Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 23, 2015 | Jul. 23, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TUBE | ||
Entity Registrant Name | TUBEMOGUL INC | ||
Entity Central Index Key | 1449278 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 30,268,482 | ||
Entity Public Float | $82.50 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $46,592 | $19,475 |
Accounts receivable, net of allowance for doubtful accounts of $714 and $1,369, respectively | 88,457 | 46,920 |
Prepaid expenses and other current assets | 2,322 | 1,420 |
Total current assets | 137,371 | 67,815 |
Property, equipment and software, net | 3,902 | 1,467 |
Deferred tax assets | 287 | 468 |
Restricted cash | 742 | 334 |
Other assets | 405 | 531 |
Total assets | 142,707 | 70,615 |
Current liabilities: | ||
Accounts payable | 19,087 | 4,032 |
Accrued liabilities | 50,438 | 34,414 |
Convertible note | 419 | |
Current portion of note payable, net of discount | 1,362 | 1,416 |
Convertible preferred stock warrant liability | 0 | 684 |
Deferred revenue | 302 | 467 |
Deferred tax liabilities | 276 | 468 |
Total current liabilities | 71,465 | 41,900 |
Deferred rent | 601 | 97 |
Note payable, net of current portion and discount | 1,363 | |
Total liabilities | 72,066 | 43,360 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Common stock; $0.001 par value; 62,000,000 and 200,000,000 shares authorized as of December 31, 2013 and 2014, respectively; 6,674,757 and 29,837,892 shares issued and outstanding as of December 31, 2013 and 2014, respectively | 30 | 7 |
Additional paid-in capital | 94,013 | 46,116 |
Accumulated deficit | -23,285 | -18,841 |
Accumulated other comprehensive loss | -117 | -43 |
Total stockholders’ equity | 70,641 | 27,255 |
Total liabilities and stockholders’ equity | 142,707 | 70,615 |
Series A | ||
Stockholders’ equity: | ||
Convertible preferred stock | 2 | |
Series A-1 | ||
Stockholders’ equity: | ||
Convertible preferred stock | 4 | |
Series B | ||
Stockholders’ equity: | ||
Convertible preferred stock | 5 | |
Series C | ||
Stockholders’ equity: | ||
Convertible preferred stock | 5 | |
Preferred stock class undefined | ||
Stockholders’ equity: | ||
Convertible preferred stock |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Net of allowance for doubtful accounts | $1,369 | $714 |
Convertible preferred stock, shares authorized | 10,000,000 | 93,174,947 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 62,000,000 |
Common stock, shares issued | 29,837,892 | 6,674,757 |
Common stock, shares outstanding | 29,837,892 | 6,674,757 |
Series A | ||
Convertible preferred stock, par value | $0.00 | $0.00 |
Convertible preferred stock, shares authorized | 0 | 4,177,390 |
Convertible preferred stock, shares issued | 0 | 2,088,704 |
Convertible preferred stock, shares outstanding | 0 | 2,088,704 |
Series A-1 | ||
Convertible preferred stock, par value | $0.00 | $0.00 |
Convertible preferred stock, shares authorized | 0 | 7,847,028 |
Convertible preferred stock, shares issued | 0 | 3,846,357 |
Convertible preferred stock, shares outstanding | 0 | 3,846,357 |
Series B | ||
Convertible preferred stock, par value | $0.00 | $0.00 |
Convertible preferred stock, shares authorized | 0 | 10,298,658 |
Convertible preferred stock, shares issued | 0 | 5,149,330 |
Convertible preferred stock, shares outstanding | 0 | 5,149,330 |
Series C | ||
Convertible preferred stock, par value | $0.00 | $0.00 |
Convertible preferred stock, shares authorized | 0 | 8,851,871 |
Convertible preferred stock, shares issued | 0 | 4,425,939 |
Convertible preferred stock, shares outstanding | 0 | 4,425,939 |
Preferred stock class undefined | ||
Convertible preferred stock, par value | $0.00 | $0.00 |
Convertible preferred stock, shares authorized | 10,000,000 | 0 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||
Total revenue | $114,243 | $57,214 | $34,159 |
Cost of revenue | 33,941 | 19,698 | 16,374 |
Gross profit | 80,302 | 37,516 | 17,785 |
Operating expenses: | |||
Research and development | 22,142 | 11,837 | 7,364 |
Sales and marketing | 38,133 | 21,378 | 10,384 |
General and administrative | 21,615 | 10,477 | 4,931 |
Total operating expenses | 81,890 | 43,692 | 22,679 |
Gain on sale of InPlay | 1,950 | ||
Loss from operations | -1,588 | -6,176 | -2,944 |
Other (expense) income, net: | |||
Loss on extinguishment of convertible notes | -538 | ||
Interest expense, net | -216 | -169 | -232 |
Change in fair value of convertible preferred stock warrant liability | 168 | -388 | -154 |
Foreign exchange loss | -1,987 | -618 | -141 |
Other expense, net | -2,573 | -1,175 | -527 |
Net loss before income taxes | -4,161 | -7,351 | -3,471 |
Provision for income taxes | -283 | -60 | -94 |
Net loss | -4,444 | -7,411 | -3,565 |
Basic and diluted net loss per share attributable to common stockholders | ($0.22) | ($1.12) | ($0.55) |
Basic and diluted weighted-average shares used to compute net loss per share attributable to common stockholders | 19,928,003 | 6,612,621 | 6,433,819 |
Platform Direct | |||
Revenue: | |||
Total revenue | 49,231 | 19,331 | 5,433 |
Platform Services | |||
Revenue: | |||
Total revenue | $65,012 | $37,883 | $28,726 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | ($4,444) | ($7,411) | ($3,565) |
Other comprehensive loss: | |||
Foreign currency translation adjustments | -74 | -42 | -1 |
Comprehensive loss | ($4,518) | ($7,453) | ($3,566) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Series A Convertible Preferred Stock | Series A-1 Convertible Preferred Stock | Series B Convertible Preferred Stock | Series C Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated other comprehensive loss |
In Thousands, except Share data | |||||||||
Balances at Dec. 31, 2011 | $8,430 | $2 | $4 | $5 | $7 | $16,277 | ($7,865) | ||
Balances, Shares at Dec. 31, 2011 | 2,088,704 | 3,846,357 | 5,149,330 | 6,381,170 | |||||
Issuance of common stock upon exercise of options, Shares | 195,808 | ||||||||
Issuance of common stock upon exercise of options | 51 | 51 | |||||||
Stock-based compensation expense | 430 | 430 | |||||||
Issuance of Series C convertible preferred stock net of issuance costs, Shares | 2,740,567 | ||||||||
Issuance of Series C convertible preferred stock net of issuance costs | 17,651 | 3 | 17,648 | ||||||
Issuance of stock warrants for common stock to bank related to loan facility | 13 | 13 | |||||||
Unrealized exchange loss | -1 | -1 | |||||||
Net loss | -3,565 | -3,565 | |||||||
Ending Balances at Dec. 31, 2012 | 23,009 | 2 | 4 | 5 | 3 | 7 | 34,419 | -11,430 | -1 |
Ending Balances, Shares at Dec. 31, 2012 | 2,088,704 | 3,846,357 | 5,149,330 | 2,740,567 | 6,576,978 | ||||
Issuance of common stock upon exercise of options, Shares | 97,779 | ||||||||
Issuance of common stock upon exercise of options | 25 | 25 | |||||||
Stock-based compensation expense | 761 | 761 | |||||||
Issuance of Series C convertible preferred stock net of issuance costs, Shares | 1,685,372 | ||||||||
Issuance of Series C convertible preferred stock net of issuance costs | 10,913 | 2 | 10,911 | ||||||
Unrealized exchange loss | -42 | -42 | |||||||
Net loss | -7,411 | -7,411 | |||||||
Ending Balances at Dec. 31, 2013 | 27,255 | 2 | 4 | 5 | 5 | 7 | 46,116 | -18,841 | -43 |
Ending Balances, Shares at Dec. 31, 2013 | 2,088,704 | 3,846,357 | 5,149,330 | 4,425,939 | 6,674,757 | ||||
Issuance of common stock upon exercise of options, Shares | 372,022 | 372,025 | |||||||
Issuance of common stock upon exercise of options | 379 | 379 | |||||||
Conversion of convertible preferred stock to common stock, Shares | -2,088,704 | -3,846,357 | -5,149,330 | -4,425,939 | 15,510,330 | ||||
Conversion of convertible preferred stock to common stock | -2 | -4 | -5 | -5 | 16 | ||||
Cashless exercise of stock warrants to common stock, Shares | 93,280 | ||||||||
Cashless exercise of stock warrants to common stock | 516 | 516 | |||||||
Issuance of common stock from initial public offering, net of issuance costs, Shares | 7,187,500 | ||||||||
Issuance of common stock from initial public offering, net of issuance costs | 43,442 | 7 | 43,435 | ||||||
Stock-based compensation expense | 3,543 | 3,543 | |||||||
Unrealized exchange loss | -74 | -74 | |||||||
Excess tax benefit | 24 | 24 | |||||||
Net loss | -4,444 | -4,444 | |||||||
Ending Balances at Dec. 31, 2014 | $70,641 | $30 | $94,013 | ($23,285) | ($117) | ||||
Ending Balances, Shares at Dec. 31, 2014 | 29,837,892 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Series C Convertible Preferred Stock | ||
Issuance of stock, net issuance cost | $0 | $93,307 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($4,444) | ($7,411) | ($3,565) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 864 | 322 | 89 |
Amortization of premium on certificates of deposits | 8 | ||
Amortization of debt issuance costs | 22 | ||
Loss (gain) on change in value of convertible preferred stock warrant liability | -168 | 388 | 154 |
Loss on disposal of equipment | 6 | 15 | |
Provision for doubtful accounts | 903 | 539 | 191 |
Provision for credit memos | 1,875 | ||
Stock-based compensation expense | 3,543 | 761 | 430 |
Gain on sale of InPlay | -1,950 | ||
Deferred income taxes | -11 | ||
Loss on extinguishment of convertible notes | 538 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | -44,315 | -24,341 | -17,258 |
Prepaid expenses and other current assets | -902 | -1,100 | -133 |
Payments of costs related to initial public offering | -3,349 | ||
Other assets | 126 | -192 | -43 |
Accounts payable | 15,055 | -637 | 1,430 |
Accrued liabilities | 16,024 | 23,423 | 8,741 |
Deferred rent | 504 | 55 | -99 |
Deferred revenue | -165 | 162 | 39 |
Deferred offering costs | -129 | ||
Net cash used in operating activities | -13,922 | -8,154 | -11,929 |
Cash flows from investing activities: | |||
Increase in restricted cash | -408 | -334 | |
Proceeds from sale of InPlay | 1,950 | ||
Proceeds from certificates of deposit maturing | 2,945 | ||
Purchases of property, equipment and software | -3,299 | -1,439 | -210 |
Net cash provided by (used in) investing activities | -3,707 | -1,773 | 4,685 |
Cash flows from financing activities: | |||
Proceeds from issuance of Series C preferred stock, net of issuance cost | 10,913 | 17,651 | |
Proceeds from notes payable | 4,250 | ||
Repayments on notes payable | -1,417 | -1,351 | -736 |
Proceeds from line of credit | 11,800 | 100 | |
Repayment of line of credit | -11,800 | -100 | |
Proceeds from issuance of convertible note | 187 | 232 | |
Repayment of convertible note | -957 | ||
Proceeds from options exercised | 379 | 25 | 51 |
Excess tax benefit | 24 | ||
Net cash provided by financing activities | 44,820 | 9,774 | 21,448 |
Effect of exchange rate changes on cash and cash equivalents | -74 | -42 | -1 |
Net increase (decrease) in cash and cash equivalents | 27,117 | -195 | 14,203 |
Cash and cash equivalents, beginning of year | 19,475 | 19,670 | 5,467 |
Cash and cash equivalents, end of year | 46,592 | 19,475 | 19,670 |
Supplemental disclosures: | |||
Cash paid for income taxes | 97 | 1 | 1 |
Cash paid for interest | 226 | 170 | 132 |
Warrants issued as debt issuance cost | 13 | ||
Conversion of preferred stock warrants to common stock warrants | 516 | ||
Cashless exercise of stock warrants to common stock | 82 | ||
Common Stock | |||
Cash flows from financing activities: | |||
Proceeds from issuance of common stock in initial public offering, net of underwriting discounts and commission | 46,791 | ||
Supplemental disclosures: | |||
Conversion of convertible preferred stock to common stock | 16 | ||
Accounts Payable and Accrued Liabilities | |||
Supplemental disclosures: | |||
Warrants issued as debt issuance cost | $126 |
The_Company_and_its_Significan
The Company and its Significant Accounting Policies | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
The Company and its Significant Accounting Policies | 1. The Company and its Significant Accounting Policies | |||||||||||||||
The Company | ||||||||||||||||
TubeMogul, Inc., a Delaware corporation (the Company), is an enterprise software company for digital branding. The Company’s customers include many of the world’s largest brands and their media agencies. | ||||||||||||||||
The Company’s headquarters are in Emeryville, California and it has offices in Chicago, Detroit, Kiev, London, Los Angeles, New York, Paris, Shanghai, Singapore, Sydney, Tokyo, and Toronto. | ||||||||||||||||
On July 23, 2014, the Company consummated its initial public offering (IPO) of 7,187,500 shares of common stock at an offering price of $7 per share. The shares sold in the offering included 937,500 shares sold by the Company pursuant to the underwriters’ full exercise of their over-allotment option. The net proceeds to the Company from the offering were $46.8 million after deducting underwriting discounts and commissions, and before deducting total expenses in connection with the offering of $3.3 million. | ||||||||||||||||
Use of Estimates | ||||||||||||||||
The preparation of the financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these consolidated financial statements include allowances for doubtful accounts and credit memos, useful lives for depreciation and amortization, loss contingencies, valuation of deferred tax assets, provisions for uncertain tax positions, capitalization of software costs and assumptions used for valuation of stock-based compensation and convertible preferred stock warrant liability. Actual results could differ from those and other estimates. | ||||||||||||||||
Principles of Consolidation and Basis of Presentation | ||||||||||||||||
These consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | ||||||||||||||||
Revenue Recognition and Deferred Revenue | ||||||||||||||||
The Company recognizes revenue related to the utilization of its advertising platform. Revenue is recognized when persuasive evidence of an arrangement exists, service has been provided to the customer, collection of the fees is reasonably assured, and fees are fixed or determinable. Arrangements with customers do not provide the customer with the right to take possession of the software or platform at any time. The Company generates revenue from its platform through its Platform Direct and Platform Services offerings. Revenue for both Platform Direct and Platform Services is recognized when the advertisement is displayed. The Company’s arrangements are cancellable by the customer as to any unfulfilled portion of a campaign without penalty. Media is purchased on the Company’s platform on a real-time basis and purchasing ceases upon cancellation. For the Company’s Platform Services arrangements once the advertising is delivered in accordance with the terms of the insertion order, the related amounts earned for such advertising delivery are non-refundable. | ||||||||||||||||
The Company’s Platform Direct arrangements are evidenced by signed contracts. The Platform Services arrangements are evidenced through direct insertion orders. Revenue is recognized during the period in which the advertising is delivered. The Company also maintains processes to determine the collectability of amounts due from customers. To the extent any of the revenue recognition criteria are not met, the Company defers revenue. | ||||||||||||||||
Amounts that have been invoiced for services are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria outlined above have been met. In instances where customers prepay, the Company will defer recognition of revenue until the criteria outlined above are met and actual ads have been delivered during the period based on the terms specified in the agreement with the customer. | ||||||||||||||||
In accordance with ASC Topic 605, Revenue Recognition, paragraph 45-1, the Company recognizes revenue on a gross or net basis for each model based on its determination as to whether the Company is acting as the principal in the revenue generation process or as an agent. | ||||||||||||||||
Indicators that an entity is acting as a principal include: (a) the entity has the primary responsibility (primary obligor) for providing the goods or services to the customer or for fulfilling the order; (b) the entity has inventory risk before or after the customer order; (c) the entity has latitude in establishing prices, either directly or indirectly; and (d) the entity bears the customer’s credit risk for the amount receivable from the customer. | ||||||||||||||||
Indicators that an entity is acting as an agent exist when it does not have exposure to the significant risks and rewards associated with the sale of goods or the rendering of services. One key feature indicating that an entity is acting as an agent is that the amount the entity earns is predetermined, being either a fixed fee per transaction or a stated percentage of the amount billed to the customer. | ||||||||||||||||
Platform Direct — Platform Direct provides customers with self-serve capabilities for real-time media buying, serving, targeting, optimization and brand measurement. The Company enters into contracts with customers under which fees earned by the Company are based on a utilization fee that is a percentage of media spend through the platform as well as fees for additional features offered through the Company’s platform. These features are delivered concurrently with the related advertising. Due to the fact that the features are delivered concurrently, the Company does not allocate revenue between the two elements. | ||||||||||||||||
The Company recognizes revenue for Platform Direct on a net basis primarily based on the Company’s determination that it is not deemed to be the primary obligor, does not have inventory risk as the customer chooses the inventory to purchase on a real-time basis, the actual cost of the campaign is determined by the customer through the real-time bidding process, through management of the campaign the customer can define supplier preferences or specific suppliers from a list the Company maintains, and the amount earned by the Company is fixed based on a percentage of the media spend of a customer’s campaign. | ||||||||||||||||
Platform Services — Platform Services provide customers the opportunity to utilize the Company’s platform on a managed service basis, whereby the Company delivers digital video advertisements based upon a pre-agreed set of fixed objectives with an advertiser or agency. The Company enters into customer agreements through discrete binding insertion orders with fixed price commitments which are determined prior to the launch of an advertising campaign. | ||||||||||||||||
For Platform Services, the Company recognizes revenue on a gross basis primarily based on the Company’s determination that it is subject to the risk of fluctuating costs from its media vendors, has latitude in establishing prices with its customer, has discretion in selecting media vendors when fulfilling a customer’s campaign, and has credit risks. | ||||||||||||||||
Cost of Revenue | ||||||||||||||||
Cost of revenue is comprised primarily of media costs. Media costs consist of advertising impressions the Company purchases from sources of advertising inventory in connection with its Platform Services offering. The Company typically pays for these impressions on a cost per thousand impression (CPM) basis. Cost of revenue also includes technical infrastructure costs which include the cost of internal and third-party servers and related services, internet access costs and amortization of internal use software development costs on revenue-producing technologies. | ||||||||||||||||
Capitalized Internal-Use Software Development Costs | ||||||||||||||||
For web site development costs and development costs related to the Company’s platform, the Company capitalizes qualifying computer software costs which are incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred to research and development. The Company capitalizes costs when preliminary efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and used as intended. Costs incurred for enhancements that are expected to result in additional material functionality are capitalized. The Company capitalized $636 and $523 in internal-use software development costs related to platform enhancement and website development cost during the years ended December 31, 2013 and 2014. These costs are included in property, equipment and software, net on the consolidated balance sheets. Amortization commences when the website or software for internal use is ready for its intended use and the amortization period is the estimated useful life of the related asset, which is generally three years. Costs for research and development efforts have been expensed as incurred and relate primarily to payroll costs incurred in the development of the platform. | ||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||
The Company considers all highly liquid investments having original maturities of three months or less at the date of purchase to be cash equivalents. The Company’s cash equivalents consist of short-term money market instruments held at reputable financial institutions. Amounts held on deposit at financial institutions may exceed Federal Deposit Insurance Corporation (FDIC) insured limits. To date, the Company has not experienced any losses on such deposits. | ||||||||||||||||
Restricted Cash | ||||||||||||||||
Restricted cash at December 31, 2013 and December 31, 2014 represents cash restricted for the Company’s irrevocable standby letters of credit in the amount of $334 and $742, respectively for the benefit of certain of the Company’s real property lessors. | ||||||||||||||||
Accounts Receivable | ||||||||||||||||
Accounts receivable are stated at net realizable value. The Company provides an allowance for doubtful accounts based on management’s evaluation of outstanding accounts receivable. The Company maintains reserves for potential credit losses on customer accounts when deemed necessary. The Company analyzes specific accounts receivable, historical bad debts, customer concentrations, current economic trends, and changes in the customer payment terms when evaluating the adequacy of the allowance for bad debts. Accounts receivable are written off when no future collection is possible. | ||||||||||||||||
Many of the Company’s contracts with advertising agencies provide that if the brand (i.e., the agency’s customer) does not pay the agency, the agency is not liable to the Company and the Company must seek payment from the brand. Accordingly, the Company considers the creditworthiness of the brand in establishing its allowance for doubtful accounts. However, since inception, the Company has not had to initiate collection efforts directly with any brands where the contract was with an advertising agency. | ||||||||||||||||
The following table presents the changes in the allowance for doubtful accounts: | ||||||||||||||||
Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
Balance, beginning of year | $ | (200 | ) | $ | (350 | ) | $ | (714 | ) | |||||||
Additions to allowance | (191 | ) | (539 | ) | (903 | ) | ||||||||||
Write offs, net of recoveries | 41 | 175 | 248 | |||||||||||||
Balance, end of year | $ | (350 | ) | $ | (714 | ) | $ | (1,369 | ) | |||||||
Beginning in Q1 2014 the Company established a reserve for credit memos. On a quarterly basis, the amount of revenue that is reserved for credit memos is calculated based on the Company’s historical trends and data specific to each reporting period. The Company reviews the actual credit memos issued in prior quarters as they relate to prior periods and establishes a rate at which credit memos effect prior periods. The Company then applies the established rate to the current period revenue as a basis for estimating future credit memos. For the years ended December 31, 2012 and 2013, the Company did not have a credit memo reserve as the amounts of credit memos had been historically insignificant. | ||||||||||||||||
The following table presents the changes in the allowance for credit memos: | ||||||||||||||||
Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | ||||||||||||||||
Balance, beginning of year | $ | — | ||||||||||||||
Additions to allowance | (1,875 | ) | ||||||||||||||
Write offs, net of recoveries | 1,415 | |||||||||||||||
Balance, end of year | $ | (460 | ) | |||||||||||||
Property, Equipment and Software, net | ||||||||||||||||
Property, equipment and software, net are carried at cost and are depreciated on the straight-line basis over their estimated useful lives of three to seven years. Repairs and maintenance are charged to expense as incurred, and improvements are capitalized. When the assets are sold or retired or otherwise disposed of, their cost and related accumulated depreciation and amortization are removed from the accounts with the resulting gain or loss reflected as an operating item in the accompanying consolidated statements of operations. | ||||||||||||||||
Leasehold improvements are amortized on a straight-line basis over the remaining term of the lease, or the useful life of the assets, whichever is shorter. | ||||||||||||||||
Construction in process mainly consists of leasehold improvements and furniture at the Company’s offices under construction, as well as server equipment that has not been placed in service as of December 31, 2014. Upon completion of construction, the assets will be depreciated over the shorter of their useful lives or the remaining lease term. Upon commencement of the use of the server, it will be depreciated over the useful life of the server, which will be determined upon commencement of the use. | ||||||||||||||||
Fair Value Measurement and Financial Instruments | ||||||||||||||||
The Company measures the fair value of its financial instruments in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Fair Value Measurements. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. In determining fair values of all reported assets and liabilities that represent financial instruments, the Company uses the carrying market values of such amounts. The provision establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. | ||||||||||||||||
Unobservable inputs are inputs that reflect the Company’s assumptions as to what market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: | ||||||||||||||||
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. | ||||||||||||||||
Level 2 — Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | ||||||||||||||||
Level 3 — Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. | ||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities at December 31, 2013 and December 31, 2014, measured at fair value on a recurring basis: | ||||||||||||||||
Financial Instruments at Fair Value as of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 19,475 | $ | — | $ | — | $ | 19,475 | ||||||||
Liability: | ||||||||||||||||
Warrant Liability | $ | — | $ | — | $ | 684 | $ | 684 | ||||||||
Financial Instruments at Fair Value as of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 46,592 | $ | — | $ | — | $ | 46,592 | ||||||||
In fiscal year 2010, the Company issued a Series A-1 preferred stock warrant that contained a price protection clause that provided that the exercise price of the warrants was to be adjusted downwards upon the Company issuing Additional Stock (as defined in the warrant agreement) at more favorable pricing. As a result of this price protection clause, the Company determined that the warrant was not considered indexed to the Company’s own stock and as a result recorded the warrant as a liability measured at fair value at the time of issuance. Prior to the conversion of all Company preferred stock as a result of the IPO, the Company recorded “mark-to-market” adjustments each reporting period under other income expense, net. As the warrant’s fair value is based on significant inputs that were not observable in the market, they were categorized as Level 3. Changes in warrant liability (see Note 4) consisted of the following during: | ||||||||||||||||
Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2014 | |||||||||||||||
Balance, beginning of year | $ | 296 | $ | 684 | ||||||||||||
Change in fair value of convertible preferred stock warrant liability | 388 | (168 | ) | |||||||||||||
Conversion of preferred stock warrants to common stock warrants | — | (516 | ) | |||||||||||||
Balance, end of year | $ | 684 | $ | — | ||||||||||||
Since all carrying amounts approximate fair value, no other comprehensive income or loss has been recognized. There were no sales, purchases, settlements, or other transfers in or out of Level 3 liabilities. | ||||||||||||||||
Other financial instruments not measured at fair value on the accompanying consolidated balance sheets at December 31, 2013 and December 31, 2014, but which require disclosure of their fair values include accounts receivable, accounts payable, accrued expenses and debt. The estimated fair values of such instruments at December 31, 2013 and December 31, 2014 approximated their carrying values due to being short term in nature. The fair values of all of these instruments are categorized as Level 2 in the fair value hierarchy. | ||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s convertible preferred stock warrant: | ||||||||||||||||
Fair Value | Fair Value | Significant | ||||||||||||||
at December 31, | December 31, | Valuation | unobservable | |||||||||||||
2013 | 2014 | technique | input | |||||||||||||
Convertible preferred warrant liability | $ | 684 | $ | — | Monte Carlo Simulation | Value of underlying | ||||||||||
Series A-1 preferred stock, volatility, and expected term. | ||||||||||||||||
Sensitivity to Changes in Significant Unobservable Inputs | ||||||||||||||||
The significant unobservable inputs used in the fair measurement of the warrant are the volatility of the underlying stock value, expected term, and the value of the Company’s Series A-1 preferred stock. Significant increases (decreases) in these unobservable inputs in isolation could have resulted in a significantly different fair value measurement. | ||||||||||||||||
Income Taxes | ||||||||||||||||
The Company accounts for income taxes in accordance with FASB ASC Topic 740, Income Taxes, under which deferred tax liabilities and assets are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss (NOL) and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce deferred tax assets to the net amount that is more likely than not to be realized. | ||||||||||||||||
The Company utilizes a two-step approach to evaluate tax positions. Recognition, step one, requires evaluation of the tax position to determine if based solely on technical merits it is more likely than not (MLTN) to be sustained upon examination. The MLTN standard is met when the likelihood of occurrence is greater than 50%. Measurement, step two, is addressed only if step one is satisfied. In step two, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, which is MLTN to be realized upon ultimate settlement with tax authorities. If a position does not meet the MLTN threshold for recognition in step one, no benefit is recorded until the first subsequent period in which the MLTN standard is met, the issue is resolved with the tax authority, or the statute of limitations expires. Positions previously recognized are derecognized when the Company subsequently determines that the position is no longer MLTN to be sustained. | ||||||||||||||||
The Company recognizes interest and penalties related to income taxes in its provision for income tax. | ||||||||||||||||
Accounting for Impairment of Long-Lived Assets | ||||||||||||||||
The Company evaluates the recoverability of property, equipment and software and other assets, including identifiable intangible assets with definite lives, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset exceeds these estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the assets exceeds the fair value of the asset or asset group, based on discounted cash flows. Assets to be disposed of are reported at the lower of their carrying amount or fair value less cost to sell. There were no impairment charges recorded in any of the periods presented. | ||||||||||||||||
Advertising Costs | ||||||||||||||||
The Company’s policy is to expense all advertising costs as incurred. Advertising expense includes costs for user conferences, tradeshows, print marketing and design consulting. Advertising expense was $1.8 million, $3.8 million and $6.4 million for the years ended December 31, 2012, 2013 and 2014, respectively, and is included in sales and marketing expense in the accompanying consolidated statements of operations. | ||||||||||||||||
Stock-Based Compensation | ||||||||||||||||
The Company’s stock-based compensation expense is estimated at the grant date based on the fair value of the award and is recognized as expense ratably over the requisite service period of the award. Determining the appropriate fair value and calculating the fair value of stock-based awards requires judgment, including estimating share price volatility, forfeiture rates, expected dividends, and expected life. The Company calculates the fair value of each restricted stock unit award to employees on the date of grant and to non-employees on each measurement date based on the fair value of its common stock. The Company calculates the fair value of each option award on the date of grant under the Black-Scholes option pricing model using certain assumptions. For nonemployee consultants, the Company revalues the unvested share based awards at each measurement period. Total expenses for nonemployee share based awards has been immaterial to date. | ||||||||||||||||
The Black-Scholes model requires the use of highly subjective and complex assumptions, which determine the fair value of stock-based awards, including the option’s expected term and the price volatility of the underlying stock. The Company’s current estimate of volatility is based on the volatility of comparable public companies. To the extent volatility of the Company’s stock price increases in the future, the Company’s estimates of the fair value of options granted in the future could increase, thereby increasing stock-based compensation in future periods. The Company uses the simplified calculation of expected term, as the Company does not have sufficient historical data to use any other method to estimate expected term. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. In addition, the Company applies an expected forfeiture rate when recording stock-based compensation. To the extent the Company revises this estimate in the future; its stock-based compensation could be materially impacted in the year of revision. | ||||||||||||||||
For market based awards, the Company uses the Monte Carlo simulation model to determine the fair value of each market-based award. The determination of the grant date fair value of the awards using a simulation model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the expected stock price volatility over the expected life of the awards, risk-free interest rates, and expected dividends. The Company’s current estimate of volatility is based on the volatility of comparable public companies. The risk free interest rate is equal to the U.S. Treasury constant maturity rates for the period equal to the expected life. The Company does not currently pay cash dividends on common stock and does not anticipate doing so in the foreseeable future. Accordingly, the expected dividend yield is zero. | ||||||||||||||||
Segments | ||||||||||||||||
The Company’s chief operating decision maker (CODM), its Chief Executive Officer, reviews financial information for the Company on a consolidated basis. The Company manages its business on the basis of one operating segment. The Company’s principal decision-making functions are located in the U.S. | ||||||||||||||||
Earnings Per Share | ||||||||||||||||
The Company applies the two-class method for calculation and presenting earnings per share. Under the two-class method, net income is allocated between common units and other participating securities based on their participating rights. Participating securities are defined as securities that participate in dividends with common units according to a pre-determined formula or a contractual obligation to share in the income of the entity. Following the conversion of the preferred stock and preferred stock warrants at the time of the IPO, there are no other participating securities outstanding. Basic net (loss) income per common unit is calculated by dividing the net income by the weighted-average number of common units outstanding for the period. Diluted net income per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. Due to the net losses for the years ended December 31, 2013 and 2014, there is no impact or change in presentation as a result of applying the two-class method. | ||||||||||||||||
Concentration of Risk | ||||||||||||||||
As of December 31, 2013 and 2014, there were no customers that accounted for more than 10% of outstanding gross accounts receivable. This customer is an advertising agency. There were no customers that accounted for more than 10% of revenue during the year ended December 31, 2012, 2013 or 2014. Branches or divisions of an advertiser that operate under distinct contracts are generally considered as separate customers. In particular, the Company treats as separate customers different groups within global advertising agencies if they are based in different jurisdictions or with respect to which the Company negotiated and manages separate contractual relationships. | ||||||||||||||||
Foreign Currency Translation and Transactions | ||||||||||||||||
The consolidated financial statements of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Assets and liabilities of foreign subsidiaries are translated at exchange rates in effect as of the balance sheet date. Revenues and expenses are translated at average exchanges rates in effect during the period. Translation adjustments are recorded within accumulated other comprehensive loss, a separate component of stockholders’ equity, on the accompanying consolidated balance sheets. Foreign exchange gain (loss) is impacted by movements in exchange rates and the amount of foreign-currency denominated receivables and payables. The foreign exchange loss in the years ended December 31, 2012, 2013 and 2014 was primarily attributable to the strengthening of the U.S. Dollar in relation to the Australian Dollar, Canadian Dollar, British Pound and Euro for foreign-currency denominated transactions. | ||||||||||||||||
Deferred Offering Costs | ||||||||||||||||
Deferred offering costs consisted of direct incremental costs related to the Company’s IPO of its common stock. The Company recorded $129 of deferred offering costs in other assets on the Company’s consolidated balance sheets as of December 31, 2013. No deferred offering costs are included as of December 31, 2014. Upon completion of the IPO, the deferred offering costs of $3.3 million were offset against the proceeds of the offering. | ||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||
In May 2014, the Financial Accounting Standards Board issued guidance related to revenue from contracts with customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under U.S. generally accepted accounting principles (GAAP) when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard will be effective for us in the first quarter of 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard it will have on its consolidated financial statements and related disclosures. |
Property_Equipment_and_Softwar
Property, Equipment and Software, net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Property, Equipment and Software, net | 2. Property, Equipment and Software, net | |||||||
Property, equipment and software, net as of December 31, 2013, and 2014 consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Computer and office equipment | $ | 607 | $ | 1,288 | ||||
Capitalized internal use software costs | 636 | 1,166 | ||||||
Furniture and fixtures | 369 | 1,049 | ||||||
Software | 73 | 172 | ||||||
Leasehold improvements | 202 | 1,043 | ||||||
Construction in process | — | 468 | ||||||
1,887 | 5,186 | |||||||
Less accumulated depreciation and amortization | (420 | ) | (1,284 | ) | ||||
Total | $ | 1,467 | $ | 3,902 | ||||
Total depreciation and amortization expense, excluding amortization of capitalized internal use software costs, was $89, $232 and $597 for years ended December 31, 2012, 2013, and 2014, respectively. The amortization expense of capitalized internal use software costs was $0, $90, and $267 for years ended December 31, 2012, 2013, and 2014, respectively and is recorded in cost of revenue. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounts Payable And Accrued Liabilities Current [Abstract] | ||||||||
Accrued Liabilities | 3. Accrued Liabilities | |||||||
Accrued liabilities at December 31, 2013 and 2014, consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Accrued media costs | $ | 28,603 | $ | 41,436 | ||||
Sales commissions | 1,296 | 2,826 | ||||||
Payroll and related expenses | 1,750 | 3,757 | ||||||
Other accrued expenses | 1,321 | 679 | ||||||
Customer rebates | 1,444 | 1,740 | ||||||
$ | 34,414 | $ | 50,438 | |||||
Accrued media costs consist of amounts owed to the Company’s vendors for impressions delivered through December 31, 2013 and 2014. |
Debt_Obligations
Debt Obligations | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt Obligations | 4. Debt Obligations | |||||||
Note Payable | ||||||||
Growth Capital Term-Debt and Working Capital Line of Credit | ||||||||
On August 21, 2013, the Company entered into an amended and restated loan and security agreement providing for a growth capital facility and a revolving line of credit. Under the growth capital facility, the Company has the ability to borrow a maximum of $4.25 million in growth capital term loan advances, which bear an interest rate of 4.75% and are secured by the Company’s assets. Under the revolving line of credit, the Company may be advanced up to $20 million based on 80% of eligible accounts receivable less the outstanding growth capital term loan balance at the advance date as defined in the amended agreement. Monthly payments of principal and interest are payable in equal installments. | ||||||||
On April 18, 2014, the Company entered into an amendment to its amended and restated loan and security agreement dated August 21, 2013. The amendment increased the revolving line of credit to $35 million, extended the availability and maturity of the revolving line through April 1, 2016, and added a new $3 million equipment term loan facility. The amendment also introduced a new financial covenant that requires the Company meet certain minimum revenue levels. As of December 31, 2014, the Company had available borrowings under the revolving line of credit of $35 million. | ||||||||
Under the amended and restated loan and security agreement, the Company may borrow under the revolving line of credit up to the lesser of (a) $35 million and (b) a borrowing base equal to 80% of eligible accounts receivable as defined in the agreement. If the Company’s trailing nine-month EBITDA as defined in the amendment is less than $1,000,000, then the outstanding amount of advances under the equipment loan facility are deducted from availability. Advances under the line of credit accrue interest at a floating per annum rate equal to the prime rate as published in the Western Edition Wall Street Journal. While the interest rate applicable to outstanding advances under the revolving line did not change under the amendment, the Company is now required to pay a minimum amount of interest equal to the amount of interest that would accrue per quarter on a notional outstanding principal balance of $2 million, or $1 million if the Company maintains more than $50 million in deposits with the lender. | ||||||||
If the combined amount of the Company’s cash on deposit with the lender, plus the availability under the revolving line of credit is less than $10 million, then the Company is required to deliver additional reporting, collections on accounts receivable are applied to immediately reduce the outstanding amount of advances under the revolving line, and the lender is allowed to take, in good faith, additional reserves against availability under the revolving line. | ||||||||
Under the amended and restated loan and security agreement, the lender has also made available a $3 million equipment loan facility that can be used to finance the costs related to new equipment purchases that are approved by the lender. The Company could request advances under the equipment term loan facility through December 31, 2014, and outstanding amounts under that facility bear interest at a floating annual rate of interest equal to the prime rate plus half of one percent (0.5%). The Company is required to repay each equipment term loan in 36 equal monthly payments of principal plus accrued interest commencing on the first day of the month immediately following the funding of each equipment term loan. There were no outstanding borrowings under the equipment loan facility as of December 31, 2014. This equipment term loan facility expired and was not renewed. | ||||||||
Future Payments | ||||||||
Future principal payments of long-term debt as of December 31, 2014 are as follows: | ||||||||
2015 | 1,364 | |||||||
Total | $ | 1,364 | ||||||
Discount | (2 | ) | ||||||
Less current portion | (1,362 | ) | ||||||
Noncurrent portion of debt | $ | — | ||||||
Warrants | ||||||||
In connection with a note payable issued in March 2010, the Company issued a warrant to purchase 77,161 shares of Series A-1 preferred stock at a price of $0.8748 per share. The warrant contained a down round protection clause. The Company accounted for the warrant at fair value and recorded it as a liability in accordance with FASB ASC Subtopic 815-40, Derivatives and Hedging Contracts in Entity’s Own Equity. Changes in the fair value of the warrant from the date of issuance up to July 23, 2014, conversion date, were included in the accompanying consolidated statements of operations and comprehensive loss during the year. The fair value of the warrant liability is based on a Monte Carlo Simulation that utilizes various assumptions, including expected term, volatility, risk-free interest rate, share issuance frequency, and exercise price. | ||||||||
On July 23, 2014, upon the closing of the Company’s IPO, the warrant converted from a warrant to purchase Series A-1 preferred stock to a warrant to purchase shares of common stock, and the liability at its then fair value of $516 was reclassified to additional paid-in capital. Prior to this date, all changes in the fair value of the warrant were recorded in other (expense) income in the accompanying unaudited consolidated statements of operations. On August 15, 2014, the warrant was net exercised in full for 69,895 shares of common stock. | ||||||||
The following assumptions were used at December 31, 2013 and July 23, 2014 (date of warrant conversion): | ||||||||
December 31, | July 23, | |||||||
2013 | 2014 | |||||||
Risk-free interest rate | 3.04 | % | 2.53 | % | ||||
Expected volatility | 80 | % | 80 | % | ||||
Expected lives | 6.3 years | 5.8 years | ||||||
Fair value of underlying equity | $ | 9.4 | $ | 7 | ||||
The Company recorded the fair value of the warrant at issuance of $56 as a discount to the note payable to be amortized over the three year life of the loan. | ||||||||
The warrant liability recorded by the Company was $684 and $0 at December 31, 2013, and 2014, respectively. A revaluation loss (gain) of $154, $388, and $(168) was recorded during the years ended December 31, 2012, 2013, and 2014, respectively, relating to the change in fair value in each period. | ||||||||
TubeMogul Japan Inc. Financing | ||||||||
In December 2012, the Company’s subsidiary TubeMogul Japan Inc. raised $232 from an investor through the issuance of a convertible note to finance its operations in Japan. In February 2013, the Company’s subsidiary raised an additional $187 in financing from three new investors, of which one is a member of the Company’s Board of Directors, through the issuance of convertible notes, to secure additional financing for our wholly-owned subsidiary in Japan. The notes are non-interest bearing and non-collateralized. | ||||||||
In October 2014, the Company redeemed the convertible notes from all of its investors for $957 (inclusive of a premium to induce repayment), of which the Company recorded $538 as loss on extinguishment of convertible notes in other (expense) income, net in the accompanying consolidated statements of operations. | ||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Stockholders Equity Note [Abstract] | ||||||||||||||||||||
Stockholders' Equity | 5. Stockholders’ Equity | |||||||||||||||||||
Initial Public Offering | ||||||||||||||||||||
On July 23, 2014, the Company consummated its initial public offering of 7,187,500 shares of common stock at an offering price of $7 per share. The shares sold in the offering included 937,500 shares sold by the Company pursuant to the underwriters’ full exercise of their over-allotment option. The net proceeds to the Company from the offering were approximately $46.8 million after deducting underwriting discounts and commissions, and before deducting total estimated expenses in connection with the offering of $3.3 million. Upon the closing of the IPO, all shares of the Company’s previously outstanding preferred stock automatically converted into shares of common stock and outstanding warrants to purchase the Company’s preferred stock automatically became exercisable for shares of common stock. | ||||||||||||||||||||
Common and Preferred Stock | ||||||||||||||||||||
In connection with the IPO, the Company’s board of directors and stockholders approved the amendment and restatement of the Company’s certificate of incorporation, which was effective immediately following the closing of the IPO on July 23, 2014. Under the Company’s amended and restated certificate of incorporation, the Company is authorized to issue up to 200,000,000 shares of common stock and 10,000,000 shares of undesignated preferred stock. | ||||||||||||||||||||
The following table presents the shares authorized and issued and outstanding as of the December 31, 2013 and 2014: | ||||||||||||||||||||
Shares | Issuance | |||||||||||||||||||
Shares | Issued and | Price Per | Carrying | Liquidation | ||||||||||||||||
Authorized | Outstanding | Share | Value(1) | Preference | ||||||||||||||||
Series A | 4,177,390 | 1,257,838 | $ | 1.21 | $ | 1,448 | $ | 1,525 | ||||||||||||
Series A | — | 830,866 | 0.9093 | 756 | 1,007 | |||||||||||||||
Series A-1 | 7,847,028 | 3,675,129 | 0.8748 | 3,128 | 3,215 | |||||||||||||||
Series A-1 | — | 171,228 | 0.6998 | 120 | 150 | |||||||||||||||
Series B | 10,298,658 | 5,149,330 | 1.942 | 9,896 | 10,000 | |||||||||||||||
Series C | 8,851,871 | 4,425,939 | 6.4748 | 28,564 | 28,658 | |||||||||||||||
Common stock, $0.001 par value | 62,000,000 | 6,674,757 | ||||||||||||||||||
Balance as of December 31, 2013 | 93,174,947 | 22,185,087 | $ | 43,912 | $ | 44,555 | ||||||||||||||
Converted | (31,174,947 | ) | (15,510,330 | ) | ||||||||||||||||
Preferred stock as of December 31, 2014 | 10,000,000 | — | ||||||||||||||||||
Common stock, $0.001 par value as of December 31, 2014 | 200,000,000 | 29,837,892 | ||||||||||||||||||
-1 | Amounts are net of issuance costs. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments And Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | 6. Commitments and Contingencies | |||
Lease Commitments | ||||
At various dates throughout 2013 and during the year ended December 31, 2014, the Company entered into leases and subleases for office space. The leases expire at various dates through 2021. | ||||
The Company’s commitments for minimum rentals under these leases as of December 31, 2014 are as follows: | ||||
Operating | ||||
leases | ||||
2015 | $ | 1,882 | ||
2016 | 1,530 | |||
2017 | 1,078 | |||
2018 | 884 | |||
Thereafter | 1,694 | |||
Total minimum lease payments | $ | 7,068 | ||
Rent expense was $555, $1,178, and $2,178 for the years ended December 31, 2012, 2013, and 2014, respectively. | ||||
Irrevocable Standby Letter of Credit | ||||
On July 2, 2013, the Company entered into an irrevocable standby letter of credit in the amount of $334 for the benefit of its sub landlord. The irrevocable standby letter of credit is for a one-year term and expires on July 2, 2014 and may be canceled prior to the expiration date upon the written request of the beneficiary. The letter of credit was automatically renewed on July 2, 2014 and the expiration date was extended to July 2, 2015. | ||||
In February 2014, the Company entered into an irrevocable standby letter of credit in the amount of $408 for the benefit of one of its lessors. The irrevocable standby letter of credit is for a one-year term and expires in February 2015 and may be canceled prior to the expiration date upon the written request of the beneficiary. | ||||
The Company is contractually required to keep the letters of credit for the term of the lease, therefore, the letters of credit are recorded as restricted cash and are classified as long-term assets on the consolidated Balance Sheets. | ||||
Legal | ||||
The Company is involved from time to time in various claims and legal actions arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that none of its current legal proceedings will have a material adverse effect on its financial position or results of operations. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Share Based Compensation [Abstract] | ||||||||||||||||
Stock-Based Compensation | 7. Stock-Based Compensation | |||||||||||||||
On July 9, 2007, the board of directors and stockholders of the Company approved and adopted the TubeMogul, Inc. 2007 Equity Compensation Plan (the “2007 Plan”) that permitted the grant of incentive and nonqualified stock options, stock awards (including restricted stock units), and stock appreciation rights to purchase shares of the common stock of the Company. Under the 2007 Plan, shares of common stock are reserved for the issuance of permitted awards to eligible participants. Options granted generally vest and become exercisable over a four-year term from the date of grant, at a rate of 25% after one year, then monthly on a straight-line basis thereafter. Options granted generally are exercisable for up to 10 years from the date of grant. Restricted stock units (RSUs) granted are generally released from restriction over a four-year term from the date of grant, at a rate of 25% after one year, then quarterly on a straight-line basis thereafter. Common shares purchased or issued under the 2007 Plan are subject to certain restrictions. | ||||||||||||||||
The Company has authorized and reserved a total of 6,093,703 shares of common stock under the 2007 Plan for the grant of permitted awards to employees, directors, consultants, and other service providers for the Company or related companies. The 2007 Plan terminated effective July 18, 2014, though it continues to govern outstanding awards issued under the 2007 Plan prior to July 18, 2014. | ||||||||||||||||
In February 2014, the Company’s board of directors and stockholders approved and adopted the TubeMogul, Inc. 2014 Equity Incentive Plan (2014 Plan), and the 2014 Plan became effective on July 16, 2014, the day immediately preceding the Company’s IPO. The 2014 Plan permits the grant of stock options, stock appreciation rights, restricted stock, RSUs, performance awards and other cash-based or stock-based awards. In addition, the 2014 Plan contains a mechanism through which the Company may adopt a deferred compensation arrangement in the future. Under the 2014 Plan, shares of common stock are reserved for the issuance of permitted awards to eligible participants. Options granted will generally vest and become exercisable over a four-year term from the date of grant, at a rate of 25% after one year, then monthly on a straight-line basis thereafter. Options granted generally are exercisable for up to 10 years from the date of grant. RSUs granted will generally be released from restriction over a four-year term from the date of grant, at a rate of 25% after one year, then quarterly on a straight-line basis thereafter. | ||||||||||||||||
The Company has initially authorized and reserved a total of 2,500,000 shares of common stock under the 2014 Plan for the grant of permitted awards. This reserve will automatically increase on January 1, 2015 and each subsequent anniversary through 2024, by an amount equal to the smaller of (a) five percent (5%) of the number of shares of common stock issued and outstanding on the immediately preceding December 31; and (b) an amount determined by the Company’s board of directors. This reserve also will be increased by up to an additional 4,975,000 shares, to include (a) any shares remaining available for grant under the 2007 Plan at the time of its termination; and (b) shares that would otherwise be returned to the 2007 Plan, upon the expiration or termination of awards granted under that plan. | ||||||||||||||||
Shares subject to awards which expire or are cancelled or forfeited will again become available for issuance under the 2014 Plan. | ||||||||||||||||
The shares available under the 2014 Plan will not be reduced by awards settled in cash. The shares available under the 2014 Plan will be reduced by shares withheld to satisfy tax withholding obligations with respect to stock options and stock appreciation rights. The gross number of shares issued upon the exercise of stock appreciation rights or options exercised by means of a net exercise or by tender of previously owned shares will be deducted from the shares available under the 2014 Plan. | ||||||||||||||||
For purposes of the tables below, the 2007 Plan and the 2014 Plan are collectively referred to as the “Plan”. The following table summarizes the Plan’s stock option activity: | ||||||||||||||||
Weighted- | Weighted | |||||||||||||||
average | average | |||||||||||||||
Outstanding | exercise | remaining | Aggregate | |||||||||||||
number of | price per | contractual | intrinsic | |||||||||||||
shares | share | life | value | |||||||||||||
Balance at December 31, 2013 | 4,290,057 | $ | 1.28 | 8 | $ | 24,973 | ||||||||||
Options granted | 1,403,056 | 16.22 | ||||||||||||||
Options exercised | (372,022 | ) | 1.02 | |||||||||||||
Options canceled | (154,868 | ) | 2.33 | |||||||||||||
Balance at December 31, 2014 | 5,166,223 | $ | 5.32 | 7.75 | $ | 83,132 | ||||||||||
Options exercisable and vested at December 31, 2014 | 2,405,749 | $ | 0.96 | 6.25 | $ | 49,209 | ||||||||||
Options vested and expected to vest at December 31, 2014 | 4,987,024 | $ | 5.17 | 7.7 | $ | 81,027 | ||||||||||
The weighted average fair value of options granted was $1.08, $2.64, and $9.87 for the years ended December 31, 2012, 2013, and 2014, respectively. The aggregate intrinsic value of options exercised was $969, $7.4 million, and $2.9 for the years ended December 31, 2012, 2013 and 2014, respectively. | ||||||||||||||||
The fair value of options granted to employees is estimated on the date of grant and to non-employees at each measurement period using the Black-Scholes-Merton option valuation model. This stock-based compensation expense valuation model requires the Company to make assumptions and judgments regarding the variables used in the calculation. These variances include the expected term (weighted average period of time that the options granted are expected to be outstanding), the expected volatility of the Company’s common stock, expected risk-free interest rate, expected dividends. To the extent actual results differ from the estimates, the difference will be recorded as a cumulative adjustment in the period estimates are revised. The Company uses the simplified calculation of expected term, as the Company does not have sufficient historical data to use any other method to estimate expected term. Expected volatility is based on an average of the historical volatilities of the common stock of several entities with characteristics similar to those of the Company. The expected risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Expected forfeitures are based on the Company’s historical experience. | ||||||||||||||||
The following assumptions were used to calculate the fair value of options for employees: | ||||||||||||||||
Years Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
Risk-free interest rate | 0.81% to 1.12% | 1.18% to1.98% | 1.7% to 2.0% | |||||||||||||
Dividend yield | — % | — % | — % | |||||||||||||
Volatility | 68% to 71% | 68% to 69% | 66% to 71% | |||||||||||||
Expected term | 5.8 to 6.1 years | 5.5 to 6.6 years | 5.6 to 6.4 years | |||||||||||||
The following table summarizes the Plan’s RSUs activity: | ||||||||||||||||
Weighted- | Weighted | |||||||||||||||
Outstanding | Average | average | ||||||||||||||
number of | Grant Date | remaining | ||||||||||||||
shares | Fair Value | contractual life | ||||||||||||||
Balance at December 31, 2013 | — | $ | — | — | ||||||||||||
RSUs granted | 1,090,945 | 11.8 | 6.53 | |||||||||||||
RSUs canceled | (92,800 | ) | 9.28 | — | ||||||||||||
Balance at December 31, 2014 | 998,145 | $ | 10.99 | 6.53 | ||||||||||||
The fair value of RSUs granted to employees is estimated on the date of grant and to non-employees at each measurement period using the fair value of the underlying common stock. | ||||||||||||||||
At December 31, 2014, there was approximately $23.0 million of total unrecognized compensation cost related to unvested stock-based compensation arrangements granted under the Plan. The remaining unrecognized compensation cost is expected to be recognized over the weighted average remaining vesting period of approximately 3.5 years at December 31, 2014. | ||||||||||||||||
In November 2014, the Company granted market-based performance options for a total of 385,035 shares under the Plan subject to vesting based upon the Company’s achievement of certain market valuations. The vesting conditions are as follows: | ||||||||||||||||
Vesting Condition | Number of Options Vested | Achievement of Market Capitalization | Derived Service Period | Vesting period | Period of Expense Recognition | |||||||||||
A | 154,014 shares | The Company obtains a $700 million market capitalization for 90 consecutive trading days calculated as the closing price of one share of the Company’s stock as reported by NASDAQ multiplied by the total number of outstanding shares as of each date. | 18 months | Equal monthly installments over 24 months, beginning one month after the vesting condition is met | 42 months | |||||||||||
B | 231,021 shares | The Company obtains a $1 billion market capitalization for 90 consecutive trading days calculated as the closing price of one share of the Company’s stock as reported by NASDAQ multiplied by the total number of outstanding shares as of each date. | 29 months | Equal monthly installments over 24 months, beginning one month after the vesting condition is met | 53 months | |||||||||||
The options have an exercise price of $17.04 per share and expire in 10 years. The fair value of the awards subject to market conditions was $4.6 million which will be recognized over the requisite service period and was estimated using a Monte Carlo simulation model with the following assumptions used to estimate the fair value thereof: | ||||||||||||||||
Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | ||||||||||||||||
Risk-free interest rate | 2.41% | |||||||||||||||
Dividend yield | — % | |||||||||||||||
Volatility | 73% | |||||||||||||||
Expected term | 10 years | |||||||||||||||
Both the Black-Scholes and the Monte Carlo simulation fair value models require the use of highly subjective and complex assumptions, including the expected term of the award and the price volatility of the underlying stock. Changes in the Black-Scholes and the Monte Carlo valuation assumptions and our related estimates may change the fair value for stock-based compensation and the related expense recognized. | ||||||||||||||||
The following table summarizes the effects of stock-based compensation in the Company’s accompanying consolidated statements of operations: | ||||||||||||||||
Years Ended | ||||||||||||||||
Ended December 31, | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
Research and development | $ | 159 | $ | 206 | $ | 1,094 | ||||||||||
Sales and marketing | 92 | 230 | 1,058 | |||||||||||||
General and administrative | 179 | 325 | 1,391 | |||||||||||||
Total stock-based compensation | $ | 430 | $ | 761 | $ | 3,543 | ||||||||||
In July 2014, the Company’s board of directors adopted and the stockholders approved the Company’s 2014 Employee Stock Purchase Plan (ESPP). The ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The administrator may, in its discretion, modify the terms of offering periods. Due to the timing of the IPO, the first offering period started July 17, 2014 and will end on February 16, 2015. At the end of each offering period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the last day of the offering period. As of December 31, 2014 the Company had 750,000 shares available for sale under the ESPP. The ESPP provides for annual increases in the number of shares available for issuance under the ESPP on the first day of each fiscal year, equal to the least of (a) two percent of the number of shares of Stock issued and outstanding on the immediately preceding fiscal year, or (b) an amount determined by the Board. |
Net_Loss_Per_Share
Net Loss Per Share | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||
Net Loss Per Share | 8. Net Loss per Share | |||||||||||||
The Company calculates its basic and diluted net loss per share in conformity with the two-class method required for companies with participating securities. Under the two-class method, in periods when the Company has net income, net income is determined by allocating undistributed earnings, calculated as net income less current period convertible preferred stock non-cumulative dividends, between common stock and convertible preferred stock. In computing diluted net income, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. | ||||||||||||||
The Company’s basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, convertible preferred stock, options to purchase common stock, RSUs and preferred and common stock warrants are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive as the Company had net losses for the years ended December 31, 2012, 2013 and 2014. | ||||||||||||||
The following table sets forth the computation of net loss per common share (in thousands, except per share data): | ||||||||||||||
Years ended | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Net loss | $ | (3,565 | ) | $ | (7,411 | ) | $ | (4,444 | ) | |||||
Weighted-average shares used in computing basic and diluted net loss per share | 6,433,819 | 6,612,621 | 19,928,003 | |||||||||||
Basic and diluted net loss per share | $ | (0.55 | ) | $ | (1.12 | ) | $ | (0.22 | ) | |||||
The following securities were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: | ||||||||||||||
Years Ended | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Convertible preferred stock | 13,824,944 | 15,510,314 | — | |||||||||||
Employee stock options | 3,023,803 | 3,695,466 | 5,166,223 | |||||||||||
RSUs | — | — | 998,145 | |||||||||||
ESPP | — | — | 123,817 | |||||||||||
Convertible preferred stock warrants | 102,161 | 102,161 | — | |||||||||||
Total | 16,950,908 | 19,307,941 | 6,288,185 | |||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 9. Employee Benefit Plans |
The Company started a 401(k) Profit Sharing Plan (401(k) Plan), effective January 1, 2009 for employees who are 21 years of age or older. According to the terms of the Plan, the Company may make a discretionary contribution to the Plan each year, allocable to all plan participants. The Company did not match employee contributions during the year ended December 31, 2014, however, the Company began matching up to 25% of employee contributions starting in fiscal year 2015. The Company is responsible for administrative expenses of the 401(k) Plan. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Income Taxes | 10. Income Taxes | ||||||||||||||||||||||||
Loss before income taxes is attributable to the following geographic locations: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2013 | 2014 | |||||||||||||||||||||||
United States | $ | (3,532 | ) | $ | (6,955 | ) | $ | (3,210 | ) | ||||||||||||||||
Foreign | 61 | (396 | ) | (951 | ) | ||||||||||||||||||||
Loss before income tax | $ | (3,471 | ) | $ | (7,351 | ) | $ | (4,161 | ) | ||||||||||||||||
The components of the provision for income taxes are as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||
Current income tax expense: | |||||||||||||||||||||||||
Federal | $ | — | $ | — | $ | 37 | |||||||||||||||||||
State | 10 | 20 | 37 | ||||||||||||||||||||||
Foreign | 84 | 40 | 220 | ||||||||||||||||||||||
Total current income tax expense | 94 | 60 | 294 | ||||||||||||||||||||||
Deferred income tax expense (benefit): | |||||||||||||||||||||||||
Federal | — | — | — | ||||||||||||||||||||||
State | — | — | — | ||||||||||||||||||||||
Foreign | — | — | (11 | ) | |||||||||||||||||||||
Total deferred income tax expense (benefit) | — | — | (11 | ) | |||||||||||||||||||||
Total provision for income taxes | $ | 94 | $ | 60 | $ | 283 | |||||||||||||||||||
The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2012, 2013 and 2014. | |||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||
Loss before income taxes | $ | 3,471 | $ | (7,351 | ) | $ | (4,161 | ) | |||||||||||||||||
Expected income tax expense at statutory rate | $ | (1,180 | ) | -34 | % | $ | (2,499 | ) | 34 | % | $ | (1,415 | ) | 34.01 | % | ||||||||||
State taxes — net of federal benefit | (178 | ) | -5.13 | % | (316 | ) | 4.3 | % | (47 | ) | 1.13 | % | |||||||||||||
Permanent book-tax differences | 203 | 5.85 | % | 514 | -6.99 | % | 1,066 | -25.62 | % | ||||||||||||||||
Change in valuation allowance | 1,285 | 37.02 | % | 2,371 | -32.25 | % | 613 | -14.73 | % | ||||||||||||||||
Other, net | (36 | ) | -1.04 | % | (10 | ) | 0.13 | % | 66 | -1.59 | % | ||||||||||||||
Provision for income taxes | $ | 94 | 2.71 | % | $ | 60 | -0.81 | % | $ | 283 | -6.8 | % | |||||||||||||
The tax effects of temporary differences and related deferred tax assets and liabilities as of December 31, 2013 and 2014 are as follows: | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Accrued expenses | $ | 266 | $ | 470 | |||||||||||||||||||||
Intangible assets | 14 | 12 | |||||||||||||||||||||||
Stock-based compensation | 236 | 1,072 | |||||||||||||||||||||||
Reserves and allowances | 302 | 708 | |||||||||||||||||||||||
Other | 50 | 456 | |||||||||||||||||||||||
Net operating losses | 6,451 | 5,954 | |||||||||||||||||||||||
Deferred Tax Assets | $ | 7,319 | $ | 8,672 | |||||||||||||||||||||
Valuation allowance | (6,804 | ) | (7,417 | ) | |||||||||||||||||||||
Total Deferred Tax Assets | 515 | 1,255 | |||||||||||||||||||||||
State deferred taxes | (510 | ) | (521 | ) | |||||||||||||||||||||
Depreciation and amortization | (5 | ) | (723 | ) | |||||||||||||||||||||
Total Deferred Tax Liabilities | (515 | ) | (1,244 | ) | |||||||||||||||||||||
Net Deferred Tax Assets/(Liabilities) | $ | — | $ | 11 | |||||||||||||||||||||
Based on the available objective evidence, management believes it is more-likely-than not that the net deferred tax assets were not fully realizable as of the year ended December 31, 2014. Accordingly, the Company has established a valuation allowance against its net deferred tax assets. | |||||||||||||||||||||||||
For the year ended December 31, 2014, the Company has not provided for income taxes on its undistributed earnings for foreign subsidiaries because these earnings are intended to be permanently reinvested in operations outside the U.S. The unrecognized deferred tax liabilities associated with these earnings are insignificant. | |||||||||||||||||||||||||
The Company has elected to use the "with and without" approach as described in ASC 740-20, "Intraperiod Tax Allocation," in determining the order in which tax attributes are utilized. As a result, the Company will only recognize a tax benefit from stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. | |||||||||||||||||||||||||
As of December 31, 2014, the Company has a net operating loss carryforward of approximately $13.9 million for federal tax purposes and $33.2 million for state tax purposes. If not utilized, these losses will expire beginning in 2017 for both federal and state purposes. | |||||||||||||||||||||||||
Utilization of the net operating loss carryforwards may be subject to an annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended (IRC), and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. The Company believes ownership changes, as defined under Section 382 of the IRC, existed in prior years, and has reduced its net operating loss carryforwards to reflect the limitation. | |||||||||||||||||||||||||
FASB authoritative guidance for the accounting for uncertainty in income taxes clarifies the accounting and reporting for income taxes where interpretation of the tax law on the Company’s tax positions may be uncertain. The guidance also prescribes a comprehensive model for the financial statement recognition, derecognition, measurement, presentation and disclosure of income tax uncertainties with respect to positions taken or expected to be taken in income tax returns. As of December 31, 2014, the Company does not have uncertain tax positions for which it has recorded a liability. While the Company may have unrecognized tax benefits included in its deferred tax assets, all of its tax benefits are subject to a full valuation allowance as of December 31, 2013 and 2014. Therefore, the Company has not yet performed a study to determine the amount of such unrecognized tax benefits that are more likely than not to be realized. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. There was no interest and penalties accrued as of December 31, 2013 and 2014. | |||||||||||||||||||||||||
The Company files income tax returns in the U.S. federal jurisdiction as well as many U.S. states and foreign jurisdictions. Tax years 2008-2013 remain open for examination by the Internal Revenue Service and state taxing agencies. The Company has no ongoing tax examinations by tax authorities at this time. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Information | 11. Segment Information | |||||||||||
The Company considers operating segments to be components of the Company in which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker (CODM) in deciding how to allocate resources and in assessing performance. The CODM for the Company is the Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company has one business activity, and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level. Accordingly, the Company has determined that it has a single operating and reportable segment, which is to design, develop and market software for digital branding. | ||||||||||||
Total revenue from customers by location is defined based on the customers’ billing address. The following table summarizes total revenue from customers for the respective locations: | ||||||||||||
Years Ended | ||||||||||||
December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
United States | $ | 26,782 | $ | 38,196 | $ | 78,686 | ||||||
Australia | 3,281 | 5,875 | 9,260 | |||||||||
All Other Countries | 4,096 | 13,143 | 26,297 | |||||||||
Total revenue | $ | 34,159 | $ | 57,214 | $ | 114,243 | ||||||
The following table summarized long-lived assets in the respective locations: | ||||||||||||
December 31, | ||||||||||||
2013 | 2014 | |||||||||||
United States | $ | 1,244 | $ | 3,711 | ||||||||
All Other Countries | 223 | 191 | ||||||||||
Total long-lived assets | $ | 1,467 | $ | 3,902 | ||||||||
The_Company_and_its_Significan1
The Company and its Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Use of Estimates | Use of Estimates | |||||||||||||||
The preparation of the financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these consolidated financial statements include allowances for doubtful accounts and credit memos, useful lives for depreciation and amortization, loss contingencies, valuation of deferred tax assets, provisions for uncertain tax positions, capitalization of software costs and assumptions used for valuation of stock-based compensation and convertible preferred stock warrant liability. Actual results could differ from those and other estimates. | ||||||||||||||||
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation | |||||||||||||||
These consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. | ||||||||||||||||
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue | |||||||||||||||
The Company recognizes revenue related to the utilization of its advertising platform. Revenue is recognized when persuasive evidence of an arrangement exists, service has been provided to the customer, collection of the fees is reasonably assured, and fees are fixed or determinable. Arrangements with customers do not provide the customer with the right to take possession of the software or platform at any time. The Company generates revenue from its platform through its Platform Direct and Platform Services offerings. Revenue for both Platform Direct and Platform Services is recognized when the advertisement is displayed. The Company’s arrangements are cancellable by the customer as to any unfulfilled portion of a campaign without penalty. Media is purchased on the Company’s platform on a real-time basis and purchasing ceases upon cancellation. For the Company’s Platform Services arrangements once the advertising is delivered in accordance with the terms of the insertion order, the related amounts earned for such advertising delivery are non-refundable. | ||||||||||||||||
The Company’s Platform Direct arrangements are evidenced by signed contracts. The Platform Services arrangements are evidenced through direct insertion orders. Revenue is recognized during the period in which the advertising is delivered. The Company also maintains processes to determine the collectability of amounts due from customers. To the extent any of the revenue recognition criteria are not met, the Company defers revenue. | ||||||||||||||||
Amounts that have been invoiced for services are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria outlined above have been met. In instances where customers prepay, the Company will defer recognition of revenue until the criteria outlined above are met and actual ads have been delivered during the period based on the terms specified in the agreement with the customer. | ||||||||||||||||
In accordance with ASC Topic 605, Revenue Recognition, paragraph 45-1, the Company recognizes revenue on a gross or net basis for each model based on its determination as to whether the Company is acting as the principal in the revenue generation process or as an agent. | ||||||||||||||||
Indicators that an entity is acting as a principal include: (a) the entity has the primary responsibility (primary obligor) for providing the goods or services to the customer or for fulfilling the order; (b) the entity has inventory risk before or after the customer order; (c) the entity has latitude in establishing prices, either directly or indirectly; and (d) the entity bears the customer’s credit risk for the amount receivable from the customer. | ||||||||||||||||
Indicators that an entity is acting as an agent exist when it does not have exposure to the significant risks and rewards associated with the sale of goods or the rendering of services. One key feature indicating that an entity is acting as an agent is that the amount the entity earns is predetermined, being either a fixed fee per transaction or a stated percentage of the amount billed to the customer. | ||||||||||||||||
Platform Direct — Platform Direct provides customers with self-serve capabilities for real-time media buying, serving, targeting, optimization and brand measurement. The Company enters into contracts with customers under which fees earned by the Company are based on a utilization fee that is a percentage of media spend through the platform as well as fees for additional features offered through the Company’s platform. These features are delivered concurrently with the related advertising. Due to the fact that the features are delivered concurrently, the Company does not allocate revenue between the two elements. | ||||||||||||||||
The Company recognizes revenue for Platform Direct on a net basis primarily based on the Company’s determination that it is not deemed to be the primary obligor, does not have inventory risk as the customer chooses the inventory to purchase on a real-time basis, the actual cost of the campaign is determined by the customer through the real-time bidding process, through management of the campaign the customer can define supplier preferences or specific suppliers from a list the Company maintains, and the amount earned by the Company is fixed based on a percentage of the media spend of a customer’s campaign. | ||||||||||||||||
Platform Services — Platform Services provide customers the opportunity to utilize the Company’s platform on a managed service basis, whereby the Company delivers digital video advertisements based upon a pre-agreed set of fixed objectives with an advertiser or agency. The Company enters into customer agreements through discrete binding insertion orders with fixed price commitments which are determined prior to the launch of an advertising campaign. | ||||||||||||||||
For Platform Services, the Company recognizes revenue on a gross basis primarily based on the Company’s determination that it is subject to the risk of fluctuating costs from its media vendors, has latitude in establishing prices with its customer, has discretion in selecting media vendors when fulfilling a customer’s campaign, and has credit risks. | ||||||||||||||||
Cost of Revenue | Cost of Revenue | |||||||||||||||
Cost of revenue is comprised primarily of media costs. Media costs consist of advertising impressions the Company purchases from sources of advertising inventory in connection with its Platform Services offering. The Company typically pays for these impressions on a cost per thousand impression (CPM) basis. Cost of revenue also includes technical infrastructure costs which include the cost of internal and third-party servers and related services, internet access costs and amortization of internal use software development costs on revenue-producing technologies. | ||||||||||||||||
Capitalized Internal-Use Software Development Costs | Capitalized Internal-Use Software Development Costs | |||||||||||||||
For web site development costs and development costs related to the Company’s platform, the Company capitalizes qualifying computer software costs which are incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred to research and development. The Company capitalizes costs when preliminary efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and used as intended. Costs incurred for enhancements that are expected to result in additional material functionality are capitalized. The Company capitalized $636 and $523 in internal-use software development costs related to platform enhancement and website development cost during the years ended December 31, 2013 and 2014. These costs are included in property, equipment and software, net on the consolidated balance sheets. Amortization commences when the website or software for internal use is ready for its intended use and the amortization period is the estimated useful life of the related asset, which is generally three years. Costs for research and development efforts have been expensed as incurred and relate primarily to payroll costs incurred in the development of the platform. | ||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||||||||||||||
The Company considers all highly liquid investments having original maturities of three months or less at the date of purchase to be cash equivalents. The Company’s cash equivalents consist of short-term money market instruments held at reputable financial institutions. Amounts held on deposit at financial institutions may exceed Federal Deposit Insurance Corporation (FDIC) insured limits. To date, the Company has not experienced any losses on such deposits. | ||||||||||||||||
Restricted Cash | Restricted Cash | |||||||||||||||
Restricted cash at December 31, 2013 and December 31, 2014 represents cash restricted for the Company’s irrevocable standby letters of credit in the amount of $334 and $742, respectively for the benefit of certain of the Company’s real property lessors. | ||||||||||||||||
Accounts Receivable | Accounts Receivable | |||||||||||||||
Accounts receivable are stated at net realizable value. The Company provides an allowance for doubtful accounts based on management’s evaluation of outstanding accounts receivable. The Company maintains reserves for potential credit losses on customer accounts when deemed necessary. The Company analyzes specific accounts receivable, historical bad debts, customer concentrations, current economic trends, and changes in the customer payment terms when evaluating the adequacy of the allowance for bad debts. Accounts receivable are written off when no future collection is possible. | ||||||||||||||||
Many of the Company’s contracts with advertising agencies provide that if the brand (i.e., the agency’s customer) does not pay the agency, the agency is not liable to the Company and the Company must seek payment from the brand. Accordingly, the Company considers the creditworthiness of the brand in establishing its allowance for doubtful accounts. However, since inception, the Company has not had to initiate collection efforts directly with any brands where the contract was with an advertising agency. | ||||||||||||||||
The following table presents the changes in the allowance for doubtful accounts: | ||||||||||||||||
Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
Balance, beginning of year | $ | (200 | ) | $ | (350 | ) | $ | (714 | ) | |||||||
Additions to allowance | (191 | ) | (539 | ) | (903 | ) | ||||||||||
Write offs, net of recoveries | 41 | 175 | 248 | |||||||||||||
Balance, end of year | $ | (350 | ) | $ | (714 | ) | $ | (1,369 | ) | |||||||
Beginning in Q1 2014 the Company established a reserve for credit memos. On a quarterly basis, the amount of revenue that is reserved for credit memos is calculated based on the Company’s historical trends and data specific to each reporting period. The Company reviews the actual credit memos issued in prior quarters as they relate to prior periods and establishes a rate at which credit memos effect prior periods. The Company then applies the established rate to the current period revenue as a basis for estimating future credit memos. For the years ended December 31, 2012 and 2013, the Company did not have a credit memo reserve as the amounts of credit memos had been historically insignificant. | ||||||||||||||||
The following table presents the changes in the allowance for credit memos: | ||||||||||||||||
Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | ||||||||||||||||
Balance, beginning of year | $ | — | ||||||||||||||
Additions to allowance | (1,875 | ) | ||||||||||||||
Write offs, net of recoveries | 1,415 | |||||||||||||||
Balance, end of year | $ | (460 | ) | |||||||||||||
Property, Equipment and Software, net | Property, Equipment and Software, net | |||||||||||||||
Property, equipment and software, net are carried at cost and are depreciated on the straight-line basis over their estimated useful lives of three to seven years. Repairs and maintenance are charged to expense as incurred, and improvements are capitalized. When the assets are sold or retired or otherwise disposed of, their cost and related accumulated depreciation and amortization are removed from the accounts with the resulting gain or loss reflected as an operating item in the accompanying consolidated statements of operations. | ||||||||||||||||
Leasehold improvements are amortized on a straight-line basis over the remaining term of the lease, or the useful life of the assets, whichever is shorter. | ||||||||||||||||
Construction in process mainly consists of leasehold improvements and furniture at the Company’s offices under construction, as well as server equipment that has not been placed in service as of December 31, 2014. Upon completion of construction, the assets will be depreciated over the shorter of their useful lives or the remaining lease term. Upon commencement of the use of the server, it will be depreciated over the useful life of the server, which will be determined upon commencement of the use. | ||||||||||||||||
Fair Value Measurement and Financial Instruments | Fair Value Measurement and Financial Instruments | |||||||||||||||
The Company measures the fair value of its financial instruments in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Fair Value Measurements. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. In determining fair values of all reported assets and liabilities that represent financial instruments, the Company uses the carrying market values of such amounts. The provision establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. | ||||||||||||||||
Unobservable inputs are inputs that reflect the Company’s assumptions as to what market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The hierarchy is broken down into three levels based on the observability of inputs as follows: | ||||||||||||||||
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. | ||||||||||||||||
Level 2 — Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | ||||||||||||||||
Level 3 — Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. | ||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities at December 31, 2013 and December 31, 2014, measured at fair value on a recurring basis: | ||||||||||||||||
Financial Instruments at Fair Value as of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 19,475 | $ | — | $ | — | $ | 19,475 | ||||||||
Liability: | ||||||||||||||||
Warrant Liability | $ | — | $ | — | $ | 684 | $ | 684 | ||||||||
Financial Instruments at Fair Value as of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 46,592 | $ | — | $ | — | $ | 46,592 | ||||||||
In fiscal year 2010, the Company issued a Series A-1 preferred stock warrant that contained a price protection clause that provided that the exercise price of the warrants was to be adjusted downwards upon the Company issuing Additional Stock (as defined in the warrant agreement) at more favorable pricing. As a result of this price protection clause, the Company determined that the warrant was not considered indexed to the Company’s own stock and as a result recorded the warrant as a liability measured at fair value at the time of issuance. Prior to the conversion of all Company preferred stock as a result of the IPO, the Company recorded “mark-to-market” adjustments each reporting period under other income expense, net. As the warrant’s fair value is based on significant inputs that were not observable in the market, they were categorized as Level 3. Changes in warrant liability (see Note 4) consisted of the following during: | ||||||||||||||||
Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2014 | |||||||||||||||
Balance, beginning of year | $ | 296 | $ | 684 | ||||||||||||
Change in fair value of convertible preferred stock warrant liability | 388 | (168 | ) | |||||||||||||
Conversion of preferred stock warrants to common stock warrants | — | (516 | ) | |||||||||||||
Balance, end of year | $ | 684 | $ | — | ||||||||||||
Since all carrying amounts approximate fair value, no other comprehensive income or loss has been recognized. There were no sales, purchases, settlements, or other transfers in or out of Level 3 liabilities. | ||||||||||||||||
Other financial instruments not measured at fair value on the accompanying consolidated balance sheets at December 31, 2013 and December 31, 2014, but which require disclosure of their fair values include accounts receivable, accounts payable, accrued expenses and debt. The estimated fair values of such instruments at December 31, 2013 and December 31, 2014 approximated their carrying values due to being short term in nature. The fair values of all of these instruments are categorized as Level 2 in the fair value hierarchy. | ||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s convertible preferred stock warrant: | ||||||||||||||||
Fair Value | Fair Value | Significant | ||||||||||||||
at December 31, | December 31, | Valuation | unobservable | |||||||||||||
2013 | 2014 | technique | input | |||||||||||||
Convertible preferred warrant liability | $ | 684 | $ | — | Monte Carlo Simulation | Value of underlying | ||||||||||
Series A-1 preferred stock, volatility, and expected term. | ||||||||||||||||
Sensitivity to Changes in Significant Unobservable Inputs | ||||||||||||||||
The significant unobservable inputs used in the fair measurement of the warrant are the volatility of the underlying stock value, expected term, and the value of the Company’s Series A-1 preferred stock. Significant increases (decreases) in these unobservable inputs in isolation could have resulted in a significantly different fair value measurement. | ||||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||
The Company accounts for income taxes in accordance with FASB ASC Topic 740, Income Taxes, under which deferred tax liabilities and assets are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss (NOL) and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce deferred tax assets to the net amount that is more likely than not to be realized. | ||||||||||||||||
The Company utilizes a two-step approach to evaluate tax positions. Recognition, step one, requires evaluation of the tax position to determine if based solely on technical merits it is more likely than not (MLTN) to be sustained upon examination. The MLTN standard is met when the likelihood of occurrence is greater than 50%. Measurement, step two, is addressed only if step one is satisfied. In step two, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, which is MLTN to be realized upon ultimate settlement with tax authorities. If a position does not meet the MLTN threshold for recognition in step one, no benefit is recorded until the first subsequent period in which the MLTN standard is met, the issue is resolved with the tax authority, or the statute of limitations expires. Positions previously recognized are derecognized when the Company subsequently determines that the position is no longer MLTN to be sustained. | ||||||||||||||||
The Company recognizes interest and penalties related to income taxes in its provision for income tax. | ||||||||||||||||
Accounting for Impairment of Long-Lived Assets | Accounting for Impairment of Long-Lived Assets | |||||||||||||||
The Company evaluates the recoverability of property, equipment and software and other assets, including identifiable intangible assets with definite lives, whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset exceeds these estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the assets exceeds the fair value of the asset or asset group, based on discounted cash flows. Assets to be disposed of are reported at the lower of their carrying amount or fair value less cost to sell. There were no impairment charges recorded in any of the periods presented. | ||||||||||||||||
Advertising Costs | Advertising Costs | |||||||||||||||
The Company’s policy is to expense all advertising costs as incurred. Advertising expense includes costs for user conferences, tradeshows, print marketing and design consulting. Advertising expense was $1.8 million, $3.8 million and $6.4 million for the years ended December 31, 2012, 2013 and 2014, respectively, and is included in sales and marketing expense in the accompanying consolidated statements of operations. | ||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||||||||||
The Company’s stock-based compensation expense is estimated at the grant date based on the fair value of the award and is recognized as expense ratably over the requisite service period of the award. Determining the appropriate fair value and calculating the fair value of stock-based awards requires judgment, including estimating share price volatility, forfeiture rates, expected dividends, and expected life. The Company calculates the fair value of each restricted stock unit award to employees on the date of grant and to non-employees on each measurement date based on the fair value of its common stock. The Company calculates the fair value of each option award on the date of grant under the Black-Scholes option pricing model using certain assumptions. For nonemployee consultants, the Company revalues the unvested share based awards at each measurement period. Total expenses for nonemployee share based awards has been immaterial to date. | ||||||||||||||||
The Black-Scholes model requires the use of highly subjective and complex assumptions, which determine the fair value of stock-based awards, including the option’s expected term and the price volatility of the underlying stock. The Company’s current estimate of volatility is based on the volatility of comparable public companies. To the extent volatility of the Company’s stock price increases in the future, the Company’s estimates of the fair value of options granted in the future could increase, thereby increasing stock-based compensation in future periods. The Company uses the simplified calculation of expected term, as the Company does not have sufficient historical data to use any other method to estimate expected term. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. In addition, the Company applies an expected forfeiture rate when recording stock-based compensation. To the extent the Company revises this estimate in the future; its stock-based compensation could be materially impacted in the year of revision. | ||||||||||||||||
For market based awards, the Company uses the Monte Carlo simulation model to determine the fair value of each market-based award. The determination of the grant date fair value of the awards using a simulation model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the expected stock price volatility over the expected life of the awards, risk-free interest rates, and expected dividends. The Company’s current estimate of volatility is based on the volatility of comparable public companies. The risk free interest rate is equal to the U.S. Treasury constant maturity rates for the period equal to the expected life. The Company does not currently pay cash dividends on common stock and does not anticipate doing so in the foreseeable future. Accordingly, the expected dividend yield is zero. | ||||||||||||||||
Segments | Segments | |||||||||||||||
The Company’s chief operating decision maker (CODM), its Chief Executive Officer, reviews financial information for the Company on a consolidated basis. The Company manages its business on the basis of one operating segment. The Company’s principal decision-making functions are located in the U.S. | ||||||||||||||||
Earnings Per Share | Earnings Per Share | |||||||||||||||
The Company applies the two-class method for calculation and presenting earnings per share. Under the two-class method, net income is allocated between common units and other participating securities based on their participating rights. Participating securities are defined as securities that participate in dividends with common units according to a pre-determined formula or a contractual obligation to share in the income of the entity. Following the conversion of the preferred stock and preferred stock warrants at the time of the IPO, there are no other participating securities outstanding. Basic net (loss) income per common unit is calculated by dividing the net income by the weighted-average number of common units outstanding for the period. Diluted net income per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. Due to the net losses for the years ended December 31, 2013 and 2014, there is no impact or change in presentation as a result of applying the two-class method. | ||||||||||||||||
Concentration of Risk | Concentration of Risk | |||||||||||||||
As of December 31, 2013 and 2014, there were no customers that accounted for more than 10% of outstanding gross accounts receivable. This customer is an advertising agency. There were no customers that accounted for more than 10% of revenue during the year ended December 31, 2012, 2013 or 2014. Branches or divisions of an advertiser that operate under distinct contracts are generally considered as separate customers. In particular, the Company treats as separate customers different groups within global advertising agencies if they are based in different jurisdictions or with respect to which the Company negotiated and manages separate contractual relationships. | ||||||||||||||||
Foreign Currency Transactions and Translations | Foreign Currency Translation and Transactions | |||||||||||||||
The consolidated financial statements of the Company’s foreign subsidiaries are measured using the local currency as the functional currency. Assets and liabilities of foreign subsidiaries are translated at exchange rates in effect as of the balance sheet date. Revenues and expenses are translated at average exchanges rates in effect during the period. Translation adjustments are recorded within accumulated other comprehensive loss, a separate component of stockholders’ equity, on the accompanying consolidated balance sheets. Foreign exchange gain (loss) is impacted by movements in exchange rates and the amount of foreign-currency denominated receivables and payables. The foreign exchange loss in the years ended December 31, 2012, 2013 and 2014 was primarily attributable to the strengthening of the U.S. Dollar in relation to the Australian Dollar, Canadian Dollar, British Pound and Euro for foreign-currency denominated transactions. | ||||||||||||||||
Deferred Offering Costs | Deferred Offering Costs | |||||||||||||||
Deferred offering costs consisted of direct incremental costs related to the Company’s IPO of its common stock. The Company recorded $129 of deferred offering costs in other assets on the Company’s consolidated balance sheets as of December 31, 2013. No deferred offering costs are included as of December 31, 2014. Upon completion of the IPO, the deferred offering costs of $3.3 million were offset against the proceeds of the offering. | ||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||||||||||||||
In May 2014, the Financial Accounting Standards Board issued guidance related to revenue from contracts with customers. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The updated standard will replace most existing revenue recognition guidance under U.S. generally accepted accounting principles (GAAP) when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard will be effective for us in the first quarter of 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard it will have on its consolidated financial statements and related disclosures. |
The_Company_and_its_Significan2
The Company and its Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Schedule of Allowance for Doubtful accounts | The following table presents the changes in the allowance for doubtful accounts: | |||||||||||||||
Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
Balance, beginning of year | $ | (200 | ) | $ | (350 | ) | $ | (714 | ) | |||||||
Additions to allowance | (191 | ) | (539 | ) | (903 | ) | ||||||||||
Write offs, net of recoveries | 41 | 175 | 248 | |||||||||||||
Balance, end of year | $ | (350 | ) | $ | (714 | ) | $ | (1,369 | ) | |||||||
Schedule of Changes in Allowance for Credit Memos | The following table presents the changes in the allowance for credit memos: | |||||||||||||||
Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | ||||||||||||||||
Balance, beginning of year | $ | — | ||||||||||||||
Additions to allowance | (1,875 | ) | ||||||||||||||
Write offs, net of recoveries | 1,415 | |||||||||||||||
Balance, end of year | $ | (460 | ) | |||||||||||||
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities at December 31, 2013 and December 31, 2014, measured at fair value on a recurring basis: | |||||||||||||||
Financial Instruments at Fair Value as of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 19,475 | $ | — | $ | — | $ | 19,475 | ||||||||
Liability: | ||||||||||||||||
Warrant Liability | $ | — | $ | — | $ | 684 | $ | 684 | ||||||||
Financial Instruments at Fair Value as of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 46,592 | $ | — | $ | — | $ | 46,592 | ||||||||
Schedule of Changes in Warrant Liability | Changes in warrant liability (see Note 4) consisted of the following during: | |||||||||||||||
Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2014 | |||||||||||||||
Balance, beginning of year | $ | 296 | $ | 684 | ||||||||||||
Change in fair value of convertible preferred stock warrant liability | 388 | (168 | ) | |||||||||||||
Conversion of preferred stock warrants to common stock warrants | — | (516 | ) | |||||||||||||
Balance, end of year | $ | 684 | $ | — | ||||||||||||
Schedule of Significant Unobservable Inputs Used in Fair Value Measurement of the Company's Convertible Preferred Stock Warrant | The significant unobservable inputs used in the fair value measurement of the Company’s convertible preferred stock warrant: | |||||||||||||||
Fair Value | Fair Value | Significant | ||||||||||||||
at December 31, | December 31, | Valuation | unobservable | |||||||||||||
2013 | 2014 | technique | input | |||||||||||||
Convertible preferred warrant liability | $ | 684 | $ | — | Monte Carlo Simulation | Value of underlying | ||||||||||
Series A-1 preferred stock, volatility, and expected term. | ||||||||||||||||
Property_Equipment_and_Softwar1
Property, Equipment and Software,net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Schedule of Property, Equipment and Software, net | Property, equipment and software, net as of December 31, 2013, and 2014 consisted of the following: | |||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Computer and office equipment | $ | 607 | $ | 1,288 | ||||
Capitalized internal use software costs | 636 | 1,166 | ||||||
Furniture and fixtures | 369 | 1,049 | ||||||
Software | 73 | 172 | ||||||
Leasehold improvements | 202 | 1,043 | ||||||
Construction in process | — | 468 | ||||||
1,887 | 5,186 | |||||||
Less accumulated depreciation and amortization | (420 | ) | (1,284 | ) | ||||
Total | $ | 1,467 | $ | 3,902 | ||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounts Payable And Accrued Liabilities Current [Abstract] | ||||||||
Schedule of Accrued Liabilities | Accrued liabilities at December 31, 2013 and 2014, consisted of the following: | |||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Accrued media costs | $ | 28,603 | $ | 41,436 | ||||
Sales commissions | 1,296 | 2,826 | ||||||
Payroll and related expenses | 1,750 | 3,757 | ||||||
Other accrued expenses | 1,321 | 679 | ||||||
Customer rebates | 1,444 | 1,740 | ||||||
$ | 34,414 | $ | 50,438 | |||||
Debt_Obligations_Tables
Debt Obligations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Future Principal Payments of Long-Term Debt | Future principal payments of long-term debt as of December 31, 2014 are as follows: | |||||||
2015 | 1,364 | |||||||
Total | $ | 1,364 | ||||||
Discount | (2 | ) | ||||||
Less current portion | (1,362 | ) | ||||||
Noncurrent portion of debt | $ | — | ||||||
Fair Value of Warrants | The following assumptions were used at December 31, 2013 and July 23, 2014 (date of warrant conversion): | |||||||
December 31, | July 23, | |||||||
2013 | 2014 | |||||||
Risk-free interest rate | 3.04 | % | 2.53 | % | ||||
Expected volatility | 80 | % | 80 | % | ||||
Expected lives | 6.3 years | 5.8 years | ||||||
Fair value of underlying equity | $ | 9.4 | $ | 7 | ||||
Stockholders_Equity_Tables
Stockholders Equity (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Stockholders Equity Note [Abstract] | ||||||||||||||||||||
Convertible Preferred Stock Financing | The following table presents the shares authorized and issued and outstanding as of the December 31, 2013 and 2014: | |||||||||||||||||||
Shares | Issuance | |||||||||||||||||||
Shares | Issued and | Price Per | Carrying | Liquidation | ||||||||||||||||
Authorized | Outstanding | Share | Value(1) | Preference | ||||||||||||||||
Series A | 4,177,390 | 1,257,838 | $ | 1.21 | $ | 1,448 | $ | 1,525 | ||||||||||||
Series A | — | 830,866 | 0.9093 | 756 | 1,007 | |||||||||||||||
Series A-1 | 7,847,028 | 3,675,129 | 0.8748 | 3,128 | 3,215 | |||||||||||||||
Series A-1 | — | 171,228 | 0.6998 | 120 | 150 | |||||||||||||||
Series B | 10,298,658 | 5,149,330 | 1.942 | 9,896 | 10,000 | |||||||||||||||
Series C | 8,851,871 | 4,425,939 | 6.4748 | 28,564 | 28,658 | |||||||||||||||
Common stock, $0.001 par value | 62,000,000 | 6,674,757 | ||||||||||||||||||
Balance as of December 31, 2013 | 93,174,947 | 22,185,087 | $ | 43,912 | $ | 44,555 | ||||||||||||||
Converted | (31,174,947 | ) | (15,510,330 | ) | ||||||||||||||||
Preferred stock as of December 31, 2014 | 10,000,000 | — | ||||||||||||||||||
Common stock, $0.001 par value as of December 31, 2014 | 200,000,000 | 29,837,892 | ||||||||||||||||||
-1 | Amounts are net of issuance costs. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments And Contingencies Disclosure [Abstract] | ||||
Schedule of Commitments for Minimum Rentals Under Operating Lease | The Company’s commitments for minimum rentals under these leases as of December 31, 2014 are as follows: | |||
Operating | ||||
leases | ||||
2015 | $ | 1,882 | ||
2016 | 1,530 | |||
2017 | 1,078 | |||
2018 | 884 | |||
Thereafter | 1,694 | |||
Total minimum lease payments | $ | 7,068 | ||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Summary of Stock Option Plan | The following table summarizes the Plan’s stock option activity: | |||||||||||||||
Weighted- | Weighted | |||||||||||||||
average | average | |||||||||||||||
Outstanding | exercise | remaining | Aggregate | |||||||||||||
number of | price per | contractual | intrinsic | |||||||||||||
shares | share | life | value | |||||||||||||
Balance at December 31, 2013 | 4,290,057 | $ | 1.28 | 8 | $ | 24,973 | ||||||||||
Options granted | 1,403,056 | 16.22 | ||||||||||||||
Options exercised | (372,022 | ) | 1.02 | |||||||||||||
Options canceled | (154,868 | ) | 2.33 | |||||||||||||
Balance at December 31, 2014 | 5,166,223 | $ | 5.32 | 7.75 | $ | 83,132 | ||||||||||
Options exercisable and vested at December 31, 2014 | 2,405,749 | $ | 0.96 | 6.25 | $ | 49,209 | ||||||||||
Options vested and expected to vest at December 31, 2014 | 4,987,024 | $ | 5.17 | 7.7 | $ | 81,027 | ||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes the Plan’s RSUs activity: | |||||||||||||||
Weighted- | Weighted | |||||||||||||||
Outstanding | Average | average | ||||||||||||||
number of | Grant Date | remaining | ||||||||||||||
shares | Fair Value | contractual life | ||||||||||||||
Balance at December 31, 2013 | — | $ | — | — | ||||||||||||
RSUs granted | 1,090,945 | 11.8 | 6.53 | |||||||||||||
RSUs canceled | (92,800 | ) | 9.28 | — | ||||||||||||
Balance at December 31, 2014 | 998,145 | $ | 10.99 | 6.53 | ||||||||||||
Summary of Vesting Option Plan | In November 2014, the Company granted market-based performance options for a total of 385,035 shares under the Plan subject to vesting based upon the Company’s achievement of certain market valuations. The vesting conditions are as follows: | |||||||||||||||
Vesting Condition | Number of Options Vested | Achievement of Market Capitalization | Derived Service Period | Vesting period | Period of Expense Recognition | |||||||||||
A | 154,014 shares | The Company obtains a $700 million market capitalization for 90 consecutive trading days calculated as the closing price of one share of the Company’s stock as reported by NASDAQ multiplied by the total number of outstanding shares as of each date. | 18 months | Equal monthly installments over 24 months, beginning one month after the vesting condition is met | 42 months | |||||||||||
B | 231,021 shares | The Company obtains a $1 billion market capitalization for 90 consecutive trading days calculated as the closing price of one share of the Company’s stock as reported by NASDAQ multiplied by the total number of outstanding shares as of each date. | 29 months | Equal monthly installments over 24 months, beginning one month after the vesting condition is met | 53 months | |||||||||||
Summary of Effects of Stock-Based Compensation | The following table summarizes the effects of stock-based compensation in the Company’s accompanying consolidated statements of operations: | |||||||||||||||
Years Ended | ||||||||||||||||
Ended December 31, | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
Research and development | $ | 159 | $ | 206 | $ | 1,094 | ||||||||||
Sales and marketing | 92 | 230 | 1,058 | |||||||||||||
General and administrative | 179 | 325 | 1,391 | |||||||||||||
Total stock-based compensation | $ | 430 | $ | 761 | $ | 3,543 | ||||||||||
Awards Subject To Market Condition | ||||||||||||||||
Schedule of Assumptions Used to Calculate Fair Value of Options | The options have an exercise price of $17.04 per share and expire in 10 years. The fair value of the awards subject to market conditions was $4.6 million which will be recognized over the requisite service period and was estimated using a Monte Carlo simulation model with the following assumptions used to estimate the fair value thereof: | |||||||||||||||
Year Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | ||||||||||||||||
Risk-free interest rate | 2.41% | |||||||||||||||
Dividend yield | — % | |||||||||||||||
Volatility | 73% | |||||||||||||||
Expected term | 10 years | |||||||||||||||
Employees | ||||||||||||||||
Schedule of Assumptions Used to Calculate Fair Value of Options | The following assumptions were used to calculate the fair value of options for employees: | |||||||||||||||
Years Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
Risk-free interest rate | 0.81% to 1.12% | 1.18% to1.98% | 1.7% to 2.0% | |||||||||||||
Dividend yield | — % | — % | — % | |||||||||||||
Volatility | 68% to 71% | 68% to 69% | 66% to 71% | |||||||||||||
Expected term | 5.8 to 6.1 years | 5.5 to 6.6 years | 5.6 to 6.4 years | |||||||||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||
Schedule of Computation of Net Loss per Common Share | The following table sets forth the computation of net loss per common share (in thousands, except per share data): | |||||||||||||
Years ended | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Net loss | $ | (3,565 | ) | $ | (7,411 | ) | $ | (4,444 | ) | |||||
Weighted-average shares used in computing basic and diluted net loss per share | 6,433,819 | 6,612,621 | 19,928,003 | |||||||||||
Basic and diluted net loss per share | $ | (0.55 | ) | $ | (1.12 | ) | $ | (0.22 | ) | |||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: | |||||||||||||
Years Ended | ||||||||||||||
December 31, | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Convertible preferred stock | 13,824,944 | 15,510,314 | — | |||||||||||
Employee stock options | 3,023,803 | 3,695,466 | 5,166,223 | |||||||||||
RSUs | — | — | 998,145 | |||||||||||
ESPP | — | — | 123,817 | |||||||||||
Convertible preferred stock warrants | 102,161 | 102,161 | — | |||||||||||
Total | 16,950,908 | 19,307,941 | 6,288,185 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Components of Earnings (Loss) from Operations Before Income Taxes | Loss before income taxes is attributable to the following geographic locations: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2013 | 2014 | |||||||||||||||||||||||
United States | $ | (3,532 | ) | $ | (6,955 | ) | $ | (3,210 | ) | ||||||||||||||||
Foreign | 61 | (396 | ) | (951 | ) | ||||||||||||||||||||
Loss before income tax | $ | (3,471 | ) | $ | (7,351 | ) | $ | (4,161 | ) | ||||||||||||||||
Components of Income Tax Expense (Benefit) from Operations | The components of the provision for income taxes are as follows: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||
Current income tax expense: | |||||||||||||||||||||||||
Federal | $ | — | $ | — | $ | 37 | |||||||||||||||||||
State | 10 | 20 | 37 | ||||||||||||||||||||||
Foreign | 84 | 40 | 220 | ||||||||||||||||||||||
Total current income tax expense | 94 | 60 | 294 | ||||||||||||||||||||||
Deferred income tax expense (benefit): | |||||||||||||||||||||||||
Federal | — | — | — | ||||||||||||||||||||||
State | — | — | — | ||||||||||||||||||||||
Foreign | — | — | (11 | ) | |||||||||||||||||||||
Total deferred income tax expense (benefit) | — | — | (11 | ) | |||||||||||||||||||||
Total provision for income taxes | $ | 94 | $ | 60 | $ | 283 | |||||||||||||||||||
Reconciliation of Differences Between Federal Statutory and Effective Income Tax Rate | The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2012, 2013 and 2014. | ||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||
Loss before income taxes | $ | 3,471 | $ | (7,351 | ) | $ | (4,161 | ) | |||||||||||||||||
Expected income tax expense at statutory rate | $ | (1,180 | ) | -34 | % | $ | (2,499 | ) | 34 | % | $ | (1,415 | ) | 34.01 | % | ||||||||||
State taxes — net of federal benefit | (178 | ) | -5.13 | % | (316 | ) | 4.3 | % | (47 | ) | 1.13 | % | |||||||||||||
Permanent book-tax differences | 203 | 5.85 | % | 514 | -6.99 | % | 1,066 | -25.62 | % | ||||||||||||||||
Change in valuation allowance | 1,285 | 37.02 | % | 2,371 | -32.25 | % | 613 | -14.73 | % | ||||||||||||||||
Other, net | (36 | ) | -1.04 | % | (10 | ) | 0.13 | % | 66 | -1.59 | % | ||||||||||||||
Provision for income taxes | $ | 94 | 2.71 | % | $ | 60 | -0.81 | % | $ | 283 | -6.8 | % | |||||||||||||
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences and related deferred tax assets and liabilities as of December 31, 2013 and 2014 are as follows: | ||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Accrued expenses | $ | 266 | $ | 470 | |||||||||||||||||||||
Intangible assets | 14 | 12 | |||||||||||||||||||||||
Stock-based compensation | 236 | 1,072 | |||||||||||||||||||||||
Reserves and allowances | 302 | 708 | |||||||||||||||||||||||
Other | 50 | 456 | |||||||||||||||||||||||
Net operating losses | 6,451 | 5,954 | |||||||||||||||||||||||
Deferred Tax Assets | $ | 7,319 | $ | 8,672 | |||||||||||||||||||||
Valuation allowance | (6,804 | ) | (7,417 | ) | |||||||||||||||||||||
Total Deferred Tax Assets | 515 | 1,255 | |||||||||||||||||||||||
State deferred taxes | (510 | ) | (521 | ) | |||||||||||||||||||||
Depreciation and amortization | (5 | ) | (723 | ) | |||||||||||||||||||||
Total Deferred Tax Liabilities | (515 | ) | (1,244 | ) | |||||||||||||||||||||
Net Deferred Tax Assets/(Liabilities) | $ | — | $ | 11 | |||||||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of Total Revenue from Customers By Location | Total revenue from customers by location is defined based on the customers’ billing address. The following table summarizes total revenue from customers for the respective locations: | |||||||||||
Years Ended | ||||||||||||
December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
United States | $ | 26,782 | $ | 38,196 | $ | 78,686 | ||||||
Australia | 3,281 | 5,875 | 9,260 | |||||||||
All Other Countries | 4,096 | 13,143 | 26,297 | |||||||||
Total revenue | $ | 34,159 | $ | 57,214 | $ | 114,243 | ||||||
Summarized Long-Lived Assets on Geographic Areas | The following table summarized long-lived assets in the respective locations: | |||||||||||
December 31, | ||||||||||||
2013 | 2014 | |||||||||||
United States | $ | 1,244 | $ | 3,711 | ||||||||
All Other Countries | 223 | 191 | ||||||||||
Total long-lived assets | $ | 1,467 | $ | 3,902 | ||||||||
The_Company_and_its_Significan3
The Company and its Significant Accounting Policies - Additional Information (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jul. 23, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | Customer | Customer | ||
Business | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Proceeds from issuance of common stock in initial public offering, net of underwriting discounts and commission | $46,800,000 | |||
Restricted cash | 742,000 | 334,000 | ||
Other comprehensive income or loss | 0 | |||
Transfers in or out | 0 | 0 | ||
Impairment charges | 0 | 0 | ||
Advertising expense | 6,400,000 | 3,800,000 | 1,800,000 | |
Expected dividend yield | 0.00% | |||
Number of operating business activity | 1 | |||
Number of customer accounted for 10% of gross accounts receivable | 0 | 0 | ||
Number of customer accounted for more than 10% of revenue | 0 | 0 | 0 | |
Deferred offering costs | 0 | 129,000 | ||
Minimum | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Property, equipment and software net, estimated useful lives | 3 years | |||
Minimum level of likelihood | 50.00% | |||
Minimum | Accounts Receivable | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 10.00% | |||
Maximum | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Property, equipment and software net, estimated useful lives | 7 years | |||
Software Development | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Capitalized internal-use software development costs | 523,000 | 636,000 | ||
Estimated useful life of intangible assets | 3 years | |||
Common Stock | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Issuance of common stock from initial public offering, net of issuance costs, Shares | 7,187,500 | |||
Proceeds from issuance of common stock in initial public offering, net of underwriting discounts and commission | 46,800,000 | 46,791,000 | ||
IPO | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Issuance of common stock from initial public offering, net of issuance costs, Shares | 7,187,500 | |||
Issuance price per share | $7 | |||
Deferred offering costs | 3,300,000 | |||
IPO | Common Stock | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Issuance of common stock from initial public offering, net of issuance costs, Shares | 7,187,500 | |||
Issuance price per share | $7 | |||
Estimated offering expenses | $3,300,000 | |||
IPO | Common Stock | Underwriters | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Issuance of common stock from initial public offering, net of issuance costs, Shares | 937,500 |
The_Company_and_its_Significan4
The Company and its Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Details) (Doubtful Accounts Receivables and Credit Memos, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Doubtful Accounts Receivables and Credit Memos | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Balance, beginning of year | ($714) | ($350) | ($200) |
Additions to allowance | -903 | -539 | -191 |
Write offs, net of recoveries | 248 | 175 | 41 |
Balance, end of year | ($1,369) | ($714) | ($350) |
The_Company_and_its_Significan5
The Company and its Significant Accounting Policies - Schedule of Allowance for Credit Memos (Details) (Credit Memos, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Credit Memos | |
Accounts Notes And Loans Receivable [Line Items] | |
Additions to allowance | ($1,875) |
Write offs, net of recoveries | 1,415 |
Balance, end of year | ($460) |
The_Company_and_its_Significan6
The Company and its Significant Accounting Policies - Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Financial liabilities | $0 | $684 | $296 |
Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Financial liabilities | 684 | ||
Recurring Basis | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Financial assets | 46,592 | 19,475 | |
Financial liabilities | 684 | ||
Recurring Basis | Level 1 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Financial assets | 46,592 | 19,475 | |
Recurring Basis | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Financial liabilities | $684 |
The_Company_and_its_Significan7
The Company and its Significant Accounting Policies - Schedule of Changes in Warrant Liability (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |||
Balance, beginning of year | $684 | $296 | |
Change in fair value of convertible preferred stock warrant liability | -168 | 388 | 154 |
Conversion of preferred stock warrants to common stock warrants | -516 | ||
Balance, end of year | $0 | $684 | $296 |
The_Company_and_its_Significan8
The Company and its Significant Accounting Policies - Schedule of Significant Unobservable Inputs Used in Fair Value Measurement of Convertible Preferred Stock Warrant (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Financial liabilities | $0 | $684 | $296 |
Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Financial liabilities | $684 | ||
Valuation technique | Monte Carlo Simulation | ||
Significant unobservable input | Value of underlying Series A-1 preferred stock,volatility, and expected term. |
Property_Equipment_and_Softwar2
Property, Equipment and Software, net - Schedule of Property, Equipment and Software, net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ||
Property, equipment and software, gross | $5,186 | $1,887 |
Less accumulated depreciation and amortization | -1,284 | -420 |
Total | 3,902 | 1,467 |
Computer and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property, equipment and software, gross | 1,288 | 607 |
Capitalized Internal Use Software Costs | ||
Property Plant And Equipment [Line Items] | ||
Property, equipment and software, gross | 1,166 | 636 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property, equipment and software, gross | 1,049 | 369 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Property, equipment and software, gross | 172 | 73 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property, equipment and software, gross | 1,043 | 202 |
Construction in Process | ||
Property Plant And Equipment [Line Items] | ||
Property, equipment and software, gross | $468 |
Property_Equipment_and_Softwar3
Property, Equipment and Software, net - Additional Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | $864 | $322 | $89 |
Production Assets Other than Internal Use Software | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | 597 | 232 | 89 |
Capitalized Internal Use Software Costs | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and amortization expense | $267 | $90 | $0 |
Accrued_Liabilities_Schedule_o
Accrued Liabilities - Schedule of Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ||
Accrued media costs | $41,436 | $28,603 |
Sales commissions | 2,826 | 1,296 |
Payroll and related expenses | 3,757 | 1,750 |
Other accrued expenses | 679 | 1,321 |
Customer rebates | 1,740 | 1,444 |
Total accrued liabilities | $50,438 | $34,414 |
Debt_Obligations_Growth_Capita
Debt Obligations - Growth Capital Term-Debt and Working Capital Line of Credit - Additional Information (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Apr. 18, 2014 | Aug. 21, 2013 | Dec. 31, 2014 | |
Line Of Credit Facility [Line Items] | |||
Available borrowing with revolving line of credit | $35,000,000 | ||
Line of credit facility exceeds borrowing capacity to maintain ratio | 10,000,000 | ||
Outstanding borrowing | 0 | ||
Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 35,000,000 | 20,000,000 | |
Term loan interest rate | 4.75% | ||
Percentage of eligible accounts receivable | 80.00% | ||
Line of credit facility expiration date | 1-Apr-16 | ||
Line of credit facility, covenant terms | Under the amended and restated loan and security agreement, the Company may borrow under the revolving line of credit up to the lesser of (a) $35 million and (b) a borrowing base equal to 80% of eligible accounts receivable as defined in the agreement. If the Company’s trailing nine-month EBITDA as defined in the amendment is less than $1,000,000, then the outstanding amount of advances under the equipment loan facility are deducted from availability. Advances under the line of credit accrue interest at a floating per annum rate equal to the prime rate as published in the Western Edition Wall Street Journal. While the interest rate applicable to outstanding advances under the revolving line did not change under the amendment, the Company is now required to pay a minimum amount of interest equal to the amount of interest that would accrue per quarter on a notional outstanding principal balance of $2 million, or $1 million if the Company maintains more than $50 million in deposits with the lender. | ||
Lender Deposits | 50,000,000 | ||
Line of credit facility, applicable margin | 0.50% | ||
Revolving Credit Facility | E B I T D A | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 1,000,000 | ||
Revolving Credit Facility | Maximum | |||
Line Of Credit Facility [Line Items] | |||
Investment Owned, Balance, Principal Amount | 2,000,000 | ||
Revolving Credit Facility | Minimum | |||
Line Of Credit Facility [Line Items] | |||
Investment Owned, Balance, Principal Amount | 1,000,000 | ||
Growth Capital Term Debt | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 4,250,000 | ||
Equipment Term Loan Facility | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $3,000,000 | ||
Line of credit facility expiration date | 31-Dec-14 |
Debt_Obligations_Future_Princi
Debt Obligations - Future Principal Payments of Long-Term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $1,364 | |
Total | 1,364 | |
Discount | -2 | |
Less current portion | -1,362 | -1,416 |
Note payable, net of current portion and discount | $1,363 |
Debt_Obligations_Warrants_Addi
Debt Obligations - Warrants - Additional Information (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 23, 2014 | Aug. 15, 2014 | Mar. 31, 2010 |
Class Of Warrant Or Right [Line Items] | ||||||
Conversion of convertible preferred stock warrants to common stock | $82 | |||||
Fair value warrant issued | 56 | |||||
Debt instrument amortization period | 3 years | |||||
Convertible preferred stock warrant liability | 0 | 684 | 296 | |||
Loss (gain) on change in value of convertible preferred stock warrant liability | -168 | 388 | 154 | |||
Series A-1 | ||||||
Class Of Warrant Or Right [Line Items] | ||||||
Conversion of preferred stock warrants to common stock | 69,895 | |||||
Series A-1 | Additional Paid-in Capital | ||||||
Class Of Warrant Or Right [Line Items] | ||||||
Conversion of convertible preferred stock warrants to common stock | $516 | |||||
Monte Carlo Simulation | Series A-1 | ||||||
Class Of Warrant Or Right [Line Items] | ||||||
Number of preferred stock purchased by warrants | 77,161 | |||||
Shares purchased by issuance of warrant, price per share | $0.87 |
Debt_Obligations_Fair_Value_of
Debt Obligations - Fair Value of Warrants (Details) (USD $) | 0 Months Ended | 12 Months Ended |
Jul. 23, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ||
Risk-free interest rate | 2.53% | 3.04% |
Expected volatility | 80.00% | 80.00% |
Expected lives | 5 years 9 months 18 days | 6 years 3 months 18 days |
Fair value of underlying equity | $7 | $9.40 |
Debt_Obligations_TubeMogul_Jap
Debt Obligations - TubeMogul Japan Inc. Financing - Additional Information (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Feb. 28, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investors | ||||||
Class Of Warrant Or Right [Line Items] | ||||||
Proceeds from issuance of convertible note | $187 | $232 | $187 | $232 | ||
Number of new Investors | 3 | |||||
Convertible notes, redeemed | 957 | |||||
Loss on extinguishment of convertible notes | ($538) | ($538) | ||||
Board of Directors | ||||||
Class Of Warrant Or Right [Line Items] | ||||||
Number of new Investors | 1 |
Stockholders_Equity_Additional
Stockholders Equity - Additional Information (Details) (USD $) | 0 Months Ended | ||
Jul. 23, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class Of Stock [Line Items] | |||
Proceeds from issuance of common stock in initial public offering, net of underwriting discounts and commission | $46,800,000 | ||
Common stock, shares authorized | 200,000,000 | 62,000,000 | |
Convertible preferred stock, shares authorized | 10,000,000 | 93,174,947 | |
IPO | |||
Class Of Stock [Line Items] | |||
Issuance of common stock from initial public offering, net of issuance costs, Shares | 7,187,500 | ||
Issuance price per share | $7 | ||
Expense related to underwriting discounts and commissions | $3,300,000 | ||
Common stock, shares authorized | 200,000,000 | ||
Convertible preferred stock, shares authorized | 10,000,000 | ||
Over allotment option | |||
Class Of Stock [Line Items] | |||
Issuance of common stock from initial public offering, net of issuance costs, Shares | 937,500 |
Stockholders_Equity_Convertibl
Stockholders Equity - Convertible Preferred Stock Financing (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Class Of Stock [Line Items] | ||
Convertible preferred stock, shares authorized | 10,000,000 | 93,174,947 |
Common stock, shares authorized | 200,000,000 | 62,000,000 |
Converted Shares Authorized | -31,174,947 | |
Shares issued and outstanding | 22,185,087 | |
Common stock during shares issued and outstanding | 29,837,892 | 6,674,757 |
Converted, Shares issued and outstanding | -15,510,330 | |
Carrying value | $43,912 | |
Liquidation preference | 44,555 | |
Series A | ||
Class Of Stock [Line Items] | ||
Convertible preferred stock, shares authorized | 4,177,390 | |
Shares issued and outstanding | 1,257,838 | |
Issuance price per share | $1.21 | |
Carrying value | 1,448 | |
Liquidation preference | 1,525 | |
Convertible Preferred Series A | ||
Class Of Stock [Line Items] | ||
Shares issued and outstanding | 830,866 | |
Issuance price per share | $0.91 | |
Carrying value | 756 | |
Liquidation preference | 1,007 | |
Series A-1 | ||
Class Of Stock [Line Items] | ||
Convertible preferred stock, shares authorized | 7,847,028 | |
Shares issued and outstanding | 3,675,129 | |
Issuance price per share | $0.87 | |
Carrying value | 3,128 | |
Liquidation preference | 3,215 | |
Convertible Preferred Series A-1 | ||
Class Of Stock [Line Items] | ||
Shares issued and outstanding | 171,228 | |
Issuance price per share | $0.70 | |
Carrying value | 120 | |
Liquidation preference | 150 | |
Series B | ||
Class Of Stock [Line Items] | ||
Convertible preferred stock, shares authorized | 0 | 10,298,658 |
Shares issued and outstanding | 5,149,330 | |
Issuance price per share | $1.94 | |
Carrying value | 9,896 | |
Liquidation preference | 10,000 | |
Series C | ||
Class Of Stock [Line Items] | ||
Convertible preferred stock, shares authorized | 0 | 8,851,871 |
Shares issued and outstanding | 4,425,939 | |
Issuance price per share | $6.47 | |
Carrying value | 28,564 | |
Liquidation preference | $28,658 |
Stockholders_Equity_Convertibl1
Stockholders Equity - Convertible Preferred Stock Financing (Parenthetical) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Stockholders Equity Note [Abstract] | ||
Common stock, par value | $0.00 | $0.00 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Commitments For Minimum Rentals Under Operating Lease (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | |
2015 | $1,882 |
2016 | 1,530 |
2017 | 1,078 |
2018 | 884 |
Thereafter | 1,694 |
Total minimum lease payments | $7,068 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Infromation (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | Jul. 02, 2013 |
Long Term Purchase Commitment [Line Items] | |||||
Rent expense | $2,178 | $1,178 | $555 | ||
Irrevocable letters of credit amount | 408 | 334 | |||
Standby Letters of Credit | |||||
Long Term Purchase Commitment [Line Items] | |||||
Letter of credit agreement period | 1 year | 1 year | |||
Line of credit facility expiration date | 28-Feb-15 | 2-Jul-15 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Details) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||
Nov. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of increase on common stock authorized on each subsequent anniversary | 5.00% | ||||
Common stock, shares authorized reserve, description and terms | This reserve will automatically increase on January 1, 2015 and each subsequent anniversary through 2024, by an amount equal to the smaller of (a) five percent (5%) of the number of shares of common stock issued and outstanding on the immediately preceding December 31; and (b) an amount determined by the Company’s board of directors. | ||||
Weighted average grant date fair value of options granted | $9.87 | $2.64 | $1.08 | ||
Aggregate intrinsic value of options exercised | $2,900 | $7,400,000 | $969,000 | ||
Unrecognized compensation cost | 23,000,000 | ||||
Unrecognized compensation cost expected to be recognized period | 3 years 6 months | ||||
Options subject to market conditions, granted | 385,035 | ||||
Options subject to market conditions, fair value | $4,600,000 | ||||
Options exercise price | $17.04 | ||||
Option expiration period (In Years) | 10 years | ||||
Share available for sale under the ESSP | 750,000 | ||||
Common Stock Including Additional Paid in Capital | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, shares authorized | 4,975,000 | ||||
2007 Equity Compensation Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, shares authorized | 6,093,703 | ||||
2014 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, shares authorized | 2,500,000 | ||||
2014 ESPP | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock purchase price discounted rate for eligible employee | 15.00% | ||||
Lower fair market value of common stock on the first trading day | 85.00% | ||||
Employee Stock Option | 2007 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options granted vesting period | 4 years | ||||
Percentage of options granted vesting period | 25.00% | ||||
Employee Stock Option | 2014 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options granted vesting period | 4 years | ||||
Percentage of options granted vesting period | 25.00% | ||||
Restricted Stock Units (RSUs) | 2007 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options granted vesting period | 4 years | ||||
Percentage of options granted vesting period | 25.00% | ||||
Restricted Stock Units (RSUs) | 2014 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options granted vesting period | 4 years | ||||
Percentage of options granted vesting period | 25.00% | ||||
Maximum | Employee Stock Option | 2007 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options granted exercisable vesting period | 10 years | ||||
Maximum | Employee Stock Option | 2014 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options granted exercisable vesting period | 10 years |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Stock Option Plan (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Outstanding number of shares | ||
Outstanding number of shares, Beginning | 4,290,057 | |
Outstanding number of shares, Options granted | 1,403,056 | |
Outstanding number of shares, Options exercised | -372,022 | |
Outstanding number of shares, Options canceled | -154,868 | |
Outstanding number of shares, Ending | 5,166,223 | 4,290,057 |
Outstanding number of shares, Options exercisable and vested | 2,405,749 | |
Outstanding number of shares, Options vested and expected to vest | 4,987,024 | |
Weighted-average exercise price per share | ||
Weighted average exercise price per shares, Beginning | $1.28 | |
Weighted average exercise price per shares, Options granted | $16.22 | |
Weighted average exercise price per shares, Options exercised | $1.02 | |
Weighted average exercise price per shares, Options canceled | $2.33 | |
Weighted average exercise price per shares, Ending | $5.32 | $1.28 |
Weighted average exercise price per shares, Options exercisable and vested | $0.96 | |
Weighted average exercise price per shares, Options vested and expected to vest | $5.17 | |
Weighted average remaining contractual life | ||
Weighted average remaining contractual life, Beginning | 7 years 9 months | 8 years |
Weighted average remaining contractual life, Ending | 7 years 9 months | 8 years |
Weighted average remaining contractual life, Options exercisable and vested | 6 years 3 months | |
Weighted average remaining contractual life, Options vested and expected to vest | 7 years 8 months 12 days | |
Aggregate intrinsic value | ||
Aggregate intrinsic value, Beginning | $24,973 | |
Aggregate intrinsic value, Ending | 83,132 | 24,973 |
Aggregate intrinsic value, Options exercisable and vested | 49,209 | |
Aggregate intrinsic value, Options vested and expected to vest | $81,027 |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Assumptions Used to Calculate Fair Value of Options (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Awards Subject To Market Condition | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.41% | ||
Volatility | 73.00% | ||
Expected term | 10 years | ||
Employees | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate, Minimum | 1.70% | 1.18% | 0.81% |
Risk-free interest rate, Maximum | 2.00% | 1.98% | 1.12% |
Volatility, Minimum | 66.00% | 68.00% | 68.00% |
Volatility, Maximum | 71.00% | 69.00% | 71.00% |
Employees | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term | 5 years 7 months 6 days | 5 years 6 months | 5 years 9 months 18 days |
Employees | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term | 6 years 4 months 24 days | 6 years 7 months 6 days | 6 years 1 month 6 days |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Plans RSUs Activity (Details) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock Units (RSUs) | |
Outstanding number of shares | |
Outstanding number of shares, RSUs granted | 1,090,945 |
Outstanding number of shares, RSUs canceled | -92,800 |
Outstanding number of shares, Ending | 998,145 |
Weighted-average Grant Date Fair Value | |
Weighted-Average Grant Date Fair Value, granted | $11.80 |
Weighted-Average Grant Date Fair Value, canceled | $9.28 |
Weighted-Average Grant Date Fair Value, Ending | $10.99 |
Weighted average remaining contractual life | |
Weighted average remaining contractual life, granted | 6 years 6 months 11 days |
Weighted average remaining contractual life, ending | 6 years 6 months 11 days |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summary of Vesting Option Plan (Details) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Period of Expense Recognition | 3 years 6 months |
A | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Options Vested | 154,014 |
Achievement of Market Capitalization | The Company obtains a $700 million market capitalization for 90 consecutive trading days calculated as the closing price of one share of the Company’s stock as reported by NASDAQ multiplied by the total number of outstanding shares as of each date. |
Capitalization, Long-term Debt and Equity | 700 |
Derived Service Period | 18 months |
Vesting period | Equal monthly installments over 24 months, beginning one month after the vesting condition is met |
Period of Expense Recognition | 42 months |
B | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Options Vested | 231,021 |
Achievement of Market Capitalization | The Company obtains a $1 billion market capitalization for 90 consecutive trading days calculated as the closing price of one share of the Company’s stock as reported by NASDAQ multiplied by the total number of outstanding shares as of each date. |
Capitalization, Long-term Debt and Equity | 1,000 |
Derived Service Period | 29 months |
Vesting period | Equal monthly installments over 24 months, beginning one month after the vesting condition is met |
Period of Expense Recognition | 53 months |
StockBased_Compensation_Summar3
Stock-Based Compensation - Summary of Effects of Stock-Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $3,543 | $761 | $430 |
Research and development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 1,094 | 206 | 159 |
Sales and marketing | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 1,058 | 230 | 92 |
General and administrative | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $1,391 | $325 | $179 |
Net_Loss_per_Share_Schedule_of
Net Loss per Share - Schedule of Computation of Net Loss per Common Share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Net loss | ($4,444) | ($7,411) | ($3,565) |
Weighted-average shares used in computing basic and diluted net loss per share | 19,928,003 | 6,612,621 | 6,433,819 |
Basic and diluted net loss per share | ($0.22) | ($1.12) | ($0.55) |
Net_Loss_per_Share_Schedule_of1
Net Loss per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Line Items] | |||
Anti-dilutive securities that were excluded from calculation of diluted net loss per share | 6,288,185 | 19,307,941 | 16,950,908 |
Convertible preferred stock | |||
Earnings Per Share [Line Items] | |||
Anti-dilutive securities that were excluded from calculation of diluted net loss per share | 15,510,314 | 13,824,944 | |
Convertible preferred stock warrants | |||
Earnings Per Share [Line Items] | |||
Anti-dilutive securities that were excluded from calculation of diluted net loss per share | 102,161 | 102,161 | |
Employee Stock Option | |||
Earnings Per Share [Line Items] | |||
Anti-dilutive securities that were excluded from calculation of diluted net loss per share | 5,166,223 | 3,695,466 | 3,023,803 |
Restricted Stock Units (RSUs) | |||
Earnings Per Share [Line Items] | |||
Anti-dilutive securities that were excluded from calculation of diluted net loss per share | 998,145 | ||
Employee stock purchase plan (ESPP) | |||
Earnings Per Share [Line Items] | |||
Anti-dilutive securities that were excluded from calculation of diluted net loss per share | 123,817 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Description of Profit Sharing Plan (the Plan) | The Company started a 401(k) Profit Sharing Plan (401(k) Plan), effective January 1, 2009 for employees who are 21 years of age or older. | |
Scenario, Forecast | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of employer matching contribution | 25.00% |
Income_Taxes_Schedule_of_Loss_
Income Taxes - Schedule of Loss before Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
United States | ($3,210) | ($6,955) | ($3,532) |
Foreign | -951 | -396 | 61 |
Net loss before income taxes | ($4,161) | ($7,351) | ($3,471) |
Income_Taxes_Components_of_Pro
Income Taxes - Components of Provision for Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current income tax expense: | |||
Federal | $37 | ||
State | 37 | 20 | 10 |
Foreign | 220 | 40 | 84 |
Total current income tax expense | 294 | 60 | 94 |
Deferred income tax expense (benefit): | |||
Foreign | -11 | ||
Total deferred income tax expense (benefit) | -11 | ||
Total provision for income taxes | $283 | $60 | $94 |
Income_Taxes_Schedule_Effectiv
Income Taxes - Schedule Effective Tax Rate (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Loss before income taxes | ($4,161) | ($7,351) | ($3,471) |
Expected income tax expense at statutory rate | -1,415 | -2,499 | -1,180 |
State taxes — net of federal benefit | -47 | -316 | -178 |
Permanent book-tax differences | 1,066 | 514 | 203 |
Change in valuation allowance | 613 | 2,371 | 1,285 |
Other, net | 66 | -10 | -36 |
Total provision for income taxes | $283 | $60 | $94 |
Expected income tax expense at statutory rate | 34.01% | 34.00% | -34.00% |
State taxes — net of federal benefit | 1.13% | 4.30% | -5.13% |
Permanent book-tax differences | -25.62% | -6.99% | 5.85% |
Change in valuation allowance | -14.73% | -32.25% | 37.02% |
Other, net | -1.59% | 0.13% | -1.04% |
Provision for income taxes | -6.80% | -0.81% | 2.71% |
Income_Taxes_Components_Of_Def
Income Taxes - Components Of Deferred Tax Assets (Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Accrued expenses | $470 | $266 |
Intangible assets | 12 | 14 |
Stock-based compensation | 1,072 | 236 |
Reserves and allowances | 708 | 302 |
Other | 456 | 50 |
Net operating losses | 5,954 | 6,451 |
Deferred Tax Assets | 8,672 | 7,319 |
Valuation allowance | -7,417 | -6,804 |
Total Deferred Tax Assets | 1,255 | 515 |
State deferred taxes | -521 | -510 |
Depreciation and amortization | -723 | -5 |
Total Deferred Tax Liabilities | -1,244 | -515 |
Net Deferred Tax Assets/(Liabilities) | $11 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforward expiration year | 2017 |
Unrecognized tax benefits related to uncertain tax positions | $0 |
Uncertain tax positions, accrued interest and penalties | 0 |
Federal tax | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforward | 13,900,000 |
State tax | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforward | $33,200,000 |
Segment_Information_Additional
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Business | |
Segment Reporting [Abstract] | |
Number of operating business activity | 1 |
Segment_Information_Schedule_o
Segment Information - Schedule of Total Revenue from Customers By Location (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total revenue | $114,243 | $57,214 | $34,159 |
United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total revenue | 78,686 | 38,196 | 26,782 |
Australia | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total revenue | 9,260 | 5,875 | 3,281 |
All Other Countries | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total revenue | $26,297 | $13,143 | $4,096 |
Segment_Information_Summarized
Segment Information - Summarized Long-Lived Assets on Geographic Areas (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | $3,902 | $1,467 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | 3,711 | 1,244 |
All Other Countries | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total long-lived assets | $191 | $223 |