Minimum Net Rentals (in thousands) 2016 $ $ ) $ 2017 ) 2018 ) 2019 2020 Thereafter ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Selected quarterly financial 36

Selected quarterly financial data (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2015
Selected quarterly financial data (unaudited)
Schedule of selected quarterly financial data	1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal Year (in thousands, except per share amounts) Fiscal 2015 Revenues $ $ $ $ $ Cost of revenues (excluding depreciation and amortization) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit Total operating expenses Operating income Net income Accrued preferred stock dividends ) ) ) ) ) Net income attributable to common stockholders Basic net income per share $ $ $ $ $ Diluted net income per share $ $ $ $ $ 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal Year (in thousands, except per share amounts) Fiscal 2014 Revenues $ $ $ $ $ Cost of revenues (excluding depreciation and amortization) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit Total operating expenses Operating income Net income Accrued preferred stock dividends ) ) ) ) ) Net income attributable to common stockholders Basic net income per share $ $ $ $ $ Diluted net income per share $ $ $ $ $

Investigations and restatement

Investigations and restatement (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Investigations and restatement
Number of option awards exceeded the applicable plan cap | item	3
Special committee expenses	$ 0	$ 0	$ 2.3
Cost of audit committee investigation	0	0	0.9
Cost for restatement and re-audits		$ 0.9	$ 2.3
NZX Discipline Fund
Investigations and restatement
Loss Contingency Penalty Damages Awarded Value	$ 0.1

Significant accounting polici38

Significant accounting policies (Details) $ in Thousands, shares in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2015USD ($)segmentshares	Dec. 31, 2014USD ($)shares	Dec. 31, 2013USD ($)shares
Significant accounting policies
General and administrative expenses									$ 27,396	$ 23,135	$ 18,676
Cost of revenues	$ 6,966				$ 4,794	$ 4,668	$ 4,399	$ 3,780	21,399	17,641	12,502
Selling and marketing									21,995	13,849	11,297
Research and development									13,096	9,605	4,735
Allowance for Doubtful Accounts Receivable	200				100				200	100
Carrying amount of intangible assets	13,501								13,501
Amortization of Intangible Assets									$ 500	100	0
Period in length of subscriptions to cloud-based application									1 year
Notice period for return and automatic renewal of subscription arrangements									30 days
Contract period of subscription services									12 months
Estimated customer attrition rate									5.00%
Number of operating segments | segment									1
As Previously Reported
Significant accounting policies
General and administrative expenses										$ 2,200	1,400
Cost of revenues		$ 5,101	$ 4,936	$ 4,396							$ 500
Restated from 2014
Significant accounting policies
Cost of revenues									$ 200
Selling and marketing									1,400
Research and development									600
Restated from 2013
Significant accounting policies
Selling and marketing									1,700
Research and development									$ 200
Minimum
Significant accounting policies
Property, Plant and Equipment, Useful Life									3 years
Maximum
Significant accounting policies
Property, Plant and Equipment, Useful Life									5 years
Stock options
Significant accounting policies
Stock options excluded from computation of earnings per share (in shares) | shares									1.6	1.8	0.4
PSU
Significant accounting policies
Stock options excluded from computation of earnings per share (in shares) | shares									1.6	0.3	2.5
Computer software
Significant accounting policies
Carrying amount of intangible assets	$ 4,622								$ 4,622
Computer software | Minimum
Significant accounting policies
Estimated useful life									2 years
Computer software | Maximum
Significant accounting policies
Estimated useful life									15 years
Computer software | Development costs | Maximum
Significant accounting policies
Estimated useful life									3 years
Customer relationships
Significant accounting policies
Estimated useful life									9 years
Cash and Cash Equivalents
Significant accounting policies
US Government Securities, at Carrying Value					$ 32,500					$ 32,500

Significant accounting polici39

Significant accounting policies - Earnings per share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Significant accounting policies
Basic weighted average common shares outstanding (in shares)	87,386	86,627	83,760
Basic weighted average preferred shares outstanding (in shares)	30,000	30,482	32,667
Basic weighted average shares outstanding (in shares)	117,386	117,109	116,427
Dilutive effect of stock options (in shares)	2,572	2,507	5,236
Dilutive effect of performance stock units (in shares)	1,472	1,065
Dilutive effect of restricted stock units (in shares)	498	436	66
Dilutive weighted average shares outstanding (in shares)	121,928	121,117	121,729

Business combination (Details)

Business combination (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 19, 2015	Dec. 31, 2015	Dec. 31, 2014
Allocation of Purchase Consideration:
Goodwill		$ 498
Customer Contracts
Estimated fair value of the intangible assets acquired
Weighted average useful life (In years)		15 years
Developed technology
Estimated fair value of the intangible assets acquired
Weighted average useful life (In years)		2 years
Transition service agreement
Estimated fair value of the intangible assets acquired
Weighted average useful life (In years)		2 years
BoardLink
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net
Cash payment	$ 10,000
Working capital adjustment	200	$ 200
Acquisition related costs	400
Proforma revenue		1,200
Allocation of Purchase Consideration:
Current assets		1,012
Deferred revenue		(493)
Goodwill		498
Total purchase consideration	$ 9,800	9,837
Business Acquisition, Pro Forma Information [Abstract]
Business Acquisition, Pro Forma Revenue		104,617	$ 89,536
Business Acquisition, Pro Forma Operating Income		300
Business Acquisition, Pro Forma Net Income (Loss)		$ 10,462	$ 10,407
Business Acquisition, Pro Forma Earnings Per Share, Basic		$ 0.09	$ 0.09
Business Acquisition, Pro Forma Earnings Per Share, Diluted		$ 0.08	$ 0.08
BoardLink | Customer Contracts
Allocation of Purchase Consideration:
Intangible assets		$ 8,440
Estimated fair value of the intangible assets acquired
Weighted average useful life (In years)		15 years
BoardLink | Developed technology
Allocation of Purchase Consideration:
Intangible assets		$ 170
Estimated fair value of the intangible assets acquired
Weighted average useful life (In years)		2 years
BoardLink | Transition service agreement
Allocation of Purchase Consideration:
Intangible assets		$ 140
Estimated fair value of the intangible assets acquired
Weighted average useful life (In years)		2 years
BoardLink | Tradename
Allocation of Purchase Consideration:
Intangible assets		$ 70
Estimated fair value of the intangible assets acquired
Weighted average useful life (In years)		5 years

Intangible assets and goodwil41

Intangible assets and goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets
Gross value	$ 14,044
Less: accumulated amortization	(543)
Total	13,501
Capitalized costs of internally developed software	4,900	$ 0
Amortization expense	$ 500	$ 100	$ 0
Customer Contracts
Finite-Lived Intangible Assets
Amortization Period (in years)	15 years
Gross value	$ 8,440
Less: accumulated amortization	(112)
Total	$ 8,328
Computer software
Finite-Lived Intangible Assets
Amortization Period (in years)	3 years
Gross value	$ 4,949
Less: accumulated amortization	(327)
Total	$ 4,622
Trademarks
Finite-Lived Intangible Assets
Amortization Period (in years)	5 years	5 years
Gross value	$ 345	$ 300
Less: accumulated amortization	(73)	100
Total	$ 272	$ 300
Developed technology
Finite-Lived Intangible Assets
Amortization Period (in years)	2 years
Gross value	$ 170
Less: accumulated amortization	(17)
Total	$ 153
Transition service agreement
Finite-Lived Intangible Assets
Amortization Period (in years)	2 years
Gross value	$ 140
Less: accumulated amortization	(14)
Total	126
Cost of revenue
Finite-Lived Intangible Assets
Amortization expense	$ 300

Intangible assets and goodwil42

Intangible assets and goodwill - Goodwill and intangible assets (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Carrying amounts of goodwill
Balance at end of the year	$ 498
Finite-Lived Intangible Assets Future Amortization Expense
2,016	2,436
2,017	2,405
2,018	1,955
2,019	617
2,020	574
Thereafter	5,514
Total	13,501
BoardLink
Carrying amounts of goodwill
Goodwill acquired	498
Balance at end of the year	$ 498

Property and equipment and ob43

Property and equipment and obligations under capital leases (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property and equipment
Property and equipment, gross	$ 23,145	$ 19,424
Less: Accumulated depreciation and amortization	(10,448)	(7,221)
Net property and equipment	12,697	12,203
Equipment
Property and equipment
Property and equipment, gross	16,057	13,312
Computer software
Property and equipment
Property and equipment, gross	4,101	3,398
Leasehold improvements
Property and equipment
Property and equipment, gross	$ 2,987	$ 2,714

Property and equipment and ob44

Property and equipment and obligations under capital leases - Financing arrangements (Detail) - Computer software $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Minimum
Obligations under capital leases
Capital Lease Interest Percentage	3.80%
Capital Lease Monthly Payment	$ 0.1
Maximum
Obligations under capital leases
Capital Lease Interest Percentage	5.50%

Property and equipment and ob45

Property and equipment and obligations under capital leases - Assets relating to capital leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Obligations under capital leases
Less: Accumulated depreciation and amortization	$ (1,658)	$ (1,137)
Capital lease assets included in property and equipment, net	790	1,311
Depreciation expense relating to assets acquired under capital leases	500	600	$ 400
Depreciation, Depletion and Amortization	4,200	2,784	$ 1,645
Equipment
Obligations under capital leases
Capital lease assets included in property and equipment, gross	1,937	1,937
Computer software
Obligations under capital leases
Capital lease assets included in property and equipment, gross	$ 511	$ 511

Property and equipment and ob46

Property and equipment and obligations under capital leases - Future minimum lease payments (Details) $ in Thousands	Dec. 31, 2015USD ($)
Property and equipment and obligations under capital leases
2,016	$ 63
Less interest portion of payments	(1)
Present value of minimum lease payments	$ 62

Accrued expenses and other cu47

Accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accrued expenses and other current liabilities
Accrued commissions, bonuses, and payroll	$ 5,879	$ 5,483
Performance cash award	1,413	1,413
Accrued sales taxes	1,455	2,119
Accrued preferred stock dividend	330	335
Other (individually less than 5% of total current liabilities)	3,414	2,118
Accrued expenses and other liabilities	$ 12,491	$ 11,468

Geographic information (Details

Geographic information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Geographic information
Revenue	$ 99,309	$ 83,054	$ 64,757
Long-lived assets outside the United States, net	2,433	2,532	330
Americas
Geographic information
Revenue	69,412	58,810	48,723
EMEA
Geographic information
Revenue	20,843	17,145	11,857
Asia Pacific
Geographic information
Revenue	$ 9,054	$ 7,099	$ 4,177

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income before provision for income taxes:
Domestic	$ 10,677	$ 9,381	$ 7,080
Foreign	674	5,623	2,924
Total	$ 11,351	$ 15,004	$ 10,004

Income taxes - Components of in

Income taxes - Components of income tax expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current:
Federal	$ 2,839	$ 5,341	$ 2,947
State and Local	651	894	714
Foreign	1,609	2,698	1,361
Total current	5,099	8,933	5,022
Deferred:
Federal	(994)	(1,689)	(680)
State and Local	(46)	(24)	(90)
Foreign	(812)	(1,142)	(508)
Total deferred	(1,852)	(2,855)	(1,278)
Total income tax expense:	$ 3,247	$ 6,078	$ 3,744

Income taxes - Provision determ

Income taxes - Provision determined by applying the U.S. federal statutory rate (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income taxes
Federal income tax statutory rate	34.00%	34.00%	34.00%
State and local income taxes, net of federal benefit	3.20%	2.90%	3.80%
Tax credits related to research activity	(4.90%)	(1.50%)	(2.20%)
Stock-based compensation	3.30%	1.90%	0.90%
Other permanent differences	(2.10%)	0.50%	0.30%
Effect of non-U.S. operations	(1.50%)	(4.30%)	(1.20%)
Return to provision adjustments	(4.80%)	3.70%	1.90%
Change in unrecognized tax positions	0.80%	2.20%
Other	0.60%	1.00%	(0.10%)
Income tax expense	28.60%	40.40%	37.40%

Income taxes - Deferred tax ass

Income taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Tax Assets (Liabilities)
Net operating loss and tax credit carryforwards	$ 2,478	$ 1,953
Deferred revenue	5,955	4,272
Stock-based compensation	3,319	2,235
Deferred Compensation	114	1,242
Accruals and reserves	1,180	1,583
Other	379	80
Fixed assets	(1,997)	(1,793)
Net Deferred Tax Asset	$ 11,428	$ 9,572

Income taxes - Operating loss c

Income taxes - Operating loss carryforward (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income taxes
Undistributed earnings in international subsidiaries	$ 9,000,000	$ 8,100,000	$ 2,900,000
Operating loss carryforward utilized
Income taxes
Net operating loss carryforwards	400,000
Expected loss expire unutilized
Income taxes
Net operating loss carryforwards	4,900,000
Operating loss carryforwards expire from 2028 Through 2029
Income taxes
Net operating loss carryforwards	$ 4,900,000

Income taxes - Unrecognized tax

Income taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income taxes
Interest or penalties on uncertain tax positions	$ 0	$ 0	$ 0
Reconciliation of Unrecognized Tax Benefits:
Beginning balance	763	439	175
Additions for tax positions of current year	93	524	264
Reductions due to settlements		(200)
Ending balance	$ 856	$ 763	$ 439

Redeemable Preferred Stock (Det

Redeemable Preferred Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2009	Dec. 31, 2015	Dec. 31, 2014
Schedule Of Preferred Shares [Line Items]
Stock Issued During Period, Value, New Issues		$ 316	$ 641
Preferred Stock, Redemption Terms		Redemption rights-The holders of the Preferred Shares have the option to require the Preferred Shares (including any PIK shares) to be redeemed in cash, at $0.10 per share plus accrued and unpaid dividends, at any time after 60 months from the date of issue of the Preferred Shares. Any redeemed amounts will be paid in four equal quarterly installments commencing 60 days after the redemption request.
Preferred Stock Terms Of Anti Dilution Provision		Anti-Dilution Provision-In the event of a future offering of the Company's stock at a price per common share which is less than the Preferred Share conversion rate immediately before such offering, the conversion price for the Preferred Shares is adjusted according to a weighted average formula.
Preferred Stock Liquidation Terms		Liquidation preference-In the event of any voluntary or involuntary liquidation of the Company, the holders of Preferred shares are entitled to an amount per Preferred Share equal to 1.5 times the original issue price of $0.10 plus any accrued but unpaid dividends. In addition, the holders of preferred shares participate on a pro rata, as converted basis, in the distribution of any remaining assets after payment of the liquidation preference. A merger or acquisition of the Company is considered a deemed liquidation event.
Preferred Stock, Voting Rights		Voting rights-Preferred Shares have equal voting rights (one vote per share) to common stock, except that Preferred Shares do not vote in the general election of directors.
Preferred Stock Other Provisions Terms		Other provisions-For as long as not less than 15 million Preferred Shares are outstanding, the holders of the Preferred Shares have the right between them to appoint one director, and the Company may not take action relating to certain major transactions, including a merger or acquisition, without obtaining the consent of not less than 60% of the Preferred Shares or without obtaining the approval of the director appointed by the holder of the Preferred Shares (for matters requiring Board of Directors approval).
Series A Preferred Stock
Schedule Of Preferred Shares [Line Items]
Shares issued under employee stock purchase plan (in shares)	30,000
Share price (in dollars per share)	$ 0.10
Stock Issued During Period, Value, New Issues	$ 3,000
Less: Issuance costs	$ 100
Dividend (as a percent)		11.00%
Convertible Preferred Stock Triggering Event Minimum Amount From Underwritten Share Offering		$ 40,000

Redeemable Preferred Stock - Ac

Redeemable Preferred Stock - Accounting for preferred shares (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2015
Schedule Of Preferred Shares [Line Items]
Beneficial conversion feature		$ 0
Conversion of preferred stock to common stock (in shares)		1
Spring Street Partners, L.P.
Schedule Of Preferred Shares [Line Items]
Conversion of preferred stock to common stock (in shares)	1,777,904
Carroll Capital Holdings
Schedule Of Preferred Shares [Line Items]
Conversion of preferred stock to common stock (in shares)	889,219

Stockholders' equity (Details)

Stockholders' equity (Details) - USD ($) shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Jan. 03, 2013
Stockholders Equity Note Disclosure [Line Items]
Preferred Stock Dividend Payable Rights Waived				$ 0.2
Common Stock
Stockholders Equity Note Disclosure [Line Items]
Exercise of stock options (in shares)	128	125	190
Common Stock, Capital Shares Reserved for Future Issuance	47,400

Stock option and incentive pl58

Stock option and incentive plans (Details) $ / shares in Units, $ in Thousands

Sep. 30, 2015USD ($)installment

Aug. 23, 2014

Dec. 31, 2013USD ($)

Dec. 23, 2013USD ($)item$ / sharesshares

Jun. 30, 2013USD ($)shares

Dec. 31, 2012shares

Apr. 30, 2012shares

Sep. 30, 2014USD ($)

Dec. 31, 2015USD ($)item$ / sharesshares

Dec. 31, 2014USD ($)shares

Mar. 31, 2014shares

Dec. 31, 2013USD ($)

Apr. 30, 2015shares

May. 03, 2013shares

Jun. 30, 2010shares

Nov. 30, 2007shares

Stock option and incentive plans

Allocated Share-based Compensation Expense | $

$ 7,518

$ 3,033

$ 2,581

Unrecognized share-based compensation expense (in dollars) | $

$ 13,500

Chief executive officer

Stock option and incentive plans

Granted (in shares)

3,000,000

Accrued expenses and other current liabilities

Stock option and incentive plans

Liability for the performance cash award | $

$ 1,400

Replacement grant agreement

Stock option and incentive plans

Liability for the performance cash award | $

$ 1,600

Vesting period

10 years

Number of options vested subject to cancellation (in shares)

2,400,000

Weighted average exercise price of options vested subject to cancellation (in dollars per share) | $ / shares

$ 0.14

Maximum number of vested shares applicable under the plan (in shares)

1,600,000

Number of options to be granted in lieu of cancellation (in shares)

1,600,000

Exercise price of options to be granted in lieu of cancellation (in dollars per share) | $ / shares

$ 2.79

Number of equal annual installments payable on cash awards earned | item

3

Performance Share Units Minimum Revenue Growth Rate

7.00%

Weighted average exercise price of options expected to vest subject to cancellation (in dollars per share) | $ / shares

$ 0.82

Maximum number of expected to vest shares applicable under the plan (in shares)

2,500,000

Number of options to be granted in lieu of cancellation on achieving EPS growth or stockholder return (in shares)

250,000,000

Performance shares to be earned

62,500

62,500

Unrecognized share-based compensation expense (in dollars) | $

$ 2,900

2,900

Performance revenue target cash award paid | $

$ 1,400

Percentage of delivery dates for vested performance shares in 2018

50.00%

Percentage of delivery dates for vested performance shares in 2019

50.00%

Minimum percentage of exercise price used to determine measurement period prior to each payment due

75.00%

Minimum percentage of fully diluted EPS growth

15.00%

15.00%

Minimum percentage of total stockholder return growth

15.00%

Number of annual measurement period used to determine total stockholder return growth | item

4

Annual measurement period used to determine total stockholder return growth

1 year

Period of trailing days used to determine TSR growth which is measured based on the entity's stock price performance

20 days

Replacement incentive awards

Stock option and incentive plans

Fair value of awards (in dollars) | $

$ 4,200

Unrecognized share-based compensation expense (in dollars) | $

$ 1,000

$ 3,100

New remuneration package

Stock option and incentive plans

Officers Compensation Payable | $

$ 100

Percentage of compensation payable to officers in cash

38.00%

RSU

Stock option and incentive plans

Allocated Share-based Compensation Expense | $

$ 100

$ 3,364

933

252

Number of shares issued (in shares)

150,000

Granted (in dollars per share) | $ / shares

$ 3.90

Vesting period

4 years 6 months

Unrecognized share-based compensation expense (in dollars) | $

$ 7,100

Stock options

Stock option and incentive plans

Allocated Share-based Compensation Expense | $

$ 1,711

$ 1,091

$ 2,329

Options outstanding replaced by RSUs

7,045,000

6,553,000

Granted (in shares)

720,000

Vesting period

4 years

Unrecognized share-based compensation expense (in dollars) | $

$ 1,900

PSU

Stock option and incentive plans

Allocated Share-based Compensation Expense | $

$ 2,443

$ 1,009

Granted (in dollars per share) | $ / shares

$ 3.79

Number of equal annual installments payable on cash awards earned | installment

4

Number of options to be granted in lieu of cancellation on achieving revenue growth (in shares)

2,250,000

Additional expense for performance shares | $

$ 300

Unrecognized share-based compensation expense (in dollars) | $

4,500

PSU | 2016

Stock option and incentive plans

Unrecognized share-based compensation expense (in dollars) | $

400

PSU | 2017

Stock option and incentive plans

Unrecognized share-based compensation expense (in dollars) | $

200

PSU | 2018

Stock option and incentive plans

Unrecognized share-based compensation expense (in dollars) | $

$ 100

Maximum | Stock options

Stock option and incentive plans

Vesting period

6 years

Minimum | Stock options

Stock option and incentive plans

Vesting period

2 years

2013 Plan

Stock option and incentive plans

Number of shares authorized for issuance under the plan

15,500,000

Number of shares available for grant under the plan

4,400,000

2013 Plan | Replacement incentive awards

Stock option and incentive plans

Number of shares available for grant under the plan

4,100,000

7,000,000

2007 Plan

Stock option and incentive plans

Number of shares authorized for issuance under the plan

10,000,000

Number of shares available for grant under the plan

0

46,000

2007 Plan | Chief executive officer

Stock option and incentive plans

Number of shares issued in excess of cap

1,600,000

2010 Plan

Stock option and incentive plans

Number of shares authorized for issuance under the plan

5,000,000

Number of shares available for grant under the plan

0

2,600,000

Vesting period

4 years 6 months

Number of additional shares authorized for issuance under the plan

2,500,000

2010 Plan | Executive officer

Stock option and incentive plans

Number of shares issued in excess of cap

250,000

Number of shares issued in excess of cap were cancelled

250,000

2010 Plan | Chief executive officer

Stock option and incentive plans

Number of shares issued in excess of cap

2,500,000

Stock option and incentive pl59

Stock option and incentive plans - Stock option activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock option assumptions
Vesting period	4 years
Expected volatility, minimum (as a percent)	53.82%	50.56%	58.06%
Expected volatility, maximum (as a percent)	59.17%	50.94%	59.20%
Expected term	6 years 3 months	6 years 3 months
Risk-free interest rate, minimum (as a percent)	1.73%	1.98%	1.08%
Risk-free interest rate, maximum (as a percent)	1.88%	2.26%	1.68%
Options
Outstanding at Beginning (in shares)	6,553
Granted (in shares)	720
Exercised (in shares)	(128)
Forfeited (in shares)	100
Outstanding at End (in shares)	7,045	6,553
Exercisable at the end of the period (in shares)	5,350
Options vested and expected to vest (in shares)	7,009
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 2.31
Granted (in dollars per share)	3.42
Exercised (in dollars per share)	0.82
Forfeited (in dollars per share)	3.85
Outstanding at the end of the period (in dollars per share)	2.42	$ 2.31
Exercisable at the end of the period (in dollars per share)	$ 2.01
Aggregate intrinsic value of the stock options exercisable (in dollars)	$ 11.7	$ 9.8	$ 6.5
Aggregate intrinsic value of the stock options exercised (in dollars)	0.4	$ 0.4	$ 0.8
Aggregate intrinsic value of options expected to vest (in dollars)	$ 0.8
Minimum
Stock option assumptions
Vesting period	2 years
Expected term			5 years
Maximum
Stock option assumptions
Expiration period	10 years
Vesting period	6 years
Expected term			6 years 3 months 18 days
Termination | Maximum
Stock option assumptions
Exercise Period	3 months
Death or disability | Maximum
Stock option assumptions
Exercise Period	12 months

Stock option and incentive pl60

Stock option and incentive plans - PSU and RSU activity (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2013USD ($)	Dec. 31, 2015USD ($)item$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)	Jun. 30, 2010shares
Stock option and incentive plans
Allocated Share-based Compensation Expense | $		$ 7,518	$ 3,033	$ 2,581
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $		100	200	800
Unrecognized share-based compensation expense (in dollars) | $		$ 13,500
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 2 months 12 days
Defined Contribution Plan, Employer Discretionary Contribution Amount | $		$ 700	500	400
2010 Plan
Performance Stock Units and Restricted Stock Units
Number of shares authorized for issuance under the plan					5,000,000
Vesting period	4 years 6 months
2013 Plan
Performance Stock Units and Restricted Stock Units
Number of shares authorized for issuance under the plan		15,500,000
Stock options
Stock option and incentive plans
Allocated Share-based Compensation Expense | $		$ 1,711	1,091	2,329
Unrecognized share-based compensation expense (in dollars) | $		$ 1,900
Performance Stock Units and Restricted Stock Units
Vesting period		4 years
Stock options | Minimum
Performance Stock Units and Restricted Stock Units
Vesting period		2 years
Stock options | Maximum
Performance Stock Units and Restricted Stock Units
Vesting period		6 years
PSU
Stock option and incentive plans
Allocated Share-based Compensation Expense | $		$ 2,443	$ 1,009
Unrecognized share-based compensation expense (in dollars) | $		$ 4,500
Performance Stock Units and Restricted Stock Units
Nonvested at the beginning of the period (in shares)		2,500,000
Granted (in shares)		1,380,000
Vested (in shares)		625,000
Nonvested at the end of the period (in shares)		3,255,000	2,500,000
Weighted Average Grant Date Fair Value Per Share
Nonvested at the beginning of the period (in dollars per share) | $ / shares		$ 2.79
Granted (in dollars per share) | $ / shares		3.79
Vested (in dollars per share) | $ / shares		2.92
Nonvested at the end of the period (in dollars per share) | $ / shares		$ 3.28	$ 2.79
PSU | CEO and the Chief Product Strategy Officer
Performance Stock Units and Restricted Stock Units
Number of shares authorized for issuance under the plan		675,000
Fair Value of granted Shares | $		$ 2,700
Trailing period used to measure revenue thresholds		12 months
Number of performance thresholds | item		4
Performance threshold percentage unit will vest		25.00%
Number of performance measures | item		4
Period for granting of all PSUs		4 years
PSU | CEO and the Chief Product Strategy Officer | Minimum
Performance Stock Units and Restricted Stock Units
Vesting period		1 year
PSU | CEO and the Chief Product Strategy Officer | Maximum
Performance Stock Units and Restricted Stock Units
Vesting period		4 years
PSU | Certain executives
Performance Stock Units and Restricted Stock Units
Number of shares authorized for issuance under the plan		705,000
Fair Value of granted Shares | $		$ 2,500
Trailing period used to measure revenue thresholds		12 months
Number of performance thresholds | item		4
Performance threshold percentage unit will vest		25.00%
Number of performance measures | item		4
Period for granting of all PSUs		4 years
PSU | Certain executives | Minimum
Performance Stock Units and Restricted Stock Units
Vesting period		1 year
PSU | Certain executives | Maximum
Performance Stock Units and Restricted Stock Units
Vesting period		4 years
RSU
Stock option and incentive plans
Allocated Share-based Compensation Expense | $	$ 100	$ 3,364	$ 933	$ 252
Unrecognized share-based compensation expense (in dollars) | $		$ 7,100
Performance Stock Units and Restricted Stock Units
Vesting period	4 years 6 months
Nonvested at the beginning of the period (in shares)		1,055,000
Granted (in shares)			2,086,000
Vested (in shares)			407,000
Forfeited (in shares)			75,000
Nonvested at the end of the period (in shares)		2,659,000	1,055,000
Weighted Average Grant Date Fair Value Per Share
Nonvested at the beginning of the period (in dollars per share) | $ / shares		$ 4.17
Granted (in dollars per share) | $ / shares		3.90
Vested (in dollars per share) | $ / shares		3.88
Forfeited (in dollars per share) | $ / shares		3.85
Nonvested at the end of the period (in dollars per share) | $ / shares		$ 3.89	$ 4.17

Commitments (Details)

Commitments (Details) - USD ($) $ in Thousands	1 Months Ended			12 Months Ended
	Feb. 28, 2015	May. 31, 2014	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments
Operating Leases, Rent Expense	$ 300	$ 400	$ 900	$ 2,000	$ 1,800	$ 1,300
Security Deposit				800	$ 800
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals	$ 500	$ 400	$ 800	$ 1,089		800
Loss related to sublease charged to rent expense						$ 100

Commitments - Future minimum le

Commitments - Future minimum lease payments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Feb. 28, 2015	May. 31, 2014	Dec. 31, 2013
Minimum Lease Commitments
2,016	$ 2,440
2,017	2,350
2,018	1,956
2,019	1,867
2,020	1,473
Thereafter	4,716
Total	14,802
Sublease
2,016	(494)
2,017	(509)
2,018	(86)
Total	(1,089)	$ (500)	$ (400)	$ (800)
Minimum Net Rentals
2,016	1,946
2,017	1,841
2,018	1,870
2,019	1,867
2,020	1,473
Thereafter	4,716
Total	$ 13,713

Contingencies (Details)

Contingencies (Details) $ in Millions	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Apr. 29, 2015director	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Litigation Settlement
Provision for State Sales Taxes				$ 1.5	$ 2.1
NZX | Maximum
Litigation Settlement
Settlement for payment of fines and costs	$ 0.1	$ 0.1
NZX | Minimum
Litigation Settlement
Resident directors | director			2
NZXR | Maximum
Litigation Settlement
Settlement for payment of fines and costs		$ 0.1

Subsequent events (Details)

Subsequent events (Details) - Merger - USD ($)	Feb. 12, 2016	Dec. 31, 2015
Diligent Corporation
Merger Agreement
Merger related costs		$ 400,000
Subsequent Event | Termination By Company Under Specified Circumstances
Merger Agreement
Termination fee	$ 19,463,000
Subsequent Event | Diligent Corporation | Termination By Company For Breach | Maximum
Merger Agreement
Merger related costs	7,500,000
Subsequent Event | Diligent Corporation | Termination For Failure To Adopt | Maximum
Merger Agreement
Merger related costs	$ 5,000,000
Subsequent Event | Diligent Corporation | Common Stock
Merger Agreement
Cash received by shareholder for each share	$ 4.90
Subsequent Event | Diligent Corporation | Preferred Stock
Merger Agreement
Cash received by shareholder for each share	$ 5.05
Subsequent Event | Diligent Corporation | Preferred Stock | Minimum
Merger Agreement
Percentage approval required of the outstanding preferred stock	60.00%
Subsequent Event | Insight | Diligent Corporation
Merger Agreement
Termination fee	$ 33,365,000

Selected quarterly financial 65

Selected quarterly financial data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Quarterly Financial Information [Line Items]
Revenues	$ 27,459				$ 22,161	$ 21,423	$ 20,344	$ 19,126	$ 99,309	$ 83,054	$ 64,757
Cost of revenues (excluding depreciation and amortization of property and equipment)	6,966				4,794	4,668	4,399	3,780	21,399	17,641	12,502
Gross Profit	20,493				17,367	16,755	15,945	15,346	77,910	65,413	52,255
Operating expenses:
Selling and marketing									21,995	13,849	11,297
General and administrative									27,396	23,135	18,676
Research and development									13,096	9,605	4,735
Depreciation and amortization									3,873	2,784	1,645
Investigation and restatement										916	5,571
Total operating expenses	19,176				14,011	11,879	12,240	12,159	66,360	50,289	41,924
Operating income	1,317				3,356	4,876	3,705	3,187	11,550	15,124	10,331
Net income	1,481				1,775	2,702	2,505	1,944	8,104	8,926	6,260
Accrued preferred stock dividends	(82)				(82)	(83)	(82)	(88)	(330)	(335)	(359)
Net income attributable to common stockholders	$ 1,399				$ 1,693	$ 2,619	$ 2,423	$ 1,856	$ 7,774	$ 8,591	$ 5,901
Basic net income per share	$ 0.02				$ 0.01	$ 0.02	$ 0.02	$ 0.02	$ 0.07	$ 0.07	$ 0.05
Diluted net income per share	$ 0.01				$ 0.01	$ 0.02	$ 0.02	$ 0.02	$ 0.06	$ 0.07	$ 0.05
As Previously Reported
Schedule of Quarterly Financial Information [Line Items]
Revenues		$ 24,920	$ 24,103	$ 22,827
Cost of revenues (excluding depreciation and amortization of property and equipment)		5,101	4,936	4,396							$ 500
Gross Profit		19,819	19,167	18,431
Operating expenses:
General and administrative										$ 2,200	$ 1,400
Total operating expenses		17,746	15,935	13,503
Operating income		2,073	3,232	4,928
Net income		1,696	1,833	3,094
Accrued preferred stock dividends		(83)	(82)	(83)
Net income attributable to common stockholders		$ 1,613	$ 1,751	$ 3,011
Basic net income per share		$ 0.01	$ 0.01	$ 0.03
Diluted net income per share		$ 0.01	$ 0.02	$ 0.02