Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 01, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | EVBG | |
Entity Registrant Name | EVERBRIDGE, INC. | |
Entity Central Index Key | 1,437,352 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,385,797 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 102,599 | $ 103,051 |
Short-term investments | 3,423 | 42,908 |
Accounts receivable, net | 33,064 | 31,699 |
Prepaid expenses | 4,949 | 2,563 |
Deferred costs | 5,419 | 2,429 |
Other current assets | 2,858 | 811 |
Total current assets | 152,312 | 183,461 |
Property and equipment, net | 2,722 | 2,796 |
Capitalized software development costs, net | 11,487 | 10,005 |
Goodwill | 53,048 | 31,328 |
Intangible assets, net | 23,842 | 8,634 |
Deferred costs | 7,792 | |
Other assets | 242 | 189 |
Total assets | 251,445 | 236,413 |
Current liabilities: | ||
Accounts payable | 4,154 | 2,446 |
Accrued payroll and employee related liabilities | 12,727 | 11,111 |
Accrued expenses | 4,277 | 1,825 |
Deferred revenue | 79,417 | 70,090 |
Note payable | 440 | |
Contingent liabilities | 682 | |
Other current liabilities | 791 | 808 |
Total current liabilities | 101,806 | 86,962 |
Long-term liabilities: | ||
Deferred revenue, noncurrent | 3,046 | 2,982 |
Convertible senior notes | 91,755 | 89,481 |
Deferred tax liabilities | 922 | 482 |
Other long term liabilities | 1,079 | 515 |
Total liabilities | 198,608 | 180,422 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, par value $0.001, 10,000,000 shares authorized, no shares issued or outstanding as of June 30, 2018 and December 31, 2017, respectively | ||
Common stock, $0.001 par value, 100,000,000 shares authorized, 29,259,367 and 28,330,460 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively | 29 | 28 |
Additional paid-in capital | 184,654 | 164,995 |
Accumulated deficit | (129,415) | (109,252) |
Accumulated other comprehensive income (loss) | (2,431) | 220 |
Total stockholders’ equity | 52,837 | 55,991 |
Total liabilities and stockholders’ equity | $ 251,445 | $ 236,413 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 29,259,367 | 28,330,460 |
Common stock, shares outstanding | 29,259,367 | 28,330,460 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 35,822 | $ 25,021 | $ 66,341 | $ 47,865 |
Cost of revenue | 11,532 | 7,239 | 21,192 | 14,893 |
Gross profit | 24,290 | 17,782 | 45,149 | 32,972 |
Operating expenses: | ||||
Sales and marketing | 19,179 | 11,057 | 34,955 | 21,963 |
Research and development | 12,027 | 5,179 | 20,198 | 10,456 |
General and administrative | 8,635 | 5,065 | 16,479 | 10,265 |
Total operating expenses | 39,841 | 21,301 | 71,632 | 42,684 |
Operating loss | (15,551) | (3,519) | (26,483) | (9,712) |
Other income (expense), net: | ||||
Interest and investment income | 400 | 77 | 856 | 128 |
Interest expense | (1,572) | (2) | (3,144) | (3) |
Other expense, net | (6) | (6) | (204) | (38) |
Total other income (expense), net | (1,178) | 69 | (2,492) | 87 |
Loss before income taxes | (16,729) | (3,450) | (28,975) | (9,625) |
Provision for income taxes | (189) | 13 | (285) | (14) |
Net loss | $ (16,918) | $ (3,437) | $ (29,260) | $ (9,639) |
Net loss per share attributable to common stockholders: | ||||
Basic | $ (0.59) | $ (0.12) | $ (1.02) | $ (0.35) |
Diluted | $ (0.59) | $ (0.12) | $ (1.02) | $ (0.35) |
Weighted-average common shares outstanding: | ||||
Basic | 28,848,809 | 27,877,346 | 28,642,887 | 27,526,038 |
Diluted | 28,848,809 | 27,877,346 | 28,642,887 | 27,526,038 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (16,918) | $ (3,437) | $ (29,260) | $ (9,639) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment, net of taxes | (2,384) | 85 | (2,651) | 126 |
Total comprehensive loss | $ (19,302) | $ (3,352) | $ (31,911) | $ (9,513) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (unaudited) - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2017 | $ 55,991 | $ 28 | $ 164,995 | $ (109,252) | $ 220 |
Balance, shares at Dec. 31, 2017 | 28,330,460 | ||||
Cumulative effect of adoption of ASU 2014-09, net of taxes | 9,097 | 9,097 | |||
Stock-based compensation | 16,716 | 16,716 | |||
Vesting of restricted stock units | 444,248 | ||||
Restricted stock units withheld to settle employee tax withholding liability | (3,772) | (3,772) | |||
Restricted stock units withheld to settle employee tax withholding liability, shares | (81,097) | ||||
Exercise of stock options | $ 5,835 | $ 1 | 5,834 | ||
Exercise of stock options, shares | 521,563 | 521,563 | |||
Issuance of shares under employee stock purchase plan | $ 881 | 881 | |||
Issuance of shares under employee stock purchase plan, shares | 44,193 | ||||
Other comprehensive income | (2,651) | (2,651) | |||
Net loss | (29,260) | (29,260) | |||
Balance at Jun. 30, 2018 | $ 52,837 | $ 29 | $ 184,654 | $ (129,415) | $ (2,431) |
Balance, shares at Jun. 30, 2018 | 29,259,367 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (29,260) | $ (9,639) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 6,328 | 5,228 |
Amortization of deferred costs | 2,513 | 2,808 |
Loss on disposal of assets | 84 | |
Deferred income taxes | 101 | 41 |
Accretion of interest on convertible senior notes | 2,274 | |
Non-cash investment income | (228) | (8) |
Provision for doubtful accounts and sales reserve | 24 | 369 |
Change in fair value of contingent consideration | (250) | |
Stock-based compensation | 16,512 | 2,044 |
Increase (decrease) in operating assets and liabilities: | ||
Accounts receivable | 5,627 | (2,973) |
Prepaid expenses | (2,011) | (1,044) |
Deferred costs | (4,198) | (2,427) |
Other assets | (1,005) | (352) |
Accounts payable | 93 | (430) |
Accrued payroll and employee related liabilities | 305 | 500 |
Accrued expenses | 566 | 293 |
Deferred revenue | 1,061 | 2,868 |
Other liabilities | 12 | 363 |
Net cash used in operating activities | (1,452) | (2,359) |
Cash flows from investing activities: | ||
Capital expenditures | (414) | (505) |
Proceeds from sale leaseback | 395 | |
Payments for acquisition of business, net of acquired cash | (35,857) | (21,529) |
Purchase of short-term investments | (30,932) | (12,427) |
Maturities of short-term investments | 70,645 | |
Additions to intangibles | (168) | |
Additions to capitalized software development costs | (4,038) | (3,044) |
Net cash used in investing activities | (764) | (37,110) |
Cash flows from financing activities: | ||
Restricted stock units withheld to settle employee tax withholding liability | (3,772) | |
Payment of contingent consideration | (431) | |
Proceeds from follow on offering, net | 10,444 | |
Payments of public offering costs | (729) | |
Payments of debt issuance costs | (84) | |
Proceeds from employee stock purchase plan | 881 | 854 |
Proceeds from stock option exercises | 5,835 | 1,115 |
Net cash provided by financing activities | 2,429 | 11,684 |
Effect of exchange rates on cash and cash equivalents | (665) | (147) |
Net decrease in cash, cash equivalents and restricted cash | (452) | (27,932) |
Cash, cash equivalents and restricted cash—beginning of period | 103,051 | 60,765 |
Cash, cash equivalents and restricted cash—end of period | 102,599 | 32,833 |
Supplemental disclosures of cash flow information: | ||
Interest | 771 | |
Taxes, net of refunds received | 41 | 3 |
Supplemental disclosure of non-cash activities: | ||
Capitalized assets included in accounts payable and accrued expenses | 85 | 1,335 |
Deferred offering costs in accounts payable and accrued expenses | 143 | |
Stock-based compensation capitalized for software development | $ 204 | $ 25 |
Business and Nature of Operatio
Business and Nature of Operations | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business and Nature of Operations | (1) Business and Nature of Operations Everbridge, Inc., a Delaware corporation (together with its wholly-owned subsidiaries, referred to as Everbridge or the Company), is a global software company that provides critical communications and enterprise safety applications that enable customers to automate and accelerate the process of keeping people safe and businesses running during critical events. The Company’s SaaS-based platform enables the Company’s customers to quickly and reliably deliver messaging to a large group of people during critical situations. The Company’s enterprise applications, such as Mass Notification, Incident Management, IT Alerting, Safety Connection, Community Engagement, Secure Messaging, Crisis Commander and Visual Command Center, automate numerous critical communications processes. The Company generates revenue primarily from subscription fees to the Company’s enterprise applications. The Company has operations in the United States, Norway, India, the Netherlands, Sweden, England and China. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP and applicable rules and regulations of the Securities and Exchange Commission, or the SEC regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The condensed consolidated balance sheet as of December 31, 2017, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. Certain reclassifications have been made to conform prior-year amounts to the current-year presentation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2018 or any future period. Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update ASU, No. 2014-09, Revenue from Contracts with Customers, as discussed in this Note 2 and Note 15. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of consolidated 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 consolidated financial statements, and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Assets and liabilities which are subject to judgment and use of estimates include allowances for doubtful accounts, the fair value of assets acquired and liabilities assumed in business combinations, the recoverability of goodwill and long-lived assets, valuation allowances with respect to deferred tax assets, useful lives associated with property and equipment and intangible assets, contingencies, and the valuation and assumptions underlying stock-based compensation. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. In addition, the Company engaged valuation specialists to assist with management’s determination of the valuation of its fair values of assets acquired and liabilities assumed in business combinations. Concentrations of Credit and Business Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains cash balances at several banks. Accounts located in the United States are insured by the Federal Deposit Insurance Corporation, or FDIC, up to $250,000. From time to time, balances may exceed amounts insured by the FDIC. The Company has not experienced any losses in such amounts. The Company’s accounts receivable are generally unsecured and are derived from revenue earned from customers located in the United States, Norway, Sweden and the United Kingdom and are generally denominated in U.S. dollars, Norwegian Krone, Swedish Kronor or British Pounds. Each reporting period, the Company reevaluates each customer’s ability to satisfy credit obligations and maintains an allowance for doubtful accounts based on the evaluations. No single customer comprised more than 10% of the Company’s total revenue or accounts receivable for the three and six months ended June 30, 2018 and 2017. Cash and Cash Equivalents The Company considers all highly liquid instruments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. As of June 30, 2018, $90.7 million of the Company’s cash equivalents were invested in money market funds. Short-Term Investments Short-term investments consist of highly liquid investments, primarily commercial paper, U.S. Treasury and U.S. agency securities, with maturities over three months from the date of purchase and less than 12 months from the date of the balance sheet. Debt securities, money market funds and U.S. agency bonds that the Company has the ability and positive intent to hold to maturity are carried at amortized cost, which approximates fair value. Short-term investments of $3.4 million and $42.9 million at June 30, 2018 and December 31, 2017, respectively, were classified as held-to-maturity and primarily comprised of U.S. treasury and U.S. government and agency securities. All held-to-maturity securities at June 30, 2018 have maturity dates within one year. Significant Accounting Policies Except for the accounting policies for revenue recognition and deferred commissions that were updated, as set forth below, as a result of adopting ASU No. 2014-09, there have been no changes to the Company’s significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on March 12, 2018, that have had a material impact on the Company’s condensed consolidated financial statements and related notes. Revenue Recognition The Company derives its revenues primarily from subscription services and professional services. Revenues are recognized when control of these services is transferred to the Company’s customers in an amount that reflects the consideration it expects to be entitled to in exchange for those services. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfy a performance obligation Subscription Services Revenues Subscription services revenues primarily consist of fees that provide customers access to one or more of the Company’s hosted applications for critical communications and enterprise safety applications, with routine customer support. Revenue is generally recognized over time on a ratable basis over the contract term beginning on the date that the Company’s service is made available to the customer. All services are recognized using an output measure of progress looking at time elapsed as the contracts generally provide the customer equal benefit throughout the contract period. The Company’s subscription contracts are generally two years or longer in length, billed annually in advance, and non-cancelable. Professional Services Revenues Professional services revenues primarily consist of fees for deployment and optimization services, as well as training. The majority of the Company’s consulting contracts are billed on a time and materials basis and revenue is recognized over time as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time based on the proportion of the contract performed. Contracts with Multiple Performance Obligations Some of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company determines the standalone selling prices based on the Company’s overall pricing objectives, taking into consideration market conditions and other factors, including the value of its contracts, the applications sold, customer demographics, geographic locations, and the number and types of users within its contracts. Returns The Company does not offer rights of return for its products and services in the normal course of business. Customer Acceptance The Company’s contracts with customers generally do not include customer acceptance clauses. Trade and Other Receivables Trade and other receivables are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts, which is not material. Other receivables represent unbilled receivables related to subscription and professional services contracts. Deferred Costs Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be four years. The Company has determined the period of benefit by taking into consideration its customer contracts, its technology and other factors. Amortization of deferred commissions is included in sales and marketing expenses in the accompanying condensed consolidated statements of operations. Deferred Revenue Deferred revenue consists of amounts that have been invoiced and for which the Company has the right to bill, but that have not been recognized as revenue because the related goods or services have not been transferred. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts generally do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s products and services, not to receive financing from its customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, Revenue from Contracts with Customers ("Topic 606") The Company adopted the requirements of the new revenue standard as of January 1, 2018, utilizing the modified retrospective method of transition. Adoption of the new revenue standard resulted in changes to the Company’s accounting policies for revenue recognition and deferred commissions as detailed below. The Company applied the new standard using a practical expedient where the consideration allocated to the remaining performance obligations or an explanation of when the Company expects to recognize that amount as revenue for all reporting periods presented before the date of the initial application is not disclosed. Based on the results of the Company’s evaluation, the adoption of the new revenue standard did not have a material impact on its revenue for the three or six months ended June 30, 2018. The primary impact of adopting the new revenue standard relates to the deferral of incremental commission costs of obtaining subscription contracts. Under Topic 605, the Company deferred only direct and incremental commission costs to obtain a contract and amortized those costs over one year. Under the new revenue standard, the Company defers all incremental commission costs to obtain the contract. The Company amortizes these costs over a period of benefit that the Company has determined to be four years. Adoption of the new revenue standard had no impact on total cash provided from or used in operating, financing, or investing activities in the Company’s consolidated statements of cash flows. The Company adjusted its condensed consolidated financial statements from amounts previously reported to reflect the impact of the adoption of ASU No. 2014-09. For details on the impact of the Company’s adoption of the new revenue standard, see Note 15. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business, which provides additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update provide new guidance to determine when an integrated set of assets and activities (collectively referred to as a ‘‘set’’) is not a business. The new guidance requires that, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The new guidance reduces the number of transactions that need to be evaluated as a business. The Company adopted this amendment as of January 1, 2018. The adoption of ASU 2017-01 did not have a material impact on the Company's financial statements for the three or six months ended June 30, 2018. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows, Restricted Cash (Topic 230), which requires that a statement of cash flows explain the change during the period for the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective for the fiscal year beginning January 1, 2018. The Company adopted ASU No. 2016-18 retrospectively, effective January 1, 2018. The adoption of ASU 2016-08 did not have a material impact on the Company's financial statements for the period ended June 30, 2018 and June 30, 2017, respectively. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments (Topic 230), which addresses eight specific cash flow issues to reduce the diversity in practice for appropriate classification on the statement of cash flows. The Company has adopted this guidance during the first quarter of 2018, and there was no significant effect of the standard on its condensed consolidated financial statements. Recently Issued Accounting Guidance Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act of 2017. The new standard is effective for the Company beginning on January 1, 2019, with early adoption permitted. The Company will adopt ASU 2018-02 effective January 1, 2019. The Company does not expect the adoption of this standard will have a material effect on its financial position, results of operations or cash flows. Other accounting standard updates effective for interim and annual periods beginning after December 31, 2018 are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2018 | |
Accounts Receivable Net [Abstract] | |
Accounts Receivable, Net | (3) Accounts Receivable, Net Accounts receivable, net is as follows (in thousands): As of As of June 30, 2018 December 31, 2017 Accounts receivable $ 33,780 $ 32,662 Allowance for doubtful accounts (716 ) (963 ) Net accounts receivable $ 33,064 $ 31,699 Bad debt expense was $0.1 million and 0.3 million for the three months ended June 30, 2018 and 2017, respectively. Bad debt expense was a credit of $0.1 million and expense of $0.4 million for the six months ended June 30, 2018 and 2017, respectively. The following table summarizes the changes in the allowance for doubtful accounts (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ (637 ) $ (359 ) $ (863 ) $ (374 ) Additions (83 ) (289 ) 109 (289 ) Write-offs 4 38 38 53 Balance, end of period $ (716 ) $ (610 ) $ (716 ) $ (610 ) The following table summarizes the changes in the sales reserve (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ (78 ) $ (125 ) $ (100 ) $ (45 ) Additions (133 ) — (133 ) (80 ) Write-offs 2 9 24 9 Balance, end of period $ (209 ) $ (116 ) $ (209 ) $ (116 ) As a result of the adoption of the new revenue standard, the Company reclassified its sales reserve from a current asset to a current liability within the consolidated financial statements, effective January 1, 2018. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | (4) Property and Equipment Property and equipment consisted of the following (in thousands): Useful life in years As of June 30, 2018 As of December 31, 2017 Furniture and equipment 5 $ 1,903 $ 1,854 System hardware 5 1,714 1,623 Office computers 3 3,124 2,586 Computer and system software 3 1,222 1,193 7,963 7,256 Less accumulated depreciation and amortization (5,241 ) (4,460 ) Property and equipment, net $ 2,722 $ 2,796 Depreciation and amortization expense for property and equipment was $0.5 million and $0.4 million for the three months ended June 30, 2018 and 2017, respectively. Depreciation and amortization expense for property and equipment was $0.9 million and $1.1 million for the six months ended June 30, 2018 and 2017, respectively. |
Capitalized Software Developmen
Capitalized Software Development Costs | 6 Months Ended |
Jun. 30, 2018 | |
Research And Development [Abstract] | |
Capitalized Software Development Costs | (5) Capitalized Software Development Costs Capitalized software development costs consisted of the following (in thousands): As of June 30, 2018 Gross carrying amount Amortization period Accumulated amortization Net carrying amount Capitalized software development costs $ 41,141 3 years $ (29,654 ) $ 11,487 Total capitalized software development costs $ 41,141 $ (29,654 ) $ 11,487 As of December 31, 2017 Gross carrying amount Amortization period Accumulated amortization Net carrying amount Capitalized software development costs $ 36,899 3 years $ (26,894 ) $ 10,005 Total capitalized software development costs $ 36,899 $ (26,894 ) $ 10,005 The Company capitalized software development costs of $4.2 million and $3.1 million for the six months ended June 30, 2018 and June 30, 2017, respectively. Amortization expense for capitalized software development costs was $1.4 million and $1.1 million for the three months ended June 30, 2018 and 2017, respectively. Amortization expense for capitalized software development was $2.8 million and $2.6 million for the six months ended June 30, 2018 and 2017, respectively. Amortization of capitalized software development costs is classified within cost of revenue in the consolidated statements of operations. The expected amortization of capitalized software development costs, as of June 30, 2018, for each of the following years is as follows (in thousands): Amounts 2018 (for the remaining six months) $ 3,047 2019 4,850 2020 2,853 2021 737 $ 11,487 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (6) Fair Value Measurements The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value because of the short maturity of these items. Certain assets, including long-lived assets, goodwill and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. For the six months ended June 30, 2018 and year ended December 31, 2017, no impairments were identified. The following table summarizes the Company's financial assets and liabilities measured at fair value on a recurring basis at June 30, 2018 and December 31, 2017 by level within the fair value hierarchy. Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement (in thousands): As of June 30, 2018 Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total Fair (Level 1) (Level 2) (Level 3) Value (in thousands) Assets: Cash equivalents: Money market funds $ 90,704 — — $ 90,704 Short-term investments: U.S. government and agency securities — 3,423 — 3,423 Total financial assets $ 90,704 $ 3,423 $ — $ 94,127 At December 31, 2017 Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total Fair (Level 1) (Level 2) (Level 3) Value (in thousands) Assets: Cash equivalents: Money market funds $ 35,521 — — $ 35,521 U.S. treasury securities — 11,974 11,974 U.S. government and agency securities — 50,352 — 50,352 Short-term investments: U.S. treasury securities — 12,972 — 12,972 U.S. government and agency securities — 29,936 — 29,936 Total financial assets $ 35,521 $ 105,234 $ — $ 140,755 Liabilities: Contingent consideration — — $ 682 $ 682 Total financial liabilities $ — $ — $ 682 $ 682 The Company classifies and discloses fair value measurements in one of the following three categories of fair value hierarchy: Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities. Level 2 - Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s assets that are measured by management at fair value on a recurring basis are generally classified within Level 1 or Level 2 of the fair value hierarchy. The Company did not have any transfers into and out of Level 1 or Level 2 during the six months ended June 30, 2018. The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. The fair value of the Company’s investments in certain money market funds is their face value and such instruments are classified as Level 1 and are included in cash and cash equivalents on the consolidated balance sheets. At June 30, 2018 the Company’s Level 2 securities were priced by pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. The following table summarizes the changes in Level 3 financial instruments (in thousands). Amount Fair Value at December 31, 2017 $ 682 Foreign currency translation (1 ) Change in fair value (250 ) Payments made during the year (431 ) Balance at June 30, 2018 $ — The Company estimates the fair value of the convertible senior notes based on their last actively traded prices (Level 1) or market-observable inputs (Level 2). As of June 30, 2018 and December 31, 2017 the fair value of the convertible senior notes was determined to be $163.6 million and $126.9 million, respectively and the carrying value of the notes was $91.8 million and $89.5 million, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | (7) Goodwill and Intangible Assets Goodwill was $53.0 million and $31.3 million as of June 30, 2018 and December 31, 2017, respectively. There were no impairments recorded against goodwill during the six months ended June 30, 2018 and for the year ended December 31, 2017. The following table displays the changes in the gross carrying amount of goodwill (in thousands): Amount Balance at December 31, 2017 $ 31,328 Foreign currency translation (1,174 ) Increase due to acquisitions 22,894 Balance at June 30, 2018 $ 53,048 Intangible assets consisted of the following (in thousands): As of June 30, 2018 Gross carrying amount Weighted average life (years) Accumulated amortization Net carrying amount Amortizable intangible assets: Developed technology $ 5,739 3.03 $ (2,620 ) $ 3,119 Tradenames 3,231 4.43 (1,057 ) 2,174 Non-compete 240 2.00 (170 ) 70 Customer relationships 23,864 5.00 (5,385 ) 18,479 Total intangible assets $ 33,074 $ (9,232 ) $ 23,842 As of December 31, 2017 Gross carrying amount Weighted average life (years) Accumulated amortization Net carrying amount Amortizable intangible assets: Developed technology $ 4,065 3.04 $ (2,017 ) $ 2,048 Tradenames 2,495 5.18 (701 ) 1,794 Non-compete 240 2.00 (110 ) 130 Customer relationships 8,556 5.00 (3,894 ) 4,662 Total intangible assets $ 15,356 $ (6,722 ) $ 8,634 Amortization expense for intangible assets was $1.8 million and $0.9 million for the three months ended June 30, 2018 and 2017, respectively. Amortization expense for intangible assets was $2.7 million and $1.5 million for the six months ended June 30, 2018 and 2017, respectively. The expected amortization of the intangible assets, as of June 30, 2018, for each of the next five years and thereafter is as follows (in thousands): Amounts 2018 (for the remaining six months) $ 3,760 2019 6,413 2020 5,028 2021 4,541 2022 and thereafter 4,100 $ 23,842 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | (8) Acquisitions 2018 Acquisitions The Company accounted for the acquisitions of Unified Messaging Systems ASA, Respond B.V. and PlanetRisk, Inc. using the acquisition method of accounting for business combinations under ASC 805, Business Combinations As the Company finalizes their estimation of the fair value of the assets acquired and liabilities assumed, additional adjustments may be recorded during the measurement period (a period not to exceed 12 months). Fair value estimates are based on a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives and the expected future cash flows and related discount rates, can materially impact the Company’s results of operations. Significant inputs used for the model included the amount of cash flows, the expected period of the cash flows and the discount rates. The finalization of the acquisition accounting assessment may result in a change in the valuation of the deferred tax assets, deferred tax liabilities and intangible assets, which could have a material impact on the Company’s results of operations and financial position. Unified Messaging Systems ASA On April 3, 2018, the Company acquired Unified Messaging Systems ASA, or UMS, in exchange for cash consideration of $31.9 million, net of cash acquired. UMS is an industry leader in the area of critical communication and population alerting systems and is headquartered in Oslo, Norway. The following table summarizes the allocation of the purchase consideration and the Company’s preliminary estimate of acquisition date fair values of the assets acquired and the liabilities assumed for the acquisition of UMS made by the Company. The following table also summarizes the aggregate consideration for UMS as of June 30, 2018 (in thousands): UMS Assets acquired Accounts receivable 3,834 Other assets 1,383 Property and equipment 27 Trade names 520 Acquired technology 1,460 Customer relationships 13,800 Goodwill 20,201 Total assets acquired $ 41,225 Liabilities assumed Accounts payable and accrued expenses 3,981 Deferred revenue 5,210 Other liabilities 150 Net assets acquired $ 31,884 Consideration paid Cash paid, net of cash acquired 31,884 Total $ 31,884 The weighted average useful life of all identified acquired intangible assets is 4.68 years. The weighted average useful lives for acquired technologies, customer relationships and trade names are 3.0 years, 5.0 years and 1.0 years, respectively. Identifiable intangible assets with definite lives are amortized over the period of estimated benefit using the straight-line method and the estimated useful lives of one to five years. The straight-line method of amortization represents the Company’s best estimate of the distribution of the economic value of the identifiable intangible assets. As a result of the acquisition, the Company recorded $20.2 million of goodwill. The goodwill balance is primarily attributed to the anticipated synergies from the acquisition and expanded market opportunities with respect to the integration of UMS’s products with the Company's other solutions. The Company believes that the factors listed above in relation to the purchase of UMS support the amount of goodwill recorded as a result of the purchase price paid for the acquisition, in relation to other acquired tangible and intangible assets. The resulting goodwill from the UMS acquisition is deductible for income tax purposes. For the three and six months ended June 30, 2018, the Company incurred transaction costs of $0.1 million and $0.4 million, respectively, in connection with the UMS acquisition, which were expensed as incurred and included in general and administrative expenses within the accompanying consolidated statements of operations. PlanetRisk, Inc. On May 1, 2018, the Company acquired certain assets from PlanetRisk, Inc., or PlanetRisk, in exchange for cash consideration of $2.0 million. PlanetRisk is a provider of data analytics and visualization solutions and is headquartered in Tysons Corner, Virginia. The following table summarizes the allocation of the purchase consideration and the Company’s preliminary estimate of acquisition date fair values of the assets acquired and the liabilities assumed for the acquisition of PlanetRisk made by the Company. The following table also summarizes the aggregate consideration for PlanetRisk as of June 30, 2018 (in thousands): PlanetRisk Assets acquired Accounts receivable 2,862 Property and equipment 488 Acquired technology 160 Customer relationships 1,100 Goodwill 1,205 Total assets acquired $ 5,815 Liabilities assumed Accounts payable and accrued expenses 694 Deferred revenue 2,810 Other liabilities 290 Net assets acquired $ 2,021 Consideration paid Cash paid, net of cash acquired 2,021 Total $ 2,021 The weighted average useful life of all identified acquired intangible assets is 4.75 years. The weighted average useful lives for acquired technologies and customer relationships are 3.0 years and 5.0 years, respectively. Identifiable intangible assets with definite lives are amortized over the period of estimated benefit using the straight-line method and the estimated useful lives of three to five years. The straight-line method of amortization represents the Company’s best estimate of the distribution of the economic value of the identifiable intangible assets. As a result of the acquisition, the Company recorded $1.2 million of goodwill. The goodwill balance is primarily attributed to the anticipated synergies from the acquisition and expanded market opportunities with respect to the integration of PlanetRisk’s products with the Company's other solutions. The Company believes that the factors listed above in relation to the purchase of PlanetRisk support the amount of goodwill recorded as a result of the purchase price paid for the acquisition, in relation to other acquired tangible and intangible assets. The resulting goodwill from the PlanetRisk acquisition is not deductible for income tax purposes. For the three and six months ended June 30, 2018, the Company incurred transaction costs of $0.1 million and $0.1 million, respectively, in connection with the PlanetRisk acquisition, which were expensed as incurred and included in general and administrative expenses within the accompanying consolidated statements of operations. Respond Acquisition On May 18, 2018, the Company acquired Respond B.V., or Respond, in exchange for current cash consideration of $2.0 million, net of cash acquired and issued a note to be paid one year after the transaction date in the amount of $0.4 million, for a total purchase price of $2.6 million. Respond is a provider of critical communication solutions and is headquartered in the Netherlands. The following table summarizes the allocation of the purchase consideration and the Company’s preliminary estimate of acquisition date fair values of the assets acquired and the liabilities assumed for the acquisition of Respond made by the Company. The following table also summarizes the aggregate consideration for Respond as of June 30, 2018 (in thousands): Respond Assets acquired Accounts receivable 86 Other assets 87 Property and equipment 19 Trade names 80 Acquired technology 160 Customer relationships 1,100 Goodwill 1,488 Total assets acquired $ 3,020 Liabilities assumed Accounts payable and accrued expenses 208 Deferred revenue 220 Other liabilities 257 Net assets acquired $ 2,335 Consideration paid Cash paid, net of cash acquired 1,952 Note payable 383 Total $ 2,335 The weighted average useful life of all identified acquired intangible assets is 4.63 years. The weighted average useful lives for acquired technologies, customer relationships and trade names are 3.0 years, 5.0 years and 1.0 years, respectively. Identifiable intangible assets with definite lives are amortized over the period of estimated benefit using the straight-line method and the estimated useful lives of one to five years. The straight-line method of amortization represents the Company’s best estimate of the distribution of the economic value of the identifiable intangible assets. As a result of the acquisition, the Company recorded $1.5 million of goodwill. The goodwill balance is primarily attributed to the anticipated synergies from the acquisition and expanded market opportunities with respect to the integration of Respond’s products with the Company's other solutions. The Company believes that the factors listed above in relation to the purchase of Respond support the amount of goodwill recorded as a result of the purchase price paid for the acquisition, in relation to other acquired tangible and intangible assets. The resulting goodwill from the Respond acquisition is deductible for income tax purposes. For the three and six months ended June 30, 2018, the Company incurred transaction costs of $0.1 million and $0.1 million, respectively, in connection with the Respond acquisition, which were expensed as incurred and included in general and administrative expenses within the accompanying consolidated statements of operations. Neither the investment in the assets nor the results of operations of the three combined acquisitions were significant to the Company’s consolidated financial position or results of operations, and thus pro forma information is not presented. 2017 Acquisitions IDV Solutions On January 27, 2017, the Company acquired IDV Solutions, or IDV, in exchange for current cash consideration of $21.2 million, net of cash acquired and the fair value of contingent future consideration. As a result of the acquisition, the Company recorded $21.2 million of goodwill. The goodwill balance is primarily attributed to the anticipated synergies from the acquisition and expanded market opportunities with respect to the integration of IDV’s products with the Company's other solutions. The Company believes that the factors listed above in relation to the purchase of IDV support the amount of goodwill recorded as a result of the purchase price paid for the acquisition, in relation to other acquired tangible and intangible assets. The resulting goodwill from the IDV acquisition was deductible for income tax purposes. The operations of the IDV business are included in the Company’s operating results since the date of acquisition. Unaudited Pro Forma Financial Information The following unaudited pro forma statement of operations data presents the results of the Company’s acquisition of IDV completed during the year ended December 31, 2017, assuming that the business acquisition was completed during 2017 and had occurred on January 1, 2017. The unaudited pro forma statement of operations data below includes adjustments for additional amortization expense related to acquired intangible assets and depreciation assuming the 2017 acquisitions had occurred on January 1, 2017. Revenue Net income (loss) Results of acquired business included in the six months ended (in thousands): From the acquisition date to June 30, 2017 $ 3,018 $ (1,583 ) For the six months ended June 30, 2017 pro forma $ 3,555 $ (2,337 ) Three Months Ended June 30, Six Months Ended June 30, 2017 2017 Basic and diluted earnings per share pro forma $ (0.03 ) $ (0.08 ) The unaudited pro forma information presented does not purport to be indicative of the results that would have been achieved had the acquisition been consummated at January 1, 2017 nor of the results which may occur in the future. The pro forma adjustments are based upon available information and certain assumptions that the Company believes are reasonable. |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | (9) Convertible Senior Notes In November 2017, the Company issued $115.0 million aggregate principal amount of 1.50% convertible senior notes, or the Notes, due November 1, 2022, unless earlier repurchased by the Company or converted by the holder pursuant to their terms. Interest is payable semiannually in arrears on May 1 and November 1 of each year, commencing on May 1, 2018. The Notes are governed by an Indenture between the Company, as issuer, and U.S. Bank, National Association, as trustee. The Notes are unsecured and rank: senior in right of payment to the Company’s future indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to the Company’s existing and future indebtedness that is not so subordinated; effectively subordinated in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally subordinated to all existing and future indebtedness and other liabilities incurred by the Company’s subsidiaries. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of common stock, at the Company’s election. The Notes have an initial conversion rate of 29.6626 shares of common stock per $1,000 principal amount of Notes. This represents an initial effective conversion price of approximately $33.71 per share of common stock and approximately 3.4 million shares issuable upon conversion. Throughout the term of the Notes, the conversion rate may be adjusted upon the occurrence of certain events. Holders of the Notes will not receive any cash payment representing accrued and unpaid interest, if any, upon conversion of a Note, except in limited circumstances. Accrued but unpaid interest will be deemed to be paid by cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock paid or delivered, as the case may be, to the holder upon conversion of a Note. Prior to the close of business on the business day immediately preceding May 1, 2022, the Notes will be convertible at the option of holders during certain periods, only upon satisfaction of certain conditions set forth below. On or after May 1, 2022, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes at the conversion rate at any time regardless of whether the conditions set forth below have been met. Holders may convert all or a portion of their Notes prior to the close of business on the business day immediately preceding May 1, 2022, in multiples of $1,000 principal amount, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on March 31, 2018 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period, or the Notes Measurement Period, in which the “trading price” (as the term is defined in the Indenture) per $1,000 principal amount of notes for each trading day of such Notes Measurement Period was less than 98% of the product of the last reported sale price of the Company’s common stock on such trading day and the conversion rate on each such trading day; • If the Company calls any or all of the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the maturity date; or • upon the occurrence of specified corporate events. Based on the market price of the Company’s common stock during the 30 trading days preceding June 30, 2018, the Notes are convertible at the option of the debt holder as of June 30, 2018. Based on market data available for publicly traded, senior, unsecured corporate bonds issued by companies in the same industry and with similar maturity, the Company estimated the implied interest rate of its Notes to be approximately 6.93%, assuming no conversion option. Assumptions used in the estimate represent what market participants would use in pricing the equity component, including market interest rates, credit standing, and yield curves, all of which are defined as Level 2 observable inputs. The estimated implied interest rate was applied to the Notes, which resulted in a fair value of the liability component of $92.1 million upon issuance, calculated as the present value of implied future payments based on the $115.0 million aggregate principal amount. The excess of the principal amount of the liability component over its carrying amount, or the debt discount, is amortized to interest expense over the term of the Notes. The $22.9 million difference between the aggregate principal amount of $115.0 million and the estimated fair value of the liability component was recorded in additional paid-in capital as the Notes were not considered redeemable. In accounting for the transaction costs related to the issuance of the Notes, the Company allocated the total amount incurred to the liability and equity components based on their estimated relative fair values. Transaction costs attributable to the liability component, totaling $3.2 million, are being amortized to expense over the term of the Notes, and transaction costs attributable to the equity component, totaling $0.8 million, and were netted with the equity component in shareholders’ equity. The Notes consist of the following (in thousands): for the period June 30, 2018 December 31, 2017 Liability component: Principal $ 115,000 $ 115,000 Less: debt discount, net of amortization (23,245 ) (25,519 ) Net carrying amount $ 91,755 $ 89,481 Equity component (a) 22,094 22,094 a) Recorded in the consolidated balance sheet within additional paid-in capital, net of $0.8 million transaction costs in equity as of December 31, 2017. The following table sets forth total interest expense recognized related to the Notes (in thousands): As of June 30, 2018 December 31, 2017 1.50% coupon $ 868 $ 192 Amortization of debt discount and transaction costs 2,274 499 $ 3,142 $ 691 As of June 30, 2018 and December 31, 2017, the fair value of the Notes, which was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the Notes in an over-the-counter market (Level 2), and carrying value of debt instruments (carrying value excludes the equity component of the Company’s convertible notes classified in equity) were as follows (in thousands): June 30, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value Convertible senior notes $ 163,615 $ 91,755 $ 126,931 $ 89,481 In connection with the issuance of the Notes, the Company entered into capped call transactions with certain counterparties affiliated with the initial purchasers and others. The capped call transactions are expected to reduce potential dilution of earnings per share upon conversion of the Notes. Under the capped call transactions, the Company purchased capped call options that in the aggregate relate to the total number of shares of the Company’s common stock underlying the Notes, with an initial strike price of approximately $33.71 per share, which corresponds to the initial conversion price of the Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Notes, and have a cap price of approximately $47.20. The cost of the purchased capped calls of $12.9 million was recorded to shareholders’ equity as of December 31, 2017 and will not be re-measured. Based on the closing price of the Company’s common stock of $47.42 on June 29, 2018, the if-converted value of the Notes was more than their respective principal amounts. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | (10) Stockholders’ Equity Preferred Stock As of June 30, 2018, the Company had authorized 10,000,000 shares of preferred stock, par value $0.001, of which no shares were outstanding. Common Stock As of June 30, 2018, the Company had authorized 100,000,000 shares of common stock, par value $0.001. Holders of common stock are entitled to one vote per share. At June 30, 2018 and December 31, 2017, there were 29,259,367 and 28,330,460 shares of common stock issued and outstanding, respectively. |
Stock Plans and Stock-Based Com
Stock Plans and Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Plans and Stock-Based Compensation | (11) Stock Plans and Stock-Based Compensation The Company’s 2016 Equity Incentive Plan, or the 2016 Plan, became effective on September 15, 2016. The 2016 Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights and performance share awards to employees, directors and consultants of the Company. A total of 3,893,118 shares of the Company’s common stock were initially reserved for issuance under the 2016 Plan, which is the sum of (1) 2,000,000 shares, (2) the number of shares reserved for issuance under the Company’s 2008 Equity Incentive Plan or the 2008 Plan, at the time the 2016 Plan became effective (up to a maximum of 42,934 shares) and (3) shares subject to stock options or other stock awards granted under the 2008 Plan that would have otherwise returned to the Company’s 2008 Plan (up to a maximum of 1,850,184 shares). The number of shares of common stock reserved for issuance under the 2016 Plan will automatically increase on January 1 of each year, beginning on January 1, 2017, by 3% of the number of shares of the Company’s capital stock outstanding on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s board of directors. As a result of the adoption of the 2016 Plan, no further grants may be made under the 2008 Plan. The 2008 Plan provided for the grant of stock options to the Company’s employees, directors and consultants. Stock option awards were granted with an exercise price equal to the fair market value of the Company’s common stock at the date of grant as determined by the Company’s board of directors. The option awards generally vested over four years and were exercisable any time after vesting. The stock options expire ten years after the date of grant. 2016 Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan, or the 2016 ESPP, became effective on September 15, 2016. A total of 500,000 shares of the Company’s common stock were initially reserved for issuance under the 2016 Plan. The number of shares reserved for issuance under the 2016 ESPP will automatically increase on January 1 of each year, beginning on January 1, 2017, by the lesser of 200,000 shares of the Company’s common stock, 1% of the number of shares of the Company’s common stock outstanding on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s board of directors. The 2016 ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount of up to 15% through payroll deductions of their eligible compensation, subject to any plan limitations. Except for the initial offering period, the 2016 ESPP provides for separate six-month offering periods beginning each March and September of each fiscal year. On each purchase date, eligible employees will purchase the Company’s stock at a price per share equal to 85% of the lesser of (i) the fair market value of the Company’s common stock on the offering date or (ii) the fair market value of the Company’s common stock on the purchase date. For the six months ended June 30, 2018 and 2017, 44,193 and 83,790 shares of common stock were purchased under the 2016 ESPP, respectively. The 2016 ESPP is considered compensatory for purposes of stock-based compensation expense. The Company recorded stock-based compensation expense of $0.2 million and $0.2 million for the three months ended June 30, 2018 and 2017, respectively. The Company recorded stock-based compensation expense of $0.4 million and $0.3 million for the six months ended June 30, 2018 and 2017, respectively. Stock Options The Company recorded stock-based compensation expense of $2.1 million and $1.1 million for the three months ended June 30, 2018 and 2017, respectively. The Company recorded stock-based compensation expense of $3.9 million and $2.1 million for the six months ended June 30, 2018 and 2017, respectively. The total intrinsic value of options exercised for the six months ended June 30, 2018 was $16.1 million. This intrinsic value represents the difference between the fair market value of the Company’s common stock on the date of exercise and the exercise price of each option. Based on the fair market value of the Company’s common stock at June 30, 2018, the total intrinsic value of all outstanding options was $61.3 million. The fair value of stock option grants and ESPP are determined using the Black-Scholes option pricing model with the following weighted average assumptions. In addition, the fair value per share on grant date is presented below: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Employee Stock Options: Fair value per share on grant date $43.86 $24.87 $33.06 - $43.86 $18.05 - $24.87 Expected term (in years) 6.00 6.00 6.00 6.00 - 6.11 Expected volatility 45% 60% 45% - 50% 60% Risk-free interest rate 2.98% 1.98% 2.72% - 2.98% 1.98% - 2.47% Dividend rate 0% 0% 0% 0% Employee Stock Purchase Plan: Expected term (in years) 0.50 0.50 0.50 0.50 Expected volatility 50% - 60% 60% 50% - 60% 60% Risk-free interest rate 1.18% - 1.93% 0.45% 1.18% - 1.93% 0.45% Dividend rate 0% 0% 0% 0% (1) The expected term represents the period that the stock-based compensation awards are expected to be outstanding. Since the Company did not have sufficient historical information to develop reasonable expectations about future exercise behavior, the Company used the simplified method to compute expected term, which reflects the average of the time-to-vesting and the contractual life; (2) The expected volatility of the Company’s common stock on the date of grant is based on the weighted average of the Company’s historical volatility as a public company and the volatilities of publicly traded peer companies that are reasonably comparable to the Company’s own operations; (3) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term of the options; and (4) The expected dividend yield is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on the Company’s common stock. Total unrecognized compensation cost related to nonvested stock options was approximately $19.9 million as of June 30, 2018, and is expected to be recognized over a weighted average period of 3.0 years. A summary of activities under the 2008 Plan and the 2016 Plan is shown as follows for the year ended December 31, 2017 and the six months ended June 30, 2018: Stock options outstanding Weighted average exercise price Outstanding at December 31, 2016 1,884,425 $ 10.02 Granted 1,096,881 22.84 Exercised (497,175 ) 5.77 Forfeited (43,841 ) 15.60 Outstanding at December 31, 2017 2,440,290 16.55 Granted 556,396 34.94 Exercised (521,563 ) 11.43 Forfeited (67,327 ) 15.44 Outstanding at June 30, 2018 2,407,796 $ 21.94 Stock-based compensation expense is recognized over the award’s expected vesting schedule, which is reduced for forfeitures. Stock options outstanding, and options exercisable and vested are as follows: Outstanding as of June 30, 2018 Remaining contractual life (years) Weighted average exercise price Exercisable as of June 30, 2018 Remaining contractual life (years) Weighted average exercise price 2,407,796 8.45 $ 21.94 510,494 6.93 $ 12.33 Outstanding as of December 31, 2017 Remaining contractual life (years) Weighted average exercise price Exercisable as of December 31, 2017 Remaining contractual life (years) Weighted average exercise price 2,440,290 8.28 $ 16.55 748,148 7.00 $ 10.39 Vested and nonvested stock option activity was as follows: Vested Nonvested Options outstanding Weighted average exercise price Options outstanding Weighted average exercise price Outstanding at June 30, 2018 510,094 $ 12.33 1,897,702 $ 24.53 Outstanding at December 31, 2017 748,148 $ 10.39 1,692,142 $ 19.27 Restricted Stock Units The Company has granted 466,000 restricted stock units, or RSUs, to members of its senior management and certain other employees pursuant to the 2016 Plan. The Company accounts for RSUs issued to employees at fair value, based on the market price of the Company’s common stock on the date of grant. During the three and six months ended June 30, 2018 the Company recorded $1.1 million and $2.0 million, respectively, of stock-based compensation related to the RSUs that had been issued to-date. No stock-based compensation expense was recorded for the three and six months ended June 30, 2017, respectively. There were no RSUs that vested during the three and six months ended June 30, 2018. As of June 30, 2018, there was $8.9 million of unrecognized compensation expense related to unvested employee RSU awards which is expected to be recognized over a weighted-average period of approximately 2.19 years. For RSUs subject to graded vesting, the Company recognizes compensation cost on a straight-line basis over the service period for the entire award. Performance-Based Restricted Stock Units In June 2018, the Company granted 9,000 performance-based restricted stock units, or PSUs, to members of its management pursuant to the 2016 Plan. The PSUs vest based on the Company achieving certain revenue growth thresholds which range from 20% to 40% compounded annual growth over a measure period of two years for the first 50% of PSU’s and three years for the remaining PSUs. The vesting of the PSU’s is As of June 30, 2018, there was $0.4 million of unrecognized compensation expense related to unvested PSUs which is expected to be recognized over a weighted-average period of approximately 3.25 years. The Company recognizes compensation cost on a straight-line basis over the service period for the entire award. None of the PSUs had vested as of June 30, 2018. Market-Based Restricted Stock Units The Company has granted 559,017 market-based restricted stock units, or market-based RSUs, to members of its senior management and certain other employees pursuant to the 2016 Plan. The market-based RSUs vest based on the Company achieving certain stock price thresholds which range from $35 per share to $65 per share for 30 consecutive trading days As of June 30, 2018, there was $0.1 million of unrecognized compensation expense related to unvested market based RSUs which is expected to be recognized over a weighted-average period of approximately 0.6 years. The Company recognizes compensation cost on a straight-line basis over the service period for the entire award. A summary of activity in connection with the Company’s RSUs, market-based RSUs and PSUs for the six-month period ended June 30, 2018 is as follows: Number of Shares Outstanding as of December 31, 2017 784,000 Granted 250,077 Vested (444,248 ) Forfeited (11,500 ) Outstanding as of June 30, 2018 578,329 During the six months ended June 30, 2018, 444,248 market-based RSUs vested. Stock-Based Compensation Expense The Company recorded the total stock-based compensation expense as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cost of revenue $ 940 $ 60 $ 1,565 $ 125 Sales and marketing 3,532 282 5,967 559 Research and development 3,205 176 4,515 322 General and administrative 2,345 583 4,669 1,063 Total $ 10,022 $ 1,101 $ 16,716 $ 2,069 |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | (12) Basic and Diluted Net Loss per Share Basic net loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential dilutive shares of common stock. Basic and diluted net loss per share of common stock were the same for all periods presented as the impact of all potentially dilutive securities outstanding was anti-dilutive. The following common equivalent shares were excluded from the diluted net loss per share calculation because their inclusion would have been anti-dilutive: As of June 30, 2018 2017 Stock options 2,407,796 1,956,077 Convertible senior notes 3,411,199 — Non-vested performance-based restricted stock units 9,000 — Non-vested market-based restricted stock units 110,829 — Non-vested restricted stock units 458,500 — Total 6,397,324 1,956,077 The Company is required to reserve and keep available from the Company’s authorized but unissued shares of common stock a number of shares equal to the number of shares subject to outstanding awards under the 2008 Plan and the number of shares reserved for issuance under each of the 2016 Plan and 2016 ESPP. The amount of such shares of the Company’s common stock reserved for these purposes at June 30, 2018 is as follows: Number of Shares Stock options issued and outstanding 2,407,796 Additional shares available for grant under equity plans 1,913,623 Total 4,321,419 In connection with the issuance of the Notes in November 2017, the Company paid $12.9 million to enter into capped call option agreements to reduce the potential dilution to holders of the Company’s common stock upon conversion of the Notes. The capped call option agreements are excluded from the calculation of diluted net loss per share attributable to common stockholders, as their effect is antidilutive. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (13) Income Taxes The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for U.S. deferred income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are reinvested indefinitely. The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual tax rate changes, the Company makes a cumulative adjustment in that quarter. The Company’s quarterly tax provision, and its quarterly estimate of its annual effective tax rate, are subject to significant volatility due to several factors, including the Company’s ability to accurately predict its pre-tax income and loss in multiple jurisdictions. For the three months ended June 30, 2018 and 2017, the Company recorded a provision for income taxes of $189,000 and a benefit of $13,000, respectively, resulting in an effective tax rate of 1.13% and a benefit of 0.38%, respectively. For the six months ended June 30, 2018 and 2017, the Company recorded a provision for income taxes of $285,000 and $14,000, respectively, resulting in an effective tax rate of 0.98% and 0.15%, respectively. During the current year periods, the effective tax rate is lower than the statutory federal tax rate as the Company was not able to benefit from its net operating losses due to its full valuation allowance. As of June 30, 2018, the Company had gross tax-effected unrecognized tax benefits of $0.4 million, of which $0.4 million, if recognized, would favorably impact the effective tax rate. The Company’s existing tax positions will continue to generate an increase in unrecognized tax benefits in subsequent periods. The Company’s policy is to record interest and penalties related to unrecognized tax benefits as income tax expense. During the three and six months ended June 30, 2018 and 2017, the amounts recorded related to the accrual of interest and penalties were immaterial in each period. On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act of 2017. The accounting for all items is expected to be complete when the Company’s 2017 U.S. corporate income tax return is filed in September of 2018. Any differences between what was previously recorded and the final tax return amounts or estimates made for subsequent quarters are not expected to be material. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | (14) Segment information The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, or CODM, who is the Company’s chief executive officer, in deciding how to allocate resources and assess the Company’s financial and operational performance. While the Company has applications that address multiple use cases, all of the Company’s applications operate on and leverage a single technology platform and are deployed and sold in an identical way. In addition, the Company’s CODM evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. As a result, the Company has determined that the Company’s business operates in a single operating segment. Since the Company operates as one operating segment, all required financial segment information can be found in the consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | (15) Revenue Recognition On January 1, 2018, the Company adopted the new revenue standard and applied it to all contracts using the modified retrospective method. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes made to the Company’s consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard was as follows (in thousands): Balance at December 31, 2017 Adjustments Due to ASC 606 Balance at January 1, 2018 BALANCE SHEET ASSETS Accounts receivable, net $ 31,699 $ 100 $ 31,799 Deferred Cost 2,429 2,132 4,551 Deferred Cost (non-current) — 6,965 6,965 LIABILITIES AND STOCKHOLDERS’ EQUITY Other current liabilities $ 808 $ 100 $ 908 Deferred revenue 73,072 — 73,072 Accumulated deficit (109,252 ) 9,097 (100,155 ) The impact of the adoption of the new revenue standard on the Company’s consolidated balance sheet and consolidated statement of operations was as follows (in thousands): June 30, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) BALANCE SHEET ASSETS Accounts receivable, net $ 33,064 $ 32,855 $ 209 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue (short and long term) 82,463 82,463 — Other current liabilities 791 582 209 Accumulated deficit (129,415 ) (138,303 ) 8,888 For the Three Months Ended June 30, 2018 As Reported Activity Without Adoption of ASC 606 Effect of Change Higher/(Lower) STATEMENT OF OPERATIONS Revenue $ 35,822 $ 35,822 $ — Net loss (16,918 ) (17,143 ) 225 For the Six Months Ended June 30, 2018 As Reported Activity Without Adoption of ASC 606 Effect of Change Higher/(Lower) STATEMENT OF OPERATIONS Revenue $ 66,341 $ 66,341 $ — Net loss (29,260 ) (29,469 ) 209 The following table disaggregates the Company’s revenue by geography which provides information as to the major source of revenue (in thousands). For the Six Months Ended June 30, 2018 Primary Geographic Markets Total United States $ 59,891 International 6,450 Total $ 66,341 The following table presents the Company’s revenues disaggregated by revenue source (in thousands, unaudited). Three Months Ended Six Months Ended June 30, June 30, 2018 2017 (1) 2018 2017 (1) Subscription services $ 33,804 $ 23,937 $ 62,329 $ 46,011 Professional services 2,018 1,084 4,012 1,854 Total revenues $ 35,822 $ 25,021 $ 66,341 $ 47,865 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Contract Assets The Company does not have material amounts of contract assets since revenue is recognized as control of goods is transferred or as services are performed. There are a small number of professional services that may occur over a period of time, but that period of time is generally very short in duration. Any contract assets that may arise are recorded in other assets in the Company’s consolidated balance sheet. As of June 30, 2018, the Company had $1.2 million in unbilled receivables related to services performed which were not billed. Contract Liabilities The Company’s contract liabilities consist of advance payments and deferred revenue. The Company’s contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. The Company classifies advance payments and deferred revenue as current or noncurrent based on the timing of when it expects to recognize revenue. Generally, all contract liabilities are expected to be recognized within one year and are included in deferred revenue in the Company’s consolidated balance sheet. The noncurrent portion of deferred revenue is included and separately disclosed in the Company’s consolidated balance sheet. Deferred Costs Deferred costs, which primarily consist of deferred sales commissions, were $13.2 million as of June 30, 2018. For the three and six months ended June 30, 2018, amortization expense for the deferred costs was $1.3 million and $2.6 million, respectively and there was no impairment loss in relation to the costs capitalized. Deferred Revenue $33.0 million and $60.7 million of subscription services revenue was recognized during the three and six months ended June 30, 2018 and was included in the deferred revenue balances at the beginning of the respective period. Professional services revenue recognized in the same period from deferred revenue balances at the beginning of the respective periods was not material. As of June 30, 2018, approximately $76.4 million of revenue is expected to be recognized from remaining performance obligations for subscription contracts. The Company expects to recognize revenue on approximately $73.4 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter. Revenue from remaining performance obligations for professional services contracts as of June 30, 2018 was not material. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (16) Commitments and Contingencies (a) Leases The Company leases office space in Pasadena, California; San Francisco, California; Burlington, Massachusetts; Colchester, England; Windsor, England; Lansing, Michigan, Orlando, Florida, Tysons Corner, Virginia, Norsborg, Sweden, Oslo, Norway, Tilburg, Holland and Beijing, China under operating leases and recognizes escalating rent expense on a straight-line basis over the expected lease term. Except as set forth below, there were no material changes in the Company’s commitments under contractual obligations, as disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2017 and related notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. As of June 30, 2018, future minimum lease payments under non-cancelable operating leases are as follows (in thousands): Amounts 2018 (for the remaining six months) $ 1,832 2019 3,152 2020 2,720 2021 2,644 2022 and thereafter 2,886 Total minimum lease payments $ 13,234 (b) Rent Rent expense was $0.9 million and $0.5 million for the three months ended June 30, 2018 and 2017, respectively. Rent expense was $1.6 million and $1.0 million for the six months ended June 30, 2018 and 2017, respectively. (c) Litigation In the normal course of business, the Company has been subjected to various unasserted claims. The Company does not believe these claims will have a material adverse impact to the financial statements. (d) The Company has a revolving line of credit agreement with Western Alliance Bank, which provides for a $15.0 million revolving secured credit facility maturing on June 30, 2018. Amounts outstanding under the line of credit bear interest at the prime rate plus 0.75% with accrued interest payable on a monthly basis and outstanding and unpaid principal due upon maturity. Western Alliance Bank maintains a security interest in substantially all of the Company’s tangible and intangible assets, excluding intellectual property, to secure any outstanding amounts under the loan agreement. The loan agreement contains customary events of default, conditions to borrowing and covenants, including restrictions on the Company’s ability to dispose of assets, make acquisitions, incur debt, incur liens and make distributions and dividends to stockholders. The loan agreement also includes a financial covenant related to the Company’s recurring revenue renewal rate. During the continuance of an event of default, Western Alliance Bank may accelerate amounts outstanding, terminate the credit facility and foreclose on the collateral. In June 2018 the Company extended the line of credit with the same terms as above except for a change in maturity date to September 28, 2018. As of June 30, 2018, no amounts had been drawn under the credit facility. (e) Employee Contracts The Company has entered into employment contracts with certain of the Company’s executive officers which provide for at-will employment. However, under the provisions of the contracts, the Company would incur severance obligations of up to twelve months of the executive’s annual base salary for certain events, such as involuntary terminations. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | (17) Subsequent Events In July 2018, the Company announced that it had entered into an amendment with the President of the Company under which he would forfeit options to purchase 375,000 shares of the Company’s common stock from his original 500,000 share option stock grant. At the same time, he was granted 12,500 restricted stock units which will vest over three years, based on his continued service with the Company, and 12,500 performance-based stock units which will vest based on the Company’s compound annual growth rate reaching certain targets over the two-year and three-year periods after the grant date. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP and applicable rules and regulations of the Securities and Exchange Commission, or the SEC regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The condensed consolidated balance sheet as of December 31, 2017, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. Certain reclassifications have been made to conform prior-year amounts to the current-year presentation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2018 or any future period. Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update ASU, No. 2014-09, Revenue from Contracts with Customers, as discussed in this Note 2 and Note 15. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of consolidated 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 consolidated financial statements, and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Assets and liabilities which are subject to judgment and use of estimates include allowances for doubtful accounts, the fair value of assets acquired and liabilities assumed in business combinations, the recoverability of goodwill and long-lived assets, valuation allowances with respect to deferred tax assets, useful lives associated with property and equipment and intangible assets, contingencies, and the valuation and assumptions underlying stock-based compensation. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. In addition, the Company engaged valuation specialists to assist with management’s determination of the valuation of its fair values of assets acquired and liabilities assumed in business combinations. |
Concentrations of Credit and Business Risk | Concentrations of Credit and Business Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents and accounts receivable. The Company maintains cash balances at several banks. Accounts located in the United States are insured by the Federal Deposit Insurance Corporation, or FDIC, up to $250,000. From time to time, balances may exceed amounts insured by the FDIC. The Company has not experienced any losses in such amounts. The Company’s accounts receivable are generally unsecured and are derived from revenue earned from customers located in the United States, Norway, Sweden and the United Kingdom and are generally denominated in U.S. dollars, Norwegian Krone, Swedish Kronor or British Pounds. Each reporting period, the Company reevaluates each customer’s ability to satisfy credit obligations and maintains an allowance for doubtful accounts based on the evaluations. No single customer comprised more than 10% of the Company’s total revenue or accounts receivable for the three and six months ended June 30, 2018 and 2017. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. As of June 30, 2018, $90.7 million of the Company’s cash equivalents were invested in money market funds. |
Short-Term Investments | Short-Term Investments Short-term investments consist of highly liquid investments, primarily commercial paper, U.S. Treasury and U.S. agency securities, with maturities over three months from the date of purchase and less than 12 months from the date of the balance sheet. Debt securities, money market funds and U.S. agency bonds that the Company has the ability and positive intent to hold to maturity are carried at amortized cost, which approximates fair value. Short-term investments of $3.4 million and $42.9 million at June 30, 2018 and December 31, 2017, respectively, were classified as held-to-maturity and primarily comprised of U.S. treasury and U.S. government and agency securities. All held-to-maturity securities at June 30, 2018 have maturity dates within one year. |
Significant Accounting Policies | Significant Accounting Policies Except for the accounting policies for revenue recognition and deferred commissions that were updated, as set forth below, as a result of adopting ASU No. 2014-09, there have been no changes to the Company’s significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on March 12, 2018, that have had a material impact on the Company’s condensed consolidated financial statements and related notes. |
Revenue Recognition | Revenue Recognition The Company derives its revenues primarily from subscription services and professional services. Revenues are recognized when control of these services is transferred to the Company’s customers in an amount that reflects the consideration it expects to be entitled to in exchange for those services. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfy a performance obligation Subscription Services Revenues Subscription services revenues primarily consist of fees that provide customers access to one or more of the Company’s hosted applications for critical communications and enterprise safety applications, with routine customer support. Revenue is generally recognized over time on a ratable basis over the contract term beginning on the date that the Company’s service is made available to the customer. All services are recognized using an output measure of progress looking at time elapsed as the contracts generally provide the customer equal benefit throughout the contract period. The Company’s subscription contracts are generally two years or longer in length, billed annually in advance, and non-cancelable. Professional Services Revenues Professional services revenues primarily consist of fees for deployment and optimization services, as well as training. The majority of the Company’s consulting contracts are billed on a time and materials basis and revenue is recognized over time as the services are performed. For contracts billed on a fixed price basis, revenue is recognized over time based on the proportion of the contract performed. Contracts with Multiple Performance Obligations Some of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company determines the standalone selling prices based on the Company’s overall pricing objectives, taking into consideration market conditions and other factors, including the value of its contracts, the applications sold, customer demographics, geographic locations, and the number and types of users within its contracts. Returns The Company does not offer rights of return for its products and services in the normal course of business. Customer Acceptance The Company’s contracts with customers generally do not include customer acceptance clauses. |
Trade and Other Receivables | Trade and Other Receivables Trade and other receivables are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts, which is not material. Other receivables represent unbilled receivables related to subscription and professional services contracts. |
Deferred Costs | Deferred Costs Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized on a straight-line basis over a period of benefit that the Company has determined to be four years. The Company has determined the period of benefit by taking into consideration its customer contracts, its technology and other factors. Amortization of deferred commissions is included in sales and marketing expenses in the accompanying condensed consolidated statements of operations. |
Deferred Revenue | Deferred Revenue Deferred revenue consists of amounts that have been invoiced and for which the Company has the right to bill, but that have not been recognized as revenue because the related goods or services have not been transferred. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts generally do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s products and services, not to receive financing from its customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, Revenue from Contracts with Customers ("Topic 606") The Company adopted the requirements of the new revenue standard as of January 1, 2018, utilizing the modified retrospective method of transition. Adoption of the new revenue standard resulted in changes to the Company’s accounting policies for revenue recognition and deferred commissions as detailed below. The Company applied the new standard using a practical expedient where the consideration allocated to the remaining performance obligations or an explanation of when the Company expects to recognize that amount as revenue for all reporting periods presented before the date of the initial application is not disclosed. Based on the results of the Company’s evaluation, the adoption of the new revenue standard did not have a material impact on its revenue for the three or six months ended June 30, 2018. The primary impact of adopting the new revenue standard relates to the deferral of incremental commission costs of obtaining subscription contracts. Under Topic 605, the Company deferred only direct and incremental commission costs to obtain a contract and amortized those costs over one year. Under the new revenue standard, the Company defers all incremental commission costs to obtain the contract. The Company amortizes these costs over a period of benefit that the Company has determined to be four years. Adoption of the new revenue standard had no impact on total cash provided from or used in operating, financing, or investing activities in the Company’s consolidated statements of cash flows. The Company adjusted its condensed consolidated financial statements from amounts previously reported to reflect the impact of the adoption of ASU No. 2014-09. For details on the impact of the Company’s adoption of the new revenue standard, see Note 15. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business, which provides additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update provide new guidance to determine when an integrated set of assets and activities (collectively referred to as a ‘‘set’’) is not a business. The new guidance requires that, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The new guidance reduces the number of transactions that need to be evaluated as a business. The Company adopted this amendment as of January 1, 2018. The adoption of ASU 2017-01 did not have a material impact on the Company's financial statements for the three or six months ended June 30, 2018. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows, Restricted Cash (Topic 230), which requires that a statement of cash flows explain the change during the period for the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective for the fiscal year beginning January 1, 2018. The Company adopted ASU No. 2016-18 retrospectively, effective January 1, 2018. The adoption of ASU 2016-08 did not have a material impact on the Company's financial statements for the period ended June 30, 2018 and June 30, 2017, respectively. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments (Topic 230), which addresses eight specific cash flow issues to reduce the diversity in practice for appropriate classification on the statement of cash flows. The Company has adopted this guidance during the first quarter of 2018, and there was no significant effect of the standard on its condensed consolidated financial statements. Recently Issued Accounting Guidance Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act of 2017. The new standard is effective for the Company beginning on January 1, 2019, with early adoption permitted. The Company will adopt ASU 2018-02 effective January 1, 2019. The Company does not expect the adoption of this standard will have a material effect on its financial position, results of operations or cash flows. Other accounting standard updates effective for interim and annual periods beginning after December 31, 2018 are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounts Receivable Net [Abstract] | |
Schedule of Accounts Receivable Net | Accounts receivable, net is as follows (in thousands): As of As of June 30, 2018 December 31, 2017 Accounts receivable $ 33,780 $ 32,662 Allowance for doubtful accounts (716 ) (963 ) Net accounts receivable $ 33,064 $ 31,699 |
Schedule of Changes in Allowance for Doubtful Accounts | The following table summarizes the changes in the allowance for doubtful accounts (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ (637 ) $ (359 ) $ (863 ) $ (374 ) Additions (83 ) (289 ) 109 (289 ) Write-offs 4 38 38 53 Balance, end of period $ (716 ) $ (610 ) $ (716 ) $ (610 ) |
Schedule of Changes in Sales Reserve | The following table summarizes the changes in the sales reserve (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ (78 ) $ (125 ) $ (100 ) $ (45 ) Additions (133 ) — (133 ) (80 ) Write-offs 2 9 24 9 Balance, end of period $ (209 ) $ (116 ) $ (209 ) $ (116 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following (in thousands): Useful life in years As of June 30, 2018 As of December 31, 2017 Furniture and equipment 5 $ 1,903 $ 1,854 System hardware 5 1,714 1,623 Office computers 3 3,124 2,586 Computer and system software 3 1,222 1,193 7,963 7,256 Less accumulated depreciation and amortization (5,241 ) (4,460 ) Property and equipment, net $ 2,722 $ 2,796 |
Capitalized Software Developm28
Capitalized Software Development Costs (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Research And Development [Abstract] | |
Summary of Capitalized Software Development Costs | Capitalized software development costs consisted of the following (in thousands): As of June 30, 2018 Gross carrying amount Amortization period Accumulated amortization Net carrying amount Capitalized software development costs $ 41,141 3 years $ (29,654 ) $ 11,487 Total capitalized software development costs $ 41,141 $ (29,654 ) $ 11,487 As of December 31, 2017 Gross carrying amount Amortization period Accumulated amortization Net carrying amount Capitalized software development costs $ 36,899 3 years $ (26,894 ) $ 10,005 Total capitalized software development costs $ 36,899 $ (26,894 ) $ 10,005 |
Schedule of Expected Amortization of Capitalized Software Development Costs | The expected amortization of capitalized software development costs, as of June 30, 2018, for each of the following years is as follows (in thousands): Amounts 2018 (for the remaining six months) $ 3,047 2019 4,850 2020 2,853 2021 737 $ 11,487 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the Company's financial assets and liabilities measured at fair value on a recurring basis at June 30, 2018 and December 31, 2017 by level within the fair value hierarchy. Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement (in thousands): As of June 30, 2018 Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total Fair (Level 1) (Level 2) (Level 3) Value (in thousands) Assets: Cash equivalents: Money market funds $ 90,704 — — $ 90,704 Short-term investments: U.S. government and agency securities — 3,423 — 3,423 Total financial assets $ 90,704 $ 3,423 $ — $ 94,127 At December 31, 2017 Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total Fair (Level 1) (Level 2) (Level 3) Value (in thousands) Assets: Cash equivalents: Money market funds $ 35,521 — — $ 35,521 U.S. treasury securities — 11,974 11,974 U.S. government and agency securities — 50,352 — 50,352 Short-term investments: U.S. treasury securities — 12,972 — 12,972 U.S. government and agency securities — 29,936 — 29,936 Total financial assets $ 35,521 $ 105,234 $ — $ 140,755 Liabilities: Contingent consideration — — $ 682 $ 682 Total financial liabilities $ — $ — $ 682 $ 682 |
Summary of Changes in Level 3 Financial Instruments | The following table summarizes the changes in Level 3 financial instruments (in thousands). Amount Fair Value at December 31, 2017 $ 682 Foreign currency translation (1 ) Change in fair value (250 ) Payments made during the year (431 ) Balance at June 30, 2018 $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Gross Carrying Amount of Goodwill | The following table displays the changes in the gross carrying amount of goodwill (in thousands): Amount Balance at December 31, 2017 $ 31,328 Foreign currency translation (1,174 ) Increase due to acquisitions 22,894 Balance at June 30, 2018 $ 53,048 |
Schedule of Intangible Assets | Intangible assets consisted of the following (in thousands): As of June 30, 2018 Gross carrying amount Weighted average life (years) Accumulated amortization Net carrying amount Amortizable intangible assets: Developed technology $ 5,739 3.03 $ (2,620 ) $ 3,119 Tradenames 3,231 4.43 (1,057 ) 2,174 Non-compete 240 2.00 (170 ) 70 Customer relationships 23,864 5.00 (5,385 ) 18,479 Total intangible assets $ 33,074 $ (9,232 ) $ 23,842 As of December 31, 2017 Gross carrying amount Weighted average life (years) Accumulated amortization Net carrying amount Amortizable intangible assets: Developed technology $ 4,065 3.04 $ (2,017 ) $ 2,048 Tradenames 2,495 5.18 (701 ) 1,794 Non-compete 240 2.00 (110 ) 130 Customer relationships 8,556 5.00 (3,894 ) 4,662 Total intangible assets $ 15,356 $ (6,722 ) $ 8,634 |
Schedule of Expected Amortization of Intangible Assets | The expected amortization of the intangible assets, as of June 30, 2018, for each of the next five years and thereafter is as follows (in thousands): Amounts 2018 (for the remaining six months) $ 3,760 2019 6,413 2020 5,028 2021 4,541 2022 and thereafter 4,100 $ 23,842 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
UMS | |
Summary of Allocation of Purchase Consideration and Estimated Values of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase consideration and the Company’s preliminary estimate of acquisition date fair values of the assets acquired and the liabilities assumed for the acquisition of UMS made by the Company. The following table also summarizes the aggregate consideration for UMS as of June 30, 2018 (in thousands): UMS Assets acquired Accounts receivable 3,834 Other assets 1,383 Property and equipment 27 Trade names 520 Acquired technology 1,460 Customer relationships 13,800 Goodwill 20,201 Total assets acquired $ 41,225 Liabilities assumed Accounts payable and accrued expenses 3,981 Deferred revenue 5,210 Other liabilities 150 Net assets acquired $ 31,884 Consideration paid Cash paid, net of cash acquired 31,884 Total $ 31,884 |
PlanetRisk, Inc. | |
Summary of Allocation of Purchase Consideration and Estimated Values of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase consideration and the Company’s preliminary estimate of acquisition date fair values of the assets acquired and the liabilities assumed for the acquisition of PlanetRisk made by the Company. The following table also summarizes the aggregate consideration for PlanetRisk as of June 30, 2018 (in thousands): PlanetRisk Assets acquired Accounts receivable 2,862 Property and equipment 488 Acquired technology 160 Customer relationships 1,100 Goodwill 1,205 Total assets acquired $ 5,815 Liabilities assumed Accounts payable and accrued expenses 694 Deferred revenue 2,810 Other liabilities 290 Net assets acquired $ 2,021 Consideration paid Cash paid, net of cash acquired 2,021 Total $ 2,021 |
Respond B.V. | |
Summary of Allocation of Purchase Consideration and Estimated Values of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase consideration and the Company’s preliminary estimate of acquisition date fair values of the assets acquired and the liabilities assumed for the acquisition of Respond made by the Company. The following table also summarizes the aggregate consideration for Respond as of June 30, 2018 (in thousands): Respond Assets acquired Accounts receivable 86 Other assets 87 Property and equipment 19 Trade names 80 Acquired technology 160 Customer relationships 1,100 Goodwill 1,488 Total assets acquired $ 3,020 Liabilities assumed Accounts payable and accrued expenses 208 Deferred revenue 220 Other liabilities 257 Net assets acquired $ 2,335 Consideration paid Cash paid, net of cash acquired 1,952 Note payable 383 Total $ 2,335 |
IDV Solutions LLC | |
Summary of Unaudited Pro Forma Results of Operations | The following unaudited pro forma statement of operations data presents the results of the Company’s acquisition of IDV completed during the year ended December 31, 2017, assuming that the business acquisition was completed during 2017 and had occurred on January 1, 2017. The unaudited pro forma statement of operations data below includes adjustments for additional amortization expense related to acquired intangible assets and depreciation assuming the 2017 acquisitions had occurred on January 1, 2017. Revenue Net income (loss) Results of acquired business included in the six months ended (in thousands): From the acquisition date to June 30, 2017 $ 3,018 $ (1,583 ) For the six months ended June 30, 2017 pro forma $ 3,555 $ (2,337 ) Three Months Ended June 30, Six Months Ended June 30, 2017 2017 Basic and diluted earnings per share pro forma $ (0.03 ) $ (0.08 ) |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Convertible Senior Notes | The Notes consist of the following (in thousands): for the period June 30, 2018 December 31, 2017 Liability component: Principal $ 115,000 $ 115,000 Less: debt discount, net of amortization (23,245 ) (25,519 ) Net carrying amount $ 91,755 $ 89,481 Equity component (a) 22,094 22,094 a) Recorded in the consolidated balance sheet within additional paid-in capital, net of $0.8 million transaction costs in equity as of December 31, 2017. |
Summary of Total Interest Expense Recognized Related To Convertible Senior Notes | The following table sets forth total interest expense recognized related to the Notes (in thousands): As of June 30, 2018 December 31, 2017 1.50% coupon $ 868 $ 192 Amortization of debt discount and transaction costs 2,274 499 $ 3,142 $ 691 |
Summary of Fair Value and Carrying Value of Convertible Senior Notes | As of June 30, 2018 and December 31, 2017, the fair value of the Notes, which was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the Notes in an over-the-counter market (Level 2), and carrying value of debt instruments (carrying value excludes the equity component of the Company’s convertible notes classified in equity) were as follows (in thousands): June 30, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value Convertible senior notes $ 163,615 $ 91,755 $ 126,931 $ 89,481 |
Stock Plans and Stock-Based C33
Stock Plans and Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Assumptions Used in Determining Fair Value of Stock Option Grants | The fair value of stock option grants and ESPP are determined using the Black-Scholes option pricing model with the following weighted average assumptions. In addition, the fair value per share on grant date is presented below: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Employee Stock Options: Fair value per share on grant date $43.86 $24.87 $33.06 - $43.86 $18.05 - $24.87 Expected term (in years) 6.00 6.00 6.00 6.00 - 6.11 Expected volatility 45% 60% 45% - 50% 60% Risk-free interest rate 2.98% 1.98% 2.72% - 2.98% 1.98% - 2.47% Dividend rate 0% 0% 0% 0% Employee Stock Purchase Plan: Expected term (in years) 0.50 0.50 0.50 0.50 Expected volatility 50% - 60% 60% 50% - 60% 60% Risk-free interest rate 1.18% - 1.93% 0.45% 1.18% - 1.93% 0.45% Dividend rate 0% 0% 0% 0% (1) The expected term represents the period that the stock-based compensation awards are expected to be outstanding. Since the Company did not have sufficient historical information to develop reasonable expectations about future exercise behavior, the Company used the simplified method to compute expected term, which reflects the average of the time-to-vesting and the contractual life; (2) The expected volatility of the Company’s common stock on the date of grant is based on the weighted average of the Company’s historical volatility as a public company and the volatilities of publicly traded peer companies that are reasonably comparable to the Company’s own operations; (3) The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term of the options; and (4) The expected dividend yield is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on the Company’s common stock. |
Schedule of Stock Option Activity | A summary of activities under the 2008 Plan and the 2016 Plan is shown as follows for the year ended December 31, 2017 and the six months ended June 30, 2018: Stock options outstanding Weighted average exercise price Outstanding at December 31, 2016 1,884,425 $ 10.02 Granted 1,096,881 22.84 Exercised (497,175 ) 5.77 Forfeited (43,841 ) 15.60 Outstanding at December 31, 2017 2,440,290 16.55 Granted 556,396 34.94 Exercised (521,563 ) 11.43 Forfeited (67,327 ) 15.44 Outstanding at June 30, 2018 2,407,796 $ 21.94 |
Schedule of Stock Options Outstanding and Options Exercisable and Vested | Stock options outstanding, and options exercisable and vested are as follows: Outstanding as of June 30, 2018 Remaining contractual life (years) Weighted average exercise price Exercisable as of June 30, 2018 Remaining contractual life (years) Weighted average exercise price 2,407,796 8.45 $ 21.94 510,494 6.93 $ 12.33 Outstanding as of December 31, 2017 Remaining contractual life (years) Weighted average exercise price Exercisable as of December 31, 2017 Remaining contractual life (years) Weighted average exercise price 2,440,290 8.28 $ 16.55 748,148 7.00 $ 10.39 |
Schedule of Vested and Nonvested Stock Option Activity | Vested and nonvested stock option activity was as follows: Vested Nonvested Options outstanding Weighted average exercise price Options outstanding Weighted average exercise price Outstanding at June 30, 2018 510,094 $ 12.33 1,897,702 $ 24.53 Outstanding at December 31, 2017 748,148 $ 10.39 1,692,142 $ 19.27 |
Summary of Activity in Connection with RSUs, Market-based RSUs and RSUs | A summary of activity in connection with the Company’s RSUs, market-based RSUs and PSUs for the six-month period ended June 30, 2018 is as follows: Number of Shares Outstanding as of December 31, 2017 784,000 Granted 250,077 Vested (444,248 ) Forfeited (11,500 ) Outstanding as of June 30, 2018 578,329 |
Summary of Stock-Based Compensation Expense | The Company recorded the total stock-based compensation expense as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Cost of revenue $ 940 $ 60 $ 1,565 $ 125 Sales and marketing 3,532 282 5,967 559 Research and development 3,205 176 4,515 322 General and administrative 2,345 583 4,669 1,063 Total $ 10,022 $ 1,101 $ 16,716 $ 2,069 |
Basic and Diluted Net Loss Pe34
Basic and Diluted Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Common Equivalent Shares were Excluded From Diluted Net Loss Per Share Calculation because their Inclusion would have been Anti-Dilutive | The following common equivalent shares were excluded from the diluted net loss per share calculation because their inclusion would have been anti-dilutive: As of June 30, 2018 2017 Stock options 2,407,796 1,956,077 Convertible senior notes 3,411,199 — Non-vested performance-based restricted stock units 9,000 — Non-vested market-based restricted stock units 110,829 — Non-vested restricted stock units 458,500 — Total 6,397,324 1,956,077 |
Schedule of Common Stock Reserved | The amount of such shares of the Company’s common stock reserved for these purposes at June 30, 2018 is as follows: Number of Shares Stock options issued and outstanding 2,407,796 Additional shares available for grant under equity plans 1,913,623 Total 4,321,419 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) - Accounting Standards Update 2014-09 | 6 Months Ended |
Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | |
Impact of Adoption of New Accounting Standard on Financial Statements | The cumulative effect of the changes made to the Company’s consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard was as follows (in thousands): Balance at December 31, 2017 Adjustments Due to ASC 606 Balance at January 1, 2018 BALANCE SHEET ASSETS Accounts receivable, net $ 31,699 $ 100 $ 31,799 Deferred Cost 2,429 2,132 4,551 Deferred Cost (non-current) — 6,965 6,965 LIABILITIES AND STOCKHOLDERS’ EQUITY Other current liabilities $ 808 $ 100 $ 908 Deferred revenue 73,072 — 73,072 Accumulated deficit (109,252 ) 9,097 (100,155 ) The impact of the adoption of the new revenue standard on the Company’s consolidated balance sheet and consolidated statement of operations was as follows (in thousands): June 30, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) BALANCE SHEET ASSETS Accounts receivable, net $ 33,064 $ 32,855 $ 209 LIABILITIES AND STOCKHOLDERS’ EQUITY Deferred revenue (short and long term) 82,463 82,463 — Other current liabilities 791 582 209 Accumulated deficit (129,415 ) (138,303 ) 8,888 For the Three Months Ended June 30, 2018 As Reported Activity Without Adoption of ASC 606 Effect of Change Higher/(Lower) STATEMENT OF OPERATIONS Revenue $ 35,822 $ 35,822 $ — Net loss (16,918 ) (17,143 ) 225 For the Six Months Ended June 30, 2018 As Reported Activity Without Adoption of ASC 606 Effect of Change Higher/(Lower) STATEMENT OF OPERATIONS Revenue $ 66,341 $ 66,341 $ — Net loss (29,260 ) (29,469 ) 209 |
Summary of Disaggregates Revenue | The following table disaggregates the Company’s revenue by geography which provides information as to the major source of revenue (in thousands). For the Six Months Ended June 30, 2018 Primary Geographic Markets Total United States $ 59,891 International 6,450 Total $ 66,341 The following table presents the Company’s revenues disaggregated by revenue source (in thousands, unaudited). Three Months Ended Six Months Ended June 30, June 30, 2018 2017 (1) 2018 2017 (1) Subscription services $ 33,804 $ 23,937 $ 62,329 $ 46,011 Professional services 2,018 1,084 4,012 1,854 Total revenues $ 35,822 $ 25,021 $ 66,341 $ 47,865 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments Under Noncancelable Operating Leases | As of June 30, 2018, future minimum lease payments under non-cancelable operating leases are as follows (in thousands): Amounts 2018 (for the remaining six months) $ 1,832 2019 3,152 2020 2,720 2021 2,644 2022 and thereafter 2,886 Total minimum lease payments $ 13,234 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)Customer | Jun. 30, 2017Customer | Jun. 30, 2018USD ($)Customer | Jun. 30, 2017Customer | Dec. 31, 2017USD ($) | |
Short-term investments | $ 3,400,000 | $ 3,400,000 | $ 42,900,000 | ||
Subscription contracts | The Company’s subscription contracts are generally two years or longer in length, billed annually in advance, and non-cancelable. | ||||
Incremental and Recoverable Costs | |||||
Deferred cost amortization period | 4 years | ||||
Money Market Funds and U.S. Government Securities | |||||
Cash and cash equivalents fair value disclosure | $ 90,700,000 | $ 90,700,000 | |||
Customer Concentration Risk | Revenue | |||||
Number of customers above 10% threshold | Customer | 0 | 0 | 0 | 0 | |
Customer Concentration Risk | Accounts Receivable | |||||
Number of customers above 10% threshold | Customer | 0 | 0 | 0 | 0 | |
Maximum | |||||
Cash and cash equivalent, FDIC insured amount | $ 250,000 | $ 250,000 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable Net (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts Receivable Net [Abstract] | ||
Accounts receivable | $ 33,780 | $ 32,662 |
Allowance for doubtful accounts | (716) | (963) |
Net accounts receivable | $ 33,064 | $ 31,699 |
Accounts Receivable, Net - Addi
Accounts Receivable, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounts Receivable Net [Abstract] | ||||
Bad debt expense | $ 0.1 | $ 0.3 | $ (0.1) | $ 0.4 |
Accounts Receivable, Net - Sc40
Accounts Receivable, Net - Schedule of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounts Receivable Net [Abstract] | ||||
Balance, beginning of period | $ (637) | $ (359) | $ (863) | $ (374) |
Additions | (83) | (289) | 109 | (289) |
Write-offs | 4 | 38 | 38 | 53 |
Balance, end of period | $ (716) | $ (610) | $ (716) | $ (610) |
Accounts Receivable, Net - Sc41
Accounts Receivable, Net - Schedule of Changes in Sales Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounts Receivable Net [Abstract] | ||||
Balance, beginning of period | $ (78) | $ (125) | $ (100) | $ (45) |
Additions | (133) | (133) | (80) | |
Write-offs | 2 | 9 | 24 | 9 |
Balance, end of period | $ (209) | $ (116) | $ (209) | $ (116) |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 7,963 | $ 7,256 |
Less accumulated depreciation and amortization | (5,241) | (4,460) |
Property and equipment, net | 2,722 | 2,796 |
Furniture and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 1,903 | 1,854 |
Property and equipment, useful life in years | 5 years | |
Systems Hardware | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 1,714 | 1,623 |
Property and equipment, useful life in years | 5 years | |
Office Computers | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 3,124 | 2,586 |
Property and equipment, useful life in years | 3 years | |
Computer and System Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 1,222 | $ 1,193 |
Property and equipment, useful life in years | 3 years |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 0.5 | $ 0.4 | $ 0.9 | $ 1.1 |
Capitalized Software Developm44
Capitalized Software Development Costs - Summary of Capitalized Software Development Costs (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Capitalized Computer Software Net [Line Items] | ||
Gross carrying amount | $ 41,141 | $ 36,899 |
Accumulated amortization | (29,654) | (26,894) |
Net carrying amount | 11,487 | 10,005 |
Capitalized software development costs [Member] | ||
Capitalized Computer Software Net [Line Items] | ||
Gross carrying amount | $ 41,141 | $ 36,899 |
Amortization period | 3 years | 3 years |
Accumulated amortization | $ (29,654) | $ (26,894) |
Net carrying amount | $ 11,487 | $ 10,005 |
Capitalized Software Developm45
Capitalized Software Development Costs - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Capitalized Computer Software Net [Abstract] | ||||
Capitalized software development costs | $ 4.2 | $ 3.1 | ||
Capitalized software development costs, amortization expense | $ 1.4 | $ 1.1 | $ 2.8 | $ 2.6 |
Capitalized Software Developm46
Capitalized Software Development Costs - Schedule of Expected Amortization of Capitalized Software Development Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Capitalized Computer Software Net [Abstract] | ||
2018 (for the remaining six months) | $ 3,047 | |
2,019 | 4,850 | |
2,020 | 2,853 | |
2,021 | 737 | |
Net carrying amount | $ 11,487 | $ 10,005 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value of assets transferred from level 1 to level 2 | $ 0 | |
Fair value of assets transferred from level 2 to level 1 | 0 | |
Fair value of convertible senior notes | 163,600,000 | $ 126,900,000 |
Carrying value of convertible senior notes | 91,755,000 | 89,481,000 |
Fair Value Measurements, Nonrecurring | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Asset impairment charges | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | $ 94,127 | $ 140,755 |
Contingent consideration | 682 | |
Total financial liabilities | 682 | |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 90,704 | 35,521 |
U.S. Government and Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50,352 | |
Short-term investments | 3,423 | 29,936 |
U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 11,974 | |
Short-term investments | 12,972 | |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | 90,704 | 35,521 |
Quoted Prices in Active Markets (Level 1) | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 90,704 | 35,521 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | 3,423 | 105,234 |
Significant Other Observable Inputs (Level 2) | U.S. Government and Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50,352 | |
Short-term investments | $ 3,423 | 29,936 |
Significant Other Observable Inputs (Level 2) | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 11,974 | |
Short-term investments | 12,972 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Contingent consideration | 682 | |
Total financial liabilities | $ 682 |
Fair Value Measurements - Sum49
Fair Value Measurements - Summary of Changes in Level 3 Financial Instruments (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Fair Value Disclosures [Abstract] | |
Beginning balance, fair value | $ 682 |
Foreign currency translation | (1) |
Change in fair value | (250) |
Payments made during the year | $ (431) |
Goodwill and Intangible Asset50
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 53,048,000 | $ 53,048,000 | $ 31,328,000 | ||
Impairment of goodwill | 0 | $ 0 | |||
Amortization expense for intangible assets | $ 1,800,000 | $ 900,000 | $ 2,700,000 | $ 1,500,000 |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets - Schedule of Changes in Gross Carrying Amount of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill, beginning balance | $ 31,328 |
Foreign currency translation | (1,174) |
Increase due to acquisitions | 22,894 |
Goodwill, ending balance | $ 53,048 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 33,074 | $ 15,356 |
Accumulated amortization | (9,232) | (6,722) |
Net carrying amount | 23,842 | 8,634 |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 5,739 | 4,065 |
Accumulated amortization | (2,620) | (2,017) |
Net carrying amount | $ 3,119 | $ 2,048 |
Developed Technology | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average life (years) | 3 years 10 days | 3 years 15 days |
Tradenames | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 3,231 | $ 2,495 |
Accumulated amortization | (1,057) | (701) |
Net carrying amount | $ 2,174 | $ 1,794 |
Tradenames | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average life (years) | 4 years 5 months 4 days | 5 years 2 months 5 days |
Non-compete | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 240 | $ 240 |
Accumulated amortization | (170) | (110) |
Net carrying amount | $ 70 | $ 130 |
Non-compete | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average life (years) | 2 years | 2 years |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 23,864 | $ 8,556 |
Accumulated amortization | (5,385) | (3,894) |
Net carrying amount | $ 18,479 | $ 4,662 |
Customer Relationships | Weighted Average | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted average life (years) | 5 years | 5 years |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets - Schedule of Expected Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2018 (for the remaining six months) | $ 3,760 | |
2,019 | 6,413 | |
2,020 | 5,028 | |
2,021 | 4,541 | |
2022 and thereafter | 4,100 | |
Net carrying amount | $ 23,842 | $ 8,634 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | May 18, 2018 | May 01, 2018 | Apr. 03, 2018 | Jan. 27, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||||
Purchase price of acquisition, cash | $ 35,857 | $ 21,529 | ||||||
Goodwill | $ 53,048 | $ 53,048 | $ 31,328 | |||||
UMS | ||||||||
Business Acquisition [Line Items] | ||||||||
Date of acquisition of business | Apr. 3, 2018 | |||||||
Purchase price of acquisition, cash | $ 31,900 | |||||||
Weighted average useful life of identified acquired intangible assets | 4 years 8 months 4 days | |||||||
Goodwill | $ 20,200 | 20,201 | $ 20,201 | |||||
Business acquisition transaction costs | 100 | 400 | ||||||
Total purchase price | $ 31,884 | |||||||
UMS | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful life | 1 year | |||||||
UMS | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful life | 5 years | |||||||
UMS | Acquired Technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average useful life of identified acquired intangible assets | 3 years | |||||||
UMS | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average useful life of identified acquired intangible assets | 5 years | |||||||
UMS | Trade Names | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average useful life of identified acquired intangible assets | 1 year | |||||||
PlanetRisk, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Date of acquisition of business | May 1, 2018 | |||||||
Purchase price of acquisition, cash | $ 2,000 | |||||||
Weighted average useful life of identified acquired intangible assets | 4 years 9 months | |||||||
Goodwill | $ 1,200 | 1,205 | $ 1,205 | |||||
Business acquisition transaction costs | 100 | 100 | ||||||
Total purchase price | $ 2,021 | |||||||
PlanetRisk, Inc. | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful life | 3 years | |||||||
PlanetRisk, Inc. | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful life | 5 years | |||||||
PlanetRisk, Inc. | Acquired Technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average useful life of identified acquired intangible assets | 3 years | |||||||
PlanetRisk, Inc. | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average useful life of identified acquired intangible assets | 5 years | |||||||
Respond B.V. | ||||||||
Business Acquisition [Line Items] | ||||||||
Date of acquisition of business | May 18, 2018 | |||||||
Purchase price of acquisition, cash | $ 2,000 | |||||||
Weighted average useful life of identified acquired intangible assets | 4 years 7 months 17 days | |||||||
Goodwill | 1,500 | 1,488 | $ 1,488 | |||||
Business acquisition transaction costs | $ 100 | 100 | ||||||
Note payable | 400 | 383 | ||||||
Total purchase price | $ 2,600 | $ 2,335 | ||||||
Respond B.V. | Minimum | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful life | 1 year | |||||||
Respond B.V. | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful life | 5 years | |||||||
Respond B.V. | Acquired Technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average useful life of identified acquired intangible assets | 3 years | |||||||
Respond B.V. | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average useful life of identified acquired intangible assets | 5 years | |||||||
Respond B.V. | Trade Names | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average useful life of identified acquired intangible assets | 1 year | |||||||
IDV Solutions LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Date of acquisition of business | Jan. 27, 2017 | |||||||
Purchase price of acquisition, cash | $ 21,200 | |||||||
Goodwill | $ 21,200 |
Acquisitions - Summary of Alloc
Acquisitions - Summary of Allocation of Purchase Consideration and Estimated Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | May 18, 2018 | Jun. 30, 2018 | May 01, 2018 | Apr. 03, 2018 | Dec. 31, 2017 |
Assets acquired | |||||
Goodwill | $ 53,048 | $ 31,328 | |||
UMS | |||||
Assets acquired | |||||
Accounts receivable | 3,834 | ||||
Other assets | 1,383 | ||||
Property and equipment | 27 | ||||
Goodwill | 20,201 | $ 20,200 | |||
Total assets acquired | 41,225 | ||||
Liabilities assumed | |||||
Accounts payable and accrued expenses | 3,981 | ||||
Deferred revenue | 5,210 | ||||
Other liabilities | 150 | ||||
Net assets acquired | 31,884 | ||||
Consideration paid | |||||
Cash paid, net of cash acquired | 31,884 | ||||
Total | 31,884 | ||||
UMS | Trade Names | |||||
Assets acquired | |||||
Intangible assets other than goodwill | 520 | ||||
UMS | Acquired Technology | |||||
Assets acquired | |||||
Intangible assets other than goodwill | 1,460 | ||||
UMS | Customer Relationships | |||||
Assets acquired | |||||
Intangible assets other than goodwill | 13,800 | ||||
PlanetRisk, Inc. | |||||
Assets acquired | |||||
Accounts receivable | 2,862 | ||||
Property and equipment | 488 | ||||
Goodwill | 1,205 | $ 1,200 | |||
Total assets acquired | 5,815 | ||||
Liabilities assumed | |||||
Accounts payable and accrued expenses | 694 | ||||
Deferred revenue | 2,810 | ||||
Other liabilities | 290 | ||||
Net assets acquired | 2,021 | ||||
Consideration paid | |||||
Cash paid, net of cash acquired | 2,021 | ||||
Total | 2,021 | ||||
PlanetRisk, Inc. | Acquired Technology | |||||
Assets acquired | |||||
Intangible assets other than goodwill | 160 | ||||
PlanetRisk, Inc. | Customer Relationships | |||||
Assets acquired | |||||
Intangible assets other than goodwill | 1,100 | ||||
Respond B.V. | |||||
Assets acquired | |||||
Accounts receivable | 86 | ||||
Other assets | 87 | ||||
Property and equipment | 19 | ||||
Goodwill | $ 1,500 | 1,488 | |||
Total assets acquired | 3,020 | ||||
Liabilities assumed | |||||
Accounts payable and accrued expenses | 208 | ||||
Deferred revenue | 220 | ||||
Other liabilities | 257 | ||||
Net assets acquired | 2,335 | ||||
Consideration paid | |||||
Cash paid, net of cash acquired | 1,952 | ||||
Note payable | 400 | 383 | |||
Total | $ 2,600 | 2,335 | |||
Respond B.V. | Trade Names | |||||
Assets acquired | |||||
Intangible assets other than goodwill | 80 | ||||
Respond B.V. | Acquired Technology | |||||
Assets acquired | |||||
Intangible assets other than goodwill | 160 | ||||
Respond B.V. | Customer Relationships | |||||
Assets acquired | |||||
Intangible assets other than goodwill | $ 1,100 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Results of Operations (Details) - IDV Solutions LLC - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||
Revenue from the acquisition date | $ 3,018 | |
Net income (loss) from the acquisition date | (1,583) | |
Revenue, pro forma | 3,555 | |
Net income (loss), pro forma | $ (2,337) | |
Basic and diluted earnings per share pro forma | $ (0.03) | $ (0.08) |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Details) - Convertible Senior Notes | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Nov. 30, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($)d$ / shares | Dec. 31, 2017USD ($) | Jun. 29, 2018$ / shares | |
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 115,000,000 | $ 115,000,000 | $ 115,000,000 | $ 115,000,000 | |
Debt instrument, interest rate | 1.50% | ||||
Debt instrument, maturity date | Nov. 1, 2022 | ||||
Debt instrument, interest rate terms | Interest is payable semiannually in arrears on May 1 and November 1 of each year, commencing on May 1, 2018. | ||||
Interest payment commencing date | May 1, 2018 | ||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 29.6626 | ||||
Principal amount per note used in conversion rate | $ 1,000 | ||||
Conversion price per share | $ / shares | $ 33.71 | ||||
Proceeds from issuance of convertible note | $ 3,400,000 | ||||
Description of convertible notes at option of holders | Prior to the close of business on the business day immediately preceding May 1, 2022, the Notes will be convertible at the option of holders during certain periods, only upon satisfaction of certain conditions set forth below. On or after May 1, 2022, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes at the conversion rate at any time regardless of whether the conditions set forth below have been met. | ||||
Number of trading days | d | 30 | ||||
Implied interest rate | 6.93% | ||||
Debt instrument, fair value | $ 92,100,000 | ||||
Difference between aggregate principal amount and estimated fair value of liability component recoded in additional paid-in capital | 22,900,000 | ||||
Transaction costs attributable to liability component | 3,200,000 | ||||
Transaction costs attributable to equity component | $ 800,000 | ||||
Initial strike price of capped call options | $ / shares | $ 33.71 | ||||
Capped call options, cap price | $ / shares | $ 47.20 | ||||
Cost of purchased capped call options | $ 12,900,000 | $ 12,900,000 | |||
Share price | $ / shares | $ 47.42 | ||||
Scenario One | |||||
Debt Instrument [Line Items] | |||||
Number of trading days | d | 20 | ||||
Number of consecutive trading days | d | 30 | ||||
Percentage of last reported sale price to conversion price on each applicable trading day | 130.00% | ||||
Scenario Two | |||||
Debt Instrument [Line Items] | |||||
Number of consecutive trading days | d | 5 | ||||
Percentage of last reported sale price to conversion price on each applicable trading day | 98.00% | ||||
Notes measurement period | 5 days |
Convertible Senior Notes - Sche
Convertible Senior Notes - Schedule of Components of Convertible Senior Notes (Details) - Convertible Senior Notes - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Nov. 30, 2017 |
Liability component: | |||
Principal | $ 115,000 | $ 115,000 | $ 115,000 |
Less: debt discount, net of amortization | (23,245) | (25,519) | |
Net carrying amount | 91,755 | 89,481 | |
Equity component (a) | $ 22,094 | $ 22,094 |
Convertible Senior Notes - Sc59
Convertible Senior Notes - Schedule of Components of Convertible Senior Notes (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Debt Disclosure [Abstract] | |
Transaction costs in equity | $ 0.8 |
Convertible Senior Notes - Summ
Convertible Senior Notes - Summary of Total Interest Expense Recognized Related To Convertible Senior Notes (Details) - Convertible Senior Notes - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Amortization of debt discount and transaction costs | $ 2,274 | $ 499 |
Total interest expense | 3,142 | 691 |
1.50% Coupon | ||
Debt Instrument [Line Items] | ||
1.50% coupon | $ 868 | $ 192 |
Convertible Senior Notes - Su61
Convertible Senior Notes - Summary of Total Interest Expense Recognized Related To Convertible Senior Notes (Parenthetical) (Details) - Convertible Senior Notes | Jun. 30, 2018 | Dec. 31, 2017 | Nov. 30, 2017 |
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 1.50% | ||
1.50% Coupon | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 1.50% | 1.50% |
Convertible Senior Notes - Su62
Convertible Senior Notes - Summary of Fair Value and Carrying Value of Convertible Senior Notes (Details) - Convertible Senior Notes - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | $ 163,615 | $ 126,931 |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Convertible senior notes | $ 91,755 | $ 89,481 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, voting rights | Holders of common stock are entitled to one vote per share | |
Common stock, shares issued | 29,259,367 | 28,330,460 |
Common stock, shares outstanding | 29,259,367 | 28,330,460 |
Stock Plans and Stock-Based C64
Stock Plans and Stock-Based Compensation - Additional Information (Details) - shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Sep. 15, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserved for issuance | 4,321,419 | ||
Stock option granted during period | 556,396 | 1,096,881 | |
2016 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserved for issuance | 3,893,118 | ||
Automatic increase percentage | 3.00% | ||
2016 Equity Incentive Plan | Tranche One | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserved for issuance | 2,000,000 | ||
2008 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options vesting period | 4 years | ||
Stock options expiration period | 10 years | ||
Stock option granted during period | 0 | ||
2008 Equity Incentive Plan | Tranche Two | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserved for issuance | 42,934 | ||
2008 Equity Incentive Plan | Tranche Three | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares reserved for issuance | 1,850,184 |
Stock Plans and Stock-Based C65
Stock Plans and Stock-Based Compensation - 2016 Employee Stock Purchase Plan - Additional Information (Details) - USD ($) $ in Thousands | Sep. 15, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares reserved for issuance | 4,321,419 | 4,321,419 | |||
Stock-based compensation expense | $ 10,022 | $ 1,101 | $ 16,716 | $ 2,069 | |
2016 Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares reserved for issuance | 500,000 | ||||
Purchase price as percentage of fair market value of common stock | 85.00% | ||||
Shares purchased under the plan | 44,193 | 83,790 | |||
Stock-based compensation expense | $ 200 | $ 200 | $ 400 | $ 300 | |
2016 Employee Stock Purchase Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Increase in number of shares reserved and available for issuance | 200,000 | ||||
2016 Employee Stock Purchase Plan | Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Increase in number of shares reserved and available for issuance, percentage | 1.00% | ||||
2016 Employee Stock Purchase Plan | Common Stock | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Purchase price, discount percentage | 15.00% |
Stock Plans and Stock-Based C66
Stock Plans and Stock-Based Compensation - Stock Options - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 10,022 | $ 1,101 | $ 16,716 | $ 2,069 |
Intrinsic value of options exercised | 16,100 | |||
Intrinsic value of all outstanding options | 61,300 | 61,300 | ||
Total unrecognized compensation cost | 19,900 | 19,900 | ||
Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,100 | $ 1,100 | $ 3,900 | $ 2,100 |
Weighted-average amortization period | 3 years |
Stock Plans and Stock-Based C67
Stock Plans and Stock-Based Compensation - Schedule of Assumptions Used in Determining Fair Value of Stock Option Grants (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Dividend rate | 0.00% | |||
2016 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 months | 6 months | 6 months | 6 months |
Expected volatility | 60.00% | 60.00% | ||
Expected volatility, maximum | 60.00% | 60.00% | ||
Expected volatility, minimum | 50.00% | 50.00% | ||
Risk-free interest rate | 0.45% | 0.45% | ||
Risk-free interest rate, maximum | 1.93% | 1.93% | ||
Risk-free interest rate, minimum | 1.18% | 1.18% | ||
Dividend rate | 0.00% | 0.00% | 0.00% | 0.00% |
Employee Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Fair value per share on grant date | $ 43.86 | $ 24.87 | ||
Expected term (in years) | 6 years | 6 years | 6 years | |
Expected volatility | 45.00% | 60.00% | 60.00% | |
Expected volatility, maximum | 50.00% | |||
Expected volatility, minimum | 45.00% | |||
Risk-free interest rate | 2.98% | 1.98% | ||
Risk-free interest rate, maximum | 2.98% | 2.47% | ||
Risk-free interest rate, minimum | 2.72% | 1.98% | ||
Dividend rate | 0.00% | 0.00% | 0.00% | 0.00% |
Employee Stock Options | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Fair value per share on grant date | $ 33.06 | $ 18.05 | ||
Expected term (in years) | 6 years | |||
Employee Stock Options | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Fair value per share on grant date | $ 43.86 | $ 24.87 | ||
Expected term (in years) | 6 years 1 month 9 days |
Stock Plans and Stock-Based C68
Stock Plans and Stock-Based Compensation - Schedule of Assumptions Used in Determining Fair Value of Stock Option Grants (Parenthetical) (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Dividend rate | 0.00% |
Stock Plans and Stock-Based C69
Stock Plans and Stock-Based Compensation - Schedule of Stock Option Activity (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Stock options outstanding, Beginning Balance | 2,440,290 | 1,884,425 |
Stock options outstanding, Granted | 556,396 | 1,096,881 |
Stock options outstanding, Exercised | (521,563) | (497,175) |
Stock options outstanding, Forfeited | (67,327) | (43,841) |
Stock options outstanding, Ending Balance | 2,407,796 | 2,440,290 |
Weighted average exercise price, Beginning Balance | $ 16.55 | $ 10.02 |
Weighted average exercise price, Granted | 34.94 | 22.84 |
Weighted average exercise price, Exercised | 11.43 | 5.77 |
Weighted average exercise price, Forfeited | 15.44 | 15.60 |
Weighted average exercise price, Ending Balance | $ 21.94 | $ 16.55 |
Stock Plans and Stock-Based C70
Stock Plans and Stock-Based Compensation - Schedule of Stock Options Outstanding and Options Exercisable and Vested (Details) - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Stock options, outstanding | 2,407,796 | 2,440,290 | 1,884,425 |
Stock options, remaining contractual life (years) | 8 years 5 months 12 days | 8 years 3 months 10 days | |
Stock options, weighted average exercise price | $ 21.94 | $ 16.55 | $ 10.02 |
Stock options, exercisable | 510,494 | 748,148 | |
Stock options exercisable, remaining contractual life (years) | 6 years 11 months 4 days | 7 years | |
Stock options exercisable, weighted average exercise price | $ 12.33 | $ 10.39 |
Stock Plans and Stock-Based C71
Stock Plans and Stock-Based Compensation - Schedule of Vested and Nonvested Stock Option Activity (Details) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options outstanding, Vested | 510,094 | 748,148 |
Weighted average exercise price, Vested | $ 12.33 | $ 10.39 |
Options outstanding, Nonvested | 1,897,702 | 1,692,142 |
Weighted average exercise price, Nonvested | $ 24.53 | $ 19.27 |
Stock Plans and Stock-Based C72
Stock Plans and Stock-Based Compensation - Restricted Stock Units - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 10,022 | $ 1,101 | $ 16,716 | $ 2,069 |
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation, number of stock unit grants in period | 466,000 | |||
Stock-based compensation expense | $ 1,100 | $ 0 | $ 2,000 | $ 0 |
Number of stock units vested | 0 | 0 | ||
Unrecognized compensation expense | $ 8,900 | $ 8,900 | ||
Weighted-average amortization period | 2 years 2 months 8 days |
Stock Plans and Stock-Based C73
Stock Plans and Stock-Based Compensation - Performance-Based Restricted Stock Units - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 10,022,000 | $ 1,101,000 | $ 16,716,000 | $ 2,069,000 | |
Performance-Based Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation, number of stock unit grants in period | 9,000 | ||||
Share price | $ 43.86 | $ 43.86 | $ 43.86 | ||
Stock-based compensation expense | $ 100,000 | $ 0 | $ 100,000 | $ 0 | |
Unrecognized compensation expense | $ 400,000 | $ 400,000 | $ 400,000 | ||
Weighted-average amortization period | 3 years 3 months | ||||
Performance-Based Restricted Stock Units | Tranche One | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation, compounded annual growth measurement period | 2 years | ||||
Share-based compensation, vesting stock percentage | 50.00% | ||||
Performance-Based Restricted Stock Units | Tranche Two | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation, compounded annual growth measurement period | 3 years | ||||
Performance-Based Restricted Stock Units | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation, thresholds percentage of revenue growth | 20.00% | ||||
Performance-Based Restricted Stock Units | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation, thresholds percentage of revenue growth | 40.00% |
Stock Plans and Stock-Based C74
Stock Plans and Stock-Based Compensation - Market-Based Restricted Stock Units - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 10,022,000 | $ 1,101,000 | $ 16,716,000 | $ 2,069,000 |
Dividend rate | 0.00% | |||
Market-Based Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation, number of stock unit grants in period | 559,017 | |||
Share Based compensation threshold consecutive trading days | 30 days | |||
Stock-based compensation expense | 6,700,000 | $ 0 | $ 10,300,000 | $ 0 |
Dividend rate | 0.00% | |||
Expected term (in years) | 10 years | |||
Unrecognized compensation expense | $ 100,000 | $ 100,000 | ||
Weighted-average amortization period | 7 months 6 days | |||
Number of stock units vested | 444,248 | |||
Market-Based Restricted Stock Units | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation, vesting stock price trigger | $ 35 | |||
Share-based compensation, share price on the date of issuance | $ 23.16 | $ 23.16 | ||
Risk-free interest rate | 2.26% | |||
Expected volatility | 50.00% | |||
Market-Based Restricted Stock Units | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation, vesting stock price trigger | $ 65 | |||
Share-based compensation, share price on the date of issuance | $ 51.99 | $ 51.99 | ||
Risk-free interest rate | 2.85% | |||
Expected volatility | 60.00% |
Stock Plans and Stock-Based C75
Stock Plans and Stock-Based Compensation - Summary of Activity in Connection with RSUs, Market-based RSUs and RSUs (Details) - Restricted Stock Units, Market-based RSUs and Performance-based RSUs | 6 Months Ended |
Jun. 30, 2018shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Outstanding, Beginning Balance | 784,000 |
Number of Shares, Granted | 250,077 |
Number of Shares, Vested | (444,248) |
Number of Shares, Forfeited | (11,500) |
Number of Shares, Outstanding, Ending Balance | 578,329 |
Stock Plans and Stock-Based C76
Stock Plans and Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 10,022 | $ 1,101 | $ 16,716 | $ 2,069 |
Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 940 | 60 | 1,565 | 125 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 3,532 | 282 | 5,967 | 559 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 3,205 | 176 | 4,515 | 322 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 2,345 | $ 583 | $ 4,669 | $ 1,063 |
Basic and Diluted Net Loss Pe77
Basic and Diluted Net Loss Per Share - Schedule of Common Equivalent Shares were Excluded From Diluted Net Loss Per Share Calculation because their Inclusion would have been Anti-Dilutive (Details) - shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from diluted net loss per share | 6,397,324 | 1,956,077 |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from diluted net loss per share | 2,407,796 | 1,956,077 |
Convertible Senior Notes | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from diluted net loss per share | 3,411,199 | |
Non-vested Performance-Based Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from diluted net loss per share | 9,000 | |
Non-vested Market-Based Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from diluted net loss per share | 110,829 | |
Non-vested Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from diluted net loss per share | 458,500 |
Basic and Diluted Net Loss Pe78
Basic and Diluted Net Loss Per Share - Summary of Common Stock Reserved (Details) | Jun. 30, 2018shares |
Class Of Stock [Line Items] | |
Amount of common stock reserved | 4,321,419 |
Stock Options | |
Class Of Stock [Line Items] | |
Amount of common stock reserved | 2,407,796 |
Additional Shares Available for Grant Under Equity Plan | |
Class Of Stock [Line Items] | |
Amount of common stock reserved | 1,913,623 |
Basic and Diluted Net Loss pe79
Basic and Diluted Net Loss per Share - Additional Information (Details) - Convertible Senior Notes - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Payments to enter capped call options | $ 12.9 | $ 12.9 | |
Convertible debt Instrument, Issuance date, month and year | 2017-11 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
(Provision for) benefit from income taxes | $ (189) | $ 13 | $ (285) | $ (14) |
Effective income tax rate | 1.13% | (0.38%) | 0.98% | 0.15% |
Unrecognized tax benefits | $ 400 | $ 400 | ||
Unrecognized tax benefits that would favorably impact effective tax rate | $ 400 | $ 400 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Impact of Adoption of New Revenue Standard on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 33,064 | $ 31,699 | |
Deferred Cost | 2,429 | ||
Other current liabilities | 791 | 808 | |
Deferred revenue (short and long term) | 82,463 | 73,072 | |
Accumulated deficit | (129,415) | $ (109,252) | |
Accounting Standards Update 2014-09 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 31,799 | ||
Deferred Cost | 4,551 | ||
Deferred Cost (non-current) | 6,965 | ||
Other current liabilities | 908 | ||
Deferred revenue (short and long term) | 73,072 | ||
Accumulated deficit | (100,155) | ||
Accounting Standards Update 2014-09 | Adjustments Due to ASC 606 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 209 | 100 | |
Deferred Cost | 2,132 | ||
Deferred Cost (non-current) | 6,965 | ||
Other current liabilities | 209 | 100 | |
Accumulated deficit | 8,888 | $ 9,097 | |
Accounting Standards Update 2014-09 | Balances Without Adoption of ASC 606 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 32,855 | ||
Other current liabilities | 582 | ||
Deferred revenue (short and long term) | 82,463 | ||
Accumulated deficit | $ (138,303) |
Revenue Recognition - Summary83
Revenue Recognition - Summary of Impact of Adoption on Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
STATEMENT OF OPERATIONS | ||||
Revenue | $ 35,822 | $ 25,021 | $ 66,341 | $ 47,865 |
Net loss | (16,918) | $ (3,437) | (29,260) | $ (9,639) |
Accounting Standards Update 2014-09 | Balances Without Adoption of ASC 606 | ||||
STATEMENT OF OPERATIONS | ||||
Revenue | 35,822 | 66,341 | ||
Net loss | (17,143) | (29,469) | ||
Accounting Standards Update 2014-09 | Effect of Change Higher/(Lower) | ||||
STATEMENT OF OPERATIONS | ||||
Net loss | $ 225 | $ 209 |
Revenue Recognition - Summary84
Revenue Recognition - Summary of Disaggregates Our Revenue by Geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 35,822 | $ 25,021 | $ 66,341 | $ 47,865 |
United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 59,891 | |||
International | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 6,450 |
Revenue Recognition - Summary85
Revenue Recognition - Summary of Revenues Disaggregated by Revenue Source (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 35,822 | $ 25,021 | $ 66,341 | $ 47,865 |
Subscription Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 33,804 | 23,937 | 62,329 | 46,011 |
Professional Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 2,018 | $ 1,084 | $ 4,012 | $ 1,854 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Disaggregation Of Revenue [Line Items] | ||
Unbilled receivables related to service | $ 1,200,000 | $ 1,200,000 |
Deferred sales commissions | 13,200,000 | 13,200,000 |
Amortization expense for the deferred costs | 1,300,000 | 2,600,000 |
impairment loss related to costs capitalized | 0 | 0 |
Subscription services revenue recognized from unearned revenue | 33,000,000 | 60,700,000 |
Subscription Services | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue remaining performance obligation | $ 76,400,000 | $ 76,400,000 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations - Additional Information (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-07-01 $ in Millions | Jun. 30, 2018USD ($) |
Disaggregation Of Revenue [Line Items] | |
Revenue remaining performance obligation | $ 73.4 |
Remaining performance obligation recognition period | 12 months |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Future minimum lease payments | |
2018 (for the remaining six months) | $ 1,832 |
2,019 | 3,152 |
2,020 | 2,720 |
2,021 | 2,644 |
2022 and thereafter | 2,886 |
Total minimum lease payments | $ 13,234 |
Commitments and Contingencies89
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Loss Contingencies [Line Items] | |||||
Rent expense | $ 900,000 | $ 500,000 | $ 1,600,000 | $ 1,000,000 | |
Revolving Credit Facility | secured Debt | |||||
Loss Contingencies [Line Items] | |||||
Line of credit drawn amount | $ 0 | 0 | 0 | ||
Revolving Credit Facility | secured Debt | Western Alliance Bank | |||||
Loss Contingencies [Line Items] | |||||
Line of credit facility | $ 15,000,000 | $ 15,000,000 | $ 15,000,000 | ||
Line of credit facility, expiration date | Jun. 30, 2018 | ||||
Line of credit facility, extended expiration date | Sep. 28, 2018 | ||||
Revolving Credit Facility | secured Debt | Western Alliance Bank | Prime Rate | |||||
Loss Contingencies [Line Items] | |||||
Line of credit, interest rate | 0.75% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - shares | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Subsequent Event [Line Items] | |||
Forfeit options | 67,327 | 43,841 | |
Share option stock grant | 556,396 | 1,096,881 | |
President | |||
Subsequent Event [Line Items] | |||
Share option stock grant | 500,000 | ||
President | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Forfeit options | 375,000 | ||
Restricted Stock Units | President | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Share-based compensation, number of stock unit grants in period | 12,500 | ||
Vesting period | 3 years | ||
Performance-based Stock Units | President | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Share-based compensation, number of stock unit grants in period | 12,500 | ||
Performance-based Stock Units | President | Subsequent Event | Tranche One | |||
Subsequent Event [Line Items] | |||
Compound annual growth rate, measurement period | 2 years | ||
Performance-based Stock Units | President | Subsequent Event | Tranche Two | |||
Subsequent Event [Line Items] | |||
Compound annual growth rate, measurement period | 3 years |