Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | WORKIVA INC | |
Entity Central Index Key | 1,445,305 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 28,679,763 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 12,107,784 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 69,094 | $ 101,131 |
Marketable securities | 12,659 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $616 and $274 at September 30, 2015 and December 31, 2014, respectively | 12,133 | 11,120 |
Deferred commissions | 953 | 852 |
Other receivables | 951 | 295 |
Prepaid expenses and other current assets | 3,282 | 3,143 |
Total current assets | 99,072 | 116,541 |
Restricted cash | 0 | 401 |
Property and equipment, net | 45,754 | 46,265 |
Intangible assets, net | 868 | 549 |
Other assets | 626 | 795 |
Total assets | 146,320 | 164,551 |
Current liabilities | ||
Accounts payable | 4,730 | 3,011 |
Accrued expenses and other current liabilities | 17,228 | 16,765 |
Deferred revenue | 51,047 | 42,605 |
Deferred government grant obligation | 2,637 | 2,324 |
Current portion of capital lease and financing obligations | 1,985 | 1,941 |
Current portion of long-term debt | 18 | 84 |
Total current liabilities | 77,645 | 66,730 |
Deferred revenue | 8,584 | 13,671 |
Deferred government grant obligation | 3,151 | 3,424 |
Other long-term liabilities | 3,208 | 2,069 |
Capital lease and financing obligations | 21,505 | 22,747 |
Long-term debt | 73 | 91 |
Total liabilities | $ 114,166 | $ 108,732 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding | $ 0 | $ 0 |
Additional paid-in-capital | 198,499 | 189,168 |
Accumulated deficit | (166,641) | (133,535) |
Accumulated other comprehensive income | 255 | 147 |
Total stockholders’ equity | 32,154 | 55,819 |
Total liabilities and stockholders’ equity | 146,320 | 164,551 |
Class A Common Stock | ||
Stockholders’ equity | ||
Common stock | 29 | 27 |
Class B Common Stock | ||
Stockholders’ equity | ||
Common stock | $ 12 | $ 12 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Allowance for doubtful accounts | $ 616 | $ 274 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, share authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 28,652,272 | 27,213,791 |
Common stock, shares outstanding | 28,652,272 | 27,213,791 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, share authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 12,107,784 | 12,426,947 |
Common stock, shares outstanding | 12,107,784 | 12,426,947 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue | ||||
Subscription and support | $ 29,832 | $ 23,690 | $ 84,186 | $ 66,306 |
Professional services | 6,436 | 4,229 | 21,204 | 16,259 |
Total revenue | 36,268 | 27,919 | 105,390 | 82,565 |
Cost of revenue | ||||
Subscription and support | 5,319 | 5,387 | 16,768 | 15,085 |
Professional services | 4,457 | 3,152 | 12,423 | 8,832 |
Total cost of revenue | 9,776 | 8,539 | 29,191 | 23,917 |
Gross profit | 26,492 | 19,380 | 76,199 | 58,648 |
Operating expenses | ||||
Research and development | 12,766 | 11,175 | 36,970 | 32,234 |
Sales and marketing | 20,903 | 16,248 | 50,937 | 39,435 |
General and administrative | 7,153 | 4,572 | 20,178 | 13,986 |
Total operating expenses | 40,822 | 31,995 | 108,085 | 85,655 |
Loss from operations | (14,330) | (12,615) | (31,886) | (27,007) |
Interest expense | (494) | (700) | (1,517) | (1,281) |
Other income and (expense), net | 163 | (67) | 288 | (209) |
Loss before income tax benefit | (14,661) | (13,382) | (33,115) | (28,497) |
Income tax benefit | (31) | 0 | (9) | 0 |
Net loss | $ (14,630) | $ (13,382) | $ (33,106) | $ (28,497) |
Net loss per common share: | ||||
Basic and diluted (in dollars per share) | $ (0.37) | $ (0.42) | $ (0.83) | $ (0.90) |
Weighted average common shares outstanding - basic and diluted (in shares) | 39,980,308 | 31,889,795 | 39,735,393 | 31,836,479 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (14,630) | $ (13,382) | $ (33,106) | $ (28,497) |
Other comprehensive income, net of tax | ||||
Foreign currency translation adjustment, net of income tax expense of $40 and $0 for the three months ended September 30, 2015 and 2014, respectively, and net of income tax expense of $84 and $0 for the nine months ended September 30, 2015 and 2014, respectively | 59 | 49 | 104 | 39 |
Unrealized gain on available-for-sale securities | 4 | 0 | 4 | 59 |
Reclassification of realized net losses on available-for-sale securities to net loss | 0 | 0 | 0 | 136 |
Available-for-sale securities | 4 | 0 | 4 | 195 |
Other comprehensive income, net of tax | 63 | 49 | 108 | 234 |
Comprehensive loss | $ (14,567) | $ (13,333) | $ (32,998) | $ (28,263) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 40 | $ 0 | $ 84 | $ 0 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||||
Net loss | $ (14,630) | $ (13,382) | $ (33,106) | $ (28,497) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||||
Depreciation and amortization | 1,058 | 1,132 | 3,354 | 2,752 |
Stock-based compensation expense | 3,082 | 1,413 | 7,876 | 5,539 |
Provision for doubtful accounts | 222 | 104 | 348 | 128 |
Accretion of discount on convertible notes | 0 | 133 | 0 | 133 |
Paid-in-kind interest on convertible note | 0 | 58 | 0 | 58 |
Change in fair value of derivative liability | 0 | 48 | 0 | 48 |
Realized (gain) loss on sale of available-for-sale securities | (7) | 0 | (7) | 136 |
Amortization (accretion) of premiums and discounts on marketable securities, net | 32 | 0 | 32 | 0 |
Recognition of deferred government grant obligation | (236) | (39) | (508) | (51) |
Changes in assets and liabilities: | ||||
Accounts receivable | 47 | (1,794) | (1,448) | 2,584 |
Deferred commissions | (217) | (201) | (104) | (411) |
Other receivables | (44) | 108 | (656) | 240 |
Prepaid expenses and other | (218) | 231 | (139) | (942) |
Other assets | 72 | (201) | 166 | (165) |
Accounts payable | 857 | 1,727 | 2,276 | 371 |
Deferred revenue | 1,686 | 3,211 | 3,528 | 15,517 |
Accrued expenses and other liabilities | 3,578 | 2,826 | 1,732 | 3,608 |
Change in restricted cash | 0 | 0 | 101 | 54 |
Net cash (used in) provided by operating activities | (4,718) | (4,626) | (16,555) | 1,102 |
Cash flows from investing activities | ||||
Purchase of property and equipment | (629) | (2,768) | (1,659) | (8,044) |
Purchase of marketable securities | (15,692) | 0 | (15,692) | 0 |
Sale of marketable securities | 3,012 | 0 | 3,012 | 4,864 |
Purchase of intangible assets | (66) | (121) | (344) | (237) |
Net cash used in investing activities | (13,375) | (2,889) | (14,683) | (3,417) |
Cash flows from financing activities | ||||
Payment of equity issuance costs | 0 | (57) | (1,346) | (57) |
Proceeds from issuance of convertible notes | 0 | 5,000 | 0 | 5,000 |
Proceeds from option exercises | 1,062 | 158 | 1,495 | 363 |
Changes in restricted cash | 0 | 0 | 300 | (300) |
Repayment of other long-term debt | (17) | (96) | (84) | (198) |
Principal payments on capital lease and financing obligations | (522) | (316) | (1,683) | (781) |
Distributions to members | 0 | (17) | (35) | (51) |
Proceeds from borrowings on line of credit | 0 | 3,000 | 0 | 3,020 |
Proceeds from government for training reimbursement | 0 | 56 | 0 | 194 |
Payments of issuance costs on line of credit | 0 | (99) | 0 | (99) |
Repayment of line of credit | 0 | 0 | 0 | (2,038) |
Government grant awards | 235 | 0 | 548 | 2,000 |
Net cash provided by (used in) financing activities | 758 | 7,629 | (805) | 7,053 |
Effect of foreign exchange rates on cash | (3) | 26 | 6 | 22 |
Net (decrease) increase in cash and cash equivalents | (17,338) | 140 | (32,037) | 4,760 |
Cash and cash equivalents at beginning of period | 86,432 | 20,135 | 101,131 | 15,515 |
Cash and cash equivalents at end of period | 69,094 | 20,275 | 69,094 | 20,275 |
Supplemental cash flow disclosure | ||||
Cash paid for interest | 488 | 499 | 1,407 | 1,010 |
Supplemental disclosure of noncash investing and financing activities | ||||
Fixed assets acquired through financing obligations | 0 | 0 | 0 | 3,478 |
Fixed assets acquired through capital lease arrangements | 0 | 389 | 527 | 1,454 |
Allowance for tenant improvements | 0 | 0 | 698 | 0 |
Accrued distributions to members | 0 | 0 | 60 | 0 |
Initial public offering cost accruals | $ 0 | $ 1,248 | $ 0 | $ 1,248 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Organization and Significant Accounting Policies Organization Workiva Inc., a Delaware corporation, and its wholly-owned subsidiaries created Wdesk, a cloud-based platform for enterprises to collect, manage, report and analyze data in real time. Our secure software platform, Wdesk, allows users to integrate and control all of their business data, regardless of format or location, with innovative live-linking technology. We offer our customers solutions for compliance, risk, sustainability, management reporting, data collection, and enterprise risk management that are delivered through our Wdesk platform. Our operational headquarters are located in Ames, Iowa, with additional offices located in the United States, Europe and Canada. Basis of Presentation and Principles of Consolidation The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC on March 11, 2015. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results expected for the full year ending December 31, 2015 . The unaudited condensed consolidated financial statements include the accounts of Workiva Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the determination of the relative selling prices of our services, self-insurance liability for claims incurred but not yet reported, collectability of accounts receivable, valuation of available-for-sale marketable securities, useful lives of intangible assets and property and equipment, income taxes and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance codified in ASC 606, Revenue Recognition - Revenue from Contracts with Customers , which amends the guidance in former ASC 605, Revenue Recognition . In August 2015, the FASB approved the deferral of the effective date of the standard by one year. The new guidance is effective for our fiscal year beginning January 1, 2018 instead of January 1, 2017. Entities are permitted to adopt the guidance in accordance with the original effective date if they choose. We are currently evaluating the impact the provisions of ASC 606 will have on our consolidated financial statements and whether we will adopt the guidance early. In April 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. The amendment is effective for interim and annual periods beginning after December 15, 2015 with early adoption permitted. The implementation of this standard is not expected to have a significant impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The standard requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The standard will become effective for interim and annual periods beginning after December 15, 2015. The implementation of this standard is not expected to have a significant impact on our consolidated financial statements. |
Supplemental Consolidated Balan
Supplemental Consolidated Balance Sheet Information | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Consolidated Balance Sheet Information | Supplemental Consolidated Balance Sheet Information Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of (in thousands): September 30, 2015 December 31, 2014 Accrued vacation $ 3,502 $ 2,949 Accrued commissions 1,917 1,649 Accrued bonuses 6,858 6,336 Estimated health insurance claims 760 800 Accrued other liabilities 4,191 5,031 $ 17,228 $ 16,765 |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities At September 30, 2015 , marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. corporate debt securities $ 12,655 $ 15 $ (11 ) $ 12,659 Money market funds 61,232 — — 61,232 $ 73,887 $ 15 $ (11 ) $ 73,891 Included in cash and cash equivalents $ 61,232 $ — $ — $ 61,232 Included in marketable securities $ 12,655 $ 15 $ (11 ) $ 12,659 At December 31, 2014 , we reported money market funds with an amortized cost and aggregate fair value of $97.1 million in cash and cash equivalents. The following table presents gross unrealized losses and fair values for those marketable securities that were in an unrealized loss position as of September 30, 2015 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of September 30, 2015 Less than 12 months 12 months or greater Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. corporate debt securities $ 4,911 $ (11 ) $ — $ — Total $ 4,911 $ (11 ) $ — $ — As of December 31, 2014 , we did not have any marketable securities in an unrealized loss position. We do not believe any of the unrealized losses represented an other-than-temporary impairment based on our evaluation of available evidence at September 30, 2015 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We determine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 - Inputs are unobservable inputs based on our assumptions. Financial Assets Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. As of September 30, 2015 , all of our marketable securities were valued using quoted prices for comparable instruments in active markets and are classified as Level 2. Based on our valuation of our money market funds and marketable securities, we concluded that they are classified in either Level 1 or Level 2 and we have no financial assets measured using Level 3 inputs. Liabilities classified as Level 3 are described below. The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands): Fair Value Measurements as of September 30, 2015 Fair Value Measurements as of December 31, 2014 Description Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 61,232 $ 61,232 $ — $ 97,085 $ 97,085 $ — U. S. corporate debt securities 12,659 — 12,659 — — — $ 73,891 $ 61,232 $ 12,659 $ 97,085 $ 97,085 $ — Included in cash and cash equivalents $ 61,232 $ 97,085 Included in marketable securities $ 12,659 $ — Other Fair Value Measurements At September 30, 2015 , the fair value of our debt obligations approximated the carrying amount of $91,000 . The estimated fair value was based in part on our consideration of incremental borrowing rates for similar types of borrowing arrangements. We have generally classified the fair value of our debt obligations as Level 3 due to the lack of relevant observable market data over fair value inputs. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments There have been no material changes in our future estimated minimum lease payments under non-cancelable operating, capital and financing leases, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014 . Government Grants In connection with a February 2011 grant agreement with the Iowa Economic Development Authority, we were awarded a grant that provides for reimbursement of costs we incurred in connection with the construction of the first phase of the Ames office building. In March 2015, we received in connection with this grant proceeds of $313,000 , which are included in “Deferred government grant obligation” on the consolidated balance sheet at September 30, 2015 . At September 30, 2015 , this amount is presented as a non-current liability as we anticipate offsetting it against the carrying value of our property and equipment in December 2015 once all contingencies are resolved and the grant is determined to be realized. In connection with an October 2013 grant agreement with the Iowa Economic Development Authority, we were awarded a grant that provides for reimbursement of costs we incurred in connection with the construction of the second phase of the Ames office building. In August 2015, we received in connection with this grant proceeds of $235,000 , which are included in “Deferred government grant obligation” on the consolidated balance sheet at September 30, 2015 . At September 30, 2015 , this amount is presented as a non-current liability as we anticipate offsetting it against the carrying value of our property and equipment in October 2020 once all contingencies are resolved and the grant is determined to have been realized. Litigation From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of any currently pending legal proceedings to which we are a party will not have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. Prior to our corporate conversion in December 2014, awards were provided under the 2009 Unit Incentive Plan (the “2009 Plan”). We utilized equity-based compensation in the form of restricted participation units, appreciation units and options to purchase common units. We determined these forms of equity-based compensation were substantive classes of equity for accounting purposes. All outstanding options to purchase common units under the 2009 Plan automatically converted into options to purchase shares of Class A common stock following the corporate conversion. No other unvested award types were outstanding at the time of our corporate conversion. Immediately prior to our initial public offering, the 2009 Plan was amended to provide that no further awards will be issued thereunder, and our Board of Directors and stockholders adopted and approved our 2014 Equity Incentive Plan (the “2014 Plan” and, together with the 2009 Plan, the “Plans”). Subsequent to our corporate conversion, we utilize stock-based compensation in the form of restricted stock and options to purchase Class A common stock. Options to purchase Class A common stock generally vest over a four -year period and are generally granted for a term of ten years . As of September 30, 2015 , awards outstanding under the 2009 Plan consisted of stock options, and awards outstanding under the 2014 Plan consisted of stock options and restricted stock awards. As of September 30, 2015 , 1,848,537 shares of Class A common stock were available for grant under the 2014 Plan. Stock-based compensation expense for the nine months ended September 30, 2015 was $5.5 million and $2.4 million for options to purchase Class A common stock and restricted stock, respectively. Stock-based compensation expense for the nine months ended September 30, 2014 was $50,000 for restricted participation and appreciation units and $5.5 million for options to purchase common units. Stock-based compensation expense associated with restricted participation and appreciation units, stock options and restricted stock was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Cost of revenue Subscription and support $ 92 $ 88 $ 275 $ 403 Professional services 90 47 251 264 Operating expenses Research and development 586 341 1,289 1,443 Sales and marketing 461 288 1,243 889 General and administrative 1,853 649 4,818 2,540 Total $ 3,082 $ 1,413 $ 7,876 $ 5,539 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on historical volatilities for publicly traded stock options of comparable companies over the estimated expected life of the options. The expected term represents the period of time the options are expected to be outstanding and is based on the “simplified method.” We use the “simplified method” due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the options. The risk-free interest rate is based on yields on U.S. Treasury STRIPS with a maturity similar to the estimated expected term of the options. The fair value of our participation and appreciation units and options was estimated assuming no expected dividends and the following weighted-average assumptions: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Expected term (in years) 6.1 6.1 - 10.0 6.1 5.0 - 10.0 Risk-free interest rate 1.70% - 1.93% 1.79% - 2.56% 1.35% - 1.93% 1.52% - 2.80% Expected volatility 46.09% - 47.07% 47.18% - 48.48% 42.35% - 47.07% 45.84% - 52.50% Forfeiture rate 4.89% - 5.02% 0% - 6.76% 4.89% - 5.21% 0% - 6.76% Stock Options The following table summarizes the option activity under the Plans for the nine months ended September 30, 2015 : Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2014 6,089,938 $ 9.63 7.80 $ 30,066 Granted 1,464,632 13.90 Forfeited 89,815 13.42 Exercised 518,898 2.88 Outstanding at September 30, 2015 6,945,857 $ 10.98 7.80 $ 31,074 Exercisable at September 30, 2015 3,392,543 $ 7.28 6.54 $ 27,497 The total intrinsic value of options exercised during the nine months ended September 30, 2015 and 2014 was $5.9 million and $986,000 , respectively. The weighted-average grant-date fair value of options granted during the nine months ended September 30, 2015 and 2014 was $6.31 and $7.88 , respectively. The total fair value of options vested during the nine months ended September 30, 2015 and 2014 was approximately $6.8 million and $4.3 million , respectively. Total unrecognized compensation expense of $20.9 million related to options will be recognized over a weighted-average period of 2.96 years. Total compensation expense recognized during the nine months ended September 30, 2015 and 2014 for outstanding options granted to service providers was $193,000 and $1.6 million , respectively, based on the fair value on the vesting date or the fair value on the reporting date if unvested. Restricted Stock We have granted restricted stock awards to our executive officers that vest in three equal annual installments from the date of grant and to non-employee members of our Board of Directors with one -year cliff vesting from the date of grant. During the nine months ended September 30, 2015 , we granted 600,025 shares of restricted stock. The fair value for restricted stock awards is calculated based on the stock price on the date of grant. The weighted-average grant-date fair value of restricted stock granted during the nine months ended September 30, 2015 was $13.38 . Compensation expense associated with unvested restricted stock is recognized on a straight-line basis over the vesting period. The expense recognized each period is dependent upon our estimate of the number of shares that will ultimately be issued. At September 30, 2015 , there was approximately $6.3 million of total unrecognized compensation expense related to restricted stock, which is expected to be recognized over a weighted-average period of 2.13 years. Restricted participation and appreciation units The total fair value of participation and appreciat ion units vested during the nine months ended September 30, 2014 was approximately $77,000 . At December 10, 2014, all participation and appreciation units converted into Class A common stock as part of the corporate conversion. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including our outstanding stock options and stock related to unvested restricted stock awards to the extent dilutive. All historical share counts used in the calculation have been adjusted for the corporate conversion. The net loss per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A and Class B common stock as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss attributable to common stockholders is allocated on a proportionate basis. We consider unvested restricted stock awards granted under the 2014 Equity Incentive Plan to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares. In future periods to the extent we are profitable, we will subtract earnings allocated to these participating securities from net income to determine net income attributable to common stockholders. A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data): Three months ended September 30, 2015 September 30, 2014 Class A Class B Class A Class B Numerator Net loss $ (10,199 ) $ (4,431 ) $ (8,167 ) $ (5,215 ) Denominator Weighted-average common shares outstanding - basic and diluted 27,870,414 12,109,894 19,462,848 12,426,947 Basic and diluted net loss per share $ (0.37 ) $ (0.37 ) $ (0.42 ) $ (0.42 ) Nine months ended September 30, 2015 September 30, 2014 Class A Class B Class A Class B Numerator Net loss $ (22,849 ) $ (10,257 ) $ (17,382 ) $ (11,115 ) Denominator Weighted-average common shares outstanding - basic and diluted 27,423,991 12,311,402 19,419,196 12,417,284 Basic and diluted net loss per share $ (0.83 ) $ (0.83 ) $ (0.90 ) $ (0.90 ) The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows: As of September 30, 2015 September 30, 2014 Shares subject to outstanding common stock options 6,945,857 5,978,181 Shares subject to unvested restricted stock awards 654,375 — |
Organization and Significant 15
Organization and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated balance sheet data as of December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC on March 11, 2015. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results expected for the full year ending December 31, 2015 . |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the determination of the relative selling prices of our services, self-insurance liability for claims incurred but not yet reported, collectability of accounts receivable, valuation of available-for-sale marketable securities, useful lives of intangible assets and property and equipment, income taxes and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates. |
New Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance codified in ASC 606, Revenue Recognition - Revenue from Contracts with Customers , which amends the guidance in former ASC 605, Revenue Recognition . In August 2015, the FASB approved the deferral of the effective date of the standard by one year. The new guidance is effective for our fiscal year beginning January 1, 2018 instead of January 1, 2017. Entities are permitted to adopt the guidance in accordance with the original effective date if they choose. We are currently evaluating the impact the provisions of ASC 606 will have on our consolidated financial statements and whether we will adopt the guidance early. In April 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. The amendment is effective for interim and annual periods beginning after December 15, 2015 with early adoption permitted. The implementation of this standard is not expected to have a significant impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The standard requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The standard will become effective for interim and annual periods beginning after December 15, 2015. The implementation of this standard is not expected to have a significant impact on our consolidated financial statements. |
Fair Value of Financial Instruments | Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. |
Share-based Compensation | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on historical volatilities for publicly traded stock options of comparable companies over the estimated expected life of the options. The expected term represents the period of time the options are expected to be outstanding and is based on the “simplified method.” We use the “simplified method” due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the options. The risk-free interest rate is based on yields on U.S. Treasury STRIPS with a maturity similar to the estimated expected term of the options. |
Supplemental Consolidated Bal16
Supplemental Consolidated Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of (in thousands): September 30, 2015 December 31, 2014 Accrued vacation $ 3,502 $ 2,949 Accrued commissions 1,917 1,649 Accrued bonuses 6,858 6,336 Estimated health insurance claims 760 800 Accrued other liabilities 4,191 5,031 $ 17,228 $ 16,765 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | At September 30, 2015 , marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. corporate debt securities $ 12,655 $ 15 $ (11 ) $ 12,659 Money market funds 61,232 — — 61,232 $ 73,887 $ 15 $ (11 ) $ 73,891 Included in cash and cash equivalents $ 61,232 $ — $ — $ 61,232 Included in marketable securities $ 12,655 $ 15 $ (11 ) $ 12,659 |
Schedule of Cash and Cash Equivalents | At September 30, 2015 , marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. corporate debt securities $ 12,655 $ 15 $ (11 ) $ 12,659 Money market funds 61,232 — — 61,232 $ 73,887 $ 15 $ (11 ) $ 73,891 Included in cash and cash equivalents $ 61,232 $ — $ — $ 61,232 Included in marketable securities $ 12,655 $ 15 $ (11 ) $ 12,659 |
Schedule of Available-for-sale Securities, Continuous Unrealized Loss Position | The following table presents gross unrealized losses and fair values for those marketable securities that were in an unrealized loss position as of September 30, 2015 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): As of September 30, 2015 Less than 12 months 12 months or greater Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. corporate debt securities $ 4,911 $ (11 ) $ — $ — Total $ 4,911 $ (11 ) $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured on Recurring Basis | The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands): Fair Value Measurements as of September 30, 2015 Fair Value Measurements as of December 31, 2014 Description Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 61,232 $ 61,232 $ — $ 97,085 $ 97,085 $ — U. S. corporate debt securities 12,659 — 12,659 — — — $ 73,891 $ 61,232 $ 12,659 $ 97,085 $ 97,085 $ — Included in cash and cash equivalents $ 61,232 $ 97,085 Included in marketable securities $ 12,659 $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense associated with restricted participation and appreciation units, stock options and restricted stock was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Cost of revenue Subscription and support $ 92 $ 88 $ 275 $ 403 Professional services 90 47 251 264 Operating expenses Research and development 586 341 1,289 1,443 Sales and marketing 461 288 1,243 889 General and administrative 1,853 649 4,818 2,540 Total $ 3,082 $ 1,413 $ 7,876 $ 5,539 |
Schedule of Share-based Payment Award, Valuation Assumptions | The fair value of our participation and appreciation units and options was estimated assuming no expected dividends and the following weighted-average assumptions: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Expected term (in years) 6.1 6.1 - 10.0 6.1 5.0 - 10.0 Risk-free interest rate 1.70% - 1.93% 1.79% - 2.56% 1.35% - 1.93% 1.52% - 2.80% Expected volatility 46.09% - 47.07% 47.18% - 48.48% 42.35% - 47.07% 45.84% - 52.50% Forfeiture rate 4.89% - 5.02% 0% - 6.76% 4.89% - 5.21% 0% - 6.76% |
Schedule of Stock-Option Activity | The following table summarizes the option activity under the Plans for the nine months ended September 30, 2015 : Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2014 6,089,938 $ 9.63 7.80 $ 30,066 Granted 1,464,632 13.90 Forfeited 89,815 13.42 Exercised 518,898 2.88 Outstanding at September 30, 2015 6,945,857 $ 10.98 7.80 $ 31,074 Exercisable at September 30, 2015 3,392,543 $ 7.28 6.54 $ 27,497 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data): Three months ended September 30, 2015 September 30, 2014 Class A Class B Class A Class B Numerator Net loss $ (10,199 ) $ (4,431 ) $ (8,167 ) $ (5,215 ) Denominator Weighted-average common shares outstanding - basic and diluted 27,870,414 12,109,894 19,462,848 12,426,947 Basic and diluted net loss per share $ (0.37 ) $ (0.37 ) $ (0.42 ) $ (0.42 ) Nine months ended September 30, 2015 September 30, 2014 Class A Class B Class A Class B Numerator Net loss $ (22,849 ) $ (10,257 ) $ (17,382 ) $ (11,115 ) Denominator Weighted-average common shares outstanding - basic and diluted 27,423,991 12,311,402 19,419,196 12,417,284 Basic and diluted net loss per share $ (0.83 ) $ (0.83 ) $ (0.90 ) $ (0.90 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows: As of September 30, 2015 September 30, 2014 Shares subject to outstanding common stock options 6,945,857 5,978,181 Shares subject to unvested restricted stock awards 654,375 — |
Supplemental Consolidated Bal21
Supplemental Consolidated Balance Sheet Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued vacation | $ 3,502 | $ 2,949 |
Accrued commissions | 1,917 | 1,649 |
Accrued bonuses | 6,858 | 6,336 |
Estimated health insurance claims | 760 | 800 |
Accrued other liabilities | 4,191 | 5,031 |
Accrued expenses and other current liabilities | $ 17,228 | $ 16,765 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | $ 69,094 | $ 86,432 | $ 101,131 | $ 20,275 | $ 20,135 | $ 15,515 |
Schedule of Available-for-sale Securities [Line Items] | ||||||
Unrealized Gains | 15 | |||||
Unrealized Losses | (11) | |||||
Cash and cash equivalents and available-for-sale securities, amortized cost | 73,887 | |||||
Cash and cash equivalents and available-for-sale securities | 73,891 | |||||
U. S. corporate debt securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 12,655 | |||||
Unrealized Gains | 15 | |||||
Unrealized Losses | (11) | |||||
Aggregate Fair Value | 12,659 | |||||
Money market funds | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 61,232 | 97,100 | ||||
Cash and cash equivalents, aggregate fair value | 61,232 | $ 97,100 | ||||
Cash and cash equivalents | Money market funds | ||||||
Cash and Cash Equivalents [Line Items] | ||||||
Cash and cash equivalents | 61,232 | |||||
Cash and cash equivalents, aggregate fair value | 61,232 | |||||
Marketable securities | U. S. corporate debt securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Amortized Cost | 12,655 | |||||
Unrealized Gains | 15 | |||||
Unrealized Losses | (11) | |||||
Aggregate Fair Value | $ 12,659 |
Marketable Securities - Continu
Marketable Securities - Continuous Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Fair Value | |
Less than 12 months | $ 4,911 |
12 months or greater | 0 |
Unrealized Loss | |
Less than 12 months | (11) |
12 months or greater | 0 |
U. S. corporate debt securities | |
Fair Value | |
Less than 12 months | 4,911 |
12 months or greater | 0 |
Unrealized Loss | |
Less than 12 months | (11) |
12 months or greater | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
U. S. corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U. S. corporate debt securities | $ 12,659 | |
U. S. corporate debt securities | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U. S. corporate debt securities | 12,659 | |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 61,232 | $ 97,100 |
Money market funds | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 61,232 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt fair value | 91 | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 73,891 | 97,085 |
Recurring | U. S. corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U. S. corporate debt securities | 12,659 | |
Recurring | U. S. corporate debt securities | Marketable securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U. S. corporate debt securities | 12,659 | 0 |
Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 61,232 | 97,085 |
Recurring | Money market funds | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 61,232 | 97,085 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 61,232 | 97,085 |
Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 61,232 | $ 97,085 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 12,659 | |
Recurring | Level 2 | U. S. corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U. S. corporate debt securities | $ 12,659 |
Commitments and Contingencies -
Commitments and Contingencies - Government Grants (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Government grant awards | $ 235 | $ 313 | $ 235 | $ 0 | $ 548 | $ 2,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 3,082 | $ 1,413 | $ 7,876 | $ 5,539 |
Employee and Nonemployee Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 5,500 | 5,500 | ||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 2,400 | |||
Restricted Participation and Appreciation Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 50 | |||
Class A Common Stock | 2014 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | 1,848,537 | 1,848,537 | ||
Class A Common Stock | 2014 Equity Incentive Plan | Employee and Nonemployee Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 4 years | |||
Expiration period (years) | 10 years |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 3,082 | $ 1,413 | $ 7,876 | $ 5,539 |
Subscription and support | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 92 | 88 | 275 | 403 |
Professional services | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 90 | 47 | 251 | 264 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 586 | 341 | 1,289 | 1,443 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | 461 | 288 | 1,243 | 889 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation expense | $ 1,853 | $ 649 | $ 4,818 | $ 2,540 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | ||
Risk-free interest rate, min (as percent) | 1.70% | 1.79% | 1.35% | 1.52% |
Risk-free interest rate, max (as percent) | 1.93% | 2.56% | 1.93% | 2.80% |
Expected volatility, min (as percent) | 46.09% | 47.18% | 42.35% | 45.84% |
Expected volatility, max (as percent) | 47.07% | 48.48% | 47.07% | 52.50% |
Forfeiture rate, min (as percent) | 4.89% | 0.00% | 4.89% | 0.00% |
Forfeiture rate, max (as percent) | 5.02% | 6.76% | 5.21% | 6.76% |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected term (in years) | 6 years 1 month 6 days | 5 years | ||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected term (in years) | 10 years | 10 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Options (in shares): | |||||
Outstanding beginning of the period (in shares) | 6,089,938 | ||||
Granted (in shares) | 1,464,632 | ||||
Forfeited (in shares) | 89,815 | ||||
Exercised (in shares) | 518,898 | ||||
Outstanding end of the period (in shares) | 6,945,857 | 6,945,857 | 6,089,938 | ||
Exercisable at end of the period (in shares) | 3,392,543 | 3,392,543 | |||
Weighted-Average Exercise Price (in dollars per share): | |||||
Outstanding beginning of the period (in dollars per share) | $ 9.63 | ||||
Granted (in dollars per share) | 13.90 | ||||
Forfeited (in dollars per share) | 13.42 | ||||
Exercised (in dollars per share) | 2.88 | ||||
Outstanding end of the period (in dollars per share) | $ 10.98 | 10.98 | $ 9.63 | ||
Exercisable at the end of the period (in dollars per share) | $ 7.28 | $ 7.28 | |||
Outstanding, weighted-average remaining contractual term (years) | 7 years 9 months 18 days | 7 years 9 months 18 days | |||
Exercisable, weighted-average remaining contractual term (years) | 6 years 6 months 15 days | ||||
Outstanding, aggregate intrinsic value | $ 31,074 | $ 31,074 | $ 30,066 | ||
Exercisable, aggregate intrinsic value | 27,497 | 27,497 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Options exercised intrinsic value | $ 5,900 | $ 986 | |||
Options grants in period, weighted average grant date fair value (in dollars per share) | $ 6.31 | $ 7.88 | |||
Options vested in period fair value | $ 6,800 | $ 4,300 | |||
Share-based compensation expense | 3,082 | $ 1,413 | 7,876 | 5,539 | |
Employee and Nonemployee Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Options unrecognized compensation expense | $ 20,900 | $ 20,900 | |||
Options unrecognized compensation expense, period for recognition (years) | 2 years 11 months 16 days | ||||
Share-based compensation expense | $ 5,500 | 5,500 | |||
Nonemployee Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Share-based compensation expense | $ 193 | $ 1,600 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock (Details) - Restricted Stock $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted | 600,025 |
Grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 13.38 |
Unrecognized compensation expense | $ | $ 6.3 |
Unrecognized compensation expense, period for recognition (years) | 2 years 1 month 17 days |
Executive Officer | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (years) | 3 years |
Non-employee Members, Board of Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (years) | 1 year |
Stock-Based Compensation - Re31
Stock-Based Compensation - Restricted Participation and Appreciation Units (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2014USD ($) | |
Restricted Participation and Appreciation Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vested in period, fair value | $ 77 |
Net Loss Per Share - Earnings P
Net Loss Per Share - Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Class of Stock [Line Items] | ||||
Net loss | $ (14,630) | $ (13,382) | $ (33,106) | $ (28,497) |
Weighted average common shares outstanding - basic and diluted (in shares) | 39,980,308 | 31,889,795 | 39,735,393 | 31,836,479 |
Basic and diluted net loss per share (in dollars per share) | $ (0.37) | $ (0.42) | $ (0.83) | $ (0.90) |
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Net loss | $ (10,199) | $ (8,167) | $ (22,849) | $ (17,382) |
Weighted average common shares outstanding - basic and diluted (in shares) | 27,870,414 | 19,462,848 | 27,423,991 | 19,419,196 |
Basic and diluted net loss per share (in dollars per share) | $ (0.37) | $ (0.42) | $ (0.83) | $ (0.90) |
Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Net loss | $ (4,431) | $ (5,215) | $ (10,257) | $ (11,115) |
Weighted average common shares outstanding - basic and diluted (in shares) | 12,109,894 | 12,426,947 | 12,311,402 | 12,417,284 |
Basic and diluted net loss per share (in dollars per share) | $ (0.37) | $ (0.42) | $ (0.83) | $ (0.90) |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Shares subject to outstanding common stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6,945,857 | 5,978,181 |
Shares subject to unvested restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 654,375 | 0 |