Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NVRO | ||
Entity Registrant Name | NEVRO CORP. | ||
Entity Central Index Key | 0001444380 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 31,820,724 | ||
Entity Public Float | $ 1,923 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-36715 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 56-2568057 | ||
Entity Address, Address Line One | 1800 Bridge Parkway | ||
Entity Address, City or Town | Redwood City | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94065 | ||
City Area Code | 650 | ||
Local Phone Number | 251-0005 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference [Text Block] | Portions of the registrant’s Proxy Statement for the registrant’s 2020 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K to the extent stated herein. The Proxy Statement will be filed within 120 days of the registrant’s fiscal year ended December 31, 2019. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 65,373 | $ 51,266 |
Short-term investments | 172,429 | 213,281 |
Accounts receivable, net of allowance for doubtful accounts of $797 and $824 at December 31, 2019 and 2018, respectively | 82,833 | 80,656 |
Inventories | 91,579 | 92,035 |
Prepaid expenses and other current assets | 9,838 | 6,621 |
Total current assets | 422,052 | 443,859 |
Property and equipment, net | 11,766 | 12,801 |
Operating lease assets | 21,533 | |
Other assets | 13,338 | 5,850 |
Restricted cash | 956 | 606 |
Total assets | 469,645 | 463,116 |
Current liabilities | ||
Accounts payable | 16,048 | 23,505 |
Accrued liabilities | 50,966 | 38,790 |
Other current liabilities | 3,597 | 119 |
Total current liabilities | 70,611 | 62,414 |
Long-term debt | 160,300 | 152,394 |
Long-term operating lease liabilities | 20,445 | |
Other long-term liabilities | 1,937 | 2,825 |
Total liabilities | 253,293 | 217,633 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity | ||
Preferred stock, $0.001 par value, 10,000,000 shares authorized at December 31, 2019 and 2018, respectively; zero shares issued and outstanding at December 31, 2019 and 2018, respectively | ||
Common stock, $0.001 par value, 290,000,000 shares authorized at December 31, 2019 and 2018, respectively; 31,544,361 and 30,263,536 shares issued and outstanding at December 31, 2019 and 2018, respectively | 32 | 30 |
Additional paid-in capital | 626,401 | 552,612 |
Accumulated other comprehensive loss | (313) | (1,077) |
Accumulated deficit | (409,768) | (306,082) |
Total stockholders’ equity | 216,352 | 245,483 |
Total liabilities and stockholders’ equity | $ 469,645 | $ 463,116 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 797 | $ 824 |
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 | 290,000,000 | 290,000,000 |
Common stock, shares issued | 31,544,361 | 30,263,536 |
Common stock, shares outstanding | 31,544,361 | 30,263,536 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 390,255 | $ 387,289 | $ 326,674 |
Cost of revenue | 121,905 | 113,965 | 98,981 |
Gross profit | 268,350 | 273,324 | 227,693 |
Operating expenses | |||
Research and development | 59,017 | 48,459 | 37,560 |
Sales, general and administrative | 305,812 | 266,608 | 219,712 |
Total operating expenses | 364,829 | 315,067 | 257,272 |
Loss from operations | (96,479) | (41,743) | (29,579) |
Interest income | 6,020 | 4,871 | 3,164 |
Interest expense | (10,931) | (10,401) | (9,902) |
Other income (expense), net | (697) | (1,164) | 1,067 |
Loss before income taxes | (102,087) | (48,437) | (35,250) |
Provision for income taxes | 1,599 | 768 | 1,408 |
Net loss | (103,686) | (49,205) | (36,658) |
Other comprehensive loss: | |||
Changes in foreign currency translation adjustment | 449 | (37) | (360) |
Changes in unrealized gains (losses) on short-term investments, net | 315 | 202 | (204) |
Net change in other comprehensive loss | 764 | 165 | (564) |
Comprehensive loss | $ (102,922) | $ (49,040) | $ (37,222) |
Net loss per share, basic and diluted | $ (3.37) | $ (1.64) | $ (1.25) |
Weighted average number of common shares used to compute basic and diluted net loss per share | 30,803,872 | 30,051,961 | 29,424,054 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balances at Dec. 31, 2016 | $ 249,034 | $ 29 | $ 470,869 | $ (221,186) | $ (678) |
Beginning balances, shares at Dec. 31, 2016 | 28,886,862 | ||||
Exercise of common stock options | $ 7,493 | $ 1 | 7,492 | ||
Exercise of common stock options, shares | 707,410 | 707,410 | |||
Issuance of common stock upon release of restricted stock units | 83,121 | ||||
Shares withheld for tax obligations | $ (991) | (991) | |||
Shares withheld for tax obligations, shares | (13,094) | ||||
Issuance of common stock under employee stock purchase plan | 4,697 | 4,697 | |||
Issuance of common stock under employee stock purchase plan, shares | 73,262 | ||||
Vesting of early exercised stock options | 7 | 7 | |||
Stock based compensation | 26,154 | 26,154 | |||
Net loss | (36,658) | (36,658) | |||
Other comprehensive loss | (564) | (564) | |||
Ending balances at Dec. 31, 2017 | 249,172 | $ 30 | 508,228 | (257,844) | (1,242) |
Ending balances, shares at Dec. 31, 2017 | 29,737,561 | ||||
Adoption of accounting standard | 967 | 967 | |||
Exercise of common stock options | $ 3,976 | 3,976 | |||
Exercise of common stock options, shares | 247,768 | 247,768 | |||
Issuance of common stock upon release of restricted stock units | 196,274 | ||||
Shares withheld for tax obligations | $ (1,742) | (1,742) | |||
Shares withheld for tax obligations, shares | (28,107) | ||||
Issuance of common stock under employee stock purchase plan | 5,520 | 5,520 | |||
Issuance of common stock under employee stock purchase plan, shares | 110,040 | ||||
Stock based compensation | 36,630 | 36,630 | |||
Net loss | (49,205) | (49,205) | |||
Other comprehensive loss | 165 | 165 | |||
Ending balances at Dec. 31, 2018 | 245,483 | $ 30 | 552,612 | (306,082) | (1,077) |
Ending balances, shares at Dec. 31, 2018 | 30,263,536 | ||||
Exercise of common stock options | $ 28,607 | $ 1 | 28,606 | ||
Exercise of common stock options, shares | 828,722 | 828,722 | |||
Issuance of common stock upon release of restricted stock units | 325,839 | ||||
Shares withheld for tax obligations | $ (3,057) | (3,057) | |||
Shares withheld for tax obligations, shares | (38,696) | ||||
Issuance of common stock under employee stock purchase plan | 6,545 | $ 1 | 6,544 | ||
Issuance of common stock under employee stock purchase plan, shares | 164,960 | ||||
Stock based compensation | 41,696 | 41,696 | |||
Net loss | (103,686) | (103,686) | |||
Other comprehensive loss | 764 | 764 | |||
Ending balances at Dec. 31, 2019 | $ 216,352 | $ 32 | $ 626,401 | $ (409,768) | $ (313) |
Ending balances, shares at Dec. 31, 2019 | 31,544,361 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net loss | $ (103,686) | $ (49,205) | $ (36,658) |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Depreciation and amortization | 4,563 | 3,887 | 2,507 |
Amortization of operating lease assets | 3,237 | ||
Stock-based compensation expense | 41,697 | 36,637 | 26,143 |
Accretion of discount on short-term investments | (2,037) | (1,257) | (116) |
Provision for (recovery of) doubtful accounts | (27) | (501) | 293 |
Write-down of inventory | 1,456 | 2,005 | 3,984 |
Non-cash interest expense | 7,912 | 7,382 | 6,884 |
Unrealized gains (losses) on foreign currency transactions | (450) | 1,188 | (799) |
Changes in operating assets and liabilities | |||
Accounts receivable | (2,153) | (12,214) | (13,899) |
Inventories | (938) | 3,846 | (16,297) |
Prepaid expenses and other current assets | (3,222) | (767) | (501) |
Other assets | 514 | (2,601) | (892) |
Accounts payable | (7,472) | 5,170 | 2,162 |
Accrued liabilities | 13,205 | (242) | 12,269 |
Other long-term liabilities | (2,824) | 964 | 647 |
Net cash used in operating activities | (50,225) | (5,708) | (14,273) |
Cash flows from investing activities | |||
Purchases of short-term investments | (211,006) | (213,723) | (287,938) |
Proceeds from sales of short-term investments | 5,993 | ||
Proceeds from maturity of short-term investments | 254,308 | 228,373 | 290,341 |
Investment in private company | (7,500) | ||
Purchases of property and equipment | (3,472) | (8,217) | (4,327) |
Net cash provided by investing activities | 32,330 | 6,433 | 4,069 |
Cash flows from financing activities | |||
Minimum tax withholding paid on behalf of employees for net share settlement | (3,057) | (1,742) | (991) |
Proceeds from issuance of common stock to employees | 35,150 | 9,496 | 12,190 |
Net cash provided by financing activities | 32,093 | 7,754 | 11,199 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 259 | (258) | 444 |
Net increase in cash, cash equivalents and restricted cash | 14,457 | 8,221 | 1,439 |
Cash, cash equivalents and restricted cash | |||
Cash, cash equivalents and restricted cash at beginning of year | 51,872 | 43,651 | 42,212 |
Cash, cash equivalents and restricted cash at end of year | 66,329 | 51,872 | 43,651 |
Supplemental disclosures of cash flow information | |||
Cash paid for income taxes | 1,338 | 1,847 | 687 |
Cash paid for interest | 3,019 | 3,019 | 3,019 |
Significant non-cash transactions | |||
Purchases of property and equipment in accounts payable | $ 285 | $ 245 | 592 |
Vesting of early-exercised stock options | $ 7 |
Formation and Business of the C
Formation and Business of the Company | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Formation and Business of the Company | 1. Formation and Business of the Company The Company was incorporated in Minnesota on March 10, 2006 to manufacture and market innovative active implantable medical devices for the treatment of neurological disorders initially focusing on the treatment of chronic pain. Subsequently, the Company was reincorporated in Delaware on October 4, 2006 and relocated to California. Since inception, the Company has incurred net losses and negative cash flows from operations. During the year ended December 31, 2019, the Company incurred a net loss of $103.7 million and used $50.2 million of cash in operations. At December 31, 2019, the Company had an accumulated deficit of $409.8 million and does not expect to experience positive cash flows from operations in the immediate future. The Company has financed operations to date primarily through private placements of equity securities, borrowings under a debt agreement, the issuance of common stock in its November 2014 initial public offering and its June 2015 underwritten public offering, as well as its June 2016 underwritten public offering of convertible senior notes due in 2021. The Company’s ability to continue to meet its obligations and to achieve its business objectives for the foreseeable future is dependent upon, amongst other things, generating sufficient revenues and its ability to continue to control expenses to meet its obligations as they become due. Failure to increase sales of its products, manage discretionary expenditures or raise additional financing, if required, may adversely impact the Company’s ability to achieve its intended business objectives. Public Offerings In November 2014, the Company completed its initial public offering (IPO) of shares of its common stock and as a result, the following transactions were recorded in the Company’s consolidated financial statements during the fourth quarter of 2014: • the sale of 8,050,000 shares of common stock, including 1,050,000 from the exercise by the underwriters of their overallotment option, at an offering price of $18.00 per share, for net proceeds of $131.6 million, after deducting the underwriters’ discounts, commissions and offering costs paid by us; and • immediately prior to the completion of the IPO, all the outstanding shares of the Company’s redeemable convertible preferred stock and convertible preferred stock were converted into 15,208,048 shares of common stock. In June 2015, the Company completed an underwritten public offering of its common stock, which included shares of its common stock held by certain of its stockholders, and issued 2,470,587 shares of common stock, including 705,882 shares issued pursuant to the exercise in full by the underwriters of their option to purchase additional shares. The Company received cash proceeds of approximately $118.4 million, net of underwriting discounts and commissions and offering costs paid by the Company. In June 2016, the Company issued $150.0 million aggregate principal amount of 1.75% convertible senior notes due 2021 in a registered underwritten public offering and an additional $22.5 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2021 Notes). The interest rates are fixed at 1.75% per annum and are payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2016. The total net proceeds from the debt offering, after deducting transaction costs, were approximately $166.2 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). The consolidated financial statements include the Company’s accounts and those of its four wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. Segments The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis, accompanied only by information about revenue by geographic region, for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level, other than revenue. Accordingly, the Company has determined that it has a single reportable and operating segment structure. The Company and its Chief Executive Officer evaluate performance based primarily on revenue in the geographic locations in which the Company operates. Until 2015, the Company had derived most of its revenue from sales to customers in Australia and Europe. In May 2015, the U.S. Food and Drug Administration (FDA) approved the Company’s premarket approval (PMA) application to market Senza in the United States and the Company launched sales in the United States in 2015. Revenue by geography is based on the billing address of the customer. The United States is the only country that accounts for 10% or more of the revenue during the periods presented: Years Ended December 31, 2019 2018 2017 United States 84 % 83 % 81 % Long-lived assets and operating income outside the United States are not material; therefore, disclosures have been limited to revenue. Foreign Currency Translation The Company’s consolidated financial statements are prepared in U.S. dollars (USD). Its foreign subsidiaries use their local currency as their functional currency and maintain their records in the local currency. Accordingly, the assets and liabilities of these subsidiaries are translated into USD using the current exchange rates in effect at the balance sheet date and equity accounts are translated into USD using historical rates. Revenues and expenses are translated using the monthly average exchange rates during the period when the transaction occurs. The resulting foreign currency translation adjustments from this process are recorded in accumulated other comprehensive income (loss) in the consolidated balance sheets. Unrealized foreign exchange gains and losses from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of the reporting entity are recorded in other income (expense), net. The Company recorded net unrealized foreign currency transaction gains of $1.0 million during the year ended December 31, 2019, losses of $0.6 million during the year ended December 31, 2018 and gains of $0.8 million during the year ended December 31, 2017. Additionally, realized gains and losses resulting from transactions denominated in currencies other than the local currency are recorded in other income (expense), net. The Company recorded realized foreign currency transaction losses of $1.6 million during the year ended December 31, 2019, losses of $0.4 million during the year ended December 31, 2018 and gains of $0.5 million during the year ended December 31, 2017. To the extent that the Company’s international operations grow, the effect of fluctuations in currency rates will become greater, and the Company will continue to reassess its approach to managing this risk. In addition, currency fluctuations or a weakening U.S. dollar can increase the costs of the Company’s international expansion. To date, the Company has not entered into any foreign currency hedging contracts. Based on its current international structure, the Company does not plan on engaging in hedging activities in the near future. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant accounting estimates and management judgments reflected in the consolidated financial statements include items such as allowances for doubtful accounts; warranty obligations; stock-based compensation; depreciation and amortization lives; inventory valuation; valuation of investments and accounting for income taxes . Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by management. Actual results may differ from those estimates under different assumptions or conditions. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and investments. The majority of the Company’s cash is held by one financial institution in the United States in excess of federally insured limits. The Company maintained investments in money market funds that were not federally insured during the years ended December 31, 2019 and 2018, and held cash in foreign banks of approximately $12.1 million and $4.1 million at December 31, 2019 and 2018, respectively, that was not federally insured. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company’s convertible note hedge transactions, entered into in connection with the 2021 Notes, subject the Company to credit risk such that the counterparties may be unable to fulfill the terms of the transactions. The associated risk is mitigated by limiting the counterparties to major financial institutions. In the international markets in which the Company participates, the Company uses both a direct sales force and distributors to sell its products, while in the United States the Company utilizes a direct sales force. The Company performs ongoing credit evaluations of some of its direct customers and distributors, does not require collateral, and maintains allowances for potential credit losses on customer accounts when deemed necessary. There were no customers that accounted for 10% 10% The Company is subject to risks common to medical device companies including, but not limited to, new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, product liability, uncertainty of market acceptance of products and the need to obtain additional financing. The Company is dependent on third party manufacturers and suppliers, in some cases sole- or single-source suppliers. There can be no assurance that the Company’s products or services will continue to be accepted in the marketplace, nor can there be any assurance that any future products or services can be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products or services will be successfully marketed, if at all. The Company expects to incur operating losses in the near term and may need to obtain additional financing. There can be no assurance that such financing will be available or will be at terms acceptable by the Company. Fair Value of Financial Instruments Carrying amounts of certain of the Company’s financial instruments, including cash equivalents, short term investments, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents include money market funds in the amount of $52.4 million and $15.6 million as of December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, the Company’s cash equivalents were held in institutions in the United States and include deposits in a money market fund which were unrestricted as to withdrawal or use. Restricted Cash Restricted cash as of December 31, 2019 and 2018 includes certificates of deposit of $0.6 million representing collateral for the Company’s Redwood City, CA building lease pursuant to an agreement dated March 5, 2015. Restricted cash as of December 31, 2019 additionally includes certificates of deposit of $0.4 million collateralizing payment of charges related to the Company’s credit cards. Investment Securities The Company classifies its investment securities as available-for-sale. The Company classifies these investment securities as short-term or long-term based on the nature of the investment, its maturity date and its availability for use in current operations. Those investments with original maturities greater than three months at the date of purchase and remaining maturities of less than 12 months are considered short-term investments. Those investments with remaining maturities greater than 12 months are also classified as short-term investments as management considers them to be available for current operations if needed. The Company’s investment securities are recorded at fair value based on the fair value hierarchy. Money market funds are classified within Level 1 of the fair value hierarchy, and commercial paper and corporate notes are classified within Level 2 of the fair value hierarchy. Unrealized gains and losses, deemed temporary in nature, are reported as a separate component of accumulated other comprehensive income (loss). A decline in the fair value of any security below cost that is deemed other than temporary results in a charge to earnings and the corresponding establishment of a new cost basis for the security. Premiums (discounts) are amortized (accreted) over the life of the related security as an adjustment to yield using the straight-line interest method. Dividend and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the standard cost method which approximates the first-in, first-out basis. Net realizable value is determined as the prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company regularly reviews inventory quantities compared to forecasted sales to record a provision for excess and obsolete inventory when appropriate. Inventory write-downs are recorded for excess and obsolete inventory. The Company estimates forecasted sales by considering product acceptance in the marketplace, customer demand, historical sales, product obsolescence and technological innovations. The Company’s policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected lower of cost or net realizable value, and inventory in excess of expected requirements. The estimate of excess quantities is judgmental and primarily dependent on the Company’s estimates of future demand for a particular product. If the estimate of future demand is inaccurate based on actual sales, the Company may increase the write-down for excess inventory for that component and record a charge to inventory impairment in the accompanying consolidated statements of operations and comprehensive loss. The Company periodically evaluates the carrying value of inventory on hand for potential excess amount over demand using the same lower of cost or net realizable value approach as that has been used to value the inventory. The Company also periodically evaluates inventory quantities in consideration of actual loss experience. As a result of these evaluations, for the year ended December 31, 2019, the Company recognized total write-downs of $1.6 million for its inventories. For the years ended December 31, 2018 and 2017, the Company recognized total write-downs of $2.0 million and $4.0 million for its inventories. The Company’s estimation of the future demand for a particular component of the Company’s products may vary and may result in changes in estimates in any particular period. Shipping and Handling Costs Shipping and handling costs are expensed as incurred and are included in cost of revenue. Revenue Recognition The Company has revenue arrangements that generally consist of a single performance obligation, although, in some instances, revenue arrangements may consist of two performance obligations. The Company recognizes revenue at the point in time when it transfers control of promised goods to its customers. Revenue is measured as the amount of consideration it expects to receive in exchange for transferring goods. See Note 3 for further discussion on Revenue Recognition. Allowance for Doubtful Accounts The Company makes estimates of the collectability of accounts receivable. In doing so, the Company analyzes historical bad debt trends, customer credit worthiness, current economic trends and changes in customer payment patterns when evaluating the adequacy of the allowance for doubtful accounts. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment, other than leasehold improvements, is computed using the straight-line method over the assets’ estimated useful lives of three to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the life of the lease. Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group might not be recoverable. When such an event occurs, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related asset group’s carrying value. If an asset is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending on the nature of the asset. There were no impairment charges, or changes in estimated useful lives, recorded through December 31, 2019. Income Taxes The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or income tax returns. In estimating future tax consequences, expected future events other than enactments or changes in the tax law or rates are considered. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. To date, taxes paid have been predominantly due to income taxes in foreign and state jurisdictions in which we conduct business. The Company provides for tax contingencies whenever it is deemed probable that a tax asset has been impaired or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, relative tax law, and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies. The Company records uncertain tax positions on the basis of a two-step process whereby (1) a determination is made as to whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold the Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest and penalties related to income taxes as a component of income tax expense. A nominal amount of interest and penalties have been recognized in the statements of operations and comprehensive loss in 2019. No interest or penalties related to income taxes have been recognized in the statements of operations and comprehensive loss in 201 8 and 201 7 . On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the 2017 Tax Act) was enacted into law. The recorded impact for the effects of the 2017 Tax Act is based on the Company’s current knowledge, assumptions and interpretations of available guidance. The Company elected to account for Global Intangible Low-Tax Income (GILTI) as a current period expense when incurred. The Company will continue to monitor the issuance of additional regulatory or accounting guidance and record any necessary adjustments in the period for which additional guidance is issued. Other Comprehensive Income (Loss) Other comprehensive income (loss) represents all changes in stockholders’ equity except those resulting from distributions to stockholders. The Company’s unrealized gains on short-term available-for-sale investment securities and foreign currency translation adjustments represent the components of other comprehensive income (loss) that are excluded from the reported net loss and are presented in the consolidated statements of operations and comprehensive loss. Research and Development Research and development expenses, including new product development, regulatory compliance, and clinical research, are charged to operations as incurred in the consolidated statements of operations and comprehensive loss. Such costs include personnel-related costs, including stock-based compensation, supplies, services, depreciation, allocated facilities and information services, clinical trial and related clinical manufacturing expenses, fees paid to investigative sites, and other indirect costs. Stock-Based Compensation The Company accounts for stock-based compensation arrangements with employees in accordance with Accounting Standards Codification (ASC) 718, Compensation—Stock Compensation. In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting The Company’s determination of the fair value of stock options, other than performance-based awards, on the date of grant utilizes the Black-Scholes option-pricing model, and is impacted by its common stock price as well as changes in assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected term that options will remain outstanding, the expected common stock price volatility over the term of the option awards, risk-free interest rates and expected dividends. The fair value of stock options is recognized over the period during which an optionee is required to provide services in exchange for the option award, known as the requisite service period (usually the vesting period), on a straight-line basis. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the fair value of the rights to purchase shares by employees under the Employee Stock Purchase Plan using the Black-Scholes option pricing formula. The Employee Stock Purchase Plan provides for consecutive six-month Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustments as the underlying equity instruments vest. The fair value of options granted to consultants is expensed when vested. The non-employee stock-based compensation expense was not material for all periods presented. The Company accounts for stock-based compensation for the restricted stock units at their fair value, based on the closing market price of the Company’s common stock on the grant date. These costs are recognized on a straight-line basis over the requisite service period, which is generally the vesting term of four years. The Company also issues stock options and restricted stock units with vesting based upon achievement of specific operational performance criteria. The fair value for these performance-based awards is recognized over the period during which the goals are to be achieved. Stock-based compensation expense recognized at fair value includes the impact of estimated probability that the goals would be achieved, which is assessed prior to the requisite service period for the specific goals. The Company additionally grants restricted stock units with vesting based on its stock price performance compared to a specified target composite index over a certain period. The fair value of these grants is determined by using the Monte Carlo simulation model, which is based on a discounted cash flow approach, and requires inputs such as expected volatility of our stock price, expected volatility of the targeted composite index, correlation between the changes in our stock price and the target composite index, risk-free interest rate and expected dividends. The expected volatility of our stock and the target composite index is based on the historical data. Correlation is based on the historical relationship between our stock price and the target composite index. The risk-free interest rate is based upon the treasury yield consistent with the vesting term of the grant. The expected dividend yield is zero. Stock-based compensation for these restricted stock units is recognized over the specified performance measurement period. Upon adoption of ASU 2016-09 as described above, excess tax benefits or deficiencies from share-based award activity are reflected in the consolidated statements of operations as a component of the provision for income taxes, whereas they were previously recognized as additional paid-in capital. Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, restricted stock units and common stock options are considered to be potentially dilutive securities. Because the Company has reported a net loss in all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held. The FASB has also issued several updates to ASU 2016-13. These ASU’s are effective for public entities for annual periods beginning after December 15, 2019, with early adoption permitted. The Company has not determined the potential effects of the guidance on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. ASU 2019-12 also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates , and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for public entities for annual periods beginning after December 15, 2020, with early adoption permitted. The Company has not determined the potential effects of the guidance on its consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. Revenue Adoption of ASC 606 On January 1, 2018, the Company adopted the new accounting standard ASC 606, Revenue from Contracts with Customers Revenue Recognition Under ASC 606, assuming all other revenue recognition criteria have been met, the Company will recognize revenue earlier for arrangements where the Company has satisfied its performance obligations but has not issued invoices. These amounts are recorded as unbilled receivables, which are included in accounts receivable on the consolidated balance sheet, as the Company has an unconditional right to payment at the end of the applicable period. The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of accumulated deficit. The cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2018 for the adoption of ASC 606 were as follows (in thousands): Balance at Adjustments Due Balance at December 31, 2017 to ASC 606 January 1, 2018 Balance Sheet: Accounts receivable, net $ 67,287 $ 1,447 $ 68,734 Prepaid expenses and other current assets 6,463 (476 ) 5,987 Accumulated other comprehensive loss (1,242 ) 4 (1,238 ) Accumulated deficit (257,844 ) 967 (256,877 ) In accordance with ASC 606, the disclosure of the impact of adoption on the Consolidated Balance Sheet was as follows (in thousands): December 31, 2018 Balance Balance Without As Reported ASC 606 Adoption Effect of Change Balance Sheet: Accounts receivable, net $ 80,656 $ 78,142 $ 2,514 Inventories 92,035 92,126 (91 ) Prepaid expenses and other current assets 6,621 7,514 (893 ) In accordance with ASC 606, the disclosure of the impact of adoption on the Consolidated Statements of Operations was as follows (in thousands): Year Ended December 31, 2018 Balance Without Balance As Reported ASC 606 Adoption Effect of Change Statement of Operations: Revenue $ 387,289 $ 386,212 $ 1,077 Cost of revenue 113,965 113,441 524 Revenue Recognition Revenue is recognized when obligations under the terms of a contract with customers are satisfied, which occurs with the transfer of control of the Company’s goods to its customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the goods. For a majority of sales, where the Company’s sales representative delivers its product at the point of implantation at hospitals or medical facilities, the Company recognizes revenue upon completion of the procedure and authorization, which represents the point in time when control transfers to the customers. For the remaining sales, which are sent from the Company’s distribution centers directly to hospitals and medical facilities, as well as distributor sales, where product is ordered in advance of an implantation, the transfer of control occurs at the time of shipment of the product. These customers are obligated to pay within specified terms regardless of when or if they ever sell or use the products. The Company does not offer rights of return or price protection. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The expected costs associated with warranty obligations continue to be recognized as expense when the products are sold (see Note 7). The Company periodically provides incentive offers, in the form of rebates, to customers based on their aggregate levels of purchases. Product revenue is recorded net of such incentive offers. The following table presents revenue by geography, based on the billing address of the customer (in thousands): Years Ended December 31, 2019 2018 2017 United States $ 326,012 $ 321,781 $ 263,462 International 64,243 65,508 63,212 Total revenue $ 390,255 $ 387,289 $ 326,674 Practical Expedients and Exemptions The Company recognizes revenue upon the transfer of control of the product and there are no material future performance obligations beyond such transfer. As a result, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not capitalize incremental costs when the amortization period of the asset is less than a year. |
Lease Accounting
Lease Accounting | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Accounting | 4. Lease Accounting Adoption of ASC 842 On January 1, 2019, the Company adopted the new accounting standard ASC 842, Leases The Company adopted the new lease standard using the transition method that allowed entities to initially apply ASC 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption (the optional transition method). The Company elected the package of transitional practical expedients, such that, for leases existing prior to the adoption of ASC 842, the Company will not need to reassess whether contracts are leases, will retain historical lease classification and historical initial direct costs classification. The Company also elected the hindsight practical expedient to determine the lease term for existing leases. Operating lease assets and operating lease liabilities are recognized based on the present value of minimum lease payments over the remaining lease term. The Company uses its incremental borrowing rate based on information available when determining the lease liabilities. Lease cost is recognized on a straight-line basis over the expected lease term. Adoption of the new lease standard resulted in the recording of operating lease assets of $24.8 million and operating lease liabilities of $26.2 million. The impact of the changes made to the consolidated balance sheet as of January 1, 2019 from the adoption of ASC 842 were as follows (in thousands): Balance at Adjustments Due Balance at December 31, 2018 to ASC 842 January 1, 2019 Balance Sheet: Operating lease assets $ — $ 24,771 $ 24,771 Other current liabilities 119 2,389 2,508 Long-term operating lease liabilities — 23,805 23,805 Other long-term liabilities 2,825 (1,423 ) 1,402 The Company has operating leases for office space, warehouse, research and development facilities and equipment. Leases with terms of 12 months or less are not recorded on the balance sheet, as the related lease expenses are recognized on a straight-line basis over the lease term. The Company accounts for lease components (such as fixed payments) separately from nonlease components (such as common area expenses). As of December 31, 2019, the Company has leases with remaining terms of less than 3 year to 6 years, some of which may include options to extend the lease term for up to 5 years. The weighted average lease terms and discounts rates are as follows: December 31, 2019 Operating Lease Term and Discount Rate Weighted-average remaining lease term 5.31 years Weighted-average discount rate 7.0% As of December 31, 2019, t he maturity of lease liabilities are as follows (in thousands): Operating Leases 2020 $ 4,924 2021 5,073 2022 5,258 2023 5,522 2024 5,687 Thereafter 2,399 Total lease payments 28,863 Less: Interest (4,920 ) Present value of lease liabilities $ 23,943 Supplemental lease cost information are as follows (in thousands): Year Ended December 31, 2019 Operating lease cost $ 4,936 Supplemental balance sheet information are as follows (in thousands): December 31, 2019 Operating Leases: Operating lease assets $ 21,533 Other current liabilities $ 3,498 Long term operating lease liabilities 20,445 Total operating lease liabilities $ 23,943 Supplemental cash flow information are as follows (in thousands): Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 3,970 See Note 7 for further details of the Company’s lease commitments. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: • Level 1 — Observable inputs, such as quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash Equivalents and Short Term Investments The Company’s cash equivalents includes investments in money market funds that are classified as Level 1 of the fair value hierarchy. To value its money market funds, the Company values the funds at $1 stable net asset value, which is the quoted price in active markets for identical assets that the Company has the ability to access. The Company’s cash equivalents and short-term investments also includes commercial paper and corporate notes, which have been classified within Level 2 of the fair value hierarchy because of the sufficient observable inputs for revaluation. The Company’s Level 2 investments are valued using third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of any broker/dealer quotes on the same or similar investments, issuer credit spreads, benchmark investments, prepayment/default projections based on historical data and other observable inputs. The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis, by level, within the fair value hierarchy (in thousands): Balance as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds (i) $ 52,359 $ — $ — $ 52,359 Agency bonds (iii) — 17,246 — 17,246 Commercial paper (iii) — 12,449 — 12,449 Corporate notes (iii) — 142,734 — 142,734 Total assets $ 52,359 $ 172,429 $ — $ 224,788 Balance as of December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Money market funds (i) $ 15,572 $ — $ — $ 15,572 Commercial paper (ii) — 119,602 — 119,602 Corporate notes (ii) — 111,532 — 111,532 Total assets $ 15,572 $ 231,134 $ — $ 246,706 (i) Included in cash and cash equivalents on the consolidated balance sheets. (ii) Included in either cash and cash equivalents or short-term investments on the consolidated balance sheets. (iii) Included in short-term investments on the consolidated balance sheets. Convertible Senior Notes As of December 31, 2019, the fair value of the 1.75% convertible senior notes due 2021 was $232.6 million. The fair value was determined on the basis of market prices observable for similar instruments and is considered Level 2 in the fair value hierarchy. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 6. Balance Sheet Components Investments The fair value of the Company’s cash equivalents and short-term investments approximates their respective carrying amounts due to their short-term maturity. The following is a summary of the gross unrealized gains and unrealized losses on the Company’s investment securities (in thousands): December 31, 2019 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Investment Securities Agency bonds $ 17,209 $ 37 $ — $ 17,246 Commercial paper 12,425 24 — 12,449 Corporate notes 142,588 150 (4 ) 142,734 Total securities $ 172,222 $ 211 $ (4 ) $ 172,429 December 31, 2018 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Investment Securities Commercial paper $ 119,692 $ — $ (90 ) $ 119,602 Corporate notes 111,652 — (120 ) 111,532 Total securities $ 231,344 $ — $ (210 ) $ 231,134 Realized gains or losses from the sale of investments and other-than-temporary impairments, if any, on available-for-sale securities are reported in other income (expense), net as incurred. The cost of securities sold was determined based on the specific identification method. The amount of realized gains and realized losses on investments for the periods presented have not been material. The amortized costs and estimated fair values of the Company’s available-for-sale securities by contractual maturities as of December 31, 2019 were as follows (in thousands): Amortized Cost Fair Value Amounts maturing within one year $ 156,783 $ 156,985 Amounts after one year through five years 15,439 15,444 Total investment securities $ 172,222 $ 172,429 Inventories (in thousands) December 31, 2019 2018 Raw materials $ 26,354 $ 37,453 Finished goods 65,225 54,582 Total inventories $ 91,579 $ 92,035 Property and Equipment, Net (in thousands) December 31, 2019 2018 Laboratory equipment $ 5,733 $ 2,874 Computer equipment and software 9,909 8,751 Furniture and fixtures 3,898 3,903 Leasehold improvements 4,226 4,218 Construction in process 1,006 1,811 Total 24,772 21,557 Less: Accumulated depreciation and amortization (13,006 ) (8,756 ) Property and equipment, net $ 11,766 $ 12,801 Depreciation and amortization expense for the years ended December 31, 2019, 2018 and 2017 was $4.6 million, $3.9 million and $2.5 million, respectively. Accrued Liabilities (in thousands) December 31, 2019 2018 Accrued payroll and related expenses $ 36,056 $ 26,792 Accrued professional fees 1,633 1,595 Accrued taxes 2,353 2,506 Accrued clinical and research expenses 2,157 1,105 Accrued interest 243 243 Accrued warranty 1,178 1,236 Accrued other 7,346 5,313 Total accrued liabilities $ 50,966 $ 38,790 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Operating Leases In March 2015, the Company entered into a lease agreement for approximately 50,740 square feet of office space located in Redwood City, California for a period beginning in June 2015 The lease for the Expansion Premises commenced on June 1, 2018. May 2017 In August 2014, the Company entered into a new facility lease for warehouse space beginning on August 21, 2014 through May 31, 2015, under which it was obligated to pay approximately $100,000 in lease payments over the term of the lease. In March 2015, the Company extended the warehouse lease through February 2017 under which it was obligated to pay approximately $0.3 million in lease payments over the remaining term of the lease. In February 2017, the Company entered into a separate non-cancellable facility lease for warehouse space beginning March 1, 2017 through February 28, 2022, under which the Company is obligated to pay approximately $0.4 million in lease payments over the term of the lease. See Note 4 for further discussion on Lease Accounting. Warranty Obligations The Company warrants that its products will operate substantially in conformity with product specifications and provides a limited one- to five-year warranty. Activities related to warranty obligations were as follows (in thousands): December 31, 2019 2018 Beginning Balance $ 1,236 $ 708 Provision for warranty 1,942 2,334 Utilization (2,000 ) (1,806 ) Ending Balance $ 1,178 $ 1,236 Supply Agreements The Company has entered into supply agreements with certain of the Company’s suppliers that required certain minimum annual purchase agreements. As of December 31, 2019, the Company had minimum annual purchase commitments of $6.2 million due in 2020. For the year ended December 31, 2019, the Company recorded a charge of $3.6 million related to the cancellation of firm purchase commitments for inventory related items. The Company also entered into a service agreement in January 2020 for which it is committed to pay $ 2.5 million License Agreements In March 2006, the Company entered into an amended and restated license agreement with the Mayo Foundation for Medical Education and Research (Mayo) and Venturi Group LLC (VGL), which provides the Company access to the certain know how and licensed patents owned by Mayo and VGL for treatment of central, autonomic and peripheral nervous system disorders, including pain, using devices to modulate nerve signaling. The licenses granted are exclusive and the Company has the right to sub-license. The agreement will terminate upon the last to expire patent application, unless terminated earlier. The agreement can be terminated any time after three years from March 2006 by Mayo or VGL. Per terms of the license, the Company is required to pay royalties based on the greater of earned royalty or minimum royalty. The earned royalty will be based on a percentage of net sales of licensed products either by the Company or the sub-licensee. The minimum royalty payment will be based on royalty periods as defined in the agreement. In March 2011, the Company entered into a Phase II License Agreement with Mayo which provides the Company access to the certain know how and licensed patents owned by Mayo. The licenses granted are exclusive and the Company has the right to sub-license. The agreement will terminate upon the last to expire patent application, unless terminated earlier. Per terms of the license, the Company is required to: • Pay a retainer fee of $40,000 per annum starting March 2011 and ending February 2013 • Pay royalties based on the greater of earned royalty or minimum royalty. The earned royalty is based on a percentage of net sales of licensed products either by the Company or the sub-licensee. The minimum annual royalty payment is $200,000. Royalties paid during the years ended December 31, 2019, 2018 and 2017 were $3.2 million, $3.1 million and $2.5 million, respectively. In November 2014, the Company issued Mayo 20,833 shares of common stock owed in connection with the IPO pursuant to the terms of the license, and recorded noncash research and development expense of $0.5 million for the fair value of the shares on the date of issuance. In July 2017, the Company entered into a license agreement for which it is committed to pay $0.3 million over the remaining term of this license agreement, which ends in 2022. Contingent Consideration In February 2019, the Company entered into an agreement with a privately-held company to, among other things, provide the privately-held company financing in the form of a secured convertible note. Through December 31, 2019, the Company has provided financing totaling $8.5 million in the form of two secured convertible notes. The Company has the obligation to provide additional funding of up to $3.0 million in the form of an additional secured convertible note and takes effect only after the Company exercises its option to make a further investment in the privately-held company that is based on certain development targets. The agreement additionally provides the Company with the exclusive right, but not the obligation, to acquire the privately-held company. As of December 31, 2019, the value of the secured convertible notes, measured at amortized cost, is $7.9 million, while the value of certain rights in relation to the agreement, measured at cost and monitored for impairment on an ongoing basis, is $1.0 million. These amounts are reported in Other Assets on the Condensed Consolidated Balance Sheet. The accretion of amortized cost is recorded in Interest Income, while any changes in value from impairment assessment are recorded in Other Income (Expense) in the Consolidated Statements of Operations and Comprehensive Income. The Company concluded that the privately-held company is a variable interest entity; however, the Company is not the primary beneficiary as it does not retain power to direct the activities that most significantly impact its economic performance. Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. There have been no contingent liabilities requiring accrual at December 31, 2019 and 2018. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, including, among other circumstances, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to the Company’s technology. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has director and officer insurance coverage that reduces the Company’s exposure and enables the Company to recover a portion of any future amounts paid. The Company believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with such indemnifications has been recorded to date. Legal Matters On November 28, 2016, the Company filed a lawsuit for patent infringement against Boston Scientific Corporation and Boston Scientific Neuromodulation Corporation (collectively, Boston Scientific). The lawsuit, filed in the U.S. District Court for the Northern District of California (the Court), asserts that Boston Scientific is infringing seven of the Company’s patents covering inventions relating to the Senza system and HF10 therapy. The lawsuit seeks preliminary and permanent injunctive relief against further infringement as well as damages and attorney’s fees. On July 24, 2018, the Court issued an order on claim construction and summary judgment. In the order, the Court ruled that six asserted method claims in three of the Company’s asserted patents were patent eligible and not invalid as indefinite. Specifically, the claims upheld in the ruling were claims 11, 21 and 23 of U.S. Patent No. 8,359,102; claim 18 of U.S. Patent No. 8,792,988; and claims 1 and 5 of U.S. Patent No. 8,768,472. Collectively, these six claims cover methods for delivering SCS therapy at frequencies between 1.5 kHz and 100 kHz. The Court, however, found that Boston Scientific is not currently infringing the six upheld method claims. Specifically, the Court found that Boston Scientific's sale of the Spectra WaveWriter systems for commercial use in the United States does not infringe the upheld method claims because the Spectra WaveWriter systems cannot be programmed to generate signals above 1.2 kHz. With regard to the use of the Spectra WaveWriter and the Precision with MultiWave systems in patients that have completed the ACCELERATE clinical trial, the Court found such use to fall within the safe harbor provision of 35 U.S.C. § 271(e). The Court further held that 35 U.S.C. § 271(f) does not apply to method claims, and therefore the sale of the Precision with MultiWave systems in Europe does not infringe the upheld method claims. The Court also found that the asserted system claims in four of the Company's asserted patents were invalid as indefinite. Specifically, the Court invalidated claims 18, 34, and 55 of U.S. Patent No. 9,327,125; claims 5 and 34 of U.S. Patent No. 9,333,357; claims 7, 12, 35, 37, and 58 of U.S. Patent No. 8,712,533; and claims 1 and 22 of U.S. Patent No. 9,480,842. On July 27, 2018, the parties submitted a joint statement to the Court wherein Boston Scientific asserted to the Court that, with respect to whether any U.S. launch of a high-rate product (such as the Precision with MultiWave and Spectra WaveWriter models used in the ACCELERATE study or any other system that is programmable at any frequency in the range 1.5 to 100 kHz) is imminent, Boston Scientific, as of now, has not decided whether to launch such a product; has not established a timeline for when such a decision might be made, if ever; and has not determined what frequencies would be enabled if it were to decide to launch such a product in the future. Boston Scientific further confirmed its public statements that the ACCELERATE study had been extended into 2019, with an estimated study completion date between April 2019 and November 2019. On the basis of the foregoing, the parties agreed to dismissal on ripeness grounds of Nevro’s declaratory judgment claims without prejudice, each side to bear its own fees and costs as to these claims, and jointly requested that the Court enter such a dismissal. The dismissal was thereafter entered as a court order on July 31, 2018. The Company and Boston Scientific are each appealing portions of the Court’s July 24 th On December 9, 2016, Boston Scientific filed a patent infringement lawsuit alleging the Company’s manufacture, use and sale of the Senza system infringes ten of Boston Scientific’s patents covering spinal cord stimulation technology related to stimulation leads, rechargeable batteries and telemetry. The lawsuit, filed in the U.S. District Court for the District of Delaware, seeks unspecified damages and attorney’s fees, as well as preliminary and permanent injunctive relief against further infringement. During this litigation, Boston Scientific unilaterally dismissed their assertions with regard to two of the ten patents. inter partes inter partes On April 27, 2018, Boston Scientific filed a second patent lawsuit alleging patent infri ngement, theft of trade secrets and tortious interference with contract. The lawsuit, filed in the U.S. District Court for the District of Delaware, seeks unspecified damages and attorney’s fees, as well as preliminary and permanent injunctive relief against further infringement. In relation to this lawsuit, the Company filed petitions for inter partes review at the U.S. Patent and Trademark Office USPTO against seven of the nine patents asserted by Boston Scientific. In January 2020, the PTAB initiated inter partes reviews in all seven of the challenged patents. As of this time, the Company is unable to determine an outcome or potential range of loss. On August 23, 2018, the Oklahoma Police Pension and Retirement System filed a putative securities class action complaint against the Company and certain individual officers alleging violations of Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 of the Exchange Act. The lawsuit, filed in the U.S. District Court for the Northern District of California, seeks unspecified damages and attorneys’ fees based on alleged misleading statements or omissions by the Company and the individual officers regarding the Company’s rights in technology underlying the Senza SCS systems and the termination of the Company’s former Vice President of Worldwide Sales. On February 14, 2019, the Company filed a lawsuit for patent infringement against Stimwave Technologies, Inc. (Stimwave) asserting that Stimwave is infringing the Company’s patents covering inventions related to its HF10 therapy and the Senza system, as well as a claim for false advertising under the Lanham Action Section 43(a), 15 U.S.C. § 1125(a). In relation to this lawsuit, on July 24, 2019, the court granted Nevro's motion for preliminary injunction, and has issued an order barring Stimwave, and all affiliated persons and entities, from infringing patent claims covering frequencies between 3 kHz and 10 kHz by programming Stimwave's SCS systems to deliver its recently introduced high-frequency, paresthesia-free SCS therapy. Per Nevro's request, the court order does not enjoin Stimwave from providing follow-up care and programming for any patients who were already programmed with such high frequency therapy. On July 25, 2019, Stimwave filed a Notice of Appeal to the U.S. Court of Appeals for the Federal Circuit. The Company and Stimwave have submitted their respective appeal briefs and replies to the appellate court, and are awaiting a hearing date. During the appeal, the litigation in the District of Delaware will continue on the merits. As of December 31, 2019, the Company did not record a liability, as an outcome or potential loss range cannot be reasonably determined The Company is and may from time to time continue to be involved in various legal proceedings to defend its intellectual property, including several pending European patent oppositions at the European Patent Office (EPO) initiated by the Company’s competitors Medtronic and Boston Scientific and an entitlement action filed by Boston Scientific in Germany. In addition, the Company is and may from time to time also be involved in various legal proceedings of a character normally incident to the ordinary course of business, such as product liability and professional liability matters, which the Company does not deem to be material to its business and consolidated financial statements at this stage. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 8. Long-term Debt 1.75% Convertible Senior Notes and Convertible Note Hedge and Warrant Transactions In June 2016, the Company issued $150.0 million aggregate principal amount of 1.75% convertible senior notes due in June 2021 in a registered underwritten public offering and an additional $22.5 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2021 Notes). The interest rates are fixed at 1.75% per annum and are payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2016 . The total net proceeds from the debt offering, after deducting initial purchase discounts and debt issuance costs, were approximately $ 166.2 million. Each $1,000 principal amount of the 2021 Notes will initially be convertible into 10.3770 shares of the Company’s common stock, which is equivalent to an initial conversion price of approximately $96.37 per share, subject to adjustment upon the occurrence of specified events. The 2021 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding December 1, 2020, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2016 (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; (2) during the five business day period after any ten consecutive trading day period (the measurement period) in which the trading price (as defined in the indenture to the 2021 Notes) per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after December 1, 2020 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2021 Notes at any time, regardless of the foregoing circumstances. 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 the Company’s common stock, at the Company’s election. If the Company undergoes a fundamental change prior to the maturity date, holders of the notes may require the Company to repurchase for cash all or any portion of their notes at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events occur prior to the applicable maturity date, the Company will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event in certain circumstances. It is the Company’s current intent and policy to settle conversions through combination settlement with a specified dollar amount per $1,000 principal amount of notes of $1,000. During the three months ended December 31, 2019, the conditions allowing holders of the 2021 Notes to convert have not been met. The 2021 Notes are therefore not convertible during the three months ended March 31, 2020 and are classified as long-term debt. Should the sale price condition be met in a future quarter, the 2021 Notes will be convertible at the holders’ option during the immediately following quarter. As of December 31, 2019, the if-converted value of the 2021 Notes did not exceed the principal value of those notes. In accounting for the issuance of the convertible senior notes, the Company separated the 2021 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $32.9 million and was determined by deducting the fair value of the liability component from the par value of the 2021 Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (debt discount) is amortized to interest expense over the term of the 2021 Notes expense at an effective interest rate of 6.29% over the contractual terms of the notes. In accounting for the debt issuance costs of $6.2 million related to the 2021 Notes, the Company allocated the total amount incurred to the liability and equity components of the 2021 Notes based on their relative values. Issuance costs attributable to the liability component were $5.0 million and will be amortized to interest expense using the effective interest method over the contractual terms of the 2021 Notes. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. The net carrying amount of the liability component of the 2021 Notes was as follows (in thousands): December 31, 2019 2018 Principal $ 172,500 $ 172,500 Unamortized discount (10,462 ) (17,305 ) Unamortized issuance cost (1,738 ) (2,801 ) Net carrying amount $ 160,300 $ 152,394 The net carrying amount of the equity component of the 2021 Notes was as follows (in thousands): December 31, 2019 2018 Debt discount related to value of conversion option $ 32,945 $ 32,945 Debt issuance cost (1,179 ) (1,179 ) Net carrying amount $ 31,766 $ 31,766 The following table sets forth the interest expense recognized related to the 2021 Notes (in thousands): Years Ended December 31, 2019 2018 2017 Contractual interest expense $ 3,019 $ 3,019 $ 3,019 Amortization of debt discount 6,843 6,432 6,046 Amortization of debt issuance costs 1,063 943 833 Total interest expense related to the 2021 Notes $ 10,925 $ 10,394 $ 9,898 In connection with the offering of the 2021 Notes, the Company entered into convertible note hedge transactions with certain bank counterparties in which the Company has the option to purchase initially (subject to adjustment for certain specified events) a total of approximately 1.8 million shares of the Company’s common stock at a price of approximately $96.37 per share. The total cost of the convertible note hedge transactions was $45.1 million. In addition, the Company sold warrants to certain bank counterparties whereby the holders of the warrants have the option to purchase initially (subject to adjustment for certain specified events) a total of approximately 1.8 million shares of the Company’s common stock at a price of $127.28 per share. The Company received $33.1 million in cash proceeds from the sale of these warrants. Taken together, the purchase of the convertible note hedges and the sale of warrants are intended to offset any actual dilution from the conversion of these notes and to effectively increase the overall conversion price from $96.37 to $127.28 per share. As these transactions meet certain accounting criteria, the convertible note hedges and warrants are recorded in stockholders’ equity and are not accounted for as derivatives. The net cost of $12.0 million incurred in connection with the convertible note hedge and warrant transactions was recorded as a reduction to additional paid-in capital on the consolidated balance sheet. |
Convertible Preferred Stock
Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Convertible Preferred Stock | 9. Convertible Preferred Stock Prior to its initial public offering, the Company had outstanding 15,208,048 shares of convertible preferred stock. Each share of preferred stock was convertible to one share of common stock. Upon the closing of the Company’s initial public offering on November 11, 2014, all shares of outstanding redeemable convertible preferred stock were automatically converted to 15,208,048 shares of the Company’s common stock. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation Common stock reserved for future issuance as of December 31, 2019 was as follows: December 31, 2019 Outstanding stock options and restricted stock units 2,934,517 Reserved for grants of future stock options and restricted stock units 3,680,784 Reserved for employee stock purchase plan 1,161,645 Total common stock reserved for future issuance 7,776,946 Stock Plans The Company’s Board of Directors (Board) and stockholders previously approved the 2007 Stock Option Plan (the 2007 Plan). In October 2014, the Board adopted the 2014 Equity Incentive Award Plan (the 2014 Plan and, together with the 2007 Plan, the Stock Plans). As of the effective date of the 2014 Plan, the Company suspended the 2007 Plan and no additional awards may be granted under the 2007 Plan. Any shares of common stock covered by awards granted under the 2007 Plan that terminate after the effective date of the 2014 Plan by expiration, forfeiture, cancellation or other means without the issuance of such shares, will be added to the 2014 Plan reserve. Under the 2014 Plan, 1,854,166 shares of common stock were initially reserved for issuance, plus the number of shares remaining available for future awards under the 2007 Plan, as of the pricing of the IPO. The number of shares initially reserved for issuance under the 2014 Plan is subject to increase by (i) the number of shares represented by awards outstanding under the 2007 Plan that are forfeited or lapse unexercised and which following the pricing date are not issued under the 2007 Plan, and (ii) an annual increase on January 1 of each year. Under the 2014 Plan, the Company may grant awards such as incentive stock options, nonstatutory stock options, restricted stock units and stock appreciation rights. Incentive stock options (ISO) may be granted only to Company employees (including directors who are also employees). Nonqualified stock options (NSO) may be granted to Company employees, directors and consultants. Stock Options Options under the 2014 Plan may be granted for periods of up to ten years and at prices no less than 100% of the estimated fair market value of the shares on the date of grant as determined by the Board, provided, however, that the exercise price of an ISO or an NSO granted to a 10% stockholder shall not be less than 110% of the estimated fair market value of the shares on the date of grant. Upon the exercise of options, the Company issues new common stock from its authorized shares. The vesting provisions of individual options vary but are generally over four years, with the exception of performance based stock options. Pursuant to the 2014 Plan, the Company granted performance based stock options to the Company’s former CEO in March 2016. This performance based stock option award is subject to the CEO’s continued service to the Company through each applicable vesting date. If a performance metric is not met within the time limits specified in the award agreements, the shares subject to vesting under the vesting tranche for that performance metric will be cancelled. Upon the former CEO’s resignation from the Company in March 2019, the unvested shares subject to this award as of the separation date have been cancelled. A summary of shares available for grant under the Stock Plans is as follows: Shares Available for Grant Balance at December 31, 2016 2,202,239 Additional shares reserved 1,155,474 Shares forfeited for tax 13,094 Options and restricted stock granted (1,002,063 ) Options and restricted stock cancelled 97,502 Balance at December 31, 2017 2,466,246 Additional shares reserved 1,189,502 Shares forfeited for tax 28,107 Options and restricted stock granted (805,653 ) Options and restricted stock cancelled 102,560 Balance at December 31, 2018 2,980,762 Additional shares reserved 1,210,541 Allowance for PSU for overperformance (277,778 ) Shares forfeited for tax 38,696 Options and restricted stock granted (1,077,178 ) Options and restricted stock cancelled 527,963 Balance at December 31, 2019 3,403,006 A summary of stock option activity under the Stock Plans is as follows: Options Outstanding Weighted Average Number of Weighted Average Remaining Aggregate Options Exercise Price Contractual Term Intrinsic Value (in years) (in thousands) Outstanding at December 31, 2016 2,821,227 $ 29.85 7.4 $ 123,425 Options granted 503,690 $ 74.71 Options exercised (707,410 ) $ 10.59 $ 50,971 Options cancelled (57,535 ) $ 46.83 Outstanding at December 31, 2017 2,559,972 $ 43.62 7.3 $ 71,120 Options granted 236,900 $ 47.96 Options exercised (247,768 ) $ 16.05 $ 15,468 Options cancelled (19,364 ) $ 44.70 Outstanding at December 31, 2018 2,529,740 $ 46.72 6.7 $ 21,866 Options granted 244,075 $ 56.71 Options exercised (828,722 ) $ 34.52 $ 42,695 Options cancelled (298,908 ) $ 66.22 Outstanding at December 31, 2019 1,646,185 $ 50.80 6.3 $ 109,870 Options exercisable as of December 31, 2019 1,117,773 $ 46.70 5.1 $ 79,186 Options vested, exercisable or expected to vest as of December 31, 2019 1,612,455 $ 50.66 6.2 $ 107,839 The aggregate intrinsic value of options exercised is the difference between the estimated fair market value of the Company’s common stock at the date of exercise and the exercise price for in-the-money options. The aggregate intrinsic value of outstanding options is the difference between the closing price as of the date outstanding and the exercise price of the underlying stock options. The weighted-average grant-date fair value of options granted during the years ended December 31, 2019, 2018 and 2017 was $27.91, $23.27 and $32.35 per share, respectively. The total fair value of options vested during the years ended December 31, 2019, 2018 and 2017 was approximately $8.3 million, $14.0 million and $13.3 million, respectively, based on the grant date fair value. The options outstanding and vested under the Stock Plans by exercise price, at December 31, 2019, were as follows: Options Outstanding Options Vested Weighted Average Remaining Number Contractual Term Weighted Average Number Weighted Average Exercise Price Outstanding (in years) Exercise Price Exercisable Exercise Price $1.44 — $18.00 334,087 3.79 $ 10.25 334,087 $ 10.25 $32.51 — $48.44 391,304 7.85 $ 43.43 159,456 $ 42.13 $49.94 — $63.23 365,966 4.45 $ 57.78 352,632 $ 57.73 $63.39 — $76.81 393,930 8.27 $ 70.58 155,991 $ 73.09 $84.30 — $97.52 160,898 7.07 $ 88.62 115,607 $ 89.07 $1.44 — $97.52 1,646,185 6.29 $ 50.80 1,117,773 $ 46.70 Restricted Stock Units In 2015, the Company began granting restricted stock units (RSUs) under the 2014 Plan. Holders of RSUs do not have stockholder rights. Upon the release of RSUs, the Company issues new common stock from its authorized shares. RSUs generally vest four years from the date of grant. Pursuant to the 2014 Plan, the Company granted performance based RSUs to the former CEO in March 2016. The performance based RSUs are subject to the former CEO’s continued service to the Company through each applicable vesting date. If a performance metric is not met within the time limits specified in the RSU agreement, the shares subject to vesting under the vesting tranche for that performance metric will be cancelled. Upon the former CEO’s resignation from the Company in March 2019, the unvested shares subject to this award as of the separation date have been cancelled. In March 2019, the Company granted RSUs to the current CEO, subject to his continued service to the company and based on the total shareholder return of the Company’s common stock price compared to a targeted composite index over a three-year 0 to 3.5 times A summary of RSUs activity under the Stock Plans was as follows: Number of Weighted Average Aggregate Restricted Grant Date Intrinsic Value Stock Units Fair Value (in thousands) Outstanding at December 31, 2016 345,555 $ 70.39 $ 25,108 Restricted stock granted 498,373 $ 82.60 Restricted stock released (83,121 ) $ 69.90 $ 1,175 Restricted stock cancelled (39,967 ) $ 81.57 Outstanding at December 31, 2017 720,840 $ 78.26 $ 49,767 Restricted stock granted 568,753 $ 68.09 Restricted stock released (196,274 ) $ 77.43 $ 968 Restricted stock cancelled (83,196 ) $ 81.73 Outstanding at December 31, 2018 1,010,123 $ 72.41 $ 39,284 Restricted stock granted 833,103 $ 59.56 Restricted stock released (325,839 ) $ 70.69 $ 4,064 Restricted stock cancelled (229,055 ) $ 70.23 Outstanding at December 31, 2019 1,288,332 $ 64.92 $ 151,431 Restricted stock expected to vest as of December 31, 2019 1,190,393 $ 59.42 $ 139,919 The aggregate intrinsic value of RSUs released is calculated using the fair market value of the Company’s common stock at the date of release. The aggregate intrinsic value of outstanding RSUs is calculated based on the closing price of the Company’s common stock as of the date outstanding. 2014 Employee Stock Purchase Plan In October 2014, the Board adopted the 2014 Employee Stock Purchase Plan (the ESPP). A total of 196,666 shares of common stock were initially available for future issuance under the 2014 Employee Stock Purchase Plan, subject to an annual increase on January 1 of each year. The ESPP provides eligible employees with an opportunity to purchase shares of the Company’s common stock through payroll deductions of up to 15% of their eligible compensation, subject to plan limitations. Under the ESPP, the purchase price of the Company stock is equal to 85% of the lower of its fair market value at the start and end of a six-month A summary of ESPP activity was as follows: December 31, 2019 2018 2017 Additional shares reserved 302,635 297,375 288,868 Shares issued 164,960 110,040 73,262 Shares available for future issuance 1,161,645 1,023,970 836,635 Employee contributions for shares issued (in thousands) $ 6,544 $ 5,521 $ 4,697 Early Exercises Stock options previously granted under the 2007 Plan allowed the Board of Directors to grant awards to provide employee option holders the right to elect to exercise unvested options in exchange for restricted common stock. There were no unvested shares at December 31, 2019, 2018 and 2017 which were subject to a repurchase right held by the Company. Additionally, as of December 31, 2019 and 2018, there was no cash received related to unvested shares, respectively. Amounts recorded are transferred into common stock and additional paid-in-capital as the shares vest. Employee Stock-Based Compensation The Company estimated the fair value of stock options granted to employees and shares purchased by employees under the ESPP using the Black-Scholes option valuation model. The fair value is amortized on a straight-line basis over the requisite service period of the awards, with the exception of performance based stock options whose fair value is recorded as expenses based on the probability that the performance metrics will be achieved. The following assumptions were used in estimating the fair value: Years Ended December 31, 2019 2018 2017 Stock Options: Expected term (in years) 5.7 5.5 5.5 Expected volatility 51% — 52% 44% — 51% 44% — 46% Risk-free interest rate 1.4% — 2.6% 2.3% — 2.9% 1.8% — 2.2% Dividend Yield 0% 0% 0% ESPP: Expected term (in years) 0.5 0.5 0.5 Expected volatility 48% — 61% 44% — 57% 36% — 37% Risk-free interest rate 1.6% — 2.4% 2.1% — 2.5% 1.0% — 1.4% Dividend Yield 0% 0% 0% Expected Term . The expected term of stock-based awards represents the weighted-average period that the stock-based awards are expected to remain outstanding. The Company has historically opted to use the “simplified method” for estimating the expected term of the awards, whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the awards. Starting in late 2016, the Company started to utilize its own historical data for the calculation of expected term. Expected Volatility . The Company has historically determined the share price volatility for stock-based awards based on an analysis of the historical volatilities of a peer group of publicly traded medical device companies. Starting in late 2016, the Company has started to incorporate its own stock trading volatility with those of its peer group for the calculation of volatility. In evaluating similarity, the Company considered factors such as industry, stage of life cycle and size. Risk-Free Interest Rate. The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of the grant for zero-coupon U.S. Treasury notes with remaining terms similar to the expected term of the stock-based awards. Dividend Rate. The expected dividend was assumed to be zero as the Company has never paid dividends and has no current plans to do so. Expected Forfeiture Rate. The Company is required to estimate forfeitures at the time of grant, and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest. To the extent actual forfeitures differ from the estimates, the difference will be recorded as a cumulative adjustment in the period that the estimates are revised. The Company accounts for RSUs at their fair value, based on the closing market price of the Company’s common stock on the grant date. The fair value is amortized on a straight-line basis over the requisite service period of the awards, which is generally the vesting term of four years. In 2016, the Company granted performance based RSUs to its former CEO that only vest upon the achievement of specific operational performance criteria. The stock-based compensation for these performance based RSUs are recognized as expenses when it is determined that achieving the performance metrics are probable. Upon the former CEO’s resignation from the Company in March 2019, the unvested shares subject to this award as of the separation date have been cancelled. In connection with the former CEO’s resignation in March 2019, the Company amended the terms of his then vested nonqualified stock options such that they remain exercisable through the second anniversary of his separation date. This modification resulted in a charge of $1.6 million in stock-based compensation. In 2019, the Company granted performance based RSUs to its current CEO that only vest based on the total shareholder return of the Company common stock price relative to that of a specified targeted index. The fair value of these performance based RSUs is based on the Monte Carlo simulation model using the following assumptions: Years Ended December 31, 2019 Index volatility 36% Company volatility 45% Risk-free interest rate 2.4% Correlation with index 0.28 Dividend Yield 0% A summary of pre-tax stock-based compensation expense by line items in the consolidated statements of operations was as follows (in thousands): Years Ended December 31, 2019 2018 2017 Cost of revenue $ 3,061 $ 2,656 $ 1,878 Research and development 6,323 5,871 4,601 Sales, general and administrative 32,313 28,110 19,664 Total stock-based compensation expense $ 41,697 $ 36,637 $ 26,143 A summary of pre-tax stock-based compensation expense by category was as follows (in thousands): Years Ended December 31, 2019 2018 2017 Stock options $ 10,312 $ 13,765 $ 13,412 Restricted stock units 28,845 21,006 11,197 Employee stock purchase plan 2,540 1,866 1,534 Total stock-based compensation expense $ 41,697 $ 36,637 $ 26,143 As of December 31, 2019, total stock-based compensation expense not yet recognized, net of estimated forfeitures, were as follows: Unrecognized Weighted-Average Compensation Amortization Period (in thousands) (in years) Stock options $ 14,720 2.7 Restricted stock units 62,680 2.6 Employee stock purchase plan 1,262 0.4 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The components of the Company’s income / (loss) before income taxes were as follows: Years Ended December 31, 2019 2018 2017 (in thousands) Domestic $ (106,010 ) $ (52,755 ) $ (39,370 ) Foreign 3,923 4,318 4,120 Total loss before income taxes $ (102,087 ) $ (48,437 ) $ (35,250 ) The components of the expense / (benefit) for income taxes are as follows (in thousands): Years Ended December 31, 2019 2018 2017 Current: Federal $ (103 ) $ — $ — State 187 220 170 Foreign 1,644 1,477 1,238 Total current income tax expense / (benefit) 1,728 1,697 1,408 Deferred: Federal — — — State — — — Foreign (129 ) (929 ) — Total deferred income tax expense / (benefit) (129 ) (929 ) — Total income tax expense / (benefit) $ 1,599 $ 768 $ 1,408 Income tax expense differs from the amount computed by applying the statutory federal income tax rate as follows: Years Ended December 31, 2019 2018 2017 Tax at statutory federal rate 21.0 % 21.0 % 34.0 % State tax, net of federal benefit (0.1 )% (0.4 )% (0.4 )% Foreign rate differential (0.7 )% (1.0 )% 0.5 % Tax credits 3.0 % 2.8 % 4.5 % Excess tax benefits related to stock-based compensation 3.8 % 2.0 % 21.5 % Effect of Tax Cuts and Jobs Act of 2017 — % — % (121.1 )% Change in valuation allowance (26.4 )% (21.2 )% 61.4 % Other (2.2 )% (4.9 )% (4.4 )% Total (1.6 )% (1.7 )% (4.0 )% The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities are as follows: December 31, 2019 2018 (in thousands) Net operating loss carryforwards $ 94,680 $ 68,552 Tax credits 17,095 12,451 Depreciation 463 339 Stock-based compensation 9,372 10,770 Accruals and reserves 9,569 7,507 Lease liabilities 5,887 — Other 1,096 2,057 Deferred tax assets 138,162 101,676 Right of use asset (5,294 ) — Deferred tax liabilities (5,294 ) — Valuation allowance (131,807 ) (100,747 ) Net deferred tax assets $ 1,061 $ 929 Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Accordingly, substantially all of the net deferred tax assets have been offset by a valuation allowance. The valuation allowance increased by $31.1 million and $12.6 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019, the Company had federal net operating loss carryforwards (NOLs) of approximately $398.5 million, of which $139.5 million was generated in fiscal year 2018 and thereafter, which can be carried forward indefinitely under the 2017 Tax Act, as well as state NOLs of approximately $194.8 million, of which $22.1 million may be carried forward indefinitely. If not utilized, the remaining federal NOLs will begin to expire in 2026, and the remaining state NOLs will begin to expire in 2020. As of December 31, 2019, the Company had research and development credit carryforwards of approximately $13.7 million and $9.2 million for federal and California state income tax purposes, respectively. The federal credit carryforward begins expiring in 2026, and the state credits carry forward indefinitely. Under Section 382 of the Internal Revenue Code of 1986, as amended, the Company’s ability to utilize NOLs or other tax attributes such as research tax credits, in any taxable year may be limited if the Company experiences, or has experienced, a Section 382 “ownership change.” A Section 382 “ownership change” generally occurs if one or more stockholders or groups of stockholders, who own at least 5% of the Company’s stock, increase their ownership by a greater than 50 percentage point change (by value) over a rolling three-year period. Similar rules may apply under state tax laws. As a result of the Company’s June 2015 underwritten public offering, the Company experienced a Section 382 “ownership change.” The Company currently estimates that this “ownership change” will not inhibit its ability to utilize its NOLs. However, the Company may, in the future, experience one or more additional Section 382 “ownership changes” as a result of subsequent changes in its stock ownership, some of which changes are outside the Company’s control. If so, the Company may not be able to utilize a material portion of its NOLs and tax credits, even if the Company achieves profitability. The Company had unrecognized tax benefits (UTBs) of approximately $7.4 million as of December 31, 2019. The following table summarizes the activity related to UTBs (in thousands): Balance at December 31, 2016 $ 3,384 Increases related to current year tax provisions 790 Increases related to prior year tax provisions 193 Decreases related to prior year tax provisions (134 ) Balance at December 31, 2017 4,233 Increases related to current year tax provisions 893 Increases related to prior year tax provisions 80 Decreases related to prior year tax provisions (6 ) Balance at December 31, 2018 5,200 Increases related to current year tax provisions 1,611 Increases related to prior year tax provisions 572 Decreases related to prior year tax provisions — Balance at December 31, 2019 $ 7,383 If these UTBs were recognized, approximately $7.4 million would affect the effective tax rate before consideration of the valuation allowance. The Company does not expect any material changes to the estimated amount of liability associated with its uncertain tax positions within the next twelve months. In accordance with ASC 740, Income Taxes The Company files U.S. federal and state income tax and foreign income tax returns with varying statues of limitations. The Company’s U.S. federal and state tax years from inception in 2006 will remain open to examination due to the carryover of the unused NOLs and tax credits. The Company does not have any tax audits or other proceedings pending. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 12. Net Loss Per Share The following table summarizes the computation of basic and diluted net loss per share (in thousands, except share and per share data): Years Ended December 31, 2019 2018 2017 Net loss $ (103,686 ) $ (49,205 ) $ (36,658 ) Weighted average shares outstanding 30,803,872 30,051,961 29,424,360 Less: weighted average shares subject to repurchase — — (306 ) Weighted average shares used to compute basic and diluted net loss per share 30,803,872 30,051,961 29,424,054 Net loss per share, basic and diluted $ (3.37 ) $ (1.64 ) $ (1.25 ) Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period, determined using the treasury-stock method, if inclusion of these is dilutive. Because the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. The following potentially dilutive securities outstanding at the end of the periods presented have been excluded from the computation of diluted shares outstanding: December 31, 2019 2018 2017 Unreleased restricted stock 1,288,332 1,010,123 720,840 Options to purchase common stock 1,646,185 2,529,740 2,559,972 Convertible senior notes 1,790,033 1,790,033 1,790,033 Warrants related to the issuance of convertible senior notes 1,790,033 1,790,033 1,790,033 Total 6,514,583 7,119,929 6,860,878 Additionally, since the Company expects to settle the principal amount of its outstanding convertible senior notes in cash, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of $96.37 per share for the 2021 Notes. Although this condition was met in the three months ended December 31, 2019, the Company excluded the potential shares issuable upon conversion of the 2021 Notes in the calculation of diluted earnings per share, as their inclusion would have been anti-dilutive due to the net loss position of the Company during this period. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | 13. Employee Benefit Plan. In 2007, the Company adopted a 401(K) plan for its employees whereby eligible employees may contribute up to the maximum amount permitted by the Internal Revenue Code of 1986, as amended. In June 2016, the Company adopted a policy to match a portion of employee contributions for all qualified employees participating in the 401(k) plan. For the year s ended December 31, 201 9 , 201 8 and 201 7 , the Company recorded expense s of $ 3.1 million , $ million and $ million for matching contributions , respectively . |
Selected Quarterly Financial In
Selected Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information | 14. Selected Quarterly Financial Information (Unaudited) Three Months Ended December 31, September 30, June 30, March 31, 2019 2019 2019 2019 (in thousands, except per share data) Total revenue $ 114,374 $ 100,162 $ 93,571 $ 82,148 Gross profit $ 81,258 $ 69,940 $ 63,943 $ 53,209 Loss from operations $ (11,681 ) $ (15,984 ) $ (26,560 ) $ (42,254 ) Net loss $ (13,742 ) $ (17,847 ) $ (28,021 ) $ (44,076 ) Net loss per share, basic and diluted $ (0.44 ) $ (0.58 ) $ (0.91 ) $ (1.45 ) Shares used in computing net loss per common share, basic and diluted 31,233,416 30,929,938 30,677,567 30,363,623 Three Months Ended December 31, September 30, June 30, March 31, 2018 2018 2018 2018 (in thousands, except per share data) Total revenue $ 107,944 $ 95,630 $ 96,080 $ 87,635 Gross profit $ 76,154 $ 67,248 $ 67,921 $ 62,001 Loss from operations $ (8,603 ) $ (9,237 ) $ (8,201 ) $ (15,702 ) Net loss $ (9,607 ) $ (11,265 ) $ (10,620 ) $ (17,713 ) Net loss per share, basic and diluted $ (0.32 ) $ (0.37 ) $ (0.35 ) $ (0.59 ) Shares used in computing net loss per common share, basic and diluted 30,214,454 30,123,188 30,028,985 29,836,277 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). The consolidated financial statements include the Company’s accounts and those of its four wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Segments | Segments The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis, accompanied only by information about revenue by geographic region, for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level, other than revenue. Accordingly, the Company has determined that it has a single reportable and operating segment structure. The Company and its Chief Executive Officer evaluate performance based primarily on revenue in the geographic locations in which the Company operates. Until 2015, the Company had derived most of its revenue from sales to customers in Australia and Europe. In May 2015, the U.S. Food and Drug Administration (FDA) approved the Company’s premarket approval (PMA) application to market Senza in the United States and the Company launched sales in the United States in 2015. Revenue by geography is based on the billing address of the customer. The United States is the only country that accounts for 10% or more of the revenue during the periods presented: Years Ended December 31, 2019 2018 2017 United States 84 % 83 % 81 % Long-lived assets and operating income outside the United States are not material; therefore, disclosures have been limited to revenue. |
Foreign Currency Translation | Foreign Currency Translation The Company’s consolidated financial statements are prepared in U.S. dollars (USD). Its foreign subsidiaries use their local currency as their functional currency and maintain their records in the local currency. Accordingly, the assets and liabilities of these subsidiaries are translated into USD using the current exchange rates in effect at the balance sheet date and equity accounts are translated into USD using historical rates. Revenues and expenses are translated using the monthly average exchange rates during the period when the transaction occurs. The resulting foreign currency translation adjustments from this process are recorded in accumulated other comprehensive income (loss) in the consolidated balance sheets. Unrealized foreign exchange gains and losses from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of the reporting entity are recorded in other income (expense), net. The Company recorded net unrealized foreign currency transaction gains of $1.0 million during the year ended December 31, 2019, losses of $0.6 million during the year ended December 31, 2018 and gains of $0.8 million during the year ended December 31, 2017. Additionally, realized gains and losses resulting from transactions denominated in currencies other than the local currency are recorded in other income (expense), net. The Company recorded realized foreign currency transaction losses of $1.6 million during the year ended December 31, 2019, losses of $0.4 million during the year ended December 31, 2018 and gains of $0.5 million during the year ended December 31, 2017. To the extent that the Company’s international operations grow, the effect of fluctuations in currency rates will become greater, and the Company will continue to reassess its approach to managing this risk. In addition, currency fluctuations or a weakening U.S. dollar can increase the costs of the Company’s international expansion. To date, the Company has not entered into any foreign currency hedging contracts. Based on its current international structure, the Company does not plan on engaging in hedging activities in the near future. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant accounting estimates and management judgments reflected in the consolidated financial statements include items such as allowances for doubtful accounts; warranty obligations; stock-based compensation; depreciation and amortization lives; inventory valuation; valuation of investments and accounting for income taxes . Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by management. Actual results may differ from those estimates under different assumptions or conditions. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and investments. The majority of the Company’s cash is held by one financial institution in the United States in excess of federally insured limits. The Company maintained investments in money market funds that were not federally insured during the years ended December 31, 2019 and 2018, and held cash in foreign banks of approximately $12.1 million and $4.1 million at December 31, 2019 and 2018, respectively, that was not federally insured. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company’s convertible note hedge transactions, entered into in connection with the 2021 Notes, subject the Company to credit risk such that the counterparties may be unable to fulfill the terms of the transactions. The associated risk is mitigated by limiting the counterparties to major financial institutions. In the international markets in which the Company participates, the Company uses both a direct sales force and distributors to sell its products, while in the United States the Company utilizes a direct sales force. The Company performs ongoing credit evaluations of some of its direct customers and distributors, does not require collateral, and maintains allowances for potential credit losses on customer accounts when deemed necessary. There were no customers that accounted for 10% 10% The Company is subject to risks common to medical device companies including, but not limited to, new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, product liability, uncertainty of market acceptance of products and the need to obtain additional financing. The Company is dependent on third party manufacturers and suppliers, in some cases sole- or single-source suppliers. There can be no assurance that the Company’s products or services will continue to be accepted in the marketplace, nor can there be any assurance that any future products or services can be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products or services will be successfully marketed, if at all. The Company expects to incur operating losses in the near term and may need to obtain additional financing. There can be no assurance that such financing will be available or will be at terms acceptable by the Company. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Carrying amounts of certain of the Company’s financial instruments, including cash equivalents, short term investments, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their relatively short maturities. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents include money market funds in the amount of $52.4 million and $15.6 million as of December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, the Company’s cash equivalents were held in institutions in the United States and include deposits in a money market fund which were unrestricted as to withdrawal or use. |
Restricted Cash | Restricted Cash Restricted cash as of December 31, 2019 and 2018 includes certificates of deposit of $0.6 million representing collateral for the Company’s Redwood City, CA building lease pursuant to an agreement dated March 5, 2015. Restricted cash as of December 31, 2019 additionally includes certificates of deposit of $0.4 million collateralizing payment of charges related to the Company’s credit cards. |
Investment Securities | Investment Securities The Company classifies its investment securities as available-for-sale. The Company classifies these investment securities as short-term or long-term based on the nature of the investment, its maturity date and its availability for use in current operations. Those investments with original maturities greater than three months at the date of purchase and remaining maturities of less than 12 months are considered short-term investments. Those investments with remaining maturities greater than 12 months are also classified as short-term investments as management considers them to be available for current operations if needed. The Company’s investment securities are recorded at fair value based on the fair value hierarchy. Money market funds are classified within Level 1 of the fair value hierarchy, and commercial paper and corporate notes are classified within Level 2 of the fair value hierarchy. Unrealized gains and losses, deemed temporary in nature, are reported as a separate component of accumulated other comprehensive income (loss). A decline in the fair value of any security below cost that is deemed other than temporary results in a charge to earnings and the corresponding establishment of a new cost basis for the security. Premiums (discounts) are amortized (accreted) over the life of the related security as an adjustment to yield using the straight-line interest method. Dividend and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the standard cost method which approximates the first-in, first-out basis. Net realizable value is determined as the prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company regularly reviews inventory quantities compared to forecasted sales to record a provision for excess and obsolete inventory when appropriate. Inventory write-downs are recorded for excess and obsolete inventory. The Company estimates forecasted sales by considering product acceptance in the marketplace, customer demand, historical sales, product obsolescence and technological innovations. The Company’s policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected lower of cost or net realizable value, and inventory in excess of expected requirements. The estimate of excess quantities is judgmental and primarily dependent on the Company’s estimates of future demand for a particular product. If the estimate of future demand is inaccurate based on actual sales, the Company may increase the write-down for excess inventory for that component and record a charge to inventory impairment in the accompanying consolidated statements of operations and comprehensive loss. The Company periodically evaluates the carrying value of inventory on hand for potential excess amount over demand using the same lower of cost or net realizable value approach as that has been used to value the inventory. The Company also periodically evaluates inventory quantities in consideration of actual loss experience. As a result of these evaluations, for the year ended December 31, 2019, the Company recognized total write-downs of $1.6 million for its inventories. For the years ended December 31, 2018 and 2017, the Company recognized total write-downs of $2.0 million and $4.0 million for its inventories. The Company’s estimation of the future demand for a particular component of the Company’s products may vary and may result in changes in estimates in any particular period. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are expensed as incurred and are included in cost of revenue. |
Revenue Recognition | Revenue Recognition The Company has revenue arrangements that generally consist of a single performance obligation, although, in some instances, revenue arrangements may consist of two performance obligations. The Company recognizes revenue at the point in time when it transfers control of promised goods to its customers. Revenue is measured as the amount of consideration it expects to receive in exchange for transferring goods. See Note 3 for further discussion on Revenue Recognition. Adoption of ASC 606 On January 1, 2018, the Company adopted the new accounting standard ASC 606, Revenue from Contracts with Customers Revenue Recognition Under ASC 606, assuming all other revenue recognition criteria have been met, the Company will recognize revenue earlier for arrangements where the Company has satisfied its performance obligations but has not issued invoices. These amounts are recorded as unbilled receivables, which are included in accounts receivable on the consolidated balance sheet, as the Company has an unconditional right to payment at the end of the applicable period. Revenue Recognition Revenue is recognized when obligations under the terms of a contract with customers are satisfied, which occurs with the transfer of control of the Company’s goods to its customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the goods. For a majority of sales, where the Company’s sales representative delivers its product at the point of implantation at hospitals or medical facilities, the Company recognizes revenue upon completion of the procedure and authorization, which represents the point in time when control transfers to the customers. For the remaining sales, which are sent from the Company’s distribution centers directly to hospitals and medical facilities, as well as distributor sales, where product is ordered in advance of an implantation, the transfer of control occurs at the time of shipment of the product. These customers are obligated to pay within specified terms regardless of when or if they ever sell or use the products. The Company does not offer rights of return or price protection. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The expected costs associated with warranty obligations continue to be recognized as expense when the products are sold (see Note 7). The Company periodically provides incentive offers, in the form of rebates, to customers based on their aggregate levels of purchases. Product revenue is recorded net of such incentive offers. Practical Expedients and Exemptions The Company recognizes revenue upon the transfer of control of the product and there are no material future performance obligations beyond such transfer. As a result, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not capitalize incremental costs when the amortization period of the asset is less than a year. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company makes estimates of the collectability of accounts receivable. In doing so, the Company analyzes historical bad debt trends, customer credit worthiness, current economic trends and changes in customer payment patterns when evaluating the adequacy of the allowance for doubtful accounts. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment, other than leasehold improvements, is computed using the straight-line method over the assets’ estimated useful lives of three to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the life of the lease. Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group might not be recoverable. When such an event occurs, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related asset group’s carrying value. If an asset is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending on the nature of the asset. There were no impairment charges, or changes in estimated useful lives, recorded through December 31, 2019. |
Income Taxes | Income Taxes The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or income tax returns. In estimating future tax consequences, expected future events other than enactments or changes in the tax law or rates are considered. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. To date, taxes paid have been predominantly due to income taxes in foreign and state jurisdictions in which we conduct business. The Company provides for tax contingencies whenever it is deemed probable that a tax asset has been impaired or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, relative tax law, and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies. The Company records uncertain tax positions on the basis of a two-step process whereby (1) a determination is made as to whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold the Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest and penalties related to income taxes as a component of income tax expense. A nominal amount of interest and penalties have been recognized in the statements of operations and comprehensive loss in 2019. No interest or penalties related to income taxes have been recognized in the statements of operations and comprehensive loss in 201 8 and 201 7 . On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the 2017 Tax Act) was enacted into law. The recorded impact for the effects of the 2017 Tax Act is based on the Company’s current knowledge, assumptions and interpretations of available guidance. The Company elected to account for Global Intangible Low-Tax Income (GILTI) as a current period expense when incurred. The Company will continue to monitor the issuance of additional regulatory or accounting guidance and record any necessary adjustments in the period for which additional guidance is issued. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) represents all changes in stockholders’ equity except those resulting from distributions to stockholders. The Company’s unrealized gains on short-term available-for-sale investment securities and foreign currency translation adjustments represent the components of other comprehensive income (loss) that are excluded from the reported net loss and are presented in the consolidated statements of operations and comprehensive loss. |
Research and Development | Research and Development Research and development expenses, including new product development, regulatory compliance, and clinical research, are charged to operations as incurred in the consolidated statements of operations and comprehensive loss. Such costs include personnel-related costs, including stock-based compensation, supplies, services, depreciation, allocated facilities and information services, clinical trial and related clinical manufacturing expenses, fees paid to investigative sites, and other indirect costs. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation arrangements with employees in accordance with Accounting Standards Codification (ASC) 718, Compensation—Stock Compensation. In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-09, Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting The Company’s determination of the fair value of stock options, other than performance-based awards, on the date of grant utilizes the Black-Scholes option-pricing model, and is impacted by its common stock price as well as changes in assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected term that options will remain outstanding, the expected common stock price volatility over the term of the option awards, risk-free interest rates and expected dividends. The fair value of stock options is recognized over the period during which an optionee is required to provide services in exchange for the option award, known as the requisite service period (usually the vesting period), on a straight-line basis. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates the fair value of the rights to purchase shares by employees under the Employee Stock Purchase Plan using the Black-Scholes option pricing formula. The Employee Stock Purchase Plan provides for consecutive six-month Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustments as the underlying equity instruments vest. The fair value of options granted to consultants is expensed when vested. The non-employee stock-based compensation expense was not material for all periods presented. The Company accounts for stock-based compensation for the restricted stock units at their fair value, based on the closing market price of the Company’s common stock on the grant date. These costs are recognized on a straight-line basis over the requisite service period, which is generally the vesting term of four years. The Company also issues stock options and restricted stock units with vesting based upon achievement of specific operational performance criteria. The fair value for these performance-based awards is recognized over the period during which the goals are to be achieved. Stock-based compensation expense recognized at fair value includes the impact of estimated probability that the goals would be achieved, which is assessed prior to the requisite service period for the specific goals. The Company additionally grants restricted stock units with vesting based on its stock price performance compared to a specified target composite index over a certain period. The fair value of these grants is determined by using the Monte Carlo simulation model, which is based on a discounted cash flow approach, and requires inputs such as expected volatility of our stock price, expected volatility of the targeted composite index, correlation between the changes in our stock price and the target composite index, risk-free interest rate and expected dividends. The expected volatility of our stock and the target composite index is based on the historical data. Correlation is based on the historical relationship between our stock price and the target composite index. The risk-free interest rate is based upon the treasury yield consistent with the vesting term of the grant. The expected dividend yield is zero. Stock-based compensation for these restricted stock units is recognized over the specified performance measurement period. Upon adoption of ASU 2016-09 as described above, excess tax benefits or deficiencies from share-based award activity are reflected in the consolidated statements of operations as a component of the provision for income taxes, whereas they were previously recognized as additional paid-in capital. |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, restricted stock units and common stock options are considered to be potentially dilutive securities. Because the Company has reported a net loss in all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held. The FASB has also issued several updates to ASU 2016-13. These ASU’s are effective for public entities for annual periods beginning after December 15, 2019, with early adoption permitted. The Company has not determined the potential effects of the guidance on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. ASU 2019-12 also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates , and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for public entities for annual periods beginning after December 15, 2020, with early adoption permitted. The Company has not determined the potential effects of the guidance on its consolidated financial statements. |
Adoption of ASC 842 | Adoption of ASC 842 On January 1, 2019, the Company adopted the new accounting standard ASC 842, Leases The Company adopted the new lease standard using the transition method that allowed entities to initially apply ASC 842 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption (the optional transition method). The Company elected the package of transitional practical expedients, such that, for leases existing prior to the adoption of ASC 842, the Company will not need to reassess whether contracts are leases, will retain historical lease classification and historical initial direct costs classification. The Company also elected the hindsight practical expedient to determine the lease term for existing leases. Operating lease assets and operating lease liabilities are recognized based on the present value of minimum lease payments over the remaining lease term. The Company uses its incremental borrowing rate based on information available when determining the lease liabilities. Lease cost is recognized on a straight-line basis over the expected lease term. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Major Customers by Geographic Area | The United States is the only country that accounts for 10% or more of the revenue during the periods presented: Years Ended December 31, 2019 2018 2017 United States 84 % 83 % 81 % |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |
Summary of Revenue by Geography on Billing Address of Customer | The following table presents revenue by geography, based on the billing address of the customer (in thousands): Years Ended December 31, 2019 2018 2017 United States $ 326,012 $ 321,781 $ 263,462 International 64,243 65,508 63,212 Total revenue $ 390,255 $ 387,289 $ 326,674 |
ASC 606 [Member] | |
Disaggregation Of Revenue [Line Items] | |
Cumulative Effect of Changes to Consolidated Balance Sheet | The cumulative effect of the changes made to the consolidated balance sheet as of January 1, 2018 for the adoption of ASC 606 were as follows (in thousands): Balance at Adjustments Due Balance at December 31, 2017 to ASC 606 January 1, 2018 Balance Sheet: Accounts receivable, net $ 67,287 $ 1,447 $ 68,734 Prepaid expenses and other current assets 6,463 (476 ) 5,987 Accumulated other comprehensive loss (1,242 ) 4 (1,238 ) Accumulated deficit (257,844 ) 967 (256,877 ) |
Schedule of Impact of Changes Made to the Consolidated Balance Sheet from the Adoption of ASC 842 | In accordance with ASC 606, the disclosure of the impact of adoption on the Consolidated Balance Sheet was as follows (in thousands): December 31, 2018 Balance Balance Without As Reported ASC 606 Adoption Effect of Change Balance Sheet: Accounts receivable, net $ 80,656 $ 78,142 $ 2,514 Inventories 92,035 92,126 (91 ) Prepaid expenses and other current assets 6,621 7,514 (893 ) In accordance with ASC 606, the disclosure of the impact of adoption on the Consolidated Statements of Operations was as follows (in thousands): Year Ended December 31, 2018 Balance Without Balance As Reported ASC 606 Adoption Effect of Change Statement of Operations: Revenue $ 387,289 $ 386,212 $ 1,077 Cost of revenue 113,965 113,441 524 |
Lease Accounting (Tables)
Lease Accounting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Weighted Average Lease Terms and Discounts Rates | The weighted average lease terms and discounts rates are as follows: December 31, 2019 Operating Lease Term and Discount Rate Weighted-average remaining lease term 5.31 years Weighted-average discount rate 7.0% |
Schedule of Maturity of Lease Liabilities | As of December 31, 2019, t he maturity of lease liabilities are as follows (in thousands): Operating Leases 2020 $ 4,924 2021 5,073 2022 5,258 2023 5,522 2024 5,687 Thereafter 2,399 Total lease payments 28,863 Less: Interest (4,920 ) Present value of lease liabilities $ 23,943 |
Supplemental Lease Cost Information | Supplemental lease cost information are as follows (in thousands): Year Ended December 31, 2019 Operating lease cost $ 4,936 |
Schedule Of Operating Lease Assets and Liabilities | Supplemental balance sheet information are as follows (in thousands): December 31, 2019 Operating Leases: Operating lease assets $ 21,533 Other current liabilities $ 3,498 Long term operating lease liabilities 20,445 Total operating lease liabilities $ 23,943 |
Schedule of Supplemental Cash Flow Information Related to Lease | Supplemental cash flow information are as follows (in thousands): Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow from operating leases $ 3,970 |
ASC 842 [Member] | |
Schedule of Impact of Changes Made to the Consolidated Balance Sheet from the Adoption of ASC 842 | Adoption of the new lease standard resulted in the recording of operating lease assets of $24.8 million and operating lease liabilities of $26.2 million. The impact of the changes made to the consolidated balance sheet as of January 1, 2019 from the adoption of ASC 842 were as follows (in thousands): Balance at Adjustments Due Balance at December 31, 2018 to ASC 842 January 1, 2019 Balance Sheet: Operating lease assets $ — $ 24,771 $ 24,771 Other current liabilities 119 2,389 2,508 Long-term operating lease liabilities — 23,805 23,805 Other long-term liabilities 2,825 (1,423 ) 1,402 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis, by level, within the fair value hierarchy (in thousands): Balance as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds (i) $ 52,359 $ — $ — $ 52,359 Agency bonds (iii) — 17,246 — 17,246 Commercial paper (iii) — 12,449 — 12,449 Corporate notes (iii) — 142,734 — 142,734 Total assets $ 52,359 $ 172,429 $ — $ 224,788 Balance as of December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Money market funds (i) $ 15,572 $ — $ — $ 15,572 Commercial paper (ii) — 119,602 — 119,602 Corporate notes (ii) — 111,532 — 111,532 Total assets $ 15,572 $ 231,134 $ — $ 246,706 (i) Included in cash and cash equivalents on the consolidated balance sheets. (ii) Included in either cash and cash equivalents or short-term investments on the consolidated balance sheets. (iii) Included in short-term investments on the consolidated balance sheets. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Gross Unrealized Gains and Unrealized Losses of Investment Securities Excluding Investments in Money Market Funds | The following is a summary of the gross unrealized gains and unrealized losses on the Company’s investment securities (in thousands): December 31, 2019 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Investment Securities Agency bonds $ 17,209 $ 37 $ — $ 17,246 Commercial paper 12,425 24 — 12,449 Corporate notes 142,588 150 (4 ) 142,734 Total securities $ 172,222 $ 211 $ (4 ) $ 172,429 December 31, 2018 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Investment Securities Commercial paper $ 119,692 $ — $ (90 ) $ 119,602 Corporate notes 111,652 — (120 ) 111,532 Total securities $ 231,344 $ — $ (210 ) $ 231,134 |
Summary of Contractual Maturities of Investment Securities | The amortized costs and estimated fair values of the Company’s available-for-sale securities by contractual maturities as of December 31, 2019 were as follows (in thousands): Amortized Cost Fair Value Amounts maturing within one year $ 156,783 $ 156,985 Amounts after one year through five years 15,439 15,444 Total investment securities $ 172,222 $ 172,429 |
Components of Inventories | Inventories (in thousands) December 31, 2019 2018 Raw materials $ 26,354 $ 37,453 Finished goods 65,225 54,582 Total inventories $ 91,579 $ 92,035 |
Schedule of Property and Equipment, Net and Depreciation and Amortization Expense | Property and Equipment, Net (in thousands) December 31, 2019 2018 Laboratory equipment $ 5,733 $ 2,874 Computer equipment and software 9,909 8,751 Furniture and fixtures 3,898 3,903 Leasehold improvements 4,226 4,218 Construction in process 1,006 1,811 Total 24,772 21,557 Less: Accumulated depreciation and amortization (13,006 ) (8,756 ) Property and equipment, net $ 11,766 $ 12,801 |
Summary of Accrued Liabilities | Accrued Liabilities (in thousands) December 31, 2019 2018 Accrued payroll and related expenses $ 36,056 $ 26,792 Accrued professional fees 1,633 1,595 Accrued taxes 2,353 2,506 Accrued clinical and research expenses 2,157 1,105 Accrued interest 243 243 Accrued warranty 1,178 1,236 Accrued other 7,346 5,313 Total accrued liabilities $ 50,966 $ 38,790 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Activities Related to Warranty Obligations | Activities related to warranty obligations were as follows (in thousands): December 31, 2019 2018 Beginning Balance $ 1,236 $ 708 Provision for warranty 1,942 2,334 Utilization (2,000 ) (1,806 ) Ending Balance $ 1,178 $ 1,236 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instrument [Line Items] | |
Interest Expense Recognized Related to Convertible Notes | The following table sets forth the interest expense recognized related to the 2021 Notes (in thousands): Years Ended December 31, 2019 2018 2017 Contractual interest expense $ 3,019 $ 3,019 $ 3,019 Amortization of debt discount 6,843 6,432 6,046 Amortization of debt issuance costs 1,063 943 833 Total interest expense related to the 2021 Notes $ 10,925 $ 10,394 $ 9,898 |
Debt, Liability Component [Member] | |
Debt Instrument [Line Items] | |
Net Carrying Amount of Convertible Debt | The net carrying amount of the liability component of the 2021 Notes was as follows (in thousands): December 31, 2019 2018 Principal $ 172,500 $ 172,500 Unamortized discount (10,462 ) (17,305 ) Unamortized issuance cost (1,738 ) (2,801 ) Net carrying amount $ 160,300 $ 152,394 |
Debt, Equity Component [Member] | |
Debt Instrument [Line Items] | |
Net Carrying Amount of Convertible Debt | The net carrying amount of the equity component of the 2021 Notes was as follows (in thousands): December 31, 2019 2018 Debt discount related to value of conversion option $ 32,945 $ 32,945 Debt issuance cost (1,179 ) (1,179 ) Net carrying amount $ 31,766 $ 31,766 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance as of December 31, 2019 was as follows: December 31, 2019 Outstanding stock options and restricted stock units 2,934,517 Reserved for grants of future stock options and restricted stock units 3,680,784 Reserved for employee stock purchase plan 1,161,645 Total common stock reserved for future issuance 7,776,946 |
Summary of Shares Available for Grant | A summary of shares available for grant under the Stock Plans is as follows: Shares Available for Grant Balance at December 31, 2016 2,202,239 Additional shares reserved 1,155,474 Shares forfeited for tax 13,094 Options and restricted stock granted (1,002,063 ) Options and restricted stock cancelled 97,502 Balance at December 31, 2017 2,466,246 Additional shares reserved 1,189,502 Shares forfeited for tax 28,107 Options and restricted stock granted (805,653 ) Options and restricted stock cancelled 102,560 Balance at December 31, 2018 2,980,762 Additional shares reserved 1,210,541 Allowance for PSU for overperformance (277,778 ) Shares forfeited for tax 38,696 Options and restricted stock granted (1,077,178 ) Options and restricted stock cancelled 527,963 Balance at December 31, 2019 3,403,006 |
Summary of Activity under Stock Plans | A summary of stock option activity under the Stock Plans is as follows: Options Outstanding Weighted Average Number of Weighted Average Remaining Aggregate Options Exercise Price Contractual Term Intrinsic Value (in years) (in thousands) Outstanding at December 31, 2016 2,821,227 $ 29.85 7.4 $ 123,425 Options granted 503,690 $ 74.71 Options exercised (707,410 ) $ 10.59 $ 50,971 Options cancelled (57,535 ) $ 46.83 Outstanding at December 31, 2017 2,559,972 $ 43.62 7.3 $ 71,120 Options granted 236,900 $ 47.96 Options exercised (247,768 ) $ 16.05 $ 15,468 Options cancelled (19,364 ) $ 44.70 Outstanding at December 31, 2018 2,529,740 $ 46.72 6.7 $ 21,866 Options granted 244,075 $ 56.71 Options exercised (828,722 ) $ 34.52 $ 42,695 Options cancelled (298,908 ) $ 66.22 Outstanding at December 31, 2019 1,646,185 $ 50.80 6.3 $ 109,870 Options exercisable as of December 31, 2019 1,117,773 $ 46.70 5.1 $ 79,186 Options vested, exercisable or expected to vest as of December 31, 2019 1,612,455 $ 50.66 6.2 $ 107,839 |
Summary of Options Outstanding and Vested under Stock Plans by Exercise Price | The options outstanding and vested under the Stock Plans by exercise price, at December 31, 2019, were as follows: Options Outstanding Options Vested Weighted Average Remaining Number Contractual Term Weighted Average Number Weighted Average Exercise Price Outstanding (in years) Exercise Price Exercisable Exercise Price $1.44 — $18.00 334,087 3.79 $ 10.25 334,087 $ 10.25 $32.51 — $48.44 391,304 7.85 $ 43.43 159,456 $ 42.13 $49.94 — $63.23 365,966 4.45 $ 57.78 352,632 $ 57.73 $63.39 — $76.81 393,930 8.27 $ 70.58 155,991 $ 73.09 $84.30 — $97.52 160,898 7.07 $ 88.62 115,607 $ 89.07 $1.44 — $97.52 1,646,185 6.29 $ 50.80 1,117,773 $ 46.70 |
Summary of Restricted Stock Units under the Stock Plan | A summary of RSUs activity under the Stock Plans was as follows: Number of Weighted Average Aggregate Restricted Grant Date Intrinsic Value Stock Units Fair Value (in thousands) Outstanding at December 31, 2016 345,555 $ 70.39 $ 25,108 Restricted stock granted 498,373 $ 82.60 Restricted stock released (83,121 ) $ 69.90 $ 1,175 Restricted stock cancelled (39,967 ) $ 81.57 Outstanding at December 31, 2017 720,840 $ 78.26 $ 49,767 Restricted stock granted 568,753 $ 68.09 Restricted stock released (196,274 ) $ 77.43 $ 968 Restricted stock cancelled (83,196 ) $ 81.73 Outstanding at December 31, 2018 1,010,123 $ 72.41 $ 39,284 Restricted stock granted 833,103 $ 59.56 Restricted stock released (325,839 ) $ 70.69 $ 4,064 Restricted stock cancelled (229,055 ) $ 70.23 Outstanding at December 31, 2019 1,288,332 $ 64.92 $ 151,431 Restricted stock expected to vest as of December 31, 2019 1,190,393 $ 59.42 $ 139,919 |
Schedule of Employee Stock Purchase Plan Activity | A summary of ESPP activity was as follows: December 31, 2019 2018 2017 Additional shares reserved 302,635 297,375 288,868 Shares issued 164,960 110,040 73,262 Shares available for future issuance 1,161,645 1,023,970 836,635 Employee contributions for shares issued (in thousands) $ 6,544 $ 5,521 $ 4,697 |
Schedule of Fair Value of Employee Stock Options Using Black-Scholes Option Valuation and Monte Carlo Simulation Model | The following assumptions were used in estimating the fair value: Years Ended December 31, 2019 2018 2017 Stock Options: Expected term (in years) 5.7 5.5 5.5 Expected volatility 51% — 52% 44% — 51% 44% — 46% Risk-free interest rate 1.4% — 2.6% 2.3% — 2.9% 1.8% — 2.2% Dividend Yield 0% 0% 0% ESPP: Expected term (in years) 0.5 0.5 0.5 Expected volatility 48% — 61% 44% — 57% 36% — 37% Risk-free interest rate 1.6% — 2.4% 2.1% — 2.5% 1.0% — 1.4% Dividend Yield 0% 0% 0% |
Summary of Stock-Based Compensation Expense by Line Items in Consolidated Statements of Operations | A summary of pre-tax stock-based compensation expense by line items in the consolidated statements of operations was as follows (in thousands): Years Ended December 31, 2019 2018 2017 Cost of revenue $ 3,061 $ 2,656 $ 1,878 Research and development 6,323 5,871 4,601 Sales, general and administrative 32,313 28,110 19,664 Total stock-based compensation expense $ 41,697 $ 36,637 $ 26,143 |
Summary of Stock-Based Compensation Expense | A summary of pre-tax stock-based compensation expense by category was as follows (in thousands): Years Ended December 31, 2019 2018 2017 Stock options $ 10,312 $ 13,765 $ 13,412 Restricted stock units 28,845 21,006 11,197 Employee stock purchase plan 2,540 1,866 1,534 Total stock-based compensation expense $ 41,697 $ 36,637 $ 26,143 |
Summary of Stock-Based Compensation Expense Not Yet Recognized | As of December 31, 2019, total stock-based compensation expense not yet recognized, net of estimated forfeitures, were as follows: Unrecognized Weighted-Average Compensation Amortization Period (in thousands) (in years) Stock options $ 14,720 2.7 Restricted stock units 62,680 2.6 Employee stock purchase plan 1,262 0.4 |
Performance Based RSUs [Member] | |
Schedule of Fair Value of Employee Stock Options Using Black-Scholes Option Valuation and Monte Carlo Simulation Model | The fair value of these performance based RSUs is based on the Monte Carlo simulation model using the following assumptions: Years Ended December 31, 2019 Index volatility 36% Company volatility 45% Risk-free interest rate 2.4% Correlation with index 0.28 Dividend Yield 0% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Loss before Income Taxes | The components of the Company’s income / (loss) before income taxes were as follows: Years Ended December 31, 2019 2018 2017 (in thousands) Domestic $ (106,010 ) $ (52,755 ) $ (39,370 ) Foreign 3,923 4,318 4,120 Total loss before income taxes $ (102,087 ) $ (48,437 ) $ (35,250 ) |
Components of Expense/(Benefit) for Income Taxes | The components of the expense / (benefit) for income taxes are as follows (in thousands): Years Ended December 31, 2019 2018 2017 Current: Federal $ (103 ) $ — $ — State 187 220 170 Foreign 1,644 1,477 1,238 Total current income tax expense / (benefit) 1,728 1,697 1,408 Deferred: Federal — — — State — — — Foreign (129 ) (929 ) — Total deferred income tax expense / (benefit) (129 ) (929 ) — Total income tax expense / (benefit) $ 1,599 $ 768 $ 1,408 |
Income Tax Expense by Applying Statutory Federal Income Tax Rate | Income tax expense differs from the amount computed by applying the statutory federal income tax rate as follows: Years Ended December 31, 2019 2018 2017 Tax at statutory federal rate 21.0 % 21.0 % 34.0 % State tax, net of federal benefit (0.1 )% (0.4 )% (0.4 )% Foreign rate differential (0.7 )% (1.0 )% 0.5 % Tax credits 3.0 % 2.8 % 4.5 % Excess tax benefits related to stock-based compensation 3.8 % 2.0 % 21.5 % Effect of Tax Cuts and Jobs Act of 2017 — % — % (121.1 )% Change in valuation allowance (26.4 )% (21.2 )% 61.4 % Other (2.2 )% (4.9 )% (4.4 )% Total (1.6 )% (1.7 )% (4.0 )% |
Tax Effects of Temporary Differences and Carryforwards that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences and carryforwards that give rise to significant portions of deferred tax assets and liabilities are as follows: December 31, 2019 2018 (in thousands) Net operating loss carryforwards $ 94,680 $ 68,552 Tax credits 17,095 12,451 Depreciation 463 339 Stock-based compensation 9,372 10,770 Accruals and reserves 9,569 7,507 Lease liabilities 5,887 — Other 1,096 2,057 Deferred tax assets 138,162 101,676 Right of use asset (5,294 ) — Deferred tax liabilities (5,294 ) — Valuation allowance (131,807 ) (100,747 ) Net deferred tax assets $ 1,061 $ 929 |
Summary of Unrecognized Tax Benefits | The following table summarizes the activity related to UTBs (in thousands): Balance at December 31, 2016 $ 3,384 Increases related to current year tax provisions 790 Increases related to prior year tax provisions 193 Decreases related to prior year tax provisions (134 ) Balance at December 31, 2017 4,233 Increases related to current year tax provisions 893 Increases related to prior year tax provisions 80 Decreases related to prior year tax provisions (6 ) Balance at December 31, 2018 5,200 Increases related to current year tax provisions 1,611 Increases related to prior year tax provisions 572 Decreases related to prior year tax provisions — Balance at December 31, 2019 $ 7,383 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share | The following table summarizes the computation of basic and diluted net loss per share (in thousands, except share and per share data): Years Ended December 31, 2019 2018 2017 Net loss $ (103,686 ) $ (49,205 ) $ (36,658 ) Weighted average shares outstanding 30,803,872 30,051,961 29,424,360 Less: weighted average shares subject to repurchase — — (306 ) Weighted average shares used to compute basic and diluted net loss per share 30,803,872 30,051,961 29,424,054 Net loss per share, basic and diluted $ (3.37 ) $ (1.64 ) $ (1.25 ) |
Computation of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Shares | The following potentially dilutive securities outstanding at the end of the periods presented have been excluded from the computation of diluted shares outstanding: December 31, 2019 2018 2017 Unreleased restricted stock 1,288,332 1,010,123 720,840 Options to purchase common stock 1,646,185 2,529,740 2,559,972 Convertible senior notes 1,790,033 1,790,033 1,790,033 Warrants related to the issuance of convertible senior notes 1,790,033 1,790,033 1,790,033 Total 6,514,583 7,119,929 6,860,878 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Information | Three Months Ended December 31, September 30, June 30, March 31, 2019 2019 2019 2019 (in thousands, except per share data) Total revenue $ 114,374 $ 100,162 $ 93,571 $ 82,148 Gross profit $ 81,258 $ 69,940 $ 63,943 $ 53,209 Loss from operations $ (11,681 ) $ (15,984 ) $ (26,560 ) $ (42,254 ) Net loss $ (13,742 ) $ (17,847 ) $ (28,021 ) $ (44,076 ) Net loss per share, basic and diluted $ (0.44 ) $ (0.58 ) $ (0.91 ) $ (1.45 ) Shares used in computing net loss per common share, basic and diluted 31,233,416 30,929,938 30,677,567 30,363,623 Three Months Ended December 31, September 30, June 30, March 31, 2018 2018 2018 2018 (in thousands, except per share data) Total revenue $ 107,944 $ 95,630 $ 96,080 $ 87,635 Gross profit $ 76,154 $ 67,248 $ 67,921 $ 62,001 Loss from operations $ (8,603 ) $ (9,237 ) $ (8,201 ) $ (15,702 ) Net loss $ (9,607 ) $ (11,265 ) $ (10,620 ) $ (17,713 ) Net loss per share, basic and diluted $ (0.32 ) $ (0.37 ) $ (0.35 ) $ (0.59 ) Shares used in computing net loss per common share, basic and diluted 30,214,454 30,123,188 30,028,985 29,836,277 |
Formation and Business of the_2
Formation and Business of the Company - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Formation and Business of the Company [Line Items] | ||||||||||||
Net loss | $ 13,742 | $ 17,847 | $ 28,021 | $ 44,076 | $ 9,607 | $ 11,265 | $ 10,620 | $ 17,713 | $ 103,686 | $ 49,205 | $ 36,658 | |
Cash used in operations | 50,225 | 5,708 | 14,273 | |||||||||
Accumulated deficit | $ 409,768 | $ 306,082 | $ 409,768 | $ 306,082 | $ 257,844 | |||||||
1.75% Convertible Senior Notes due 2021 [Member] | ||||||||||||
Formation and Business of the Company [Line Items] | ||||||||||||
Debt instrument due year | 2021 | 2021 |
Formation and Business of the_3
Formation and Business of the Company - Additional Information - Public Offering (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Nov. 30, 2014 | Dec. 31, 2019 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Net proceeds from common stock | $ 118,400,000 | $ 131,600,000 | ||
1.75% Convertible Senior Notes due 2021 [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Aggregate principal amount of convertible senior notes | $ 150,000,000 | |||
Debt instrument interest rate | 1.75% | 1.75% | ||
Debt instrument due year | 2021 | 2021 | ||
Additional aggregate principal amount of convertible senior notes | $ 22,500,000 | |||
Debt instrument frequency of payment | semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2016 | |||
Net proceeds from the debt offering after deducting transaction costs | $ 166,200,000 | |||
Common Stock [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Common stock, shares issued | 2,470,587 | |||
IPO [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Common stock, shares issued | 8,050,000 | |||
Common stock, shares issued price per share | $ 18 | |||
IPO [Member] | Common Stock [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares issued upon conversion of redeemable convertible preferred stock and convertible preferred stock | 15,208,048 | |||
Over Allotment Option [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Common stock, shares issued | 705,882 | 1,050,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2019USD ($)SubsidiaryBusinessCustomer | Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($)Customer | Dec. 31, 2016USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of wholly owned subsidiaries | Subsidiary | 4 | ||||
Number of business activities | Business | 1 | ||||
Net unrealized foreign currency transaction gains (losses) | $ 1,000,000 | $ (600,000) | $ 800,000 | ||
Realized foreign currency transaction gains (losses) | (1,600,000) | (400,000) | 500,000 | ||
Cash held in foreign banks | 12,100,000 | 4,100,000 | |||
Money market funds | 52,400,000 | 15,600,000 | |||
Restricted cash | 956,000 | 606,000 | |||
Write down of inventory | 1,600,000 | 2,000,000 | 4,000,000 | ||
Impairment charges | $ 0 | ||||
Interest or penalties recognized | $ 0 | $ 0 | $ 0 | ||
Employee stock purchase plan offering period | 6 months | 6 months | |||
RSU's [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Vesting term | 4 years | ||||
Performance Based RSUs [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Dividend Yield | 0.00% | ||||
Minimum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of property and equipment | 3 years | ||||
Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of property and equipment | 5 years | ||||
Certificates of Deposit [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 600,000 | $ 600,000 | |||
Collateralizing Payment Charges Related to Credit Cards [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 400,000 | ||||
Customer Concentration Risk [Member] | Revenue [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | ||
Number of customers accounted 10% or more concentration risk | Customer | 0 | 0 | 0 | ||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% | |||
Number of customers accounted 10% or more concentration risk | Customer | 0 | 0 | |||
1.75% Convertible Senior Notes due 2021 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Debt instrument due year | 2021 | 2021 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Revenue by Major Customers by Geographic Area (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue [Member] | Geographic Concentration Risk [Member] | United States [Member] | |||
Concentration Risk [Line Items] | |||
Revenue | 84.00% | 83.00% | 81.00% |
Revenue - Cumulative Effect of
Revenue - Cumulative Effect of Changes to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable, net | $ 82,833 | $ 80,656 | $ 67,287 | |
Prepaid expenses and other current assets | 9,838 | 6,621 | 6,463 | |
Accumulated other comprehensive loss | (313) | (1,077) | (1,242) | |
Accumulated deficit | $ (409,768) | (306,082) | $ (257,844) | |
ASC 606 [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable, net | $ 68,734 | |||
Prepaid expenses and other current assets | 5,987 | |||
Accumulated other comprehensive loss | (1,238) | |||
Accumulated deficit | (256,877) | |||
Adjustments Due to ASC 606 [Member] | ASC 606 [Member] | ||||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accounts receivable, net | 2,514 | 1,447 | ||
Prepaid expenses and other current assets | $ (893) | (476) | ||
Accumulated other comprehensive loss | 4 | |||
Accumulated deficit | $ 967 |
Revenue - Impact of Adoption on
Revenue - Impact of Adoption on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disaggregation Of Revenue [Line Items] | ||||
Accounts receivable, net | $ 82,833 | $ 80,656 | $ 67,287 | |
Inventories | 91,579 | 92,035 | ||
Prepaid expenses and other current assets | $ 9,838 | 6,621 | $ 6,463 | |
ASC 606 [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Accounts receivable, net | $ 68,734 | |||
Prepaid expenses and other current assets | 5,987 | |||
Balance Without ASC 606 Adoption [Member] | ASC 606 [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Accounts receivable, net | 78,142 | |||
Inventories | 92,126 | |||
Prepaid expenses and other current assets | 7,514 | |||
Adjustments Due to ASC 606 [Member] | ASC 606 [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Accounts receivable, net | 2,514 | 1,447 | ||
Inventories | (91) | |||
Prepaid expenses and other current assets | $ (893) | $ (476) |
Revenue - Impact of Adoption _2
Revenue - Impact of Adoption on Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | $ 114,374 | $ 100,162 | $ 93,571 | $ 82,148 | $ 107,944 | $ 95,630 | $ 96,080 | $ 87,635 | $ 390,255 | $ 387,289 | $ 326,674 |
Cost of revenue | $ 121,905 | 113,965 | $ 98,981 | ||||||||
Balance Without ASC 606 Adoption [Member] | ASC 606 [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 386,212 | ||||||||||
Cost of revenue | 113,441 | ||||||||||
Adjustments Due to ASC 606 [Member] | ASC 606 [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenue | 1,077 | ||||||||||
Cost of revenue | $ 524 |
Revenue - Summary of Revenue by
Revenue - Summary of Revenue by Geography on Billing Address of Customer (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | $ 114,374 | $ 100,162 | $ 93,571 | $ 82,148 | $ 107,944 | $ 95,630 | $ 96,080 | $ 87,635 | $ 390,255 | $ 387,289 | $ 326,674 |
United States [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 326,012 | 321,781 | 263,462 | ||||||||
International [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | $ 64,243 | $ 65,508 | $ 63,212 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Unsatisfied performance obligations description | The Company recognizes revenue upon the transfer of control of the product and there are no material future performance obligations beyond such transfer. As a result, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. The Company does not capitalize incremental costs when the amortization period of the asset is less than a year. |
Revenue - Additional Informat_2
Revenue - Additional Information (Detail1) | Dec. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Unsatisfied performance obligations period | 1 year |
Lease Accounting - Additional I
Lease Accounting - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
Lessee Lease Description [Line Items] | ||
Operating lease assets | $ 21,533 | |
Operating lease liabilities | 23,943 | |
ASC 842 [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease assets | 24,800 | $ 24,771 |
Operating lease liabilities | $ 26,200 | |
Existence of option to extend the lease | true | |
Option to extend the lease term, description | As of December 31, 2019, the Company has leases with remaining terms of less than 3 year to 6 years, some of which may include options to extend the lease term for up to 5 years. | |
ASC 842 [Member] | Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Lease term | 12 months | |
Operating lease, remaining term | 3 years | |
ASC 842 [Member] | Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease, remaining term | 6 years | |
Options to extend the lease term | 5 years |
Lease Accounting - Schedule of
Lease Accounting - Schedule of Impact of Changes Made to the Consolidated Balance Sheet from the Adoption of ASC 842 (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Lessee Lease Description [Line Items] | |||
Operating lease assets | $ 21,533 | ||
Other current liabilities | 3,597 | $ 119 | |
Long-term operating lease liabilities | 20,445 | ||
Other long-term liabilities | 1,937 | $ 2,825 | |
ASC 842 [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease assets | $ 24,800 | $ 24,771 | |
Other current liabilities | 2,508 | ||
Long-term operating lease liabilities | 23,805 | ||
Other long-term liabilities | 1,402 | ||
Adjustments due to ASC 842 [Member] | ASC 842 [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease assets | 24,771 | ||
Other current liabilities | 2,389 | ||
Long-term operating lease liabilities | 23,805 | ||
Other long-term liabilities | $ (1,423) |
Lease Accounting - Schedule o_2
Lease Accounting - Schedule of Weighted Average Lease Terms and Discounts Rates (Detail) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term | 5 years 3 months 21 days |
Weighted-average discount rate | 7.00% |
Lease Accounting - Schedule o_3
Lease Accounting - Schedule of Maturity of Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 4,924 |
2021 | 5,073 |
2022 | 5,258 |
2023 | 5,522 |
2024 | 5,687 |
Thereafter | 2,399 |
Total lease payments | 28,863 |
Less: Interest | (4,920) |
Present value of lease liabilities | $ 23,943 |
Lease Accounting - Supplemental
Lease Accounting - Supplemental Lease Cost Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 4,936 |
Lease Accounting - Summary of O
Lease Accounting - Summary of Operating Lease Assets and Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases: | |
Operating lease assets | $ 21,533 |
Other current liabilities | 3,498 |
Long term operating lease liabilities | 20,445 |
Total operating lease liabilities | $ 23,943 |
Lease Accounting - Schedule o_4
Lease Accounting - Schedule of Supplemental Cash Flow Information Related to Lease (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flow from operating leases | $ 3,970 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2019 | |
1.75% Convertible Senior Notes due 2021 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument interest rate | 1.75% | 1.75% |
Debt instrument due year | 2021 | 2021 |
Fair value of notes | $ 232.6 | |
Fair Value Measurements Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net asset value of market funds | $ 1 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Fair Value Measurements Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets | $ 224,788 | $ 246,706 | |||
Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets | 52,359 | 15,572 | |||
Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets | 172,429 | 231,134 | |||
Money Market Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets | [1] | 52,359 | 15,572 | ||
Money Market Funds [Member] | Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets | [1] | 52,359 | 15,572 | ||
Bonds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets | [2] | 17,246 | |||
Bonds [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets | [2] | 17,246 | |||
Commercial Paper [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets | 12,449 | [2] | 119,602 | [3] | |
Commercial Paper [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets | 12,449 | [2] | 119,602 | [3] | |
Corporate Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets | 142,734 | [2] | 111,532 | [3] | |
Corporate Notes [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets | $ 142,734 | [2] | $ 111,532 | [3] | |
[1] | Included in cash and cash equivalents on the consolidated balance sheets. | ||||
[2] | Included in short-term investments on the consolidated balance sheets. | ||||
[3] | Included in either cash and cash equivalents or short-term investments on the consolidated balance sheets. |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Gross Unrealized Gains and Unrealized Losses of Investment Securities Excluding Investments in Money Market Funds (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 172,222 | $ 231,344 |
Gross Unrealized Holding Gains | 211 | |
Gross Unrealized Holding Losses | (4) | (210) |
Aggregate Fair Value | 172,429 | 231,134 |
Agency Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 17,209 | |
Gross Unrealized Holding Gains | 37 | |
Aggregate Fair Value | 17,246 | |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,425 | 119,692 |
Gross Unrealized Holding Gains | 24 | |
Gross Unrealized Holding Losses | (90) | |
Aggregate Fair Value | 12,449 | 119,602 |
Corporate Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 142,588 | 111,652 |
Gross Unrealized Holding Gains | 150 | |
Gross Unrealized Holding Losses | (4) | (120) |
Aggregate Fair Value | $ 142,734 | $ 111,532 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Contractual Maturities of Investment Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments Debt And Equity Securities [Abstract] | ||
Amortized Cost, Amounts maturing within one year | $ 156,783 | |
Amortized Cost, Amounts maturing after one year through five years | 15,439 | |
Amortized Cost | 172,222 | $ 231,344 |
Fair Value, Amounts maturing within one year | 156,985 | |
Fair Value, Amounts after one year through five years | 15,444 | |
Fair Value, Total investment securities | $ 172,429 | $ 231,134 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 26,354 | $ 37,453 |
Finished goods | 65,225 | 54,582 |
Total inventories | $ 91,579 | $ 92,035 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 24,772 | $ 21,557 |
Less: Accumulated depreciation and amortization | (13,006) | (8,756) |
Property and equipment, net | 11,766 | 12,801 |
Laboratory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,733 | 2,874 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,909 | 8,751 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,898 | 3,903 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,226 | 4,218 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,006 | $ 1,811 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization expense | $ 4,563 | $ 3,887 | $ 2,507 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | |||
Accrued payroll and related expenses | $ 36,056 | $ 26,792 | |
Accrued professional fees | 1,633 | 1,595 | |
Accrued taxes | 2,353 | 2,506 | |
Accrued clinical and research expenses | 2,157 | 1,105 | |
Accrued interest | 243 | 243 | |
Accrued warranty | 1,178 | 1,236 | $ 708 |
Accrued other | 7,346 | 5,313 | |
Total accrued liabilities | $ 50,966 | $ 38,790 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Aug. 01, 2019 | May 31, 2015USD ($) | Jul. 31, 2017USD ($) | Apr. 30, 2017ft² | Feb. 28, 2017USD ($) | Dec. 31, 2016USD ($)ft² | Mar. 31, 2015USD ($)ft² | Nov. 30, 2014USD ($)shares | Aug. 31, 2014 | Dec. 31, 2019USD ($)ConvertibleNotePatent | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 09, 2016Patent |
Other Commitments [Line Items] | |||||||||||||
Standard product warranty, description | limited one- to five-year warranty | ||||||||||||
Retainer fees | $ 59,017,000 | $ 48,459,000 | $ 37,560,000 | ||||||||||
Contingent consideration payment secured by convertible notes | 8,500,000 | ||||||||||||
Additional contingent consideration payment secured by convertible notes | $ 3,000,000 | ||||||||||||
Number of secured convertible notes | ConvertibleNote | 2 | ||||||||||||
Secured convertible note, measured at amortized cost | $ 7,900,000 | ||||||||||||
Value of certain rights measured at cost | 1,000,000 | ||||||||||||
Contingent liabilities | $ 0 | 0 | |||||||||||
Litigation amendment period | 21 days | ||||||||||||
Boston Scientific Corporation [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Patent infringement lawsuit allegation against number of patents | Patent | 8 | 10 | |||||||||||
Indemnification Agreement [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Contingent liabilities | $ 0 | ||||||||||||
Patent Infringement [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Contingent liabilities | 0 | ||||||||||||
Service Agreement [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
2020 | 2,500,000 | ||||||||||||
2021 | 2,500,000 | ||||||||||||
2022 | 2,500,000 | ||||||||||||
2023 | 2,500,000 | ||||||||||||
2024 | 2,500,000 | ||||||||||||
Licensing Agreements [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Annual royalty payment | $ 3,200,000 | $ 3,100,000 | $ 2,500,000 | ||||||||||
License agreement commitment amount | $ 300,000 | ||||||||||||
License agreement expiration year | 2022 | ||||||||||||
Licensing Agreements [Member] | Mayo And VGL [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
License agreement, terms | The agreement will terminate upon the last to expire patent application, unless terminated earlier. The agreement can be terminated any time after three years from March 2006 by Mayo or VGL. | ||||||||||||
Licensing Agreements [Member] | Mayo Foundation [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Retainer fees | $ 40,000 | ||||||||||||
Common stock, shares issued | shares | 20,833 | ||||||||||||
Noncash research and development expense | $ 500,000 | ||||||||||||
Licensing Agreements [Member] | Mayo Foundation [Member] | Minimum [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Annual royalty payment | 200,000 | ||||||||||||
Supply Agreements [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Purchase commitment, amount due in 2020 | 6,200,000 | ||||||||||||
Purchase commitments for inventory related charge | $ 3,600,000 | ||||||||||||
Redwood Office Agreement [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Lease agreement, commencement period | 2015-03 | ||||||||||||
Area of office space | ft² | 50,740 | ||||||||||||
Lease agreement, effective date | Jun. 30, 2015 | ||||||||||||
Lease agreement, expiration period | 2022-05 | ||||||||||||
Lease expense, payment due | $ 2,000,000 | ||||||||||||
Annual lease expense payable in final year of lease term | $ 2,400,000 | ||||||||||||
Redwood Office Agreement Additional Expansion Premises [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Area of office space | ft² | 8,171 | ||||||||||||
Redwood Office Agreement Additional Expansion Premises [Member] | Amendment 1 [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Area of office space | ft² | 49,980 | ||||||||||||
Lease expense, payment due | $ 1,200,000 | ||||||||||||
Annual lease expense payable in final year of lease term | $ 2,900,000 | ||||||||||||
Commencement date description | The lease for the Expansion Premises commenced on June 1, 2018. | ||||||||||||
Lease commencement date | Jun. 1, 2018 | ||||||||||||
Lease agreement, expiration date | May 31, 2025 | ||||||||||||
Redwood Office Agreement Additional Expansion Premises [Member] | Amendment 2 [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Lease agreement, effective date | May 31, 2017 | ||||||||||||
Lease agreement, expiration date | Jun. 1, 2018 | ||||||||||||
Facility Lease Agreement, Original [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Lease agreement, commencement period | 2014-08 | ||||||||||||
Lease agreement, effective date | Aug. 21, 2014 | ||||||||||||
Lease agreement, expiration date | May 31, 2015 | ||||||||||||
Lease agreement, lease expense | $ 100,000 | ||||||||||||
Facility Lease Agreement, Extended [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Lease agreement, commencement period | 2015-03 | ||||||||||||
Lease agreement, expiration period | 2017-02 | ||||||||||||
Lease agreement, lease expense | $ 300,000 | ||||||||||||
Non-cancellable Facility Lease [Member] | |||||||||||||
Other Commitments [Line Items] | |||||||||||||
Lease agreement, effective date | Mar. 1, 2017 | ||||||||||||
Lease agreement, expiration date | Feb. 28, 2022 | ||||||||||||
Lease agreement, lease expense | $ 400,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Activities Related to Warranty Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Beginning Balance | $ 1,236 | $ 708 |
Provision for warranty | 1,942 | 2,334 |
Utilization | (2,000) | (1,806) |
Ending Balance | $ 1,178 | $ 1,236 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - 1.75% Convertible Senior Notes due 2021 [Member] | 1 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)d$ / sharesshares | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Aggregate principal amount of convertible senior notes | $ 150,000,000 | |
Debt instrument interest rate | 1.75% | 1.75% |
Debt instrument due year | 2021-06 | |
Additional aggregate principal amount of convertible senior notes | $ 22,500,000 | |
Debt instrument frequency of payment | semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2016 | |
Net proceeds from the debt offering after deducting transaction costs | 166,200,000 | |
Convertible notes principal amount | $ 1,000 | |
Convertible notes, shares issued | shares | 10.3770 | |
Convertible notes, type of equity security issued | common stock | |
Convertible notes, conversion price | $ / shares | $ 96.37 | |
Debt instrument convertible, percentage of conversion price | 130.00% | |
Percentage of repurchase price, which is equal to principal amount of convertible notes | 100.00% | |
Debt instrument combination settlement | $ 1,000 | |
Debt conversion, converted instrument amount | $ 32,900,000 | |
Debt instrument, effective interest rate | 6.29% | |
Debt issuance costs attributable to the liability and equity component, total amount | $ 6,200,000 | |
Debt issuance costs attributable to the liability component | $ 5,000,000 | |
Number of shares purchased under convertible note hedge transactions | shares | 1,800,000 | |
Purchase price of the shares issued under convertible note hedge transactions | $ / shares | $ 96.37 | |
Total cost of the convertible note hedge transactions | $ 45,100,000 | |
Proceeds from issuance of warrants | 33,100,000 | |
Net cost of reduction to additional paid-in capital | $ 12,000,000 | |
Warrant [Member] | ||
Debt Instrument [Line Items] | ||
Number of shares issued for warrants under convertible note hedge transactions | shares | 1,800,000 | |
Purchase price of the shares issued under convertible note hedge transactions | $ / shares | $ 127.28 | |
130% for Applicable Conversion Price [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument convertible trading days | d | 20 | |
Debt instrument convertible consecutive trading days | d | 30 | |
98% Applicable Conversion Price [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument convertible trading days | d | 5 | |
Debt instrument convertible consecutive trading days | d | 10 | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of closing sale price of common stock | 98.00% | |
Maximum [Member] | Warrant [Member] | ||
Debt Instrument [Line Items] | ||
Overall conversion price | $ / shares | $ 127.28 | |
Minimum [Member] | Warrant [Member] | ||
Debt Instrument [Line Items] | ||
Overall conversion price | $ / shares | $ 96.37 |
Long-term Debt - Net Carrying A
Long-term Debt - Net Carrying Amount of Liability Component of Convertible Debt (Detail) - 1.75% Convertible Senior Notes due 2021 [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2016 |
Debt Instrument [Line Items] | |||
Unamortized issuance cost | $ (5,000) | ||
Debt, Liability Component [Member] | |||
Debt Instrument [Line Items] | |||
Principal | $ 172,500 | $ 172,500 | |
Unamortized discount | (10,462) | (17,305) | |
Unamortized issuance cost | (1,738) | (2,801) | |
Net carrying amount | $ 160,300 | $ 152,394 |
Long-term Debt - Net Carrying_2
Long-term Debt - Net Carrying Amount of Equity Component of Convertible Debt (Detail) - 1.75% Convertible Senior Notes due 2021 [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2016 |
Debt Instrument [Line Items] | |||
Net carrying amount | $ 32,900 | ||
Debt, Equity Component [Member] | |||
Debt Instrument [Line Items] | |||
Debt discount related to value of conversion option | $ 32,945 | $ 32,945 | |
Debt issuance cost | (1,179) | (1,179) | |
Net carrying amount | $ 31,766 | $ 31,766 |
Long-term Debt - Interest Expen
Long-term Debt - Interest Expense Recognized Related to Convertible Notes (Detail) - 1.75% Convertible Senior Notes due 2021 [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Contractual interest expense | $ 3,019 | $ 3,019 | $ 3,019 |
Amortization of debt discount | 6,843 | 6,432 | 6,046 |
Amortization of debt issuance costs | 1,063 | 943 | 833 |
Total interest expense related to the 2021 Notes | $ 10,925 | $ 10,394 | $ 9,898 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Detail) - shares | Nov. 11, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 10, 2014 |
Class of Stock [Line Items] | ||||
Convertible preferred stock outstanding | 0 | 0 | 15,208,048 | |
IPO [Member] | ||||
Class of Stock [Line Items] | ||||
Convertible preferred stock converted to common stock | 15,208,048 | |||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock shares issued for each convertible preferred stock | 1 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2019shares |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Outstanding stock options and restricted stock units | 2,934,517 |
Reserved for grants of future stock options and restricted stock units | 3,680,784 |
Reserved for employee stock purchase plan | 1,161,645 |
Total common stock reserved for future issuance | 7,776,946 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for future issuance | 7,776,946 | ||||
Weighted-average grant-date fair value of options granted | $ 27.91 | $ 23.27 | $ 32.35 | ||
Fair value of options vested | $ 8,300,000 | $ 14,000,000 | $ 13,300,000 | ||
Employee stock purchase plan offering period | 6 months | 6 months | |||
Stock options unvested shares | 0 | 0 | 0 | ||
Cash received from unvested shares | $ 0 | $ 0 | |||
Stock-based compensation expense | $ 41,697,000 | $ 36,637,000 | $ 26,143,000 | ||
Employee Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option purchase price, percentage of fair value | 85.00% | ||||
Number of shares available for sale | 196,666 | ||||
Maximum employee subscription rate | 15.00% | ||||
Performance Based RSUs [Member] | CEO [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Targeted composite index period | 3 years | ||||
RSU's [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting term | 4 years | ||||
Stock-based compensation expense | $ 1,600,000 | $ 28,845,000 | $ 21,006,000 | $ 11,197,000 | |
Maximum [Member] | Performance Based RSUs [Member] | CEO [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Targeted number of shares granted ratio | 350.00% | ||||
Minimum [Member] | Performance Based RSUs [Member] | CEO [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Targeted number of shares granted ratio | 0.00% | ||||
2007 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional awards authorized under plan | 0 | ||||
2014 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for future issuance | 1,854,166 | ||||
Plan modification description | The number of shares initially reserved for issuance under the 2014 Plan is subject to increase by (i) the number of shares represented by awards outstanding under the 2007 Plan that are forfeited or lapse unexercised and which following the pricing date are not issued under the 2007 Plan, and (ii) an annual increase on January 1 of each year. | ||||
2014 Plan [Member] | ISO [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shareholder granted option | 10.00% | ||||
2014 Plan [Member] | NSO [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of shareholder granted option | 10.00% | ||||
2014 Plan [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting term | 4 years | ||||
2014 Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options expiration period | 10 years | ||||
Option purchase price, percentage of fair value | 110.00% | ||||
2014 Plan [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option purchase price, percentage of fair value | 100.00% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Shares Available for Grant (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Available for Grant, Beginning balances | 2,980,762 | 2,466,246 | 2,202,239 |
Shares Available for Grant, Additional shares reserved | 1,210,541 | 1,189,502 | 1,155,474 |
Shares Available for Grant, Allowance for PSU for over performance | (277,778) | ||
Shares Available for Grant, Shares forfeited for tax | 38,696 | 28,107 | 13,094 |
Shares Available for Grant, Ending balances | 3,403,006 | 2,980,762 | 2,466,246 |
Employee Stock Option and Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Available for Grant, Options and other than options granted | (1,077,178) | (805,653) | (1,002,063) |
Shares Available for Grant, Options and other than options forfeited or cancelled | 527,963 | 102,560 | 97,502 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Activity under Stock Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Exercise Price And Additional Disclosures [Abstract] | ||||
Number of Options, Outstanding Beginning balances | 2,529,740 | 2,559,972 | 2,821,227 | |
Number of Options, Options granted | 244,075 | 236,900 | 503,690 | |
Number of Options, Options exercised | (828,722) | (247,768) | (707,410) | |
Number of Options, Options cancelled | (298,908) | (19,364) | (57,535) | |
Number of Options, Outstanding Ending balances | 1,646,185 | 2,529,740 | 2,559,972 | 2,821,227 |
Number of Options, Options exercisable | 1,117,773 | |||
Number of Options, Options vested, exercisable or expected to vest | 1,612,455 | |||
Weighted Average Exercise Price, Beginning balances | $ 46.72 | $ 43.62 | $ 29.85 | |
Weighted Average Exercise Price, Options granted | 56.71 | 47.96 | 74.71 | |
Weighted Average Exercise Price, Options exercised | 34.52 | 16.05 | 10.59 | |
Weighted Average Exercise Price, Options cancelled | 66.22 | 44.70 | 46.83 | |
Weighted Average Exercise Price, Ending balances | 50.80 | $ 46.72 | $ 43.62 | $ 29.85 |
Weighted Average Exercise Price, Options exercisable | 46.70 | |||
Weighted Average Exercise Price, Options vested, exercisable or expected to vest | $ 50.66 | |||
Options Outstanding, Weighted-Average Remaining Contractual Term | 6 years 3 months 18 days | 6 years 8 months 12 days | 7 years 3 months 18 days | 7 years 4 months 24 days |
Options exercisable, Weighted-Average Remaining Contractual Term | 5 years 1 month 6 days | |||
Options vested, exercisable or expected to vest, Weighted Average Remaining Contractual Term | 6 years 2 months 12 days | |||
Options Outstanding, Aggregate Intrinsic Value | $ 109,870 | $ 21,866 | $ 71,120 | $ 123,425 |
Options exercised, Aggregate Intrinsic Value | 42,695 | $ 15,468 | $ 50,971 | |
Options exercisable, Aggregate Intrinsic Value | 79,186 | |||
Options vested, exercisable or expected to vest, Aggregate Intrinsic Value | $ 107,839 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Options Outstanding and Vested Under Stock Plans by Exercise Price (Detail) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
$1.44 — $18.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Lower Range Limit | $ 1.44 |
Options Outstanding, Exercise Price Upper Range Limit | $ 18 |
Number of Options Outstanding | shares | 334,087 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 3 years 9 months 14 days |
Options Outstanding, Weighted Average Exercise Price | $ 10.25 |
Options Vested, Number Exercisable | shares | 334,087 |
Options Vested, Weighted Average Exercise Price | $ 10.25 |
$32.51 — $48.44 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Lower Range Limit | 32.51 |
Options Outstanding, Exercise Price Upper Range Limit | $ 48.44 |
Number of Options Outstanding | shares | 391,304 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 7 years 10 months 6 days |
Options Outstanding, Weighted Average Exercise Price | $ 43.43 |
Options Vested, Number Exercisable | shares | 159,456 |
Options Vested, Weighted Average Exercise Price | $ 42.13 |
$49.94 — $63.23 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Lower Range Limit | 49.94 |
Options Outstanding, Exercise Price Upper Range Limit | $ 63.23 |
Number of Options Outstanding | shares | 365,966 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 4 years 5 months 12 days |
Options Outstanding, Weighted Average Exercise Price | $ 57.78 |
Options Vested, Number Exercisable | shares | 352,632 |
Options Vested, Weighted Average Exercise Price | $ 57.73 |
$63.39 — $76.81 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Lower Range Limit | 63.39 |
Options Outstanding, Exercise Price Upper Range Limit | $ 76.81 |
Number of Options Outstanding | shares | 393,930 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 8 years 3 months 7 days |
Options Outstanding, Weighted Average Exercise Price | $ 70.58 |
Options Vested, Number Exercisable | shares | 155,991 |
Options Vested, Weighted Average Exercise Price | $ 73.09 |
$84.30 — $97.52 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Lower Range Limit | 84.30 |
Options Outstanding, Exercise Price Upper Range Limit | $ 97.52 |
Number of Options Outstanding | shares | 160,898 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 7 years 25 days |
Options Outstanding, Weighted Average Exercise Price | $ 88.62 |
Options Vested, Number Exercisable | shares | 115,607 |
Options Vested, Weighted Average Exercise Price | $ 89.07 |
$1.44 — $97.52 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Exercise Price Lower Range Limit | 1.44 |
Options Outstanding, Exercise Price Upper Range Limit | $ 97.52 |
Number of Options Outstanding | shares | 1,646,185 |
Options Outstanding, Weighted Average Remaining Contractual Life (in Years) | 6 years 3 months 14 days |
Options Outstanding, Weighted Average Exercise Price | $ 50.80 |
Options Vested, Number Exercisable | shares | 1,117,773 |
Options Vested, Weighted Average Exercise Price | $ 46.70 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Restricted Stock Units Under Stock Plan (Detail) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Restricted Stock Units, Outstanding Beginning Balance | 1,010,123 | 720,840 | 345,555 | |
Number of Restricted Stock Units, Restricted stock granted | 833,103 | 568,753 | 498,373 | |
Number of Restricted Stock Units, Restricted stock released | (325,839) | (196,274) | (83,121) | |
Number of Restricted Stock Units, Restricted stock cancelled | (229,055) | (83,196) | (39,967) | |
Number of Restricted Stock Units, Outstanding Ending Balance | 1,288,332 | 1,010,123 | 720,840 | |
Number of Restricted Stock Units, Restricted stock expected to vest | 1,190,393 | |||
Weighted Average Grant Date Fair Value Outstanding, Beginning Balance | $ 72.41 | $ 78.26 | $ 70.39 | |
Weighted Average Grant Date Fair Value, Granted | 59.56 | 68.09 | 82.60 | |
Weighted Average Grant Date Fair Value, Released | 70.69 | 77.43 | 69.90 | |
Weighted Average Grant Date Fair Value, Cancelled | 70.23 | 81.73 | 81.57 | |
Weighted Average Grant Date Fair Value Outstanding, Ending Balance | 64.92 | $ 72.41 | $ 78.26 | |
Weighted Average Grant Date Fair Value, Restricted stock expected to vest | $ 59.42 | |||
Aggregate Intrinsic Value Outstanding | $ 151,431 | $ 39,284 | $ 49,767 | $ 25,108 |
Aggregate Intrinsic Value, Released | 4,064 | $ 968 | $ 1,175 | |
Aggregate Intrinsic Value, Expected to vest | $ 139,919 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Employee Stock Purchase Plan Activity (Detail) - ESPP [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional shares reserved | 302,635 | 297,375 | 288,868 |
Shares issued | 164,960 | 110,040 | 73,262 |
Shares available for future issuance | 1,161,645 | 1,023,970 | 836,635 |
Employee contributions for shares issued | $ 6,544 | $ 5,521 | $ 4,697 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Fair Value of Employee Stock Options Using Black-Scholes Option Valuation Model (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 8 months 12 days | 5 years 6 months | 5 years 6 months |
Expected volatility, minimum | 51.00% | 44.00% | 44.00% |
Expected volatility, maximum | 52.00% | 51.00% | 46.00% |
Risk-free interest rate, minimum | 1.40% | 2.30% | 1.80% |
Risk-free interest rate, maximum | 2.60% | 2.90% | 2.20% |
Dividend Yield | 0.00% | 0.00% | 0.00% |
ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Expected volatility, minimum | 48.00% | 44.00% | 36.00% |
Expected volatility, maximum | 61.00% | 57.00% | 37.00% |
Risk-free interest rate, minimum | 1.60% | 2.10% | 1.00% |
Risk-free interest rate, maximum | 2.40% | 2.50% | 1.40% |
Dividend Yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Fair Value of Performance Based RUSs based on Monte Carlo Simulation Model (Detail) - Performance Based RSUs [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Index volatility | 36.00% |
Company volatility | 45.00% |
Risk-free interest rate | 2.40% |
Correlation with index | 0.28% |
Dividend Yield | 0.00% |
Stock-Based Compensation - Su_6
Stock-Based Compensation - Summary of Stock-Based Compensation Expense by Line Items in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 41,697 | $ 36,637 | $ 26,143 |
Cost of Revenue [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 3,061 | 2,656 | 1,878 |
Research and Development [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 6,323 | 5,871 | 4,601 |
Selling, General and Administrative [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 32,313 | $ 28,110 | $ 19,664 |
Stock-Based Compensation - Su_7
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 41,697 | $ 36,637 | $ 26,143 | |
Stock Options [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 10,312 | 13,765 | 13,412 | |
Restricted Stock Units [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,600 | 28,845 | 21,006 | 11,197 |
Employee Stock Purchase Plan [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 2,540 | $ 1,866 | $ 1,534 |
Stock-Based Compensation - Su_8
Stock-Based Compensation - Summary of Stock-Based Compensation Expense Not Yet Recognized (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 14,720 |
Weighted-Average Amortization Period (in years) | 2 years 8 months 12 days |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 62,680 |
Weighted-Average Amortization Period (in years) | 2 years 7 months 6 days |
Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 1,262 |
Weighted-Average Amortization Period (in years) | 4 months 24 days |
Income Taxes - Components of Lo
Income Taxes - Components of Loss before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (106,010) | $ (52,755) | $ (39,370) |
Foreign | 3,923 | 4,318 | 4,120 |
Loss before income taxes | $ (102,087) | $ (48,437) | $ (35,250) |
Income Taxes - Components of Ex
Income Taxes - Components of Expense/(Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ (103) | ||
State | 187 | $ 220 | $ 170 |
Foreign | 1,644 | 1,477 | 1,238 |
Total current income tax expense / (benefit) | 1,728 | 1,697 | 1,408 |
Deferred: | |||
Foreign | (129) | (929) | |
Total deferred income tax expense / (benefit) | (129) | (929) | |
Total income tax expense / (benefit) | $ 1,599 | $ 768 | $ 1,408 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense by Applying Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal rate | 21.00% | 21.00% | 34.00% |
State tax, net of federal benefit | (0.10%) | (0.40%) | (0.40%) |
Foreign rate differential | (0.70%) | (1.00%) | 0.50% |
Tax credits | 3.00% | 2.80% | 4.50% |
Excess tax benefits related to stock-based compensation | 3.80% | 2.00% | 21.50% |
Effect of Tax Cuts and Jobs Act of 2017 | (121.10%) | ||
Change in valuation allowance | (26.40%) | (21.20%) | 61.40% |
Other | (2.20%) | (4.90%) | (4.40%) |
Total | (1.60%) | (1.70%) | (4.00%) |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences and Carryforwards That Give Rise to Significant Portions of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 94,680 | $ 68,552 |
Tax credits | 17,095 | 12,451 |
Depreciation | 463 | 339 |
Stock-based compensation | 9,372 | 10,770 |
Accruals and reserves | 9,569 | 7,507 |
Lease liabilities | 5,887 | |
Other | 1,096 | 2,057 |
Deferred tax assets | 138,162 | 101,676 |
Right of use asset | (5,294) | |
Deferred tax liabilities | (5,294) | |
Valuation allowance | (131,807) | (100,747) |
Net deferred tax assets | $ 1,061 | $ 929 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||||
Increase in valuation allowance | $ 31,100,000 | $ 12,600,000 | ||
Unrecognized tax benefits | 7,383,000 | 5,200,000 | $ 4,233,000 | $ 3,384,000 |
Accrued interest and penalties | 0 | 0 | $ 0 | |
Research and Development Credit Carryforwards [Member] | California state [Member] | ||||
Income Taxes [Line Items] | ||||
Tax credit carry forwards | 9,200,000 | |||
Federal [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforward | $ 398,500,000 | 139,500,000 | ||
Net operating loss expiration date | 2026 | |||
Federal [Member] | Research and Development Credit Carryforwards [Member] | ||||
Income Taxes [Line Items] | ||||
Tax credit carry forwards | $ 13,700,000 | |||
State and Local Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforward | $ 194,800,000 | $ 22,100,000 | ||
Net operating loss expiration date | 2020 |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 5,200 | $ 4,233 | $ 3,384 |
Increases related to current year tax provisions | 1,611 | 893 | 790 |
Increases related to prior year tax provisions | 572 | 80 | 193 |
Decreases related to prior year tax provisions | (6) | (134) | |
Ending balance | $ 7,383 | $ 5,200 | $ 4,233 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss | $ (13,742) | $ (17,847) | $ (28,021) | $ (44,076) | $ (9,607) | $ (11,265) | $ (10,620) | $ (17,713) | $ (103,686) | $ (49,205) | $ (36,658) |
Weighted average shares outstanding | 30,803,872 | 30,051,961 | 29,424,360 | ||||||||
Less: weighted average shares subject to repurchase | (306) | ||||||||||
Weighted average shares used to compute basic and diluted net loss per share | 31,233,416 | 30,929,938 | 30,677,567 | 30,363,623 | 30,214,454 | 30,123,188 | 30,028,985 | 29,836,277 | 30,803,872 | 30,051,961 | 29,424,054 |
Net loss per share, basic and diluted | $ (0.44) | $ (0.58) | $ (0.91) | $ (1.45) | $ (0.32) | $ (0.37) | $ (0.35) | $ (0.59) | $ (3.37) | $ (1.64) | $ (1.25) |
Net Loss Per Share - Computat_2
Net Loss Per Share - Computation of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Shares (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 6,514,583 | 7,119,929 | 6,860,878 |
Unreleased Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 1,288,332 | 1,010,123 | 720,840 |
Options to Purchase Common Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 1,646,185 | 2,529,740 | 2,559,972 |
Convertible Senior Notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 1,790,033 | 1,790,033 | 1,790,033 |
Warrants Related to the Issuance of Convertible Senior Notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 1,790,033 | 1,790,033 | 1,790,033 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) | Dec. 31, 2019$ / shares |
1.75% Convertible Senior Notes due 2021 [Member] | |
Earnings Per Share Diluted [Line Items] | |
Convertible notes, conversion price | $ 96.37 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Expense for matching contributions | $ 3.1 | $ 2.5 | $ 2.2 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information - Schedule of Selected Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 114,374 | $ 100,162 | $ 93,571 | $ 82,148 | $ 107,944 | $ 95,630 | $ 96,080 | $ 87,635 | $ 390,255 | $ 387,289 | $ 326,674 |
Gross profit | 81,258 | 69,940 | 63,943 | 53,209 | 76,154 | 67,248 | 67,921 | 62,001 | 268,350 | 273,324 | 227,693 |
Loss from operations | (11,681) | (15,984) | (26,560) | (42,254) | (8,603) | (9,237) | (8,201) | (15,702) | (96,479) | (41,743) | (29,579) |
Net loss | $ (13,742) | $ (17,847) | $ (28,021) | $ (44,076) | $ (9,607) | $ (11,265) | $ (10,620) | $ (17,713) | $ (103,686) | $ (49,205) | $ (36,658) |
Net loss per share, basic and diluted | $ (0.44) | $ (0.58) | $ (0.91) | $ (1.45) | $ (0.32) | $ (0.37) | $ (0.35) | $ (0.59) | $ (3.37) | $ (1.64) | $ (1.25) |
Shares used in computing net loss per common share, basic and diluted | 31,233,416 | 30,929,938 | 30,677,567 | 30,363,623 | 30,214,454 | 30,123,188 | 30,028,985 | 29,836,277 | 30,803,872 | 30,051,961 | 29,424,054 |