Workiva (WK) 10-Q 7 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 03, 2017
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, 2017
Document Fiscal Year Focus	2,017
Amendment Flag	false
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		31,382,170
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		10,546,534

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 62,718	$ 51,281
Marketable securities	15,033	11,435
Accounts receivable, net of allowance for doubtful accounts of $646 and $900 at September 30, 2017 and December 31, 2016, respectively	24,283	22,535
Deferred commissions	2,208	1,864
Other receivables	1,109	1,545
Prepaid expenses	6,298	9,382
Total current assets	111,649	98,042
Property and equipment, net	41,300	42,590
Intangible assets, net	1,088	1,012
Other assets	1,553	1,499
Total assets	155,590	143,143
Current liabilities
Accounts payable	1,861	849
Accrued expenses and other current liabilities	20,771	20,695
Deferred revenue	99,149	76,016
Deferred government grant obligation	813	1,022
Current portion of capital lease and financing obligations	1,184	1,285
Current portion of long-term debt	0	20
Total current liabilities	123,778	99,887
Deferred revenue	23,278	21,485
Deferred government grant obligation	289	1,000
Other long-term liabilities	4,008	4,100
Capital lease and financing obligations	18,709	19,743
Long-term debt	0	53
Total liabilities	170,062	146,268
Stockholders’ deficit
Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding	0	0
Additional paid-in-capital	236,386	217,454
Accumulated deficit	(251,016)	(220,911)
Accumulated other comprehensive income	116	291
Total stockholders’ deficit	(14,472)	(3,125)
Total liabilities and stockholders’ deficit	155,590	143,143
Class A Common Stock
Stockholders’ deficit
Common stock	31	30
Class B Common Stock
Stockholders’ deficit
Common stock	$ 11	$ 11

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Allowance for doubtful accounts	$ 646	$ 900
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	31,358,479	30,369,199
Common stock, shares outstanding	31,358,479	30,369,199
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	10,546,534	10,891,888
Common stock, shares outstanding	10,546,534	10,891,888

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue
Subscription and support	$ 43,214	$ 36,237	$ 123,734	$ 104,791
Professional services	8,854	8,473	29,629	27,481
Total revenue	52,068	44,710	153,363	132,272
Cost of revenue
Subscription and support	8,472	6,694	23,867	20,651
Professional services	7,180	6,040	20,289	17,766
Total cost of revenue	15,652	12,734	44,156	38,417
Gross profit	36,416	31,976	109,207	93,855
Operating expenses
Research and development	17,527	14,342	49,302	42,905
Sales and marketing	23,712	22,354	62,212	62,270
General and administrative	8,959	8,015	27,323	24,850
Total operating expenses	50,198	44,711	138,837	130,025
Loss from operations	(13,782)	(12,735)	(29,630)	(36,170)
Interest Expense	(464)	(462)	(1,394)	(1,420)
Other income, net	198	298	986	1,152
Loss before provision (benefit) for income taxes	(14,048)	(12,899)	(30,038)	(36,438)
Provision (benefit) for income taxes	25	(8)	67	23
Net loss	$ (14,073)	$ (12,891)	$ (30,105)	$ (36,461)
Net loss per common share:
Basic and diluted (in dollars per share)	$ (0.34)	$ (0.32)	$ (0.73)	$ (0.90)
Weighted average common shares outstanding - basic and diluted (in shares)	41,815,139	40,762,960	41,453,736	40,603,430

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (14,073)	$ (12,891)	$ (30,105)	$ (36,461)
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustment, net of income tax benefit of $0 for both of the three months ended September 30, 2017 and 2016, and net of income tax benefit of $2 and $21 for the nine months ended September 30, 2017 and 2016, respectively	(82)	(4)	(168)	(37)
Unrealized (loss) gain on available-for-sale securities, net of income tax benefit of $0 and $5 for the three months ended September 30, 2017 and 2016, respectively, and net of income tax (expense) of ($2) and ($28) for the nine months ended September 30, 2017 and 2016, respectively	(7)	(8)	(7)	46
Other comprehensive (loss) income, net of tax	(89)	(12)	(175)	9
Comprehensive loss	$ (14,162)	$ (12,903)	$ (30,280)	$ (36,452)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax (expense) benefit	$ 0	$ 0	$ 2	$ 21
Unrealized gain on available-for-sale securities, tax benefit (expense)	$ 0	$ 5	$ (2)	$ (28)

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net loss	$ (14,073)	$ (12,891)	$ (30,105)	$ (36,461)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization	854	944	2,612	2,916
Stock-based compensation expense	4,664	3,670	13,200	10,562
(Recovery of) provision for doubtful accounts	(691)	(92)	(259)	78
Realized gain on sale of available-for-sale securities, net	0	0	0	(6)
Amortization of premiums and discounts on marketable securities, net	24	36	83	111
Recognition of deferred government grant obligation	(207)	(247)	(943)	(910)
Deferred income tax	0	5	0	(7)
Changes in assets and liabilities:
Accounts receivable	(757)	(4,009)	(1,299)	(6,734)
Deferred commissions	(179)	(135)	(330)	(264)
Other receivables	468	(365)	443	(447)
Prepaid expenses and other	5,123	415	3,097	(1,098)
Other assets	(87)	(455)	(74)	(841)
Accounts payable	669	279	1,008	380
Deferred revenue	5,904	13,228	24,398	15,412
Accrued expenses and other liabilities	3,474	2,410	(83)	(3,012)
Net cash provided by (used in) operating activities	5,186	2,793	11,748	(20,321)
Cash flows from investing activities
Purchase of property and equipment	(987)	(91)	(1,134)	(1,100)
Purchase of marketable securities	(5,017)	0	(11,367)	(802)
Maturities of marketable securities	2,830	0	7,681	0
Sale of marketable securities	0	0	0	7,197
Purchase of intangible assets	(55)	(38)	(144)	(152)
Net cash (used in) provided by investing activities	(3,229)	(129)	(4,964)	5,143
Cash flows from financing activities
Proceeds from option exercises	1,154	840	6,669	1,360
Taxes paid related to net share settlements of stock-based compensation awards	0	0	(936)	(761)
Repayment of other long-term debt	(53)	0	(73)	(18)
Principal payments on capital lease and financing obligations	(348)	(538)	(1,135)	(1,446)
Proceeds from government grants	0	0	22	183
Deferred financing costs	(71)	0	(81)	(33)
Net cash provided by (used in) financing activities	682	302	4,466	(715)
Effect of foreign exchange rates on cash	93	(9)	187	(15)
Net increase (decrease) in cash and cash equivalents	2,732	2,957	11,437	(15,908)
Cash and cash equivalents at beginning of period	59,986	39,885	51,281	58,750
Cash and cash equivalents at end of period	62,718	42,842	62,718	42,842
Supplemental cash flow disclosure
Cash paid for interest	447	600	1,194	1,392
Cash paid for income taxes, net of refunds	2	(26)	42	22
Supplemental disclosure of noncash investing and financing activities
Allowance for tenant improvements	0	80	0	481
Purchases of property and equipment, accrued but not paid	$ 0	$ 505	$ 0	$ 505

Organization and Significant Ac

Organization and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
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 collaborative work management platform for organizations to collect, link, report and analyze their business data. Wdesk’s proprietary word processing, spreadsheet and presentation applications are integrated and built upon a data management engine, offering synchronized data, controlled collaboration, granular permissions and a full audit trail. We offer Wdesk solutions for a wide range of use cases in the following markets: finance and accounting, audit and internal controls, risk and compliance, and operations. 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, 2016 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. 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, 2017 are not necessarily indicative of the results expected for the full year ending December 31, 2017. Seasonality has affected our revenue, expenses and cash flow in the first and third quarters. Revenue from professional services has been higher in the first quarter as many of our customers file their Form 10-K in the first calendar quarter. Sales and marketing expense has been higher in the third quarter due to our annual user conference in September. Payment of cash bonuses in the first quarter affects operating cash flow. The condensed consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on February 23, 2017. 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, health insurance 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. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Under this ASU, entities are permitted to make an accounting policy election to either estimate forfeitures on share-based payment awards, as required by current guidance, or to recognize forfeitures as they occur in addition to other changes. The guidance became effective for interim and annual periods beginning after December 15, 2016. Effective January 1, 2017, we adopted this standard. We elected to recognize forfeitures on share-based payment awards as they occur. The adoption, along with the remaining provisions of ASU 2016-09, did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new guidance is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period. The new standard must be adopted using a modified retrospective transition method, with the cumulative effect recognized as of the date of initial adoption. Effective January 1, 2017, we adopted this standard. The adoption of this new guidance did not have a material impact on our consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued guidance codified in ASC 606, Revenue Recognition - Revenue from Contracts with Customers (ASU 2014-09), which amends the guidance in former ASC 605, Revenue Recognition . The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has issued several amendments and updates to the new revenue standard, including guidance related to when an entity should recognize revenue gross as a principal or net as an agent and how an entity should identify performance obligations. As amended, ASU 2014-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted for all entities only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We believe the adoption of ASU 2014-09 will require us to recognize revenue from certain of our professional services over time rather than upon completion of the services. We expect this change may result in some acceleration of revenue recognition. We have determined that an agreement to purchase our professional services constitutes an option to purchase services in accordance with ASC 606-10-55-41 rather than an agreement that creates enforceable rights and obligations because of the customer’s contractual right to cancel the unused services. Based on our review, certain of our professional service agreements do not contain a material right and are only accounted for in accordance with ASU 2014-09 when the customer exercises its option to purchase additional goods or services. In the case of agreements where we have determined that the option provides the customer with a material right, we will be required to allocate a portion of the transaction price to the material right. The treatment of customer options under ASU 2014-09 may result in a different allocation of the transaction price than under current guidance. In addition, under current guidance, the amount that is allocated to, and recognized as revenue related to, a delivered service is limited to the amount that is not contingent on completion of the remaining performance obligations. We expect the removal of this limitation on contingent revenue under ASU 2014-09 to result in revenue being recognized earlier for certain contracts. In addition, ASU 2014-09 requires that all incremental costs of obtaining a contract with a customer be recognized as an asset. We expect this requirement will result in an increase in the costs that we capitalize. The guidance also requires that these costs be deferred over a term that is consistent with the transfer of services related to the asset. Based on our preliminary analysis, we believe this term will be approximately three years compared to one year or less under current guidance. Under ASU 2014-09, in addition to recording deferred revenue when the related cash payments are received for noncancellable services, we will record deferred revenue when payments are due in advance of our performance of those services. We expect this change will result in an offsetting increase in accounts receivable and deferred revenue. We are still evaluating the ASU for other potential impacts to our consolidated financial statements. We plan to adopt the guidance as of January 1, 2018 and expect to utilize the modified retrospective transition method. We plan to apply this transition method only to contracts that are not completed as of January 1, 2018. We have a project plan in place guiding our transition that includes the necessary changes to accounting processes, procedures, systems and internal controls. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting . This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The ASU is effective prospectively for the annual period ending December 31, 2018 and interim periods within that annual period. Early adoption is permitted. 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 and Statement of Operations Information	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Consolidated Balance Sheet and Statement of Operations Information	Supplemental Consolidated Balance Sheet and Statement of Operations Information Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of (in thousands): September 30, 2017 December 31, 2016 Accrued vacation $ 5,826 $ 4,368 Accrued commissions 2,429 2,382 Accrued bonuses 7,642 8,927 Estimated health insurance claims 1,100 1,210 Accrued other liabilities 3,774 3,808 $ 20,771 $ 20,695 Other Income, net Other income, net for the three and nine months ended September 30, 2017 and 2016 consisted of (in thousands): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Interest income $ 168 $ 64 $ 388 $ 209 Income from training reimbursement program 207 247 943 910 Other (177) (13) (345) 33 $ 198 $ 298 $ 986 $ 1,152

Marketable Securities

Marketable Securities	9 Months Ended
	Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Marketable Securities At September 30, 2017, marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury debt securities $ 2,888 $ — $ (3) $ 2,885 U.S. corporate debt securities 12,161 1 (14) 12,148 Money market funds 52,027 — — 52,027 $ 67,076 $ 1 $ (17) $ 67,060 Included in cash and cash equivalents $ 52,027 $ — $ — $ 52,027 Included in marketable securities $ 15,049 $ 1 $ (17) $ 15,033 At December 31, 2016, marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury debt securities $ 3,503 $ — $ (5) $ 3,498 U.S. corporate debt securities 7,943 1 (7) 7,937 Money market funds 43,496 — — 43,496 $ 54,942 $ 1 $ (12) $ 54,931 Included in cash and cash equivalents $ 43,496 $ — $ — $ 43,496 Included in marketable securities $ 11,446 $ 1 $ (12) $ 11,435 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, 2017, 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, 2017 Less than 12 months 12 months or greater Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. treasury debt securities $ 2,885 $ (3) $ — $ — U.S. corporate debt securities 9,884 (14) — — Total $ 12,769 $ (17) $ — $ — We do not believe any of the unrealized losses represented an other-than-temporary impairment based on our evaluation of available evidence, which includes our intent as of September 30, 2017 to hold these investments until the cost basis is recovered.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
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, 2017, 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. 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, 2017 Fair Value Measurements as of December 31, 2016 Description Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 52,027 $ 52,027 $ — $ 43,496 $ 43,496 $ — U.S. treasury debt securities 2,885 — 2,885 3,498 — 3,498 U.S. corporate debt securities 12,148 — 12,148 7,937 — 7,937 $ 67,060 $ 52,027 $ 15,033 $ 54,931 $ 43,496 $ 11,435 Included in cash and cash equivalents $ 52,027 $ 43,496 Included in marketable securities $ 15,033 $ 11,435

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
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, 2016. 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

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2017
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. We utilize stock-based compensation in the form of restricted stock awards, restricted stock units, options to purchase Class A common stock and ESPP purchase rights. As of September 30, 2017, awards outstanding under the 2009 Plan consisted of stock options, and awards outstanding under the 2014 Plan consisted of stock options, restricted stock awards and restricted stock units. As of September 30, 2017, 2,271,466 shares of Class A common stock were available for grant under the 2014 Plan. Our Employee Stock Purchase Plan (“ESPP”) became effective on June 13, 2017. Under the ESPP, eligible employees are granted options to purchase shares of Class A common stock at the lower of 85% of the fair market value of the stock at the time of grant or 85% of the fair market value at the time of exercise. Options to purchase shares are granted twice yearly on or about January 15 and July 15 and are exercisable on or about the succeeding July 14 and January 14, respectively, of each year. As of September 30, 2017, 5,000,000 shares of common stock were available for issuance under the ESPP. No participant may purchase more than $12,500 worth of common stock in a six Stock-Based Compensation Expense Stock-based compensation expense 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, 2017 2016 2017 2016 Cost of revenue Subscription and support $ 204 $ 122 $ 522 $ 365 Professional services 129 100 329 315 Operating expenses Research and development 601 594 1,566 1,787 Sales and marketing 788 567 2,141 1,471 General and administrative 2,942 2,287 8,642 6,624 Total $ 4,664 $ 3,670 $ 13,200 $ 10,562 The fair value of each option grant and each share issued under the ESPP is estimated on the date of grant using the Black-Scholes option-pricing model. For stock options, expected volatility is based on the historical volatility of our common stock and historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the options. For the ESPP purchase rights, expected volatility is based on the historical volatility of our common stock. The expected term represents the period of time the options and the ESPP purchase rights are expected to be outstanding. For stock options, the expected term is based on the “simplified method” as defined by SEC Staff Accounting Bulletin No. 110 (Topic 14.D.2). 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 expected term for the ESPP purchase rights approximates the offering period. The risk-free interest rate is based on yields on U.S. Treasury STRIPS (Separate Trading of Registered Interest and Principal of Securities) with a maturity similar to the estimated expected term of the options and ESPP purchase rights. The fair value of our stock options and ESPP purchase rights was estimated assuming no expected dividends and the following weighted-average assumptions: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Stock Options Expected term (in years) 6.1 6.1 6.0 - 6.1 6.0 - 6.1 Risk-free interest rate 1.9% - 2.1% 1.2% - 1.3% 1.9% - 2.1% 1.2% - 1.9% Expected volatility 38.9% - 39.1% 44.4% - 44.6% 38.9% - 43.8% 44.4% - 45.3% ESPP Expected term (in years) 0.5 — 0.5 — Risk-free interest rate 1.2% —% 1.2% — % Expected volatility 28.5% —% 28.5% — % Stock Options The following table summarizes the option activity under the Plans for the nine months ended September 30, 2017: Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 7,532,455 $ 12.22 7.2 $ 19,988 Granted 1,772,353 14.99 Forfeited (279,651) 14.55 Exercised (688,661) 9.68 Outstanding at September 30, 2017 8,336,496 $ 12.95 7.1 $ 65,845 Exercisable at September 30, 2017 4,727,976 $ 11.31 5.9 $ 45,104 Options to purchase Class A common stock generally vest over a three four ten and $3.4 million, respectively. The weighted-average grant-date fair value of options granted during the nine months ended September 30, 2017 and 2016 was $6.41 and $6.78, respectively. The total fair value of options vested during the nine months ended September 30, 2017 and 2016 was approximately $7.7 million and $6.9 million, respectively. Total unrecognized compensation expense of $20.5 million related to options will be recognized over a weighted-average period of 2.5 years. Restricted Stock Awards We have granted restricted stock awards to our executive officers that vest in three $2.4 million and $3.3 million, respectively. The following table summarizes the restricted stock award activity under the Plan for the nine months ended September 30, 2017: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2016 353,335 $ 13.40 Granted — — Forfeited — — Vested (176,670) 13.40 Unvested at September 30, 2017 176,665 $ 13.40 Compensation expense associated with unvested restricted stock awards is recognized on a straight-line basis over the vesting period. At September 30, 2017, there was approximately $0.8 million of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 0.4 years. Restricted Stock Units We have granted restricted stock units to our executive officers that vest in three one The following table summarizes the restricted stock unit activity under the Plan for the nine months ended September 30, 2017: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2016 381,952 $ 15.11 Granted 413,792 13.95 Forfeited — — Vested (1) (174,211) 14.58 Unvested at September 30, 2017 621,533 $ 14.48 (1) As of September 30, 2017, recipients of 146,075 shares had elected to defer settlement of the vested restricted stock units in accordance with our Nonqualified Deferred Compensation Plan. Compensation expense associated with unvested restricted stock units is recognized on a straight-line basis over the vesting period. At September 30, 2017, there was approximately $6.5 million of total unrecognized compensation expense related to restricted stock units, which is expected to be recognized over a weighted-average period of 1.8 years. Employee Stock Purchase Plan

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including our outstanding stock options, stock related to unvested restricted stock awards, and common stock issuable pursuant to the ESPP to the extent dilutive. The net loss per share is allocated based on the participation rights of the Class A and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss 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, 2017 September 30, 2016 Class A Class B Class A Class B Numerator Net loss $ (10,467) $ (3,606) $ (9,369) $ (3,522) Denominator Weighted-average common shares outstanding - basic and diluted 31,100,994 10,714,145 29,624,794 11,138,166 Basic and diluted net loss per share $ (0.34) $ (0.34) $ (0.32) $ (0.32) Nine months ended September 30, 2017 September 30, 2016 Class A Class B Class A Class B Numerator Net loss $ (22,255) $ (7,850) $ (26,076) $ (10,385) Denominator Weighted-average common shares outstanding - basic and diluted 30,644,955 10,808,781 29,038,566 11,564,864 Basic and diluted net loss per share $ (0.73) $ (0.73) $ (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, 2017 September 30, 2016 Shares subject to outstanding common stock options 8,336,496 7,589,951 Shares subject to unvested restricted stock awards 176,665 353,335 Shares issuable pursuant to the ESPP 87,265 —

Organization and Significant 15

Organization and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
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, 2016 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. 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, 2017 are not necessarily indicative of the results expected for the full year ending December 31, 2017.
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, health insurance 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.
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Under this ASU, entities are permitted to make an accounting policy election to either estimate forfeitures on share-based payment awards, as required by current guidance, or to recognize forfeitures as they occur in addition to other changes. The guidance became effective for interim and annual periods beginning after December 15, 2016. Effective January 1, 2017, we adopted this standard. We elected to recognize forfeitures on share-based payment awards as they occur. The adoption, along with the remaining provisions of ASU 2016-09, did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new guidance is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period. The new standard must be adopted using a modified retrospective transition method, with the cumulative effect recognized as of the date of initial adoption. Effective January 1, 2017, we adopted this standard. The adoption of this new guidance did not have a material impact on our consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued guidance codified in ASC 606, Revenue Recognition - Revenue from Contracts with Customers (ASU 2014-09), which amends the guidance in former ASC 605, Revenue Recognition . The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has issued several amendments and updates to the new revenue standard, including guidance related to when an entity should recognize revenue gross as a principal or net as an agent and how an entity should identify performance obligations. As amended, ASU 2014-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted for all entities only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We believe the adoption of ASU 2014-09 will require us to recognize revenue from certain of our professional services over time rather than upon completion of the services. We expect this change may result in some acceleration of revenue recognition. We have determined that an agreement to purchase our professional services constitutes an option to purchase services in accordance with ASC 606-10-55-41 rather than an agreement that creates enforceable rights and obligations because of the customer’s contractual right to cancel the unused services. Based on our review, certain of our professional service agreements do not contain a material right and are only accounted for in accordance with ASU 2014-09 when the customer exercises its option to purchase additional goods or services. In the case of agreements where we have determined that the option provides the customer with a material right, we will be required to allocate a portion of the transaction price to the material right. The treatment of customer options under ASU 2014-09 may result in a different allocation of the transaction price than under current guidance. In addition, under current guidance, the amount that is allocated to, and recognized as revenue related to, a delivered service is limited to the amount that is not contingent on completion of the remaining performance obligations. We expect the removal of this limitation on contingent revenue under ASU 2014-09 to result in revenue being recognized earlier for certain contracts. In addition, ASU 2014-09 requires that all incremental costs of obtaining a contract with a customer be recognized as an asset. We expect this requirement will result in an increase in the costs that we capitalize. The guidance also requires that these costs be deferred over a term that is consistent with the transfer of services related to the asset. Based on our preliminary analysis, we believe this term will be approximately three years compared to one year or less under current guidance. Under ASU 2014-09, in addition to recording deferred revenue when the related cash payments are received for noncancellable services, we will record deferred revenue when payments are due in advance of our performance of those services. We expect this change will result in an offsetting increase in accounts receivable and deferred revenue. We are still evaluating the ASU for other potential impacts to our consolidated financial statements. We plan to adopt the guidance as of January 1, 2018 and expect to utilize the modified retrospective transition method. We plan to apply this transition method only to contracts that are not completed as of January 1, 2018. We have a project plan in place guiding our transition that includes the necessary changes to accounting processes, procedures, systems and internal controls. In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting . This ASU clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The ASU is effective prospectively for the annual period ending December 31, 2018 and interim periods within that annual period. Early adoption is permitted. 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.
Stock-based Compensation	The fair value of each option grant and each share issued under the ESPP is estimated on the date of grant using the Black-Scholes option-pricing model. For stock options, expected volatility is based on the historical volatility of our common stock and historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the options. For the ESPP purchase rights, expected volatility is based on the historical volatility of our common stock. The expected term represents the period of time the options and the ESPP purchase rights are expected to be outstanding. For stock options, the expected term is based on the “simplified method” as defined by SEC Staff Accounting Bulletin No. 110 (Topic 14.D.2). 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 expected term for the ESPP purchase rights approximates the offering period. The risk-free interest rate is based on yields on U.S. Treasury STRIPS (Separate Trading of Registered Interest and Principal of Securities) with a maturity similar to the estimated expected term of the options and ESPP purchase rights.

Supplemental Consolidated Bal16

Supplemental Consolidated Balance Sheet and Statement of Operations Information (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 December 31, 2016 Accrued vacation $ 5,826 $ 4,368 Accrued commissions 2,429 2,382 Accrued bonuses 7,642 8,927 Estimated health insurance claims 1,100 1,210 Accrued other liabilities 3,774 3,808 $ 20,771 $ 20,695
Schedule of Other Income and (Expense), net	Other income, net for the three and nine months ended September 30, 2017 and 2016 consisted of (in thousands): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Interest income $ 168 $ 64 $ 388 $ 209 Income from training reimbursement program 207 247 943 910 Other (177) (13) (345) 33 $ 198 $ 298 $ 986 $ 1,152

Marketable Securities (Tables)

Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Schedule of Marketable Securities	At September 30, 2017, marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury debt securities $ 2,888 $ — $ (3) $ 2,885 U.S. corporate debt securities 12,161 1 (14) 12,148 Money market funds 52,027 — — 52,027 $ 67,076 $ 1 $ (17) $ 67,060 Included in cash and cash equivalents $ 52,027 $ — $ — $ 52,027 Included in marketable securities $ 15,049 $ 1 $ (17) $ 15,033 At December 31, 2016, marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury debt securities $ 3,503 $ — $ (5) $ 3,498 U.S. corporate debt securities 7,943 1 (7) 7,937 Money market funds 43,496 — — 43,496 $ 54,942 $ 1 $ (12) $ 54,931 Included in cash and cash equivalents $ 43,496 $ — $ — $ 43,496 Included in marketable securities $ 11,446 $ 1 $ (12) $ 11,435
Schedule of Cash and Cash Equivalents	At September 30, 2017, marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury debt securities $ 2,888 $ — $ (3) $ 2,885 U.S. corporate debt securities 12,161 1 (14) 12,148 Money market funds 52,027 — — 52,027 $ 67,076 $ 1 $ (17) $ 67,060 Included in cash and cash equivalents $ 52,027 $ — $ — $ 52,027 Included in marketable securities $ 15,049 $ 1 $ (17) $ 15,033 At December 31, 2016, marketable securities consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value U.S. treasury debt securities $ 3,503 $ — $ (5) $ 3,498 U.S. corporate debt securities 7,943 1 (7) 7,937 Money market funds 43,496 — — 43,496 $ 54,942 $ 1 $ (12) $ 54,931 Included in cash and cash equivalents $ 43,496 $ — $ — $ 43,496 Included in marketable securities $ 11,446 $ 1 $ (12) $ 11,435
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, 2017, 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, 2017 Less than 12 months 12 months or greater Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. treasury debt securities $ 2,885 $ (3) $ — $ — U.S. corporate debt securities 9,884 (14) — — Total $ 12,769 $ (17) $ — $ —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 Fair Value Measurements as of December 31, 2016 Description Total Level 1 Level 2 Total Level 1 Level 2 Money market funds $ 52,027 $ 52,027 $ — $ 43,496 $ 43,496 $ — U.S. treasury debt securities 2,885 — 2,885 3,498 — 3,498 U.S. corporate debt securities 12,148 — 12,148 7,937 — 7,937 $ 67,060 $ 52,027 $ 15,033 $ 54,931 $ 43,496 $ 11,435 Included in cash and cash equivalents $ 52,027 $ 43,496 Included in marketable securities $ 15,033 $ 11,435

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock-based Compensation Expense	Stock-based compensation expense 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, 2017 2016 2017 2016 Cost of revenue Subscription and support $ 204 $ 122 $ 522 $ 365 Professional services 129 100 329 315 Operating expenses Research and development 601 594 1,566 1,787 Sales and marketing 788 567 2,141 1,471 General and administrative 2,942 2,287 8,642 6,624 Total $ 4,664 $ 3,670 $ 13,200 $ 10,562
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The fair value of our stock options and ESPP purchase rights was estimated assuming no expected dividends and the following weighted-average assumptions: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Stock Options Expected term (in years) 6.1 6.1 6.0 - 6.1 6.0 - 6.1 Risk-free interest rate 1.9% - 2.1% 1.2% - 1.3% 1.9% - 2.1% 1.2% - 1.9% Expected volatility 38.9% - 39.1% 44.4% - 44.6% 38.9% - 43.8% 44.4% - 45.3% ESPP Expected term (in years) 0.5 — 0.5 — Risk-free interest rate 1.2% —% 1.2% — % Expected volatility 28.5% —% 28.5% — %
Schedule of Share-based Payment Award, ESPP, Valuation Assumptions	The fair value of our stock options and ESPP purchase rights was estimated assuming no expected dividends and the following weighted-average assumptions: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Stock Options Expected term (in years) 6.1 6.1 6.0 - 6.1 6.0 - 6.1 Risk-free interest rate 1.9% - 2.1% 1.2% - 1.3% 1.9% - 2.1% 1.2% - 1.9% Expected volatility 38.9% - 39.1% 44.4% - 44.6% 38.9% - 43.8% 44.4% - 45.3% ESPP Expected term (in years) 0.5 — 0.5 — Risk-free interest rate 1.2% —% 1.2% — % Expected volatility 28.5% —% 28.5% — %
Schedule of Stock-Option Activity	The following table summarizes the option activity under the Plans for the nine months ended September 30, 2017: Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 7,532,455 $ 12.22 7.2 $ 19,988 Granted 1,772,353 14.99 Forfeited (279,651) 14.55 Exercised (688,661) 9.68 Outstanding at September 30, 2017 8,336,496 $ 12.95 7.1 $ 65,845 Exercisable at September 30, 2017 4,727,976 $ 11.31 5.9 $ 45,104
Schedule of Restricted Stock Awards	The following table summarizes the restricted stock award activity under the Plan for the nine months ended September 30, 2017: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2016 353,335 $ 13.40 Granted — — Forfeited — — Vested (176,670) 13.40 Unvested at September 30, 2017 176,665 $ 13.40
Schedule of Restricted Stock Units	The following table summarizes the restricted stock unit activity under the Plan for the nine months ended September 30, 2017: Number of Shares Weighted-Average Grant Date Fair Value Unvested at December 31, 2016 381,952 $ 15.11 Granted 413,792 13.95 Forfeited — — Vested (1) (174,211) 14.58 Unvested at September 30, 2017 621,533 $ 14.48 (1) As of September 30, 2017, recipients of 146,075 shares had elected to defer settlement of the vested restricted stock units in accordance with our Nonqualified Deferred Compensation Plan.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 September 30, 2016 Class A Class B Class A Class B Numerator Net loss $ (10,467) $ (3,606) $ (9,369) $ (3,522) Denominator Weighted-average common shares outstanding - basic and diluted 31,100,994 10,714,145 29,624,794 11,138,166 Basic and diluted net loss per share $ (0.34) $ (0.34) $ (0.32) $ (0.32) Nine months ended September 30, 2017 September 30, 2016 Class A Class B Class A Class B Numerator Net loss $ (22,255) $ (7,850) $ (26,076) $ (10,385) Denominator Weighted-average common shares outstanding - basic and diluted 30,644,955 10,808,781 29,038,566 11,564,864 Basic and diluted net loss per share $ (0.73) $ (0.73) $ (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, 2017 September 30, 2016 Shares subject to outstanding common stock options 8,336,496 7,589,951 Shares subject to unvested restricted stock awards 176,665 353,335 Shares issuable pursuant to the ESPP 87,265 —

Supplemental Consolidated Bal21

Supplemental Consolidated Balance Sheet and Statement of Operations Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accrued Liabilities and Other Liabilities [Abstract]
Accrued vacation	$ 5,826	$ 4,368
Accrued commissions	2,429	2,382
Accrued bonuses	7,642	8,927
Estimated health insurance claims	1,100	1,210
Accrued other liabilities	3,774	3,808
Accrued expenses and other current liabilities	$ 20,771	$ 20,695

Supplemental Consolidated Bal22

Supplemental Consolidated Balance Sheet and Statement of Operations Information - Other Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Nonoperating Income (Expense) [Abstract]
Interest income	$ 168	$ 64	$ 388	$ 209
Income from training reimbursement program	207	247	943	910
Other	(177)	(13)	(345)	33
Nonoperating income (expense)	$ 198	$ 298	$ 986	$ 1,152

Marketable Securities - Schedul

Marketable Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 62,718	$ 59,986	$ 51,281	$ 42,842	$ 39,885	$ 58,750
Schedule of Available-for-sale Securities [Line Items]
Unrealized Gains	1		1
Unrealized Losses	(17)		(12)
Cash and cash equivalents and available-for-sale securities, amortized cost	67,076		54,942
Cash and cash equivalents and available-for-sale securities	67,060		54,931
U.S. treasury debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,888		3,503
Unrealized Gains	0		0
Unrealized Losses	(3)		(5)
Aggregate Fair Value	2,885		3,498
U.S. corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	12,161		7,943
Unrealized Gains	1		1
Unrealized Losses	(14)		(7)
Aggregate Fair Value	12,148		7,937
Money market funds
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	52,027		43,496
Cash and cash equivalents, aggregate fair value	52,027		43,496
Cash and cash equivalents | Money market funds
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	52,027		43,496
Cash and cash equivalents, aggregate fair value	52,027		43,496
Marketable securities | U.S. corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	15,049		11,446
Unrealized Gains	1		1
Unrealized Losses	(17)		(12)
Aggregate Fair Value	$ 15,033		$ 11,435

Marketable Securities - Continu

Marketable Securities - Continuous Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2017USD ($)
Fair Value
Less than 12 months	$ 12,769
12 months or greater	0
Unrealized Loss
Less than 12 months	(17)
12 months or greater	0
U.S. treasury debt securities
Fair Value
Less than 12 months	2,885
12 months or greater	0
Unrealized Loss
Less than 12 months	(3)
12 months or greater	0
U.S. corporate debt securities
Fair Value
Less than 12 months	9,884
12 months or greater	0
Unrealized Loss
Less than 12 months	(14)
12 months or greater	$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
U.S. treasury debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities - domestic debt securities	$ 2,885	$ 3,498
U.S. corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities - domestic debt securities	12,148	7,937
U.S. corporate debt securities | Marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities - domestic debt securities	15,033	11,435
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents - money market funds	52,027	43,496
Money market funds | Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents - money market funds	52,027	43,496
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	67,060	54,931
Recurring | Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents - money market funds	52,027	43,496
Recurring | Marketable securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities - domestic debt securities	15,033	11,435
Recurring | U.S. treasury debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities - domestic debt securities	2,885	3,498
Recurring | U.S. corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities - domestic debt securities	12,148	7,937
Recurring | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents - money market funds	52,027	43,496
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	52,027	43,496
Recurring | Level 1 | U.S. treasury debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities - domestic debt securities	0	0
Recurring | Level 1 | U.S. corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities - domestic debt securities	0	0
Recurring | Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents - money market funds	52,027	43,496
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured at fair value	15,033	11,435
Recurring | Level 2 | U.S. treasury debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities - domestic debt securities	2,885	3,498
Recurring | Level 2 | U.S. corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities - domestic debt securities	12,148	7,937
Recurring | Level 2 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents - money market funds	$ 0	$ 0

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($)	Jun. 13, 2017	Sep. 30, 2017
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock, percentage of fair market value	85.00%
Stock purchase offering period	6 months
Employee Stock Purchase Plan | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant		5,000,000
Maximum stock purchase value per employee		$ 12,500
Shares purchased during period		0
Shares distributed during period		0
2014 Equity Incentive Plan | Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant		2,271,466

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 4,664	$ 3,670	$ 13,200	$ 10,562
Subscription and support
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	204	122	522	365
Professional services
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	129	100	329	315
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	601	594	1,566	1,787
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	788	567	2,141	1,471
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 2,942	$ 2,287	$ 8,642	$ 6,624

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017Rate	Sep. 30, 2016Rate	Sep. 30, 2017Rate	Sep. 30, 2016Rate
Employee stock options
Weighted-Average Assumptions
Expected term (in years)	6 years 1 month 6 days	6 years 1 month 6 days
Risk-free interest rate, min (as percent)	1.90%	1.20%	1.90%	1.20%
Risk-free interest rate, max (as percent)	2.10%	1.30%	2.10%	1.90%
Expected volatility, min (as percent)	38.90%	44.40%	38.90%	44.40%
Expected volatility, max (as percent)	39.10%	44.60%	43.80%	45.30%
Employee stock options | Minimum
Weighted-Average Assumptions
Expected term (in years)			6 years	6 years
Employee stock options | Maximum
Weighted-Average Assumptions
Expected term (in years)			6 years 1 month 6 days	6 years 1 month 6 days
Employee Stock Purchase Plan
Weighted-Average Assumptions
Expected term (in years)	6 months		6 months
Risk-free interest rate (as percent)	1.20%	0.00%	1.20%	0.00%
Expected volatility (as percent)	28.50%	0.00%	28.50%	0.00%

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Options (in shares):
Outstanding beginning of the period (in shares)	7,532,455
Granted (in shares)	1,772,353
Forfeited (in shares)	(279,651)
Exercised (in shares)	(688,661)
Outstanding end of the period (in shares)	8,336,496		7,532,455
Exercisable at end of the period (in shares)	4,727,976
Weighted-Average Exercise Price (in dollars per share):
Outstanding beginning of the period (in dollars per share)	$ 12.22
Granted (in dollars per share)	14.99
Forfeited (in dollars per share)	14.55
Exercised (in dollars per share)	9.68
Outstanding end of the period (in dollars per share)	12.95		$ 12.22
Exercisable at the end of the period (in dollars per share)	$ 11.31
Outstanding, weighted-average remaining contractual term (years)	7 years 1 month 6 days		7 years 2 months 12 days
Exercisable, weighted-average remaining contractual term (years)	5 years 10 months 24 days
Outstanding, aggregate intrinsic value	$ 65,845		$ 19,988
Exercisable, aggregate intrinsic value	45,104
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options exercised intrinsic value	$ 5,500	$ 3,400
Options grants in period, weighted average grant date fair value (in dollars per share)	$ 6.41	$ 6.78
Options vested in period fair value	$ 7,700	$ 6,900
Options unrecognized compensation expense	$ 20,500
Employee stock options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options unrecognized compensation expense, period for recognition (years)	2 years 6 months
Class A Common Stock | Employee stock options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Expiration period (years)	10 years
Minimum | Class A Common Stock | Employee stock options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Award vesting period (years)	3 years
Maximum | Class A Common Stock | Employee stock options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Award vesting period (years)	4 years

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Awards (Details) - Restricted stock awards - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested in period, fair value	$ 2.4	$ 3.3
Number of Shares (in shares)
Unvested at beginning of period (in shares)	353,335
Granted (in shares)	0
Forfeited (in shares)	0
Vested (in shares)	(176,670)
Unvested at end of period (in shares)	176,665
Weighted- Average Grant Date Fair Value (in dollars per share)
Unvested at beginning of period (in dollars per share)	$ 13.40
Granted (in dollars per share)	0
Forfeited (in dollars per share)	0
Vested (in dollars per share)	13.40
Unvested at end of period (in dollars per share)	$ 13.40
Unrecognized compensation expense	$ 0.8
Unrecognized compensation expense, period for recognition (years)	4 months 24 days
Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (years)	3 years

Stock-Based Compensation - Re31

Stock-Based Compensation - Restricted Stock Units (Details) - Restricted stock units - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested in period, fair value	$ 2,500,000	$ 0
Number of Shares (in shares)
Unvested at beginning of period (in shares)	381,952
Granted (in shares)	413,792
Forfeited (in shares)	0
Vested (in shares)	(174,211)
Unvested at end of period (in shares)	621,533
Weighted- Average Grant Date Fair Value (in dollars per share)
Unvested at beginning of period (in dollars per share)	$ 15.11
Granted (in dollars per share)	13.95
Forfeited (in dollars per share)	0
Vested (in dollars per share)	14.58
Unvested at end of period (in dollars per share)	$ 14.48
Number of vested shares recipients elected to defer settlement (in shares)	146,075
Unrecognized compensation expense	$ 6,500,000
Unrecognized compensation expense, period for recognition (years)	1 year 9 months 18 days
Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (years)	3 years
Board of Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (years)	1 year

Stock-Based Compensation - Empl

Stock-Based Compensation - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 0.2
Unrecognized compensation expense, period for recognition (years)	3 months 18 days

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator
Net loss	$ (14,073)	$ (12,891)	$ (30,105)	$ (36,461)
Denominator
Weighted-average common shares outstanding - basic and diluted (in shares)	41,815,139	40,762,960	41,453,736	40,603,430
Basic and diluted net loss per share (in dollars per share)	$ (0.34)	$ (0.32)	$ (0.73)	$ (0.90)
Class A Common Stock
Numerator
Net loss	$ (10,467)	$ (9,369)	$ (22,255)	$ (26,076)
Denominator
Weighted-average common shares outstanding - basic and diluted (in shares)	31,100,994	29,624,794	30,644,955	29,038,566
Basic and diluted net loss per share (in dollars per share)	$ (0.34)	$ (0.32)	$ (0.73)	$ (0.90)
Class B Common Stock
Numerator
Net loss	$ (3,606)	$ (3,522)	$ (7,850)	$ (10,385)
Denominator
Weighted-average common shares outstanding - basic and diluted (in shares)	10,714,145	11,138,166	10,808,781	11,564,864
Basic and diluted net loss per share (in dollars per share)	$ (0.34)	$ (0.32)	$ (0.73)	$ (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, 2017	Sep. 30, 2016
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)	8,336,496	7,589,951
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)	176,665	353,335
Shares issuable pursuant to the ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	87,265	0